Investors and the cities they invest in can share a strange, dichotomous relationship. Cities need commercial investment to improve and sustain their economy, while investors need a lucrative portfolio. But cities also need to maintain their identity and concern themselves with their citizens, while investors need to find a way around bureaucratic red tape or else walk away. Far too often, investors and cities end up standing at odds when they need to find ways to build a relationship. At LCI Realty, we’re experts at getting the deals made and helping people to make the connections that they need for a lucrative outcome. Here are our strategies for investors to build a relationship with their cities.
Collaborate With Local And State Governments
Taxation, regulations and red tape are some of the biggest barriers to investments in any city, so it’s vital for investors to build a relationship with people in the local and state governments as quickly as possible. If you forge these partnerships early, cities are more likely to see the economic benefit of your investments. They might even offer you inventives or opportunities that you might not get if you try to operate without creating those connections. Furthermore, most cities have identified development zones, or what are sometimes called opportunity zones, where initial investment coupled with municipal incentives can encourage more investment. This leads to more economic stability and it all starts when investors build a relationship first.
Forge Connections In The Community
City and state governments are only representatives of the public opinion and voice, so investors also need to build a relationship with the community they plan to invest in. While opportunity zones are areas that could benefit from investment and development, some of them are areas that are traditionally low-income areas. Investors and developers that do not build a relationship run the risk of gentrification, pushing out residents of a portion of a city that have been there for years. Overzealous developers can also tarnish a municipal identity when they choose not to build a relationship, which can actually deter commerce and tourism. Instead, a good investor should try to develop a connection and maintain a spirit or identity while they make improvements.
Focus On Philanthropy
Philanthropy should be a tenant for any business or investor. As leaders in business and industry, setting a precedent for the voluntary aid of our fellow man helps to build a relationship with a city, helps to strengthen relationships that currently exist and attracts like minded innovators to the cause. Nothing shatters an image of egotism like an investor that is actually investing their time and resources in a cause that people care about. Just make sure to form those relationships authentically or people will be able to tell the motivation is hollow. Find a philanthropic outlet that incorporates your mission or even your interests. Make sure that taking time for that outlet is part of your investment timeline.
Improve The Social Order
It’s not a complex journey to become a beloved investor. To build a relationship as an investor, you simply need to improve the social order. There are going to be barriers to that, as people have opinions and bias and they don’t like change. Investors are an agent of change, but it can be change that impacts in a positive way. Authenticity and emotional intelligence are some of the most important tools of the savvy investor looking to build a relationship with their city. These are qualities that you should look for in your real estate team. A team like LCI Realty could mean the difference between a lucrative and a rocky relationship moving forward. Ready to start your investment journey the right way? Contact LCI Realty today at 480-565-8981.