Today we’re talking with Eddie Lorin, Founder and CEO of Impact Housing. a real estate investment trust that allows everyone to invest in real estate. Eddie shares his personal story—he lost his father when he was an infant and then also his mother when he was 17. He talks about the personal struggles he overcame and what he’s learned from them. Since he got into the real estate industry, Eddie has been on a crusade to provide affordable housing across America. He says one of the most important things we can do is put a roof over someone’s head. Over the past 30 years, Eddie has successfully purchased and transformed more than 180 thriving communities, turning blight into light, and involving approximately 40,000 apartment units nationwide.
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If you prefer to read, here’s a transcript of the interview!
Eddie: 00:01 I found that growing up and even through my thirties, I felt like I was running away from what it is and if you just face what it is, it’s not so bad.
Kathy: 00:17 Hello and welcome to The Inspire Cafe Podcast where we bring you conversations and inspirational stories of people overcoming adversity and then how they came out of it transformed with the positive outlook or outcome. People are incredibly resilient and we need to hear more of their stories. This is Kathy De La Torre.
Kathy: 00:38 Today we’re talking with Eddie Lorin, founder and CEO of Impact Housing or real estate investment trust that allows everyone to invest in real estate. Eddie today shares his personal story. He lost his father when he was an infant and then also his mother when he was 17. He talks about the personal struggles
Kathy: 00:59 came and what he’s learned from them since he got into the real estate industry. Eddie has been on a crusade to provide affordable housing across America. He says one of the most important things we can do is put a roof over someone’s head. So over the past 30 years, Eddie has successfully purchased and transformed more than a hundred native thriving communities, turning blight into light, and covering approximately 40,000 apartment units nationwide.
Kathy: 01:28 We’ll have a link to Eddie’s website and a transcript of this interview at TheInspireCafe.com. And if you enjoy the show, please share with your friends and subscribe wherever you find your podcasts. Okay, let’s get back to Eddie’s story.
Kathy: 01:43 So we’re here with Eddie Lorin, founder and CEO of Impact Housing, a real estate investment trust that allows everyone to invest in real estate. Would you say that’s accurate?
Eddie: 01:54 Yeah. Anyone and everyone.
Kathy: 01:56 Okay, good. So Eddie, I read that over the past 30 years you successfully purchased and transformed more than a hundred and 80 thriving communities covering approximately 40,000 apartment units nationwide.
Eddie: 02:12 Yeah, it’s exhausting.
Kathy: 02:14 Yeah. The 40,000 units. That’s incredible. Before we get into what you do and what your business does and very excited to talk to you and learn more about that, but obviously been in the industry for a long time and you’re very successful. I also heard you say that you’re on a crusade to provide affordable housing for everybody. Why affordable housing?
Eddie: 02:40 Well, I grew up a very modest means. My father died when I was 10 months. My mother when I was 17, so I put myself through a lot of turmoil and UCLA and you know, we never had a lot of money, but we always had the attitude, you can be poor, but you’ve got to be clean. The concept is everyone deserves a clean, safe, affordable place to live, to be treated with respect and dignity and they will stay, pay and refer their friends, and that’s our model. It’s very simple, but it’s very impactful because there’s so many places out there that are really not to standards. So there’s substandard housing that is the only thing that seems to be affordable. So we go out and buy older product and it affordable and make it a wonderful sense of community where people can be proud to call home.
Kathy: 03:35 Terrific. Now you said that everybody deserves a decent place to live and I’ve read that you’ve also said that one of the biggest burdens was trying to find housing while you were growing up. Can you share what it was like where you grew up?
Eddie: 03:53 I had a marvelous place to live. It was small and humble and there were five of us in one bathroom and three bedrooms and my mother made the best she could and that was always a house full of love and warmth. And I just thought everybody else deserved the same. So that’s all.
Kathy: 04:11 Oh, okay. I’m glad you for the clarification. So it wasn’t one of the biggest burdens trying to find housing while you were growing up.
Eddie: 04:19 No, no. But, struggling through the loss of being an orphan and trying to make my way in the world and try to fit in and all these other things. That was a hardship.
Kathy: 04:30 Sure. But how did you make that connection? So I know you lost your parents and that’s tragic. Why the deep rooted connection to your passion for affordable housing as opposed to something else?
Eddie: 04:45 See, it’s just the right thing to do. It seems to feel good. Um, I tried food, clothing and they ended up in shelter, the basics of how to make a living and I found that I have a knack for seeing properties and having a vision to transform kind of we say we make blight into light. So I just kind of had an affinity for it and enjoy it and I think that, you know, I like to go to very high end hotels and try to implement some of those things like the fake Gucci bag, you know, if you can’t afford a real one, you give them a fake. So we give, we give a and b amenities to c, c properties. So that’s, that’s the whole thing is give everybody, like a swab does what this does for less than half the price. Yes, that’s what we do. It’s called just the value proposition.
Kathy: 05:39 value proposition. So when you were 17 and your mother passed away, are you the youngest? I’m just curious. You already. Okay. So you were 17 and I read that you were about to start at UCLA. Yeah. First of all, because you were 17, did you and your siblings have to live apart? Are you all stayed together?
Eddie: 06:04 they were older and married and moving on and it was good timing, I guess you could say. My one brother and his wife moved back in when my mom was sick and got me through graduation and we buried her the day of the prom and I actually spoke at graduation about inspirational things. God knows, looking back how I did that, but you know, I spoke to 3000 people about hope and just moving forward. So, you know, you do things that they, uh, or epinephrine or whatever they say the fight or flight, you know, I’m, I’m a fighter, so I just fought my way through it. I had many bouts of depression, walking. I remember walking on Bruin walk and UCLA and a fog wondering what the hell’s going on? Where am I ever gonna? Have these skies clear up? And um, eventually, you know, I got my solace from looking forward and um, there was a book called Man’s Search for Meaning by Viktor Frankl, a Holocaust survivor. And I found that you can’t be positive unless you have something to look forward to. So instead of looking back, I just looked forward and kept going.
Kathy: 07:23 That was gonna be my next question. What or who? Or was there somebody in your life that was reaching out to you to give you inspiration to keep going?
Eddie: 07:36 It’s our own journey. It’s our own personal journey no matter who you are. So for me, I just had to go through my process and you know, I glommed onto a lot of positive thinking books. My Bible to this day is a Dale Carnegie, How to Stop Worrying and Start Living and these are things that are just common sense, basic things to follow, but they’re very hard to do. So I almost brainwashed myself to be happy and that’s how I got out of it. And then over the years I went through various different phases and therapy and try to get more strong and more mature. But often when you have a trauma early in life, you find yourself running away from that trauma so much that you’re not even dealing with what it is. And until you stop running and allow it to catch up to you, it doesn’t seem so overwhelming as the lion that’s chasing you.
Kathy: 08:36 So that makes, it does make sense. I can’t even imagine your mom or my mother passing away being so young you were 17 and and not checking out like you were saying, walking in a fog because it would be understandable for somebody to say, just, you know, throw up their arms, quit school because they can’t focus and say, why me? Did you ever experience anything like that?
Eddie: 09:06 Sure but you can only allow yourself to do it. We’re all entitled to feel sorry for ourselves, but you can’t let it cripple you. I think that we all fight with that every day of our lives still, you know, get up sometimes in the morning say why me this one has that they’re more successful or they got an easier life or they got handed a bunch of good looks or riches or whatever. I didn’t poor me. Okay, so you feel sorry for yourself for a minute or two, but then get, get your ass up and go. But it’s human nature. It’s normal. And I found, you know, talking about running from the lion, I, um, I found that growing up and even through my thirties, I felt like I was running away from what it is. And if you just face what it is, it’s not so bad,
Kathy: 10:02 It’s not so bad. And what do you mean you were running away from something in your thirties?
Eddie: 10:07 All the fears and the jealousy and all the insecurities and all those things that just make you propel you to run away from it rather than just face it, face it. It’s just not that bad. Like I said, okay, I can do this and I can handle whatever else comes my way tomorrow and the next day I can, I can figure out how to function and how to maneuver and I’m fully equipped based on my experience to handle whatever comes.
Kathy: 10:38 I’m curious, when you made that shift, you were running away, but then you turn to face it. Was there something that triggered you to make that turnaround?
Eddie: 10:48 Yeah, I had some issues with business partners who are very unfair and I’m too nice and I was, I gave in or I shouldn’t have. I know I say I’m a fighter, but in this instance I didn’t. You Know, I gave in to make to placate and move on. Oftentimes we say divorce is expensive because it’s worth it, you know, and it’s not my, my marriage, I’m married for 25 years, I believe married. It was a business and you know, I just cut bait and I felt the same trauma that I felt when I was younger and I says, you know, I never really dealt with the trauma that first got me when I was younger. So I went through a series of opportunities to get clarity on my life and it’s all mature level, you know, you grow and mature and blossom as a result of facing what you’ve never faced before, I guess.
Kathy: 11:51 Right. And I think sometimes we don’t realize that there’s something there that needs to be faced in it. It doesn’t reveal itself until we’re in another trauma or crisis.
Eddie: 12:05 Yeah, they call it re-trauma or PTSD.
Kathy: 12:07 Yes. Right. Well, I’m happy to hear that you felt like you overcame it and I was just curious if there is something that you could say to your 17 year old self when you were walking through that fog on campus, what would. What would you want to say to yourself after all these years?
Eddie: 12:31 It will be okay. You can. You can handle everything you set your mind to just be kind to yourself. None of us are kind enough to ourselves. Yes, I was. I was not kind to myself. I was very impatient, intolerant than running away from just facing reality and being present, so just be present.
Kathy: 12:53 Be present. Those are very nice words for a 17 year old to hear.
Eddie: 13:01 Probably wouldn’t have listened. In fact, there were probably many people who told me those things and I just, you know, we’re all in our own journey and we accept having two daughters that are now in college. No matter what I say til I’m blue in the face, they’re going to listen to relate when they finally get the message, when they are ready to listen,
Kathy: 13:18 When they’re ready to listen. It’s so funny. When I talked to my dad and dad, you remember when you told me when I was a kid this and he goes, you remember that? And sometimes it just doesn’t click until years later, but I think it sinks in and at some point. So keep telling your daughters that good advice,
Eddie: 13:44 I do. Oh, dad, there’s always a saying, words of wisdom.
Kathy: 13:47 And you know what? They’re going to start sharing it with their own kids or friends and then it’s all worth it. It’s all worth it. So Eddie, I’m curious, how did you get into the real estate industry in the first place? I mean, did you study business or what did you study?
Eddie: 14:06 I was a psych major. What a surprise. You know, I worked for a food broker and I didn’t. I didn’t really like the food business and I worked for selling clothes and know Nordstrom, whatever. That wasn’t for me, really. And then I just found shelter. I found real estate and I thought most of the wealth in this country is made in real estate. So I ventured off and just got in the business, started in office leasing than I did a development than shopping centers and net lease deals and ultimately ended up in the apartment business and found that that was really the best suited for my talents. And you know, cause I do relate to making a happy resident. That’s the most important thing most people don’t even focus on who pays our revenue stream and that’s people under our roofs that thrive. So I just found a knack for that. I love transforming properties. And so that’s, that’s Kinda how it all evolved.
Kathy: 15:11 Okay. So let’s talk about it. Your company, Impact Housing, what does it do?
Eddie: 15:17 We take, like I said, blight and make light our first acquisition in the REIT because it’s a new concept of crowdfunding where anyone and everyone, regardless if they make a lot of money or a little bit of money can invest now because of the jobs act which passed in 2012. So the whole concept of crowd funding is a great way to democratize the ability to invest. So I’m doing the same thing I’ve always been doing for many years. I’m just offering it out to the individuals who I never could have come in before with a minimum investment of a thousand dollars. It used to be that only wealthy people who made a couple hundred thousand dollars a year or a million dollars in net worth or called accredited investors could invest. Now, like I said, anyone can invest, which is really a great opportunity. So we’re going direct to the consumer, so to speak, to have them invest with us, avoiding a lot of the Wall Street load.
Kathy: 16:14 Right. So first of all, can you explain for everybody what is a REIT, and why is yours different than others?
Eddie: 16:25 A REIT is a real estate investment trust. There are many REITs across the country. It’s not a new concept. It’s a way to pull them money through Wall Street to buy multiple assets. So, um, most of the REITS, they buy shopping centers, office buildings, they buy apartments, but nobody out there is directly strategizing and targeting real estate for investment with an impact. We look for a triple bottom line. The first bottom line is of course financial–no one would invest if there’s no return. Second one is an environmental return, saving water, saving electricity, uh, changing where people live. And the third is a social return giving people a nice, clean, safe, affordable place to live. And those social programming that we do, we’ll talk about in a minute, called happy along with only renting to people who make a certain level of area median income. What’s area meeting income?
Eddie: 17:28 It’s every single county has a certain number that people make and affordable housing is targeted based on a percentage of that amount of area median income. So for instance, if it was in round numbers, 50,000 affordable housing at 80 percent of AMI would be someone has to make no more than $40,000 to rent in our apartment. And if we target and structure the rents that way, no one should pay more than 30 percent of that $40,000 or 12,000 a year for their rent. So that’s how you make things affordable. So that’s the social return from giving affordable housing to people who need it. The biggest problem in our society, in my opinion, and um, the other is we have what’s called Happy Healthy Apartment Property Initiative and what we do is, since we’ll have 100, 200 units and a central clubhouse, what better than when people live in this environment to give them health and wellness programming, afterschool programming and giving them a really nice cultural center to come together and learn. So you can go the YMCA, you can go to the church or the synagogue, but it’s Kinda hard when you’re working hard. Two jobs, it’s much easier to get them right where we can help them right where we live. They live.
Kathy: 18:56 I read on your website that more than 35 percent of people live in apartment communities across the US, is that right?
Eddie: 19:06 Yeah, it’s a lot of people.
Kathy: 19:06 And you said that people that live in apartment communities, they struggle with higher risk of health problems, chronic diseases.
Eddie: 19:16 It tends to be on that demographic. It’s not a matter of living in an apartment that you get sick. It’s just a matter of socioeconomic access to education, to some of these properties are in food deserts, which we can’t even find a, let’s say a whole foods within miles and miles, so they just don’t even know. And when you can take some of these underprivileged kids and teach them how to grow in our community, garden corn and they can actually eat what they’ve grown. The eyes wide open are amazing. It’s the wonderment that they didn’t even know they could do anything but buy a burger. So it’s more existential than just, um, the programming. It’s really getting to see these people come to life when they realize that they can have a better life, a healthier life.
Kathy: 20:08 So let’s talk a little bit more about these programs specifically now know you mentioned the gardening, learning to grow your own vegetables. What other kind of programs help these communities?
Eddie: 20:22 A fitness classes. Sometimes they’re Zumba. It just depends on the property. Not every property has its just like every child has its own DNA is certain things are more conducive than others just based on demand. We have walking clubs and one of our properties, we have outdoor fitness. Uh, we’ll have a smoothie night every week. Um, we’ll do yoga. It’s just a matter of building community through health. That’s the best way to describe it.
Kathy: 20:51 Well, it sounds like a lot of fun too. Now, are these programs specifically for your own projects or is it.
Eddie: 21:00 That’s what we focus on our own properties and you know, we’re open to other assets, but the owners have to be committed. That’s the hard part is finding owners that are committed to make sure that they care about the resident and they want to provide not only good value in service, but want to educate and that’s not easy. That’s why we’re unique.
Kathy: 21:22 I see. So for people who invest in Impact Housing there, they’re doing impact investing.
Eddie: 21:32 Absolutely. Maybe we should talk about what is impact investing. Impact investing is doing well by doing good. You actually can make a profit with a purpose. And this next generation cares a lot more about my generation, I’m embarrassed to say, and they want to make sure that they use their dollars wisely and don’t invest in things that don’t help society. So you know, you can get very a existential about that too. But I think the millennial generation really, really is focused on profit with a purpose and there are plenty of opportunities to invest for good, not only in real estate, I affordable housing. To me, I think the most important thing is putting a roof over someone’s head besides feeding them, clothing them. And we talked about food, clothing and shelter, but other impact investments include solar energy to save though carbon footprint, investing in micro loans and small and difficult neighborhoods and all over the world. So the whole category of impact investing is vast and it covers almost every investment. Just want to make sure that is this investment doing good or is it ripping our world apart? And that’s the essence of impact investing.
Kathy: 22:45 So would you say that investment companies, which has that social aspect of investing for good is on the rise?
Eddie: 22:52 Well, it’s growing and people are getting more and more involved. Most of the major banks, including Goldman Sachs and wells, they are all starting an impact division. So what’s happening is the foundations and philanthropic and civic minded investors are starting to demand these investments and it’s changing. So probably in 10 years you’re going to see impact investing is one of the biggest categories there is. Great.
Kathy: 23:22 So where are your projects? Are you working across the United States or in certain regions?
Eddie: 23:28 I tend to like certain areas right now. I like, um, I like the mid Atlantic. We’re working on a deal for impact. It’s a high rise owned by a very wealthy institution that has let the property go to the shambles. It’s really sad. So we’re teaming up with the county to create affordable housing for 10 years, which is really an awesome thing to do. So we’re basically taking what’s called Noah naturally occurring affordable housing. You can build new affordable housing or you can buy existing properties and deem them affordable. So that’s my mission is to take the, you know, at 40 percent of what it costs to build new. We make it affordable and keep it affordable based on area meeting income like we talked about before. So, um, I love the mid Atlantic. We’re in Vegas, we’re in Dallas or in Florida and uh, we’re here in California so, you know, I’ve, I’ve invested across the country over my career, but I, certain markets that I like and I have certain relationships and you know, my most famous line is good deals are not found. They’re made any deal can be a good deal if you roll up your sleeves and make it happen
Eddie: 24:40 and make it happen. Yes. And so do you see yourself expanding to other states or would you see this growing for Impact Housing at all?
Eddie: 24:52 Sure, yeah. Never a good time to do bad or a bad one. So we will find opportunities. I’m involved in this new concept. I’m on a coalition in DC called the opportunity zones. It’s part of the 2017 tax act where people can differ their gains on anything, stocks, bonds, whatever, real estate and invest in distressed communities. So we’re forming a fund to do that and that’s going to hopefully change things dramatically for these low income areas. Did you know that only three states in this country get 75 percent of the venture capital money in the last hundred years and those are California, New York and Massachusetts and the rest of the country is starving for investment,
Kathy: 25:45 No, I did not know that.
Eddie: 25:49 And it sits really dramatic to think that there’s been no impetus for people to invest in these other communities. So that’s what this opportunity zone is great about this new part of the tax code. So that’s exciting. So there’s a lot to be optimistic and pessimistic about.
Kathy: 26:09 I’ll lean to the positive. I mean it sounds encouraging about these new programs and the way people can invest. So how does someone get started in investing in and for their impact investment?
Eddie: 26:26 Well the Internet is the best place to learn and there are plenty of offerings out there. You can go to your financial advisor of course, if that’s what you’re wanting to do and tell them you want to change your, your investment strategy to impact from anything that has it’s polluting the world or polluting society to invest with us of course, if you feel confident to do so. And that’s a, just find us at www.impacthousing.com and um, you know, the more we learn, knowledge is power and if we can change the world one apartment at a time, at least I’ll do my share and everybody else can shift their, their dollars toward making purpose and meaning in this life. Maybe it will make a difference.
Kathy: 27:16 Well it sounds like you already are and I really enjoyed listening to your nonprofit. They HAPI program and I wish there were more programs out there like that. So it just sounds terrific. Have you had any personal feedback for the people who are benefiting from these programs?
Eddie: 27:38 Yeah, they love it. Thirty, 40 kids, you know, tends to be more of the kids that participate unfortunately because the parents are working, but whatever it is power we can hit them. We can work through the kids to the parents. I’ll have 30, 40 kids in an afterschool program everyday. That’s a lot. That is a lot and that’s an impact in itself and as the parents pick them up and see that the friendships are made and get to eat, the vegetables that have been grown. I mean it’s really very, very rewarding.
Kathy: 28:11 Well, it sounds like it. Eddie, is there anything that you’d like to share that we haven’t covered?
Eddie: 28:18 I think I’ve shared enough. You got a lot out of me here.
Kathy: 28:22 Okay. So if anyone wants to connect with you, how would they reach you?
Eddie: 28:28 Through the website Impact Housing.com. You can send an email, I think it’s info and I’ll get it.
Kathy: 28:34 Okay. Terrific. Eddie, thank you so much for sharing your personal story and creating the impact Housing and HAPI. You’re doing a lot of good and you’re inspiring others, so thank you.
Eddie: 28:48 Thank you. It’s what it’s all about. Pay It forward, pay it forward.
Kathy: 28:52 You’ve been listening to The Inspire Cafe Podcast. You’ll find the show theinspirecafe.com, and also we’re on facebook, instagram, and twitter. If you’d like what you’re hearing, please subscribe and share with your friends until our next conversation, thank you for listening.