Shareholder Wants to Loan Our Co-op Money For Renovation
Our 4 unit brownstone co-op needs an infusion of capital for some building renovation. One idea is for an idividual member to loan the co-op corporation the money, repayable through a maintenance increase over x amount of time. We would like to ask if anyone has done this, or knows how a co-op shareholder takes…
Our 4 unit brownstone co-op needs an infusion of capital for some building renovation. One idea is for an idividual member to loan the co-op corporation the money, repayable through a maintenance increase over x amount of time. We would like to ask if anyone has done this, or knows how a co-op shareholder takes back a note under these circumstances. Our finacials are in good order, we want to keep our bank balance as is.
tks.. once the actual cost are known, I can also be reached at ‘reprivateequity@yahoo.com’.. i’m a personal investor, not an institution of any sort. whether i buy property, fund properties, etc..i’m looking for ROI. i find it much easier and saner to fund then purchase and deal with headaches.
Re: Bank Balance Comment – We want the “reserve fund” in our savings account as is, for emergencies or the many normal and possible eventualities.
Re: Interest in providing financing – Please refer to this Post over the next few weeks. We are in the process of having the actual cost of the reno evaluated.
Thank You.
how much is this reno, I’d be interesting in providing financing?
You can still get a tax deduction even when you borrow from an individual, and I think he will be required to charge an interest rate equal to any available rate at the time of loan. It is much less complicated than going through a bank. I have a small mortgage from the parents and I still get a tax break every year on the interest I pay them. You just look for the lowest advertised rate out there and document it for tax purposes.
I’d refinance underlying mortgage to get the tax deduction. Otherwise your maint. will go up but the % you can write off will go down.
Why do you want to keep your bank balance as is? Your total amount owed (to a bank or person) will be what it is.