All Forum Posts by: Harrison Jones

Thank you for the feedback—it’s a provocative take, and I appreciate the opportunity to discuss it further.

You’re right in identifying the “race to the bottom” dynamic, and in many ways, isn’t that the essence of capitalism? Competition drives efficiency, innovation, and value creation. However, my aim isn’t to simply drive down prices for the sake of it. Instead, it’s about creating a sustainable model that balances profitability with cultural and societal value.

Capitalism, at its core, thrives when there’s a focus on value creation—not just cutting costs but creating something meaningful and enduring. In this case, the “value” I’m building isn’t just financial; it’s cultural, economic, and community-focused. By leveraging time, scale, and diversified revenue streams, the goal is to create a system that enhances the quality of life while still remaining financially viable.

This isn’t a race to the bottom—it’s a race to a better balance.
A balance where real estate can:

1. Generate sufficient returns to attract investors and sustain itself.
2. Gradually reduce costs for underserved communities through scale and efficiency.
3. Reinvest in local economic initiatives, workforce development, and cultural preservation.

Capitalism can do more than just compete; it can also collaborate and innovate for shared value. My model seeks to harness these principles to align long-term profitability with community impact.

I’d love to hear your thoughts—how would you suggest balancing these goals in a way that doesn’t just compete but also creates lasting value?

Thank you for the great question—it’s a critical point to address. Let me break it down further to clarify the mechanics of the plan.

1. Balancing Rental Prices with Financial Sustainability:
   The goal to drive down rental prices isn’t an immediate or universal adjustment—it’s a phased approach that leverages time, scale, and operational efficiency. Early on, rents would remain market-aligned to ensure the portfolio generates the income needed to cover expenses, pay investors, and reinvest in expansion. Over time, as the portfolio grows and economies of scale reduce per-unit costs (e.g., through streamlined property management, lower maintenance costs, and improved operational systems), we’ll have the flexibility to adjust rents strategically in a way that supports affordability for specific tenant groups, like workforce housing.
2. Generating Income Beyond Rent:
   The portfolio’s income isn’t solely reliant on rents. The plan includes high-yield activities such as property flips and strategic acquisitions to provide liquidity and generate returns. These activities will allow us to both pay back equity partners and reinvest in long-term growth. Additionally, we’re integrating trade-focused businesses (e.g., plumbing companies) into the organization’s ecosystem, creating another revenue stream that complements the housing initiatives.
3. Paying Back Investors:
   Investors will see returns in two phases:
   • Early Phase (5-10 years): Focus on cash flow from rents, property flips, and other high-yield projects to generate liquidity for investor payouts.
   • Long-Term Phase (10+ years): As the endowment scales and stabilizes, surplus income from the portfolio will be used to gradually buy out investor shares. This phased approach ensures that investors see returns while aligning with the organization’s mission.
4. Leveraging Time for Impact:
   Much like how institutionalized farmland uses time and scale to drive efficiencies and reduce costs, this model leverages a long-term horizon to create a self-sustaining cycle. By focusing on steady, incremental progress rather than immediate affordability, we aim to build a foundation that benefits both investors and the community.

Thank you for the thoughtful input—it really helps refine the model.

You’re absolutely right that countless factors impact housing costs—labor, materials, taxes, inflation, interest rates—and no single solution can address everything. Instead of attempting to suppress rents artificially, my approach focuses on a sustainable, market-based strategy with a long-term horizon.

Here’s how I see this working:

1. Leveraging Time, Scale, and Institutionalization:
   Similar to how farmland has been institutionalized, leveraging scale and time can be powerful tools. Large-scale farming operations have used economies of scale to drive down costs, allowing them to sustain operations and feed large populations. In the same way, this model aims to scale housing operations over decades, creating efficiencies and reducing costs. By gradually optimizing operations and reinvesting in infrastructure, the endowment can support more affordable housing options without destabilizing the market or alienating investors.

   Currently, we’re integrating three plumbing companies under our organization’s umbrella. This is both a business move and a workforce development initiative, targeting trades as a critical part of economic growth. By creating pathways into skilled trades, we can pipeline our population into higher-paying, stable careers while building the capacity to support future development. Additionally, I’m actively working with a business broker to identify and acquire more trade-focused businesses to expand our portfolio and capabilities.

2. Investor Alignment:
   I recognize that investors need clear returns, which is why this model focuses on high-yield activities early on, such as property flips and value-add opportunities. These returns would help attract and retain investors while aligning with the broader mission of long-term economic development.
3. Economic Development Through Housing and Trades:
   The vision isn’t just about housing—it’s about building entire ecosystems. By aligning housing with economic development initiatives like job creation, trade education, and support for local businesses, the goal is to foster community growth and stability. This includes funding trade programs that teach financial literacy, work ethic, and specialized skills, which can also directly support future development projects.
4. Workforce and Education:
   Your suggestion of focusing on jobs and trade education aligns perfectly with our vision. By starting with workforce development, we not only create immediate economic benefits but also lay the foundation for long-term growth. The profits from the initial real estate investments and trade businesses would fund future community-focused initiatives, creating a self-sustaining cycle of growth and reinvestment.

hank you for the thoughtful question—it’s a crucial one to address. Let me clarify how the model is designed to work.

The plan balances three key components:

1. Market Stability and Long-Term Focus:
   While the ultimate goal is to drive down rental prices over time, this isn’t an immediate or across-the-board change. The strategy relies on leveraging time and scale. As the portfolio grows, we’ll be able to implement gradual, strategic adjustments to rental rates, particularly for tenants in need, without undermining the overall financial health of the endowment.
2. Phased Returns for Investors:
   Investors will be repaid through a combination of rental income and profits from other high-yield activities, such as property flips, during the early phases of the project. The flips are intended to provide the liquidity needed to both pay back equity partners and reinvest into acquiring more properties for the endowment.
3. Diverse Income Streams:
   The portfolio’s income won’t rely solely on rentals. By scaling and diversifying operations—e.g., through short-term flips, leveraging existing assets (my 17 properties), and potentially engaging in mixed-use developments—the model ensures that there’s sufficient cash flow to meet investor obligations and fund community programs.
4. Gradual Affordability:
   Driving down rental prices is a long-term goal. It’s about using scale and efficiency to reduce operating costs, which, over time, can be passed on to tenants without compromising the endowment’s sustainability. For example, we might use renewable energy initiatives, grants, or government programs to offset costs.T

Thank you for the feedback—it’s much appreciated! You’re absolutely right that my vision wasn’t clear, so let me clarify.

At its core, my goal is to create something akin to a university endowment—an enduring financial structure fueled by real estate investments to support long-term economic development initiatives. Here’s how I see this unfolding:

1. Building the Foundation: Acquiring ~50 Units
   I’m starting with a goal to purchase approximately 50 units in my local market, with the help of equity partners. These properties will generate the steady cash flow needed to build a foundation for the endowment.
2. Leveraging Existing Assets: My 17 Properties
   I own 17 properties, which I plan to integrate under the management of a trusted property manager (PMC). This allows me to streamline operations while tapping into an infrastructure that includes contractor networks, tenant management systems, and local expertise.
3. Scaling Through Flips
   Next year, I plan to launch a direct mail campaign targeting off-market deals, aiming to complete 15 flips. The PMC’s infrastructure will be instrumental in ensuring these projects succeed, helping to grow the portfolio quickly and efficiently.
4. Endowment Vision
   Much like a university endowment, the long-term vision is to use the real estate portfolio’s profits to fund community-focused initiatives, such as:
   • Affordable housing programs
   • Job creation and training opportunities
   • Supporting local businesses and entrepreneurs

   The income generated will eventually sustain key community programs, such as feeding elders and spurring economic activity. Over time, the organization would reinvest in these properties and buy out equity partners, ensuring stability and independence for the endowment.

Core Framework of Resources and Their Value

Here’s a detailed breakdown of each resource in your system and its value-creation mechanism:

1. Faith: The Fertilizer for Trust and Vision

Faith is a vehicle for belief—in people, ideas, or a vision. It fosters trust and unity, which are crucial for large-scale cooperation.

• In a practical sense, faith is what helps individuals and organizations work toward shared goals, even when results aren’t immediately visible.
• Faith sustains people through uncertainty, encouraging them to invest in long-term projects (like infrastructure) rather than focusing solely on survival instincts.

Faith passively generates cultural or ideological influence (e.g., spreading religion or reinforcing loyalty).

Faith can be harnessed to:

1. Inspire communities to rally behind a cause (e.g., community projects or values-based organizations).
2. Build intangible but vital infrastructure like social trust.

2. Art: The Vehicle for Knowledge Transfer and Validation

Art is how culture and knowledge are preserved, transferred, and validated. It creates a shared identity that binds people together.

• Art reinforces values, history, and a sense of belonging, passively increasing loyalty and engagement.
• It validates experiences and fosters emotional connections, encouraging collaboration and innovation.

Art generates tourism and culture, which attract resources and influence.

• In Civ, great works passively attract people, expand borders, and create cultural dominance.

Art can:

1. Serve as a soft power tool, amplifying marketing or cultural initiatives.
2. Facilitate passive education, teaching people through emotional and visual storytelling.

3. Science: The Vehicle for Discovery and Innovation

Science is the engine for progress, discovery, and innovation. It equips people and organizations with the tools to solve problems, optimize systems, and create entirely new possibilities.

• Science identifies bottlenecks and develops solutions, enabling long-term adaptability and sustainability.
• It fosters breakthroughs that transform existing systems or create entirely new ones, ensuring civilizations (or communities) stay competitive and relevant.
• Science refines existing processes, increasing efficiency and productivity across all resources.

• Science determines technological progress in Civ. It unlocks new buildings, units, and strategies, enabling a civilization to advance and gain an edge over others.
• Without science, civilizations stagnate and fail to adapt to new challenges or opportunities.

Science can be harnessed to:

1. Improve Infrastructure: Research how to build and manage systems like small businesses, healthcare initiatives, and resource management tools more efficiently.
   • Example: Developing innovative funding models or tools like CRMs to optimize trade routes and collaborations.
2. Enhance Education: Equip people with the skills to innovate and adapt to new challenges through science-driven training and education programs.
   • Example: Offering STEM training or leadership development for community members.
3. Optimize Systems: Use data and technology to refine workflows, improve decision-making, and maximize efficiency.
   • Example: Applying analytics to track project success or leveraging AI for smarter marketing strategies.

4. Gold: The Facilitator of Cooperation

Gold removes barriers to action by enabling resource distribution and incentivizing cooperation.

• It allows systems to function smoothly by rewarding contributions and aligning incentives.

Gold builds and upgrades infrastructure, funds armies, and speeds up production.

Gold facilitates:

1. Infrastructure projects, funding ventures that bring people together (schools, housing, businesses).
2. Enabling partnerships by making collaboration logistically possible.

5. Food: The Vehicle for Cooperation

Food mitigates survival instincts, creating stability and trust. When people’s basic needs are met, they can focus on collective goals.

• It forms the foundation for cooperation and growth by ensuring that individuals can thrive together.

Food ensures population growth, which increases the workforce for production.

Food (and what it represents, such as education and social systems) facilitates:

1. Social cooperation and community-building.
2. The foundation for sustained human capital.

6. Production: The Output of Organized People

Production is how quickly and effectively infrastructure can be built and sustained. It’s the direct result of cooperation, organization, and trade routes.

Production builds wonders, units, and projects; it determines how fast a city can grow and act.

Production results from:

1. Small businesses and community projects.
2. Efficient systems that maximize human potential and cooperation.

Your Claim: Fertilizers to Food and Production

You’re absolutely right. Faith, art, and gold "fertilize" the foundational resources (food and production) by:

1. Attracting more people (expanding community size and potential).
2. Reinforcing the systems that enable cooperation and growth (trust, shared identity, logistical support).

This synergy creates a positive feedback loop:

• Food (cooperation) leads to people, who create production.
• Production builds the infrastructure to attract more faith, art, and gold, which further fertilizes the system.

Game Examples and Improvement Opportunities

• Game Example: Spread religion to influence cities or gain loyalty.
• Improvement Opportunity: Focus on using faith to establish trust-building programs or shared cultural initiatives that unify people behind a vision.

• Game Example: Great works increase cultural influence and passive acquisition of land/resources.
• Improvement Opportunity: Invest in storytelling, visual representation of success, and cultural events to enhance engagement and loyalty.

• Game Example: Technological advancements drive infrastructure and unlock strategic advantages.
• Improvement Opportunity: Build systems that encourage STEM education, data-driven decision-making, and workflow optimization.

• Game Example: Buy tiles, speed up production, or maintain armies.
• Improvement Opportunity: Build financial systems like microloans or partnerships to "buy time" and reduce friction in cooperation.

• Game Example: Drives population growth.
• Improvement Opportunity: Expand education/training programs and create cooperative structures that ensure everyone has the tools to thrive.

• Game Example: Constructs infrastructure and wonders.
• Improvement Opportunity: Develop efficient workflows for project execution (e.g., better collaboration systems for small businesses and health initiatives).

Refined Framework for Your Thoughts

1. Faith: Trust, inspiration, long-term investment.
2. Art: Knowledge transfer, emotional resonance, soft power.
3. Science: Discovery, innovation, optimization.
4. Gold: Logistics, incentivization, cooperation enabler.
5. Food: Cooperation, stability, human capital.
6. Production: Infrastructure, efficiency, scalability.

Each "fertilizer" enhances the system, creating exponential growth.

Hey BiggerPockets Community,

I’m working with an organization that’s aiming to address affordable housing in a way that leverages time as a primary tool. Our belief is that real, sustainable affordability in housing can only be achieved by taking a long-term approach—think 100 to 200 years. The idea is to start now, so over the next 30 years, we can build enough market influence to work effectively with affordable housing programs and truly drive down rental prices.

To kick this off, I’m working on our first project. The plan is to acquire 10% shares in local property management companies whose goals align with ours. The organization would collaborate with limited partners to help fund the acquisitions, with a long-term goal of buying out the investors over time. The resulting real estate portfolio would then be used to fund key community programs, like feeding elders and supporting local economic development initiatives.

This is a new space for me, and I’m still figuring out how to structure something like this. I believe there’s a unique opportunity here to build an endowment for the organization, using real estate as the foundation. Over time, the portfolio’s income could drive further growth, support local businesses, and spur economic development in our community.

My questions for you all:

1. Has anyone here structured something similar, where limited partners are bought out over time by an organization? How did it work?
2. Are there specific pitfalls I should look out for when investing in property management companies as part of a long-term strategy?
3. What’s the best way to attract investors who understand the vision of a multi-decade endeavor like this?

I’d love to hear your thoughts, insights, or even suggestions for resources. This is a 20-30 year journey, but I’m excited to take the first step and would appreciate any advice from this community. Thanks in advance!

Entering in to a new part of the industry I have begun to notice the importance of networking with other agents in my area. Residential real-estate is where I am most comfortable that being said I have came across more land that needs developers, small apartment complex, and distressed homes. These areas have proven more challenging due to my network lacking individuals whom specialize in those areas. What mediums would you suggest to rapidly create new relationships in the industry? 

Social media and cold calling is always a great start. I would say that all theses answers are really good but the biggest thing is persistence. Its truly the name of the game.

What areas are you limited by? Are you looking just to your local area or out of state as well.