“Everybody needs housing,” Davis said. “We have this wonderful commodity to advance well-being across the country.” The partners travel weekly and often revisit communities where Equistream actively bought properties in 2006 “in the worst markets, in the worst parts of those markets and on the worst streets in those markets” and now are reward- ed with revitalized neighborhoods. For example, in cities like Detroit and Philadelphia, where Equistream purchased large packages of housing, it’s paved the way for locals to contrib- ute to the transformation. Hipsters are moving into neighborhoods, fixing up houses, starting coffee and art stores, turning vacant lots into community gardens and opening ethnic restaurants. “It’s exciting that we actually have a big hand in helping turn those neigh- borhoods around,” said Davis. The partners are happy to turn new investors into seasoned ones, resur- rect sad properties, enhance com- munities, turn renters into unlikely homeowners and make a profit for themselves and their families at the same time. It has all been possible by embracing properties where some investors fear to tread. “Focus on the profit and not the product,” Davis said. “Too many people are looking for the pretty deal —and pretty can make you money—but the new pretty is these little ugly houses that have been discarded by everybody.” Davis adds that with the right family, a so-called ugly house can provide a lifetime of help to a family and still bring double-digit returns to an investor. “I would encourage readers to think out of the box of what’s traditionally done in real estate and stop following real estate trends and start offering people the opportunity to do well financially by buying low and selling high and offering seller terms to peo- ple who otherwise would never be able to do anything but rent,” Davis said. • MAKING A PROFITWHILE MAKING A DIFFERENCE
house his landlord wouldn’t fix, have made big improvements while paying less per month on owner financing. The house—which Bates sold him for $11,000—is
PERSONNEL FILE NAMES: Chuck Bates and Kent Davis
now worth more than $70,000 thanks to the owner’s hard work. “He would never have had that oppor- tunity if Kent hadn’t started doing what he does,” Bates said.
COMPANY: Equistream
WEB: www.equistream.com
PHONE: 813-982-4004
FIRST REAL ESTATE DEAL: Chuck: Mobile home purchased for $11,000 cash and sold for
$18,000 with $2,000 down, 10 percent in- terest and 72 months. ROI of 37.4 percent. Kent: I purchased my first property with my older brother when I was 20. Our intent was to capitalize on the boom that Southern California was experi- encing. We were able to
TURNING AROUND COMMUNITIES Although Equistream began buying pools of property for in- vestment, Davis and Bates realized over the years that they could help season small investors and increase homeownership. Their five-year goal is to place 10,000 renters in homes as homeowners. The partners are enjoying both the double-digit returns and the ability to offer “the wonderful gift of home- ownership at an affordable price.” “We’re helping revitalize com- munities that have been given up on and returning houses that were hurting neighborhoods,” Davis said. “We’re converting them. The lights are back on. Taxes are being paid.” Equistream is able to run a profitable business and serve others because its founders focus on non- traditional properties that otherwise wouldn’t perform, wouldn’t appraise or qualify for HUD. And the buyers, who most likely wouldn’t qualify for traditional financing, can pay less a month for homeownership than they were paying in rent. “Our heart is to be able to help nonprofit organizations,” Davis said. So the team volunteers in the Tampa community and in other areas where they do business. They rehab homes, set up soup kitchens, get single moms in hous- es and even give away homes.
resell the property in short order, making us a handsome profit. Thanks to the timing and property location, we were able to capital- ize on the opportunity with
no experience.
GUIDING PRINCIPLES: Chuck: The tortoise won the race. Be pa- tient and trust your system. It worked for the tortoise. It will work for you—if you have a good system. Kent: From an early age, I have lived by the commitment to treat others as I wished to be treated without reciprocity. When business opportunities provide the possibility of helping others while making money, I’m most gratified. WHAT MOST PEOPLE DON’T KNOW ABOUT YOU: Chuck: I can catch 40 quarters off my elbow into one hand. Kent: I love to design and make cakes as a hobby.
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