You need a lot of money to invest in the real estate market. If you wanted to invest as a part of an investment pool, it might cost you anywhere between $5,000 and $50,000. And, those are just conservative estimates. If you wanted to invest in multiple unit properties, luxury properties, or expansive real estate properties, you would need more money. Paying $125,000 is the usual starting price for investments in such projects.
There are so many operational, legislative, and overhead costs associated with real estate investment, like insurance costs. Did you know that real estate experts suggest that you never, ever name a real estate development or building in your own name? Now, you can’t compare yourself to storied business people or family-run, real estate business dynasties. Such people have legions of lawyers on retainer. It is suggested that you pick a business name, unrelated to your legal name so that people won’t know who to sue as easily if someone wanted to sue you.
You could be sued if someone fell and broke an ankle in front of your real estate investment. Or, if a brick fell from a wall and struck someone. However, there are also other reasons you may want to shield your name. You may buy into a real estate project that houses multiple businesses. So, even though you own the property, you have no control over the businesses, or the products, transacted via your investment.
Businesses located in your real estate investment might sell firearms, alcohol, pornography, or tobacco. That may not mean much to certain people, but it might mean a lot to people with strong religious and moral convictions, especially for people who engage in biblically responsible investing.
What Is Biblically Responsible Investing?
How many times have you turned on the TV news and heard a story about mugging, murder, or drunk driving crash? We usually listen to the report and then turn off the TV. Such things don’t affect us until they happen to us. Yet, how would you feel if you found out that the criminal in that news report bought weapons or alcohol from a business located in a building that you invested in? Now you know why you shouldn’t use your name in a real estate business property.
Most people may only have to worry about the skill of their legal representatives. People with stout, pious beliefs may find themselves to be more morally conflicted. After all, people with strong religious values like to practice what they preach. One way to do that is through biblically responsible investing. Biblically responsible investing is the practice of strictly aligning one’s religious values in line with their investment practices.
It’s hard to preach against adultery if you know your real estate investment houses a pornography studio. Or to rail against vice if your real estate property houses a store that sells tobacco and alcohol. Simply put, if you consider yourself a religiously devout person, then its hard to reconcile investing in properties, products, businesses, and stocks that sell products antithetical to your own beliefs.
A Lifelong Business Strategy
Biblically responsible investing is more than just about claiming moral bragging rights. It’s a lifelong business verification strategy. Checking to see what kind of businesses are related to your investments and stocks. After all, if you own a stock, share, or minority ownership in an investment or business, you have no control over management turnover. You need to regularly check out who is involved in your investments.
Or you could encourage like-minded religious foundations, organizations, and charities to verify their own business investments and affiliations. You must keep track of your investments, and how business is conducted through your investments, for as long as you are financially invested. If you are religiously pious, you can’t condemn the wrong that you see around you if you invest in things you believe are wrong.
Read More
- Making Sense of Your Investing Options
- Things to Know Before Investing in Stock Markets
- Why Investing in Property can be Good in the Long Term
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.