Non Profit tie in with real estate
Hello guys, so I am currently the director of a small non profit in the Houston Texas area. We focus on fundamental measures to combat homelessness as well as assisting underprivileged children. In the past year we have struggled to obtain funding and stay afloat but have done what we could from donations and assistance out of pocket by myself as well as others on our team. We currently possess a 5013c which makes all donations and grants tax deductible which has really helped. I would like to propose an idea and all of those knowledgeable in the area feel free to chime in because I am not sure if this is actually feasible. We had a meeting Thursday afternoon and the idea of purchasing a property (residential) on the behalf of the non profit came up. The foundation of this idea would be to use the property as a transitional space for those struggling to get back into the work force. I would like to know from you guys perspective, is this possible? Can a non profit organization even obtain a mortgage, loan, to buy a property? Donations are not consistent enough to pay monthly rent so how could we pay the mortgage and eventually purchase the property? Would an employee from the NPO have to live on site to manage? Any thoughts, pitfalls or ideas regarding how to do this correctly and what to expect on this path would be much appreciated! Thanks in advance