Investments in our Project, for Profit, to privately subsidize homes for the Middle Class

Introduction to REICs or PEIG-IIs
Real Estate Investment Club(s) or Private Equity Investment Group(s) or Individual Investors

Dear Prospective Investor:

Do you make commercial or residential real estate investments? These plans have been painstakingly created and reorganized on an ongoing basis since late 2003. This is a "social enterprise", and as such is not a non-profit, but the eventual outcome of funds from multiple endeavors we may undertake, may provide the capacity for us to develop a non-profit to carry on our mission over time. (See our flowchart titled: "Stages of Organizational Development")

I am writing this for a couple of reasons, and would like the opportunity to speak with you, once you've had time to consider these words. The reason I'd like to speak with you, is because of your vast amount of real estate investment experience and the fact that my organization is looking for both investors to work with and talented individuals to eventually sit on the boards of directors.

In a nutshell, what our group is designed to do, is to work with investors and developers to create multi-income levels of housing, of which the sales of upper income housing will be used to privately finance the development and partial subsidization for the sales of housing for middle, moderate and lower income groups. The only part of the development we feel investors will be interested in participating in, is the first round of development, or the creation of homes for upper income earners, due to the level of return we expect real estate investors to want to realize.

There are many ways in which funding may be developed and tax credits realized for investors and shareowners in cooperative housing. (Please click here for more information). Initially, what we are looking for is "seed money", to get this venture started. Within a very short period thereafter, our expectation is to get a project on the ground, for which there is a lot of technical expertise available to our consortium. However, to obtain that financing and technical support we need to squeeze

To accomplish our goals and plans, we are working with bonded, insured and experienced architects, project planners, general contractors, consultants and qualified mentors. As to investors, we believe that the people who will want to invest the most will be the stakeholders and landowners. (This presents a dilemma, as it is preferable from the standpoint of offering shares, for our investors to be professionally adept at investing not just strong in support, because of the risk on the return of profit).

The way in which we are interested in working with real estate investors is to seek their participation to generate the first outlay of expense funds to pay for analysis of potential properties we might identify as a possible site for high density development. These expenses would cover costs incurred during phases of pre-development work (including both the discretionary permit process & subdivision approvals, as well as the different aspects of construction prior to the point where we might actually be selling the homes that are nearly finished. See Risk below)

We would otherwise be "pre-selling" units to buyers, to guarantee financing from a bank to create funds to pay our general contractor. On the other side of the equation, we anticipate being able to work with landowners, by partnering, so that their properties may be developed, and in doing so, help us to avoid the generation of, and outlay of funds for the properties before the units are sold. There is an option for consideration the landowners may be offered in return for partnering.

Investor funds of this nature would be paid back early on, according to our business plan, as the income to pay invested funds comes from the initial sales of homes built for upper income families in these mixed income developments, or upper income homes built on separate lots elsewhere. After the investors depart with their share (What percent return do you as an investor typically look for?), remaining profits received by our organization for sales of these homes, would be invested in the development of the homes for other income categories of buyers we develop homes for.

Risk: There is always the possibility that land we identify as ideal for our goals may not be able to meet our wishes, if there is obstruction from government or private groups that we may not be able to ameliorate to a successful degree, and on a timely basis. As I see it, depending upon the level of risk an investment club or private investor may be willing to make, any project start up funds provided to us would be subject to this risk, just like that any real estate investor/builder-developer is willing to take, in a fashion that might provide a valuable return of profit on their investment. At the same time, we would expect to utilize some of the profits to start the next round of development, and investors may be able to participate in those rounds.

While we are just beginning the search for potential investors, in lieu of identifying investors to work with, we would be interested in starting our own real estate investment club, for the same purposes. There is a lot of information developed on our website since late 2003, which may be viewed at www.prospectivehomeowners.com. You may download a business plan from there, which is always in a state of being updated, as is the website; when new information comes along that improves our ideas.

Please give me a call after you have read this, and let's start a mutually-beneficial discussion. I hope this idea is inspiring to you, so that we may speak. Please read our entire business plan, for more details on our overall direction. Feel free to download our business plan in Word format, and our financial projections in Excel format. Call me when you have questions. See our Presentation here.

NOTE: This is not an offer of an investment opportunity. This is only an request for a discussion of how an opportunity might be structured for the mutual benefit of an investor(s) and our organization(s).