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.
As a gift over the holidays, Mindy and I received the book, Rich Dad, Poor Dad. It had been recommended to me before and I had browsed the first chapter but hadn’t picked it up.
I’m currently a good chunk of the way through it and it brought up an interesting financial issue that I have. In the book Robert Kiyosaki will give examples of was that he made money. The two primary ways have been small stocks and Real Estate. I’ve read my fair share of money making and finance books and a lot of them, as well as plenty of people say there is money to be made in Real Estate.
You look at the ideas, me being somewhat of an entrepuneur, and your mind start whirling through all the possiblities and the idea of being able to make a ton of money quite quickly through buying and selling real estate (I know some of you are surprised by me talking like this). When I think only about the financial side of the real estate business, it’s quite tempting to try and jump in. And that’s when I step back and think about some of the social implications.
I’ll start with a typical example. Pick up your average ‘Make millions in Real Estate’ book and one of it’s tips will be to go to the bankruptcy office, or look for foreclosure notices, those are places to get houses for dirt cheap. Never have I seen in ANY book or tape or information anything that addresses the needs or situation of the person that is bankrupt or foreclosing. If anything it might mention that they’ll be glad to have the money, but I highly doubt they are glad to lose their house. “Your misfortune is my fortune,” that’s basically what it is, and that just doesn’t sound right to me.
The other major problem with real estate that I see is the power it has to push people around, particularly poor people. Gentrification is somewhat of a buzzword, but it’s happening and it’s frustrating and sad. Pick any major city and what’s happening is people with low incomes, but people who had a stable home, are being pushed out of their residence and left to move somewhere else. Now that the city has become popular again, those with money are forcing (I’ll explain in another post) out those without money. This includes housing projects (Cabrini Green of Chicago is now condos). This troubles me.
I like the idea of buying a house some day. I like the idea of living in community with people in a place that we own. I worry that my purchasing and profiting will be at the expense of others. There is oppression in the way we do real estate and I want to have no part of it. I only hope I can find out a way that is possible.