At Equity & Help we believe in partnering with “Real Estate PhilanthroInvestors” – investors who want to help and give back to others while building their own capital. That’s actually where the name Equity & Help comes from: we are a company for people who want to build equity and who want to help others!
So how do we do that? We help deserving families by opening the doors to home ownership. Today’s families increasingly face obstacles that prevent them from owning a home of their own. We help them get around these obstacles by making home ownership more affordable. Families put a down payment of just $2,000 down on a home owned by one of our investors and purchase the home through financing from that same investor. For a small monthly fee, the family begins building equity in a home they will one day own outright. The family is also responsible for fixing up and improving the property.
But as amazing as this program is, it doesn’t just stop with the families. Our unique real estate investment program actually helps improve communities across America! Here’s how:
Improve Home Values By Reducing Neighborhood Blight
When a home is appraised, its value is calculated relative to similar homes around it. This is why very similar homes in different neighborhoods can sell for such wildly different prices! So in a community that suffers from neighborhood blight (abandoned or vacant properties), the home values of the surrounding properties are dragged down accordingly.
The properties we purchase to sell to our investors are all owned by banks. That means that many of these homes have been abandoned or have been sitting vacant for months, possibly years. So the families we place in the homes are usually taking over a property that needs a little TLC. And the families are happy to do the repairs and improvements because it’s a home they will one day own, not a rental property!
When neighborhood blight is reduced and repairs are made to neglected properties, everyone in the neighborhood benefits because home values increase. And as home values increase, homeowners usually gain equity in their homes and build their own wealth, too.
Homeownership Stabilizes Areas in Decline
When evaluating the overall health of a neighborhood, researchers, appraisers, Realtors, and investors alike look to the turnover rate in the area as one of the leading indicators of a community’s health. The turnover rate is a measure of how many people moved into and out of the neighborhood during a given time period. Higher rates of homeownership in the neighborhood tend to correlate with lower rates of turnover simply because homeowners tend to stay in their homes for much longer than renters. A report from the Center for Community Progress revealed that homeowners tend to live in their homes for an average of eleven years while renters typically stay for less than three years.
With our program, we want our families to stay for the long haul! Our program is structured so that families that are placed in homes will fully own their homes after a period of twenty years – which is longer than the average homeowner stays in their property. We believe in helping people achieve stability at home so that they can succeed and thrive in all areas of their life, rather than becoming stressed and preoccupied with where they’re going to be living next month.
Kids and Families Are More Stable
Aside from the economic value that comes from improving a community, there are also tangible social benefits as well, namely for the children. When families don’t have to move frequently and aren’t stressed with the prospect of having to find a new place to live when the rent goes up, kids attend school more consistently and do not need to change schools or districts. And children of homeowners are less likely to drop out of school than the children of renters.
Education is still widely regarded as the primary path for a person to raise their social status. People who are better educated tend to get better, higher-paying jobs. When kids are able to go to school consistently and keep up with the required curriculum, it increases their chances of not only graduating from high school, but going on to a college or vocational school to get the additional education they need to secure a good job for themselves. And when these kids grow up to become adults in the community with better, more stable jobs, it improves the community as a whole.
Communities Grow When People Invest in Where They Live
When people feel pride in where they live, they naturally want to invest in it. These investments start with the home, but eventually trickle out to the community around them. Homeowners start working with their neighbors to make improvements to their neighborhood. Then they start to attend city council meetings to vote on regulations that affect them. There, they meet other people in surrounding neighborhoods and accept invitations to join boards, church groups, book clubs, and adult recreation programs. And as they weave themselves more tightly into the fabric of where they live, they continue to invest and reinvest in the community they call home. This is how communities grow strong and Equity & Help is proud to be a part of it.
Want to partner with us to change lives and communities across America? Give us a call at (844) 552-8828 to set up a free consultation with one of our investment specialists!