Is your idea of investment focused on global banks, large franchises, and overseas real estate? If so, you may not be taking advantage of the wealth of opportunity in your own hometown. I'm passionate about investing back into my Canadian hometown of Prince Rupert, British Columbia, and you should be doing the same in yours.
It can seem like a risky business decision initially, but the more you know and the more you learn about how to do it effectively, it can be the best investment decision you ever made. Instead of looking to big business, or investing in large corporations, put your money where your community is. Here's how to do it and why you should.
One of the key issues people may bring up when it comes to local investments is that there's not enough to give good returns. And, if there are no other investors, can you even guarantee a return on your investment?
I find that the only way to attract other investors is to lead by example: begin to invest in your local communities and others will follow suit. You can find residents who are committed to the area to start small by educating and encouraging them to think about the independence that comes from investing in the future of their city.
The reason to invest in a local community should, first and foremost, be to serve the community. For example, for me, the focus is to educate and serve the community of Prince Rupert. Like many other places, it has been affected by recent global economic issues and the city's finances could be in better shape than they currently are.
For investors, there are many benefits to helping residents and businesses realize financial goals without sacrificing important things like community activity and family time. So, an important takeaway is to invest more than your money in the community; commit your time to it. Small towns are powered by local enterprise, and by supporting and reinvesting in these community-driven projects, you can ensure that you can reap the benefits of the economic growth that comes as a result of this. Residents get financial and job security, the town or city improves its economy, and the investors improve their returns-everyone wins.
Investing in your community means investing in the residents that make up its numbers. It means creating jobs and retaining residents who would otherwise feel the need to leave for greener pastures.
At TiLt Ventures, we buy property as an investment and a way to help create these jobs. However, if you're a newcomer investor, this may not be as easy to do on your own initially. This is where you can use the network of investors you build in a local community to your advantage. Keeping other investors interested in investing in the community can be a challenge, but even with just one or two to begin with, you can grow an extensive network.
With this network of investment companies-some that can mentor others-you can increase the skill set of the community and then encourage more investors to come into the area. This, in turn, will help encourage other businesses to enter the site as well, creating overall and sustained growth across the board in your community.
Through all my real-world experience, I've developed long-term growth strategies that point to local investments being the most beneficial in the long run. I'm betting big on the small port city of Prince Rupert and in the same way, you should do so in your local communities.
When it comes to real estate, think about where best to spend your money to improve the community's success. If you're thinking of investing in something, pick independent small businesses like retailers and restaurants. These can be more effective for the local economy, as well as for investors, than investing in large franchises or chains.
In fact, a study commissioned by the British Columbia division of the Canadian Union of Public Employees stated, "for every $1,000,000 in sales, independent retail stores generate $450,000 in local economic activity, compared to just $170,000 for chains. Among restaurants, the figures are $650,000 for independents and $300,000 for chains."
This means more local jobs and more economic growth-and if the local community is thriving, you can get back a more significant return on your investment and have contributed to the development of a place you care about.
An excellent place to start is to find investment opportunities that are of particular interest to you and to find a way to get residents to support and participate in the process. For me, this comes from increasing real estate investment opportunities for the residents of Prince Rupert, including blue-collar workers who are often overlooked in the economy in the employment world in the U.S., in Canada, and across the world of property investment.
At the end of the day, making community-driven investments the core of everything you do can be a boon for everyone. It can benefit you financially, stabilize the future of your city and, in turn, your community.
About David Sandhu and TiLt Ventures
TiLt Ventures is an investment company that focuses on real estate, stocks, and sports betting, and aims to educate others on how to navigate the world of high-ticket investments. CEO David Sandhu started the company with a goal to transform Prince Rupert, BC, and bring commerce back to the small port city. To learn more about the company, click here.