Co-Founders Michael Amir and Faheem Muhammad of Oasis’ Real Estate Projects in the South Side of ... [+]
Economic development is a crucial factor of success for both businesses and individuals. Michael Amir and Faheem Muhammad have firsthand experience with the lack of economic development in underserved neighborhoods. With their combined experience, the pair founded Oasis Investment Group, focusing on economic growth in these areas.
Amir and Muhammad's parents were friends, and both young men grew up together in Los Angeles, California. However, Amir spent most of his childhood in South Central Los Angeles and went to school in the suburbs of Cerritos. His dual experience offered him a more layered perspective of the socio-economic difference between his friends who attended Crenshaw High School versus the schools his affluent frequented.
"I felt it was unfair that the majority of Black people, in so many words, suffered. The education was different, and the culture was different. Growing up, most of my friends were Asian. So, it was normal to have study groups, and normal to an Ivy League school, where in South Central, it's not," Amir explains how his academic career shaped his worldview. He matriculated to the University of California and would later become employed by a global phenomenon known as Michael Jackson, "The King of Pop," as his Chief of Staff. During that period is when Amir and Muhammad's professional relationship became cultivated. Muhammad served as Jackson's Head of Security. But, he always had an entrepreneurial spirit from his high school days when he sold snacks and drinks to his classmates to watching his mother hustle as a marketplace vendor.
"On a high level, seeing Michael Jackson and things that he was doing took my mind to a different place as far as capabilities and abilities and what could happen and what can be done," says Muhammed. For 14 years, Amir and Muhammed have been business partners and completed several projects, yet, their most ambitious undertaking is the founding of their company Oasis, a real estate investment and development company that focuses on creating transformational change in underserved, low-income neighborhoods.
Based on the promotional video for their company, Amir and Muhammad were earning six-figure salaries and socializing with members of the upper echelons of society, yet neither were satisfied with being financially stable when their family and friends were trying to overcome living under challenging conditions in the inner cities.
"We built very successful businesses, but we always wanted to figure out what we can do to make a greater impact that isn't just talking [or] donating. That urge grew into us partnering to get into ownership because we felt that if we own, we can do more, specifically real estate," reasons Amir. They strategically chose Chicago, Illinois, because of the market and the starting point of social change. In 2020, the city tallied "26,620 violent crimes, including 774 murders. Much of violent crime can be attributed to gang violence and conflict, which is closely tied to the drug trade," according to Property Club.
When Muhammad bought his first house, he encouraged Amir to venture into the real estate sector and buy their first property. They quickly realized a significant financial return and continued to buy and hold while securing tenants to gain a profit.
"It was great financially, but to see people from that community walk into a new home, usually run by managers who aren't their owners, we saw that impact, and we did it again," says Amir. With every property and the financial gains reaped from each purchase, they bought several single-family homes and duplexes, providing homes to dozens of tenants.
He continued, "We said let's take it up a notch, the way companies scale and accept investments. We're making money. Let's see if we can make others money. So we tested it with families and friends. Someone [would say] 'I have $25k or $50k,' and we would partner with them, and we [would give] them back $40k or $60k."
Amir and Muhammad developed an effective formula for how to profit from real estate. They invited the general public to invest and took advantage of the JOBS Act, the Jumpstart Our Business Startups Act, which funded small businesses and was signed into law by President Barack Obama on April 5, 2012.
"It allows the average person who's not accredited, who may not have $50k to invest. But if you have a few thousand, you can invest. We saw no Black-owned company was doing this. I believe there's been one in the past, but it's inactive. So it was an empty space," said Amir. "We thought that people from our community deserved an opportunity to invest even if they don't have [copious amounts of money.] So Faheem and I applied with the Security Exchange Commission, and we officially qualified; it wasn't easy. It took a lot of intellect, pulling our resources together, and attorneys, but we made it happen. Now we're the only Black-owned company qualified as a Regulation A Tier Two Fund that Obama created. We can accept investments from the general public, and that's how Oasis was born. Starting with an initial $40k investment, the company boasts a $10 million real estate portfolio in only two years.
"I do want to note that we're not the only company doing this. There are a lot of corporations that aren't Black-owned, are using this fund, and have high valuations of billions of dollars. But being young and Black, we have a lot to prove. Our communities have been taken advantage of, they're skeptical, and this is a challenge we want to take on because we want to be transparent, allow them to invest, and make a return. But what makes us different is our full commitment to our communities; we're investing in those dilapidated properties and learned that our communities are gold mines. Other foreign investors know that. That's why they go there and don't intend to fix it up because it's a renter's market. But with us and our intention, we believe we're going to be able to make a positive impact," mentions Amir.
"The most important goal is educating the community about investing, ownership, this movement that ... [+]
Black people have long held an attitude of skepticism based on their history of being taken advantage of and enduring prevalent racial discrimination in every part of life, whether it be health, education, employment, and living conditions. Both men are cognizant of the barrier of mistrust their community has and overcome the obstacle by surrounding themselves with the most innovative minds in the culture to facilitate making wise investment decisions; Amir and Muhammad also bank on their business acumen and character to build trust with their investors.
"As the money and the capital that's raised is deployed, there'll be full transparency. I think that's very important. We like to buy real estate, rent it out, refinance, and continue that process. The process doesn't fluctuate much with market rates or with property values. Things can change, but when you study real estate, you'll see the rent and prices that the government pays for affordable housing. If you look decade over decade, they're on a trajectory upwards. Even in 2008, when the market crashed, rents increased because all these homeowners were losing their homes and now had to go lease apartments or rent from someone. So there's never a foolproof strategy. Anytime you talk about investing, you talk about risk and minimizing risk. But we do believe we vetted out the strategy. We intentionally are not investing in crypto and stocks that tend to have a little more volatility," certifies Muhammad. "I think our track record speaks to that, and as people get to know us and know the people that are surrounding us, I believe that will help make a difference when it comes to navigating some of the things that have been in the past, particularly for people that look like us."
As the only active Black-directed Real Estate Fund in the nation, the minimum amount to become an investor with their firm is $1000, and stakeholders know that it's not a "get rich quick" situation.
"Investing takes time. The money not only has to be deployed, but it has to go to work. Some properties have to be renovated and leased out. Then the investors will enjoy the profits that come back, so that's the process. It's not immediate, but it is pretty solid, and we've had some good experience doing that," explains Muhammad. They intentionally made the cost economical to become a partner with their enterprise because Amir and Muhammad wanted communities often ignored by more traditional financiers to have an opportunity to turn lower-income communities into an Oasis.
In addition to reaping substantial profits, Oasis has created numerous jobs in underprivileged neighborhoods. They launched their Build Program, which guides young men and women in the Chicago inner cities, launches their careers in real estate investing, and teaches them how to purchase property. The students in their program learn trade skills and how to renovate homes completely.
The initiative was born from a desire for Amir and Muhammad to help their community, and most of their mentees originally resided in California while several lived in Chicago. The program brings young men out of their home environments and allows them to learn nine vital trades; it provides housing, food, and enrollees receive certifications from a federally recognized trade school, Genesus Construction Training Center Inc. (GCTC), all without going into debt.
"We wanted to create a situation where you can leave your parents' home without anything, you can come with us, learn for a couple of years, while also helping us build up our properties and with our renovations while you're making some money. The beautiful part of the program is you're also learning the process. We take these young men and teach them ownership, how to go in and close these deals. We [made their first acquisition during quarter one of 2023], as a group, we've already started their LLC, opened up their bank account," shares Muhammad.
All the participants were 18 and 19-year-olds who divided the ownership and were responsible for making the ultimate decisions. "These young black men didn't grow up in the best circumstances. We have them vote, and they'll come to me for counsel; we'll get on a call. But at the end of the day, I tell them I won't make the decision. You all have to do your research, take in the information, and make the best decision for your company," he says of his instruction.
"As a senior elder in our community taught me, 'You can't teach people what to think, or you handicap them, but you do a great service by trying to help them how to think so they can apply that to different situations.' So we approach this program with that mentality of teaching them how to think, and then they can take that and go further in life. We presented them with a $10,000 check, we're not a super big rich company yet, but we wanted to reward them for their hard work. They already have income saved up from their work over the year, and we just wanted to add to that and give them a bonus," adds Muhammad. Presently the Build Program is specifically targeted at young Black and Brown men with intended plans to make it a national program and expand it to all communities. Amir points out that President Joe Biden referenced a study by the University of Chicago Crime Lab that found that youth employment causes crime rates to decrease by 33%.
"Part of the reason behind it, besides the emotional tie, was that this is a tangible way to create jobs. There are thousands of dilapidated properties in Chicago, so if we just had money to buy these properties, this is money that we could generate to renovate them, then we're providing jobs. The way we set it up, workers are training new apprentices, and you can get paid $17 to $19 an hour as you learn carpentry, plumbing, and HVAC. Thousands of jobs can be created, and on top of that, you're beautifying a community and lowering violence. I wanted to add that was also the inspiration behind the Build Program to do something that can lower the violence in a community such as Chicago and throughout the country," he notes. The requirements to enter the program are contingent on if the potential enrollee can commit to the project full-time; they must be males graduating high school between the age of 18 to 24. Amir and Muhammad are planning to institute a similar program geared toward women in the future.
Faheem Muhammad (left, in all black) and Michael Amir (right, in all white) launch their Build ... [+]
"We're working on a separate piece for returning citizens, people coming home from prison where we'll provide housing. There'll be a second phase where we'll deal with people coming home from prison or men in the community that need this type of program," adds Muhammad.
In addition to Oasis' altruistic endeavors, the enterprise is focused on acquiring additional single-family homes, commercial buildings, and multi-resident apartment complexes in Los Angeles and New York. Most of the company's portfolio includes 90 properties based in Chicago, and the initial goal for future acquisitions is to provide housing for people in underserved and economically deprived communities. The second goal is to use the commercial with the residential to become a catalyst for creating businesses.
"For example, our 34-unit building has 2928 apartments, five commercial spaces on the ground floor, and one office space on the second floor. Our goal is to create business opportunities that will benefit these underserved areas. I'll give you a quick example. One of the concepts that we're working on is a Healthy Corner store. So traditionally, in the Black community, when you go to the corner store, you buy liquor, potato chips, or things that may not be healthy for your body," says Muhammad. "We want to bring in healthy alternatives like fresh juices; some partners already have some of these businesses on the east coast. We have some local partners in Chicago, the Foodie's Spot, a trendy food eatery in the South Side, and Kierra Coffee's, a coffee shop that recently closed their business due to COVID. But we're looking at bringing them in to open up different types of businesses, not just traditional storefronts just there to make money. We want to create opportunities and businesses to benefit those living in those areas."
Amir and Muhammad also seek to provide workshops and seminars to develop business and financial skills in the individuals of the neighborhood. Additionally, they partnered with local organizations to create job opportunities and offer resources to empower individuals and the local community. To gain more exposure for their efforts, Oasis is collaborating with Combs Enterprises Chief Brand Officer Deon Graham to tour, starting in Chicago first, with Revolt, a digital cable television network founded by Sean "Puffy" Combs.
"Sean Combs, he's always been a champion for the people, as long as I've worked with him. He's been working for and with the community and started schools. I see so many black executives come through his ranks who could go out and do great things. So he's been very impactful," says Muhammad, who is also planning with Amir to break ground on a 20,000-square-foot building to turn into an educational center.
For 2023, they want to continue to build economic development to create self-sustaining neighborhoods that can thrive and support its own success. They want to provide ongoing support in the form of social and financial resources to enable individuals, especially those from underserved neighborhoods, to break cycles of poverty through entrepreneurship, earn livable wages, become financially responsible, and develop social and economic assets.
"The most important goal is educating the community about investing, ownership, this movement that we can solve our problems. [In] five years, the ideal number we want is 10,000 units in Chicago. That's what we're targeting, and we're positioned to do that; it's a very aggressive goal. That's what we're manifesting," promises Muhammad.
