By CultureBanx Team
Being able to buy properties in your neighborhood is an idea many people have, but may not have a lot of extra cash to make the dream a reality. This is where Kwaku Osei’s Cooperative Capital comes into play, by allowing residents to pool their money together, as little as $1,000 into a real estate fund. They are starting with the Detroit real estate market with plans to launch community based funds that criss cross the country. “This is the right time because there is a lot of growth and more people can benefit from it. All boats can rise if there’s even distribution of ownership and we’re trying to create a bridge for that,” Osei said. It’s a simple process that starts with an investment committee who reviews and rates all opportunities and then the larger group of investors will vote on the top five. Cooperative Capital will determine if the investment can produce at least a six percent annual rate of return. “We want to become skilled at helping communities aggregate capital. Giving residents an equity stake in their own community.” The fund also views this as a way to increase financial literacy and plans to offer an online class called Get Financially Lit that teaches the basics of finance and investing. Right now Cooperative Capital is two and half months away from closing its first fund and raising one million dollars. There are already 20 other cities outside of Detroit ready for this model including Cleveland, Oakland and Baltimore.
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