ORIGINAL: KidEpoxy
Urban sprawl and high land values are a threat, not an asset.
so, you are under the threat of your $100k Equity land turning into $300k to $500k land?
Oh, the horror of it.
This is almost as bad as the threat of California killing Prop13 and putting little old ladies on the streets... because they cant afford the taxes if their homes no longer are taxed as $60k but at the market value of $1.3mil. Yeah, we should feel bad for the homeless Newport Beach grannys that have to sell and have a check for $1.3mil in their sad poor homeless pockets.
2nd Mortgage? Heck no, RE-FINANCE to pull equity rather than borrow against it.
Same or lower payments, extended term, with tens of thousands $ in your poket.
Need $20k-$40k of shelters rebuilt, but only have $100k of equity?
I cant believe there is a club upset that Urban Sprawl
might thrust a half million unwanted dollars into their hands in the next few years.
I would suggest buying a Lotto Ticket, but it appears you have already won.
The amount of equity is a matter of opinion. Many believe it is actually negative. Hard to borrow when you are upside down. I personally believe there is real equity, but it is nearly equal to the amount of concrete poured at the site to date. Kinda break even, if you will.
Sprawl only gets you kicked out. You only gain if you do have equity and can move . And right now, we are so far out of town, that a faction broke off and formed a new club closer to town on city land. So maintaining an adequate membership becomes more difficult the farther out of town you move. Some of our members now drive over an hour even though there are clubs closer to their homes, God bless them. We loose many more and the we could default on the loan and it would revert to the seller/ financer.
It would be very nice if our situation was as you describe.
The main point of my post above was that time is not on our side. To maintain our membership and keep the club strong , we need to offer a top notch facility, as Horrace mentioned.
If a second mortgage was possible, which I doubt it is, we could use any theoretical equity to improve the site. I would certainly support this. But our present dues are consumed by the first mortgage now. How would this work ? How do you borrow more, when you can barely afford your payments?
If higher dues would allow this to happen, as I said above, I would support it. IF there is another way to extract this 100k that you mention, please tell us how.