I’m working with an organization that’s aiming to address affordable housing in a way that leverages time as a primary tool. Our belief is that real, sustainable affordability in housing can only be achieved by taking a long-term approach—think 100 to 200 years. The idea is to start now, so over the next 30 years, we can build enough market influence to work effectively with affordable housing programs and truly drive down rental prices.
To kick this off, I’m working on our first project. The plan is to acquire 10% shares in local property management companies whose goals align with ours. The organization would collaborate with limited partners to help fund the acquisitions, with a long-term goal of buying out the investors over time. The resulting real estate portfolio would then be used to fund key community programs, like feeding elders and supporting local economic development initiatives.
This is a new space for me, and I’m still figuring out how to structure something like this. I believe there’s a unique opportunity here to build an endowment for the organization, using real estate as the foundation. Over time, the portfolio’s income could drive further growth, support local businesses, and spur economic development in our community.
My questions for you all:
Has anyone here structured something similar, where limited partners are bought out over time by an organization? How did it work?
Are there specific pitfalls I should look out for when investing in property management companies as part of a long-term strategy?
What’s the best way to attract investors who understand the vision of a multi-decade endeavor like this?
I’d love to hear your thoughts, insights, or even suggestions for resources. This is a 20-30 year journey, but I’m excited to take the first step and would appreciate any advice from this community. Thanks in advance!
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
1y
First, I would say bravo thinking outside of the box!
Second, there isn't a lot of info here and that is understandable.
1. No.
2. A PMC is similar to any other business where there are lots of pitfalls, too many to name.
3. This is a difficult sale... finding someone to invest is a difficult sale but asking them to invest for decades is going to be an almost insurmountable sale.
Based on what you have described I would not invest, and I don't know any investor that would consider investing. My advice is to figure out a way to make the investment more liquid with less risk. Also, I am COMPLETELY confused about what your concept is and what you hope to achieve by buying 10% of PMC's. I don't see the vision...
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
1y
First, I would say bravo thinking outside of the box!
Second, there isn't a lot of info here and that is understandable.
1. No.
2. A PMC is similar to any other business where there are lots of pitfalls, too many to name.
3. This is a difficult sale... finding someone to invest is a difficult sale but asking them to invest for decades is going to be an almost insurmountable sale.
Based on what you have described I would not invest, and I don't know any investor that would consider investing. My advice is to figure out a way to make the investment more liquid with less risk. Also, I am COMPLETELY confused about what your concept is and what you hope to achieve by buying 10% of PMC's. I don't see the vision...
Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
1y
Your plan is to “buy out investors over time” then “truly drive down rental prices” and then with the portfolios “income” support “local economic development initiatives.” How do you plan on having income while driving down rental prices? How will you pay back your investors?
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
1y
There is no such thing as "affordable " housing . There are too many factors that you cant control . The cost of labor , materials , property taxes , inflation , interest rates etc . I dont know any investor that wants to see rents drop , NONE . The government has tried it with section 8 and rent control in some cities , we all know the end result .
You would be better off starting a jobs program teaching the trades , educating them on finances and work ethic and then rebuilding abandoned properties for them to buy
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
1y
OK, so after reading your post, my main and only thought was:
Why?
What is the point of what you hope to do? I'm going to turn your idea into swiss cheese here, so don't get offended - maybe it will let you consider other angles here.
1. Your timeline made me laugh out loud. No one on this board or their kids are going to be alive on this planet for your timeline of 100-200 years. Think about where this country was 200 years ago and compare it to now. Now, think about the acceleration of technology and imagine 200 years into the future. You are attempting to create the Roman Empire here, something that lasts into perpetuity, when today you're lucky if you can create something that lasts 20 years.
2. What is the societal value of driving down rents over time? The creation of some type of socialistic egalitarian society? It counteracts human nature, which is laziness, greediness, self-centeredness. Even in the nascent years of Communism, the idea was dead within 10 years; the Soviets only managed to recreate a society of oligarchs and peasants under the lip service of equality. The Chinese got a little smarter and have tried to overlay capitalism on top of it, unsuccessfully. Various other societies have more or less income and living inequality but none can counteract human nature, which is why some form of capitalism is inevitable.
3. Who is going to want to invest in a scheme of diminishing returns? You're talking about programs generally run by the government as the operator of last resort because no one else can make enough money to make it make sense. Where do you expect to receive the money to buy out your "partners" in these companies as you drive returns into the ground?
Overall, it sounds to me like you want to help the poor. If you want to help the poor, force them to learn financial management and get up and get to work. Better yet, accept the fact that there are always going to be the poor, and a good number of these people - especially in class-movable societies like the US - are going to be there because they aren't motivated enough to do anything further.
First, I would say bravo thinking outside of the box!
Second, there isn't a lot of info here and that is understandable.
1. No.
2. A PMC is similar to any other business where there are lots of pitfalls, too many to name.
3. This is a difficult sale... finding someone to invest is a difficult sale but asking them to invest for decades is going to be an almost insurmountable sale.
Based on what you have described I would not invest, and I don't know any investor that would consider investing. My advice is to figure out a way to make the investment more liquid with less risk. Also, I am COMPLETELY confused about what your concept is and what you hope to achieve by buying 10% of PMC's. I don't see the vision...
Thank you for the feedback—it’s much appreciated! You’re absolutely right that my vision wasn’t clear, so let me clarify.
At its core, my goal is to create something akin to a university endowment—an enduring financial structure fueled by real estate investments to support long-term economic development initiatives. Here’s how I see this unfolding:
Building the Foundation: Acquiring ~50 Units I’m starting with a goal to purchase approximately 50 units in my local market, with the help of equity partners. These properties will generate the steady cash flow needed to build a foundation for the endowment.
Leveraging Existing Assets: My 17 Properties I own 17 properties, which I plan to integrate under the management of a trusted property manager (PMC). This allows me to streamline operations while tapping into an infrastructure that includes contractor networks, tenant management systems, and local expertise.
Scaling Through Flips Next year, I plan to launch a direct mail campaign targeting off-market deals, aiming to complete 15 flips. The PMC’s infrastructure will be instrumental in ensuring these projects succeed, helping to grow the portfolio quickly and efficiently.
Endowment Vision Much like a university endowment, the long-term vision is to use the real estate portfolio’s profits to fund community-focused initiatives, such as:
Affordable housing programs
Job creation and training opportunities
Supporting local businesses and entrepreneurs
The income generated will eventually sustain key community programs, such as feeding elders and spurring economic activity. Over time, the organization would reinvest in these properties and buy out equity partners, ensuring stability and independence for the endowment.
Your plan is to “buy out investors over time” then “truly drive down rental prices” and then with the portfolios “income” support “local economic development initiatives.” How do you plan on having income while driving down rental prices? How will you pay back your investors?
hank you for the thoughtful question—it’s a crucial one to address. Let me clarify how the model is designed to work.
The plan balances three key components:
Market Stability and Long-Term Focus: While the ultimate goal is to drive down rental prices over time, this isn’t an immediate or across-the-board change. The strategy relies on leveraging time and scale. As the portfolio grows, we’ll be able to implement gradual, strategic adjustments to rental rates, particularly for tenants in need, without undermining the overall financial health of the endowment.
Phased Returns for Investors: Investors will be repaid through a combination of rental income and profits from other high-yield activities, such as property flips, during the early phases of the project. The flips are intended to provide the liquidity needed to both pay back equity partners and reinvest into acquiring more properties for the endowment.
Diverse Income Streams: The portfolio’s income won’t rely solely on rentals. By scaling and diversifying operations—e.g., through short-term flips, leveraging existing assets (my 17 properties), and potentially engaging in mixed-use developments—the model ensures that there’s sufficient cash flow to meet investor obligations and fund community programs.
Gradual Affordability: Driving down rental prices is a long-term goal. It’s about using scale and efficiency to reduce operating costs, which, over time, can be passed on to tenants without compromising the endowment’s sustainability. For example, we might use renewable energy initiatives, grants, or government programs to offset costs.T
There is no such thing as "affordable " housing . There are too many factors that you cant control . The cost of labor , materials , property taxes , inflation , interest rates etc . I dont know any investor that wants to see rents drop , NONE . The government has tried it with section 8 and rent control in some cities , we all know the end result .
You would be better off starting a jobs program teaching the trades , educating them on finances and work ethic and then rebuilding abandoned properties for them to buy
Thank you for the thoughtful input—it really helps refine the model.
You’re absolutely right that countless factors impact housing costs—labor, materials, taxes, inflation, interest rates—and no single solution can address everything. Instead of attempting to suppress rents artificially, my approach focuses on a sustainable, market-based strategy with a long-term horizon.
Here’s how I see this working:
Leveraging Time, Scale, and Institutionalization: Similar to how farmland has been institutionalized, leveraging scale and time can be powerful tools. Large-scale farming operations have used economies of scale to drive down costs, allowing them to sustain operations and feed large populations. In the same way, this model aims to scale housing operations over decades, creating efficiencies and reducing costs. By gradually optimizing operations and reinvesting in infrastructure, the endowment can support more affordable housing options without destabilizing the market or alienating investors.
Currently, we’re integrating three plumbing companies under our organization’s umbrella. This is both a business move and a workforce development initiative, targeting trades as a critical part of economic growth. By creating pathways into skilled trades, we can pipeline our population into higher-paying, stable careers while building the capacity to support future development. Additionally, I’m actively working with a business broker to identify and acquire more trade-focused businesses to expand our portfolio and capabilities.
Investor Alignment: I recognize that investors need clear returns, which is why this model focuses on high-yield activities early on, such as property flips and value-add opportunities. These returns would help attract and retain investors while aligning with the broader mission of long-term economic development.
Economic Development Through Housing and Trades: The vision isn’t just about housing—it’s about building entire ecosystems. By aligning housing with economic development initiatives like job creation, trade education, and support for local businesses, the goal is to foster community growth and stability. This includes funding trade programs that teach financial literacy, work ethic, and specialized skills, which can also directly support future development projects.
Workforce and Education: Your suggestion of focusing on jobs and trade education aligns perfectly with our vision. By starting with workforce development, we not only create immediate economic benefits but also lay the foundation for long-term growth. The profits from the initial real estate investments and trade businesses would fund future community-focused initiatives, creating a self-sustaining cycle of growth and reinvestment.
Thank you for the great question—it’s a critical point to address. Let me break it down further to clarify the mechanics of the plan.
Balancing Rental Prices with Financial Sustainability: The goal to drive down rental prices isn’t an immediate or universal adjustment—it’s a phased approach that leverages time, scale, and operational efficiency. Early on, rents would remain market-aligned to ensure the portfolio generates the income needed to cover expenses, pay investors, and reinvest in expansion. Over time, as the portfolio grows and economies of scale reduce per-unit costs (e.g., through streamlined property management, lower maintenance costs, and improved operational systems), we’ll have the flexibility to adjust rents strategically in a way that supports affordability for specific tenant groups, like workforce housing.
Generating Income Beyond Rent: The portfolio’s income isn’t solely reliant on rents. The plan includes high-yield activities such as property flips and strategic acquisitions to provide liquidity and generate returns. These activities will allow us to both pay back equity partners and reinvest in long-term growth. Additionally, we’re integrating trade-focused businesses (e.g., plumbing companies) into the organization’s ecosystem, creating another revenue stream that complements the housing initiatives.
Paying Back Investors: Investors will see returns in two phases:
Early Phase (5-10 years): Focus on cash flow from rents, property flips, and other high-yield projects to generate liquidity for investor payouts.
Long-Term Phase (10+ years): As the endowment scales and stabilizes, surplus income from the portfolio will be used to gradually buy out investor shares. This phased approach ensures that investors see returns while aligning with the organization’s mission.
Leveraging Time for Impact: Much like how institutionalized farmland uses time and scale to drive efficiencies and reduce costs, this model leverages a long-term horizon to create a self-sustaining cycle. By focusing on steady, incremental progress rather than immediate affordability, we aim to build a foundation that benefits both investors and the community.
Thank you for the great question—it’s a critical point to address. Let me break it down further to clarify the mechanics of the plan.
Balancing Rental Prices with Financial Sustainability: The goal to drive down rental prices isn’t an immediate or universal adjustment—it’s a phased approach that leverages time, scale, and operational efficiency. Early on, rents would remain market-aligned to ensure the portfolio generates the income needed to cover expenses, pay investors, and reinvest in expansion. Over time, as the portfolio grows and economies of scale reduce per-unit costs (e.g., through streamlined property management, lower maintenance costs, and improved operational systems), we’ll have the flexibility to adjust rents strategically in a way that supports affordability for specific tenant groups, like workforce housing.
Generating Income Beyond Rent: The portfolio’s income isn’t solely reliant on rents. The plan includes high-yield activities such as property flips and strategic acquisitions to provide liquidity and generate returns. These activities will allow us to both pay back equity partners and reinvest in long-term growth. Additionally, we’re integrating trade-focused businesses (e.g., plumbing companies) into the organization’s ecosystem, creating another revenue stream that complements the housing initiatives.
Paying Back Investors: Investors will see returns in two phases:
Early Phase (5-10 years): Focus on cash flow from rents, property flips, and other high-yield projects to generate liquidity for investor payouts.
Long-Term Phase (10+ years): As the endowment scales and stabilizes, surplus income from the portfolio will be used to gradually buy out investor shares. This phased approach ensures that investors see returns while aligning with the organization’s mission.
Leveraging Time for Impact: Much like how institutionalized farmland uses time and scale to drive efficiencies and reduce costs, this model leverages a long-term horizon to create a self-sustaining cycle. By focusing on steady, incremental progress rather than immediate affordability, we aim to build a foundation that benefits both investors and the community.
You've talked a lot here about how, but I still don't hear the "why". Why does this need to be done? What do you hope to accomplish?
It sounds to me like you hope to create generational cheap rentals for some unknown reason. How does this help the people that are your audience? For example, cheap goods at Walmart let people buy more cheap crap but at the expense, at least partially, of good manufacturing jobs that supported local communities.
Why do you believe cheap housing is in the best interest of the public? Why not aim to move these perpetual renters into home ownership instead?
Thank you for the feedback—it’s a provocative take, and I appreciate the opportunity to discuss it further.
You’re right in identifying the “race to the bottom” dynamic, and in many ways, isn’t that the essence of capitalism? Competition drives efficiency, innovation, and value creation. However, my aim isn’t to simply drive down prices for the sake of it. Instead, it’s about creating a sustainable model that balances profitability with cultural and societal value.
Capitalism, at its core, thrives when there’s a focus on value creation—not just cutting costs but creating something meaningful and enduring. In this case, the “value” I’m building isn’t just financial; it’s cultural, economic, and community-focused. By leveraging time, scale, and diversified revenue streams, the goal is to create a system that enhances the quality of life while still remaining financially viable.
This isn’t a race to the bottom—it’s a race to a better balance. A balance where real estate can:
Generate sufficient returns to attract investors and sustain itself.
Gradually reduce costs for underserved communities through scale and efficiency.
Reinvest in local economic initiatives, workforce development, and cultural preservation.
Capitalism can do more than just compete; it can also collaborate and innovate for shared value. My model seeks to harness these principles to align long-term profitability with community impact.
I’d love to hear your thoughts—how would you suggest balancing these goals in a way that doesn’t just compete but also creates lasting value?
OK, so after reading your post, my main and only thought was:
Why?
What is the point of what you hope to do? I'm going to turn your idea into swiss cheese here, so don't get offended - maybe it will let you consider other angles here.
1. Your timeline made me laugh out loud. No one on this board or their kids are going to be alive on this planet for your timeline of 100-200 years. Think about where this country was 200 years ago and compare it to now. Now, think about the acceleration of technology and imagine 200 years into the future. You are attempting to create the Roman Empire here, something that lasts into perpetuity, when today you're lucky if you can create something that lasts 20 years.
2. What is the societal value of driving down rents over time? The creation of some type of socialistic egalitarian society? It counteracts human nature, which is laziness, greediness, self-centeredness. Even in the nascent years of Communism, the idea was dead within 10 years; the Soviets only managed to recreate a society of oligarchs and peasants under the lip service of equality. The Chinese got a little smarter and have tried to overlay capitalism on top of it, unsuccessfully. Various other societies have more or less income and living inequality but none can counteract human nature, which is why some form of capitalism is inevitable.
3. Who is going to want to invest in a scheme of diminishing returns? You're talking about programs generally run by the government as the operator of last resort because no one else can make enough money to make it make sense. Where do you expect to receive the money to buy out your "partners" in these companies as you drive returns into the ground?
Overall, it sounds to me like you want to help the poor. If you want to help the poor, force them to learn financial management and get up and get to work. Better yet, accept the fact that there are always going to be the poor, and a good number of these people - especially in class-movable societies like the US - are going to be there because they aren't motivated enough to do anything further.
Why This Matters: A Cultural Heritage Endowment Leveraging Time for Economic Growth
The purpose of this initiative extends beyond creating affordable housing or financial returns—it’s about leveraging time, the most valuable resource, to create enduring cultural and economic value. This is a cultural heritage endeavor that integrates the principles of time, value creation, and sustainable growth.
Much like pension funds hedge risks by leveraging long-term investment horizons, this model uses time as a financial and strategic asset. By focusing on incremental growth over decades, it mitigates short-term volatility while building a foundation for sustained impact.
How This Model Works
Leveraging Time = Money Time is the ultimate hedge against risk. By spreading the investment horizon across decades, this initiative builds resilience into its model. Long-term planning allows for steady growth, compounding returns, and the flexibility to adapt to economic and societal changes. This isn’t about immediate affordability; it’s about creating a sustainable system that gradually reduces costs and increases accessibility through scale and efficiency.
Institutionalizing Cultural and Economic Value Similar to how pension funds and university endowments operate, this model institutionalizes cultural value. Real estate serves as the foundation, generating the income needed to reinvest in initiatives that preserve cultural heritage, create jobs, and support community growth.
Diversified Value Creation
Real Estate Portfolio: Profits from rental income, property flips, and value-add projects fuel the system.
Trade Development: Integrating businesses like plumbing companies creates a pipeline for stable, high-paying careers while addressing labor shortages.
Cultural Growth: Revenue is reinvested into programs that promote education, workforce development, and cultural preservation. This aligns with the principle that you earn 10% of the value you create.
Hedging Risk Through Long-Term Strategy Just as pension funds mitigate risk by diversifying and committing to long-term growth, this model spreads risk across various income streams and a timeline that prioritizes adaptability and stability. Time allows for adjustments, scaling, and reinvestment in ways that short-term projects simply can’t achieve.
You write well and it's obviously something of interest to you, but I still don't hear a "Why" in there. Speak to us as if we were 4th graders - why is creating this time model cultural heritage important? What do you hope to accomplish? End homelessness? Create an equal society? Transfer wealth from rich to poor? What is the point of this endeavor?
Thank you for your questions—they’ve really made me reflect on the core of why I’m doing this. The truth is, my “why” is simple.
I believe that income is derived from the principle that you earn 10% of the value you create. That idea has completely reframed my mission: to create as much value as possible, as rapidly as possible.
This organization is my vehicle for doing that. Its mission is to improve lives by lowering barriers to opportunity and creating systems that empower people to thrive. Value, to me, means improving other people’s quality of life, and this project allows me to impact as many people as possible in a meaningful way.
Why This Organization?
This organization has a history of creating real, lasting value. Its byproducts include over five churches and numerous community-building activities whose effects are still felt today. It’s uniquely positioned to partner with municipalities and other entities, helping them liquidate assets or solve challenges, which further accelerates its ability to make an impact.
At its core, the organization will focus on:
Creating Value: Through education, economic development, and cultural enrichment programs.
Providing Access: Lowering barriers to entry for community members who lack resources or skills.
Scaling Impact: Working with municipalities and businesses to amplify its reach and effectiveness.
Why Am I Really Doing This?
Honestly, part of it is personal. I want to prove to myself that I can take on something of this scale and succeed. But more importantly, it’s about building something bigger than myself—a system that empowers the community and leaves a legacy of impact.
This project isn’t just about restoring a historic site or running a program—it’s about creating a vehicle for change that allows others to succeed. Whether it’s through job creation, education, or simply providing a starting point for someone’s journey, the goal is to create opportunities that ripple through the community for generations.
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
You want to use flips to partially fund this venture - flips that will drive up housing prices => rents. Which you want to lower?
Logically, you can only drive down rents by:
1) Lowering the PRICE of housing: - How will you do that?
2) Subsidizing rents: - S8 and other programs statisitically only train tenants how to be dependent on the free handouts.
If you really want to make a difference, try basic financial education for tenants and the financial demographic they come from! - Can't tell you how many tenant background checks show they are buying lemon cars with 25% "we finance anyone" car loans that are designed to fail. - All they've got to learn is to save some of their income to pay their bills on time and they could then afford to buy a home.
Instead, they spend every penny they make on things they don't really need and then blame everyone else.
Take a look at a Class C or D tenant's bank statement to see the frivolous things they spend their money on and you'll better understand our society's biggest problem.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
1y
@Harrison Jones One of the major flaws in your perspective is that it is focused on cheap rent (driving rents down) not affordable housing. These are two different things. Affordable housing in not built by driving rents down, that probably will result in a slum like environment. Affordable housing is about the housing itself and the economic environment it is created in. I believe if people make money and there is sufficient housing supply, housing will become affordable.
You could start a PM company that handles subsidized housing program recipients primarily but I am not sure of the economics of that as it is not my specialty. I am not sure there would be enough margin in this to support your goal.
We know people are not lining up to accept section 8 so you could build housing targeting that group in some locations. You could build or flip less expensive units and sell them to your clients/occupants over time. However, the group you get money to do that from is either government grants or targeted charities because it isn't investors. You are trying to say you will use the " investors" to fund community programs, that sounds like a charity because there is no earning on the investment.
I think if the end result is affordable housing people need to be invested in their own housing otherwise a good percentage of the beneficiaries of your program won't care.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
1y
3 separate recent studies show it is currently cheaper to rent than own in virtually every large market and that it has never been more so than currently. This depicts rents are currently lowest ever as measured against the cost of ownership. The implication is to lower rents requires reducing the cost of ownership. Unless there is a recession/depression the rates are not falling appreciably. Without a recession/depression, housing prices are unlikely to fall appreciably. probably the best outcome is to reduce the cost of adding housing. Note ADUs do the opposite seeing that small units in small counts is very expensive development.
I see nothing in anything you have stated that addresses what i believe has to occur to accomplish your goal.
It is a lofty goal with no easy path to accomplishment, but what you describe seems unlikely to accomplish the goal.
Note most people on this site are RE investors. They do not want RE values to fall. Many/most new RE investors are relying on rent growth and appreciation to achieve their desired return. It is a path not without risk, but it is a common path in this market.
You want to use flips to partially fund this venture - flips that will drive up housing prices => rents. Which you want to lower?
Logically, you can only drive down rents by:
1) Lowering the PRICE of housing: - How will you do that?
2) Subsidizing rents: - S8 and other programs statisitically only train tenants how to be dependent on the free handouts.
If you really want to make a difference, try basic financial education for tenants and the financial demographic they come from! - Can't tell you how many tenant background checks show they are buying lemon cars with 25% "we finance anyone" car loans that are designed to fail. - All they've got to learn is to save some of their income to pay their bills on time and they could then afford to buy a home.
Instead, they spend every penny they make on things they don't really need and then blame everyone else.
Take a look at a Class C or D tenant's bank statement to see the frivolous things they spend their money on and you'll better understand our society's biggest problem.
Thank you for sharing your perspective—I completely agree with many of your points, and I’d like to clarify how our approach addresses some of the challenges you raised.
I’m currently working with local municipalities, some of which rely on S8 housing programs, and part of my mission is to create an entity that can hedge their risk while also offering a more holistic approach. For example, I’m currently assisting a municipality in purchasing a 200-unit complex that cash flows, ensuring long-term stability for their housing needs.
Our Program’s Unique Approach
Our organization is specifically geared toward the Native American population—a demographic that often faces significant systemic challenges. While statistics for this group aren’t always promising, one thing they deeply value is culture. By leveraging this cultural connection, we aim to create a vehicle that not only provides housing but also builds community and fosters growth.
Here’s how we approach it:
Acquiring Labor: The primary role of our units isn’t just to house individuals but to enable them to acquire stable labor opportunities. Once someone moves beyond the survival line, they tend to become more teachable and coachable, making financial education and other developmental programs more impactful.
Financial Education: Our organization is designed to provide financial literacy as a core program. For example, one of our first initiatives will be pageants aimed at fundraising and instilling healthy financial habits, bridging the gap between cultural activities and practical education.
Sustainable Cash Flow: Real estate remains a key component to fund our programs. With our current deal, we’re projecting around $5,000 in monthly cash flow if it closes as expected. This ensures that the operating costs of the buildings are covered over the long term, allowing the organization to focus on its broader mission.
Addressing Consumerism and Ignorance: I completely agree with your concerns about the overtly consumeristic nature of society. Much of the behavior we see stems from a lack of education or awareness. That’s why we’re so committed to bridging this gap through targeted programs that emphasize financial stability and healthy habits.
Why This Matters
This isn’t just about housing or education—it’s about creating a system that fosters sustainable growth. By addressing housing, labor, and financial literacy as interconnected needs, we aim to empower individuals to break cycles of poverty and dependency while preserving and celebrating their cultural heritage.
I’ve recently written a paper on consumerism and its effects, which aligns with much of what you’ve said. I’d love to share it if you’re interested—it might add some context to our approach.
You want to use flips to partially fund this venture - flips that will drive up housing prices => rents. Which you want to lower?
Logically, you can only drive down rents by:
1) Lowering the PRICE of housing: - How will you do that?
2) Subsidizing rents: - S8 and other programs statisitically only train tenants how to be dependent on the free handouts.
If you really want to make a difference, try basic financial education for tenants and the financial demographic they come from! - Can't tell you how many tenant background checks show they are buying lemon cars with 25% "we finance anyone" car loans that are designed to fail. - All they've got to learn is to save some of their income to pay their bills on time and they could then afford to buy a home.
Instead, they spend every penny they make on things they don't really need and then blame everyone else.
Take a look at a Class C or D tenant's bank statement to see the frivolous things they spend their money on and you'll better understand our society's biggest problem.
Thank you for the feedback—it’s clear this discussion has helped me better articulate my goals and address the disconnect between my vision and the typical investor mindset. Let me clarify a few points.
1. The Market Context:
The area I’m working in is not a large metro but a poorer region where issues like food insecurity affect 14–20% of the population. This isn’t about chasing high-growth markets; it’s about addressing systemic issues that impact quality of life and economic stability. Housing is just one part of the equation—our model aims to reduce housing costs by lowering ownership costs over time.
For example, many mom-and-pop landlords keep rents well below market rates (e.g., $600 vs. $1,200) because they aren’t forced into liquidation events that reset property values. Our model builds on this principle by creating a long-term vehicle that avoids rapid turnover and speculative price inflation.
2. Redefining Value Creation:
I understand the skepticism because my approach challenges the traditional real estate investment mindset. Many investors focus on short-term returns and rent growth, but my target investment vehicle is people.
By focusing on workforce development, education, and community stability, we’re creating a system where tenants and stakeholders benefit over decades.
The time horizon is long—70+ years—but the goal is to ensure sustainable growth and community value far beyond immediate profits.
3. Addressing Investor Concerns:
I absolutely recognize that investors need returns within a reasonable timeframe. That’s why our syndication model is designed to provide them with profits over the next 30 years while reinvesting in the community to ensure long-term stability. Beyond that point, the returns aren’t just monetary—they’re legacy-driven.
I find it surprising that some investors can’t see the value of this mission. It’s about more than short-term gains; it’s about creating a self-sustaining system that prevents the very liquidation events that drive rents up and communities out.
4. The Mission:
At its core, this isn’t just about housing or investments—it’s about completely rethinking how value is created. By using time as a key asset, we can ensure that:
Properties remain affordable and community-focused.
Tenants have access to education and workforce opportunities.
Investors receive steady returns without destabilizing the market.
To Summarize: This project isn’t conventional, and I don’t expect everyone to immediately align with the vision. But for those who do, it offers an opportunity to be part of something transformational—creating a model where real estate serves as a tool for building people, communities, and lasting value.
I’d love to hear from others who’ve worked on long-term, mission-driven projects. How did you balance the tension between short-term returns and long-term goals?
@Harrison Jones One of the major flaws in your perspective is that it is focused on cheap rent (driving rents down) not affordable housing. These are two different things. Affordable housing in not built by driving rents down, that probably will result in a slum like environment. Affordable housing is about the housing itself and the economic environment it is created in. I believe if people make money and there is sufficient housing supply, housing will become affordable.
You could start a PM company that handles subsidized housing program recipients primarily but I am not sure of the economics of that as it is not my specialty. I am not sure there would be enough margin in this to support your goal.
We know people are not lining up to accept section 8 so you could build housing targeting that group in some locations. You could build or flip less expensive units and sell them to your clients/occupants over time. However, the group you get money to do that from is either government grants or targeted charities because it isn't investors. You are trying to say you will use the " investors" to fund community programs, that sounds like a charity because there is no earning on the investment.
I think if the end result is affordable housing people need to be invested in their own housing otherwise a good percentage of the beneficiaries of your program won't care.
Thank you for your thoughtful feedback—it’s clear that I need to clarify the distinction between my approach and the traditional perception of “cheap rent.” Let me address a few points to better explain the goals and economics behind what I’m trying to achieve.
1. Affordable Housing vs. Cheap Rent:
You’re absolutely right—affordable housing and cheap rent are not the same, and my approach isn’t about simply driving rents down. Instead, it’s about creating a system where housing remains accessible and sustainable over the long term. Here’s how:
Efficiencies Through Scale: By owning and managing a portfolio of properties, we can control operating costs and avoid the rapid rent hikes caused by liquidation or speculative investors.
Economic Stability: Affordable housing becomes viable when tenants have steady incomes. Our model invests in workforce development and financial education to help tenants build a stronger financial foundation, ensuring housing remains both affordable and sustainable.
2. Aligning Investors With the Mission:
I understand the skepticism about involving investors in a mission-driven project. However, the structure isn’t about charity—it’s about balancing returns with long-term community impact.
Returns Through Cash Flow: Our real estate assets will cash flow, generating returns for investors over the first 20-30 years.
Reinvestment for Sustainability: A portion of the profits will be reinvested into community programs to create a more stable tenant base and reduce turnover.
Long-Term Value Creation: By focusing on economic development and housing stability, the portfolio grows in value over time, benefiting both the community and investors.
3. Subsidized Housing and Section 8:
You’re right that Section 8 and subsidized housing present economic challenges for landlords, which is why so many avoid it. However, part of our strategy is to build a property management company that specializes in working with subsidized housing programs. This creates a reliable framework for managing these units while aligning incentives with municipalities and other funding sources.
We’ve already implemented financial literacy programs, workforce training, and community-building activities to address the underlying challenges that tenants face. These programs aim to reduce dependency and build a more self-sufficient tenant base while fostering a sense of community.
