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Overview of How house raflle connections work.
 

Home raffles are a really simple concept and have been happening since the early 90's; but for many people, this concept is extremely new. A home raffle is simply where a homeowner decides to sell their home to a Non-Profit Organization (NPO) so that the Non-Profit can raffle it off as the main prize.

Let's say you are a home owner and you decide to put your house (which appraises for $300,000) on the market. Your mortgage payoff is currently $220,000. After 8 months on the market, you have only been offered $250,000 by one interested buyer. Other buyers have offered, but have been unsuccessful in obtaining a mortgage. Given this, and the declining economy, you are not satisfied that your home will sell at its appraisal value. In addition, you need at least some of that profit to move into your new home.
 
A friend tells you that with the help of a Non-Profit organization, raffling off your home is a possibility. You connect with a grassroots NPO that agrees to raffle your home. You sign a contingency contract that says they will buy your house from you once they have sold a set number of tickets. The Non-Profit Organization begins to sell 8,000 raffle tickets at $100 each.
 
The day of the raffle arrives, and a lucky family is awarded a home with no mortgage responsibility. (Note there are taxes to be paid here!!!) At the same time, the Non-Profit organization purchases your home at its appraised value (Not the market value, not the amount the home owner owes, but the amount that a REAL appraiser says the house is worth!!), In this case, that is $300,000 and it leaves you, the homeowner, with the $80,000 cash profit you expected to get!
 
During the raffle, the Non-Profit Organization pays any expenses with regard to conducting and marketing a successful home raffle. (Those things include items like closing costs, marketing expenses to get the word out, website creation, ticket processing, legal fees and so on.) When all debts are settled, the Non-Profit organization is left with the remaining balance to continue its philanthropic work in the community. Let say their costs were $100,000 total, they would be left with $400,000 profit.
   
    $800,000 (from ticket sales)
     
minus
 ($300,000 + $100,000) (for house and other expenses)

=
  $400,000 (Fundraiser Net Income)

The biggest misconception for most people is that a home raffle can be done by any homeowner that wants to print and sell tickets... This Is Not True!! In order for a home raffle to be legitimate in the eyes of most state laws, it needs to be conducted by a Non-Profit Organization. This is just one reason why we created USAHomeRaffle.com - to connect homeowners with non-profits.

Homeowners looking at the possibility of raffling their home are able to sign up with USAHomeRaffle.com ($50 registration fee - Click Here). This gives homeowners the ability to add their home to our database of "homes available for raffle". In order to be seen on the list by non-profits, the Homeowner must create a detailed description of the house, upload up to 28 photos, and enter their personal contact information.

Non-Profit Organizations who sign up with USAHomeRaffle.com (Free Signup - Click Here) are able to search our database of homes for owners who are willing to sell their property through a raffle. Organizations will be able to view all information entered by the homeowners in order to decide which home to choose. After selecting their favorite home on the list, the Non-Profit Organization is able to easily contact and communicate with the Homeowner through USAHomeRaffle.com.

Once the Non-Profit Organization contacts a homeowner, the lines of communication are open. The two parties will communicate with each other and come to a decision to hold a raffle involving one home and it's owner(s). When this agreement is made, there are preliminaries that must be completed by the Non-Profit Organization (local & state government approval, lawyer representation, etc.) to make the raffle legal..

Once all requirements have been completed to make the raffle legal, Non-Profit Organizations can take advantage of USAHomeRaffle.com's additional services to help both parties get everything in place.

We're with you all of the way--connecting Homeowners with Non-Profits and making sure everyone has the needed resources to make your raffle a success!

 
 
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