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Charter School Business
August 2008 Newsletter
LOOKING FOR CONFLICTS OF INTEREST
BY Brent Van Alfen
"There are “war stories” that abound in the area of charter school facility finance where school boards have been victimized by those who had ulterior motives."
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Thursday, August 28, 2008
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WHAT YOU NEED TO KNOW ABOUT CHARTER SCHOOL FUNDING
Commerical Markets & Money Sources
Understanding the Costs in Getting a Loan
Some Basics in Applying for Funding
Tips to Remember when Applying for Funding
LAWYERS/ACCOUNTANTS/OTHER PROFESSIONALS
The following are important tips to remember when working with professionals:
- Don't be bullied!
- Keep professionals working in their own area of expertise
- Get itemized billing statements and check them thoroughly
- Be a good consumer in selecting a professional
CONSULTANT/ADVISOR/BROKER
The following are important tips to remember when working with professionals:
- Their role is to represent and protect your interests
- They should know the potential lenders for your situation
- They should know what terms and conditions can be achieved and push for the best available
- They should give you alternatives
- They should help you understand what you are doing and why
- Hourly compensation plus expenses versus percent of the financing
- Be a good consumer
THE ART OF THE DEAL
I have taken a loan request for a charter school that was turned down back to the same institution that turned them down and gotten an approval just by knowing how to present and structure it.
IMPORTANT NOTE
Never sign a personal guarantee for a charter school financing unless you own the building and are leasing it to the school!
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