Investing in real estate is a great way to diversify your portfolio and create a source of passive income. However, many investors are not aware that they can also use real estate to invest in a socially responsible way. In this article, we will explore what socially responsible investing in real estate means and how you can use it to make a positive impact on society.

Socially responsible investing (SRI) is an investment strategy that takes into account environmental, social, and governance (ESG) factors. These factors are used to evaluate the potential impact of an investment on society and the environment. By investing in companies or funds that adhere to SRI principles, investors can ensure that their money is supporting businesses and initiatives that are making a positive contribution to society.

When investing in real estate for SRI, investors should focus on projects that are designed to promote social change. This could include investments in affordable housing, renewable energy projects, and other initiatives that benefit the environment and local communities.

One way to invest in real estate for SRI is to invest in a real estate investment trust (REIT). REITs are companies that own and manage real estate investments, such as office buildings, shopping centers, and apartment complexes. Many REITs are certified as socially responsible by organizations such as the Global Real Estate Sustainability Benchmark (GRESB). By investing in a certified REIT, investors can rest assured that their money is supporting businesses and initiatives that are making a positive contribution to society.

Another option for socially responsible real estate investing is to invest in a real estate crowdfunding platform. Crowdfunding platforms allow investors to pool their money together to invest in real estate projects. Many of these platforms offer investments in projects that are designed to promote social change, such as affordable housing and renewable energy projects. By investing in these projects, investors can help to make a positive impact on society.

Finally, investors can also invest directly in real estate projects for SRI. This could involve buying a property and renovating it to make it more energy efficient, or investing in a project that is designed to benefit a local community. Investing directly in real estate projects can be a great way to make a direct impact on society, while also generating a return on your investment.

In summary, investing in real estate for SRI is a great way to make a positive impact on society, while also diversifying your portfolio and generating a return on your investment. By investing in certified REITs, real estate crowdfunding platforms, and direct real estate projects, investors can ensure that their money is supporting businesses and initiatives that are making a positive contribution to society.