What is Jumpstart Coatesville?

Jumpstart is a unique community development program that will train, mentor, network and help provide funding to aspiring real estate developers in the City of Coatesville.

Jumpstart believes that you can do well by doing good and focuses on removing neighborhood blight through scattered site rehabilitation, creating a mix of affordable and market rate housing while avoiding gentrification through steady growth and keeping wealth local.

Based on the Jumpstart Germantown model in Philadelphia, Jumpstart Coatesville will join over 13 other communities who have replicated the success of Jumpstart Germantown.

Jumpstart Coatesville will commit to accomplishing the following:

  • create opportunities for local residents to invest and develop in their neighborhoods

  • build wealth locally

  • support scattered-site rehabilitation

  • encourage a healthy mix of affordable and market-rate housing

  • improve neighborhood safety and raise property values through blight reduction

  • help first-time investors become more attractive to traditional lenders

  • increase diversity, changing the face of real estate development

There is an excessive amount of blighted, vacant and underutilized residential, mixed use and commercial buildings throughout the city. Real Estate ownership is under 42% amongst City residents according to the US Census. Jumpstart Coatesville will train city residents on the basic steps on real estate development while increasing quality housing inventory as well as local wealth accumulation among city residents.

We are seeking experienced or aspiring developers who are community minded and share our interest in the future of Coatesville, and its adjacent communities. Jumpstarters should be committed to blight removal, creating more quality, affordable housing, and making Coatesville a better place to live, work and enjoy.

Area of focus

Who will benefit from this program & how?

  • Increased monthly and annual cash flow through rental real estate holdings

    Large sum capital gains from short term real estate projects or “flips”

    Tax benefits

    Firm fundamental knowledge of the real estate ownership, investment, and development processes

    A network of mentors and real estate related business services

  • Example 1
    Current Coatesville business owners that are focused on securing a mixed-use property for their existing or new business will learn how to secure a property that has residential rental income coming in monthly. That income can help pay for operating costs for the property owners enterprise as they launch or grow their business.

    Example 2
    When an entrepreneur owns the building that they’re operating from they can leverage that same property to grow their business. The increased revenue from the business growth can be used to pay down the debt acquired without the business owner using cash profits from their enterprise. This can help to ensure longer term business stability and lessen the possibility of business failure within the first 3-5 years.

  • With a focus on blight removal, increasing affordable and market rate housing supply all while measurably increasing real estate values over time, Jumpstart Coatesville hopes to play a significant role in Coatesville’s revitalization.

    Example
    When residential real estate is reassessed the city could have additional tax revenue from increased real estate values as the result of the work of JSC graduates. The city can also generate revenue from real estate transfer taxes, use and occupancy permits, business permits, building permits, rental real estate applications, etc. Because many of the properties that JSC graduates will purchase are “off market” and distressed, the city can recoup delinquent taxes, water & sewer lien fees, code violation penalty fees, etc.

Why is this program needed now?

In 2018 Governor Tom Wolf designated the entire city of Coatesville a Qualified Opportunity Zone (QOZ). As a result of this designation along with other factors, the Commonwealth and County governments along with non & for-profit businesses have committed hundreds of millions of dollars to Coatesville’s revitalization. This has generated massive interest from local and non-local investors to purchase Coatesville real estate and launch new businesses.

 

Real Estate Values Increasing

In 2017 the median sold price of a residential property in Coatesville was $76,000. In 2021 the median sale price jumped to over $111,000. That’s almost a 50% increase in value.  Property values are predicted to increase by another 11% in 2022.

Jumpstart Coatesville will encourage city residents to take advantage of this pivotal point in Coatesville’s revitalization through our real estate investment & development training program.

 

Since 2015 more than 2,000 people have graduated from a Jumpstart Training Program in the City of Philadelphia, and made 308 acquisition and construction loans for the renovation of residential properties, totaling nearly $37M in funds committed. Jumpstart Germantown and Jumpstart Philly continue to create opportunities for local residents to invest and develop in their own neighborhoods, build wealth locally, and encourage the supply of naturally occurring affordable housing (NOAH), all while increasing the racial and gender diversity of real estate developers.

 

We aim to duplicate this level of success right here in Coatesville through partnerships with local businesses, non-profits and government institutions. We’re inviting all parties to get involved to make this program a success for all Coatesville residents. We want all Citizens of Coatesville to have every opportunity and resource available so that can be an active participant in the rebirth of their City.