If you pick up Minnesota Monthly magazine this month, you’ll see an about the revitalization of Redwood Falls. That’s where we own two commercial buildings, with plans to own more.
I’m really excited for what they are doing out there. And going through it with them has shaped my thoughts on what investing in real estate really is, and my bigger goals around it.
Investing in real estate isn’t just buying an income stream. Good investing solves a problem. We started investing in Redwood because one of our client’s expressed his problem to us. He wanted a retail location downtown, but he couldn’t afford to buy the building. We could…so we did. We got a cash flowing building and improved it’s value with a tenant. He got a space to operate and improve his business.
As we did that, we learned that this is a bigger problem in Redwood. There are lots of business owners who want to operate in the downtown area, but they don’t have the funds to renovate the buildings for their use. What we did once, we ended up doing again. More business owners and building owners have approached us since, so we’ll probably do it a few more times.
Around the same time, other business owners and citizens have organized and gained momentum around revitalizing the downtown area in a group called Discover Downtown (of which we are a particating member). So far they’ve hosted a downtown cleanup effort where the local sanitation company donated dumpsters and locals helped clean up buildings and alleys. They’ve also hosted a downtown block party to showcase local business.
I feel like this is the start of a big change in that community for the better. And I’m happy to play a small part in it.
I read a good book recently called “Strong Towns” by Charles Marohn Jr. It’s all about how we keep our cities thriving, or get them that way if they are not. The answer doesn’t involve the city council approving the new Walmart or bringing a bunch of strip malls. It starts with normal people investing and collaborating in their historic downtowns. Those buildings, when occupied by local business bring more to the community in terms of tax base, profit, and jobs then the Walmart down the road.
It isn’t what all the investing gurus recommend. We’re not investing in trendy areas with tons of population growth. We ARE creating win-win partnerships with local businesses and communities. That makes me feel way better than owning yet another strip mall with yet another national chain retailer.
Real estate investing doesn’t have to be just about your family’s future wealth and independence. If done right, you can solve problems in the places and communities you love. Over time, you could transform whole cities. That’s pretty cool!
What problems do you want to solve? Let’s chat about them!