Episode 107
Unveiling Innovative Strategies in Nonprofit Housing Development
This podcast episode delves into the intricate dynamics of establishing and funding nonprofit initiatives, particularly within the realm of real estate. Chloe Millard joins us, bringing forth her extensive expertise as a serial entrepreneur and a passionate advocate for innovative housing solutions. We engage in a profound discussion regarding the essential steps required to launch a nonprofit organization, emphasizing the pivotal role of effective marketing in attracting investors and securing funding. Chloe elucidates various funding avenues, including government grants, public-private partnerships, and the unique advantages afforded by the 501(c)(3) status. Ultimately, we explore the transformative potential of container homes and the broader implications of sustainable housing solutions on our communities.
The discourse between Steve Deubel and Chloe Millard of Boxed Luxe Homes reveals profound insights into the realm of nonprofit organizations within the real estate landscape. Millard articulates the critical importance of establishing a nonprofit as a 501(c)(3), a designation that facilitates access to numerous funding opportunities while enhancing the organization's legitimacy. She delves into the complexities of various funding models, including public-private partnerships and government grants, emphasizing the necessity of effective marketing strategies tailored to engage potential investors.
As the conversation unfolds, Millard shares her experience launching the Rose Project, which aims to provide innovative housing solutions for vulnerable populations. She stresses the significance of clear communication in articulating the nonprofit's mission and impact, as this clarity is essential for attracting financial support. Millard's insights highlight the intersection of passion and strategic planning, illuminating how a thoughtful approach can catalyze funding and foster community engagement. The episode serves as a comprehensive guide for individuals seeking to navigate the intricacies of nonprofit development, particularly in the housing sector, and underscores the potential for transformative impact through collaboration and innovative solutions.
Furthermore, the conversation examines the broader societal implications of nonprofit housing initiatives, particularly for demographics such as veterans and those affected by domestic violence. Millard discusses the potential for integrating therapeutic programs, such as equine therapy, to support individuals in their recovery journeys. The episode culminates in a call to action for listeners to seek partnerships and engage with qualified professionals who can assist in realizing their nonprofit aspirations. By fostering a collaborative environment and investing in innovative housing solutions, individuals can contribute to a more equitable society, thereby reshaping the narrative of nonprofit real estate development.
Takeaways:
- The podcast emphasizes the significance of pursuing one's passions and making impactful changes in the community, particularly through nonprofit endeavors.
- Chloe Millard discusses the importance of effective communication when seeking funding for nonprofit organizations, highlighting the necessity of marketing strategies.
- The episode outlines various funding models available for nonprofit housing projects, including government grants and public-private partnerships.
- Listeners are encouraged to engage with qualified professionals to gain insights and guidance as they navigate their own nonprofit ventures.
- Chloe shares insights on establishing a 501C3 nonprofit status, which is crucial for accessing certain funding opportunities.
- The conversation highlights the potential for creating supportive communities for veterans, leveraging unique therapeutic programs to aid their transition to civilian life.
Links referenced in this episode:
- www.boxedluxehomes.com
- idealhomeimimimprovementaz.com
- iFoam.com
- phoenixmetro.mr.electric.com
- boxcaruniverse.com
Companies mentioned in this episode:
- Boxed Luxe Homes
- Ideal Home Improvement, LLC.
- Legacy Custom Homes AZ, LLC.
- I Foam
- Mr. Electric
Transcript
Welcome back to boxcar Universe.
Speaker A:I'm Steve Dubell, and this week is part three of our series with Chloe Millard of Box Luxe Homes.
Speaker A:Chloe's bringing the heat with bold ideas and serious style.
Speaker A:Let's jump right in.
Speaker A:All right, we are back, and you're listening to boxcar universe.
Speaker A:And we are here with Chloe Millard today from Box Lux Homes.
Speaker A:And we are trying, as we always like to do.
Speaker A:We talked about this the other day, Chloe.
Speaker A:You know, we're out here doing something that we love.
Speaker A:We have a passion about and wanting to make a difference.
Speaker A:And I think that's so important because a lot of times people just fall into ruts and, you know, well, it's the way it is, you know, and.
Speaker A:Or I heard this or looked at.
Speaker A:Well, you know, if you don't like it, do something about it to change it.
Speaker A:Yes.
Speaker A:You may be alone, you know, this lone person out there, but you want to know something?
Speaker A:If you believe in something long enough, like you said you had a passion as a serial entrepreneur.
Speaker A:I gotta start.
Speaker A:Do you mind if I use that?
Speaker A:Can I.
Speaker A:Can.
Speaker A:Can I give you credit for that?
Speaker B:I don't know.
Speaker A:Yeah.
Speaker B:If you have two or more businesses in your life, you're a serial entrepreneur.
Speaker A:I love that.
Speaker A:You know, and there's a story about, you know, when you.
Speaker A:When you see something that saying that you like about somebody.
Speaker A:Okay.
Speaker A:That somebody said, okay, so.
Speaker A:And I would turn around to somebody later today, and I say, you know, I heard.
Speaker A:You know, I had Chloe melod on my podcast today, and she brought up a very good term.
Speaker A:She said that she's a serial entrepreneur.
Speaker A:And then maybe tomorrow I'll go back out and somebody will say something, and that'll snap into my brain and I could turn around.
Speaker A:Now, this is the second time I'll say, yeah, I know this.
Speaker A:I heard this saying the other day that this person is a serial entrepreneur.
Speaker A:But now the third day rolls up and somebody says it, and I could claim it.
Speaker A:It's mine.
Speaker B:Yeah, I was gonna say you should, because you're definitely a serial entrepreneur.
Speaker B:I thought you'd like that.
Speaker A:I love it.
Speaker A:That's really great.
Speaker A:But anyway, so let's.
Speaker A:How do we get off on that sidebar?
Speaker A:I don't know.
Speaker B:But as we both have adhd.
Speaker A:I know.
Speaker A:I think so.
Speaker A:Oh, my God.
Speaker A:But anyway, so let's talk a little bit about, you know, talking about the nonprofit business model and obviously finding solutions, because like you said, you created a nonprofit organization when you started the Rose Project.
Speaker A:Tell us a Little bit about some of the things that you went through, you know, you know, in some of the things that are available, you know, different funding models, government grants and public private partnerships and all that good stuff.
Speaker B:Yeah, no, absolutely.
Speaker B:So, I mean, first of all, for anyone that is either wanting to launch a nonprofit or in the middle of doing it, especially in the real estate industry, you first need to incorporate as a 501C3.
Speaker B:You can do that, go for it.
Speaker B:Because that way you do have the actual advantages of being a non profit.
Speaker B:It takes a little bit of time and that doesn't mean that you can't work on your nonprofit until then.
Speaker B:I actually was on the board of a nonprofit before the official 501C3 kicked in.
Speaker B:And we were on the board for months doing meetings, planning all these things, even though their 501C3 wasn't approved yet.
Speaker B:So you don't need to wait to start.
Speaker B:But before you accept any funding or do any transactions, it's imperative that that 501C3 is active.
Speaker B:So that's just the early ST.
Speaker B:But as a nonprofit, the biggest things that I would recommend that they focus all their time and energy on to raise money is going to be your marketing.
Speaker B:Like that you could have the best mission in the world, but if you can't communicate that message effectively to the people that you want money from.
Speaker B:So think about that.
Speaker B:A lot of times the people with money, they didn't necessarily get there because they love nonprofit or because they have that mindset or that, that servant.
Speaker B:A lot of times they are analytical that they have the mindset of okay, if I do X, it'll yield Y and then I can pay for Z.
Speaker B:Like these guys are just number people.
Speaker B:So a lot of the marketing I do when I'm pitching to investors or real estate developers looks so different from the marketing I would do if I was marketing one of my other companies or working with like an influencer or a brand or something.
Speaker B:You know, like it's very different.
Speaker B:So with that being said, if you don't know how to communicate your message effectively yourself, I would recommend that you do a lot of research and try to work with someone that can do it for you.
Speaker B:But you have to be very careful.
Speaker B:Because the reason I have a marketing company is because I've seen too many good people and good businesses get hurt over marketing scams or agencies that are so expensive and they don't give you the ROI to continue to pay them.
Speaker B:Like, so I've seen it from both angles.
Speaker B:So to get actual Funding for these projects.
Speaker B:If you don't want to work with an investor and you want to strictly go like the government route or getting like different brands and stuff, you can absolutely do that.
Speaker B:So there's several different avenues you can go for.
Speaker B:Our company, we primarily focus on working with investors, but depending on the market we're in, we'll also apply for like affordable housing grants because those vary by jurisdiction.
Speaker B:And that's the great thing about building, at least in the US is because you can apply for grants from not just the federal level, but also in your own backyard of where you'll be building.
Speaker B:So a lot of times counties and municipalities, they really want projects like this.
Speaker B:Because think about it like every single piece of this equation and building housing for nonprofit, it's business.
Speaker B:Every single piece of it.
Speaker B:Like even the town you're building in, that town runs like a business.
Speaker B:Like they, they want to approve projects and put money into projects that is going to make their town more desirable.
Speaker B:From just, I want to live there standpoint, let me buy this house.
Speaker B:But also for companies like every single town that you know of, when they're looking at their budget and what, how much money they can spend on, you know, snow removal and gardening, all these things to make their town pretty, they also have to review where they're going to put their grant money.
Speaker B:People are always applying for grants for their projects, so you have to go fight for money from the government.
Speaker B:But the good news with that is if you can communicate effectively and you have a good plan and your marketing's good, it makes sense, it's quick to understand.
Speaker B:There's a really, really good chance you will win that bid every time.
Speaker B:If you're building with a container because it is new and flashy and cool, so it steals all the attention every time.
Speaker B:It, you will always be the new kid on the block when you're talking about container homes.
Speaker B:But number two, it is green, it is environmentally friendly, it is energy efficient, it is all good press, that is all good pr because they are such favorable topics today that everybody likes and wants and it's in the media.
Speaker B:Like whenever they can align with that, that makes them happy too.
Speaker B:So the grants that you can apply for from a federal level and state level, it's like they, there's something called cdfis, which stands for community development financial institutions.
Speaker B:And those like they're, they're everywhere.
Speaker B:So those vary all over the country as well.
Speaker B:But like people are becoming certified CDFIs all the time.
Speaker B:And what that means is they can access federal Grants they can access, you know, investments to fund affordable housing projects.
Speaker B:So them being certified, it just enables them to attract more investors and they'll support small businesses and enhance communities with that.
Speaker B:So being able to look for anyone who is a certified cdfi, Public private partnerships, those are like when you collaborate with local governments or like private entities that will provide financial backing and resources of that nature.
Speaker B:So that's essentially like a lot of times if we're working with a bank ourselves because I can't get an investor for a project, or if we just want to do self fund, we will go to a banking partner which sometimes is private equity.
Speaker B:Or if you're working with a private, you know, bank that is, you know, looking at your project and they're like, okay, like we want to be aligned with this type of publicity, if that makes sense.
Speaker B:Because even them, you would think that, oh well, a traditional bank, you know, like if you talk about Chase for example, they are in my experience, that's who I bank with.
Speaker B:But they tend to be very, very reserved and conservative because they're so big.
Speaker B:They can be like they, they can be very picky on who they work with.
Speaker B:And so they don't tend to give like loans to projects like this.
Speaker B:But when you're working with private money lending, a private lender can be an individual who's like, yeah, just, you know, I want to put money into this project and you're going to pay me.
Speaker B:Or a private lender can be a group of investors or just an entire fund.
Speaker B:So there's masterminds.
Speaker B:Like one is called Fun Launch where they specialize in creating funds for initiatives or companies for investments, like investment funds and things like that.
Speaker B:So that would be an example of still working privately because it's not government related.
Speaker B:So anyways, like with all the different options, you can either go public, which is government grants like federal working in your county to get different grant credits.
Speaker B:And a lot of the time when you're building with container homes, the credits you're eligible for are going to be credits for being environmental, so repurposing materials.
Speaker B:When you build with a container, like that's a recycling almost.
Speaker B:And also like saving on not cutting down trees and using as much lumber.
Speaker B:Like all of those things will make you eligible for almost Think of it like a tax refund, but you'll get a grant or aid towards your project.
Speaker B:And so whenever you build these communities and they're not government regulated or government run, you have lots of options for how to actually fund them, which are good.
Speaker B:So like options as in like I described earlier, you can have businesses that sponsor the containers or the units because they want to get their marketing in there.
Speaker B:So every person that moves in or comes in, they get like a big welcome book with all of these offers or they get all of these like things that are already set up in the apartment that are from those sponsors.
Speaker B:So it's just permanent marketing that you get access to.
Speaker B:They will, they can fund it that way.
Speaker B:But a lot of times I'll see like private funds be put together so developers might go in on deals together and spread it across all of their investors.
Speaker B:Typically something like this.
Speaker B:I would recommend like marketing the heck out of it.
Speaker B:So having a big PR campaign and blitz that'll help drive more attention and more, you know, investments that way too from government grants.
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Speaker A:All right.
Speaker A:And we are back and you're listening to Boxcar Universe.
Speaker A:Let's get back to our discussion with Chloe Millard from Box Luxe Homes.
Speaker B:And then also tax exempt bonds.
Speaker B:So like if you are a nonprofit and you've already been established as a 501, you could be eligible for a tax exempt bond which people would just you use to finance like a housing project.
Speaker B:And they're very attractive because they have lower interest rates for lower, I'm sorry, not lower, but for longer time periods.
Speaker B:So whenever you're doing a big development, like we were pitching a resort recently and that is a project that made me nervous because I'm like, there are so many things that will delay this project.
Speaker B:I don't even know where to start.
Speaker B:So when you have the ability to make a very long repayment period and the interest is as low as you can get it, that only happens with nonprofit.
Speaker B:So a lot of times they'll give you breaks that way.
Speaker B:And those are just better for large scale developments.
Speaker B:They typically won't allow it for like a single build.
Speaker B:But yeah, I feel like, especially with veterans, the reason I love this mission so much is not only for the actual individuals it's serving, but veterans.
Speaker B:The, the things that they do have access to today, like they do have access to grants and they do have, you know, certain credits they already get from the government.
Speaker B:They are able to leverage that themselves and make the development even cheaper.
Speaker B:So that's an option for veterans that are homeless, but they do have the ability to buy, as in like they're still getting paid from serving.
Speaker B:They still have a stipend with the government, like any veteran like that.
Speaker B:There's also the option that they fund their own development within the community.
Speaker B:So you can get them access to much lower rates and a mortgage and lower financing and have these that are sold.
Speaker B:Or you can build a nonprofit community where they're rented and when they're rented out and you have it managed by a property management company that maybe it's you or maybe you hire one, but that's another source of revenue that people want to get behind.
Speaker B:Because if you're renting these out, those veterans will have to pay their rent.
Speaker B:That's an option to fund it unless you want it to be completely nonprofit where it's um, then it's just a longer term play where we had developments like that where they wanted it to be free or very, very reduced.
Speaker B:And so they ended up having options to where the residents would work.
Speaker B:They would like, you know, earn their keep and live there by managing it personally.
Speaker B:So that was when I told you about working with like drug addicts and their families.
Speaker B:Like that nonprofit was saying that's how they were planning on funding it is.
Speaker B:We want to make it free, but we'll just make sure that everyone that lives there will like chip in and work.
Speaker B:And they are getting grants from the government for being on aid.
Speaker B:So like that grant was just going to the funding project.
Speaker B:So they were happy because they were getting checks every month.
Speaker A:Well, they'll make.
Speaker A:And that also creates.
Speaker A:While they're actually participating in basically taking care of the property, they have some type of ownership of where they're living.
Speaker A:It's not, not the chances of them trashing it are less.
Speaker B:Oh, absolutely.
Speaker B:And I wouldn't even have that concern with veterans or even like with the drug addicts like this nonprofit.
Speaker B:You're right.
Speaker B:The concern for them was government run organizations had very high incidents of relapse and also crime.
Speaker B:Like people would be robbed, murdered.
Speaker B:Like there were just a lot of things that this nonprofit was sharing with us and that they experienced.
Speaker B:And so with that being said, having solutions on how to counter that.
Speaker B:And it's funny, like when we talk about veterans, we talk about like victims of domestic violence or we talk about anyone struggling with substance abuse, all of those different groups, all of those personality types, a lot of them will suffer from four things that are similar.
Speaker B:It might be ptsd, it might be trauma, it might be mental illness.
Speaker B:All of these things overlap and which the solution ends up being very common and simple.
Speaker B:As in once these projects are funded by any combination of ways, like we literally have at least five that you can go right away.
Speaker B:But once it's funded, the things that you can do within that community are endless because you now have a niche community where it's only veterans.
Speaker B:So that means you can have things on there like equine therapy, which is horses.
Speaker B:And so when we were working with the substance abuse nonprofit Profit, they were saying like, okay, well we want to make this like a much better situation for these families and these people struggling with this illness.
Speaker B:So what can we put on site to where it makes sense and everyone's making money?
Speaker B:And I was like, well that's easy.
Speaker B:What if you partner with like an adjacent farm?
Speaker B:You know, something that's revenue producing.
Speaker B:And you have veterans there that have cleared background checks, that have cleared mental health assessments, what have you.
Speaker B:And they start part of their rehabilitation into civilian life by doing things like working on a ranch or volunteering or things that are really good for their soul that we've seen studies on.
Speaker B:And like, this is how we help people with ptsd.
Speaker B:You do things like equine therapy, you do things like group therapy, you write, you paint, like all of these different tools that you can have available by having that community center like you and I spoke about that can serve as like a multipurpose facility that can generate revenue as well.
Speaker B:So whenever you have something that is that size and a group like veterans, that is.
Speaker B:That's another very marketable group because I hate to say it like that, but I really feel like I'm a translator most days where I see our goal, we want to help and serve homeless veterans.
Speaker B:But I also see what's going to prevent us from doing that.
Speaker B:And a lot of it is going to be people wanting to invest in it because they want to know what's in it for them.
Speaker B:So with all of that being said, I just feel like if you set it up in the way that you're thinking, what how is everyone going to win?
Speaker B:How is everyone going to be happy?
Speaker B:And money has to be made to cover things.
Speaker B:What's the best way to get that?
Speaker B:And so for me, that's how I really like to think when I'm mapping out strategy is because I know what investors want and I know what our project wants.
Speaker B:What's the best way to communicate that message to get a win?
Speaker B:And so it's usually if you can come across the right way the first time, that is usually all it takes to at least get them in play and continue on to the end.
Speaker B:Just to get your message clear.
Speaker B:The first pitch.
Speaker A:That's right.
Speaker A:Because first impressions are so much.
Speaker A:Are so important, especially when you go.
Speaker A:When you go pitch to investors and everything else.
Speaker A:But you guys.
Speaker A:So much.
Speaker A:There's so much that we covered today, and Lord knows there's so much more.
Speaker A:We could go on for hours and hours, but tell our listeners how they could contact you if they are interested in.
Speaker A: done here in the Valley since: Speaker A:If you want to get it started and become active in the community and do some of the things that Chloe and I have spoken about, you need to call and ask the questions and speak to the people that know who have been there already to guide you along the road.
Speaker A:So not that you go off the rail somewhere and then you just give up on everything.
Speaker A:Because if you have a mission and you're passionate about what you're doing, you need to make sure that you get to the right people to get the right information.
Speaker A:How could they contact you, Chloe?
Speaker B:Yeah, great question, Steve.
Speaker B:Thanks for asking.
Speaker B:So for anyone that is interested in container homes, please feel free to visit our website.
Speaker B:It's just www.boxluxhomes.com and that's luxe.
Speaker B:L u x e homes is plural dot com.
Speaker B:And on our website we actually have a contact sect where if you're an investor, if you are a future home buyer, or if you are someone that's interested in the Rose project and being part of the nonprofit, you can simply just shoot us a message.
Speaker B:So if you can just go to our contact form and tell us what you're interested in, someone will be in touch.
Speaker A:That's right.
Speaker A:And if you could always contact me at the show at our 1-800-number, it's 1 8, triple three, boxcar.
Speaker A:And we will get you the information that you need and I will get you connected with Chloe.
Speaker A:So this way we can get you the information that you need to be able to.
Speaker A:Maybe you just want to learn more and maybe there's some more and Lord knows there's more detail that we could not cover in one hour.
Speaker A:You need to know.
Speaker A:But that's always, you know, but Chloe, that's always good because that always makes for a good, you know, second show.
Speaker B:Yeah, that's right.
Speaker B:Exactly.
Speaker B:Well, I hope that helped.
Speaker B:Thanks again for having me.
Speaker A:Oh, I really appreciate you being on the show.
Speaker A:And we will make sure we get the word out.
Speaker A:And I want to thank all our listeners for listening to Boxcar Universe.
Speaker A:Remember, we always try and give you the cutting edge information on container homes, what containers are being used for, and also the effect that using container homes has on our society, which is so very important as we go forward and become more technologically advanced.
Speaker A:And some of the things that you can put in container homes are just as cool as you could put in a traditional home.
Speaker A:So.
Speaker A:But we want to tell all our listeners if you are interested in getting a container home or a container pool, make sure you reach out to me at the show.
Speaker A:Steveoxcaruniverse.com and remember, Boxcar Universe can be heard weekly on any podcast player.
Speaker A:And always remember, let us remodel and renovate your world.
Speaker A:We'll see you on the next edition of Boxcar Universe.
Speaker A:Have a great week.
Speaker B:You're a great American.
Speaker B:I love.
