I’ve continued to read Rich Dad, Poor Dad by Robert Kiyosaki and it continues to put this driving question in my mind. How can we invest in Real Estate in a way that is ethical?
Currently though only thing I’ve come up with is to do Real Estate in rich areas where it’s not directly affecting the poor. As I said in a previous post, so many options of making money in Real Estate seem to be doing so at the expense and oppression of the poor.
So, here is the deal. I want to make a lot of money. I want to make money so that I don’t have to raise it, or break my back working for it; I want to have money so that I can do all the things I desire to do and not have to worry about it. The stock market sounds interesting to me as does Real Estate. Lucrative business ventures are great too, but here’s my catch. I want to invest in things and in ways that I believe are ethical.
I’ll try the real estate thing, but not if it means ripping off someone just because they are in a tight spot, and not if it means pushing the poor out of their neighborhood, and not if it means charging oppressive rent prices.
I’ll try the stock market, but I don’t want to invest in companies that run sweatshops. I don’t want to support companies that make their millions in alcohol, pornography or the slave trade. I want to make money helping the world become a better place.
Anyone know of any good places to go for that kind of financial advice? Because I haven’t a clue.
back to sleep maybe? i mean…it is a dream, right? hahahahah.
actually i know two brothers in hawaii that dabble in real estate and their entire goal is to offer first time buyers a crack at owning a home without selling their soul for a huge mortgage or having to supply a huge down payment. the problem for them is very few lending institutions want to be part of this.
as for stock market? hmmmmmm….man, it takes so much research to find the companies you are looking for and i have become so dissillusioned by “the man” that i am not even sure major public companies disclose the truth to minor shareholders.
i think, however, that offering low or controlled rent single family units in average neighborhoods in less inflated places (note NYC, san fransisco, miami, etc) may be a way to succeed in your hopes. it would require committment on your part and a great screening process because your profits would be directly effected by the love and care shown to your “rentals” by your renters. like anything though…i am sure there are risks.
if you find out anything more, let me know. i, too, would like to make a decent amount of money in life without sacrificing my ethics and morals.
drew.
I have a friend who’s first after-college job was with a non-profit that did good through real estate. I’ll see if I can email him and a) what they do and b) contact info for them so that you can talk to them and find out ways you can do good through real estate.
Hi Ariah!
As promised, some comments direclty relating to your post:
Real estate is a great way to make money as well as give back to the community and help those in need.
I started out as an agent which I think can be great way to get your foot in the door and learn the retail side of things. It also gives you insight into how transactions are handled from both the selling and buying side, it gives you insight into the mortgage industry from both sides and like I said, can be very useful in learning about the industry in general.
Now, that’s not to say I advocate that everyone should become an agent in order to be an investor – not so. Being an agent is not for everyone. The education can invaluable though and I’ve known several people who take the classes and get their license solely for the purpose of learning but never become agents.
The problem, from my point of view, in being an agent AND investor lies in the disclosure laws and agency laws which vary from state to state. You are obligated to first list and try to help the client sell their home before you can propose to buy it from them yourself as an investment. I strongly caution against doing both. However, again, I know several people who do just that, but it’s not the right way for everyone.
Your local library is a great place to learn about investing, being an agent, as well as many other facets of the industry such as mortgage lending, development and a multitude of other niches.
The number one key to real estate is education. The more you invest in learning the business, the more and better prepared you will be. Just be careful about “analysis paralysis” and don’t spend so much time learning that you never get around to the doing.
I suggest you begin by learning about the different types of investing – development, foreclosures, rehabs, etc and then pick one that seems to resonate with you. Once you’ve decided what niche you’d like to focus on, study everything you can in regards to that niche.
I hope that helps answer your questions. Please feel free to keep in contact with me and ask questions.
Annie
Richard,
Are you subscribed to this post? If so, mind seeing if you can get that friend’s contact info? I’d appreciate it.