Marchi, Brett Neely, Margie discussed on WNYC Programming


You sound like you guys have practiced that Brett Neely make what maybe easily may frizz does anybody have a complaint. The landlord pays half the cost Margie's foundation Star City pays the rest. I've always been fascinated with low income housing. What little girl doesn't feel that way seriously. I wanted to be landlord Barbie. I've just fascinated with it because I actually when I worked for my last company, I managed a portfolio of class, a brand new construction and it to me. It was boring. You've put in a million dollars, maybe a million and a half counting on the property in advance just in the place that we're sitting alone. So your company has to have substantial reserves. And I know profitability was the name of your game as you were coming up on the world. That's what unique about this model is we've gotten very innovative in how we raise money. We've had foundations give us money zero interest loans we've been working with the land and got a housing opportunity bond. We found a Bank, it was hard to find a Bank willing to invest in a blighted area but we've, we've gotten a Bank, so our cost of capital here is very low for every percent of interest. We have to pay. So if it goes from two to three percent it's thirty eight dollars a month in rent for our tenants. We're very sensitive about our cost of capital to be able to keep our rent's affordable. I think a lot of people come into these blighted areas, and they borrow money let's say at ten. Percent. Well, I mean you have to raise your rents significantly in order just to fund the interest for your investors. So we've really worked hard at being innovative in how we purchased properties. So a lot of it has been contributed or is alone, we call it capital, stack gymnastics. There's more to Marchi's formula, including a healthcare component. But most instructive is how she arrived at where she is ten years ago. She bought a blighted apartment conflicts in North Atlanta, went to a PTA meeting to introduce yourself and was instantly condemned as a slum, Lord, who was destroying the school. And.

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