The lack of affordable housing is a big problem in the US. And most developers shy away from these projects because it’s hard to make money.
But Alvin ‘Hope’ Johnson is not most developers. He’s found a way to innovate in the affordable housing space and ‘do good while doing good.’
Alvin is President of the Hope Housing Foundation, a nonprofit positioned to be one of the country’s most effective affordable workforce housing organizations.
He also serves as CEO of Multifamily Monopoly, an education platform for real estate developers interested in the process of multifamily development and ownership.
On this episode of Financial Freedom with Real Estate Investing, Alvin joins Garrett and me to discuss his journey from painting houses to $225M multifamily entrepreneur and describe the tenacity it took to find a mentor in the space.
Alvin shares his successes in affordable housing so far, explaining how he’s turning neighborhoods around, building sustainable workforce housing developments, and making a profit in the process.
Listen in for Alvin’s insight on pursuing a mission-driven business and learn how to leverage innovation to make money building naturally occurring affordable housing.
Alvin’s journey to $225M multifamily entrepreneur
- Got his start painting houses and became contractor
- Spent many years in mortgage business
- Plan to buy HUD houses until met mentor in multifamily
How Alvin got his mentor to agree to work with him
- Called, texted or emailed every week for full year
- Tenacity born from choosing big enough WHY
Why Alvin focuses on HUD housing
- Provide affordable housing to people who need it
- ‘Do good while doing good’
Alvin’s successes in affordable housing so far
- Turn around neighborhoods in Dallas and Louisiana
- Win-win for investors, partners, city governments & HUD
Alvin’s new sustainable affordable housing developments
- 20K units over 5 years with structurally insulated panels
- Consistent temperature in units no matter climate
How Alvin got educated and found success in multifamily
- Background in lending and construction experience
- Develop what differentiates him from crowd
What Alvin would do to solve affordable housing in the US
- Cut off free housing, Medicare after 5 years in system
- End tax credit programs and increase wages
How Alvin’s team serves the kids in his communities
- Provide furniture, school supplies for families in need
- Developing summer feeding programs
What inspired Alvin to pursue a mission-driven business
- Surrendered himself to higher power
- Passion for real estate turned into purpose
How Alvin is sourcing trades workers from the penal system
- Training program for nonviolent offenders
- Learn to be plumbers, HVAC or mechanical contractors
The business model for Alvin’s current 200-unit development
- Raised 25% equity on $50M, expect 26% return
- $125/month profit per door on electric + internet alone
Why Alvin created the Multifamily Monopoly platform
- Bring awareness and educate community
- Inspire Black community and older people
- Raise money to fund new developments
Connect with Alvin ‘Hope' Johnson
Connect with Michael Blank
Email [email protected]