Is it possible to be altruistic and profit-motivated at the same time? One California CEO believes so.

She heads a California investment group with a unique idea - to invest in homes in distressed neighborhoods by helping the neighbors spruce their homes up, too.

Affinity Neighborhoods began in 1996 when David Frayne encouraged friends and family to purchase and improve houses in an Oakland neighborhood for investment. His idea was that if they all improved their homes at the same time, the values would go up.

The idea worked, as all the homes have either sold or are in contract to sell for about twice what each investor paid.

Just to make sure the profitable idea wasn't a fluke, the group teamed up again to transform a neighborhood in Long Beach, and saw another jump in their property values.

Ingrid Johanns, one of the original investors became CEO of the "real business," Affinity Neighborhoods. Today, the firm buys properties funded through its private investment funds such as its Affinity Neighborhoods, LLC and Leonardo, LLC. Affinity Neighborhoods has 22 investors, 31 properties, and about $1.7 million invested in about $7.8 million in real estate, according to a recent CNN article about the company. Investors can jump in for $50,000 and are required to have either $200,000 in income or a net worth of $1 million.

"In a nutshell, we are successful real estate investors who not only fix up houses, but we also fix up whole neighborhoods," explains Johanns. "We go into areas with high crime, buy property, and then work with nonprofits and residents to transform the neighborhood while we work on fixing our houses."

The company works by holding large neighborhood improvement events, which includes the investors and neighbor volunteers.

"They're very inspiring events," says Johanns. "Lots of neighbors and kids come out and join us. We generally have about 50 volunteers show up. We pick up trash, plant trees, paint houses and fix fences on a block in one of these distressed neighborhoods."

While it's nice to make money, Johanns also enjoys the satisfaction of making a difference, too.

"One little 7-year-old boy said to me last weekend while we were planting flowers together," says Johanns, "'Wow - this is more fun than playing video games!'"

That made Johanns laugh. "I thought so, too, " she says. "It's incredible what a little possibility does to a neighborhood."

She says, "We believe it's possible to transform all high-crime neighborhoods into beautiful communities."

Published: August 17, 2004

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.