Positively Impacting Other’s Lives While Investing in Multifamily Real Estate
It ‘tis the season to think of others. Those of us that invest in real estate are not necessarily a bunch of Mother Theresa’s, but there is a rewarding fringe benefit that comes with RE investment; social/economic impact. And while, when we start out investing, we are thinking about securing enough cash flow and profit from the sale to set ourselves and our families up, it is also true that it is about positively impacting others' lives.
I can be a bit cynical. It’s part of my sense of humor; not sure where it came from, maybe my dad, I don’t know, but it is there. It is good to have a bit of skepticism. You don’t want to look at everything through rose-colored glasses, but to overburden yourself with cynicism can be counterproductive. Regardless, call me suspicious when I would hear others say, “Real estate investing for me is all about positively impacting communities.”
My cynical self would say, right buddy, it's all about the Benjamins. To a degree, it is all about the Benjamins for us. It is about securing the security and time-freedom to do what we want when we want, with whom we wish to. Having that freedom is rewarding, but gratification can grow exponentially when we go beyond our immediate circle.
I was struct with that feeling, as we were doing due diligence on over 160 units on our last property. As we walked and checked each unit's condition, we were walking through our tenants' day-to-day lives. They were decent, hardworking people. Their children were hard at work, doing their remote schooling. These people deserved a safer, cleaner environment and property management that would respond to their needs and swiftly take action when items were in disrepair.
THE ECONOMIC IMPACT
Consider the economic ripple purchasing one apartment building can have. Ponder the number of painters, framers, contractors, carpet and flooring people, electricians, plumbers, cleaners, groundskeepers, property managers, leasing agents, RE brokers, lending brokers, and yes, investors whose lives it will impact. People wonder why real estate investors get so many tax advantages. It is because the government wants to incentivize us to improve communities. Investing in "paper money," like stocks, doesn't generate that impact.
Now I don't want to pat myself on the back too hard, but for a minimal rent increase, that 160+ apartment community will infinitely improve – I know that. We are positively impacting people's lives while securing our futures; it is truly a win/win. And I am not just blowing smoke. Even my cynical side agrees. Happy Holidays.