Rootsification© is a new kind of "gentrification"

that primarily benefits individuals who have roots in the neighborhood that is being beautified.

 

Advisory Team
 

Urban Fair Trade

real estate services are being structured to network real estate consumers and real estate professionals for the twin purposes of bringing more fair rental units and options to own rental property to less advantaged neighborhoods in Philadelphia.



Propper Homes
(PROsperity fliPPER)

is our name for the informal alliances of businesses that make rootsification© possible.

Those suppliers and contractors are pledged to offer each project their best practices, for a fair price.

Financing

The financing for each Rootsification project will include one, or more of the following:

  • A single investor.
  • Multiple investors secured through equity crowdfunding ("Title 3").
  • Small, "layaway" investors.
  • Bartered services from neighborhood contractors.

Some current, derelict property owners will be invited to invest their property in a U.F.T. Endorsed project for substantially more than its current market value. They may leave their investment in place for the term of the project or cash out when the project is fully-funded.

 
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Are You Coming
  Inhouse

A limited number of rowhouses will be built and managed by Urban Fair Trade.

These rowhouses will be rehabs of existing housing. The properties will be upgraded by small contractors from the neighborhood and will be funded by local restaurants through the "Eat Them INTO house and Home" promotions. Each will be upgraded and retro-fitted with most of the features of the new DEMO rowhouses.

DEMO One

"DEMO" is an in-house project that is scheduled to begin in 2019. The twin goals of each DEMO building are fair rents for five years, with the sale of the property to one of the tenants at the end of that time.

Rents are held to a percentage of each building's value, which can be substantially below "market value". That percentage allows the building's owner(s) to earn a fair profit for the investment of time and money.

When the property is sold after five years, the investors will earn a small, additional profit, but the amount will be less than they could have earned if they had flipped the property immediately after its construction or retro-fitting.

There will also be tax-deferred advantages from properties that are sold under an Employee Stock Ownership Plan.

Landlords and house flippers in the targeted neighborhoods range from professional contractors down to dreamers who are likely to go down in flames. That is why we have several options that allow almost anyone to become a landlord, from the completely unprepared to those who can use their own crews to handle any or all construction or retro-fitting chores.

As long as they follow our format, we will help them in any way that we can.

  • All systems and most surfaces must have been completely updated within the last three years
  • Total building rents can be no higher than one and a quarter percent (1¼ %) per month of the structure's market value, for the term of agreement
  • Every address must have a water filtration system, either whole-house or kitchen sink
  • All required licenses and insurance must be kept current
  • Within reason, there must be a system in place to resolve, or at least schedule, a rapid resolution of all building issues within 36 hours.
  • If a deposit is required, it must be no more than ½ of the tenant's monthly rent.

The opportunities for mutual benefit have always been there. But they need YOU to make them happen.



 
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Row_House   
 

Prosperity For Our Posterity

Rootsification © is a commitment to building a more prosperous future in Philadelphia's least advantaged neighborhoods.

House flippers usually buy low, update and upgrade before they sell the renewed property for a profit and move on to their next flipping opportunity.

"Prosperty Flippers" ("Proppers ©") buy low, update and upgrade and then manage the property, earning a fair return for their time and efforts. (Our "proppers"© aren't exactly the same as Aretha's "propers", but both have their roots in R-E-S-P-E-C-T)



The following describes a propper© project in which a 13' x 35' row house is upgraded into a shared home for two individuals.

Step One: A real estate wholesaler finds a stable, gutted property for $25,000 or less (or one that can be made that way, within that budgeted amount.)

Step Two: A contractor is engaged to complete the building rehab for $65/Sq. Ft., or less (Approximately $60,000)

Step Three: Equity financing is secured for $90,000, starting as a construction loan and converting to a five year, interest-only mortgage with a 6% interest rate.

Step Four: Adding a 15% builder's fee and a 3% real estate commission to the above figures gives an approximate value to the building of $106,500 and an estimated, "fair" rental of $530 per client, per month.

All expenses (excluding mortgage) and income are estimated to increase by 3% per year. The estimated value of the building, based on the rental income, will be approximately $120,000 after five years, with an annual rental income of approximately $14,000.

This framework can accomodate any investor, from a passive novice to a professional with his or her own crew.

Other sized building rehabs and other living arrangements are proportionally similar to the above figures.

By starting with a gutted building, hazardous paints and insulations don't need to be sealed or monitored. The new systems and surfaces, after five years of being well-maintained deliver a sound product to the building's next owner.

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Coming Soon
---FOR RENT---

This Space is
Available

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