Affordable Housing & Real Estate Investing

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent lays out the 3 D's framework for training AI inside any business: Define, Delegate, Decide.

Most AI content on YouTube is comparison videos. Claude versus Grok. Gemini versus Claude. None of it tells you how to actually apply this to your business, because the people making it have never run one. Kent worked in AI years ago, back when it was called predictive analytics, before moving into affordable housing. This episode is the applied version nobody is making.

The core argument: you already know how to do this. You have been defining what good looks like, handing work to other people, and signing off on what goes out the door for your entire career. The only thing that changed is what you are allowed to hand work to. Kent walks the framework through five different businesses (realtor, medspa, CPA, foundation, property manager) to show that the front door of every business is the same shape.

Common Questions This Podcast Episode Answers:

What is the 3Ds framework for applying AI to your business?
Define what good looks like. Delegate the work. Decide what goes out. Three words that map exactly onto what a manager already does, so there is no new vocabulary to learn.

Why does AI not work for most small businesses that try it?
Two reasons. It does not meet you where you are, so people end up with twenty chat tabs open copying and pasting emails back and forth. And it has not been hyper customized to sound like you, know your playbooks, and understand how you talk to your customers.

What is the difference between an agent file and a skill file?
An agent has a goal, like a marketing director whose job is to grow qualified leads. A skill file is the standard operating procedure that agent pulls up when it needs to do a specific task. Both are plain text documents. Nothing more.

Are my existing SOPs useful for AI?
Yes, and this is the reframe. Your standard operating procedure is what the AI world now calls a skill file. The problem is most SOPs are not granular enough. Kent's standard: write it at the level of click this button, type this, click that.

What should you never let AI handle on its own?
Anything with a lawyer attached, anything involving an eviction notice, anyone claiming unfair treatment, anything involving a child, and anyone in distress. Mathematically AI has to make a mistake eventually, so the guardrails matter more than the output.

Can AI help with grant compliance and asset management in affordable housing?
Yes. Tracking which invoice gets paid from which grant, confirming labor was hired locally, confirming materials were manufactured domestically, and producing the compliance checklist is exactly the repetitive rule-based work this handles well. Full time employees do this today.

How do you get AI to improve over time instead of making the same mistake?
Build a self-learning loop. Have it save a copy of what it drafted, then compare that to what you actually sent. The difference between the two is the feedback, and every correction you write down is permanent.

Kent Fai He hosts the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States, and is a leading voice on applying AI to nonprofit and affordable housing operations, from fundraising and grant reporting to compliance and asset management.

Please DM any questions or content suggestions to Kent Fai He, affordable housing developer, educator, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States.

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions.

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent breaks down how to actually apply AI inside an affordable housing organization, from fundraising and grant reporting to compliance and asset management.

This is part one of a two part series, and it covers the three ideas you need before you touch any tool. Kent spent years working in AI before moving into affordable housing, and every episode of this podcast now runs through a system he built himself without writing any code. Producing a full episode's content used to take him six to eight hours. It now takes fifteen minutes of review.

The argument he makes: affordable housing is one of the best suited industries in the economy for AI, and almost nobody in it knows. Our work runs on written down rules. Every state has a tax credit rulebook. HUD has forms. Every lender has a closing checklist. Every funder wants a different report on a different schedule. Rules that are already written down are exactly what this technology is built to learn.

Part two walks through three specific things you can build, including a tax credit application system.

Common Questions This Podcast Episode Answers:

- How should an affordable housing organization start using AI?
Stop asking whether AI can replace a job and ask which tasks inside that job are pure steps with written rules. Retyping project data into six funder templates is different work than reading the room on a closing call. Use AI for the boring stuff first.

- What is the 10/80/10 framework for working with AI?
Kent's framework for any AI task: the first ten percent is you defining what success looks like, the middle eighty percent is the AI producing the work, and the last ten percent is you editing and correcting. Most people skip the first ten percent and then blame the tool.

- Why does AI produce generic, low quality work for most people?
It is almost never an AI problem. It is an instructions problem. Asking for "a funder update" is a wish, not an instruction. You gave it no examples, no tone, no structure, no length, and nothing about what you always include or never say. You would not do that to a new hire.

- What is an agent skill and do you need to code to build one?
An agent skill is a folder holding a page of instructions and a few examples. You point AI at it and it works your way instead of generically. No code required. Kent built his with three plain text files.

- How can a nonprofit use AI for funder reporting and grant compliance?
Write each funder's rules into a folder. One wants monthly expenses and vacancy, one needs proof funds served the right population, one restricts materials to domestic sourcing. Those rules already exist somewhere, so put them where your AI can read them.

- What is MCP and how is it different from an agent skill?
MCP is the plug connecting AI to systems like Google Drive or your reporting software. A skill is the know how, meaning what AI does once it gets there. Connecting everything without teaching it anything is why people conclude AI does not work.

- How does AI help an organization keep knowledge when staff leave?
Every rule and correction you write down stays permanently, so six months in you have a written record of how your organization actually works. When experienced staff leave, a large part of what they knew stays behind.

Kent Fai He hosts the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States, and is a leading voice on applying AI to nonprofit and affordable housing operations, from fundraising and grant reporting to compliance and asset management.

Please DM any questions or content suggestions to Kent Fai He, affordable housing developer, educator, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States.

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions. 

00:00 Podcast Trailer
02:20 Intro
03:27 Stop Asking If AI Can Replace a Job. Ask This Instead
10:13 The 10/80/10 Framework for Getting Real Work Out of AI
13:37 What Is an AI Agent Skill? It Is Just a Folder
15:03 Why Is AI Powerful but Still Bad at Your Specific Work? 
17:11  No Coding, No Developer - Just Rules. Here's My Exact AI Workflow. 
21:12 Why Does AI Give You Bad Work? It Is Almost Never an AI Problem
22:46 What Happens to Your Organization's Knowledge When Your Best People Leave?

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent sits down with returning guest Alan Biller, Director of Strategic Development, for an honest walkthrough re: the TOP reasons why you might NOT want to become an affordable housing developer.

Alan has spent his career at multiple nonprofit affordable housing organizations, working on everything from HUD 202 PRAC-to-RAD conversions to LIHTC new construction to rehab deals. He comes to this conversation with experience and provides an honest overview about how people imagine the job is like (as a developer) and what it actually is.

This episode covers reasons five through three: checklists, lawyers, and curveballs. Reasons two (government agencies) and one (ownership and responsibility for everything) will be covered in the follow-up episode.

Common Questions This Podcast Episode Answers:

What does an affordable housing developer actually do all day?
A large portion of the job is pulling documents from one party and sending them to another. With five to ten plus financing sources on a single project, each with its own application process and closing checklist, document management is a core function of the job, not a side task.

How many checklists does a single affordable housing project generate?
Alan managed three active projects simultaneously and counted 13 checklists between them, ranging from 1 to 16 pages each, covering bond applications, tax credit applications, construction loan closings, construction closeouts, state and federal agency requirements, and conversion processes.

How many lawyers does an affordable housing project typically require and what does it cost?
A single project routinely involves the developer's transactional attorney, zoning counsel, construction contract counsel, and separate counsel for each financing source: senior lender, subordinate lender, tax credit syndicator, city, bond counsel, and issuer counsel. Total legal fees reach the low to mid $100,000s per project, rivaling architecture costs.

What is a HUD 202 PRAC-to-RAD conversion and why does it cause delays?
A PRAC (Project Rental Assistance Contract) is an older HUD program not designed to carry debt. A RAD conversion updates those contracts into a structure that can support debt and eventually approach closer to market rents. When two programs both want senior lien position and were not designed to subordinate to each other, the resulting legal friction can cost months.

What are the most common curveballs in affordable housing development?
The most predictable is competitive financing: applying for 9% Low-Income Housing Tax Credits two, three, or four times before getting an award. Less predictable: missing a tax credit deadline because zoning was not in place, finding an unregistered oil tank straddling a property line mid-construction, and having a neighboring building catch fire and damage your property.

What happens if you miss a tax credit application deadline?
In most states, missing the annual LIHTC deadline means waiting a year for the next cycle. In Alan's example, the project needed zoning approval as a threshold item and did not get it in time. A required amendment on an adjacent parcel added another six months.

Whose responsibility is it when something goes wrong on a project?
The developer's. If someone on the team makes a mistake, it is the developer's mistake to resolve. Blame has no place in reacting to curveballs: it changes nothing and moves no one forward.

Don't forget to connect with Alan on LinkedIn: https://www.linkedin.com/in/alan-biller-8ab25923/

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions.

00:00 Podcast Trailer
04:19 Intro
10:16 Why You Don’t Want to Be an Affordable Housing Developer: Endless Checklists
14:10 The Affordable Housing Deal That Became “Total Brain Damage”
21:03 Why You Don’t Want to Be an Affordable Housing Developer: SO MANY LEGALITIES
35:50 Why Do Affordable Housing Projects Never Go as Planned?
38:04 The Zoning Curveball That Cost An Affordable Housing Development Team 6 Months
39:33 The Developer’s Biggest Responsibility: Owning the Problems
42:22 The Hidden Mystery Tank That Could’ve Delayed a Project 6 Months
47:29 The Most Important Skill That Keeps Affordable Developments Moving
48:55 Where/How to contact Alan?

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent sits down with Jenna Hornstock, lead strategist at LA4LA, for a deep dive on the Loan Increment Guarantee Tool: a first-of-its-kind financing mechanism that uses the rent overhang from Housing Choice Vouchers and county rental subsidies to unlock additional permanent loan capacity for affordable housing projects in Los Angeles County.

This episode follows last week's conversation with LA4LA co-founder Sarah Dusseault. While Sarah covered the public-private partnership model, Jenna goes into the guarantee tool's mechanics: how it bridges the gap between project-based vouchers (which lenders will underwrite) and choice vouchers (which they historically would not), and how a $10 million initial grant led to nearly $47 million of total guarantee capacity through a combination of cash reserves and unfunded balance sheet guarantees. If your project has entitlements but cannot get construction or permanent financing across the line, this episode explains the specific tool built to solve that problem in LA County.

Common Questions This Podcast Episode Answers:

What is the rent overhang in affordable housing finance?
The rent overhang is the difference between what a low-income tenant pays out of pocket (for example, $850/month for an extremely low-income one-bedroom) and what a voucher program pays to the landlord for that same unit (for example, $2,200/month. The guarantee tool converts that spread into additional underwritable loan capacity.

What is the difference between a project-based Section 8 voucher and a Housing Choice Voucher?
A project-based voucher is tied to the unit: when a tenant leaves, the voucher stays and the next eligible tenant brings the same rental subsidy. Lenders underwrite to the higher voucher rent because it is contractually tied to the project. A Housing Choice Voucher is tied to the person and moves with them, so historically lenders would not count that higher income when underwriting a project.

Why did Los Angeles hit its project-based voucher cap and what does that mean?
Federal statute limits project-based vouchers to ~30% of a housing authority's total pool. LA has effectively hit that cap: no new project-based vouchers are available for new projects. The guarantee tool exists specifically to make choice vouchers and county rental subsidies function like project-based vouchers for underwriting purposes.

How does the LA4LA Loan Increment Guarantee Tool work?
LA4LA underwrites a project and assumes that up to 30% of units will be occupied by voucher holders. It then issues an assignable guarantee that leads to additional permanent loan capacity, the incremental debt supported by the rent overhang. If that rental income falls short, the guarantee covers the debt service on that additional loan amount.

How is LA4LA turning $9.5 million cash into $47 million of guarantee capacity?
The structure is 20% cash reserves and 80% unfunded balance sheet guarantee. With the initial HealthNet grant, LA4LA holds $9 to $9.5 million in cash and is targeting $38 million in balance sheet commitments from philanthropic partners, creating approximately $47 million in total guarantee capacity.

Who is eligible and what do developers need to apply?
The tool is for entitled affordable housing projects in LA County with a clear financing gap. Developers need a project overview (unit count, income targeting, affordability commitments, and pro forma), a property manager or leasing agent with voucher holder experience, and a service provider partner. Apply at laforla.org under the guarantee tool tab.

Can this guarantee tool be replicated in other cities and states?
Every jurisdiction in the United States has access to Section 8 vouchers and some Transitional Age Youth rental supports. The structure is designed to be replicable, and LA4LA's goal is to demonstrate the model so that local, state, and federal governments with larger balance sheets can scale it nationally.

Don't forget to check out LA4LA's guarantee tool at: www.la4la.org/guaranteetool

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions. 

00:00 Podcast Trailer
04:04 Intro
09:53 What Is an AH Trust Fund and How Do Cities and Counties Create One?
13:09 How Does an Incremental Loan Guarantee Work for AH Developers?
20:34 Why Do Lenders Like Project-Based Vouchers For Underwriting??
25:14 The KEY to Unlocking More Affordable Housing (Loan Guarantee Tool)
29:02 How Does $10M Become $47M in Guarantee Capacity? 
31:36 How to Fill the Funding Gaps Holding Back More Housing!
32:30 How Do You Apply for the LA4LA Loan Increment Guarantee Tool for Your AH Development?
39:51 Where/How to contact Jenna?

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent sits down with Sarah Dusseault, co-founder of LA4LA, a public-private partnership using philanthropic capital to de-risk stalled affordable housing projects and get them built faster and cheaper in LA!

Sarah has 26 years in Los Angeles city and county government and policy, including as a deputy mayor under Mayor Jim Hahn. Her younger brother struggled with mental illness and homelessness for 20 years before finally securing a studio apartment in Pasadena. That experience exposed every silo and bureaucratic barrier in the affordable housing system from the inside.

LA4LA, in partnership with the Conrad N. Hilton Foundation, the California Community Foundation, and Mayor Bass's office, has helped support or create over 1,200 affordable units at an average cost below $400,000 per unit, at a time when $800,000 to $1 million per unit is the norm in Los Angeles. This episode covers how the model works: why thousands of entitled projects sit stalled without construction financing, how a $2.7 million philanthropic loan helped a developer access $54 million in bonds, and what developers need to show funders to get support.

Common Questions This Podcast Episode Answers:

Why does approved affordable housing in Los Angeles sit stalled for years without being built?
ED1 (Executive Directive One), Mayor Bass's order expediting 100% affordable housing approvals, has approved over 42,000 units, but only about 6,000 are under construction. The gap consists of projects that secured entitlements but have not yet arranged construction or permanent financing, often because assembling a seven-layer+ capital stack takes five or six years.

How does the multi-layer capital stack drive up affordable housing costs?
When developers piece together six or seven financing sources sequentially, carrying costs on land and pre-development debt compound over years. That accumulated time cost is a primary driver of the $800,000 to $1 million per-unit figures in headlines. Cutting the timeline cuts the cost.

What is AB 2011 and how does it lower affordable housing development costs in California?
AB 2011 is a California law combining commercial-residential zoning flexibility with multiple expediting mechanisms, reducing CEQA public hearing requirements and allowing parallel processing of approvals. LA4LA invested in one of LA's first AB 2011 projects with a $2.7 million low-interest loan, helping the developer attract $54 million in bonds.

How does philanthropic capital de-risk a project and unlock larger financing?
Philanthropic capital can take first-mover risk that conventional lenders will not accept. When LA4LA steps in early with a low-interest loan, it signals to banks and bond investors that an experienced organization believes in the project, lowering the risk calculation for everyone else. That is how a $2.7 million investment enabled $54 million in follow-on financing for one project.

What is LA4LA and how does it select projects to support?
LA4LA is a public-private partnership providing low-interest loans and strategic support to affordable housing projects in Los Angeles. They look for projects in high-resource areas, developers with a track record of execution (or strong partners who have one), and clear paths to reduced cost, faster delivery, and service to the most vulnerable populations. Applications are open on their website.

How did LA4LA put 335 affordable units in a high-resource neighborhood?
LA4LA provided a $5 million low-interest loan to the Clarendon project in partnership with the Housing Authority of Los Angeles, enabling the acquisition and conversion of 335 units. Fifty are very deeply affordable and reserved for people exiting homelessness, giving Housing Choice Voucher holders access to neighborhoods with quality schools and jobs.

Don't forget to check out LA4LA's work at: https://www.la4la.org/about-us

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions. 

00:00 Podcast Trailer
03:16 Intro
04:44 How Did One Family's 20-Year Struggle With Homelessness Lead to a Public-Private Affordable Housing Partnership?
06:34 How Red Tape Delays Affordable Housing for People Who Need It 
08:00 The Hidden Barrier to Ending Homelessness: Paperwork 
12:11 How Do You Attract Philanthropic Capital for an AH Project?
14:13 Why Are 42,000 Affordable Units Approved But Only 6,000 Being Built? 
15:31 What Is AB 2011 and How Does It Cut Affordable Housing Costs in California? 
20:29 How Did a $2.7M Loan Unlock $54M for an Affordable Housing Project?
26:00 How LA4LA Used a $5M Loan to Put 335 Affordable Units in a High-Resource LA Neighborhood
36:38 Where/How to contact Sarah?

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent sits down with Palin Ngaotheppitak, Executive Director of Beacon Housing, a nonprofit affordable housing owner-operator in the Greater Pasadena area, to talk about what it takes to rebuild naturally occurring affordable housing after a disaster with no LIHTC and no conventional capital stack.

Palin came to housing development with a nonprofit and banking background. She built Beacon's funding track record from scratch, starting with $50,000 deferred maintenance grants on properties they already owned before asking for anything larger. That trust-building is why when the Eaton Fire hit Altadena on January 7th, she could call the Pasadena Community Foundation's Altadena Builds Back Foundation with an opportunity to make a huge impact and get a $5.85 million grant to acquire and rebuild a 14-unit bungalow court as permanently affordable housing for 55 years. This episode covers the full deal: site control, the "like for like" zoning pathway, evaluating prefab manufacturers, and the two-year rental subsidy model that brought rents down to $700 a month for seniors on Social Security.

Common Questions This Podcast Episode Answers:

• How did a small nonprofit get $5.85 million to rebuild a fire-damaged 14-unit property?
Years of executing smaller projects built the funder relationships that made the ask possible. Pasadena Community Foundation knew Beacon's track record and trusted them with a fast yes. The relationship came years before the ask.

• What is "like for like" in a disaster rebuild and why does it matter?
The 14-unit property was zoned R-1, not multifamily. By qualifying for the expedited "like for like" rebuild pathway, Beacon could rebuild all 14 units. Without it, the lot might have supported only 3 units, making the project financially impossible.

• How does a small nonprofit build a track record to access larger grant funding?
Start with capital improvements on properties you already own. A new roof, deferred maintenance, a $50,000 grant. Demonstrate execution before asking for larger amounts. Beacon's first grants were in the $50,000 range.

• How does affordable housing pencil without LIHTC?
Beacon's projects are too small to qualify for LIHTC and they prioritize long-term community ownership over tax credit structures. The $5.85 million acquisition grant allowed them to set rents around $1,300 per unit with no debt service. A typical Beacon project layers grants against a DSCR-based debt amount.

• What is naturally occurring affordable housing and why was so much of it lost in the Eaton Fire?
Naturally occurring affordable housing is privately owned rental housing that rents at affordable prices without a formal covenant. UCLA research confirmed what local advocates already knew: most units lost in Altadena were NOAH, with 40% of surveyed renters paying less than $1,500 a month before the fire.

• How did Beacon bring rents down to $700 a month for seniors on fixed income?
By layering a two-year rental subsidy from YMCA of the Foothills on top of HUD-pegged rents. Studios went from $1,250 to $700 and one-bedrooms from $1,360 to $850, making units accessible to fire survivors on Social Security.

• How do you evaluate a prefab manufacturer for a disaster rebuild?
Beacon reviewed over 25 modular and prefab manufacturers before selecting one. The top criterion was longevity: the manufacturer needs to still be in business when your project is done. Many newer companies entered the market after the fires. Beacon prioritized established operators.

Don't forget to check out Beacon Housing's work at: www.beaconhousing.org

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions.

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent sits down with Trevor Fay, founder of Kopa Hub, to cut through the AI noise flooding real estate investing feeds and explain what responsible AI due diligence actually looks like.

Trevor Fay, one of the former Trustees and current Committee members of LA County Employee Retirement Assocation ("LACERA") worked on the market studies and spent years in private equity before building Kopa Hub. 

Kopa reduces a standard 600-hour institutional due diligence process to 5-10 hours, with Kopa's own piece taking under one hour. It uses 8 specialized AI models running simultaneously to cross-check what a seller has attested to against municipal records, USPS data, land classification, and independent news sources no broker controls. 

Join Kopa's waitlist now OPEN: https://www.kopahub.io/waitlist

This episode covers why LLMs like ChatGPT mathematically must hallucinate and why no prompt fixes that, how to evaluate any AI tool before you trust it with a deal, and what it means to do due diligence at the level of east-facing windows and individual floor rent differentials.

Common Questions This Podcast Episode Answers:

Why can't ChatGPT or Claude reliably underwrite a real estate deal?

What does Kopa Hub do and how long does it take?

How do brokers and market study consultants shape OMs to favor the seller?

What two questions should you ask before trusting any AI real estate tool?

Why do most investors skip deep due diligence even when they know better?

What is caveat emptor and why does it matter in real estate due diligence?

Who is Kopa Hub designed for and how do you get access?

Sign up at Kopa.io or join the VIP access list for a white-glove walkthrough using your own deal in a private, secure environment. Kopa does not sell your data. - https://www.kopahub.io/waitlist 

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions. 

DISCLAIMER: As of the podcast release date on July 30th 2026, Kent is not an active investor, but may become a future investor in Kopa.

00:00 Podcast Trailer
04:08 Intro
08:10 How Kopa Reduces 600-Hour+ Institutional Due Diligence Work to 5-10 Hours! 
08:39 Why Due Diligence (and AUDIT Logs) Matter More Than Real Estate Projections
12:59 What If You Could Spot Problems for a Bad Property in SECONDS?
21:26 Can You Trust the Numbers in a Real Estate OM?
29:57 How Kopa helps real estate investors decide FASTER (by having the RIGHT info)
22:39 The Hidden Risk of Using AI for Commercial Real Estate
22:42 How to ACTUALLY apply AI to commercial real estate (and why you shouldn't blindly trust Generative AI yet)
49:55 How/Where to contact Trevor?

To support the Ford Foundation, the first 10 people who message me directly on LinkedIn (@kentfaihe) with their name and address, I will personally buy you a copy of 'Positive Sum' by Roy Swan, which will be released on July 21. 

Order Roy's book here: https://positivesumbook.com/ where all the proceeds go towards the Ford Foundation!

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Roy Swan, Head of Mission Investments at the Ford Foundation and author of "Positive Sum," makes the case that affordable housing is not a charity investment. It is one of the most resilient and misunderstood asset classes in all of real estate.

During the Global Financial Crisis, when real estate prices were collapsing, multifamily affordable rental housing recorded delinquencies measured in basis points while comparable asset classes saw defaults of 2% or more. The chronic supply shortage puts the demand-supply curve firmly in the investor's favor. Roy explains why the financial case is clear and why psychology, not data, is what actually holds most investors back.

This conversation covers how to enter affordable housing development as a fundless sponsor paired with a nonprofit CDFI, why investors from low-income communities make better decisions in this space, the financial case for treating residents well, and the philosophy behind what one Morgan Stanley banker called the difference between "self-storage facilities for humans" and quality housing people are proud to call home.

Roy Swan's new book "Positive Sum" is out July 21st. All proceeds go to the Ford Foundation. The first 10 people to DM Kent Fai He on LinkedIn with your name and address will receive a free copy mailed to them by Kent. All others can order your copy today to support the Ford Foundation at: https://positivesumbook.com/

Common Questions This Podcast Episode Answers:

Why is multifamily affordable rental housing a better risk-adjusted investment than most real estate?

How do you break into affordable housing development without a lot of capital?

What is the psychological barrier holding investors back from affordable housing?

How does treating residents well improve investment returns?

Is rent-to-own single family housing a viable affordable housing investment?

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions. 

00:00 Podcast Trailer
03:54 Intro
12:03 Why Is Affordable Housing a Better Risk-Adjusted Investment vs. other real estate? 
18:46 Why does treating residents well improve investment returns? 
27:18 How Do You Break Into AH Development Without a Lot of Capital? 
29:40 How Do Compounding and Patience Build a Career in AH Development? 
35:01 The Athlete's Mindset Every Affordable Housing Developer Needs
39:08 Is Rent-to-Own Single Family Housing a Good AH Investment Strategy?
45:17 When/where can people get a copy of Roy's book?

To support our podcast, please sign up for a PadSplit account using our referral link so you can meet with Devon and get the data on occupancy and rental rates in your California markets: https://www.padsplit.com/hosts?referral=5EB2BCE0&ref_source=link&ref_device=desktop&ref_role=host 

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Devon Aguirre, Host Advisor for California at PadSplit, explains how co-living investing works in a market most investors write off before they ever run the numbers.

The traditional single family math does not work in California. A $7,000 mortgage on a property that rents for $4,500 is speculation, not cash flow. Co-living changes the equation. Instead of one income stream that disappears in an eviction, you have seven rooms. Six keep paying while one goes through the process. In the Inland Empire, a super-fixer that costs $950,000 in the city of LA costs $600,000 in Colton. That gap is the buy box no other investor is looking at.

Devon shares live data from the LA market: 197 active rooms, nearly 10,000 website searches in the past 30 days, and roughly 33 available rooms to meet that demand. Shared bathroom rooms average $1,300 per month. Private bathroom rooms average $1,685 per month. Purpose-built ground-up co-living in Los Feliz is getting $1,900 per room. New listings are booking in 11 days and hitting 80% occupancy within 22 days.

Common Questions This Podcast Episode Answers:

Does co-living investing work in California given rent control and tenant-friendly eviction laws?
Yes. Co-living spreads income across multiple rooms, so one eviction does not eliminate revenue. PadSplit members also average 8.5 months on the platform, which means rent control often filters itself out before it becomes a landlord problem.

Where should I buy a PadSplit property in Southern California right now?
Devon steers investors toward the Inland Empire, specifically Riverside and San Bernardino counties. Cities like Corona, Colton, and Perris offer lower acquisition costs, strong demand from warehouse and distribution workers near the San Bernardino Airport corridor, and older homes with space to add rooms.

What are PadSplit rental rates in the LA market today?
Shared bathroom rooms average $1,300 per month. Private bathroom rooms average $1,685 per month. Purpose-built ground-up co-living in Los Feliz is at $1,900 per room. Rooms near the former March Air Force Base in Perris average $800 to $900 per month.

How strong is the demand for co-living rooms in Los Angeles?
Nearly 10,000 searches hit PadSplit's website in the past 30 days for LA rooms. With 197 active rooms and roughly 33 available, that is approximately 300 searchers per available room. New listings get their first booking in about 11 days.

Is ground-up co-living construction in California worth the cost?
For experienced developers with capital and a long horizon, yes. Developers are buying for around $1 million and spending $3 to $4 million on construction with a three-year timeline before revenue starts. Purpose-built rooms in LA are commanding $1,900 per month and filling fast.

How do I underwrite a PadSplit property in California?
Use 70 to 80% of what a comparable studio rents for in that specific neighborhood as your per-room estimate. PadSplit rooms carry a slight premium because utilities are included and members are not locked into a 12-month lease.

Is California PadSplit investing primarily cash flow or appreciation?
A blend of both. Expect 2 to 3x the cash flow of a traditional long-term rental, not the 4x common in lower-cost markets. Appreciation is a real part of the return. Underwrite on a five-year hold, not just year one.

Please DM any questions or content suggestions to Kent Fai He, affordable housing developer, educator, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States.

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions. 

00:00 Podcast Trailer
03:13 Intro
06:12  Why Does Co-Living Work When Single Family Doesn't in CA? 
10:31 What Makes a Great PadSplit Property in California?
14:54  Where Should Investors Buy a PadSplit in SoCal Right Now? 
27:52 How Strong Is the Demand for Co-Living Rooms in Los Angeles Right Now? 
25:53 Does Rent Control Apply to New Construction and Co-Living Rentals? 
29:49 Is Ground-Up Co-Living in LA Worth the Investment?
39:19 Who Rents Co-Living Rooms and Why Do They Choose It? 
47:21 How/Where to contact Devon?

To support LA Mas, the first two people who message me directly on Linkedin (@kentfaihe) - I will personally buy you a ticket to LA Mas's annual fundraiser, Rooted, on July 14 from 5-8PM at Huron Substation.

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Helen Leung, Executive Director of LA Mas, shares how her Northeast Los Angeles nonprofit acquired 23 units across three properties in 18 months, unlocked $13 million in two years, and preserved affordable housing for working class immigrant families without a single dollar of public money.

LA Mas focuses on Affordable Housing preservation in northeast LA: buying multifamily properties before they are flipped and keeping rents affordable for long-term residents. Helen walks through the four-part capital stack that made it work, the deal structure that finally made the numbers pencil, and what 50 rejections taught her about getting to yes.

In this episode, Helen and Kent cover:

• 23 units acquired across 3 properties in 18 months with no public funding

• The 4-part capital stack: Self-Help Ventures Fund, program-related investments (PRIs), individual community investors, and LACAHSA

• The deal that pencils: $2,800/month ADU cross-subsidizing $1,000/month legacy rents on a $1.6M project

• How Helen entered escrow four times without all the money identified

• Why the first 50 rejections each came with a lesson

• Resident governance: long-term community members vote on who fills vacancies

• The Anna story: four generations staying in one building

Common Questions This Podcast Episode Answers:

How does NOAH preservation work without public funding? LA Mas anchored with Self-Help Ventures Fund as a co-developer covering 75-80% of equity per deal, then filled the gap with foundation PRIs and individual community loans. Their first three acquisitions totaled about $5 million with no public money.

What deal structure makes a NOAH acquisition pencil? LA Mas paid $1.2M for a 5-unit Cypress Park property averaging $1,000/month in rent. They added a 640 sq ft, 2BR/2BA ADU for about $300K that rents at $2,800/month market rate. The ADU cross-subsidy covers operating costs that legacy rents cannot. Total project budget: $1.6M.

What is a program-related investment (PRI) and how does it help affordable housing nonprofits? A PRI is a below-market loan from a foundation made to advance its charitable mission. LA for Ali (the mayor's public-private housing partnership) provided LA Mas a $250K grant to close their first escrow. A family foundation provided their first PRI for properties two and three.

How can individual investors support NOAH preservation? LA Mas raised $200K from individual investors at a $25K minimum. Terms: 1% interest-only payments for five years, then a balloon repayment. This community capital fills the gap between the equity partner and available grant funding.

What public funding is available for NOAH in Los Angeles? The LA County Affordable Housing Solutions Agency (LACAHSA) issued its first NOAH notice of funding availability. LA Mas was one of ten selected from 120 applicants and received $7 million. Their three private acquisitions gave them the track record to compete.

Don't forget to check out LA Mas's work. Follow them on Instagram at @masforla. Reach out to Helen directly at hln@[verify email domain before publishing].

Please DM any questions or content suggestions to Kent Fai He, affordable housing developer, educator, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States.

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions.