Demystifying Church Facility Financing

Episode 699

Church planters are thinking about financing permanent facilities, but probably no group of people is less equipped to go into commercial real estate transactions. Host Clint Clifton talks with Colby Garman and Ray Clark about the basics of financing church facilities.

In This Episode, You’ll Discover:

  • Advice about how a facility’s price tag might translate into a monthly cost
  • The percentage of budget mortgage payments should be limited to
  • A standard expectation for how long you would be paying on a mortgage
  • How obtaining a permanent facility relates to the church’s mission
  • Some ways churches don’t have sound biblical ways of thinking about money

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Sharable Quotes (#NewChurches):

The easiest rule of thumb is to look at a church’s annual income and multiply it by three to four times. Probably 98% of churches can use that to approximate what they could afford in a facility. — Ray Clark

Church planters are notoriously optimistic about the the future of their work. That needs to be tempered a little bit when we’re talking about getting into a multimillion-dollar facility promise for what amounts to decades. @ClintJClifton

Making a big decision like getting into a mortgage impacts how you function in ministry going forward. Some of the freedom to think about multiplication and sending out church planters goes away by making that decision. @ColbyGarman

We put a fence around the possibility of over-extending ourselves financially and we said we’re going to keep mission and ministry our priority. @ClintJClifton

Every single decision you as a leader make has a financial ramification. Every time you say yes to something, you’re automatically saying no to something else. — Ray Clark

Sometimes Christians have really off ways of thinking about money that make these conversations really hard. Like, “Hey we’re supposed to just have faith and all this talk about details and financing is uncomfortable.” @ColbyGarman

The No. 1 thing we run across is pastors who are the “tip of the spear” leader who just don’t engage in this conversation at all. — Ray Clark

Published September 8, 2022

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