Daybreak Cohousing is seeking investors to help us attain our construction loan.

To secure our construction loan, we need to provide financial contributions totaling roughly 20% of the project cost. Each community member household is required by the bank to make a minimum capital contribution, it can be viewed as a minimum down payment, towards this goal.  This contribution amounts to about 5% of the project cost.  Additional contributions by community member households above the minimum are needed to reach our goal and are made as household finances allow.  These additional contributions are treated as loans to the community.  Loans from supporting investors also will help us reach our 20% financial contribution goal.

The community member and supporter loans will earn 8% annual interest.  The interest will accrue until the loans are repaid from the proceeds of unit sales to community members. Repayment of community member and supporter loans will have second priority, after the bank construction loan.  They will be repaid, with the earned interest, in the order that they were made, that is, the oldest dated loan will be paid first, with one exception. Among the community member and supporter loans, loans from those who are members of the Daybreak Cohousing LLC, shall be repaid after all other loans, regardless of the date of their loans.

The loans are secured by the equity in the property and the project.  And they are not fully secured loans.  During construction, the value of the property and the project will increase as the new structures are built.  Once we enter construction, the risk to all the loans will decrease considerably, in part because we will have passed the bank’s very conservative standards for receiving their construction loan.

We believe we are offering an interest rate that is commensurate with the moderate level of risk for this project.  We hope you will agree and consider supporting Daybreak Cohousing by checking your current assets, especially low interest bearing ones, like:

• Savings Accounts
• CD’s
• Stocks, Bonds and Mutual Funds
• IRA and 401(k) accounts
• Equity lines of credit

And redirect some toward this worthwhile project.

For more information, including how to use IRA or 401(k) funds to make loans, please contact:

Alex Bram
e-mail
971-222-6589