: ‘The housing system has become unstable because people don’t own their homes’: This nonprofit wants to buy homes before investors — then sell to lower-income buyers

by | Aug 26, 2022 | Stock Market

For low- to moderate-income homebuyers, the prospect of going toe to toe with cash-paying investors for a simple, affordable abode can be daunting — if not financially impossible.  But in Milwaukee, one nonprofit thinks it can level the playing field.

Earlier this month, Acts Housing launched an acquisition fund to buy the kinds of single-family homes that would typically be attractive to out-of-state investors on the hunt for more rental properties, part of a phenomenon that has drawn more scrutiny amid soaring housing costs nationwide. Unlike low- to moderate-income buyers, the investors can also purchase the homes off market in all-cash deals without contingencies, making it tough to compete. With a $1 million operating grant from the local Zilber Family Foundation to start, though, Acts Housing hopes to use those same mechanisms to remain competitive, while also offering sellers a bit of a moral salve: Work with us, and you’ll be making homeownership possible for the kinds of people who are increasingly being locked out of the market.  “Without some market disruption, we see this continued influx of investor capital that’s having the result of pricing out low- to moderate-income families, mostly Black and Hispanic families who aren’t gettin …

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