Quietlands Development Group's Promise Land Home Initiative

Administrative process 

PHASE ONE 

There are three phases to owning a home by a participant. Phase one starts with a participant who is seeking housing contacting a local Realtor. The Realtor will complete an application designed by Quietands Development Group L.L.C. (Quietlands) and perform certain due diligence requirements. Some of these requirements will be to check on planning & zoning, evaluate the distance from schools and employers for the participant and estimate property taxes once the home is complete. A Comparative market analysis will determine value and a market study of appreciating or deprecating histories in the neighborhood will determine future home locations. Once the application has been completed the Realtor (along with the Realtors buyers broker agreement) will forward that application to a participating nonprofit of the applicant’s choice. The nonprofit who chooses to sponsor the applicant will meet with the applicant to discuss the guidelines of the program. A living budget for the Participant will be created by the nonprofit and the Participant. The Participant must know what is expected and anticipated through the home acquisition process. Once this process is complete and the Participant has a nonprofit sponsor, the nonprofit sponsor may submit the request to Quietlands. Upon receipt a review will start along with facilitating the process to acquire a home in a suitable location for the participant. The file will then advance to Phase Two.  

PHASE TWO

The second Phase in the process involves a collaboration between Quietlands, the property owners and/or land developers, an investor who is going to actually build the house for the participant and the nonprofit who is going to be responsible for the collection of the monthly rent and draft the monthly payment of the rent to the investor. This phase may involve a bank for a construction loan for the investor with clearly defined release provisions. The file will proceed forward with the documents necessary for the home build, the lot purchase or possibility an existing home purchase and the tenancy agreement between the nonprofit and the participant.    With a new home build this process will include house plans, construction cost estimates, construction contracts for the nonprofit and the contractor, draw schedules for contractor payment, a local contractor reference, survey and closing attorney recommendations. Once the house has been built or remodeled and the participant has moved into the house and completed the terms of their rental tenancy, Phase three will begin.    

PHASE THREE

During the third phase of the process Quietlands initiates the ownership protocols, sets closing dates for the participant for home ownership and proceeds forward with what will be known as the “Exit Plan” for previously supportive banks, investors, nonprofits or other parties involved in helping the participant acquire the home. At closing the participant will own the home outright by General Warranty Deed. All relationships between all parties that helped the participant acquire their home will no longer exist other than the holder of the soft second mortgage and any “gap funding” provided by the nonprofit or any other individual or municipal participant. The soft second will be forgiven over a period of time and the Participant will now own their home free and clear without any further obligations to The Promised Land Home initiative or any of the supporting sponsors.   

   The cornerstones of the Promised Land Housing Initiative are affordability through home design and flexible financial products. A weaning process by Federal, State and Municipal governments to help remove participants off government funded programs is an additional program goal. Accountability to the program and adherence to the process by the collaborating individuals and nonprofits will assure success. Nonprofits will be in place to provide mentor opportunities for those who need support and guidance. We will be involving local Realtors, Contractors, Architects, Land developers, Investors and nonprofits in the community of the home build.    

The path to home ownership is through the rental of the Participants future home by the Participant for up to five years; then ownership of the home through standard mortgage financing.     

The Promised Land Home Initiative is the opportunity for the Participant to purchase the home within five years (under normal market conditions). The majority of the Participant's down payment and money for closing costs will have accrued over the five-year rental period. The terms of purchase between the participant and the investor (as administrated by Quiet Lands Development Group) will be as follows:           

When the Participants wage rate during the five-year rental period qualifies Participant for homeownership the home will be appraised for the closing of a normal bank loan or mortgage. Any amount of equity created by appreciation over the initial cost (up to 23%) will be given to the participant to use as a down payment and toward closing costs for their home mortgage. Any additional equity through appreciation above 23% will be given to the initial Investor at the closing of the sale. This allows both Investor and Participant to enjoy the gains created through appreciation during the long-term investment and rental period. 

The Promised Land Home Initiative is not designed to create government housing or government subsidized housing. In fact, the program has been created to advance Participants into home ownership and remove participants out of government housing and sober living housing.

The program will help Millennials and Gen. Z move out of their parents’ homes. Veterans will have respectable housing and Elderly trying to downsize can afford nice safe affordable housing in desirable neighborhoods. One thing that we must assure all involved is that this program does not generate undesirable neighborhoods or create squalor in a community. The program is purposely designed to weed out any individuals who do not appreciate the opportunity and responsibility to own a home. In some cases, there may be a “soft second” mortgage behind the primary lender for these accrued funds used for the down payment and closing costs. The principal of this “soft second” will be forgiven over a scheduled period of time.  This “soft second” should keep the Participant from borrowing unstainable debt against the house in the future. An agreed amendment between the Participant and Quietlands development group can be executed for lower mortgage rate opportunities or home improvements as agreed to by all parties.    

  One Bedroom appreciation @ 6%  Initial value-----167,600.00 

 End year one---177,656.00  

End year two---188,315.36  

End year three-199,614.29 

End year four---211,519.15  

End year five---224,280.62

Purchase of one bedroom home  Sales price-----------------------------224,286.62  

Down payment (20%)----------------44,857.33  

Amount financed--------------------179,429.29  

Closing costs (3%)-----------------------6,728.62  

Payoff of investors mortgage------160,600.00 

Real Estate buyer Broker fee (2%)—4,485.74  

Balance paid at closing-------------------614.93  

Two Bedroom appreciation at 6%  Initial value--------197,000.00  

End year one-----208,820.00  

End year two---- 221,349.20  

End year three---234,630.18 

End year four-----248,707.97  

End year five------263,630.45   

Purchase of two bedroom home  

Sales price---------------------------------------263,630.45  

Down payment (20%)-------------------------57,726.09  

Amount financed-------------------------------197,996.45  

Closing costs (3%)-------------------------------7,908.90 

Payoff of investors mortgage----------------197,000.00 

Realtor buyer broker fee (2%)--------------- 5,272.61  

Balance owed by Participant @ closing----4,276.16 

 Three Bedroom home with 6% Appreciation 

Initial home value-------------------250,000.00  

End of year one----------------------265,000.00  

End of year two----------------------280,900.00 

End of year three--------------------297,754.00 

End of year four----------------------315,619.24  

End of year five-----------------------334,556.40      

Purchase of one bedroom home by participant   

Sales price---------------------------------------334,556.40 

Down payment---------------------------------66,911.28 

Amount financed------------------------- ----267,645.12  

Closing costs (3%)-----------------------------10,036.70  

Payoff investor mortgage--------------------250,000.00  

Realtor buyers broker commission (2%)- 6691.13 

Balance paid at closing-----------------------917.29    

 Any “Gap funding” would be reimbursed prior to division and distribution to the entity who provided the Gap funding at the closing.

It should be obvious why the due diligence process of the Realtor and Quietlands Development Group LLC in determining future home location is necessary for PLHI program success and program growth. 

In addition to helping the target demographics the PLHI will be instrumental in providing housing opportunities for the workers necessary to fill the jobs from the re-shoring of American manufacturing 

Richard “Gil” Heinsohn Jr.

PO Box 111

Vonore, TN 37885

gilheinshon@gmail.com

(865) 599-0802

WORK EXPERIENCE

2022 - present

Director of Campus Development- True Purpose Ministries, Maryville Tn.   

Research and development of Promised Land Home Initiative 

1977-2022

President and Founder of White Oak Construction and Restoration Company, LLC  &

Quietlands Development Group, LLC

Primary Services Offered:

Land and community development; provided complete land development services to the following communities and subdivisions: 

· Town and Country Club, Sevierville, TN

· Town and Country Condominiums, Sevierville, TN

· Westover Park Resort, Sevierville, TN

· Swampy Branch Property (304 acres) Townsend, TN   

*Carrs Creek Properties (400 Acres)

· Townsend Medical Center, Townsend, TN

· Heritage Park Convention and Wedding facility, Townsend, TN

· Laurel Valley Country Club, Townsend, TN

· Laurel Vally Golf Course, Townsend, TN

· Laurel Valley Resort - 508 lots over 1,400 acres including an 18-hole golf course community, Townsend, TN. including the following neighborhoods: 

o Penni Lane/ Mountain Loft

o Grouse Creek

o Country Club Drive

o Settler’s Point 

o Fox Chase

o Arrowhead

o Hawk View

o Huddleston Village

o Bear’s Den

o Mineral Springs

o Camp Townsend

o Kelly Ridge

o Eagle’s Nest

o Hound’s Run

o Lake Madison Estate

o Cold Springs (phases 1-7)

o Sequoyah Village

o Caves Cove Village

· Developer of the Huaja Lake Eco Golf Community – 40,000-person city including an Eco College, Hydroponic Food and Fish Farm, Golf course and Convention Center and infrastructure for a tourist economy, Huaibei, China

· Quietlands Community, Maryville, TN

· True Purpose Ministries Men’s Campus, Maryville, TN

· True Purpose Ministries Joan Steed Trinity House, Vonore, TN

· Quietlands community, Vonore, TN

EDUCATION 

· Real Estate Capital Finance and Appraisal designation, 1986

· State of Tennessee Real Estate Brokerage and Private firm license, 1985

· State of Tennessee Contractor’s License, 1977

· University of Tennessee, Knoxville, 1973-1976

· St. Luke’s High School, New Canaan, Connecticut, 1973