Renewable Energy

PODCAST

Are Renewable Energy ETFs a Good Investment? In Episode 188 of the Money for the Rest of Us podcast. David Stein provides his usual thoughtful and fact-based answer to this question. In David’s view, alternative energy funds are wanting in terms of financial performance. But his podcast is a few years old and many things have changed. Taking David’s sage advice into account, it is up to you to decide if this is an area of interest to you.

CHAPTER REFERENCES

List of Alternative Energy ETFs. The ETF Database includes a comprehensive list of alternative energy ETFs for those who want to investigate this opportunity and compare and contrast various options. First Bridge is another source for cross-referencing more information.

HIP Sustainable Real Estate ESG Strategy. This HIP investment holds a portfolio of 40 to 50 real estate and REIT stocks, so it provides a broad exposure to the real estate asset class. It’s possible to invest in this product on the HIPinvestor website with a minimum of $30,000. You can also invest for as little as $100 on the Newday Impact Investing platform. Or contact your financial advisor.

Greenbacker Renewable Energy Company. Accredited investors can consider Greenbacker, (introduced in Chapter 10 of Activate Your Money). The company invests and operates businesses in the clean energy sector. Minimums tend to be in the $25,000 range with one-year lock-ups and expected returns in the range of 6.5%. Access this investment through a financial advisor.

Wunder Capital. Wunder Capital provides loans to finance commercial solar products. The most recent funds projected returns of 6.0% to 7.5% with tie-ups between 5 to 10 years. Though minimums have been as low as $1,000, investors need to be accredited.

Real Estate

COMMUNITY NOTES

Calvert Community Investment Note. About 20% of the loans provided are directed to affordable housing. The minimum to invest is $20. Returns vary from 0.5% to 3.5%, depending on the term of the note.

Hope Impact Fund. This note provides no-interest mortgages to low-income families. The minimum is $100. Returns currently vary from 2.0% for a one-year term investment to 4.0% for a 10-year term investment.

Enterprise Community Impact Note. This product focuses on affordable housing and community development. There is a $25,000 minimum, and returns range from 0.50% to 3.0% for terms of one to 10 years.

REAL ESTATE CROWDFUNDING

Is Real Estate Crowdfunding Worth It? This Nerdwallet suggests that, though investing in real estate could be a great addition to your portfolio, it is essential to read the fine print.

Small Change. Small Change is the only real estate crowdfunding platform we are aware of that focuses exclusively on projects that will have positive transformational impacts in their communities. Eve Picker, the woman behind this site, selects the opportunities carefully in an effort to ensure that the investments deliver positive returns both socially and financially. Each deal is different: Liquidity tie-ups might range from a few months to 10 years and annualized returns might range from 7.5% to 20%.

REAL ESTATE INVESTMENT TRUSTS (REITS)

REITs are companies that own or finance income-producing real-estate, and many trade on major stock exchanges. They can be a way for investors to participate in the real estate market without owning and managing real property themselves.

An Introduction to REITs. Investopedia provides a broad introduction to REITs, providing more detail than we could in Activate Your Money.

Nareit. Nareit is an industry association for REITs. The website contains a wealth of information about REITs: what they are, how they work, and how to invest. Check out the section on sustainability. Though this is a great resource for learning more, keep in mind that their goal is to promote this form of investment.

Socially responsible REITs. Both U.S News and Millionacres have published articles on socially responsible REITs.

AFFORDABLE HOUSING

Affordable Housing Overview. This nine-minute Business Insider interview gives a great overview of affordable housing and its importantance.

Affordable Housing Investment Opportunities. This Millionacres article describes the challenges that have led to the affordable housing crisis in many communities and outlines investment opportunities that help provide solutions.

Workforce Housing. This Wikipedia article explains workforce housing, which helps makes local homes affordable to workers who are often priced out of the market, such as teachers, police officers, and firemen.

Navigating the Field of Inclusive Housing Innovation. This Medium article describes how Dan Wu evaluated over 200 innovative housing start-ups in 2019. He looked at factors from construction to property management and issues from affordability to access. Dan’s analysis includes start-up businesses, venture funds, and market trends.

COMMUNITY DEVELOPMENT & OWNERSHIP

Plaza 122, Portland. Highlighted in Chapter 10 of Activate Your Money, this link provides more detail about the model used by the Community Investment Trust of Portland, OR.

Guerilla Development. Also Portland based, Guerilla Development designs and executes residential and commercial buildings and cityscapes with a goal of creating more diverse, equitable, and affordable housing and business options.

GREEN BUILDINGS

Principles for Green Buildings. Based on the Principle for Responsible Investing, the United Nations has developed an Impact Investing Market Map that includes a description of what they believe is – and what is not – a green building. Though there is no consensus on this issue, this site offers a thoughtful perspective.

Green Canopy. Green Canopy is a green building company based in Seattle, WA. They are pushing the envelope on what is possible in terms of green construction as well as the role that accredited investors can play in supporting the growth of this type of real estate. 

TINY HOUSES AND ACCESSORY DWELLING UNITS

Books

The New Small House by Katie Hutchinson. This book shows who those looking to either downsize or build additional housing capacity on their land can do so in a smart, economic, and environmentally friend way. Filled with pictures that will inspire you and spark your imagination

Additional Resources

Tiny-house movement. This Wikipedia page offers a fascinating look at the history and current status of the small house movement.

20 Tiny Home Manufacturers to Match Any Budget. If this concept piques your interest, this list of builders can help get you started.

21 Tiny Prefab Houses. If you would rather go the prefab route, you can find twenty-one different options on this site that you can buy right now.

The Tiny House.net. As a final resource, you might want to check out this site by Ethan Waldman, as well as his accompanying podcast. In it, he shares what he has learned about what works and what doesn’t.

Sustainable Agriculture

BOOKS

Inquiries into the Nature of Slow Money by Woody Tasch. One of the leaders behind the Slow Money movement, Woody Tasch has written about why investing in food, farms, and sustainability matter. Although more than a decade old, Inquiries provides an interesting perspective on these issues.

Financing Our Foodshed: Growing Local Food With Slow Money by Carol Peppe Hewitt. This book is a personal account of how the author helped spearhead a Slow Money group in North Carolina. It includes a collection of real life stories, pictures of the Slow Money pioneers, and some of the local food and agriculture entrepreneurs they have supported.

CHAPTER REFERENCES

The following list provides links to some of the investment opportunities referenced in Chapter 10.

Maine Harvest Federal Credit Union. A credit union bringing financing to local farms and food producers in Maine.

Gladstone Land. A farmland real estate company focused on high-quality and sustainable farming.

Iroquois Valley Farms. An organic farmland REIT.

Steward Farm Trust. Billed as a “crowdfarming” platform to allow people to invest directly in sustainable agriculture and the future of farming.

Salmon Innovation Fund. An early-stage venture fund working to protect and rebuild wild Pacific salmon and steelhead populations.

Slow Money Institute. This site provides an introduction to the Slow Money movement and lists Slow Money groups that have emerged around the country, including the Slow Money clubs mentioned in Activate Your Money.

ADDITIONAL RESOURCES

How to Invest in Farmland. Millionacres offers an illuminating article on how to invest in farmland. While this offers strong general guidance, its focus is not on organic, sustainable, or renewable agriculture. The page talks about REITs as well as crowdfunding and private investment opportunities.

How to Invest in Farmland Through the Public Equities Market. All of the investment options described in this Investopedia piece are in the public equities market. However, their analysis stretches beyond REITs to include agriculture companies, commodities, and supporting businesses. Once again, it is up to you to determine if a particular recommendation adheres to your values.

Global Alliance for the Future of Food. A strategic alliance of philanthropic foundations working to transform the future of food according to seven core principles. The site offers a list of organizations involved in these efforts.

Dirt Capital Partners. Dirt Capital Partners invests in farmland in partnership with farmers in the Northeastern United States. Their site includes a comprehensive list of organizations involved in farmer land access, organic farming, farmland conservation, and other sustainable agriculture investing and support opportunities.

Sustainable Forestry

CHAPTER REFERENCES

Ecotrust Forest Management (EFM). EFM purchases and manages forestland that has unique environmental and social attributes. They state a goal of enhancing forest health and productivity, sustainably harvesting timber and other forest products, and providing a positive return to their investors. To learn more, watch this conversation between Bettina von Hagen, CEO & Managing Director of EFM and Erika Karp, Founder & CEO of Cornerstone Capital, a values-aligned financial advisory firm.

Forestland Group. The Forestland Group manages forest resources across 21 states in the US and 4 countries. The firm strives to encourage natural forest regeneration and maintain soil productivity and species diversity.

Lyme Timber. The Lyme Timber Company has been investing in sustainable timber and rural real estate since 1976. Since the early 2000s, the firm has raised five funds totaling close to $1 billion in assets. Their current portfolio includes about 1.5 million acres in the Northeast, Appalachia, and Califorinia as well as in the lake and southern states.

ADDITIONAL RESOURCES

Investing in Timberland REITS. This Investopedia page explains in more detail what timberland investing is, how it works, and some of the risks. It also provides links to a few publicly-available investment opportunities.