The overall picture of real estate investors: rich, white men who have no empathy for their tenants and try to get legally as much money possible and try to avoid tax. Is this your picture of a real estate investor? Is this the reason why you think it may be not something for you? And is Real Estate for everyone?
Let's take a look what real estate investing really is and why it could still be something for you, even though you feel attracted to the typical real estate investors ;).
Is investering in Real Estate Unethical?
Maybe you are doubting whether investing in real estate is something for you, because you find it unethical. You make money because of someone's rent payments. Maybe you buy even homes for renting that others would want to have as their first home. Besides, you also almost pay no tax. Does this feel right?
Personally I think investing in Real Estate can be done unethically but also ethically. I don't find it ethical to ask for the highest rent prices and to always increase the rent where possible to have the highest profit for yourself. It is important to look at the wellbeing of your tenants before increasing the rent. My opinion states that it is for sure possible to invest ethically in Real Estate, but it could cost you some profit.
How do you invest in Real Estate in an Ethical Way?
The question on how to invest in Real Estate ethically will be answered differently for everyone. How I will answer this question: If you feel like you have done more good than bad under the line, you act ethically.
An example: You buy 10 social rent apartments from an investor (those apartments were normally also rented out) in New York. You fill in the checklist to determine the rent price and the recommended price seems to be lower than the rent price the previous landlord has asked. You decide to ask the recommended (lower) rent price and still make a nice profit.
In this case you don't buy homes that normally could be bought for a family and you lower the rent price. In this case I think you invest in Real Estate ethically, but it could be your opinion is different on this. Maybe you can let us know in the comments ;).
Let's look at another example which is even more ethical than this one ;).
Example 2: You buy an old, vacant company and decide to create homes in it. The architect creates a beautiful design where more windows will be installed. The middle space in the building will be used as a joint room. You ask a reasonable rent price and you choose the tenants who are going to live at this place, because you find it important that the tenants want to create a nice community. They ask you if you want to build a picnic spot outside the building and you deliver the picnic table with a nice welcome's cake.
In the second example you create new homes which wouldn't have been there otherwise and you care about the wellbeing of your tenants. What is your opinion about the two examples? Let it know in the comments ;).
Only Rich, White Men
Maybe you are doubting about whether you want to invest in real estate, because you don't fit into the 'stereotype'. I understand this reason very well, because I also don't feel at home in this 'world'.
Luckily research shows that more and more women are investing in real estate and show that the real estate world is not only a men's world. Besides, we should all not give a sh*t about this stereotype ;). Every sector has its typical stereotypes. You probably recognise the stereotypes of the smooth sellers and the boring engineers, but does that stop you to follow your heart? I didn't think so ;).
Is Real Estate For Me?
Now we are going to answer your question: is real estate for everyone? and is it something for me? Ofcourse is Real Estate not something for everyone. Just like about everything else. Not everyone likes cooking just as not everyone likes investing in Real Estate. But it is still possible to invest in Real Estate even though you don't like it with for example a property manager. But would you want to invest in Real Estate at the first place?
In my opinion everyone who wants to take a look in the real estate world and has a good heart is applicable for the job. It is important that you do not only want to invest in real estate for the big moneys, because you will probably make unethical choices. Real estate is social work and raising the rent 3 times a year won't make you a good landlord.
Do it because you like it, you want to make some money and you find it interesting to broaden your knowledge about real estate. Don't forget that you really make an impact on the tenants lives. Make sure you will be a good landlord ;).
Want to know more about real estate? Take a look at the blogs! :)
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