Renaissance Realty Group in conjunction with Possessing the Land Ministries will edify, encourage and equip the body of Christ to possess land; from the pulpit to the pew.  We provide God inspired consulting and training to impart Church Building, Land Possession and Membership Homeownership.

As per Hosea 4:6; "My people are destroyed for lack of knowledge."  The Bible does not just mean for our lack of knowledge but rather our rejection of knowledge.

As per Deut 1:21 "Look, the Lord your God has set the land before you; go up and possess it, as the Lord God of your fathers has spoken to you; do not fear or be discouraged."  God has set us up to possess the land, but because of our lack of knowledge we have fear and are discouraged from possessing the land.

In Joshua 13:1, the Lord speaks to Joshua that "...there remains very much land yet to be possessed."  Today less than 50% of all Americans own land and in Houston there are churches renting School Cafeterias, strip centers, hotels, etc., and still there remains very much land to be possessed.

 In Joshua 18:3, the question is asked "How long will you neglect to go and possess the land which the Lord God of your fathers has given you?  Today we are still neglecting our blessing.

 Possessing the Land Ministries has been called to teach the statues and judgements that everyone from the pulpit to the pew needs to observe; that they may go and possess the land which the Lord God of our father's is giving us. Deut 4:1

 The calling includes the commanding and instructing of the body of Christ to prepare provisions for themselves, for within days they will cross over to go in to possess the land which the Lord their God is giving them to possess.  Joshua 1:11

We edify the body of Christ; "For we have seen the land and the land is very good" and we admonish the body of Christ "Would you do nothing?  Do not hesitate to go, and enter to possess the land." Judges 18:9

Renaissance Realty Group in conjunction with Possessing the Land Ministries will go in to the assembly of the Lord and share the commandments of the Lord that you may possess the good land, and leave it as an inheritance for your children after you forever.  1 Chron 28:8

 Utilizing Psalm 44:3 we encourage the body of Christ that possessing the land is not of their own doings but rather God's favour towards them and as Isiaih 57:12-14 states"...But he who puts his trusts in God shall possess the land, and shall inherit His holy mountain."

According to Acts 4:32-37 once the membership possesses land they then have the mindset and heart to give towards a Church possessing buildings and land.

Has Your Territory been Enlarged? (I Chronicles 4:10)

Has your latter end increased abundantly, though your beginning was small? (Job 8:7)

Are you continuing daily with one accord in the temple, and breaking bread from house to house, eating your food with gladness and simplicity of heart, praising God and having favor with all the people. And the Lord is adding to your church daily those who were being saved? (Acts 2:46-48)

Are you delivering the decrees of the word of God, such that your church is strengthened in the faith, and increasing in number daily? (Acts 16:4-5)

“ Write the vision and make it plain on tablets, that he may run who reads it.  For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry. (Habakkuk 2:2-3)

"For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it— lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish’? (Luke 14:28-30)

From my experience with church communities, I recognize the efforts of churches to relocate is as strong as any time in the past.

Inquiries by churches hoping to relocate pivot around their desires which often far exceed a churches financial capabilities.

Our job is to consult and define for a church what they face financially. Selling a church is not feasible if the seller cannot replace their facility. In 95% of the church property transactions, no sale ever occurs if the selling church did not secure new property.

Understanding the financial requirements to buy land and build or purchase an existing facility requires an educated seller or buyer.

Telling a church board that their relocation plan is not possible can be quite devastating for a church with a vision and aggressive mission. Our hope is to get to churches early enough in their investigation to formulate a workable plan that can be accomplished.

On a regular basis, we interact with churches who must investigate their financial capabilities to formulate a work relocation plan. No building sale occurs without having a workable relocation plan. It makes the representatives keenly aware that before a real estate transaction occurs tremendous background work must occur.

As always, we recommend to work through the financial evaluation laid out, FIRST. It will give you a good estimate as to how much you could potentially borrow. 

Planning For The Future

Planning: Experience has taught us that churches need assistance in long term planning to realize their vision and mission and also in securing favorable financing. And although our main commitment is to serve the church with its real estate needs, Renaissance Realty is also dedicated to assisting congregations in preparing relocation plans, as planning is the foundation for those churches considering relocation. However, an even more fundamental plan or concept is required: that of identifying the specific mission and vision for any given congregation; and that plan should be separated from real estate decisions. The mission and vision of a congregation then dictates facility requirements which, in turn, will then allow Renaissance Realty to formulate long range facility alternatives.

Finances: As often mentioned, financing is nearly always the biggest obstacle to a church meeting its facility needs. Renaissance Realty will assist you with the process of getting financially prepared to purchase a facility or land on which to build a facility. Our financial assistance for any congregation is two-fold and is as follows:

Securing Financing: We provide the Self Financial Evaluation contained within this resource guide which the church can complete on its own. This process is very informative and results in conservative estimates of both the price range the church can afford for acquiring or building a facility and the amount of the required down payment. We will then connect you with lenders who have expressed a strong desire and willingness to do financing for churches and who will also provide construction (interim) financing as well as permanent financing for newly constructed facilities. Some lenders understand the intricacies of the church and are committed to serving the church community.

Fund Raising: When churches begin the process of a major move or expansion, it is vital that the process begin early with obtaining the counsel of those professionals who conduct capital campaigns. When capital campaigns are conducted prior to the church needing a bank loan, the likelihood of their securing financing increases dramatically. Our advice is to get committed early in the process with the professionals of your choice. We will refer you to the individuals who can best serve your church.

Marketing: Direct Marketing of properties will continue in the same manner that has been so successful in the past. renaissance Realty will continue to market church properties as well as schools, camps, and retreat centers.

Six Steps To Securing Land, Facilities or Relocating

With our commitment to serve the church community, we receive calls from pastors, building committee chairs and church members requesting information not only on specific property, but also on various aspects of church relocation. Once churches begin seriously considering relocating, they are faced with a number of questions and dilemmas: "Where do we begin? When do we hire an architect? What about timetables?, etc." In response to these inquiries, we have developed our "Six Steps to Successful Church Relocation" which should prove helpful if your church is contemplating relocating.

I. Establish the Mission and Vision for the Church: Facilities limit ministries

• Define ministry(ies)

• Determine ministry target(s)

• Identify physical location target

II. Prepare Long Range Plans: Ministry and Financial Plans: Congregational approval

• Define Facility Requirements to Fulfill Ministry

• Develop Comparative Acquisition and Development Budget

III. Get Finances Ready: Determine cash available within 90 days of making offer on property

• Keep good financial records

• Establish solid relationships with lenders

• Prepare a financial plan

• Save funds for a facility

• Plan capital campaign

• Procure written commitment for cash

IV. Get Team of Professionals Selected: Choose those experienced in serving churches

• Capital Campaign Consultant

• Architect/Engineer to evaluate facility alternatives

• Experienced church Realtor®

V. Study Facility Options: Be flexible and ready

• Evaluate facility solutions

• Educate yourself to market values to be able to recognize a good buy

• Compare costs of various options

VI. Implement Plan: Action  

Strategic Facility Planning

As we work in the church community, we encounter many churches evaluating their long term facility needs who eventually look seriously at relocation. Facilities restrict churches from fulfilling their mission.

The common denominator in the churches that attempt to relocate and fail is the lack of formulating a workable relocation plan. Trying on your own efforts to complete a once in a lifetime event such as relocating a church can move a congregation forward, but many elements in their plan often have faulty information, thereby yielding a plan that is doomed to fail.

Faulty information generally relates to low estimate of construction costs on new facilities, net proceeds from property sales, timetables, and/or low estimate of cost of land for a new campus. Credibility of leadership is destroyed when a poorly thought out relocation plan fails. The church that needs to relocate will be further weakened by a failed relocation plan. Before we begin work with a church on selling their facility or buying land, we know it is mandatory to see that a workable plan is prepared; otherwise, the banker is going to eventually be the bearer of bad news when the church wastes time on presenting a plan that will not work.

We formulate workable plans, when given the opportunity, and let the church continue their mission of spreading the gospel. Remember, facilities limit ministries.

Some of the questions to be addressed in formulating a workable plan are:

What is the Vision and Mission of our church?

What facility needs will be necessary to realize our church’s vision and mission?

What is our church’s long term plan (for the next thirty years) to meet our facility needs and realize our vision and mission?

What will it cost to meet our facility needs if our current facility is not adequate?

How will we pay for the acquisition or expansion of facilities?

Can we afford the cost of relocating?

What are our options if we cannot afford to relocate?

If your church is being limited by its facilities, give us a call for professional assistance in addressing these issues, and, if applicable, marketing your current facility and relocating your church. We will assist you in evaluating your options and developing a workable relocation plan.

Marketing and Selling Your Existing Facility

Our success in selling properties is based on direct marketing to thousands of prospective buyers, including churches, denomination leaders (local and national), para-church and missions organizations, child-care centers, private schools, city government offices, public schools, funeral homes and fraternal organizations. Also, if a church property is appropriate for non-church use, we interface with other commercial brokers in order to sell the facility. However, since our reputation for both integrity and results has grown in the church community, a great number of buyers now seek us out to aid them in planning their relocation. To the thousands of churches and religious organizations we serve, we are truly “The Ministry of Real Estate”.

Securing New Facilities or Land On Which To Build

With experience in the purchase and development of land and in assisting churches and related organizations to buy or lease facilities, we guide the project through:

• Location and Selection of Site or Facility
• Price Negotiations
• Procurement of Necessary Permits
• Preparation of Contract & Related Documents

Renaissance Realty’s broad knowledge of government regulations and ordinances relating to land use, zoning, property taxes and development, equips us to solidly advise both churches and similar organizations.

Financial Hurdles

We have as much work with churches and schools trying to secure property or relocate as we have had at any time. The economic slowdown has resulted in some good buys on land, and the low interest rates are generating activity. However, the economic slowdown has impacted contributions and capital campaigns for some congregations, and for those churches their answer is to be conservative in their building or expansion programs.

Another significant change over the last year has been the slowdown of some commercial banks and their tightening of credit. Two major banks who previously were extremely aggressive in funding church loans have tightened lending to churches. Even churches with extraordinary equity in their current facility seeking only 60% loan-to-value loans, (i.e., they have a 40% equity) and, with only 25% of their monthly contributions being paid toward indebtedness, are being turned down for loans. It is understandable for banks to tighten their lending during an economic slowdown. However, we have been successful in getting loans for these churches, but it has not been at the usual banks. As always, we have had to work very diligently and creatively to find funding for churches.

Funding continues to be a major hurdle for churches. Overcoming that hurdle requires proper financial records, establishing clear internal budget limitations, and working with a lender who will give the borrower a decisive preliminary commitment before the church needs to borrow money. The most common predicament for churches is putting together a building program or acquisition and later finding out the church cannot borrow the necessary funds for their project. Money spent on architectural plans worth thousands and thousands of dollars are sitting on shelves at churches because no one secured a preliminary loan commitment and established a workable expansion or relocation budget. Spending the money on plans that cannot be used produces distrust in church leadership. The principle of “Counting the Cost” is a universal concept.

General Requirements From Lenders

3 years Historical Financial Statements

a. Income/Expense Statements
b. Budget Comparisons
c. Corresponding Balance Sheets

Current Year to Date Financial Statements

a. Equity in any Real Property
b. Budget Comparisons

Fund Raising

a. Breakdown of giving units and type of pledge campaigns
b. Number of giving units for last three years
c. Comment on success of previous campaigns

CPA Oversight Statement

a. Compilation Better
b. Audited is Best

Top 15 Donors - their Percentage of Total Giving

All Outstanding Debt

Project Information: Size, and Cost

Adult Attendance - Average Weekly for past 3 years and year to date

Government of the Congregation

a. Articles of Incorporation
b. Constitution
c. By-Laws
d. Church History
e. Background of pastor, associates pastors and other staff
f. Governing Body (Board, Committee, etc.)

Demographics of congregation

Denomination affiliation

Calculate a Payment

Enter a loan amount below to calculate what
a typical monthly payment might be.

Enter the loan amount here	$
All loans are calculated on a 15 year Amortization	15 years
The current BCLC lending rate is (Actual rate is set at closing and adjusts annually)	7.00%
The monthly payment on this loan would be	$
The actual loan amount available may be limited by your ability to demonstrate that you have enough cash flow available to make the monthly payments. Contact BCLC for more information.

Calculate How Much You Can Afford To Borrow

Enter your church's undesignated income and pledges
below to calculate what you could potentially borrow.

For last Fiscal Year, enter total undesignated income here	$
If you are collecting pledges against a three year pledge program, enter the uncollected amount here	$
The maximum amount you could borrow based upon your undesignated receipts is	$
The maximum amount you could borrow against your uncollected pledges is	$
These are the maximum amounts you couldqualify for. The actual loan amount may be limited by your ability to demonstrate that you have enough cash flow available to make the monthly payments. Calculations are based on current rates. Future changes in rates will impact the amount you could borrow. Contact BCLC for more information.

Self-Financial Evaluation:
Financing Your Church Relocation

In order to facilitate your relocation process, we wish to present some general information about financing to help you determine, in advance, what amount your church can afford for facilities. Before you and your congregation begin looking for new facilities, some points to keep in mind are . . .

Financing is the common hurdle churches encounter when considering relocation or purchase of a facility.

Congregations who attempt to purchase a property and are unable to secure financing experience disappointment and wasted effort. The church leadership can profit greatly by knowing what they can afford beforehand. Little is gained by looking at a property that is financially out-of-reach for your congregation; in fact, after looking at properties which are too expensive, it can be difficult to then adjust to the reality of what your congregation can afford.

Ninety percent of the church buildings sold require outside financing. Sellers generally need the proceeds from the sale of their facilities to allow them to move. In a few cases, sellers are able to finance the property for a purchaser, but that is the exception.

To help prepare prospective purchasers, we have prepared the following Self Financial Evaluation which you can use to determine the maximum amount your church can likely borrow from alternate financial sources and what the monthly payments might be.

Enter your Total Annual Income in line 1, click outside of the box, and our form will do the rest!
Please use no commas or $ signs.

NOTE: Most Church Lenders will require a down payment of at least 30% of the purchase price which may be in the form of equity in real properties currently owned (determined by appraisal). Typically, they will also require that the church be in existence for a minimum of two to three years. Also, financial records that are thorough are mandatory.Denominational Lenders may have different criteria than other church lenders.

Disclaimer: Renaissance Realty assumes no responsibility for information derived from use of this form. Renaissance Realty is not a lender and in no way represents that any individual or group may actually qualify for a loan based on the above criteria. This form is meant only to serve as a guide as to how much loan a church may qualify for based solely on income and without considering other factors, such as, but not limited to, credit worthiness, indebtedness and length of time church has been in existence.

Choosing a Church Site

One of our major tasks in assisting churches with their real estate needs is locating and evaluating sites on which to build facilities. A sound, established ministry can greatly benefit from the acquisition of a good church site. On the other hand, it should be noted that for young or struggling ministries, property ownership can hinder growth as most resources must go toward a mortgage, leaving little to fund the church’s ministry. One rule of thumb is to have 100 members before buying land and 200 members before building.

Assuming an established ministry has good leadership, a well-defined vision, and specific goals and strategies in place, some major considerations in church site selection are:

• Location: The phrase "location, location, location" certainly applies to church real estate. Seek out sites in a stable growth area with frontage on main arteries and near main community activities such as major shopping and work areas or on routes to these areas. Since people have a natural inclination to avoid crossing community barriers such as expressways, locate a new church site within the perceived limits of the community. After determining your desired area, pick several alternative sites within the area to investigate further.

• Size, Shape and Topography: As a rule of thumb, allow one acre per 100 to 120 people for worship and education space, parking and limited landscaping. For additional ministries such as day care, allow extra acreage. It now becomes imperative to have a strong church vision and mission and, by extension, long-term plans and goals: What ministries are planned that require facilities and how much space is needed? The best shape for a site is a rectangular tract with at least 100 feet of frontage. A level tract is the least costly to develop, but be sure the land is all useable and not in a flood plain.

• Costs to Develop: These costs do not include the actual cost of building, just the costs to get the property ready to build on. Such costs may include extensive grading if the property has considerable sloping or irregular topography and bringing utilities to the property if not already available. Other such unforeseen costs may include development impact fees, costs to plat or replat, drainage impact fees, unpaid taxes and possible taxes until the land is developed, and special landscaping requirements. Also, any toxic wastes on a site might require costly cleanups, especially if the previous owner or tenant stored or used fuels, chemicals or solvents.

• Legal Considerations: An otherwise perfect site may be unuseable because of various legal restrictions such as city codes, deed restrictions and easements. Each city has its own property codes, and they vary even within a city. Some cities, for instance, allow churches to build regardless of zoning; others may restrict churches to building only in certain zoning requiring a variance or special use permit (SUP) to be approved by planning and zoning and the city council to build in restricted areas. Further, a given area may have other city restrictions such as height or extensive landscaping requirements; also, rigid parking space standards may limit the number of people a facility can accommodate. Deed restrictions imposed by the previous owner may limit the ability to build a church or the manner in which it is built. Likewise, easements for roads or utilities may limit the use of a site. The title company will reveal deed restrictions and easements, but not city codes. Obviously, legal assistance is mandatory in acquiring property.

FREQUENTLY ASKED QUESTIONS 

QUESTION : How long does it take to sell a church?

From our experience it takes an average of 8 months to 1 year
to sell a church property. Unlike residential property, churches
move slower due to the number of people involved in the decision
making process. Other factors that influence the church market
are price, building condition, location, seating, and parking.

QUESTION : How do churches get financed?

Church financing has changed considerably in the last 15 years.
Religious institutions were considered "high risk" in the mid 1980's,
however, commercial lenders now seek church business. We have worked
with many banks, mortgage brokers, and bond companies to help churches
reach their vision. A list of lenders is available upon request.

QUESTION : What does it take for a church to qualify for financing?

All lenders have different criteria and programs, however most require
a church to be established for at least 3-5 years along with financials,
the Texas State 501C-tax exemption status and at least 20%-30% of the
Sales Price for a down payment (churches are considered commercial
properties and require a larger down payment than residential properties).
International Church Realty is not a lender and in no way represents that
any group or person may actually qualify for a loan based on this criteria.