The Business Behind Low Income Housing Tax Credit Properties with Denis Shapiro

A 98 unit property with about $15,000 in annual debt service caught Denis Shapiro’s attention for one simple reason. The debt was backed by a zero percent state loan that his team could assume.

Denis and his partners focus on Low Income Housing Tax Credit properties. Their strategy is to buy properties during the second 15 year affordability period, when the original credits have already phased off but income and rent restrictions remain.

Denis explains why these properties can trade far below replacement cost, why his team likes secondary markets, and why high occupancy can make the model attractive even with all the compliance work.

He also shares the story of a North Carolina transaction that became even more interesting when his team asked the seller to include another 41 unit property in Lynchburg, Virginia. The seller agreed.

Key Topics

• How Low Income Housing Tax Credit properties work
• Why Denis buys during the second 15 year affordability period
• Buying some properties for about $25,000 per unit
• The 98 unit Kinston deal with zero percent debt
• Adding a 41 unit Lynchburg property to the transaction
• Why bureaucracy creates both frustration and a barrier to entry
• Working with funds, individual offerings, and selected joint ventures
• Why Denis wants his company to depend less on outside investor capital over time

Guest Information

Denis Shapiro is an investor and operator with SIH Capital Group.

Website: sihcapitalgroup.com

Email: denis@sihcapitalgroup.com

LinkedIn: Search for Denis Shapiro

Call to Action

Denis says the easiest way to connect is to email him directly.

You can also visit sihcapitalgroup.com to review past deals or connect with him on LinkedIn.