The Washington times., 1925-05-16
LEWIS FINANCE
PLAN FOUND
GOOD
Guy S. Zepp, Local Manager
for the Lewis Company,
Explains Idea

The Lewis Manufacturing Com
pany reports that the new plan
that has just been offered by this
company Of financing their homes
On second trust monthly payments
has proven 20 be the most popu-
lar thing that he's as yet been at
tempted by any housing organiza-
ton.
Guy S. zepp, local manager for
the Lewis Company, says:
Heretofore, a man who had only
a small amount of cash was in such
position that made it practically
impossible for him to buy a lot and
build his own home. Unless he had
enough money TO represent about
40 per cent Of the entire undertak-
ing. it was practically impossible for
him to get his operation financed,
but with the new plan arranged by
the Lewis Manufacturing Company
it is@possiblo for a man to finance
his house and lot. BY being able
to put on q straight three-year first
mortgage loan and to pay the
Lewis Manufacturing Company 70
per cent OF their material in month
~ payments. covering a period Of
three years, you can see that it is
easily possible for him to build his
own home almost as adVantaReously
as he can go out and purchase n
home already built on a small cash
payment. with the advantage that
in building his own home, he is able
to build according to his own ideas.
(which. after all, I believe is the
greatest thrill that anyone gets out
OF life) and he also saves the neces.
sarily large profit that has to be
charged by speculative builders in
order to cover their overhead and
the cost Of carrying monthly pay
ment notes for indefinite periods.
The following are some compare
tive figures of the manner in which
most financing by brokers is work.
ed out. If man owns a lot worth
$4,000 and has it paid for. and
wants to build house on it cost
ing $s 200, making a total cost Of
0,O00 for house and lot, he can
generally borrow from local build
ing institutions about 60 per cent
of this amount or $4,000. That
means that he still owes 50 900. On
a house Of this character the Lewis
material which would probably run
around $4,000 to $4,000, with the
Lewis Company's financial plan, all
he would need would be one-fourth
of the amount of the cost Of the
Lewis Company's material and the
other three-fourths he can give
monthly notes covering a period of
three years or in other words tTir-
ty-six notes of equal amount bear
ing per cent interest and with a
brokerage charge of only 4 per cent
year andF he is enabled to go
ahead and build a $4,000 home
where he may have only clear lot
and enough cash to pay one-fourta
down on his material.
On the other hand, If he wanted
TO go out to buy a new home al
ready built that was equal in value
to his $4,000 home he would
naturally have to pay about $12, 500,
as it is impossible for a specula-
tive builder to build homes Of this
character and sell on payments
that run over a period of years.
unless they do make a profit Of
from Is to 20 per cent. The agents
commission alone just for selling a
house runs per cent, which would
be $500 on a $4,000 home Now.
if the man who wants to build his
own home can get sufficient finan-
cial help in a wholesome way, he
can. not only build a honFe Of his
ideal, but he can avoid paying all
these excess commissions and
profits