Affordable Rental Housing and Multiunit Housing Solutions NWCUF - - PowerPoint PPT Presentation

Affordable Rental Housing and Multiunit Housing Solutions

NWCUF Affordable Housing Summit

January 22, 2018

State Employees’ Credit Union (SECU)

• North Carolina chartered credit union serving

state and public school employees and their family members

• 2.2 million members (22% of all North

Carolinians)

• $37 billion in assets / 260 branch locations /

1,100 ATMs

• $16 billion first mortgage portfolio (~135,000

loans)

• 99% Member Satisfaction

SECU*RE, Inc.

▪ Short for “SECU – Real Estate” ▪ Real Estate Property Management CUSO ▪ 100% Wholly Owned Subsidiary of State Employees’ Credit Union ▪ Created as a “C” Corp—”For Profit” Entity ▪ Formed in response to the housing crisis of late 2000s to provide a better solution to the foreclosure process

Mission, Focus, Goals of SECU*RE

• SECU*RE’s mission is to profitably acquire, renovate, lease,

and sell SECU foreclosures while preserving local property values, enhancing the reputation of SECU, and improving communities across North Carolina.

• Focus is on providing safe, affordable, and energy efficient

rental housing to the citizens of North Carolina

• Goal is to sell properties for more than our investment as

the real estate market improves and to generate positive earnings.

Purpose of SECU*RE

• SECU*RE purchases SECU foreclosures, rehabs

the majority of them to a standard above the current norm, and then leases the properties

• Rental income received provides a return on
• ur investment that exceeds the return

available through other traditional investment options.

Rental Process

• Local Approach

– SECU*RE branch representatives market, show, and process rental applications – Non-emergency repair requests handled locally

• Back Office Functions

– Create marketing flyers – Prepare leases – Coordinate semi-annual property inspections – Support branch network

SECU*RE Statistical Summary

905 478 76 311 1189 792 104 269

1435 997 84 304

200 400 600 800 1000 1200 1400 1600 Total Inventory (# Units) Units Rented Units Available for Rent Units Under Renovation, etc December 2015 December 2016 December 2017

SECU*RE Monthly Rental Income History

$57,000 $108,333 $190,000 $216,666 $333,000 $347,500 $388,333 $473,194 $578,768.31 $647,278.16 $672,404.60 $706,009.25 $807,292.87 $921,951.75 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000

Examples of SECU*RE Properties

BEFORE

BEFORE

AFTER

AFTER

BEFORE

AFTER

BEFORE

AFTER

BEFORE

BEFORE

Tenant Experience

“Renting from SECU*RE has been a pleasure! I’ve rented from

• ther individuals and a nationally known company and NO ONE

can touch SECU*RE for ANY reason. If I run into anyone who expresses interest in renting a home, I will DEFINITELY tell them to go to SECU*RE!”

• Keith Jung, Tenant

“Emily and I have decided to continue renting for another year. Thank you, SECU*RE, for being such an amazing rental agency; we really appreciate the flexibility and professionalism we are provided”

• Stacy and Emily Bonds, Tenants

Success Stories

6103 Clearwater Drive, Indian Trail

• Acquired property for $61,600 in

October 2013 from SECU

• Completed $26,000 in renovations
• Began leasing in March 2014 for $825

a month

• Received $32,000 in rent over 3+ years
• Tenant approached SECU*RE in

February 2017 an inquired about purchasing home

• Sold to tenant for $116,000 in June.
• SECU*RE profited $29,000 on sale.

Success Stories

1004 Jennings Road, Statesville

• Acquired property for $85,600 from

SECU in February 2014.

• Completed $22,000 in repairs
• Began leasing in May 2014
• Received $29,000 in rental income
• Sold to tenant for $145,000 in August

2017

• SECU*RE profited $26,500 on sale
• SECU provided mortgage financing for

the purchase

Real Estate Broker Network

• Network of 22 employees across the state have

completed licensing perquisites to list properties for sale on MLS on behalf of SECU*RE

• Results in a 3% savings on real estate sales

(standard listing agent commission in NC)

• Started listing properties in Fall 2017. Savings to

date equal $200,000+.

The Improved Rental Market

Homeownership and Corporate Landlords

Summary

In 4+ years, SECU*RE has grown into an established property management company with over 1,400 single family residential homes. SECU*RE is making a positive impact across North Carolina by rehabbing homes, improving neighborhoods, and providing North Carolinians with safe, affordable rental housing.

SECU Foundation

• Promotes local and community development

by funding high impact projects in the areas of housing, education, healthcare, and human services.

• Funded by SECU members via monthly $1

contribution

• Over $130 million awarded to worthwhile

causes since 2004

Teacher Housing

• SECU Foundation funded

interest-free loans to help build four teacher housing complexes across North Carolina

• Rents are affordable and units

are restricted to teachers and their families

• Assists local public school

systems with recruitment and retention

Questions??

Contact: Mark Kretzschmar Email: mark.kretzschmar@ncsecu.org Work Phone: (919) 508-8767