The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1888-03-22
7 ADVERTISEMENTS.
a BUILDING AND LOAN ASSOCIA-
TON,

a BUILDING AND LOAN ASSOCIA-
TON
The SENTINEL has seen with glad
ness the prosperity of building and
loan associations in other towns and
their good effects and would be great
" pleased if it could induce the citi
zens OF the Twin City to organize one
The plan is quite simple. The
building association does no building
itself. 1t loans money to members,
who make their own building con-
tracts, the association making the
stipulated payments on the contracts
as the buildings progress; or it will
advance funds for member to buy a
bailding already erected. The mem
Der must own in fee simple the land
upon which he desires to build, free of
all membranes, taxes, assessments,
etc, and he must also own one share
in the'association for every 5000 that
ne may wish to borrow.
The association is safe in loaning
about $4,000 to build a house upon
land worth $500 or over. If the
member wishes to buy a house already
erected, pay off a mortgage, or raise
funds by mortgage, the association
will advance the necessary money in
the same proportion that it will to
erect building All the association
requires is security that the borrower
will pay his dues and interest, keep
taxes paid up and the property insur-
ed. He is never asked to pay back
his mortgage if his monthly payments
are kept up.
This scheme makes it possible for
every thrifty and well disposed wage
worker to acquire home of his own
and absolute ownership of it. He
must be thrifty, he must be honest,
and he must be punctual in his en-
gagements, which are merely the
qualities of good citizen, to raise
himself IRON being a tenant to the po-
sition of landlord-hissown landlord
the absolute owner Of his own..house
free and clear of mortgage 1t is the
simplest thing in the world; there is
no mystery about it, and its very sim
plicity makes it hard to believe. But
1t IS true, any one can understand it.
Plain, common facts will make it all
clear without complicated calculations.
A house and lot worth, say $1,000,
ought to rent for $3.50 a month.
The land is possibly worth $3.50 to
$500, and the house and improve
ments the balance. By paying $3.50
per month more than the rent, or
total payment of $14 per month, will
insure the ownership of such property
If person wants it, and his legal ex-
penses for examining title, drawing
papers, ETC., will not exceed s25 to
$50. Every dollar OF the cost of the
house will be paid by the building
loan upon bond and mortgage cover
ing the the house and lot, the only
condition being a fee simple unencum-
bered ownership of the land. The
house will cest, say, $3.50. Every
share in the building loan is entitled
to borrow 5000. Seven shares at 5000
will borrow 81, 400, less premium at
10 per cent, which is high enough,
$40, gives net cash, 81 ,260, or ten
dollars more than the house costs.
The payments fer that sum are 81 per
month dues per share and 81 per
month interest per share, or 50 per
month on seven shares is total pay.
ment of $14 per month. Continue it
month by month for ten or eleven
years and the house is yours. This is
no guesswork; it is the experience of
Because either from "bad luck" or
bad management B. & l.. associa.
ton once failed here is no argument
against its success at the present |
day, with competent men to manage
it. It is worth an honest, earnest eff
fort.