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Kathy Utiss
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  • O'Fallon, MO
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Ending Homelessness of PA Start Up Non-Profit

Kathy Utiss
  • Specialist
  • O'Fallon, MO
Posted Sep 27 2023, 05:52

Good Day, 

We've been in the process of attempting to come up with a solution to "End Homelessness." Most of the work is done. Our way to do this is to offer a "Deferred Payment Mortgage" to both investors and homeowners. The idea is to encourage one to use their health to insure their wealth. This is done by using a life insurance policy. I do have a LLC and a non-profit to do this if necessary. The solution requires one to put 20% down. Then that money is put thru the "Double the Donation." The double the donation raises the funds to pay off the property. Then once the resident qualifies for the policy they are housed accordingly. With the policy paying off the p/i on the created loan.

But finding investors isn't as easy as we thought. As with the double the donation the funds have to go into the non-profit bank account. I have a decent score but some credit advertisers say it's like 680 vs 725 very alarming there could be such a discrepancy when all you do is try to maintain. While I understand a lot more than most I'm looking for more insight. I did have someone approve a vip deck but then they just quit responding. 

We are able to also offer a better rate of return than most. But the idea lets one put the money down and end up with a deferred payment mortgage. This means there is no default as well that could be created. This is a massive savings to both investors and homeowners. As our program is for homeless and near homeless. Investors could place section 8 tenants and receive the income they usually make. Plus not have p/i pymts. Any advice?

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Matthew Morrow#5 Creative Real Estate Financing Contributor
  • Investor
  • Pennsylvania
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Matthew Morrow#5 Creative Real Estate Financing Contributor
  • Investor
  • Pennsylvania
Replied Oct 13 2023, 04:12

This is a fantastic program, maybe its being held up in basic process or deployment. Try these steps-

1. **Clarify the Model**: Ensure your model is clearly explained and understood by potential investors.
2. **Transparency**: Ensure full transparency, especially regarding the non-profit bank account.
3. **Credit Score**: Address the discrepancy in credit scores, possibly through a credit report.
4. **Networking**: Attend real estate or social impact investing events.
5. **Reconnect**: Try reconnecting with the person who approved the vip deck.
6. **Benefits**: Emphasize the benefits - better rate of return, no defaults, potential Section 8 income.
7. **Consultation**: Consider consulting with a financial advisor or business consultant for refining the pitch.

Hope this helps!

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Don Konipol
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Don Konipol
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Replied Oct 13 2023, 05:35
Quote from @Kathy Utiss:

Good Day, 

We've been in the process of attempting to come up with a solution to "End Homelessness." Most of the work is done. Our way to do this is to offer a "Deferred Payment Mortgage" to both investors and homeowners. The idea is to encourage one to use their health to insure their wealth. This is done by using a life insurance policy. I do have a LLC and a non-profit to do this if necessary. The solution requires one to put 20% down. Then that money is put thru the "Double the Donation." The double the donation raises the funds to pay off the property. Then once the resident qualifies for the policy they are housed accordingly. With the policy paying off the p/i on the created loan.

But finding investors isn't as easy as we thought. As with the double the donation the funds have to go into the non-profit bank account. I have a decent score but some credit advertisers say it's like 680 vs 725 very alarming there could be such a discrepancy when all you do is try to maintain. While I understand a lot more than most I'm looking for more insight. I did have someone approve a vip deck but then they just quit responding. 

We are able to also offer a better rate of return than most. But the idea lets one put the money down and end up with a deferred payment mortgage. This means there is no default as well that could be created. This is a massive savings to both investors and homeowners. As our program is for homeless and near homeless. Investors could place section 8 tenants and receive the income they usually make. Plus not have p/i pymts. Any advice?

LOL
There is NO free lunch
You can twist, turn and stretch prices, payments, costs, etc anyway you want.  You can purchase contracts, annuities, life policies, etc. to “payoff” the loan.  Still 1 + 1 = 2.  Most of these “programs” rely on donations and or misunderstanding of time value of money.  Just do it straight.  Donation to charitable cause (end homelessness).  Donations pay for housing for the homeless.  
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Chris Seveney
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Chris Seveney
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Replied Oct 23 2023, 18:03

@Kathy Utiss

I still don’t understand, are you saying borrowers don’t pay until they die and life insurance pays off the home? As an investor that is way to much uncertainty as someone could live 50 years and I have no income coming in on my investment.

Am I reading this correctly?

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Henry Clark
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Henry Clark
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Replied Oct 23 2023, 18:16

@Kathy Utiss

If your heart is in it, keep fighting the fight.  Keep in mind, many homeless want to be homeless.

As stated above, clarify your model.  

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Kathy Utiss
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  • O'Fallon, MO
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Kathy Utiss
  • Specialist
  • O'Fallon, MO
Replied Nov 6 2023, 19:21

I've made a presentation that I'm attaching that I'm hoping gives a better understanding. Our goal is to help end homelessness. Granted there are going to be those that qualify and don't qualify to help themselves. If something is against the rules I apologize in advance. Just trying to get the best advice possible. 

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Saaj Patel
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Saaj Patel
  • Investor
Replied Nov 8 2023, 08:25

Kathy, I work in the Philadelphia area and would love to learn more about this. There is a lot of money on the sidelines, looking for the right investment vehicles. Maybe I can help bridge the gap here. 

Would love to chat further so I fully understand the project first. 

PM me!