- Fundraising 91% 91%
- Property Acquisition 0% 0%
- Repairs & Upgrades 0% 0%
- Settling Refugee Family 0% 0%
- Refinancing 0% 0%
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Community – Initial Launch
A BOLD VISION
Our next project will be a single-family home in Philadelphia similar to our prior projects. We are seeking to raise $180,000 to fully cover 100% of the purchase and rehab of this home in cash without any financing or mortgage.
Once the project is complete, the house will be refinanced to pull out about $120,000. These funds will be used for down payments on two additional properties for a total of 3 homes.
Why not just raise enough for a down payment? Compound Impact has undergone a change in legal structure as we have more formally become a nonprofit organization. Because of this legal structure, we will need to own the first house outright before obtaining a mortgage (refinancing).
SO WHAT’S THE COMPOUND IMPACT?
Over time, all rental income profit will be used to support global missions abroad. Every 5 years, we will refinance the properties to access some of the equity value that has built up. These additional funds will be used to purchase additional properties which will be used in the same manner. Below are the projections for the impact of the original $180,000 based on the real results from our previous experience.
**Results based on assumptions that all built equity is used to purchase additional properties every 5 years, average family size is 5 people, and average length of stay is 1.5 years (though families may stay as long as they wish). Total property value refers to appraised value rather than equity.
These estimates are in line with the real results we have seen with our existing units. And it is important to note that this impact requires only a one time fundraising goal of $180,000 without any need for ongoing donations.
How are those gains possible? Many people are achieving these types of gains in their own personal real estate portfolios through careful property selection, experienced negotiation, and strategic value-addition with property rehab. We employ many of these same strategies. However, rather than personal wealth-building, our goals are standing beside our underserved refugee families and channeling global impact through grant-making.
Do you provide discounted rent? The number one issue for our refugee families is not that they are unable to pay for rent, but that no one will rent to them. Landlords typically require a background check, credit history, rental history, and proof of income, none of which a newly arrived refugee can provide. We make all of our homes available to this population that historically struggles significantly to find housing.
How involved is Compound Impact with the families? We have contact with every family to ensure that they are safely transitioned to their new home (often directly from the airport). However, we also partner with the 3 major refugee resettlement agencies in Philadelphia to navigate each family through the initial adjustment including orientation to the area, language-learning, finding employment, and navigating the school system.
What about maintenance costs? Before we purchase any property, we do an extensive analysis to ensure that the monthly rental income will be sufficient to cover all costs including the mortgage, taxes, insurance, monthly maintenance and repairs, and property management. Every property generates a profit even after these costs are accounted for, and this profit is used to make grants to other 501(c)3 charities working globally.
Will You Join Our Team?
We are excited to launch our next project and to multiply the impact over the years. And we are looking for a team to support us in raising this initial launch funding.
We are already $21,000 towards our $180,000 goal, but that means we still have a ways to go. Become one of our initial launch funders and watch your impact grow for decades!