The Washington herald., 1920-10-24

above market rates, with a reason
able expectation of an appreciation
in value through surrounding sup
porting values. The site procured.
careful consideration Is given to
the type of apartments to be pro-
duced. based on present demands.
and with flexibility to adapt in a
measure to future requirements.
Expenses nre Avoided.
In planning the exterior archi-
tectural effect should be attained
by lines and proportion rather than
by the use of expensive materials,
and here much can be saved the CO.
operator by experienced and skill
full judgment Likewise, on the in
terror, flummery should be discard
ed. leaving the owner free to display
his individual taste, without penal
izing him with something he may
not want. But every practical de-
vice should be installed which can
ease the rounding all domestic af-
fairs.
The floor plan having been
adopted, disfnterested real estate
experts with knowledge OF local
renting values of the district should
be asked to appraise the renting
values of the various apartments,
and on these disinterested opinions
of revenoe values and expert advice
as to operating expenses the whole
financial structure should be based.
The profits to be made by the pro-
moter-contraeter for all services in
the conception. planning, financing
and erection of the building should
in no instance exceed Is per cent on
the total cost, and this should be
the only profit in the enterprise,
otherwise in most cases 1t will
penalize the investor.
Time to Proceed.
After satisfactory title insurance
is obtained and a demand for the
stock is manifested. the enterprise
should proceed. The voluntary pnr-
chase of the stock ~ such an en-
terprise is the justification for it's
creation. Such an enterprise can
safely assure to the owner a return
of from l0% to 1896 per annum on
the investment. either in occupation
or through sub-letting. Those who
promise rent free or benefits more
exaggerated than this, are treading
OH udHstIouS sTOuIlu, dllnOusH IN
the experience of the writer in a
few exceptional cases this has hap
pened. After all. operations of this
character can only be successful in
a large way. when the investing
public has confidence in the ability
and integrity of the promoter and
the knowledge that the profits are
moderate and that the investor has
the benefits of a mass production.
cooperative apartment enter
prises are bound to live and in
crease in number. Well conceived
and executed. their merits are not
to be disputed. but the ability of the
investor to sell at any time is a very
necessary incident. and this can be
satisfactorily accomplished only
when market value is given the
original investor.
Assistances for Selling.
I'm addition to this. the organi-
zstion which has produced any such
enterprise must give the assistance
"of it's selling force to any patron
who desires to dispose of his hold
ings.
"A purchaser of stock in a coop
erative building. planned and erect
ed by experts in the business. re-
flecting the savings derived by guam
tity production. carrying only a
reasonable profit to the promoter
contractor. acquires habitation
suited to his requirements cheaper
than it could be produced in any
other way. When the operation is
concluded the stock should be worth
more than it cost. The owner OF
the stock again enjoys the advan-
! tages of cooperative administra.
tion. has a voice in the management nj
of the property. can treat his own
apartment in any way desired. is
forever free from increases of rent
and in a comparatively short time
amortiIes his principal investment
, through the savings made.
Here is the solution of the hous-
, ing problem and freedom from the
exactions of rapacious landlords and
the burdens and perils of individual