Comments on: First hurdle encountered http://www.100khouse.com/2007/11/20/first-hurdle-encountered/ All things modern, affordable and green Wed, 08 Sep 2010 14:05:48 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: chad http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-51 chad Wed, 05 Dec 2007 04:43:13 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-51 Great link Barbara, thanks! I signed up for their newsletter to keep tabs on them as they may be a good fit for the next, hopefully larger project. Great link Barbara, thanks! I signed up for their newsletter to keep tabs on them as they may be a good fit for the next, hopefully larger project.

]]> By: Barbara Bryan http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-37 Barbara Bryan Tue, 04 Dec 2007 05:47:19 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-37 While this source is funding 15 unit developments, maybe it is worth proposing as a prototype for affordable urban infill. Good luck. http://www.greencommunitiesonline.org/tools/funding/loans/ While this source is funding 15 unit developments, maybe it is worth proposing as a prototype for affordable urban infill. Good luck.

http://www.greencommunitiesonline.org/tools/funding/loans/

]]> By: Russell Wild http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-30 Russell Wild Tue, 27 Nov 2007 17:46:29 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-30 Good luck getting over this stumbling block. You can do it. Its hard finding a bank with vision. But safe and normal are boring. Add met to your list of those doing similar projects. I have property and plan to build in the next year. Sharing our ideas and hurdles will help us all. Good luck. Russell Good luck getting over this stumbling block. You can do it. Its hard finding a bank with vision. But safe and normal are boring.
Add met to your list of those doing similar projects. I have property and plan to build in the next year. Sharing our ideas and hurdles will help us all. Good luck.
Russell

]]> By: Stanford Gable http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-28 Stanford Gable Mon, 26 Nov 2007 16:12:25 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-28 Chad, I have been formulating an idea for "green" communities along the city public transportation routes. The idea is on a Penn Praxis scale of redevelopment. I have started to enlist others in the brainstorming and wondered if you might be interested in sharing your thoughts. Maybe your plans could be part of a much larger goal considering the global environmental movement. This comment has little to do with the financial issues addressed in this thread. Just putting the idea on the table. Chad, I have been formulating an idea for “green” communities along the city public transportation routes. The idea is on a Penn Praxis scale of redevelopment. I have started to enlist others in the brainstorming and wondered if you might be interested in sharing your thoughts. Maybe your plans could be part of a much larger goal considering the global environmental movement. This comment has little to do with the financial issues addressed in this thread. Just putting the idea on the table.

]]> By: chad http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-27 chad Wed, 21 Nov 2007 14:13:02 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-27 Thanks Preston. I don't want to make it look like I'm blatantly bad mouthing people or other businesses so I'll refrain from naming names. This is a learning experience for us and everyone monitoring the project so I do think it's important to discuss, just not attack... I am talking to three other lenders who are all interested in the project now and I am confident that one of them will be a good fit. It's a tough time of the year with the holidays to move things along quickly but I hope to have a good idea of the financing situation for the project at the end of next week. I have thought of Angel investors as well, which I'm sure would work but may sacrifice the already thin bottom line a bit too much. Thanks Preston. I don’t want to make it look like I’m blatantly bad mouthing people or other businesses so I’ll refrain from naming names. This is a learning experience for us and everyone monitoring the project so I do think it’s important to discuss, just not attack…

I am talking to three other lenders who are all interested in the project now and I am confident that one of them will be a good fit. It’s a tough time of the year with the holidays to move things along quickly but I hope to have a good idea of the financing situation for the project at the end of next week.

I have thought of Angel investors as well, which I’m sure would work but may sacrifice the already thin bottom line a bit too much.

]]> By: Preston http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-26 Preston Wed, 21 Nov 2007 06:28:45 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-26 Sorry to hear the bad news on that lender ... you know, you might think about naming the bank so other green developers know what to expect in dealing with them. Otherwise, a project like this might be well intended for a angel investor/partner with like values. Maybe someone that understands the plan and will be flexible throughout. I'm going to keep my mind on this over Thanksgiving and see if I come up with any thoughts. Sorry to hear the bad news on that lender … you know, you might think about naming the bank so other green developers know what to expect in dealing with them.

Otherwise, a project like this might be well intended for a angel investor/partner with like values. Maybe someone that understands the plan and will be flexible throughout. I’m going to keep my mind on this over Thanksgiving and see if I come up with any thoughts.

]]> By: chad http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-25 chad Wed, 21 Nov 2007 05:37:36 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-25 Thanks Greg. Let's hope you're right. I don't mean to sound like we're the only ones trying to make modern and green affordable. There are others across the country doing similar projects, yourself included. I plan to spend some time putting together a post of those that are doing similar projects soon. Thanks Greg. Let’s hope you’re right. I don’t mean to sound like we’re the only ones trying to make modern and green affordable. There are others across the country doing similar projects, yourself included. I plan to spend some time putting together a post of those that are doing similar projects soon.

]]> By: lavardera http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-24 lavardera Wed, 21 Nov 2007 02:55:20 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-24 No, you are right - its not the status quo approach. But I see it as being far looking. Not only for its environmental value, but as a business model. There are a lot of cleared lots in Philadelphia, and a lot of moderate income citizens. Coming up with an approach to deliver housing that more people could afford has opportunity for growth. Its a plan that would provide as much benefit as it would profit, just as you've conceived it to be. No, you are right – its not the status quo approach. But I see it as being far looking. Not only for its environmental value, but as a business model. There are a lot of cleared lots in Philadelphia, and a lot of moderate income citizens. Coming up with an approach to deliver housing that more people could afford has opportunity for growth. Its a plan that would provide as much benefit as it would profit, just as you’ve conceived it to be.

]]> By: chad http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-23 chad Tue, 20 Nov 2007 23:21:28 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-23 I like the way you are thinking but there is a balance between loan amount and what the properties will appraise for. In other words my LTV can not be too high. In reference to if it can be done we obviously feel it's possible or we wouldn't be trying. Construction costs are certainly related to location and I think Philly is well below DC or NYC now. The reason I think we all don't see it happen more often I'd that there is no financial incentive for the team. We could all make more $$ doing a more status quo project. It's not often that a developer, architect and builder happen to meet that are all willing to consider let alone follow through with such a low margin project. I could be way off in this theory so feel free to disagree. I like the way you are thinking but there is a balance between loan amount and what the properties will appraise for. In other words my LTV can not be too high.

In reference to if it can be done we obviously feel it’s possible or we wouldn’t be trying. Construction costs are certainly related to location and I think Philly is well below DC or NYC now.

The reason I think we all don’t see it happen more often I’d that there is no financial incentive for the team. We could all make more $$ doing a more status quo project. It’s not often that a developer, architect and builder happen to meet that are all willing to consider let alone follow through with such a low margin project.

I could be way off in this theory so feel free to disagree.

]]> By: lavardera http://www.100khouse.com/2007/11/20/first-hurdle-encountered/comment-page-1/#comment-22 lavardera Tue, 20 Nov 2007 22:52:06 +0000 http://100khouse.com/2007/11/20/first-hurdle-encountered/#comment-22 Are they willing to finance 150k? If you come in less then pay down the loan with the remaining budget. Are they willing to finance 150k? If you come in less then pay down the loan with the remaining budget.

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