Church construction down 82% from 2002 and the lowest level since records began in 1967

….it strikes me as somewhat strange that people would be building in the first place in a lot of towns. And really, if you’re going to have a mortgage, you really shouldn’t be the theological “flavor of the month”—it’s a long term deal, no?

Aspiring to be a stick in the mud.

The simple solution to church loans:

  • Every core family (deacons & elders and others who consider themselves ‘committed’) ..
  • Take out their own loan - could be a HELOC on their house …. unsecured loan on CC … borrow from 401K …
  • Loan that amount to the church (a simple signed document) or … donate it to the church
  • Talk about ‘sticky’ .. giant financial incentive to stay and make the church happen

Jim, I think you’re having a little fun with us right? That would be like starting a business with 200 partners and using personal debt (or your retirement) to finance it. I’m a commercial bank officer and am always working with people to find equity options and even I would shy away from that! Too much could go wrong that is outside of your control (though I would agree that it could reduce the instances of families voting for the building project and then taking off when the carpet color wasn’t their choice… )

[kirkedoyle]

Jim, I think you’re having a little fun with us right? That would be like starting a business with 200 partners and using personal debt (or your retirement) to finance it. I’m a commercial bank officer and am always working with people to find equity options and even I would shy away from that! Too much could go wrong that is outside of your control (though I would agree that it could reduce the instances of families voting for the building project and then taking off when the carpet color wasn’t their choice… )

Underlining the problem of people voting to take on debt but not sticking around in hard times to pay it off

…buy an abandoned church. I’d have to guess that due to the unique architecture, it’s hard to repurpose them, and hence they tend to sell fairly cheaply. Many dying congregations/trustees are willing to let them go for a song if they’re going to a congregation of similar precious faith.

Doesn’t make as much money for the mortgage business, but if the facilities are at all suitable, it’s better stewardship, no?

Aspiring to be a stick in the mud.

A church near us in “Capital campaign”:

  • A solid church … start up but probably 10 years old
  • Has had 3 pastors:
    • Pastor A left in disgrace
    • Pastor B died in office
    • Pastor C,D,E,F (Multiple eldership w 1 vocational)
  • I know C & E
  • Am on their mailing list and follow them
  • They hired a “Capital campaign” consultant. I’m not privy to the specifics but would love to know that guy’s fee
  • They are looking at a borrowing rate north of 7%
  • By comparison I could myself get a 30 year for 3.5%