This is the 5th post in a series on building your real estate portfolio with an Expert Community Resource strategy – Here is Part 1.
Are you building long-term wealth within your community?
Let me tell you how to grow your portfolio by marketing your status as an Expert Community Resource by working with an unexpected partner: non-profit organizations.
First, know this: most investors have no idea that non-profits make money.
They think of them only as charities who take money, and that’s not always the case. Charities often do wonderful work, but not every non-profit is a charity.
Many non-profits these days are sophisticated organizations run by smart professionals.
As vehicles for community improvement and alleviating poverty, many non-profits develop low-income housing and provide financial assistance to people who are struggling. These are often ideally suited for partnerships with savvy long-term investors.
Community non-profit organizations are eligible for grants and public funding which private investors may not be able to attain alone.
This extra funding makes it possible to develop properties that wouldn’t otherwise get developed – often in blighted areas where investors haven’t wanted to invest.
Non-profits will manage housing developments and collect rent on buildings that are underwritten by private funders, too. That’s an opportunity for investors to earn a decent rate of return while promoting the growth of the community.
And don’t think “community growth” is entirely altruistic. There are lots of people making money while improving life for others.
Think about it – what happens to the value of the neighborhood around when a gross, disgusting vacant property is developed into a thriving community center?
It grows!
If you’re the owner of an apartment building nearby, all of a sudden you have a huge amenity for prospective tenants. Your rents and property value will increase, plus you might see a decrease in vandalism and other petty crimes.
Plus, working with the board of directors and volunteers of these organizations is often a catalyst for other deals and opportunities. You’ll meet some of the most committed and philanthropic folks in town when you connect with the right organizations.
And in certain situations, you may even be able to create a pipeline to help you acquire discount property.
Partnering up with a non-profit who serves people facing financial hardship may be a way for you to get in touch with sellers who need cash offers.
Offering a percentage of the future profits of each deal as a donation back to your non-profit partner will help your business to grow with the community.
Here are some strategic suggestions to getting involved with community investment around you:
- Take the time to research and meet with many organizations to understand the role that each plays and how you might be able to participate.
- Volunteer on a board or a committee to gain insight into the actual running of the organization before you propose partnerships.
- Make sure the organization has the capacity to fulfill its end of any bargain you strike. Don’t make any assumptions, and perform your due diligence.
- Find ways to publish the information that your non-profit is generating and get their core message into the community. Most Community Development Corporations (a type of non-profit often well-suited to investment partnerships) are treasure troves of data and information.
- Create events, bring in additional sponsors and help to generate media recognition for your non-profit. These promotional activities will benefit you greatly, but don’t try to make yourself the focus. Let the non-profit shine and bask in the glow.
Coming up next… I’ll let you know how to expand your Expert Community Resource strategy with free internet marketing tricks that will help your business to soar.
Don’t miss it!
