3 Tips to Start Real Estate Investing Without Compromising Your Values
Real estate investing (REI) is a great way to build multiple sources of income and build generational wealth. You can Start Real Estate Investing Regardless of the Housing Market. However, it does get a bad reputation! Is real estate investing bad? The ethics of using real estate as an “investment,” comes up all the time. I get it! However, there are many strategies and ways that you can invest in real estate, without compromising your morals and values. Here are three ways you can invest in real estate more ethically.
Pick The Right Strategy
One of the main reasons that people are hesitant in investing in real estate, is because they feel they are contributing to the housing shortage. They’re also worried they will drive up the prices of homes. However, you can focus on long-term investments versus flipping properties for a quick profit. This prevents driving up prices and can help stabilize communities.
However, if flipping homes does attract you, you can reduce the negative impact by offering fair prices on both purchasing and selling. You can also flip distressed properties and either sell to the locals for a fair price, or sell to investors looking for turn-key rental properties.
Another way to invest without compromising your values, is to focus on building communities. Investment in Poor Communities Improves Family Income, and can help stabilize the community. This is a strategy that I am focusing on. Buy properties in low income areas that have distressed and vacant properties. Purchasing properties in distressed areas can help revitalize the community by cleaning up the area and repairing old properties.
In addition, offer affordable housing to low-income families or individuals. Avoid driving up rent prices! There are many investors that want to squeeze every penny out of their tenants. However, you can keep rents affordable and still create income for yourself. This can be a win-win situation where you’re able to provide a valuable service while also making a profit.
Commit to being a good Landlord
We hear about horrible landlords all the time, and many properties I look at or buy are from slumlords. However, it doesn’t have to be that way! You can choose to be better and do better!
Treat tenants as human beings
Treat tenants as human beings not as dollar signs! Tenants are human beings that deserve compassion and respect. Keep a balance of their well-being and yours. Avoid trying to “nickel and dime” your tenants for minor things. This will benefit you as well, as it reduces vacancies which are costly. The cost of Tenant Turnover, means you have to paint, replace carpets, etc, to make it rent-ready again. Not to mention the fees of your property manager and marketing!
Be honest and transparent
Make a commitment to be transparent and honest with your tenants, partners, and investors. Many landlords try to make their properties seem better than they are or try to hide problems. Don’t try to hide any potential issues or mislead anyone to make a profit.
Provide safe and well-maintained housing
When renting out properties, make sure that you prioritize the rights and well-being of your tenants. This means providing safe and well-maintained housing, addressing any issues promptly, and respecting their privacy.
In addition, it is a win for you as well. Neglecting the maintenance of your property, can lead to major repairs. I have purchased several properties in which the seller failed to do basic maintenance. This led to large repairs, and I was able to get a larger discount (win for me but reduced the sellers profits).
Investing in real estate, with these tips in mind, you can create an investment strategy where you don’t compromise your values. You can build wealth while also promoting compassion and ethical practices. REI doesn’t have to be cutthroat and that there are ways to make a positive impact while also making a profit.
- Empowering Her Finances: 7 Personal Finance Books for Women to Unwrap this Holiday Season
- Hustler to CEO: How to Automate Your Business and have a CEO Mindset
- Balancing Business Growth with a 9-5 Job: 5 Essential Strategies for Success
- MoneyChisme Founder Violeta Sandoval
- Fannie Mae and their Game-Changing Move: 5% Down Payment for Multifamily Homes