How You Can Help Fix Affordable Housing in America

Let’s fix affordable housing in America together. Every day across country, individuals and families are looking for clean, safe houses and apartments that are affordable, a term the U.S. Department of Housing and Urban Development defines as “housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities.”

Homes that are affordable are a necessary and tangible asset for any adult or family to survive and thrive, but there simply aren’t enough of them to go around. So what can we do to help fix affordable housing in America?

Our Founder, Eddie Lorin, affordable housing preservationist, impact investor, and an Official Member of the Forbes Real Estate Council, explains to Forbes readers some ways we can help, and potentially earn financial returns along the way.

Go to Forbes Article –>>

 

Impact at USC’s Price School of Social Innovation Annual Summit

USC’s Price School of Social Innovation’s Annual Summit Sponsored by Eddie and Jane Lorin https://www.uscsocialinnovationsummit.com

Eddie and Jane Lorin sponsored USC’s Price School of Social Innovation’s Annual Summit held Friday, April 27, 2018. Over 150 people in attendance included city agencies and key stakeholders in Los Angeles  covering non-profits providing services, Foundations, Donors, Developers and Educators. The agenda included panels titled “Housing the Workforce,” “Innovations to Increase the Affordable Housing Stock” and “Innovations to House the Homeless.”

The attendees broke into 15 groups in a workshop format to brainstorm solutions given 3 case studies. The format of the summit promoted great collaboration and a positive experience was enjoyed by all.

At the all day event, Lorin announced the first “NOAH” project (Naturally Occurring Affordable Housing) in conjunction with the City of Los Angeles which will take an existing 1920s apartment building in the East Hollywood district of Los Angeles and deem 50% of the property affordable in exchange for a property tax abatement.

These affordable units are anticipated to be reserved for supportive housing for the homeless with services and social work provided by the 20 year old non profit People Concern http://www.thepeopleconcern.org,  Health and Wellness programming on site at the property will be provided by the non-profit HAPI (Healthy Apartment Property Initiative founded in 2013 by the Lorins) which focuses on food insecurity and education https://www.hapiapts.org.

NOAH is an innovative concept Lorin proposed to the Los Angeles Housing + Community Investment Department (HCIDLA) in 2016 in order to pilot a Public/Private Impact Investment to provide another unique solution to the housing crisis.

By purchasing existing assets and deeming them affordable, the NIMBY (not in my backyard) deterrent to new development is eliminated along with the purchase of existing older properties costs as low as 40% of the replacement cost to build new. Lorin says he is pleased to be the first to launch this concept because “it just makes common sense.” Housing can be relatively immediate versus the 3 years it takes to build new.

 

Jane and Eddie Lorin are relentless in their pursuit to create new innovations to solve the housing crisis like NOAH. They have also sponsored the “Jane and Eddie Lorin Fellowship for innovative low income housing solutions” at USC’s Price School. The Fellowship will promote a competition for the most creative and inventive ideas for affordable housing.

Impact Insider: Meet Eddie Lorin, Impact Real Estate Investor and Entrepreneur

Last week we detailed the impressive track record of our Sponsor, Strategic Realty Holdings (SRH). This week we’re here to unveil the visionary and leader behind all that success – Eddie Lorin, its Founder.

Eddie is a 30-year real estate veteran, an expert in value-add multifamily, a proven social impact real estate investor and a champion of safe, affordable housing for all Americans. Since 2001, his team has successfully purchased and transformed more than $3 Billion worth of multifamily real estate (acting as either Principal or Advisor) amounting to more than 180 communities with approximately 40,000 apartment units nationwide.

Eddie, since a young age, has been a dreamer, a doer and a proponent of the underdog. As one of four boys raised by a single mother in Southern California, Eddie grew up with modest means in an apartment community not dissimilar from the neglected communities he now purchases and revitalizes. Eddie believes that affordable housing should not be a privilege for the wealthy, but rather a right for everyone. He made it his life mission to make safe, quality housing affordable and accessible to all Americans.

Longtime impact investors and philanthropists, Eddie and his lovely wife Jane founded Healthy Apartment Property Initiative (HAPI), a 501C3 non-profit in 2013 that “builds community through health” by bringing health-related education, fitness, gardening, and nutrition programs directly to the doorsteps of residents living in lower income apartment communities. Hapi offers efficient, low-cost, high-reward customized programming to cater to each specific community’s needs, whether it is a senior, toddler, or school age population. Hapi programming is a key ingredient in the performance of SRH and Impact Housing REIT’s properties and delivery of ‘triple bottom line’ returns to investors.

As an impact real estate expert, Eddie has featured on and interviewed by leading industry experts and media including Cashflow Ninja w/ M.C. Laubscher, Wealth Formula w/ Buck Joffrey, The Sure Investing Podcast, Michael Blank’s Apartment Building Investing Podcast, Best Ever Real Estate Investing Advice w/ Joe Fairless, Wheelbarrow Profits w/ Jake & Gino, Take a Knee w/ Adam Carolla, Flipping America, American Dream TV and more.

Eddie is a member of the Mission Investors Exchange, SOCAP, National Multifamily Housing Council, National Apartment Association, and Jewish Funders Network. Most recently, he became an Official Member of the Forbes Real Estate Council and will soon be a Contributor to Forbes.

Want to hear more from Eddie? Say hello anytime on LinkedIn or via email at elorin@strategicrh.com. He would love to hear from you.

Impact Insider: Track Record Matters, See How SRH Performed

In the world of investing, managing investor capital is a BIG deal. Whether you’re deploying dollars across several investments, asset classes or just one, it’s important to know who you’re investing with and what they’ve done in the past. The team behind Impact Housing REIT is our Sponsor, SRH or Strategic Realty Holdings.

Here at SRH, we talk a lot about ‘transforming’ communities. Over the past decade, our team has acquired and transformed 72 communities across the country.

So what does that mean, exactly?

To our residents, it means fresh paint, new signage, new fitness equipment, upgraded interiors and exteriors, and so much more.

Transforming communities in this way has helped us achieve positive results for investors. Of those 72 properties, 40 have completed their full investment cycle from acquisition to renovation to lease-up to sale. Below is a chart detailing what those transformations mean to investors in terms of return.

*PAST PERFORMANCE DOES NOT GUARANTY FUTURE RESULTS. **Projects Six and Nine each included two properties, of which one property in each project sold.

For detail on SRH recent transactions, click here.

Stay tuned for next week’s deep dive into the visionary and performer behind our Sponsor’s great success.

What is Impact Investing?

Often called a “double bottom line” investment, impact investing enables investors to put their money to good use in meaningful, intelligent ventures that provide both a financial AND a social return on their investment.

READ MORE

Impact Housing REIT, LLC.
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A reservation is not an investment. A reservation is non-binding and you will need to confirm your reservation when Impact Housing REIT, LLC offering is live to invest. By making a reservation, you are requesting an allocation in Impact Housing REIT's upcoming offering. A copy of the Preliminary Offering Circular may be obtained here. A reservation is non-binding and you may change the amount at any time. Reservations may be accepted in whole, or in part, or not at all by Impact Housing REIT. If granted, you will be asked to confirm your investment once Impact Housing REIT's offering has been qualified by applicable authorities and the fundraise has officially begun.


Disclaimer
Impact Housing REIT, LLC will invest in multifamily properties, income-producing real estate, a market that may produce returns that are different than the returns an investor could expect from other markets, including the stock market. Before our Sponsor receives anything, investors are entitled to a 7% annual return on their investment. Note: There is no guaranty that investors will receive any return on their investment, or get their capital back. In the last 5 years, the Sponsor has completed 28 projects (totaling 40 multifamily properties) which have achieved an average annual cash on cash return of 8.55% and an average project IRR of 24.74%. For more information about the Sponsor’s track record, see the Offering Circular, here. However, Impact Housing REIT, LLC is itself a newly formed company with no historical data of returns, and there is no assurance that it will achieve comparable success. The results that the Sponsor has achieved in the past do not guaranty that it will achieve similar results in the future. Like any investment, there is the potential to lose some or all of your investment. The ability to make distributions will depend on the availability of cash flow each quarter. There is no guarantee that we will be able to make a distribution in any given quarter. For a list of the most significant risks, click here.
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Under Contract: Maryland
* Highrise with spectacular views
* Twelve Floors, 143 Units
* Built in 1969
* Strong 96% Occupancy
* Naturally Occurring Affordable Housing
* RUBS / Water Conservation Potential
* Purchase Price: $7m to $8m
*Note that this property may or may not ultimately close escrow subject to due diligence and other various factors. Impact Housing REIT cannot guarantee that this specific property will end up being one of the multiple assets owned by the fund.
Target: Colorado Springs
* Mountain views
* Near commercial district
* 64 Units
* Built in 1967
* New roofs recently installed
* Units currently renting below market
* Purchase Price: $5m to $6m
*Note that this property may or may not ultimately close escrow subject to due diligence and other various factors. Impact Housing REIT cannot guarantee that this specific property will end up being one of the multiple assets owned by the fund.
Target: Mesquite, Texas
* Strong submarket: 96% Occupancy
* Located in suburb just outside of Dallas
* Multifamily, 190 Units
* Built in 1959 -1972
* New roofs recently installed
* Renting at 25% - 50% below market
* Purchase Price: $8m to $9m
*Note that this property may or may not ultimately close escrow subject to due diligence and other various factors. Impact Housing REIT cannot guarantee that this specific property will end up being one of the multiple assets owned by the fund.
Disclaimer
Impact Housing REIT investments are expected to be spread throughout the United States. The Manager expects Impact Housing REIT’s investment portfolio to consist of direct equity interests in individual properties. The Manager will generally target equity investments ranging from approximately $3 million to $10 million. Note that these properties may or may not ultimately close escrow subject to due diligence and other various factors. Impact Housing REIT cannot guarantee that these specific properties will end up being one of the multiple assets owned by the fund or that investors will receive any return on their investment, or get their capital back. In the last 5 years, the Sponsor has completed 28 projects (totaling 40 multifamily properties) which have achieved an average annual cash on cash return of 8.55% and an average project IRR of 24.74%. Past performance cannot guaranty future results. For information on our Sponsor’s track record, see the Offering Circular, here.