E573 - CFC - 100k to Invest - Is This The Solution To the Affordable Housing Crises?

Recession or not, America needs more Affordable Housing… However, when deals are getting harder to pencil out, can affordable deals make sense? To figure this out, I’m bringing on expert LIHTC Investor and Nashville native, Evan Holladay! <<>> Today, we discuss why affordable housing is so different from every other asset class and the key drivers of Evan’s success.  The problem is that the demand for housing in cities far outpaces the supply. Since it costs the same to build affordable housing as it does to build luxury class A, developers build the product type that will result in the highest NOI.  The only way to solve this problem in our current economy is for governments to incentivize developers to build affordable housing through various programs, such as Low-Income Tax Credits (LIHTC).  When deciding whether a deal works out, we tend to look at IRR and Cash-on-Cash returns.  However, in affordable housing, a deal works out if there are enough sources of capital to get the deal done because NOI is not what drives success.  LIHTC solves this problem by covering 40-70% of the development costs for developers.  However, that still leaves a significant portion of the capital to be found, which is where Evan’s attention to detail and creative people skills make all the difference! Tune in to hear how he has put together some of the most prominent projects in Nashville! Take Control, Hunter Thompson Resources mentioned in the episode: 1. Evan Holladay Website Podcast Interested in investing in ATMs? Check out our webinar.   Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors. Tired of scrambling for capital?  Check out our new FREE webinar -  How to Ensure You Never Scramble for Capital Again (The 3 Capital-Raising Secrets). Click Here to register.   CFC Podcast Facebook Group

Om Podcasten

Welcome to the Cash Flow Connections Real Estate Podcast. This podcast provides insights into the intricacies of commercial real estate investing through interviews with some of the leading investors, sponsors, and managers in the U.S. The program centers on cash flow focused asset classes such as mobile home parks, self-storage, multi-family, and office, but virtually all types of real estate transactions will be covered. The podcast is hosted by Hunter Thompson, founder of Cash Flow Connections and full-time real estate investor. Cash Flow Connections is a private equity firm that assists accredited investors achieve diversification though recession-resistant real estate.