Updated almost 10 years ago on . Most recent reply
not for profit 501C3
Hi folks
When trying to buy and rehab homes with a charity who can tell me what I should keep in mind about this type of financing and the problems and solutions out there?
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Any bank, non-profits are looked at much differently, their loan can likely qualify for the bank's requirements under the Community Reinvestment Act, a requirement for community investments in their operational area.
They still need the ability to repay, but not knowing what the intentions are, other than a rehab, can't say much more.
A non-profit may finance from donations, operational revenue from their non-profit or even profit making activities and they sometimes partner with outer non-profits to meet a the missions of both organizations.
It's generally difficult for a very small N/P to obtain financing especially if it is new, no experience and no track record.
If they can't swing the deal, they might consider selling and leasing it back. Good luck :)