There’s no question that historic government policies and banking practices have significantly impacted generational wealth-building for individuals and families with limited financial resources. Access to capital, homeownership, and commercial real estate investment opportunities have long been out of reach for many due to systemic barriers in the financial and real estate sectors.
While homeownership is a key driver of long-term wealth accumulation, access to property ownership remains uneven. In 2020, 72 percent of U.S. homeowners were White, compared to 51 percent of Hispanic Americans and 43 percent of Black Americans. Experts believe the percentage of underrepresented groups owning commercial real estate is even lower. Additionally, leadership positions in commercial real estate remain largely concentrated, with only 13 percent held by individuals from diverse backgrounds in 2021.
Expanding Access to Real Estate Investment
At Forward Community Investments (FCI), we’re striving to address these economic disparities through programs like our Emerging Developer Loan Program (EDLP). This initiative is designed to grow the financial capacity of emerging developers who have historically faced barriers to wealth-building opportunities. Since its inception, the program has closed 23 loans totaling $4.8 million to 11 different emerging developers.
Creating Pathways to Economic Mobility
Now, we’re expanding our EDLP to support those who may not be full-time developers but want to take advantage of investment opportunities that were historically unavailable to them.
People like Melvin Boone, who applied for our EDLP to purchase and renovate a four-unit apartment building in Madison’s Prairie Hills neighborhood. We worked in partnership with Park Bank to secure funds so that Boone could purchase his very first property. Along with access to capital, we provided him with the necessary resources to grow as a property owner and landlord.
Boone, who earned a certification in building maintenance and repair in 2007, currently works as a maintenance technician for JD McCormick Properties. As part of our EDLP, we advised Boone to join the Apartment Association of South-Central Wisconsin, where he completed Property Management 101, End of Lease Practices, and Fair Housing classes. He also has access to a mentor who provides guidance on property management, marketing, and leasing.
Strengthening Neighborhoods Through Investment
While our EDLP doesn’t require participants to purchase properties in specific areas, we find that many choose to invest in communities where they have personal connections. As a result, the program plays a role in strengthening entire neighborhoods across Wisconsin by expanding access to real estate investment, fostering economic growth, and creating new opportunities for long-term financial stability.
At FCI, we believe that when more individuals—regardless of background—have access to the tools and resources needed to succeed in real estate investment, it benefits not only them but the broader communities they help build.
