Purchasing a charity

[Nathan Gesner]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $425,000
Cash invested: $90,000

The property consists of two residential units and a large bonus space that is used by MANNAHOUSE, a local 501(c)3 that distributes food to those in need. I bought the property specifically to ensure the MANNAHOUSE a free space to serve the community.

The two residential units will cover the costs of ownership, maintenance, and capex. No cash flow but I'm literally buying this as a charity.

What made you interested in investing in this type of deal?

I had been praying for an opportunity to give back to the community. We already donate to a lot of charities and our church, but we wanted something bigger that my business could "sponsor" and show the community that we're more than just a real estate office.

How did you find this deal and how did you negotiate it?

One of my renters passed away and had an entire pickup load of canned goods to donate. When MANNAHOUSE came to pick up the items, they mentioned their property was possibly going to sell and they would need to find a new place to operate their food pantry. I saw it as an opportunity to purchase the property and ensure the MANNAHOUSE could continue operating.

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

I am updating the main house with new roof, new windows, flooring, and converting it to a 4bed/3bath for a more modern layout. I am adding a private bathroom for the MANNAHOUSE (they previously had to use the main house). I'm also updating the electrical for the many refrigerators and freezers.

What was the outcome?

I closed on it two days ago, so this is too early to say.

Lessons learned? Challenges?

None. I feel God has made this come together smoothly and anticipate it will do well for all parties concerned.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Seller was represented by an attorney and I represented myself.