Santa Barbara County Prospective Homeowners Project Round A

Below here is an example of a pool of money we would have if prospective home buyers put their potential down payments up front to help the organization purchase land and begin planning, design & developing. This would be done in phases, over a period of time and we might do one or more of three things to raise the total funds for building: borrow (but then there would be interest on the loans we would have to pay back, which would cut into our net), receive investments and donors. However, mortgage payments at 6% interest would pay back investors, as would eventual resales of a fraction of the homes at market rates for profit which would be reinvested into the plans and development of more homes.
buyers	home price		10% down	Total Down Payments	Total Sales Minus "Downs"	Total Income 8% Financed over 30 years
50	75,000		7,500	375,000	3,375,000
350	125,000		12,500	4,375,000	39,375,000
250	175,000		17,500	4,375,000	39,375,000
250	250,000		25,000	6,250,000	56,250,000
100	300,000		30,000	3,000,000	27,000,000
1,000		Totals		18,375,000	165,375,000
Total Sales including down payments					183,750,000
Total First-buyer Sales & Financing Payments over 30 years (Doesn't include resales*, if any)
(These figures have been double-checked; as of July 12, 2004)
These figures do not yet include fund-raising from Donors, nor Investors, nor gain in value from holding the properties over a period of time. (Nor does this show cost of the dividends to be paid out to investors)

Resales: Some homes may be built for sale at market or near-market rates, so that we can generate additional income to purchase more land and build out more properties with affordable housing that we might have had we not done so.

When we find a large piece of property and are successful in applying for permits to develop it - after getting it zoned as necessary, for example:

If we started our larger development off with homes at the top of the scale for which we want to develop "affordable" at, with this size property, we could if zoned for our needs, develop 100 homes. Here's what the scenario would look like:

Home Price	No. of homes	Down Payment	Total Downs	Land Down
300,000.	100	30,000	3,000,000	1,400,000.
Balance to Develop	Cost ea. Home Pre-fabricated	First Round Developed & Sold for this Project	Total Homes Cost	Permits
1,600,000	80,000	10 per week, over 10 weeks	800,000.
Stagger Income from Home Sales		Carrying Costs of Land until sold	Cost for Construction Manager, Civil Engineer, Surveyor