All Forum Posts by: Kathy Utiss

A non-profit organization that donates to projects with the goal of building net worth for individuals, investors, and corporations is taking an unconventional and philanthropic approach. This model suggests a commitment to contributing to the financial well-being and success of various stakeholders. Here are some considerations and potential aspects associated with this unique funding approach:

1. Individual Empowerment:

• The non-profit's focus on building net worth for individuals implies a commitment to empowering people economically.
• Initiatives may include financial education, homeownership programs, entrepreneurship support, or other projects that directly enhance the financial standing of individuals.

2. Investor and Corporate Impact:

• Donating to projects that benefit investors and corporations may involve supporting economic development, business initiatives, or investment opportunities.  Collaboration with investors and corporations could lead to projects that stimulate economic growth, create job opportunities, or support sustainable business practices.

3. Economic Development:

• The non-profit's initiatives may contribute to broader economic development by fostering wealth creation, job creation, and financial stability for individuals, businesses, and the community.

4. Community Partnerships:

• Collaborating with investors, corporations, and the community can create synergies that enhance the impact of projects. Partnerships may involve shared resources, expertise, and a collective commitment to positive outcomes.

5. Philanthropic Innovation:

• The unique nature of the non-profit's funding model suggests an innovative approach to philanthropy. It may involve exploring creative solutions to address economic challenges and contribute to financial empowerment.

6. Sustainable Impact:

• Assessing the long-term impact of the funded projects is essential. Sustainable initiatives that lead to lasting positive changes in net worth align with the non-profit's goals.

7. Financial Literacy and Inclusion:

• The non-profit may incorporate financial literacy programs to ensure that individuals, investors, and corporations have the knowledge and tools to make informed financial decisions.

8. Transparency and Accountability:

• Clear communication about how donated funds are used, the impact of projects, and the specific goals of building net worth for different stakeholders is crucial for transparency and accountability.

9. Legal Compliance:

• Ensure compliance with all relevant legal and regulatory requirements associated with non-profit activities, especially when collaborating with investors and corporations.

10. Evaluation Mechanisms:

• Implementing monitoring and evaluation mechanisms helps assess the effectiveness of projects and allows for adjustments to optimize impact over time.

While the traditional role of non-profits is often associated with providing charitable assistance, this model explores the potential for philanthropy to directly contribute to economic growth and financial well-being across various sectors. As with any innovative approach, success depends on effective implementation, clear communication, and ongoing evaluation of outcomes.

Sounds like she would be a good candidate to get a reverse mortgage. Or a deferred mortgage if not of age to receive the reverse. Although, the deferred mortgage would probably be more cost effective.  There are other assets that can be created to help her build her net worth with the cash without the house. Then if anything ever happens she can buy a house then. She can make good returns without risk with the right people.  There are many knowledgeable people whose posts are worth reading here. 

I would see about putting it into a multifamily. As you can go up to a 4/plex for 3.5% down. You could even do them as new builds. That is if you go FHA. I know of a hotel you can get owner financing on with $250,000 down. Then net a minimum of $178,000 a year on it. It's not the ritz. But the terms and insured income would let you continue to build your net worth.

The more liquid you can keep your funds the better. I think you'll find better returns with the real estate. Sometimes you can put 50% down in this environment and still be told you need to bring cash to the table! That's why it's important who you actually set yourself up with to bring  value to your projects. As some lenders will not only want the property to qualify income wise. They will also want to see that you can afford it with the income you make without the income from the purchase. Besides so many costs. Which is why we developed Ending Homelessness. 

As we donate most of the income we could make to building others net worth. We've been thru the hoopla of oh I can perform! Yet I know of no lender who insures the debt they create against default at origination. By doing such you set your self up for continual performance even if negative happens beyond one's control! There are forms of collateral enhancement and partnerships that can set such up such things.

She would have to qualify for a new mortgage on her own without the husband. If it goes to foreclosure she will have a hard time getting a new place to live. If she is financially stable it shouldn't be that hard. 

Owner is willing to assist with financing property is free and clear. I started a nonprofit we'd prefer a premium finance loan. As my biz associate is able to donate the income he would make to our project. We then have a bank to loan against the IUL he would issue. Just not sure best way to go anymore as one lender has tried to effectively help me. But they want $100,000 cash. I have cross collateral but not cash. So not sure if anyone would help with a refinance? Maybe a DSCR Loan as it comes in at 1.40. On the lowest income. I know the numbers are not the best. I would be looking to do it as a restructuring of the property with section 8 income. Or we'd be willing to help him with investors to buy shares.

In St. Louis I hear Faster House gets rave reviews...Although, they will want good credit and about $10,000

Netronline.com will let anyone find out what information is available thru county offices nationally. Not all counties are available. Some charge a fee. It may be good to see who the lender is before the sale. Maybe, the note could be purchased. There are also newspapers that publish upcoming sales. Their subscriptions can sometimes be expensive.Sometimes if you know who the trustees are they publish sales on their website. Or list the status of upcoming properties. If the note can be purchased you can also ask to see the credit bureau. Possibly even the notes of what has brought the homeowner to foreclosure. It's good to know the parameters. Sometimes homeowners are forced into bankruptcy. So it's good to find out about such things via Pacer. 

Depending on who you work with they may allow you to pull your own credit then provide it to them. They may have a specific provider for you to utilize. They may offer a free trial as well with that service. Talk to the funds provider. Fannie Mae will do a four unit as they will a regular home. Depending on qualifying factors you could live in one unit and rent out three and get 75% of the income to qualify for the three units. Who knows maybe you could rent out each room in the unit to individual people. There are a lot of professionals that utilize such services. Especially, traveling nurses and doctors. This is usually done at 3.5% down. It is true about wanting the proof of income. But maybe a 24 month bridge lender would work. If your going to tackle trying to do three back to back I think this would simplify it. Why go thru triple the costs and work? 

You can also check online to see if the particular county you are buying in is online for free before you spend money on a title search. Netronline.com is a good search tool that allows this. Then depending on the outcome order title as necessary. Another thing to check for if your in research mode is if the homeowner could be in bankruptcy thru google maybe a pacer search. As rarely are fed records recorded in county offices. 

Shenell, 

It's great to hear someone may actually understand what we're trying to accomplish. We're still waiting for the owners bank to let us know if they'll actually help us or not. Or if we'll have to find someone else to assist us. We've thought about trying to sell off each unit. Then try to figure out if its best to have their funds go to a CRT or if we as a nonprofit can create a 403(b) plan for the investors. All input in this realm would be greatly appreciated. Here is a presentation I made describing the benefit of doing such vs a regular investment.