E573 - CFC - 100k to Invest - Is This The Solution To the Affordable Housing Crises?

<p><span style="font-weight: 400;">Recession or not, America needs more Affordable Housing…</span></p> <p><span style="font-weight: 400;">However, when deals are getting harder to pencil out, can affordable deals make sense?</span></p> <p><span style="font-weight: 400;">To figure this out, I’m bringing on expert LIHTC Investor and Nashville native, Evan Holladay!</span></p> <p><a href= "https://asymcapital.com/podcast-post/e573-cfc-100k-to-invest-is-this-the-solution-to-the-affordable-housing-crises/"> <strong><<<Click Here>>></strong></a></p> <p><span style="font-weight: 400;">Today, we discuss why affordable housing is so different from every other asset class and the key drivers of Evan’s success. </span></p> <p><span style="font-weight: 400;">The problem is that the demand for housing in cities far outpaces the supply.</span></p> <p><span style="font-weight: 400;">Since it costs the same to build affordable housing as it does to build luxury class A, developers build the product type that will result in the highest NOI. </span></p> <p><span style="font-weight: 400;">The only way to solve this problem in our current economy is for governments to incentivize developers to build affordable housing through various programs, such as Low-Income Tax Credits (LIHTC). </span></p> <p><span style="font-weight: 400;">When deciding whether a deal works out, we tend to look at IRR and Cash-on-Cash returns. </span></p> <p><span style="font-weight: 400;">However, in affordable housing, a deal works out if there are enough sources of capital to get the deal done because NOI is not what drives success. </span></p> <p><span style="font-weight: 400;">LIHTC solves this problem by covering 40-70% of the development costs for developers. </span></p> <p><span style="font-weight: 400;">However, that still leaves a significant portion of the capital to be found, which is where Evan’s attention to detail and creative people skills make all the difference!</span></p> <p><span style="font-weight: 400;">Tune in to hear how he has put toge