EQUITY INSTEAD OF RENTS
Karl Dakin
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
RCI Community Funds (RCI) is planning to establish a series community investment funds to revitalize, catalyze, and impact selected communities. Its goal is to place funding strategically into real estate and local businesses to generate sustainable economic growth for underserved and economically distressed communities that have been ‘left behind.’
?We have adopted the word ‘disinvested’ which we think better describes the situations in which communities have found themselves. Other labels sometimes imply that the community did something wrong or is somehow responsible for where they are. We have found that larger macroeconomics plays a larger role while we intend to plant ‘economic seeds’ using a community fund that can grow and counter, offset, or ignore macroeconomics.
?One of the great faults of housing programs is that tenants have no opportunity to build wealth. A significant portion of every paycheck goes toward keeping a roof over one’s head. With rental, every month is a rerun of the prior month. If there is any interruption in income, the person living in the rental unit is at risk of being evicted.
?At the community level, every rental payment typically leaves the community to pay back whoever provided the investment dollars to construct the housing units. While this is fair, over time this results in reducing the wealth of the community. When a community first comes into existence, this exporting of wealth is not given much concern. However, a shift in markets, businesses, and jobs may leave a community ‘disinvested’ with every dollar exported contributing to the economic distress of the community.
?New housing ownership models work to create ownership in housing units which builds wealth in the community. In effect, a tenant is investing in their own home which is part of their total personal wealth.
?The Colorado Housing Accelerator Initiative is one example of these new housing models. Through its Tenant Equity Vehicle , the tenants in a building participate in the profits from the operation of the building (rents less expenses).
?In effect, tenants become ‘fractional owners’ of a building. By sharing in profits, the entire nature of affordable and workforce housing takes on a completely different look. Pride of ownership will result in a variety of improvements.
?Moving to shared ownership demonstrates a need for each building to earn sufficient revenue to pay all expenses. The building is a business. It cannot operate at a loss.
?Ownership in a building is illiquid with great difficulty in acquiring or selling rights. Additional issues are raised with buying or selling the building as a business and the impact of the transfer on tenants holding partial, minority ownership rights.
?Questions are raised as to who owns that portion of the building that is not owned by the tenants. Are these owners in alignment with needs and goals of the tenants. These owners may be private interests, a charity, or a government housing authority. Additional questions on how these owners are rewarded for investing in the buildings providing the upfront cash to buy and retrofit or new built housing units.
?RCI Community Funds plans within the deployment of money from a community investment fund to place a portion into residential real estate which will have an opportunity for tenants to gain ownership and build personal wealth. RCI is looking at models where the buildings are held within a business where tenants and external investors can have fractional ownership with each rent payment serving to buy a larger stake in the business.
??SEE OUR NEW WEBSITE
?RCI has established its website – https://www.rcicommunityfunds.com We will be adding to this site and adding information on our work and the work of others who are supporting community investment.
?JOIN OUR GROUP
?We have established a ‘Group’ on LinkedIn as a forum for discussion and sharing information on rebuilding communities - https://www.dhirubhai.net/groups/14502175/ .
We invite people who can team with us to become part of our community.
?CALL FOR COLLABORATION
?RCI is currently reaching out to people, organizations, and programs with whom its leadership team has worked to begin building a national collaboration of partners that can develop best funding practices, share knowledge, and accelerate community revitalization.
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Anyone interested in joining in this effort should contact:
Karl Dakin
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?COMMUNITY REVITALIZATION AT WORK – DETROIT, MICHIGAN – SIX DAY PROJECT
?The Six Day Project is Life Remodeled’s longest-running initiative designed to rejuvenate neighborhoods through an accelerated, high-impact approach in partnership with neighborhood residents. Over the course of just six days, more than 5,000 volunteers mobilize to clear blight and beautify a specific Detroit neighborhood. By tackling critical needs within the selected community, the project creates substantial physical, social, and economic improvements in a remarkably short time frame.
Key benefits of the Six Day Project:
1. Rapid transformation
One of the most compelling benefits of the Six Day Project is its ability to deliver rapid transformation. Six intense days instead of months or years to complete.
2. Enhanced community engagement
Community engagement and ownership with more than 5,000 volunteers from diverse backgrounds.
3. Economic stimulus
Community work is paired with renovating and repurposing a vacant school building into an opportunity hub.
4. Increased visibility and support
The concentrated nature draws significant media attention and public interest.
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5. Lasting impact
The impact is long-lasting enhancing the quality of life for residents.
?See the entire story at: https://www.clickondetroit.com/sponsored/2024/08/26/how-one-organization-is-remodeling-local-communities-with-rapid-high-impact-revitalization/
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?CALL FOR SUCCESS STORIES
?If you have a success story on community revitalization that you would like to share with others through this newsletter, please contact:
????????? Karl Dakin
????????? [email protected]
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?SHOW ON LINKEDIN LIVE
??Join Us for the Next LinkedIn Live Show of RCI Community Funds!
RCI Community Funds is excited to announce the launch of a series of community investment funds aimed at revitalizing selected underserved communities.
?You are invited:
??? Date: September 5, 2024, ?? Time: 8 a.m. MDT
?Register now to be part of our interactive audience:
?We have been experiencing some issues with people getting into the audience during the show.
?Here is the current workaround:
?Alternatively, you may watch the show on YouTube at:
?What to Expect: ??? Financial Activism
?Featuring Speakers:
Andrea Miller
?LAST THURSDAY, RCI Community Funds, Benefit LLC presented the Community Revitalization show. Our featured guest was Devin Thorpe of Super Crowd. An accomplished businessperson and entrepreneur, Devin founded Super Crowd to advocate for impact investing in small businesses using Reg CF investment crowdfunding. We talked about the positive impact of investing in small businesses that helps rebuild disinvested communities.
You may see a recording at:
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?RCI MANAGEMENT TEAM
?RCI is led by Stephen Shaff , Bill Huston , Jeff Dangremond , Aaron Shalom , and Karl Dakin , who collectively hold over 150 years of experience in community engagement, organization, and fundraising. For detailed information on the management team’s background, see here .
?The management team boasts a robust network of experts across various disciplines and leaders experienced in prior community revitalization and economic justice projects. This extensive network acts as a dynamic repository of knowledge, documentation, and financial data, serving as a foundation for the team's strategic planning and execution. Leveraging these connections, the team is uniquely positioned to implement a scalable proposed funding model with precision, drawing on proven strategies and insights from past successes.
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2 个月That's veary Caine of you karl Dakin good nest come from God heart and any good things you do it for people God will pay you for that because God never look what's in your pocket good all weas look what's in your head and is going to pay you for that so that's way is good to have good thinking and good planning for the people because you never know whair it will end so more love and respect to you karl Dakin best wishes to you and your family and friends ????????????????????????????
Founder of CrowdMax
2 个月Karl Dakin, this is a great article that brings to the forefront the difference between ownership equity and paying rent. In my early days of real estate investing my mentor told me that if you live somewhere, you are building wealth for someone if you are renting it, is the landlord. Real estate crowdfunding through Reg CF has the ability to change this paradigm in many urban communities that were not only disinvested, but legally prevented community members from purchasing homes by denying them home loans creating a structure for the legal plunder of these communities that persists to this day. New funding mechanisms like real estate crowdfunding will be needed to change this historical paradigm on the ground!
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
2 个月How can residents of a community invest in their community?