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Wealth Formula with Buck Joffrey: Make an Impact and Make a Profit with Eddie Lorin

Buck Joffrey’s Wealth Formula Podcast and Eddie Lorin discusses the social and economic impact of real estate investing. A podcaster, best selling financial author, real asset investor, and board certified surgeon,  Buck’s Wealth Formula is about the overworked but well paid individual looking for a better life. The purpose of the  podcast, and all of the work they do is to help hard working professionals gain core competence in real asset investing and to create a community of like-minded individuals. Through a strong foundation of financial education, Wealth Formula advocate the use of entrepreneurship to generate money which, in turn, works to create a cycle of perpetual wealth.

Listen Now ->

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Take A Knee with Adam Carolla: Affordable Housing in America with Eddie Lorin

Eddie speaks with Adam Carolla on ‘Take a Knee’ about the challenges facing low-income families and the unrealistic expectations we have regarding the government’s role in solving the problem. Adam and Eddie discuss the capitalistic solution to the lack of supply of low-income housing, that is, giving investors an economic incentive to help solve the problem. Eddie and Adam then chat about found memories on the construction site and how insane it is that “Union guys” get paid so much to do so little.

Watch below!

Going All In: Dispatch from the Mission Investors Exchange Conference – Eddie Lorin

Article Source: Jewish Funders Network Blog

Doing well by doing good! The Mission Investors Exchange conference in Baltimore provided incredible hope and promise for a new tomorrow with over 500 of the nation’s top Impact Investors there to learn how philanthropy meets investment.

Darren Walker, president of the Ford Foundation, pledged that it is time for their “95% money” to start acting like the rest of their mission expenditures by going all in with 100% of their assets in Impact and Mission Oriented Investments. This is clearly a historic movement that he hopes will be an example to all Foundations to rethink their stock and bond portfolios and the meaning associated with them. “The time has come to innovate and create new products to serve the extraordinary interest in Impact Investing today.”

In today’s extremely competitive real estate environment, finding a solid, acceptable yield that makes both a social and financial impact is challenging at the least and downright daunting in most instances. The question is whether the financial professionals and their credit/investment committees are ready to take that lower yield in exchange for measured, social results. Is the difference worth 200 or 300 basis points between the proverbial low teens net yield and the yield associated with a true impact investment? Of course if an “Impact Investment” return is comparable to a market investment, then one must question if that investment has any true, measurable impact.

I can tell you as an active fund manager in the nationwide preservation of affordable housing, the competition to acquire buildings most difficult to match is in the form of either investors who project spending little (if any) in capital improvements (to maximize cash flow) or those who plan to displace these affordable residents by petitioning to remove the rental restrictions and bring the apartment community back to market rental rate returns. Either way, these affordable residents suffer by either living in potentially substandard conditions or being forced to find another affordable home where a massive shortage of housing stock undoubtedly already exists.

Most affordable assets were built using governmental or tax credit subsidies that expire for the original investor/developers of these assets after 15 years and the rent restrictions usually last anywhere from an additional 15 to 40 years unless a new buyer petitions to remove them. When a buyer chooses to keep restrictions in place, as we do, the rental upside is limited and capital improvement investments are usually not rewarded enough to justify a market rate investment. When you add to that social impact programming the gap clearly widens between a market return and a verifiable impact one. We acquire assets and implement a significant capital expenditure plan that starts from the street on the exteriors and ends inside each dwelling unit resulting in a completely refreshed property. Further enhancing our residents’ experience, we implement Health and Wellness through our 501C HAPI Foundation in the form of health screening, programming and after school education.

It is critical that the fund manager have specific, measurable reporting standards proving the social impact (and not just financial returns) provided to make sure this potentially lower return is substantially documented.

For Jewish philanthropists looking to get started with Impact Investing, a good place to start is the new Jewish Funders Network edition of the Guide to Program Related Investments by Mission Investors Exchange. It offers a broad range of practical information that Jewish philanthropists need to bring PRIs and other Mission Related Impact Investments into their work. It also contextualizes that information within the Jewish community, thanks to valuable additions to MIE’s work by Yigal Kerszenbaum from The Rockefeller Foundation.

Doing well financially by doing good! Just imagine if Darren Walker ’s pledge is followed by the major Foundations in this country and significant capital is funneled into impact investments. This movement will truly help change and heal the world. Look out bond traders!

Eddie Lorin is Co-Founder of HAPI Foundation and the Alliant Strategic Preservation family of funds in Woodland Hills, CA. He can be reached at 818-472-5666.

To view the original article, click here.

Date published: 5 – 19 – 2016

Impact Housing REIT, LLC.
$1,000
Minimum
Quarterly
Dividend
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.