Government Grants For Real Estate Investors
Getting a foot in the door of real estate investing can take a lot of money upfront to fund a project, money that the average person may not have easy access to. That’s why many investors rely heavily upon government real estate grants to help them get their project up and running. There are various types of grants that you can apply for and many are designated for specific types of projects, and each have their own positives and negatives. If you’re interested in getting into the real estate market or need assistance on your next project, real estate grants can help make that happen.
Economic Development Programs
This type of grant comes from the U.S. Department of Commerce’s Economic Development Administration and they aim to help develop and promote economic growth in areas of low income. Everyone wins in this situation, as the grant hopes to help create jobs for construction workers and other applicants in the area. The EDA also helps by offering technical assistance that will ensure the investment will eventually give back to the community. Real estate investors will need to have their own money as well to complete the project, but any money granted is a good start.
Home Investment Partnerships
If you’re planning on constructing affordable housing, this real estate grant is for just that. HOME is a federal grant that gives money to state and local governments that assist in creating housing for low-income families. If you join an organization that receives a part of the $2 billion annual allocation, you can request grants from the program. Any money received should go toward building, buying, or rehabilitating housing.
Emergency Capital Repair
This real estate grant is provided by the Department of Housing and Urban Development and is given to property owners for any emergency repairs. If there is any damage that could affect the health or safety of your tenants, such as structural issues or mechanical equipment, you could receive up to $500,000. Just be sure your housing project is effectively serving the community.
Assisted Housing Stability and Energy and Green Retrofit Investments Program
This organization awards around $2 billion to rental assistance projects and around $250 million for green investments in assisted housing. If you’re looking to equip your property with green, energy-efficient products, you can apply for this real estate grant. The money is also provided by HUD, which should be spent over two years, helping to maintain rent amounts in the area. investors will also need to show how the housing assists low-income families.
With real estate grant applications and certain requirements when you do receive money, it might seem like a big hassle. However, anyone looking to start out in the industry, any additional money can be beneficial. Also, many of the grants aim to improve the local community and help low-income families succeed – a win-win for everyone involved.