Our Second Niche Market

Our First Niche Market, the Low Income Housing Tax Credit

Joe Guggenheim told me on the phone (12/28) that the LIHTC is used to finance 90,000 housing units per year. Assuming an average of $70,000 in development cost per unit (he agreed with this figure), that comes to $6.3 billion annually in development expenditures (including land and development fees).

We can estimate how much is spent on development & financing fees by looking at our Orchard Ridge case study. I'll spend more time on this soon, but a quick review shows about $80,000 being spent on things we can directly help with (1%). This suggests that our first niche market is about $63 million per year.

$63 million a year for MBA persons doing our stuff in our niche market alone. These numbers will change when I spend more time on this, but good enough for now.