Wednesday, July 2, 2014

Do You Sincerely Want to Become Rich?

"Champange Wishes and Cavier Dreams to you!"
"The Donald" Trump and family inherited $500 million dollars from his father, Fred, a low income developer in NYC, NY.
Non profit real estate developers are not so "non profit" after all.  They get oodles of cash from the government to provide low income housing for government "affordable" programs.  While one business entity may be non profit to secure financing and grants, other associated business units may be racking in the cash. Construction contracts, financing, leveraged tax deals can yield big profits while maintaining a "pure" appearance of a social good enterprise for the non profit developer.  

Not until you examine the amount of cash required to actually build low income housing and realize all the additional incentives and leverage, do you realize that this is a huge business opportunity to get rich!

For example Bridge Housing's recent Oakland project St Joes Family Apartments is similar to the Marinwood Village concept in that it is one, two  and three bedroom affordable family units.  This project averages $500,000 per apartment!  My best guess is that Marinwood Village will cost 4 to 5 times comparable Marinwood properties on a per square footage basis!

Someone must be pocketing alot of dough. It sure seems like a great way to get rich using "OPM- other people's money".  The taxpayers and citizens of Marinwood/Lucas Valley will pay for much of the Marinwood Village development cost and the financial impact to our community.  

For those interested in learn finance strategies of the "Rich and Famous" "non profit" developers, check out the link below.  It is a PHD thesis by a former Bridge Housing executive.

Champange dreams and cavier wishes to you.

You may become the next Donald Trump!

Thesis on Low Income Housing Tax Credit by former Bridge Housing Executive

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