Buy the block through the new Buy Back Dayton real estate investment fund
A team of brothers and cousins are working to shake up local real estate and return home ownership to Dayton families through their new Buy Back Dayton fund.
We recently caught up with co-founder Joe Miles to learn more about Buy Back Dayton’s mission and how the Launch Dayton community can support.
Launch Dayton: So what is Buy Back Dayton?
Joe: It’s this idea of buying the block. We were inspired by Buy Back Baton Rouge — investors came together, purchased a bunch of land in the city, and allowed partners to be part of it. The majority of property in Dayton is owned by folks who live out of state. We’re trying to get property back into the hands of Daytonians who actually live here. So we’re raising a fund to use group economics to bring money from within the city together to purchase single-family homes. We’ll fix them up, rent them, and then the goal is to pair the renters with a credit specialist and mortgage broker, so they can purchase the home in a few years.
Why is this type of fund needed in Dayton’s neighborhoods?
We’re all born and raised in Dayton, we see the transition Dayton is going through, how downtown Dayton is morphing into this beautiful place to be. They’re fixing the bridges, so they’re about to push that development out into the city — there’s no better time to do this than now. We want to buy as much as we can, and put ownership back in the hands of Daytonians, versus outside folks buying up properties and continuing to raise rents. Also, in Dayton, 41% of the population is Black, but 41% of the real estate is not owned by minorities. We’re trying to help shorten the wealth gap, which right now is about 228 years in the making, according to Forbes.
How does the fund work?
The fund will operate for 5 years. The minimum investment is $100. In years 1 & 2, we’ll purchase and renovate properties. In year 3, we’ll refinance, so investors can opt to cash out at that point, or they can stay in for years 3, 4 & 5 as we groom tenants to purchase the properties, then cash out when the homes are sold. Then we’ll start over and do it again.
Who comprises the Buy Back Dayton team?
I bring a digital marketing and insurance background, as do Cory Hastings and Mickel Miles. Our fourth partner, Marcus Williams, owns a construction company.
Who can invest?
We accept non-accredited investors, meaning someone who makes less than $200k/year or whose net worth is less than $1M. So that really allows everybody to get a piece of the pie. Normally, people can’t participate in these systems. I’m by no means suggesting anyone use their savings for this, but skip McDonalds once in awhile, and invest. Anyone can participate, that’s the beauty of it, and I can’t wait to have a shareholders’ meeting in the Arcade, see everyone, take a drive to a couple of the homes, I’m excited for it.
When do folks have to get in on the action?
We’re planning to keep the investment window open until Sept. 1, then start buying properties in September.
Have you always wanted to be an entrepreneur?
I’ve been an entrepreneur since I was a kid. In fifth grade, I’d sneak candy in my backpack and sell it to other kids. The Starburst pack had 12 pieces in it, and I knew everyone loved the pink ones best, so I got my mom to buy me a big back of just the pink ones, and I’d count out 12 candies and sell them — I found out I could make 50% more than my competitor.
Why do you love what you do?
I love Dayton. Everyone always said it was boring, stores were leaving, but I love it, I love Dayton weather. My wife is from Vegas, and she always says, the thing about Dayton people is you all love your city. Dayton has a lot of abandoned homes, a lot of great homes that have gone down, but could be great again. I want Dayton to be what it once was, and I know we can’t do that with one fund, but I think this fund will help people in so many ways, not only the tenants and potential buyers, but investors being able to participate, actually see how that works. And the workers we hire to fix up the homes will be Daytonians — it will bring a lot of opportunities here.
Inspired to get involved and invest? Visit www.buybackdayton.com for full details.