From Teenage Entrepreneur to Leading Affordable Housing Developer with Kathy Makino-Leipsitz

Join Brian for an inspiring conversation with Kathy Makino-Leipsitz, a pioneering affordable housing developer who has spent over 30 years transforming distressed communities through the Low Income Housing Tax Credit (LIHTC) program. From buying her first duplex at 19 with $2,500 down to completing 22 tax credit developments, Kathy shares her remarkable journey and the lessons learned along the way. What You'll Learn: How a father's disability at age 12 sparked an entrepreneurial spirit that led to real estate investing The fundamentals of LIHTC (Low Income Housing Tax Credits) explained in simple terms - why it's the "most magical tool" for affordable housing The difference between 9% and 4% tax credit programs and why one is significantly more competitive How LIHTC creates beautiful, dignified, affordable housing that doesn't look like "typical" affordable housing Why Section 8 housing can trap families in poverty while tax credits provide a pathway out The devastating impact of losing $5 million in historic tax credits on a $36 million development Key mistakes to avoid in affordable housing development and the importance of staying focused Key Timestamps: [02:15] - Kathy's origin story: How her father's heart attack changed everything when she was 12  [08:30] - The entrepreneurial beginnings: From selling candles door-to-door to buying her first duplex at 19  [12:45] - Discovery of the LIHTC program and her first 64-unit development in 1995  [18:20] - LIHTC fundamentals explained: How 9% credits work and why they're so powerful  [25:10] - The difference between LIHTC and Section 8 housing - and why one builds wealth while the other traps families  [32:45] - The Palmer Park project disaster: How losing historic tax credits cost $5 million  [45:20] - Current project: 54-unit veterans housing in Florida using 4% credits  [48:15] - Top lessons learned: Stay focused, avoid politics, and take calculated risks Get in touch with Kathy Kathy Makino-Leipsitz Website: https://www.shelbornedevelopment.com/ LinkedIn: https://www.linkedin.com/in/kathy-makino-leipsitz-13bb796/ Email: [email protected] Resources Mentioned Low Income Housing Tax Credit (LIHTC) Program - The federal tax credit program that has financed over 3 million affordable rental homes since 1986 Historic Tax Credit (HTC) Program - Federal program providing 20% tax credits for rehabilitating historic buildings "Nothing Down" book - Real estate investing book Kathy read at 16 that started her journey Michigan State Housing Development Authority (MSHDA) - State agency that allocates tax credits in Michigan Get in touch with Brian Last Best Partners' Website: https://www.lastbestpartners.com/ Brian's LinkedIn: https://www.linkedin.com/in/brian-seidensticker-90117021 Podcast LinkedIn Page: Chapters (00:00:00) - How to Start a Business When You're 16(00:00:55) - Developers: Distress to Success(00:09:59) - LIHTC Tax Credit(00:15:36) - Section 8: The Magic Tool for Affordable Housing(00:22:05) - Immigrant Homeownership Tax Credit(00:26:01) - On the 4% vs 9% Housing(00:32:14) - Detroit real estate: The bad experiences(00:37:47) - Local developer on historic tax credits(00:41:40) - Projects that keep you motivated(00:42:44) - Detroit Mayor Mike Duggan on His Own Projects(00:48:51) - Carve Outs(00:51:04) - When Can I Get This Deal Closed?(00:51:46) - Detroit Builders Welcome First Women

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