Faith based real estate investing for profit and faith -

Housing Sacramento Magazine

Faith based real estate investing for profit and faith/real estate

What is faith-based investing?

Faith based real estate investing is a form of socially responsible investing (SRI) with a major difference. Socially responsible investing is defined as an investing strategy that aims to generate both social change and financial returns for an investor. Faith based investing has both of these elements but adds compassion and integrity when dealing with the property seller.

Faith driven investors are attempting to integrate biblical principles into every aspect of their financial life. The faith driven investor views real estate through a value system based on their faith. Value based investment strategy has been a common term for investors for many years. It is this value base that gives the faith driven investor the process or way they deal with people and money. By focusing on the person first with a biblical context they will act with integrity, kindness, respect, accountability to their God, and long term relationship with everyone in the transaction.

The basics of faith-based investing

Faith-based investing does not differ in its fundamental approach from that of investing. That is to say the way real estate is valued is generally the same across all investment approaches. The faith-based investor aims to impact social interactions with their faith’s values and still get a proper financial return on the investment. These investment companies take actions aligning themselves with a set of underlying principles and often focusing on ethical concerns.

The faith based firms provide investors with the unique opportunity to earn market-rate returns while creating a transformative cultural impact. For example, a multi-family apartment can create a good return on investment and have support from communities to meet the needs of disadvantaged people.

The investing is about the bottom line

Faith-based investments are similar to other investment philosophies in its purpose of maximizing investment returns. The main difference between the standard investing and faith-based is the investment must align with the faith’s principles both in the investment itself and how they purchase it.

In other words, acquiring a quality property with unethical practices is not a faith driven principle in my option. Integrity is core to faith based investing. There is a difference between traditional and secular investment strategy versus faith based individuals and companies. Integrity is the way it should be. But we know people have abused religion and believers to steal money and reputations in the past. Due diligence is a high priority when dealing with a faith based business.

As a Christian real estate investor, you can have peace and discernment no matter the economic climate. Honoring God is the main goal of a Christian faith driven investor. Maximize the value in your projects by putting Jesus first. He challenges us to think bigger than our own needs. We can achieve this goal by calculating the eternal impact of how we can use our capital to promote God’s kingdom. The importance of kingdom-minded economics is critical to faith-driven investing. Visionary investing begins with the Great Commission and God’s calling for your life.

The Christian faith values help guide investors who want to align their faith with their investment strategies. Philanthropy and diversification are key principles dictated in the Bible. Success can be measured in human flourishing and community renewal as well as a good return on investment.

Christian real estate investing

Christian real estate investing is a type of faith-based real estate investing that specifically incorporates Christian beliefs and principles into the decision-making process. This can include investing in properties or organizations that align with Christian values, such as those that promote affordable housing or provide community services. Christian real estate investors may also seek to avoid certain types of investments that they believe are incompatible with their faith, such as those involved in gambling or other vices.

Christian real estate investors may also incorporate prayer and discernment in the decision making process and seek to apply biblical principles in their business and investments. They may also seek to build relationships with other Christian real estate investors, and support and partner with Christian-owned businesses and organizations.

It’s worth noting that the approach of Christian real estate investing may vary depending on the personal beliefs of the investor, and it’s different from person to person.

Questions to Ask Yourself Before Using Your Real Estate as a Ministry

Can I find a specific property in my region to meet my ministry goals?
Do you know people who are passionate about the mission and are willing to invest?
Do you need a company who manages the property to use it in ministry?
How much are your investments going to return?
Do we need a home to be affordable for others?
Is this just a real estate investment or is it a tool for a ministry?
Is helping the homeless or unhoused community the goal or the real estate investment?
Do you want to help people learn a craft so you are looking for distressed houses or ugly homes?
Are you going to invest your own capital and credit or are you looking for faith based investors?
What are the specific needs of your local real estate market?
Can you use the real estate to teach people in the construction trades?

Biblical real estate investing

Biblical real estate investing is a type of faith-based real estate investing that specifically incorporates teachings and principles from the Bible into the decision-making process. This can include applying biblical principles such as honesty, integrity, and fairness to the investment process, as well as seeking to invest in properties or organizations that align with Christian values.

Biblical real estate investors may also seek to avoid certain types of investments that they believe are incompatible with their faith, such as those involved in gambling or other vices. They may also seek to build relationships with other Christian real estate investors, and support and partner with Christian-owned businesses and organizations.

For some biblical real estate investors, the goal is not only to achieve financial success but also to use their investments to make a positive impact on their communities and the world, by creating affordable housing, providing community services, and supporting businesses that align with their values.

Biblical real estate investing may also involve studying and understanding the biblical principles related to financial stewardship, property ownership, and the use of wealth, and incorporating those principles into the investment strategy.

Conclusions:

Two main insights about faith based investing; the return goals and strategies. Faith-based investors want to generate returns when they choose investments that align with their religious beliefs and values. The investment strategy for faith-based investors is on ethically and socially responsible investments.

Faith driven investors are dedicated to the faithful use of their wealth to the glory of God. God owns it all and we are stewards of what He entrust to us. He cares deeply about how we use these assets to His glory and how the money impacts our heart. Dan Parisi is a faith based real estate investor.