Real Estate + Impact Investing
Vip Vipperman was one of the presenters at our recent event for Faith Driven Investors, and he was kind enough to write down some of the insight he shared about the real estate market and what it might look like for investors seeking to increase their impact.
by Vip Vipperman
Any conversation about real estate investment comes down to two words: risk and reward. All investments have both, but let’s talk about some rewards that go beyond just financial to an even more significant impact for the Kingdom of God.
Real estate is a people business.
There is a chance to impact people for the Kingdom in every area of real estate, whether vendors, employees, tenants/residents, investors or brokers, as long as there is intentionality. We work with these people each day, but as Christ taught in the story of the Good Samaritan (Luke 10:25-37), we must truly see them, actually care about them, and then take compassionate action with the people we interact with on a daily basis. We can do this and make money at the same time.
Real estate investing can also be impact investing.
It is not a question of why we should consider the impact when making real estate investment, but why not? Everyone wants to invest with at or above market returns. This is wise and what we should do. But many might not know that there are many opportunities for good investments that also provide an opportunity to have an incredible impact for the Kingdom in addition to healthy market returns. What faithful believer with investment dollars ready to be put to work would not choose to invest this way if they knew the opportunity existed? We simply have to get the message out there to more listening ears.
Key focus areas to consider:
When looking at real estate impact investment opportunities, there are six key focus areas to consider: time, proforma returns, spiritual impact, strengths, risk and current opportunity. To give you an idea of what these opportunities look like, let’s look at the real opportunities listed below, which are all available today.
Questions to ask if considering a real estate impact investment:
Are you short term focused or long term focused?
Do you want mailbox money, smaller returns each month as dividends, or are you wanting a more substantial return and willing to wait a few years for it?
What type of spiritual impact is important to you? Do you want the gospel shared with the lost in your city, across the US, or in foreign lands among unreached people groups led astray by false religion? Do you want to help churches get started or pastors get refreshed?
How risk averse are you? Are you willing to trust a company with your money for a few years if it means more significant returns, or do you have to get a check in the mail each month and be able to drive by and see the project any time you want?
You should also begin to consider tax implications, leverage through debt and what to do with your returns in the form of charity for even more impact.
The opportunities are out there. We just have to take them.