Investing in real estate has always been a popular way to invest money, but it is often considered a rich man’s game, leaving low-income people out of the housing market. However, a new trend called philanthropist real estate investing is changing this.
The real estate philanthropy (housingphilanthroinvesting, in English) is a real estate investment model that combines the power of philanthropy with the world of investments. The goal is to provide affordable housing to low-income people, while investors earn a solid financial return..
There are companies that allow investors to buy properties in the United States and sell them to low-income families, through a sales contract known as “land contract“. Investors receive an annual return in dollars, while low-income families gain access to housing.
But why is it important to invest in this model? First of all, because it has a positive impact on the planet. The properties that are sold are of low cost of entry, which makes it a permitted investment for many. In fact, There are companies that work with local communities, in multiple states across the country, to provide affordable housing, which in turn can contribute to the revitalization of different neighborhoods. For its part, it promotes accessible property instead of renting, which could be a solution to reduce poverty and family stability in the world., as well as increase the financial security of families. The need to build more new housing is also reduced and urban renewal is promoted.
The commitment to real estate philanthroinvestment opens the game of benefits for Argentine investors who wish to allocate their capital to the United States, entrusting their investment to the management company, which will act as an intermediary, while investors make the key decisions, as a team with the company. In addition, they can obtain a solid financial return, being an attractive opportunity for those who seek to diversify their investment portfolio.
In recent years, this business model has become a popular form of investment in the United States and now also in Argentina as an independent philanthropist, as it allows you to learn the model and manage it yourself, helping families access the property in an accessible way.
One of the benefits it proposes is that the investor owns each property and holds the deed until the family pays off their loan. This means that the investor can earn a return, while he helps families to have a home of their own., with a tangible property in your investment portfolio. In addition, investors become a real estate bank in the United States from the comfort of their home, anywhere in the world.
In the case of the United States, according to the process applied by the intermediary company, families go through a qualification process to ensure that they can repay the loan and maintain the property, providing investors, the confidence that they are helping families to have a home of their own, and that their investment is backed by real estate.
Be a real estate bank, rather than a rental owner, has its advantages. Investors are not responsible for property insurance, maintenance, or property taxes once the home is occupied. This is because all those fees are paid by the family, which also has a greater incentive to take care of the property, since it is their own home and they are working to pay off the loan.
In short, real estate philanthroinvestment is a unique investment model that allows investors from Argentina and around the world to own property in the United States and own their investment portfolio with a return in dollars. With the ability to manage properties from the comfort of their home and the ability to replicate the model in their own country, Argentine investors can diversify their investment portfolios and make a positive difference in their communities.
* Iván Anz is the creator of Filantroinversion, author of the book Filantroinversion Inmobiliaria, and Founder of Equity & Help and PhilanthroInvestors.
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by Ivan Anz
