Real Estate Investment Opportunities That Provide Housing For The Homeless
The National Housing Trust Fund Program (NHTF), funded by the Department of Housing and Urban Development (HUD) provides funding to build or rehabilitate housing that supports extremely low and very low-income households. According to HUD, 90% of NHTF’s funding is centered on repairing, preserving and developing rental housing and the remaining 10% of funding is used to assist with homeownership services. Eligible activities Eligible activities for the funds include: – fresh construction – restoration – acquisition of property – rehabilitation – financing expenses – relocation expenses Who are the Eligible Applicants – Non-profit developers – on the For-profit developers may also receive funding when they partner with non-profit developer who is receiving funding through the program. Read more Follow us : Click Here
Community Development Block Grants (CDBG), a Gateway to Affordable Housing
The development of its citizens is the surest path to the development of a country. People who are homeless or who cannot afford to purchase a home can become property owners through a little-known program sponsored by the U.S. Housing and Urban Development Agency (HUD), the Community Development Block Grants program (CDBG). HUD’s CDBG program, established in 1974, was created to provide a path to homeownership for low and moderate-income families. Under the program, states, cities, and counties are able to apply for grants annually to revitalize housing stock and infrastructure in their communities. Eligible activities under the CDBG program Funds provided through CDBG grants support housing-related activities including housing repairs and rehabilitation, down payment assistance and closing costs, and the purchase or construction of rental housing or owner-occupied housing. Housing counseling and relocation assistance are also provided to help aspiring owners in their home buying journey. You can read my recent blog here: Click Here
A Penny Doubled For 30 Days is How Much?
If you ask the average person if they want to have a penny doubled for 30 days or $2 million dollars, they are likely going to take the $2 million. It is a tricky question, doubling a penny doesn’t seem like it would amount to much right? Well at the end of 30 days that $0.01 is worth $5,368,709.12! Surprised? This is the power of compounding. Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it. – Albert Einstein Pretty crazy stuff. To visualize what is happening each day take a look at the chart below: The key takeaway from this should be to start investing early and think of the long-term game. Let your money work for you. Oh and if a genie ever pops up and asks you if you would like $2 million dollars or your penny doubled for 30 days, now you know what to do. Reference: Click Here
The Skinny on Fix & Flip Investments
Can purchasing a house be as easy as the internet claims? Given the old saw of not posing through life, paying for your champagne-tastes on a beer-budget, can you really build a property portfolio with limited income? How do you find deals and discounts, especially when searching for your first real estate investment? These and many more are the questions facing most new and would-be property investors. And this is where fix-and-flip, or sometimes just plain old leave-broke-and-flip, shine. What is Fix & Flip? A fix and flip real estate strategy is fundamentally premised on turning something ragtag into a ready-for-company gem. Speed and timing are of utmost importance with this strategy. In a fix and flip, an investor purchases a property that is well-past its move-in-ready prime due to neglect, deferred maintenance or outright abuse (requiring drywall and carpet at the low end, or roofing and HVAC systems at the high end), rehabs it in days if possible or a few months tops, and sells it either to a homeowner or another investor. Homeowners tend to be the target customer when the neighborhood has all the markings of family friendliness— a great school system, a community brimming with charm, and a subdivision with curb appeal. Investors tend to be the target when the community is on the upswing (beware the seller who talks a blue streak about how XYZ city is finally really and truly poised to take-off this time) or the rent to value ratio is high (for instance, the purchase price of the house is $50,000 and the monthly rent is $1,000, yielding a 25% return on value). A fix and flip strategy offers several advantages including a quick return on investment and limited exposure to housing price swings (after all, you’re buying and selling the property in a matter of months). But with that comes the attendant pressures of a short timeframe: the whims of Mother Nature, contractor delays and fickle buyers. Leading one to wonder, why fix and flip at all? In a word— profits. Fix & Flip Returns According to Attom Data, publisher of a national property database, the average gross profits on houses that were flipped in the U.S. during the third quarter of 2021 (that is, the average price that an investor sold a house for vs. the price the investor bought the house for) were a cool $68k, translating into a 32% return on investment. And these margins, high though they may seem, are actually at their lowest point since 2011. Queue the tiny violin for those still crying over their lowest-in-a-decade returns. Financing Fix & Flip Properties Banks, credit unions and other traditional mortgage lenders are often put off by the very attributes that make fix and flips attractive: a lightening fast close horizon and value-enhancing renovations. Hard money lenders— also known as alternative lenders, private lenders and non banks— face few of these restrictions, allowing investors quick access to purchase and renovation loans. The fees and interest rates for such loans are hefty and should be approached with caution. But for investors with limited equity, so-so credit or an immediate opportunity, hard-money loans provide an entry point.
HUD Dollar Homes for Low and Moderate Income Buyers
What can you still get for $1 these days? Scratch-off lottery tickets? A paltry few items at the Dollar Store (now the home of $1.25 items)? A suspect candy bar in an unlit corner of the neighborhood corner store? Now you can add a whole house to that list. The Housing and Urban Development Agency (HUD) sells homes to local government agencies for $1, under an initiative to help communities foster housing opportunities for low and moderate income families. The so-called “Dollar Homes” are made available to local governments to buy if the HUD-owned homes have gone unsold for at least six months. The market value of these homes is less than $25,000. A $1 price tag allows local governments to buy the homes at a significant discount, rehab them and sell them to low-income and moderate income families. While the qualification criteria are stringent, this offers an attractive path to home ownership.