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OUR PROJECTS

Help Us Transform Lives - Support The Sage House Foundation's Affordable Housing Initiative

 

Dear Friends,

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The Sage House Foundation is dedicated to revitalizing our community by rehabbing neglected and deteriorating houses in Wilmington, DE, and offering them as affordable housing. We believe that everyone deserves a safe, stable, and affordable place to call home, and with your help, we can make this vision a reality.

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The Problem: In Wilmington, many houses remain abandoned and in disrepair because they are not economically viable for investors to purchase and rehab. The high costs of renovation and the current market rents mean that investors cannot sustain the cost of ownership and maintenance. As a result, these houses stay vacant, contributing to urban blight and depriving families of much-needed affordable housing options.

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Our Solution: The Sage House Foundation aims to break this cycle by using donations to purchase and rehabilitate these derelict properties. By transforming these houses into livable, affordable homes, we can offer families a fresh start and help rejuvenate our community.

Why We Need Your Support:

  • Acquisition Costs: Donations will help us buy these abandoned properties that would otherwise remain neglected.

  • Renovation Expenses: Funds are needed to cover the high costs of bringing these homes up to modern standards, ensuring they are safe and comfortable for future residents.

  • Affordable Housing: Your contributions will enable us to offer these rehabilitated homes at rents that are truly affordable, supporting low-income families and individuals.

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Partnerships:

  • Local Contractors: We are partnering with local contractors to ensure quality renovations while supporting local businesses.

  • Apprenticeship Opportunities: We are collaborating with the New Castle County Vo-tech school district trade program to provide students with valuable apprenticeship opportunities, gaining hands-on experience while contributing to the community.

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A Personal Commitment: One of our founders, Eric Foraker, is a licensed Delaware real estate agent. Eric generously donates his commission from each Sage House Foundation purchase back to the foundation, further supporting our mission and ensuring every dollar goes towards creating affordable housing. Eric is also a licensed contractor and real estate investor.

 

Your Impact: By donating to The Sage House Foundation, you are directly contributing to a brighter future for Wilmington. Your generosity will help us transform blighted properties into vibrant homes, reduce homelessness, and foster a stronger, more resilient community.

 

Join Us Today: Together, we can make a significant difference. Every donation, no matter the size, brings us closer to our goal of providing affordable housing and revitalizing our neighborhoods.

 

Donate now and be a part of the change. Visit our donation page here to contribute.

Thank you for your support and dedication to making Wilmington a better place for all.

Sincerely,

The Sage House Foundation Team

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The Sage House Foundation is a 501(c)3 registered non-profit. Donations are tax deductible.

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Example Breakdown of Costs for Purchasing and Rehabbing a House

1. Purchase Price: $60,000

  • Initial Investment: This is the cost to acquire the property.

2. Rehab Costs: $100,000

  • Structural Repairs: $30,000

    • Foundation repair, roof replacement, and major structural fixes.

  • Interior Renovations: $40,000

    • Kitchen and bathroom remodels, flooring, drywall, and painting.

  • Mechanical Systems: $15,000

    • HVAC, plumbing, and electrical system upgrades.

  • Exterior Improvements: $10,000

    • Landscaping, siding, windows, and doors.

  • Contingency Fund: $5,000

    • Unexpected repairs and overruns.

3. Incidental Costs: $10,000

  • Permit Fees: $2,000

    • Required city or county permits for renovations.

  • Inspection Fees: $1,000

    • Home inspection, pest inspection, and any additional required inspections.

  • Utilities During Rehab: $1,500

    • Electricity, water, and gas during the renovation period.

  • Property Taxes: $1,500

    • Taxes accrued during the renovation period.

  • Insurance: $1,000

    • Property insurance to cover potential risks during renovation.

  • Legal and Closing Fees: $3,000

    • Costs for closing the purchase, legal consultations, and other transactional fees.

Total Estimated Rehab Cost: $170,000

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Breakdown of Ownership Costs for an Investor

1. Mortgage Costs:

  • Loan Amount: $160,000 (Purchase Price + Rehab Costs - 20% Down Payment)

  • Interest Rate: 7.75% (Fixed)

  • Loan Term: 30 years

  • Monthly Mortgage Payment: Approximately $1,148

2. Rental Income:

  • Average Rent: $1,650 per month

3. Operating Expenses:

  • Property Management Fee: $165 per month (10% of Rent)

  • Repair Contingency Fund: $83 per month (5% of Rent)

  • Property Taxes: $150 per month (Estimated)

  • Insurance: $100 per month (Estimated)

4. Monthly Cash Flow:

  • Total Expenses: $1,648 per month

    • Mortgage: $1,148

    • Property Management: $165

    • Repairs: $83

    • Taxes: $150

    • Insurance: $100

  • Net Monthly Income: $2

This detailed breakdown shows how the high costs of purchasing, renovation, and maintaining a property can leave investors with minimal or even negative cash flow and does not account for vacancy, late or non-paymeny of rent and other potential costs. This economic reality often leads to properties being abandoned, as they are not financially viable for investors.

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Why Your Donation Matters: Your contributions will help The Sage House Foundation purchase, rehab, and offer these homes as affordable housing, thereby revitalizing our communities and providing much-needed support to low-income families.

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