Nonprofits that provide housing for their clients are having a difficult time finding any residential properties to rent, much like everyone else. Costs have gone up considerably and there aren’t any affordable rentals available anywhere. The housing crisis in the US affects everyone, including nonprofits.
Rental prices continue to escalate because of the housing shortage, putting a strain on the budgets of all nonprofits. Purchasing multifamily properties and other residential rentals would be the best way to control availability for the clients of nonprofit organizations.
Creating a real estate investment fund would help raise the capital to purchase the properties. An investor who wants to do something good with their money will get a limited return on their investment while helping people with more affordable housing. An investment will not take away from a nonprofit's donations.
Why is a real investment fund the best option to fund this venture?
Continuous fundraising will help the fund purchase multiple buildings throughout the area where they are needed. The fund will be regulated by the government as a security. The fund would own, control, and manage these properties.
Nonprofits do not have to own or manage any real estate. They can spend their time and effort on what they do best. The properties will be professionally managed with an emphasis on reducing costs to provide savings to the tenants. All accounting will be handled by a real estate CPA. Unlike most real estate funds, the properties will be held and not sold to reap a profit.