budg-et / noun
A budget is an estimate of income and expenditures for a set period of time that is analyzed to determine the positive or negative results in one's spending habits. |
budg-et / verb
To budget is to allocate a particular amount of money toward something. To make adjustments in one's spending habits to reach a desirable goal or avoid a costly mistake. |
Good Faith Commitmentcom-mit-ment / noun
The state of being dedicated to a cause, activity or agreement. It is a promise to something or someone consisting of your effort, time, money and resources. A willingness to give your time and energy to something that you believe in. A promise or firm decision to do something that you said you would do. There’s no doubt that buying a home or car requires a major commitment. That commitment will consist of time, energy, effort, and money. The question is how much money do you need and for what reasons. Most people who want to do something about their situation don't know where to start or how to begin saving money. Everybody knows that the purchase of a home or vehicle requires money. The challenge is being able to follow a budget and save money to meet those obligations. Our Good Faith Commitment (gfc) Program was created for our housing, transportation and personal development programs to help you prepare for the financial obligations and commitments associated to the purchase of a home and/or car. Funds needed without our program
A buyer is expected to have a certain amount of money to purchase a home or car. The question is how much and where does that money go. The money brought to a real estate closing is called “Funds-to-Close”. The amount of funds-to-close a home buyer might need will vary based on factors like the value of the property, the type of loan, and the tax rate for the county the home is located. Funds to close can be broken down into two figures. (1) the down payment and (2) the closing costs. The down payment is a term used to describe money that is paid by the buyer at the time of closing. The average down payment a home buyer would anticipate saving for the purchase of a home is $4,000 to $6,000. All together you would expect to save $8,000 to $12,000 or more to allocate toward a down payment and closing costs. Let’s say for numbers sake that the average home buyer would need to anticipate saving $10,000 of which $5,000 would be allocated toward the down payment and $5,000 would be allocated toward closing costs. The results: a home buyer would have $5,000 in equity and would have spent $5,000 on closing costs a “net” balance of $5,000 retained by the home buyer. |
Government FundingIn recent years the government has launched an array of housing, urban renewal, and community development programs for state, city and non-profit organizations to deploy. There are dozens of programs with hundreds of millions in funding available for organizations like ours to source for consumers.
The federal government has several major departments that are required by law to spend a specific percentage of their budget every year toward the development of the community.
The goal is to strengthen neighborhoods and communities by helping renters become home owners. It's a proven fact neighborhoods that have happy home owners tend to have a lot less crime. That's difficult to accomplish when 1/3rd of the properties have been abandoned and are under distress both financially and physically. To improve the well-being of the community and/or specific neighborhoods, we have to increase the number of educated owners. Our housing program lines up with the federal government’s objectives. Our goal is to help you meet the educational, income, credit and employment guidelines to qualify for government funded programs that can be used toward your down payment and/or closing-costs when purchasing a home. There are several different sources and types of programs with varying amounts of funding. Some may total as much as $15,000 or more. These programs are not guaranteed to have funding year-round. The programs fund in and out of money and knowing how to find them and apply for them is what we do best. We know how and where to look for these programs and we will help you secure as much funding as possible when you graduate from the program and complete the sourcing process. |
Funds to Close Comparison
Option #1 - $10,000 commitment
(without our program) You would expect to save and then commit at least $10,000 to the transaction.
-$5,000 is spent on closing costs $5,000 is retained in equity Option #1 would require you to save and make the same commitment as option #2. You would expend approximately 50% of your commitment on costs and retain 50% in equity. The amounts listed are estimates. The actual amount of funds one might need for a down payment and/or for closing costs could be lower or higher, depending on the purchase price of the property and other variables. |
Option #2 - $10,000 commitment
(with our program) You commit $10,000 to the We Help Foundation and end up with approximately $5,000 in equity at closing and $5,000 towards closing costs. The same results you would have without our program in option #1 plus the additional financial and intangible gains listed below.
$5,000 equity/balance (same as option #1) +$5,000 to $15,000 sponsorship funding +Excellent Credit +Unlimited Consultations for life This option requires the same financial commitment as option #1 but you gain additional financial and intangible benefits. You would increase your financial position by 150% with option #2. Upon graduating from the housing program you will have excellent credit and you will have gained the knowledge and skills necessary to manage your credit profile. |
Sponsorship Funding Explanation
Sponsorship funding is the term we use to describe what happens when we secure capital from a sponsor to acquire and renovate the property you select under our community revitalization initiative. Sponsorship funding is also used for new construction projects.
We use a specific formula to acquire or build homes. We leverage the equity in the property you’ve selected to ensure we are able to return all proceeds that we borrowed from your sponsor back to them at closing. The Foundation will actually go into debt with your sponsor to secure the funding needed to cover the acquisition, carrying costs and renovation costs.
Our goal is to secure funding through government programs and sponsorship that together will be “equal to” or “greater than” the amount that you paid to the Foundation.
When you become eligible for sourcing we solicit funding on your behalf from a sponsor. Your sponsor will provide capital to acquire, renovate and carry the property you selected that conforms to our community revitalization program. When the transaction is complete the sponsor receives his/her funding back.
The actual amount of sponsorship funding you may receive is proportionate to the amount you paid into the gfc program in consideration of the amount of government funding that is secured and allocated toward your down payment and closing costs.
If you are not eligible for government funding we can solicit sponsors for funding to cover 100% of your closing costs.
Lenders will not allow us or your sponsor to fund your down payment directly. They will however allow your down payment to come from a state or city housing program. You will be required to bring your 3.5% down payment at the time of closing. Our goal is to get you qualified so that we can use government funding to cover your down payment. In many cases we may structure sponsorship funding toward moving assistance as an offset. There are two reasons why you may not benefit from government funding. You may not qualify OR funding may not be available.
If you are not eligible or there is no funding available then we default to the seven methods of sponsorship funding exclusively. It is important to realize that the financial details of a real estate transaction can NOT be determined while you are in the program. It is only after completion of the program that these details can be discussed and/or explored.
If you do not qualify for the government funding the Foundation will negotiate on your behalf with your sponsor to ensure you receive a match on proceeds. This "match" is basically a guarantee that one way or the other you'll get 100% of the money you paid into the gfc program at the time of closing.
The return on proceeds can come from one or more of the seven sponsorship methods listed below.
We use a specific formula to acquire or build homes. We leverage the equity in the property you’ve selected to ensure we are able to return all proceeds that we borrowed from your sponsor back to them at closing. The Foundation will actually go into debt with your sponsor to secure the funding needed to cover the acquisition, carrying costs and renovation costs.
Our goal is to secure funding through government programs and sponsorship that together will be “equal to” or “greater than” the amount that you paid to the Foundation.
When you become eligible for sourcing we solicit funding on your behalf from a sponsor. Your sponsor will provide capital to acquire, renovate and carry the property you selected that conforms to our community revitalization program. When the transaction is complete the sponsor receives his/her funding back.
The actual amount of sponsorship funding you may receive is proportionate to the amount you paid into the gfc program in consideration of the amount of government funding that is secured and allocated toward your down payment and closing costs.
If you are not eligible for government funding we can solicit sponsors for funding to cover 100% of your closing costs.
Lenders will not allow us or your sponsor to fund your down payment directly. They will however allow your down payment to come from a state or city housing program. You will be required to bring your 3.5% down payment at the time of closing. Our goal is to get you qualified so that we can use government funding to cover your down payment. In many cases we may structure sponsorship funding toward moving assistance as an offset. There are two reasons why you may not benefit from government funding. You may not qualify OR funding may not be available.
If you are not eligible or there is no funding available then we default to the seven methods of sponsorship funding exclusively. It is important to realize that the financial details of a real estate transaction can NOT be determined while you are in the program. It is only after completion of the program that these details can be discussed and/or explored.
If you do not qualify for the government funding the Foundation will negotiate on your behalf with your sponsor to ensure you receive a match on proceeds. This "match" is basically a guarantee that one way or the other you'll get 100% of the money you paid into the gfc program at the time of closing.
The return on proceeds can come from one or more of the seven sponsorship methods listed below.
Principle ReductionPrinciple Reduction (up to $5,000 or more)
Reducing the principle amount of the purchase is one of the ways in which we can help you obtain equity in your home. If a property is appraised or valued at $100,000 and we get the purchase price reduced to $95,000, then we are in this example securing $5,000 in equity funding for you by reducing the principle purchase price. Principle reductions could equal as much as $15,000 or more depending on how much funding is received in other areas of the sponsorship process. Another fantastic benefit to a principle reduction is the fact that it lowers your loan amount causing your monthly mortgage payment to be lower. Over time that can add up to thousands of dollars saved in interest you didn’t have to pay. Here’s an example of how a principle reduction might occur: You complete the program and we source your home. We are at the point where we order the appraisals. There will be two appraisals. Let’s say that the contract price is $130,000. The first appraisal comes in at $132,000. The second appraisal comes in at $125,000. We go with the lowest appraisal resulting in a $5,000 principle reduction to your favor. In this example you will purchase this home that you selected and was custom renovated and right before closing instead of paying $130,000 you end up paying $125,000. Equity at ClosingFunding for equity at closing (up to $10,000)
Between the government & sponsorship funding we help you secure, you can expect to receive between $5,000 and $7,500 of proceeds at closing that is retained as equity in your home. This is another form of principle reduction because the loan amount is reduced proportionately by the amount of funding we are able to bring to closing on your behalf. In many cases we can secure say $5,000 in funding at closing and reduce the principle amount of the purchase by another $5,000 resulting in $10,000 of equity. Moving AssistanceMoving Assistance (up to $5,000 or more)
Moving can be expensive in more than one way. The moving truck, the movers themselves, the gas, the mileage, it all adds up. Not to mention the loss of income that you experience by taking time off work for the closing and the move itself. To help address these costs the Foundation can secure sponsorship funding to help you cover these costs. Not everybody will qualify for this assistance. Moving assistance eligibility is based on variables like your gross household income, the amount of overall sponsorship funding received and other variables such as the type of house, the area, the appraised value, etc. When funding is available and you are eligible, the proceeds would be paid after closing; approximately a week (up to 7 business days). The average amount of proceeds paid out to participants for moving assistance is approximately $300. This amount can be greater or less depending on the amount of funding received elsewhere in the transaction. In many cases a participant may not receive any proceeds for moving assistance it is really dependent upon many variables that are identified while completing the transaction. TransportationFunding for Transportation (at least $2,500 or more)
The purchase of a vehicle can be costly. Similar to the purchase of a home, you must factor costs to acquire the vehicle, conditioning the vehicle for use and then secondary costs like taxes, tag, registration and other required fees. Enjoy a $2,500 credit toward the retail purchase of a vehicle that is valued at $5,000 or greater. This credit is good toward reducing the principle cost of a vehicle and/or secondary acquisition costs. You will also save a significant amount of money by avoiding high interest rates on inflated prices, dealer fees, etc. That along could equal thousands of dollars in tangible monetary savings. Participants may use the credit towards a vehicle when their gfc balance reaches $7,500 as long as the purchase doesn’t jeopardize the housing program dti formula. Our advising team will collaborate with you on the best solution for securing reliable transportation both during and after you graduate from the program. The final purchase price is determined by reducing the retail value of a qualifying vehicle. The retail value will either be the KBB or NADA retail value. Graduates also receive a 10% discount off the retail value for all future vehicle purchases (for-life). The credit towards a vehicle can only be applied on vehicles that originate from our transportation program.
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Carrying CostsFunding for Carrying Costs (up to $5,000 value or more)
The Foundation will work with your sponsor to secure enough funding to help cover the costs of carrying your home while we wait to close. Carrying costs can vary in amounts and come from a variety of sources. These carrying costs include but are not limited to expenses like taxes, interest charges, utilities, county, city and/or state assessments and other various costs. After the renovation is complete, it typically takes up to 60 days to get to the closing table. The longer it takes the greater the carrying costs. Some of the carrying costs are factored into a budget when we secure it for you. If it takes longer than 60 days then carrying costs will exceed what was pre-budgeted. This is where the additional value of having a sponsor comes in. They usually continue covering those costs on your behalf while we work towards your closing. The ability to use your sponsor’s funds to cover the costs associated to keeping your home ready for you to purchase is priceless. Closing CostsFunding for closing costs (up to $5,000)
Between the government & sponsorship funding we help you secure, you can expect to receive between $3,000 to $5,000 of proceeds at closing to cover your closing costs. Closing costs include but are not limited to; the cost to secure the property from the seller, title transfer fees and other title company related expenses, realtor fees and any county, city, state or government fees or costs that may be charged. Transaction Costs
Custom RenovationFunding for a Custom Renovation (up to $5,000 in value or more)
When you complete the program and start the sourcing process with the real estate team, you get to choose the house you want in the area you want based on your purchasing power and preferences. You can go with a custom renovated home or you could go with a custom built new home. A renovation occurs when a distressed home is remodeled to like-new condition. Program participants have the benefit of not only selecting their home and having it completely renovated, but they get to participate in the selection process and preferences of the upgrades and repairs. Renovation budgets range from $5,000 to $25,000 or more. Approximately thirty percent (30%) of the actual renovation is considered to be a direct monetary gain to the program participant. During the reconciliation process prior to closing, we will account for this monetary gain as a credit to ensure we exceed the gfc balance. On a $10,000 renovation that would equal about $3,000 of value for you. On a $20,000 renovation that would equal about $6,000 of value for you. Whether you go with a renovation or a new construction home either way – you get to make certain selections and provide preferences. Paint – Enjoy selecting the color schemes and shades of color. Flooring – Enjoy selecting between tile, wood or carpet for your flooring. Appliances – Enjoy selecting whether you want white, black or stainless steel appliances. Kitchen Cabinets – Enjoy selecting whether you want darker or lighter shades of cabinets. Purchasing a home outside of our program means that you would have to take that home as-is and pay for any customization yourself. It could cost you thousands to get that home exactly how you want it. But with our revitalization concept, you automatically have the benefit of customizing your home pre-built into the plan. Home WarrantyFunding for a Home Warranty (up to $1,500 or more)
The Foundation will work with your sponsor to secure funding to pay for the cost of a one, two or three year home warranty. The home warranty covers the entire property with a policy designed to protect you from extraordinary costs for repairs after closing. We worked so hard to get you to the point of being able to purchase your home. We don’t want an unexpected issue like a faulty HVAC system or a leaky roof to cause you financial stress, especially in the first year or two of ownership. The warranty can be used to repair or replace just about anything in your home. You simply can call an 800 number and the warranty company will repair or replace whatever is defective. The cost of these home warranties can vary depending on which company is selected and how many years of coverage are selected. |
Accountability
When we first created our programs we figured that if we spend time and energy helping someone that they would naturally do what they’re supposed to do and complete the process. We learned quickly that the only way to ensure success was to create accountability by giving participants something to lose.
In order for you to “participate” in our programs you must have your “money” as collateral. In order to hold you accountable you must commit your money and it must be a significant enough amount to keep you motivated to continue with the process and see it through.
Payments made to the Foundation (gfc payments) are not refundable. That means that you have something to lose if you don’t do what you are supposed to do to complete the program. By requiring you to fund $10,000 we have a mechanism to keep you engaged. You stand to lose a substantial amount of your money should you fail to complete the process.
Why would you fail? Failure isn’t a result of doing the work. Failure is a by-product of laziness, impatience, poor work-ethic or unrealistic expectations.
The only way to offset these inherent flaws in your psyche is to keep you from your money until you achieve your goals and then credit it back to you using various sources of funding to account for it in such a way that you come out a winner in terms of money and personal growth.
We will provide as much information and resources as it takes to help, but you have to put your money on the line in order for the program to work. If there was nothing to lose we find that most people will give-up at the first sign of adversity or difficulty. Ask yourself this question.
Would you go to work if you knew there was NOT a paycheck at the end of the week?
In the same way, the only way we can ensure you complete the process and “stick-with-it” is to put your money plus all the other financial incentives on the line, which is the reason there are NO REFUNDS.
Accountability can only be enforced if you can’t get to your money. If you can’t or don’t want to put your money up as collateral then you will NOT be able to participate in our programs.
In order for you to “participate” in our programs you must have your “money” as collateral. In order to hold you accountable you must commit your money and it must be a significant enough amount to keep you motivated to continue with the process and see it through.
Payments made to the Foundation (gfc payments) are not refundable. That means that you have something to lose if you don’t do what you are supposed to do to complete the program. By requiring you to fund $10,000 we have a mechanism to keep you engaged. You stand to lose a substantial amount of your money should you fail to complete the process.
Why would you fail? Failure isn’t a result of doing the work. Failure is a by-product of laziness, impatience, poor work-ethic or unrealistic expectations.
The only way to offset these inherent flaws in your psyche is to keep you from your money until you achieve your goals and then credit it back to you using various sources of funding to account for it in such a way that you come out a winner in terms of money and personal growth.
We will provide as much information and resources as it takes to help, but you have to put your money on the line in order for the program to work. If there was nothing to lose we find that most people will give-up at the first sign of adversity or difficulty. Ask yourself this question.
Would you go to work if you knew there was NOT a paycheck at the end of the week?
In the same way, the only way we can ensure you complete the process and “stick-with-it” is to put your money plus all the other financial incentives on the line, which is the reason there are NO REFUNDS.
Accountability can only be enforced if you can’t get to your money. If you can’t or don’t want to put your money up as collateral then you will NOT be able to participate in our programs.
Ensures Sponsorship
The gfc funding concept is not only critical for motivating you while you’re in the program, but it’s also an important means to secure sponsorship funding.
Your sponsor is risking a significant amount of capital to purchase and custom renovate your home and then cover the carrying costs while we wait to complete the transaction.
Your sponsor knows that you are locked into the transaction because your gfc, your money is not refundable. If you bail on the transaction you lose your money.
You are motivated to complete the process, making their investment in you “less-risky”. The gfc program is attractive to would-be sponsors because it represents a safer way to invest their money. We specifically designed our programs to use sponsorship funding to achieve your desired results. Without sponsorship funding most of the aspects of the program would not work.
The gfc program ensures accountability to the program. Without this accountability the Foundation would not be able to solicit sponsorship at the time of sourcing. We would also not be able to operate the business and support the programs we offer.
We have determined that a financial commitment of $10,000 is enough to deploy our assistance and services while establishing the accountability mechanism that attracts and secures sponsors.
Your sponsor is risking a significant amount of capital to purchase and custom renovate your home and then cover the carrying costs while we wait to complete the transaction.
Your sponsor knows that you are locked into the transaction because your gfc, your money is not refundable. If you bail on the transaction you lose your money.
You are motivated to complete the process, making their investment in you “less-risky”. The gfc program is attractive to would-be sponsors because it represents a safer way to invest their money. We specifically designed our programs to use sponsorship funding to achieve your desired results. Without sponsorship funding most of the aspects of the program would not work.
The gfc program ensures accountability to the program. Without this accountability the Foundation would not be able to solicit sponsorship at the time of sourcing. We would also not be able to operate the business and support the programs we offer.
We have determined that a financial commitment of $10,000 is enough to deploy our assistance and services while establishing the accountability mechanism that attracts and secures sponsors.
Budgeting Payments
Some might think that it is nearly impossible to save $10,000. Don’t worry, we got you covered! You do NOT have to have to pay the entire amount at one time. Upon enrollment we complete a budget with you examining your income and expenses.
Once we establish that your income is greater than your expenses, we help you setup a savings plan and/or strategy.
If your expenses exceed your income then you are living beyond your means. Our objective is to address this behavior and “condition” you to live within your means and save money. We address debt and monthly expenses encouraging you to improve your spending habits. We help you reduce expenses to create a gap between your income and your expenses. This gap becomes the source from which you can make small manageable payments (installments) to the Foundation.
Over-time you become conditioned to save your money. Once you’ve funded the full amount required, we encourage you to continue saving money into a savings account that you control. The ability to save money is a good indicator of a fiscally responsible consumer.
Once we establish that your income is greater than your expenses, we help you setup a savings plan and/or strategy.
If your expenses exceed your income then you are living beyond your means. Our objective is to address this behavior and “condition” you to live within your means and save money. We address debt and monthly expenses encouraging you to improve your spending habits. We help you reduce expenses to create a gap between your income and your expenses. This gap becomes the source from which you can make small manageable payments (installments) to the Foundation.
Over-time you become conditioned to save your money. Once you’ve funded the full amount required, we encourage you to continue saving money into a savings account that you control. The ability to save money is a good indicator of a fiscally responsible consumer.
Consider the worm that goes into a cocoon and exits a butterfly. When you come into our housing program, you have challenges that we must overcome. You are not prepared or capable to purchase a home.
Our program like the cocoon is designed to change you, make you better than you were before. When you graduate and come out of the cocoon you are different then when you went into the program.
This new you has excellent credit, funds to close and the knowledge to go into a real estate transaction from a position of power. You can spread your wings and fly with confidence!
The reality is the “program” itself is not a real estate transaction. You have to realize that the housing program is a series of actionable steps taken by you and our advising team through consultations that will result in your ability to participate in a real estate transaction (at some point in the future).
The program consists of unlimited consultations that include advice and guidance on credit restoration, budgeting, debt reduction and other financial elements that result in your ability to complete a real estate transaction.
While you are in the program you are not involved with entities like the lender, an appraiser and a title company. These entities and others will be brought into the picture when you complete the program.
Financial aspects like transaction costs and your down payment are aspects of the real estate transaction that become relevant after completing the program. Participation in the program is NOT participation in a real estate transaction.
Our program like the cocoon is designed to change you, make you better than you were before. When you graduate and come out of the cocoon you are different then when you went into the program.
This new you has excellent credit, funds to close and the knowledge to go into a real estate transaction from a position of power. You can spread your wings and fly with confidence!
The reality is the “program” itself is not a real estate transaction. You have to realize that the housing program is a series of actionable steps taken by you and our advising team through consultations that will result in your ability to participate in a real estate transaction (at some point in the future).
The program consists of unlimited consultations that include advice and guidance on credit restoration, budgeting, debt reduction and other financial elements that result in your ability to complete a real estate transaction.
While you are in the program you are not involved with entities like the lender, an appraiser and a title company. These entities and others will be brought into the picture when you complete the program.
Financial aspects like transaction costs and your down payment are aspects of the real estate transaction that become relevant after completing the program. Participation in the program is NOT participation in a real estate transaction.