The Punta Gorda herald. [volume] (Punta Gorda, Fla.) 1893-1958, 1920-07-22
THE BARLOW PLAN.
How Barlow is Solving the Housing
Problem.

known as the Barlow Plan"
y. In working out this plan, they haC
- the cooperation of one of the bigges
= industrial companies in the Unirec
y States and also the cooperation OF
" the president of one of Chicago's
. biggest banks. AS the plan is APP.
:. proved by both, ii would seem that il
: is sound financially.
= Knowing that Barlow does not
: stand alone in its great need of more
- homes and that practically every live
: town in Florida finds that same need
, one of the greatest problems today,
the Barlow Board of Trade is passing
: along to others the fundamentals of
the plan in the hope that it will be
of service in the upbuilding of our
great state. The Barlow plan is as
follows:
l. The name is the Barlow Home
Building Corporation.
.. 1t is incorporated for $4,000
divided into shares having par value
OF 500 each. The stock was sub
scribed by rs Barlow citizens in
amounts ranging from $4,000 down
ito 800.
g. This stock will be paid for by
the subscribers in assessments of 20
per cent each on the call of the di-
I rectors of the corporation, but no two
assessments shall come within 80
days.
4. The Barlow Home Building
corporation will use this capital only
for lending for the purpose of build
ing homes in Barlow. 1t will require
the borrower to have building lot
or lot and money together amount
ing TO 20 per cent of the value of the
house and lot together will have have
when completed.
5. The corporation will secure
for the borrower a loan from other
sources amounting to so per cent and
if possible so per cent. of the total
value of the house and lot. This
loan to be for a period of six years at
s per cent and secured by first mort
gage on the property.
6. The corporation will loan the
borrower the balance to complete his
home and take second mortgage as
security for same This means that
the corporation will actually provide
only 80 per cent of the total value of
the property in the event the first
mortgage is for so per cent loan or
20 per cent if the first mortgage is
for so per cent. Presuming the sv-
erage house and lot value to be S4,-
600, this would mean the borrower
must have $500 in lot or cash or
both, that the first mortgage loan
would be $4,000 and that the corpor-
alton would loan $1,000 of its cap
itaI and would be able to make forty
one such size loans out of its capital
$4,000.
I. The corporation will do bust
ness through its officers and directors
but the secretary-treasurer will be
the active man. His services VIII be
paid for by a charge of per cert on
the amount of the second mortgage
for the first year only. There will al
so be a charge of per cent for the
first year only as a brokerage on the
placing of the first mortgage loan
1t is estimated these brokerages will
pay the secretary-treasurer $1,000
per year and rs Il is amount only
would not secure the services of a
high class man, 4 secretary treasurer
was chCTen from the pesonnel Of one
of the local banks, thus avoiding
rental of an office.
8. Monthly payments of I per
cent of the total finished value o. the
property will be required, or $40 per
month on the 1000 property. This
payment will take care OF the inter-
est or the first mortgage loan and al
so will pay the principal and 6 per
cent interest on the second martgage
loan in 65 months. This will leave a
period OF seven months between the
time the second mortgage loan is
paid out and tine date the first mort
gage loan becomes due, in which
time the borrower can arrange for
payment of first mortgage or renewal
or replacing of the loan.
8. 1t is anticipated that when the
entire capital of $4,000 is loaned
and by using the accumulation of all
payments, the building of 43 to 5
homes will have been financed and
that the corporation will then be able
to borrow $4,000 by putting up its
second mortgages as collateral Loan
ing this amount of money will f.
nance the building of so per cent
more homes, bringing the total
amount to practically 20 homes in
. one years time
Commenting on tie plan. J. For
, rest Caldwell. secretary of the Bar
tow Beard of Trade, iii a communica-
. ton to the Herald. s@ys: We have
not lost sight of the fact that there
will be some borrowers who will not
require the maximum amount of the
loan, which will increase our build
ing capacity accordingly. We also
. take account of the psychological eff
feet on those able to build without
; borrowing, which will naturally oc-
: cur with buildings going up in all
. parts of our little city. and believe