Hello hello dear blogosphere, it's Jon here and I'm back to talk to you about impact investing, more specifically, real estate impact investing.
Real estate impact investing is all about investing in properties or projects that have a positive impact on the environment and communities. We're talking affordable housing, energy-efficient buildings, and sustainable development projects. But there are some extra sustainability benefits when it comes to developing on brownfield sites and neighborhood revitalization.
In case “brownfield sites” means nothing to you… Brownfield sites are properties that have been previously developed, and often abandoned or underutilized, leaving behind environmental hazards. Developing on these sites not only helps to clean up and revitalize neighborhoods, but it also helps to preserve green spaces and prevent urban sprawl. By investing in properties and developments in these types of areas, it can help to create jobs, provide low-income families with access to safe and affordable homes, increase property values, and improve the overall quality of life for residents. It also helps to prevent urban decay and preserve historic buildings and neighborhoods.
One of the things I love about real estate impact investing is that it allows you to have a direct impact on the communities and environments in which you're investing. And real estate investments can also be pretty stable. Why? Because they typically have a longer time horizon than other types of investments, which can help to mitigate risk and provide consistent returns over time. Plus, because real estate investments are often backed by tangible assets, they can provide a level of security that other types of investments may not offer.
But, like with anything, there are also some challenges to consider. One of the biggest is that real estate investments can be pretty costly to get into, especially for individual investors. And the real estate market can be highly cyclical, so the value of your investments can fluctuate greatly depending on economic conditions.
I started Soma Reality Investments LLC because real estate impact investing is a pretty cool way to use your money to make a positive impact on the world while also potentially making a return on your investment. We filter through potential projects for ones that meet the requirements of our mission, only working with reputable developers that show a commitment not only to environmental sustainability but to the people who make the project happen, and those who live in the community. We are working to make it easier for more people to invest in the sorts of projects that make communities more human.
Thanks for reading and I hope to have some news about opening up the fund in the near future to a wider pool of investors!