{"id":158452,"date":"2023-09-20T14:15:49","date_gmt":"2023-09-20T20:15:49","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=158452"},"modified":"2023-09-26T10:39:09","modified_gmt":"2023-09-26T16:39:09","slug":"kyle-jones-is-improving-his-community-through-real-estate","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/kyle-jones-is-improving-his-community-through-real-estate","title":{"rendered":"This Investor is Transforming Underserved Communities\u2014While Still Finding a Way to Profit"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Conventional wisdom says to go to school, get a good job, and retire at 65.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In his early 20s, Kyle Jones\u2019 path was unconventionally conventional. After forgoing college, he ventured off into the corporate world. He quickly rose through the ranks of his company and saw a clear career trajectory.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, the redundancy and stress of his 9-5 job led him to search for a profession with more flexibility. It wasn\u2019t long before Kyle connected with a friend who&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/tips-find-properties-fix-flip\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">flipped houses<\/span><\/a><span data-preserver-spaces=\"true\">\u2014the kind of job he could get excited about.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Within a few years, Kyle was part of a team that had flipped over 150 houses across the Atlanta metro area, along with other parts of the southeastern United States. To date, he has amassed significant experience in real estate investing, including flipping houses, long-term rentals, and employing the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/brrrr-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BRRRR method<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite his financial success, Kyle took a step back to think about the big picture and his legacy. \u201cI didn\u2019t want to be one of those guys that goes to a meetup and brags about how many doors I have,\u201d he said, recognizing that there\u2019s much more to life.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It was time to reverse-engineer his definition of success by focusing on helping others first and profiting second.&nbsp;<\/span><\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_650b52e9fb28d: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_650b52e9fb28d\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/kyle-jones-is-improving-his-community-through-real-estate', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/kyle-jones-is-improving-his-community-through-real-estate',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/kyle-jones-is-improving-his-community-through-real-estate', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Conscious Capitalism<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you spend just five minutes with Kyle, you\u2019ll immediately sense that he is driven by a strong moral compass. Throughout his investing career, he\u2019s been outspoken about investors who take advantage of unsophisticated sellers. He feels the same way about those who squeeze every penny out of those trying to make ends meet.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">He urges all investors, especially those working in low-income communities, to ask themselves a simple question. When debating what to charge for rent, ask yourself, \u201cWould an extra $100 change my life?\u201d For those trying to survive, it might be the difference between being able to buy groceries or not.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Seeing room for improvement in the real estate space, he founded\u00a0<a href=\"https:\/\/keyvest.com\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/keyvest.com\/\" rel=\"noreferrer noopener\">Keyvest<\/a>\u00a0to inspire ethical investing. His mission is to create more\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-130\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">affordable housing<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0by investing in disenfranchised communities.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Stonecrest, Georgia: A Case Study<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Stonecrest, Georgia, is 30 minutes east of Atlanta by car. As you drive around the town, you\u2019ll quickly notice various construction projects and recently developed medical facilities. If you explore multiple condominium complexes, you will see a range of housing options from A to C-class areas. By many metrics, this area appears primed for economic growth.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">One particular condominium association is more the exception than the rule\u2013 at least for now.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Imagine driving down the street and seeing dilapidated buildings where people are struggling to get by. Insert the name of any forgotten neighborhood in America, and you\u2019ll see many of the same things as Kyle did when he came across this community.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">People in these circumstances are often stuck in survival mode, which perpetuates the same problems from generation to generation. There were a number of uninhabitable units in one condominium complex that had been neglected to the point of no return. This association had been mismanaged, and the people of the community were paying for it.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Kyle decided to purchase as many units as he could in order to change the way things were done. In many ways, this served as Kyle\u2019s case study for what he hopes to accomplish on a national level.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This begs the question: can purpose and profit coexist?<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Five Key Lessons Learned<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many real estate books tell you to stay away from the types of neighborhoods that Kyle invests in. To that, he said, \u201cI don\u2019t want it to be easy. I want to earn my money. I\u2019m committed to solving real problems, even if it isn\u2019t always a walk in the park.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As you can imagine, there were a host of trials and tribulations along the way. Here are some key lessons Kyle learned.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Slow and steady wins the race<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Kyle went all in immediately once he identified a problem with a clear solution. While it\u2019s crucial to take action, you need to be methodical.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Let\u2019s just say that that lesson was learned the hard way.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There weren\u2019t clear exit strategies, yet he had several properties on his hands. That forced him to rush to complete his early projects to pay back lenders. It also meant that he was figuring out his exit strategy on his way out the door rather than having it predetermined.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In retrospect, he would have taken on fewer projects to start. Using the early projects as experiments gives you the chance to mitigate risk and apply findings later down the road. Once he identified the right tactics, he began to profit.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Prioritize community involvement<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">This particular Stonecrest HOA was plagued with systemic problems. Kyle was adamant about change and doubled down on purchasing properties to renovate in this community.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">What he later realized was that community buy-in was not only essential but instrumental in evoking change.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">\u201cIt\u2019s important to show your face in the community and to work with stakeholders to see real change,\u201d Kyle noted. He worked with the police chief to get drug dealers out of the complex. At the city council level, he was able to advocate for support on many fronts. Since joining the HOA board, Kyle has even personally funded the replacement of rotted pine siding with Hardie Plank siding in parts of the community.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There has been a significant amount of support from everyone since an olive branch was extended. As new projects come up, there are people who welcome the chance to get involved. Even locals who spend most of their time loitering have started to buy in by helping pick up trash from time to time. The hope is that by seeing a continued path to progress, the community will support this positive change.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. Build a strong team<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Convincing a lender to front money in a rough neighborhood was extremely challenging. Not many people saw the upside of renovating units in a seemingly downtrodden area. Many lenders passed on funding these projects, and onlookers from other aspects of life thought that this would be a disaster.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Having a strong support system was Kyle\u2019s saving grace. He leaned on people who saw a shared vision and believed in him. Two lenders, Gillen Joachim at Meredith Shearer &amp; Associates and Kelli Garrett at Rehab Wallet, agreed with his mission and the potential upside. \u201cIt took a great team, from lenders to family support, in order to see this mission through when no one else believed in me,\u201d Kyle said.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Progress paves the way for more progress<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">One day, an 80-year-old woman and her son with special needs called Kyle to show him the unit she lived in. He noted that \u201cher and her son sleep on the couch because there\u2019s a hole in the roof. When it rains, these rooms get flooded and have deteriorated over time.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">These people, and many like them, now have a roof over their heads and a place that they feel proud to call home. Kyle has employed the BRRRR method in this complex\u2014each of his units has quartz countertops and high-end finishes.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Such costly attributes are typically not seen at this price point, but if you ask yourself, \u201cWould I live in this unit?\u201d you always want the answer to be yes. The reason is simple: \u201dIt doesn\u2019t cost significantly more to build, and yet the impacts are profound,\u201d Kyle said.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s also created a change in mindset for many of the residents of this community. You can walk in and see neatly kept homes, and a sense of pride emanates from many residents. Additionally, there\u2019s a lack of late rent payments\u2014only one resident has failed to pay rent on time. As these changes occur, they also bring in more income for the housing association because these units were previously uninhabitable.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Moving forward, the plan is to develop one street of the community at a time.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">5. Purpose-first investing is profitable<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">When done correctly, these projects have enabled Kyle to cash-out refinance about $30,000 per unit. Though he admits that it hasn\u2019t always gone according to plan, as any real estate investor knows, his model proves that you can make purposeful investing profitable. Top-end rent in this area is about $1,800, but he charges $1,500 a month and still&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flows<\/span><\/a><span data-preserver-spaces=\"true\">. Although he takes home a bit less, he does so to ensure that people can afford their community and aren\u2019t priced out by gentrification.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Conclusion<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">While meaningful progress has been made, the job is far from finished in Stonecrest. Kyle is ramping up to further the progress of this community and inspire change from the ground up\u2014literally.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">What\u2019s your legacy?<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s no secret that many millionaires were made from real estate investing. That\u2019s why many people get into it\u2014to escape the 9-5 life or to build passive income for retirement. You also have the chance to literally transform entire communities or even just provide housing to a family.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">No matter how large or small an investor you are, you can make a big difference by investing ethically.&nbsp;<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_5bbc08dd86a91567769184d16d850a1d\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_5a037c01e5a0ae483be571a65d990683\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_755e893bfb56d0a5d215705af76d4063 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/kyle-jones-is-improving-his-community-through-real-estate&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/kyle-jones-is-improving-his-community-through-real-estate&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Kyle Jones is giving back to his community while still creating a good life for himself. Read about his story and the real, good power of investing.<\/p>\n","protected":false},"author":159074,"featured_media":157043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7358],"tags":[],"class_list":["post-158452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-stories"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/158452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/159074"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=158452"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/158452\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/157043"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=158452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=158452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=158452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}