Beneficial Realty Investors, LLC, which specializes in social-impact investments, will initially purchase, renovate and resell for profit a distressed townhouse in Boerum Hill, Brooklyn. We will also scale up the program by acquiring up to ten additional properties in Brooklyn.
In the process, we will train and mentor formerly incarcerated individuals, returning veterans and other disadvantaged individuals in the construction trades.
BRI will provide 60% of the funding for the first renovation, or about $3M. Co-investors will provide 40%, or about $2M, secured with a second mortgage. Co-investors will be repaid, with 10% annual interest return plus 10% of the net profit on condominium sales, expected in 18-24 months from acquisition. The co-investor will be provided a full development budget for review before funds are invested. BRI will not receive any acquisition or development fees.
In additional to attaining market-rate returns, the program will attain five social benefits. First, we will create jobs and careers for the disadvantaged. Second, we will use green construction techniques. Third, we will provide financial support to worthy non-profits. Fourth, we will expand the scope of the program. And fifth, we will establish a platform and public forum. Accordingly, we invite you to participate in this innovative investment opportunity.