Invest With Us
Building Stronger Communities
At FNX Development, we are working towards a future where everyone has access to safe, well-designed housing that meets their needs. Our affordable housing projects are designed to give tenants dignity and independence, while also contributing to sustainability and helping to reduce the overall cost of living. We believe that everyone should have the opportunity to thrive in a home that is both affordable and well-suited to their needs.
Read on to learn about how you can invest in secure and innovative real estate projects typically reserved for institutions and large investment funds. Diversify your portfolio, while securing a better financial future.
FNX Impact Development brought to you by FNX Development: Profitable Investments with Societal Purpose
Imagine an investment opportunity that not only offers the security of stabilized multifamily properties, above benchmarked risk-adjusted financial returns, but also makes a tangible difference in society. Would you seize it?
FNX Impact Development merges the mission of enacting positive societal transformation with the aim of achieving positive financial gains. For everyday investors, FNX opens the door to the real estate investment world, focusing on urgently required affordable housing projects demanded throughout the Los Angeles market.
Uniting social commitment with rigorous investment methodologies, FNX challenges the traditional paradigms of real estate investing. Securing remarkable returns through lower-risk investment vehicles while championing meaningful change are not mutually exclusive endeavors. You can participate in the solution by investing in this offering and earn a forecasted return on your investment of 100% within a 5-year timeframe.
Why Invest With Us?
Capitalize on a lower-risk market fueled by the increasing demand for affordable housing
Projected 100% return
on investment within 5 years
Enjoy stable passive annual cash flow, a stark contrast to high-risk assets such as equities and cryptocurrencies
The Los Angeles Housing Crisis
Los Angeles is currently on the brink of a housing transformation, and leading this change is FNX, led by the seasoned founders who are reshaping the city’s affordable housing landscape.
After forging impressive paths in the world of market-rate real estate, the founders of FNX have recently launched an innovative capital raise, creating a new opportunity for every day investors typically only available for accredited or institutional investors.
The FNX Team stands united with a vision that promotes everyone's best interests - from the residents of Los Angeles in need of affordable housing, to the investors backing the solution while seeking stable returns on their funds. Through the creation of new top-tier, eco-friendly affordable housing, FNX is not just responding to a pressing social issue, but actively crafting a sustainable long-term solution. The aim? To address Los Angeles’ housing crisis while delivering financial rewards to our investors.
Investments in FNX are specifically earmarked for affordable housing currently raising tranches of $5 million, specifically earmarked for affordable housing ventures throughout the greater Los Angeles market. The selection of these opportunities is steered by meticulous, data-driven research and analysis.
What makes this capital raise different is its accessibility. Previously such investment opportunities were simply not available to everyday investors. The FNX Team has democratized the process by offering:
An investment environment characterized by minimal risk, buoyed by the ever-increasing demand for affordable housing.
Predictable, annual passive income, serving as a counterbalance in investment portfolios that may be heavily skewed towards more volatile assets, such as cryptocurrencies and general equities.
A forecasted return on investment of 100% within a 5-year timeframe.
Addressing the Needs of LA's "Missing Middle"
Housing affordability in Los Angeles doesn't just affect the city's poorest; it significantly impacts the Missing Middle. This segment, composed of middle- and lower-middle-income households, is caught in a challenging situation. Even though they play pivotal roles in the city's fabric, escalating costs are making housing increasingly elusive for them. Today, everyone from academics to our elected officials, agrees that the problem is rooted in lack of sufficient housing supply and the only sustainable solution to the housing crisis is to build our way out.
Comprising approximately 2.5 million residents, or 65% of all LA households, the Missing Middle is an expansive and diverse group making up the city's educators, builders, protectors, and countless others from varied walks of life. Surprisingly, HUD (the Federal Housing Agency) reports that even households with incomes as high as $91,000 fall into this category. In Los Angeles, it's not uncommon for most families in the Missing Middle to allocate over half their earnings towards rent.
The Current Home Affordability Landscape
The prevailing trend in housing development in Los Angeles over the last 20 years has leaned heavily towards luxury units, leaving the Missing Middle high and dry. These individuals and families, who can't afford the soaring market rates and yet don't qualify for most subsidized options, find themselves caught in a perilous bind. They are increasingly nudged into housing previously earmarked for the economically disadvantaged. This cascades into two alarming outcomes: rents for these housing segments skyrocket, and those truly in need are pushed out—sometimes into homelessness.
The Disturbing Math
The numbers from 2014 to 2021 paint a disturbing picture. While 14,000 new affordable housing units saw the light of day, a concerning 111,000 units transitioned from affordable to out-of-reach. That's a staggering net deficit of 98,000 homes for those who need them most. Developers remain focused on the high returns of market-rate units, the affordable housing stock dwindles further, tightening the noose on the Missing Middle.
The crux of the issue? Many developers are repurposing affordable housing units into pricier, market-rate accommodations, further narrowing options for the Missing Middle. The verdict is unambiguous: Los Angeles urgently needs to amplify its affordable housing inventory if it wants its essential workforce to stay and prosper.
The FNX Team is taking charge, identifying urban zones to grow expansive projects that are 100% affordable. Strategically located close to major employment and transportation hubs, these developments aim to provide affordable homes to the city's indispensable workers in the neighborhoods in which they already work. With a commitment to quality and eco-friendliness, FNX Development aspires to sculpt a lasting legacy: housing that truly serves the Missing Middle, enriches the city, and yields returns for our stakeholders.
The Pitfalls of Unchecked Public Funding in LA's Housing
The glaring issue of homelessness in our urban hubs, especially Los Angeles, has sparked a surge in public funding. Surprisingly, while funds seem nearly inexhaustible, the supply of affordable housing remains dismally deficient. It's a lopsided equation where ample capital to tackle the crisis contrasts sharply against the scarcity of pragmatic housing solutions.
At the heart of this dilemma lies a complex web of challenges. The resistance of certain communities, commonly referred to as the NIMBY (Not In My Backyard) syndrome, often hampers the development of affordable housing. Additionally, developers, lured by the lucrative allure of market-rate and luxury units, frequently sidestep the pressing issue of affordable housing.
This discrepancy in priorities results in makeshift solutions. The city, in its desperation to address the housing crunch, often resorts to building garden shed communities in city parking lots or acquiring and retrofitting dilapidated motels or existing market-rate apartment buildings into affordable housing.
The outcome? Startling headlines about Los Angeles spending a staggering $837,000 or more per individual to repurpose buildings for the unhoused.
Unchecked public funding, without a strategic approach to address the root causes, can inadvertently lead to inefficient allocations and poor investment decisions. The goal isn't just to pour money into the problem, but to do so wisely, ensuring that each dollar translates into sustainable and cost-effective housing solutions.
Balancing Affordability with Sustainable Aspirations
At FNX our perspective on the housing crisis in Los Angeles is distinct: the journey to a more affordable future starts with the heart of our community - the middle. By catering to the housing needs of the middle class, we envision a ripple effect of widespread affordability. Picture this - a community where individuals can comfortably reside in the very neighborhoods they cherish, contribute to, and work in.
Our goal transcends just housing. We aim to cultivate communities where dreams aren't overshadowed by financial constraints, where every resident feels both
valued and valuable. All the while, we remain steadfast in our commitment to provide above-market returns for our investors. By investing in FNX Development, you are not only securing lucrative returns but participating in a story of hope, progress, and sustainable prosperity.
Rather than pursuing worn-out approaches that have proved ineffective, FNX is taking charge. We do so by identifying urban zones to grow expansive projects that are 100% affordable, as well as strategically located close to major employment and transportation hubs. Our development projects aim to provide affordable homes to the city's indispensable workers in the neighborhoods in which they already work. With a commitment to quality and eco-friendliness, the FNX Team is working to sculpt a lasting legacy: housing that truly serves the Missing Middle, enriches the city, and yields stable and attractive returns for our stakeholders.
Solving LA’s Housing Crisis
The most recent Regional Housing Needs Assessment (RHNA) report prepared by the California Department of Housing and Community Services determined the need for nearly 500,000 new housing units in the Los Angeles area by 2029. It recommends at least 260,000 of those units be focused on low - to moderate -income residents.
For Los Angeles to flourish and for its heartbeat – its essential workforce – to thrive, the city's housing tapestry needs a radical re-weaving. Affordable housing isn't just a need; it's an imperative.
Compared to the development that took place between 2014 and 2021, there will need to be a 20X increase in development of affordable units to meet the anticipated demand. The data vividly illustrates the scope of the market and underlines the fantastic opportunities for growth and impact within FNX's grasp.
Recent News Covering Affordability Issues Facing Los Angeles
Ideal Marketing Timing
As shown previously, Los Angeles needs to build minimum of 500,000 required new affordable housing units between now and 2029. This presents an incredible opportunity for our investors, not just in our Featured Project today but in countless future projects.
For generations, the real estate sector has been the keystone of financial success for the affluent, offering a potent blend of steady income, appreciable asset growth, and tax incentives.
Historically, the doors to such investments have been opened only to the wealthy elite and large institutional investors. But we are here to broaden that access by bringing you this investment opportunity through our funding campaign on WeFunder.
In the pursuit of bridging this accessibility gap, we're actively raising project based trances of capital. All funds are channeled directly into a specific project with defined financial metrics and exit targets.
The FNX Blueprint
Targeted Development
The heart of our strategy lies in the heart of the city. By pinpointing key urban zones ripe for affordable housing development, FNX is set to usher in expansive projects that exclusively champion the cause of affordable housing. But we aren’t just building homes; we're crafting communities. Proximity to amenities, vibrant job hubs, and crucial transportation arteries ensures that our developments aren't just affordable but also aspirational, meeting the needs of the city’s indispensable workforce.
Empowering the “Missing Middle”
The keystone of our strategy is addressing the silent crisis faced by the "Missing Middle". By creating housing solutions tailored to their needs, we're not just constructing dwellings but are laying the foundation for a more equitable LA. Their prosperity and stability directly translate to a thriving city ecosystem.
A Win-Win Proposition
FNX Development's strategic focus is two-fold: while we're passionate about engendering social change, we're equally committed to generating robust returns for our investors. Our projects, rooted in research and data-driven insights, are geared to ensuring that our investors find value, trust, and growth in their association with us.
Sustainability Meets Excellence
Our ethos is anchored in quality, sustainability and affordability. In an age where sustainability isn’t just a buzzword but a pressing global need, our developments with symbolize green practices, ensuring minimal ecological footprint. Coupled with our unwavering commitment to quality, every FNX home built will be a testament to durability, functionality, and aesthetic appeal. Marry that with affordability, Angelenos will finally start to feel reprieve from today’s housing crunch.
Navigating the intricacy of LA's housing ecosystem demands more than just intent; it calls for a strategy rooted in insight, innovation, and impact. FNX Development stands at the forefront of this endeavor, armed with a clear vision and a roadmap to create a paradigm shift in the city's housing narrative.
At FNX we are not only charting an ambitious course of financial success
We're aiming to change the fundamentals of LA but are on a mission to redefine its very soul, ensuring that every Angeleno has a place they can truly call home. Invest with us and be a part of change.
In the world of real estate investing, FNX stands out, blending agility with astute financial strategy. Our private developer status, coupled with our private funding, frees us from the constraints faced by publicly-funded entities.
Capital Deployment Plan
Stability Ensured
Long-term Government-backed lease agreements subsidies, ensure 100% occupancy for the completed apartments.
Agile Processes
Streamlined planning and entitlements reduce time-to-market for faster cost recovery and accelerated profitability.
Optimized Design
Efficiency and environmental sustainability in design reduce construction and ongoing operational costs.
Reduced Costs
Mastery in development processes for significantly optimized construction costs.
FNX merges strategic innovation with prudent operations, offering partners and investors a uniquely advantageous position in the real estate market. Here’s a deep dive into how the fund is poised to reshape the city’s affordable housing canvas.
A Vision for Tomorrow
At FNX Development, our perspective on the housing crisis in Los Angeles is distinct. The journey to a more affordable future starts with the heart of our community - the middle. By catering to the housing needs of the middle class, we envision a ripple effect of widespread affordability. Picture this - a community where individuals can comfortably reside in the very neighborhoods they cherish, contribute to, and work in.
Our goal transcends just housing. We aim to cultivate communities where dreams aren't overshadowed by financial constraints, where every resident feels both valued and valuable. All the while, we remain steadfast in our commitment to provide above-market returns for our investors. With FNX, investing in the future means participating in a story of hope, progress, and sustainable prosperity.
Each project under the FNX umbrella is uniquely positioned in terms of scale and requirement. While some initiatives might need a financial injection of $500,000, others might demand investments up to $3,000,000 in the pre-development stage. With an ambitious goal of growing our project portfolio to well over $100 million, we have structured ourselves for scalability, with keen financial controls. Our robust financial strategy ensures the adaptability and endurance in the dynamic LA housing market.
Featured Project
The FNX Oasis Chinatown Project
Our Oasis Chinatown project is located in the bustling Chinatown sub-market just north of Downtown Los Angeles. This project comprises a sprawling 170-unit affordable housing development on a half-acre site. It is fully entitled and awaiting final building approval.
Property Facts
Proposed Development:
Unit Count
170 Units (including 17 extremely low income units)
Building Area Approx
141, 935 SF
FAR
4.94:1
Stories
7
Parking
90 Stalls
Existing Site:
Land Size
20,913 SF
Zoning
C2-2
Council District
CD-1
Entitlement Status
R.T.I.
Los Angeles State Historic ParkChinatown Overview - A Neighborhood Steeped In Culture And History:
The Los Angeles State Historic Park, nicknamed Cornfield Park, has undergone a $20-million renovation project to expand the grounds and add a host of new amenities. The newly made-over park reopened earlier this year.
The now-34-acre park features permanent restrooms, a visitor’s center, an events area, paved parking spots, and a raised pedestrian bridge that curves across a section of the park’s open space. The park has also gained a meadow area and new wetlands.
It has already become a popular spot for joggers and walkers alike to do a few laps and for families and groups of friends to escape the concrete jungle for a green space to enjoy the Los Angeles sun.
Balancing Purpose and Profit:
The FNX Team is to bring tangible social transformation while offering enticing financial prospects to our investors. We firmly believe that conscientious investing doesn't have to compromise profitability.
While every investment venture inherently involves a degree of risk, FNX stands as a testament to diligence and expertise.
Our unwavering focus on addressing a genuine societal need, combined with the leadership of seasoned experts, forms the bedrock of a venture designed to ensure stability over the medium term.
As an investor, you can be assured that our commitment to delivering reliable returns and generating an annual income is underpinned by a comprehensive strategy that minimizes risks and optimizes opportunities for both financial growth and meaningful change.
The following details projections for the Oasis Chinatown Project you will be investing in today:
Pioneering the Future of Affordable Housing in Los Angeles
FNX is driven by meticulous planning and unparalleled expertise. Grounded in a pressing societal mission and guided by the seasoned acumen of industry veterans, our venture is engineered for stability and consistent returns.
CEO
COO
CFO
With a consistent history of 80+ collective years of successful real estate ventures, unparalleled financial prudence, and an innate grasp of the evolving market landscape, the FNX Development leadership team stands as a beacon of promise.
Our investors can be confident that our dedication to delivering dependable returns and annual income is underpinned by a robust strategy. This strategy is meticulously crafted to mitigate risks, amplify growth potential, and spearhead both tangible financial rewards and transformative societal progress.
At the helm of FNX Development is an ensemble of highly experienced and astute real estate professionals, united by a shared vision to redefine affordable housing within Los Angeles. Our leadership boasts a rich tapestry of expertise, spanning from financial stewardship to innovative construction methodologies and the modernization of existing properties.
Our diverse experience base ensures that we approach property development from multiple perspectives, harnessing the power of data-driven insights while staying grounded in our unwavering commitment to community betterment.
Track Record & Partners
The FNX Development team has a proven track record with demonstrated financial returns - our legacy etched in stone. Our team has expertise in multiple property sectors, including ground-up development, value-add multifamily renovations, and long-term apartment holdings.
Between us, we have completed over $1.7+ billion in transactions and have overseen a portfolio of over $114 million in assets. Our history doesn't only showcase our capability, but it also serves as a testament to our dedication, precision, and unwavering commitment to excellence in the real estate domain.
