The Economic Effect Of Impact Investing In Minnesota

Back in 2014, a large family foundation in Minneapolis, McKnight Foundation, realized how contradicting it was to endow millions of dollars to nonprofit organizations advocating climate change while earning revenues from coal mines and companies that emit carbon gas.


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The Minnesota-based organization since then has taken off coal from its portfolios and changed its investment strategy. It has reinvested hundreds of millions into a diversity of assets that reduce carbon emissions and foster sustainable growth, in addition to the previous causes they have already supported, such as literacy and neuroscience research.

In the other half of the Twin Cities, St. Paul, the Northwest Area Foundation had also pledged a tenth of its $400 million endowment into investments that aims to reduce poverty through job creation in low-income and rural areas.

These two foundations are distinguished as leaders in impact investment.

Impact investments are made with the intention of not just achieving monetary returns, but also creating a positive impact on society and environment. While it is only recently gaining steam, the concept dates back to as early as 17th century when Quakers refused to invest in slave trade and pacifists did not invest in war.

In 2015, a survey of 158 impact investor showed that global impact investments had reached $15.2 billion.

Currently, several foundations in Minnesota have entered the impact investment scene, with most investments focusing on job creation or low-interest loans for affordable housing. However, in early August, a meeting in Minneapolis by a group of investment professionals discussed the substantial and unprecedented effect of impact investment on the market.

Under the leadership of Steve Liefschultz, Equity Bank offers customized service in giving access to investment lines of credit and real estate loans. Read more on investment and business conditions in Minnesota by following this Facebook page.


Every Homebuyer Should Know These Hidden Costs Of Ownership

There are hidden costs of home ownership. Those who are applying for any form of real estate loan should understand these before submitting their application. Listed below is a summary of factors that should be taken into consideration.

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Property taxes: Technically speaking, all homes and mortgages display their true cost. However, taxes are not usually included in these purchases. Potential homeowners create budgets that only allocate a certain portion of rent or ownership. They are often shocked when asked to pay for property tax. Homeowners are advised to find out their tax in advance. This can be easily found through a real estate property listing. Once the amount is discovered, it can be divided by 12 and added to one’s monthly budget.

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Insurance: Home insurance is a wise decision. Most states require homeowners to lease out insurance to protect them. However, this also means an additional cost. There are several factors also to note. Older homes typically have a higher premium because of older electrical and heating technologies that are considered to be more hazardous than newer homes. Homes that are also within a disaster-risk zone (for example, those in an earthquake, volcano, or flood zone) usually have to pay extra.

Appearance and maintenance: It is natural for homeowners to want to keep their homes in pristine condition. Nevertheless, an added patio or new flooring costs money. These may initially seem like small expenses, but these do add up. Homeowners should allocate a certain budget for decorations and maintenance in order to keep themselves from overspending.

These simple considerations can potentially save homeowners a lot of stress and hassle once they purchase their new home. It is also a good idea to speak with one’s financial and credit expert for more information.

Steve Liefschultz of Equity Bank helps people with their many real estate loan concerns. The bank has several branches now, and is particularly proud of their Minneapolis branch. To learn more, view this LinkedIn profile.