This week is an exciting week for the Beta Zeta Chapter, it marks the end of six months of construction on the fraternity house. By weeks end, we will have new tenants.
While this is great news, we have recently encountered a financial speed bump which might possibly require some assistance from our alumni base.
Direct to the point, we went over our original $100k budget by $25k and our bank has declined to extend that additional amount.
Our original $100k was a perfect fit. None of the alumni officers had to sign as personal guarantors on the note, it was done solely on the value of the fraternity house ($230k). Going above the $100k mark, required an additional persons signature. After 3 weeks of waiting to hear an answer, they informed us Monday they were going to pass. The individual whose signature we required wasn't comfortable using the "potential income" from our increased rent and capacity and our historical income (based on our previous monthly rent) would not adequately service the loan.
While we are still currently pursuing other lending options to cover this additional $25k, I wanted to open up the discussion on an alternative way to get this done amongst ourselves as a backup option. I would like to know if there would be 25 alumni who would be willing to lend the Alumni Association a $1,000 each for the next 3 years. Since this monthly amount would be relatively small, we would return your principal plus 6.25% interest (same as our mortgage rate) in 12 quarterly payment of $92.04. This would be done with a formal contract, but would not be considered a lien or ownership of the fraternity property.
This is something we need to find a solution for within the next 30-45 days. The house is completed and as portions of that additional $25,000 become due, it is currently being paid with a personal credit card of mine as a temporary solution.
Again, we are still pursuing other more traditional ways to finance this, but if we are not able to find reasonable financing (ie no personal guarantors on anything larger then $25k) you can count me as the first alumni to contribute $1,000 towards that $25,000 goal.
Contact me at thepner@gmail.com ASAP if you would be able to help our chapter out in this regard, so we can weigh our options accordingly.
Terry Hepner (#681 - 2004)
Beta Zeta Alumni Association, President
email: thepner@gmail.com
cell: (405) 408-3984
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