Ask Your Plumber to Provide ‘In-House’ Financing
Your headed in the right direction by just getting it all done.
If reserves are tight, you have already assessed everyone, and you have gone to your local bank for a loan, preferably the one you have a long standing relationship with. And you tried a local credit union and you don’t quite qualify. Then ask your plumber if he can provide you an “IN HOUSE” financing. Some plumbers are just not in a position to do so, or afraid of the thought, or feel its just a little to risky .
Your Hoa plumber can accomplish this if he has a good rapor with his plumbing supply house. If they are in good standing and they pay their bills on time, buy a large supply each month, and have a good reputation in Los Angeles for being a good plumber, the plumbing supply house may extend payments to him because he is a solid vendor.
So lets take the HOA project we just financed as an example: In our HOA meeting along with the property management Co. This is what worked for all of us, this might help you put something together.
- The total project cost was $75,000.00
- The board was able to come up with $20,000 upon delivery of materials.
- The balance of $55,000.00 was financed over 18 months, the board was able to pay $3,055.0O per month interest free.
- If you take that $3,055.00 and divide it by 80 homeowners its roughly $38.00 per month or $690.00 over an 18 month period.
The way a plumber can protect himself is opening a job account with the plumbing supplier. This will be a huge benefit where if the HOA fails to pay, then the plumber is not responsible to pay for the materials. The supplier can then go after the building if need be.
The other things a plumber can do is put a PRE lien on the property. This will protect if the building fails to pay any monies owed. He can then possibly go after each unit, this may prevent any homeowner in the building to sell, or refinance until it has been removed.
Typically the relationship is a good one if both parties will fulfill their agreements.
Well, if your the board president or the treasurer and are looking for ways to get the building plumbing completed hope this article helped in providing some creative ideas to work along side your plumber to get the project done.