Investor: Art F.
Investment Type: Multifamily
Total Funding: $50,000 in hand + $78,450 processing = $128,450
When Maryland Investor Art F. first started buying multifamily properties, he did so in a manner very similar to that employed by other investors getting started in the business: he found a good deal on a multifamily property that needed some work, purchased the property, then set about rehabbing it so that he could install tenants and start generating monthly cash flow.
However, Art did one thing very differently: he did not take out a loan in order to do the rehab and repairs. Instead, he made the state government pay for them!
“I went to the Worcester, Massachusetts website and found HOME (the Massachusetts HOME Investment Partnerships Program) and other grants for low income rental property,” Art said. The HOME program is a funding program for which investors are eligible (this is unusual because most state and federal funding is tailored to homeowners). Art talked to city officials within the program, wrote and submitted a proposal and shortly thereafter received a grant of $50,000.
“We expect to receive additional grants of $40,750 and $38,000,” he added gleefully, noting that his proposal scored third out of 22 submissions, thereby positioning him for the additional funding.
Art credited his success in gaining access to this money, which will enable him to rehab the property without taking out loans, to Chris Johnson’s grant funding guide and personal assistance with the proposal.
“I sent Chris a copy to review,” he recounted, adding that the materials in the course helped him achieve his proposal’s high score. “Thank you!” he concluded.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.