Believing in Your Neighborhood

Donald Hudson has lived in North Lawndale since he was five years old. He bought his first property in the community when he was 20, and his second one when he was 23. The third property Hudson bought was a 17-unit building, which was his introduction to the multifamily rental business. "I always wanted to own properties, as I was looking for a better way of life," said Hudson.

CIC’s relationship with Hudson began with his purchase of another 17-unit building in North Lawndale. Hudson bought this property as well as another from a community bank. They were distressed properties that were headed for demolition if rehabilitation financing could not be secured.

Hudson obtained a first mortgage from a major Chicago bank and a GAP second mortgage from CIC to rehab one of the buildings. A shortage of cash made it difficult for Hudson to complete the rehab, but he persevered. He then came back to CIC to consolidate the two loans into one and to complete additional work to the property. Because of loan to value restrictions, however, this refinancing exceeded traditional underwriting guidelines. Through the Flex Fund Program, CIC provided a loan that exceeded 80% loan to value and offered more favorable terms. "CIC is firm, but they offer a relatively simple program, and I like how they stuck by me," said Hudson.

Managing nearly 60 units already, Hudson plans to continue to buy more buildings. "I believe in this area, which is where my wealth came from. This neighborhood is changing, which is also an incentive to help upgrade the neighborhood and provide decent affordable housing to the residents," said Hudson.