Are you a commercial real estate investor that wants to give back to your city? Here is an option. Become a property investor that gives neighborhoods facelifts one building at a time. Here is what that looks like and how your contribution makes a difference.
Buying Property in Run-Down Neighborhoods
Buying property in run-down neighborhoods is cheap. In some cities, there are big tax breaks for buying properties in shabby parts of town. You have to promise to renovate these properties in ways that make these neighborhoods more attractive and better spaces in which to live. If that is already your intent, then the tax credit is a bonus on top of your intentions. See if such tax credits apply to properties near you and what kinds of properties are included. Start with these properties, regardless of what mess they are.
Secure a Commercial Real Estate Investment Loan
You are making a big investment by buying rough properties and turning them into usable living and business spaces. You can apply for and receive commercial real estate investment loans for all of the project properties you buy. The loans will help you accomplish your goal of renewing these neighborhoods and make them much nicer places to be. The interest on these loans would be part of the contribution of giving back to the community. Because you would pay the interest without making people in the community pay when they choose to work and live in these buildings and properties that you have purchased and renovated, you are giving even more back.
Buy the Property and Begin Working Closely With the Cities on These Properties
A lot of times, city planning commissioners want to be involved with any project where a real estate investor's goal is to renew a neighborhood. After you secure your loans and funding and purchase these properties, you should meet with the city planning commissioners to discuss how you will give these buildings a facelift. Getting their approval helps back your plans and encourages a working relationship for future charity projects.
Offer Reduced Rent or Low Rent on the Properties
Once these properties and the buildings on them have been fully renewed, renovated, and updated, you can give even more back to the community by offering space in the buildings for reduced or lower rent. Considering the neighborhoods in which these buildings will be fixed, offering a lower rent for space in the updated buildings helps everyone living and working there. It may even encourage some local residents to start businesses because you have made the rent so affordable and reasonable.Share