Our goal is to raise $2.5M so that we can purchase a large Commercial Apartment complex & convert into individual condos that can be bought by individuals who can then build equity.
The issue we find is that some of the most affordable homes are sold in bulk (apartments) which makes it all but impossible for a buyer starting out to be able to purchase.
Imagine for a moment that you want to buy a $300k home & you're excited because you have worked hard & you know that your monthly mortgage payment will only be $1800/mo. You see that a developer built 100 new homes, each worth $300k in a new development. However, they can only sell these homes in bulk packages of 25 homes at a time because they agreed to save some money by zoning the project in bulk. Now, the city planning/zoning explicitly PROHIBIT the sale of individual homes & REQUIRE that the minimum sale package is 25 homes at a time. A big commercial buyer named Dark Stone comes in and pays $7.5M for 25 homes & begins to rent them out for $2,250/mo each with annual increases...you know you can afford the rent now, but if that was a mortgage you'd have your own home & an extra $450/mo & you wouldnt be trapped into increasing payments every year while throwing your money away to help Dark Stone build more equity from your efforts.
Sadly, for many this is their reality...those homes are called Apartments. These are the affordable homes hidden in plain sight! Affordable homes that just need to be converted & rezoned in order to help improve the affordable housing crisis for so many of our most vulnerable who are subject to rent payments that are more expensive than a mortgage for the portion where they live.
We have developed a repeatable, fool-proof strategy working with the local city planning/zoning offices to ensure every acquisition is approved before we buy it.
Make no mistake, the city's are begging for us to continue doing this because of the added value & tax revenue created by conversion. Increased assessed property values means more tax revenues collected which helps improve roadways & schools! 🙌🏼 Equity built at a lower price point helps provide upward movement in the chain of home ownership.
If we can make homes affordable from the bottom up it will have a ripple effect on housing as a whole.
We currently have a project that we finished in Pharr TX as a proof of concept & it has been a huge success. We bought the complex for $1.65M & after conversion the value was $4.14M, but we are selling units for $150k each giving each buyer approximately $30k in equity! 🙌🏼 They are 2bed/2.5bath 1,278sqft built in 2014. We remodeled them & we would like to start working on the next project as we sell these units. 6 of 23 have been sold & we have 3 pending sales now.
We would love to expand our operation nationwide so that we can better serve our communities & make a real impact in the overall housing market.
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