Latest / Earn Your Leisure / Cliff Notes: Mixed-Income Housing: A Solution for Closing the Wealth Gap?

Transcript

Cliff Notes: Mixed-Income Housing: A Solution for Closing the Wealth Gap? · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Is affordable housing from a developer perspective, just from a okay,
• 1:05
  Speaker 3: social perspective. Yeah, is it beneficial in closing the wealth gap?
• 1:10
  Speaker 4: Oh?
• 1:11
  Speaker 3: Or does it just keep status quo? You're doing a
• 1:14
  Speaker 3: good thing by providing service for people. Yeah, but I
• 1:18
  Speaker 3: just I don't know if that is something it's exactly
• 1:22
  Speaker 3: It's like welfare, right, Welfare is beneficial, yeah, assistance, yes,
• 1:26
  Speaker 3: but it's you're kind of staying at this level es right.
• 1:30
  Speaker 4: Yeah, you one hundred percent? Right.
• 1:31
  Speaker 5: So, affordable housing in the traditional sense most people think
• 1:34
  Speaker 5: it's Section eight, you know all of that stuff. But
• 1:36
  Speaker 5: if y'all notice, like, for the most part, I do
• 1:38
  Speaker 5: mixed income housing, so I have market right units and
• 1:41
  Speaker 5: pretty much all of my deals. It may be sixty
• 1:45
  Speaker 5: percent or seventy percent affordable, it maybe twenty percent market
• 1:48
  Speaker 5: And even affordability is at different levels. It's thirty percent
• 1:51
  Speaker 5: of the AMI, which is low income. At Section eight,
• 1:54
  Speaker 5: you got it at fifty sixty percent of the AMI,
• 1:57
  Speaker 5: which is typically your workforce, so you're barista at the
• 2:02
  Speaker 5: local coffee shop or your teacher, et cetera.
• 2:05
  Speaker 4: They live there as well.
• 2:06
  Speaker 5: But then the market rate folks that may be at
• 2:08
  Speaker 5: six figures plus are also in these buildings, our building
• 2:11
  Speaker 5: areas that are predominantly market rate. So like the Water
• 2:15
  Speaker 5: Street building that I'm putting up right now, it'll be
• 2:17
  Speaker 5: done really at the end of this month, but people
• 2:19
  Speaker 5: start moving in next month. That building right next door
• 2:22
  Speaker 5: is a ton of condos right across the street, a ton
• 2:24
  Speaker 5: of condos. There were fifty people on opposition every single
• 2:29
  Speaker 5: community meeting we have for that deal, because they didn't
• 2:32
  Speaker 5: want them around. They thought of like this negative stigma
• 2:35
  Speaker 5: of affordable housing. Again, what I'm doing is mixed income housing.
• 2:38
  Speaker 4: So like the.
• 2:39
  Speaker 5: People that are living in that condo can actually live
• 2:42
  Speaker 5: here too if they want to sell. Are kind of
• 2:43
  Speaker 5: a move and it's justice quality. So when you have
• 2:47
  Speaker 5: a mixed income in one group, that's where you have
• 2:51
  Speaker 5: the different levels of collaboration. It's kind of like Uel, right,
• 2:54
  Speaker 5: I think about investmentest there are people super low income,
• 2:57
  Speaker 5: there are people meeting income, and there are people extra
• 3:00
  Speaker 5: extremely high end QUO. That's the melting pot of success.
• 3:04
  Speaker 5: If you just continuously have affordability at this level and below,
• 3:08
  Speaker 5: we never get out of that because you never see,
• 3:10
  Speaker 5: you never learn, you never grow. Y'all are to live
• 3:12
  Speaker 5: an example of really the answer to your question. You
• 3:15
  Speaker 5: got to see something to believe in. And if you
• 3:17
  Speaker 5: just keep that concentration of poverty together, no, that is
• 3:21
  Speaker 5: nothing answer at though.
• 3:23
  Speaker 4: This is why you text me.
• 3:25
  Speaker 6: This is why you text me after the segment that
• 3:27
  Speaker 6: we were going back and forth on market. Mondays, that's right,
• 3:30
  Speaker 6: and I was trying to It's kind of like the
• 3:32
  Speaker 6: first thing is like, let's have our basic needs met
• 3:34
  Speaker 6: and then let's be inspired. So both I think both
• 3:38
  Speaker 6: both points are pretty valid. You did the mixed units,
• 3:41
  Speaker 6: but there's also different types of real estate that you're
• 3:45
  Speaker 6: invested in now, So let's talk about what the portfolio is.
• 3:48
  Speaker 4: Going to be looking like in the next five to
• 3:50
  Speaker 4: ten years.
• 3:51
  Speaker 5: Yeah, great question. U. Diversification from a geographic perspective a
• 3:55
  Speaker 5: kind of outline. But to your point, I'm looking at
• 3:57
  Speaker 5: other things. I think development and general right now is down.
• 4:01
  Speaker 5: Like real estate is cyclical. There's four cycles. Like we're
• 4:04
  Speaker 5: not in a good one right now. I won't say
• 4:06
  Speaker 5: not in a good one, We're just in one that's
• 4:08
  Speaker 5: historically like bad, right You just have to know what
• 4:11
  Speaker 5: to do within that cycle. So right now, what I'm
• 4:13
  Speaker 5: really looking at is multi family acquisitions, Like how do
• 4:18
  Speaker 5: I go, Yes, I got a couple thousand units on
• 4:20
  Speaker 5: my pipeline that I'm developing over the next eight to
• 4:24
  Speaker 5: ten I take a long time, but how do I
• 4:27
  Speaker 5: buy five thousand units? In the next five years acquisitions
• 4:31
  Speaker 5: you can buy that. Like literally the formula on the
• 4:34
  Speaker 5: commercial real estate side, again, it's simple, one hundred million dollars.
• 4:38
  Speaker 5: I'm getting seventy a debt. I need thirty million equity.
• 4:41
  Speaker 5: I need to bring three million to the table. So really,
• 4:45
  Speaker 5: through the various platforms and initiatives, we can start to
• 4:48
  Speaker 5: identify that three million so I could bring and find
• 4:50
  Speaker 5: it twenty seven that can then fund the one hundred
• 4:53
  Speaker 5: million dollar deal.
• 4:55
  Speaker 4: From an acquisition perspective, if I can.
• 4:58
  Speaker 5: Scale that up, it it's a level of balance, like
• 5:02
  Speaker 5: not just suffordability, because developers are very like asset rich
• 5:07
  Speaker 5: balance seats crazy, but like cash poor. I just said
• 5:10
  Speaker 5: it takes five hundred thousd to a million dollars a deal,
• 5:12
  Speaker 5: So if you got five of them things, no matter
• 5:14
  Speaker 5: how wealthy you are, at a certain point, it's like
• 5:15
  Speaker 5: my cash is low. But the thing about the value
• 5:19
  Speaker 5: asked stuff. I had a friend Venus, she bought a
• 5:22
  Speaker 5: deal right outside of Atlanta.
• 5:25
  Speaker 4: I think it was.
• 5:28
  Speaker 3: Four.
• 5:29
  Speaker 7: This episode is brought to you by P and C Bank.
• 5:32
  Speaker 7: A lot of people think podcasts about work are boring,
• 5:35
  Speaker 7: and sure they definitely can be, but understanding a professionals
• 5:39
  Speaker 7: routine shows us how they achieve their success, little by little,
• 5:43
  Speaker 7: day after day. It's like banking with P and C Bank.
• 5:47
  Speaker 7: It might seem boring to safe plan and make calculated
• 5:49
  Speaker 7: decisions with your bank, but keeping your money boring is
• 5:53
  Speaker 7: what helps you live or more happily fulfilled life. P
• 5:56
  Speaker 7: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
• 6:01
  Speaker 7: Boring since eighteen sixty five is a service mark of
• 6:04
  Speaker 7: the PNC Financial Service Group, Inc. P and C Bank
• 6:07
  Speaker 7: National Association Member FDIC Earners.
• 6:13
  Speaker 4: What's up?
• 6:13
  Speaker 7: You ever walk into a small business and everything just
• 6:16
  Speaker 7: works like The checkout is fast, the receipts are digital,
• 6:20
  Speaker 7: tipping is a breeze, and you're out the door before
• 6:23
  Speaker 7: the line even builds Odds are they're using Square? We
• 6:27
  Speaker 7: love supporting businesses that run on Square because it just
• 6:30
  Speaker 7: feels seamless. Whether it's a local coffee shop, a vendor
• 6:33
  Speaker 7: at a pop up market, or even one of our
• 6:35
  Speaker 7: merch partners. Square makes it easy for them to take payments,
• 6:39
  Speaker 7: manage inventory, and run their business with confidence, all from
• 6:43
  Speaker 7: one simple system. If you're a business owner or even
• 6:46
  Speaker 7: just thinking about launching something soon, Square is hands down
• 6:50
  Speaker 7: one of the best tools out there to help you start,
• 6:53
  Speaker 7: run and grow. It's not just about payments, it's about
• 6:56
  Speaker 7: giving you time back so you can focus on what
• 6:59
  Speaker 7: matters most ready. To see how Square can transform your business,
• 7:03
  Speaker 7: visit Square dot com backslash, go backslash eyl to learn
• 7:07
  Speaker 7: more that Square dot com backslash, go backslash eyl. Don't wait,
• 7:13
  Speaker 7: don't hesitate. Let's Square handle the back end so you
• 7:16
  Speaker 7: can keep pushing your vision forward.
• 7:20
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 7:23
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 7:27
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 7:32
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 7:36
  Speaker 1: some of the heinous migrant criminals caught because of President
• 7:39
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 7:43
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 7:48
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 7:51
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 7:55
  Speaker 1: are here illegally, your next you will be fined nearly
• 7:59
  Speaker 1: one thousand dollars a day. Imprisoned and deported, you will
• 8:03
  Speaker 1: never return. But if you register using our CBP home
• 8:06
  Speaker 1: app and leave now, you could be allowed to return legally.
• 8:10
  Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
• 8:15
  Speaker 1: border and families will.
• 8:17
  Speaker 2: Be protected sponsored by the United States Department of Homeland
• 8:19
  Speaker 2: Security forty million in twenty twenty one, and SODA for
• 8:22
  Speaker 2: one to twenty and like or twenty twenty twenty and
• 8:26
  Speaker 2: TOTA eighteen months later for like one twenty.
• 8:29
  Speaker 5: So you look at opportunities from a value a perspective
• 8:32
  Speaker 5: if you know how to underwrite them and look for
• 8:33
  Speaker 5: the right things. There's Class C and DP properties that
• 8:38
  Speaker 5: really need the same level care that some of these
• 8:41
  Speaker 5: new developments are getting. You go in, you put in
• 8:44
  Speaker 5: the rehab money, you go fix it up. Now it's
• 8:47
  Speaker 5: to be B plus a minus. Now you're cranking out
• 8:51
  Speaker 5: income equivalent to the new construction stuff that's out there
• 8:56
  Speaker 5: at a fraction of the costs. So the value here
• 8:59
  Speaker 5: is probably just less than the value there. But your
• 9:03
  Speaker 5: basis for getting in is here, so that spread is yours.
• 9:07
  Speaker 5: So I'm really looking at it from that perspective. From
• 9:10
  Speaker 5: a multi family acquisition play, developing some studios in Atlanta.
• 9:16
  Speaker 5: Hopefully by the time this comes out, I can make
• 9:18
  Speaker 5: a formal announcement, but two really really big you know,
• 9:23
  Speaker 5: partners in conversations with their industrial that was one of
• 9:27
  Speaker 5: the best asset classes in the pandemic across anything. I mean,
• 9:32
  Speaker 5: didn't matter, stocks, bonds, real estate don't matter. Industrial real
• 9:35
  Speaker 5: estate was toe to toe with anything else you put
• 9:39
  Speaker 5: up there. So when you look at that, it's like, Okay,
• 9:41
  Speaker 5: regardless of anything that's going on in capital markets, this
• 9:47
  Speaker 5: specific thing is booming. And for production in Atlanta, it's
• 9:52
  Speaker 5: the new Hollywood right like literally, it's the new Hollywood.
• 9:55
  Speaker 5: They have a thirty percent tax credit. If you do
• 9:59
  Speaker 5: one hundred million dollar production in Atlanta, you get thirty
• 10:02
  Speaker 5: million back.
• 10:04
  Speaker 4: That's why they're there.
• 10:06
  Speaker 5: So from a resident from a development perspective, my partner
• 10:10
  Speaker 5: is an Exbert and those guys they developed third Rail
• 10:13
  Speaker 5: Studios ended up selling it and whatnot. But the Rocks
• 10:18
  Speaker 5: movie Rampage was film there, Ozark was filmed there. Like
• 10:21
  Speaker 5: that's the quality of productions that will be coming out
• 10:22
  Speaker 5: of these studios. So studios, I think is a huge
• 10:25
  Speaker 5: opportunity in Atlanta. It'll get saturated in a little bit,
• 10:28
  Speaker 5: but right now, it's time to strike.
• 10:30
  Speaker 3: So what about the Choice Neighborhood Implementation grant?
• 10:35
  Speaker 4: It's that deal.
• 10:36
  Speaker 5: So that's that's the Birmingham man. That three hundred and
• 10:39
  Speaker 5: seventy million that they put it was from the federal government.
• 10:43
  Speaker 5: So last time we did a deep dive on tax credits,
• 10:45
  Speaker 5: but I think this time we should definitely highlight this fact.
• 10:50
  Speaker 4: I won a fifty million dollar grand granted.
• 10:52
  Speaker 5: Was a team but I when I did that interview
• 10:56
  Speaker 5: two and a half years ago, I didn't know I
• 10:58
  Speaker 5: could win a fifty million dollar grant. I had no
• 10:59
  Speaker 5: clue that there was a fifty million dollar grant exists
• 11:02
  Speaker 5: that Brandon Rule could be a part of. But now
• 11:05
  Speaker 5: it's like, oh, I do so the Choice Neighborhood Implementation
• 11:08
  Speaker 5: grant is that fifty out of the three seventy, it
• 11:11
  Speaker 5: was the highest one that got We got the biggest check.
• 11:14
  Speaker 5: Some people have fifty, some got forty, some got less.
• 11:17
  Speaker 5: But it allows you to redevelop these communities. And when
• 11:20
  Speaker 5: I talked about the capital stack earlier on the community
• 11:23
  Speaker 5: development side, the value is here, but the cost is here.
• 11:27
  Speaker 5: That fifty million plugs in that delta.
• 11:30
  Speaker 3: Where's the grant from the state federal Yeah, so that's
• 11:33
  Speaker 3: when Secretary of FUDGS came down, brought the check federal government.
• 11:37
  Speaker 4: Every year they put it out. They just actually announced.
• 11:40
  Speaker 5: Yesterday that they have I forget the exact number, but
• 11:43
  Speaker 5: they're putting out I think it was two hundred and
• 11:45
  Speaker 5: fifty or so million.
• 11:46
  Speaker 4: So how can people find grant information? Like how can
• 11:48
  Speaker 4: you even.
• 11:49
  Speaker 5: Google choice that specific one choice neighborhood implementation grant. They
• 11:54
  Speaker 5: have a planning grant too that cities typically go and
• 11:57
  Speaker 5: like that's such a five hundred thousand where they pay
• 12:00
  Speaker 5: different consultants to put together their plan.
• 12:02
  Speaker 4: But that fifty million is huge.
• 12:05
  Speaker 6: Yeah, I mean in relationships again, like you said, the
• 12:07
  Speaker 6: fact that the mayor knew the Secretary of HUD and
• 12:10
  Speaker 6: the fact that the Secretary of HUD looks like us.
• 12:13
  Speaker 4: Yeah, helps absolutely. In two years that might not be
• 12:17
  Speaker 4: the case. It's time to strike or at least learn
• 12:20
  Speaker 4: because in eight years it might be.
• 12:21
  Speaker 5: The case again exactly. But you'll be prepared once you
• 12:24
  Speaker 5: put yourself in that position. Like my preparation really is
• 12:27
  Speaker 5: what's manifesting itself into what we are starting to see today.
• 12:30
  Speaker 5: Like I if it wasn't for me doing those tax
• 12:33
  Speaker 5: created deals. I wouldn't be able to do this master
• 12:34
  Speaker 5: plan stuff, but I know how to do each individual deal.
• 12:38
  Speaker 5: So now when I'm putting together seven, it's like I
• 12:39
  Speaker 5: know how to do each individual one. But let me
• 12:41
  Speaker 5: put together the plan for the seven. Now I got
• 12:43
  Speaker 5: integral and partnerships here, it'll be able to help streamline
• 12:46
  Speaker 5: that process.
• 12:46
  Speaker 4: Compare yourself for the moment, that's right.
• 12:48
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 12:52
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 12:56
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 13:00
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 13:04
  Speaker 1: some of the heinous migrant criminals caught because of President
• 13:08
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 13:11
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 13:16
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 13:20
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 13:23
  Speaker 1: are here illegally, your next you will be fined nearly
• 13:27
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 13:31
  Speaker 1: never return. But if you register using our CBP home app,
• 13:35
  Speaker 1: and leave now. You could be allowed to return legally.
• 13:39
  Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
• 13:43
  Speaker 1: border and families will be protected.
• 13:46
  Speaker 2: Sponsored by the United States Department of Homeland Security,