January 14, 2008
Grant For Investing In Real Estate: An Overlooked Option?
For real estate investors wondering about the options for funding their venture there is one option that many may not have considered – government grants for real estate investing. Together the federal and state governments have released billions of dollars worth of grants to invest in real estate.
Why is all this free money available for businesses and non-profits to put into real estate? Well, providing housing is a major function of the government and offering grants to invest in real estate is a way for them to outsource part of the job and spread the workload.
So exactly what things are able to be funded through grants and can you get a grant for investing in real estate? There are programs for acquiring properties, buying land, building housing, rehabbing and converting properties for residential use, amongst others.
On top of the grants to invest in real estate there are also low-cost and forgivable loans available. A forgivable loan is a loan that essentially converts into a grant and need not be paid back. Many of these real estate grants and loans can be accessed for investing as long as they meet the requirements that the government sets down.
There are some grants to invest in real estate available to for-profit investors but also some that are intended solely for non-profit organizations. However, there are ways that the smart investor can also open up the possibility to access these government grants and loans too.
For example, if a grant is aimed at helping seniors through a non-profit, a savvy investor might approach them to partner on a project so that the investor offers the housing expertise and the non-profit can provide specific expertise about the needs of the seniors. They may also bundle in some of their regular non-profit services. This may open the project up to receiving both non-profit and for-profit grants to invest in real estate.
Thanks to Jillian Coleman Wheeler for her input with this article.
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Middle Class Millionaires : Real Estate Investment Blog Roundup #1 @ 2:13 pm
[...] Grant For Investing In Real Estate: An Overlooked Option? Roger blogged about one such grant a while ago, too. It's good to know your options. [...]
Very good information, I like reading this type of positive information. It would've been great if I had some information on saving my property that I have two-weeks left before 4 closure to read information on helping people find financing or help for that. Especially when you tried for over 6 months to get the banks to reduce your loan payments to make it affordable for you because of hard times. Well, great information!! Thank you.
I think its sad that most people don't research a little further to find ways around the economy slump. There is more than just the typical loan. I think you have covered some really great stuff with the forgivable loans. More people need to know about these options.
I have paid for so many of these grant website and all they are is a monthly service with a list of agencies that tells you nothing. They do not they you what to do to get the grant or how to write a proposal. That's what you need to know. So if it's just a list of stuff you can get that off the internet or the library. You want real facts on what to do and how to do it.
Thanks for that information Janice.
Do you know if there are any new real estate grants that have been included in the stimulus plan? Since most of the problems are housing related, it seems like that would be a good idea.
Linda, I do not know exactly what real estate grants are included in the stimulus plan. But given your website I suspect you might have some more information on that. Can you share anything with readers here?
Its refreshing to see that someone else can see things in a positive light. Nice article and very good information.
My county just recently had a grant to buy a foreclosure home and it did not have to be a first home either. More people should apply for grants than do.