Thanks for the complements Kevin. As you can see, we’re not too good at keeping anything we do a secret. It’s not really our business model I guess and so far so good.

Jim – We are considering a stock plan type of sale in the future. We have a lot of details to work out and are a bit cautious at this point of builders not following our plans the way they are intended or builders flat out stealing the plans and building hundreds or poor replicas. If not executed properly on our end, any number of things could give us a black eye very quickly. We still visit our site every day to make sure everything is going according to plan as intended…

http://www.sobodwellings.com

Another nice difference is that the land comes with a little house that rents for around $1000/mo. That means our land is carrying its own weight, and we have the luxury of waiting to scrape and build until the market is in complete recovery.

The 100K house project has taught everyone that a truly innovative product plus effective internet branding equals presales. The neighborhood choice of “gritty walkable” (like ours) was also key.

This may not be your desire, but I think you should consider my advice.

These are good questions. I’ll do my best to try and address them all.

As with any investment, there is risk involved. We have done our best to structure our investments in such a way that will minimize the risk of the investor as much as possible.

First of all, Postgreen takes their profit at the end of the project after both the bank and the investors are paid back. In order for the investors’ monies to be threatened at all, the entire profit margin calculated for Postgreen would have to be used up. The specific proposals will provide these calculated profit margins based on the estimated sales price.

If any of the homes in a project that are not pre-sold do not sell quickly, the price will be lowered to sell and return the investors’ and banks’ monies in the time agreed upon. If Postgreen needs to extend the 12 month investment period, then we would do that in writing and compensate the investors with additional interest. Postgreen will determine the sales price and any changes in the sales price as we see fit to satisfy all parties.

For each project, we need to raise a minimum of 20% of the total project costs from investors and the participating bank will fund the remainder, up to 80%. These percentages may vary slightly but this is a good ballpark. Postgreen may contribute a portion of the equity in some projects and may only contribute a very small percentage in others.

Postgreen has worked very hard to establish a niche in a price range ($200K – $300K) that continues to sell in a poor market. We do not encounter the steep market fluctuations that higher end homes selling for over $400K do. This allows Postgreen to sell our homes faster and closer to our estimated sales price than other developers.

Again, these are general terms and we will not be able to answer all of your questions until you have a specific proposal to review with us. Hopefully this answers some of your preliminary questions and concerns.

Can you talk about what mix of money you’re looking to fund the projects? How much bank money, how much investor, how much of your own money?

I assume that the interest payment is not just for the use of the money, but to carry the risk of loss of the investment. Can you describe the down side in more detail? Under what conditions would an investor lose the interest, or their investment?