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