Network,Find Opportunities,Find Funding, Promote Events and Services
Over 70 percent of the United States’ affordable housing stock consists of small scale rental properties. In Florida alone there are approximately 400,000 units in multi-family developments containing 9 units or less, with the average age of this stock being 40 years old.
Until recently, most of the rental development activities in Florida focused on single family home ownership and large tax credit funded new construction.
The housing bust has created opportunities for developers to acquire and rehab some of these smaller developments.
But this business model is not without its challenges.
The most difficult hurdle for acquiring low-income housing, is buying the property without any capital. This is where we can help. Obtaining financing is especially critical with for-profit developers, whose projects need to make financial sense at the end of the day.
This is how we can make it happen for you. The investor puts up the equity and debt and own 99.99% of the property. They take the depreciation. A partnership is put in place. You become the general partner and investors take up to 20% of the income, the balance is divided up. Section 42 runs for 15 years with the same "owners".
DEVELOPERS MUST HAVE OWNED THE PROPERTY FOR 10 YEARS AND THE LAND MUST BE AVAILABLE TO BE ZONED FOR LOW INCOME HOUSING
Financing Low Income Housing ***What We're Looking For***
We are looking for Section 42 of the IRS code but are not limited to this, as to not miss any opportunity. This includes senior housing, student housing, people making $35K or less per year, or subsidized market. We would be interested in any property yielding a MINIMAL NOI of $1,500,000...nothing less. Anything above this would be great and we would be capable of taking it down!
We are serious buyers and we will be able to close quickly. As long as the seller can produce the necessary due diligence and is honest and straight forward, he/she will get a sale.