Why Affordable Housing is a Hidden Gem in Real Estate Investing | Summary and Q&A

16.2K views
February 7, 2023
by
Earn Your Leisure
YouTube video player
Why Affordable Housing is a Hidden Gem in Real Estate Investing

TL;DR

Real estate developer discusses the financial mechanisms and importance of collaboration in affordable housing development, as well as the role of the New York Real Estate Chamber (nyrek).

Install to Summarize YouTube Videos and Get Transcripts

Key Insights

  • 🖐️ Subsidies from the city, including capital and rental subsidies, play a crucial role in making affordable housing projects financially viable.
  • 🇦🇪 Affordable housing buildings typically require a percentage of units to be affordable, ensuring a mix of affordable and market-rate housing.
  • 🛟 The New York Real Estate Chamber (nyrek) serves as an important organization advocating for diverse developers and increasing access to economic opportunities.
  • 😉 Collaboration among developers, even those who may be perceived as competitors, is crucial for winning projects and creating successful developments.
  • 😜 Nyrek aims to share knowledge and collaborate to grow the ranks of diverse developers and replicate their success on a national level.
  • 🧚 The organization also works to advocate for fair economic opportunities and ensuring marginalized developers receive a fair share of the economic pie.
  • 🥺 Collaboration allows developers to take on larger projects and secure partnerships, leading to more successful and impactful developments.

Transcript

yeah so let me ask you this because you're still a business man and you're in to make money right so when you're doing these projects and 50 of the housing is going to a low or middle income or you just talked about where you can buy in this based off of your income so how are you making money off of this the the city gives you subsidies to subsidi... Read More

Questions & Answers

Q: How do developers make money from affordable housing projects that receive subsidies?

Developers receive subsidies from the city to offset the gap between the actual development costs and the limited capital a project can support. Additionally, developer fees are included in the budget, allowing them to make money while creating affordable housing.

Q: What percentage of affordable housing units are typically required in a building?

The percentage of affordable housing units can vary, but some projects may require around 20-30% of the units to be designated as affordable.

Q: What is the role of the New York Real Estate Chamber (nyrek)?

Nyrek serves as an advocacy group for diverse developers in New York State, working towards increasing access to economic opportunity and capital for marginalized developers. It aims to collaborate and share knowledge to grow the ranks of diverse developers.

Q: Is there a plan to expand nyrek on a national level?

Yes, the developer expresses the desire to expand nyrek's model of collaboration and advocacy on a national level, allowing minorities and women to take advantage of the housing opportunity across the country.

Q: How do developers make money from affordable housing projects that receive subsidies?

Developers receive subsidies from the city to offset the gap between the actual development costs and the limited capital a project can support. Additionally, developer fees are included in the budget, allowing them to make money while creating affordable housing.

More Insights

  • Subsidies from the city, including capital and rental subsidies, play a crucial role in making affordable housing projects financially viable.

  • Affordable housing buildings typically require a percentage of units to be affordable, ensuring a mix of affordable and market-rate housing.

  • The New York Real Estate Chamber (nyrek) serves as an important organization advocating for diverse developers and increasing access to economic opportunities.

  • Collaboration among developers, even those who may be perceived as competitors, is crucial for winning projects and creating successful developments.

  • Nyrek aims to share knowledge and collaborate to grow the ranks of diverse developers and replicate their success on a national level.

  • The organization also works to advocate for fair economic opportunities and ensuring marginalized developers receive a fair share of the economic pie.

  • Collaboration allows developers to take on larger projects and secure partnerships, leading to more successful and impactful developments.

  • The expansion of organizations like nyrek on a national level could help increase diversity and economic opportunities in real estate development across the country.

Summary & Key Takeaways

  • The city provides subsidies for affordable housing projects, both in terms of capital and rental subsidies, allowing developers to make money while providing affordable housing.

  • Affordable housing buildings typically require a percentage of units to be designated as affordable, such as 20-30%.

  • The New York Real Estate Chamber (nyrek) serves as an advocacy group for diverse developers, working towards increasing access to economic opportunity and capital for marginalized developers.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from Earn Your Leisure 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: