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Important financial questionAug 31, 2007


To all - here's the situation:

We need $250K for a bldg project (must do it within 1-2 yrs)

- We have 20% that amt in reserve (just did a big project)

- $250K would eat up our entire LOC (not a good idea)

- We could take out an add'l mortgage (not desirable)

- A 2-yr assessment would be a very steep hit on Shs

- We'd need a 30% mnt increase to raise $250K in 2 yrs
(could lower it by, say, 25% after we raised the $250K)

We're in good financial shape with no debt but the need for $250K was totally unanticipated, hit us out of the blue.

Other options to raise $250K? Appreciate any suggestions.

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is it anything energy related? - sally Aug 31, 2007


NYSERDA has great low interest loans. what do you need the $ for?

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bldg project - ex treasurer Aug 31, 2007


I would do a combination:

e.g. $80K from the line of credit, 80K from the shareholders, then look at your mortgage to see about mortgage refi/rollover/expansion terms for the rest. And/or try spreading it out with financing from the contractor or from the wealthier SHs.

But, before any of that, I'd get a second opinion. What's the out-of-the-blue knock down crucial $250K project you're sure can't wait?

Ex Treasurer


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> Join the conversation Comments (2)
bldg project - financing - BP Aug 31, 2007


We had a basic roof survey done. The conclusion: it won't need replacement for at least 5 years. We can refinance our coop mortgage in 2012, but we have an "on paper" program for the money we'd need in 5 years if the refinancing goes sour or we need more money by then for something else.

We now having problems in top floor apts. We hired another firm to do a more in-depth survey. It seems we have damage below the roof substrate that can be "fixed" for 1-2 years, but no longer, and the roof will be at the end of its life. We of course want to replace the roof in 1-2 years at most before we get into major difficulty.

We spoke to our mortgage bank and the pre-payment penalty to refinance now rather than wait until 2012 is enormous, and would not decrease, so that's not an option.

Anyone have experience with a NYSERDA low-interest loan for roof replacement that could have energy-saving benefits?

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> Join the conversation Comments (1)
insulation on roof covered by NYSERDA - sally Sep 01, 2007


if you get them to do an "energy audit" and they mention you need insulation and you then do it - they will pay for most of your energy audit. PLUS help you pay for it. call them.

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bldg project - ex treasurer Aug 31, 2007


NYSERDA's a viable option, but slow slow slow, and demanding. Worth looking into. We did, but didn't use it in the end (we refinanced the mortgage to re do our roof -- conveniently, it was coming due, and we lowered our rate)

Also, I seriously doubt you will need all the cash in 1-2 years. By the time you create specs, take bids & start the actual work, it could be 3-4 years b/f you need to complete payment. There's also the j-51 city rebate, later.


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to BP - RLM Sep 01, 2007


Increase your line of credit immediately. We raised ours to $1m - it's effectively a second mortgage, though it's to be used only in emergencies (like yours).

Figure the cost of $250K over a 3-5 year period (including the interest on the LOC), and that's the amount to assess.

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