DETROIT (WXYZ) — Black Leaders Detroit has launched a building fund aimed at supporting developers of African descent with no-interest loans of up to $150,000, and training to help transform vacant buildings into homes in Detroit neighborhoods.
Keith Buford spent 20 years as an engineer in the auto industry before turning to real estate. Since 2021, he has renovated 21 residential properties in Detroit. But the developer said the work has not come without challenges — particularly when dealing with lenders.
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"You have to have money to do work first and then you get reimbursed. So not only do you have to come to the closing table with a lot of money, you end up having to save some money just to be able to start the project," Buford said.
Buford said the Black Leaders Detroit building fund has changed that.
"It's been a game changer," Buford said.
The fund is designed to lower barriers for developers like Buford by restructuring how capital is distributed.
"We do a few things to make it accessible friendly for the borrower. We provide a third of the loan at closing and that's to get work started," Dwan Dandridge, CEO of Black Leaders Detroit, said.
Dandridge said the initiative is rooted in ensuring Detroiters can participate in the city's growth.
"There are Detroiters that have been here and have kept the lights on and they want to benefit from the turnaround, but there's just not enough tools to put them in the game," Dandridge said.
During the program's first cohort, around $1.8 million was committed to 15 projects. Dandridge said the second cohort will distribute $800,000 to an additional 10 developments.
For Buford, the work is also personal. He said part of what drew him to real estate was a desire to improve the communities around him.
"Part of what I started doing was flipping properties. Just taking ugly houses and making them nice houses because I like nice things and I think the people in this community like nice things," Buford said.
Dandridge said the fund represents more than financial support.
"It means a lot to me because discussing problems without creating solutions only perpetuate the problems," Dandridge said.
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