The Catalyst Project - GROW - Real Estate Development

GROW - Real Estate Development

Since the mid-1970s, Bank of America, based in Charlotte, N.C., has established itself as a leader in community development and affordable housing. From 1977 2001, $2.3 billion in equity investments have resulted in the milestone of 100,000 affordable apartments throughout the nation. The bank¹s Community Development Corporation, the first established by a bank, acted as developer for 20 percent of the total, and has made loans and investments directly to affordable housing developers as well as through financial intermediaries such as the Enterprise Foundation. Beyond its affordable housing financing and equity investments, Bank of America has provided traditional financing for hundreds of thousands of low- and-moderate-income customers across the country. Bank of America ranks as the number-one home mortgage lender in low- and moderate-income neighborhoods and to minority customers. To reach first-time homebuyers and targeted neighborhoods, the bank forms strategic alliances with non-profit housing organizations such as ACORN Housing and the Neighborhood Assistance Corporation of America (NACA). These organizations run financial education and counseling programs to help prospective buyers understand the mortgage process and become credit-ready to qualify. Many of their clients are first-time homebuyers. Further demonstrating industry leadership, Bank of America recently made an unprecedented, 10-year, $350 billion commitment to community development lending and investment, and expects to surpass $100 billion in just three years.
Cited from www.winwinpartner.com an amazing organization dedicated to achieving a competitive advantage through community reinvestment.

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Featured Stories

Robert Perry

1) How did you get into real estate development and why?
Got into "development" sort of coincidentally... my initial plan was to invest via acquiring va foreclosed properties, rehab them and do lease to purchase options for folks who wouldn't ordinarily be able to purchase a home... i happened (via the Lord) to meet a general contractor during that time. our relationship progressed, he suggested i develop rather than invest, the Lord enabled me to secure construction financing, and the rest is history!
2) What aspects of the community did you engage with in your development process?
Initially engaged the faith based community. my intent (even during my investment phase) was always to go into underserved, urban areas provide a high quality product, but at an affordable price point. the ultimate goal is to enable economic empowerment. i figured home ownership was a critical piece of the objective so i focused on it. i focused on the faith based community because i felt by financially empowering members of the church, the church would become more empowered and in so doing have the resources necessary to be the point of influence in the community...
3) What have been some of your greatest challenges and your greatest rewards?
The greatest challenges have been working with persons in the building community that don't quit have a strong concept of meeting deadlines and prioritizing... this in comparison to corporate environments where deadlines are everything... that's been a very difficult transition... the greatest reward has been to witness the community transform... the product i'm developing in my current subdivision has earned rave reviews from the folks in the community... in fact, i'm scheduled to appear in a state magazine for my efforts...
4) How do you think your efforts will impact communities for generations to come?
I think my efforts will impact generations and communities in that it should encourage a paradigm shift in a couple of areas... first, it should make folks cognizant of wealth building and the role in which home ownership plays in that campaign. i like to think this will over time reduce social hazards as economic activity flourishes... secondly, it will give folks a community they can be proud of! this should render a positive influence on self esteems and personal productivity rates...

Michael Young

1) How did you get into real estate development and why?
I got into real estate development for the purpose of long term wealth creation. I was looking for investment opportunities in general, and determined that real estate was one option to pursue. I was also looking to "diversify" my income, so investing in real estate (buying and renting propoerties) allowed me to develop multiple streams of income, and therefore minimize my dependence on my "9 to 5". After I purchased my home (primary residence), I began to research the process, requirements, risks, etc as it relates to purchasing investment properties. Once I had my research completed and my finances in order, I purchased my first rental property through traditional means - I noticed a property for sale in an area that I knew would appreciate in value. I called the selling agent, arranged for a visit, and then placed a bid. Once I purchased the property, I secured a tenant to rent the house, and then I began looking for the next investment property to purchase.
2) What aspects of the community did you engage with in your development process?
I engaged with anyone who was willing to talk about the community/neighborhoods. I was mostly concerned with understanding the issues and trends within the neighborhoods that I was looking to purchase. I wanted to understand how I could help support/improve the conditions of those in the neighborhoods. I also wanted a clear understanding of the expectations surrounding being a property owner in each of the communities.
3) What have been some of your greatest challenges and your greatest rewards?
My greatest challenge, quite honestly, has been to establish a strong relationship with the individuals and families who have chosen to rent my properties. I've found that tenants have very high expectations when it comes to the property, while they have lower expectations when it comes to their financial commitments to the properties. It's a tough balancing act to provide them with optimal living arrangements when they are not always cooperating with the financial terms of their lease. My greatest reward I think is one that I will probably not experience: generational wealth creation. Ultimately I hope that I'll be in a position to pass these "investments" down to my children, grandchildren, etc... to create that generational wealth. I'd also hope to pass some properties down to community organizations and other non-profits that are involved in community development.
4) How do you think your efforts will impact communities for generations to come?
I hope that my efforts will empower future generations to take a stonger position within their communities. I trust that the passing down of wealth will enable the next generation of individuals and community leaders to be in a stronger position financially and to gain a greater level of independence which should ultimately enable them to better serve and strengthen their communities.

Amy Wolff

1) How did you get into real estate development and why?
It is funny. I actually got into real estate development as a fluke. I was a social worker for over 10 years and then a friend/colleague talked me into transitioning into the mortgage business. I was always interested in real estate as I had seen how much real estate appreciates over the years and believe that it is one of the best investment opportunities. I had the opportunity to purchase my first rental and to assist a man in remaining at his residence of 10 year, after his landlord passed away. Otherwise he was going to have to move, as they were selling the home. That was the beginning of it all.
2) What aspects of the community did you engage with in your development process?
I have been focusing on the low to moderate income tract and on educating renters on their ability to purchase homes. Many people think that they are unable to own their own home, due to lack of money to put down or poor credit scores. There are many programs available and with creative financing and a little hard work, anyone can own a home.
3) What have been some of your greatest challenges and your greatest rewards?
I find a lot of pleasure in assisting people with their financial needs through refinancing and in becoming home owners. I have assisted families in saving their homes from foreclosure, lowering their payments and have as sited people in building wealth. I always take the time to educate people on ways that they may be able to begin developing wealth. I have hit many challenges, to many too discuss right now, but with my never give up attitude and a bit of persistence, I have not found a challenge that was able to stop forward progress.
4) How do you think your efforts will impact communities for generations to come?
I believe in helping people, one person at a time. My efforts are sure to effect generations to come as the knowledge and wealth that people have gained will be passed through the generations.