The Double-Edged Sword of Real Estate Investment

When I talk to people these days about investing in the future, I often get shrugged off—especially by a new generation of investors who have recently become financially literate. Many insist that they will only invest in real estate because they view it as owning tangible property rather than putting money into what they see as a shiny, intangible tech company. This perspective is particularly common among those who approach investing through a social justice lens, aiming to close the wealth gap across genders and races.

By many standards, I agree with this mindset. However, the reality is more complicated. Real estate can be a risky investment, particularly for those who lack the knowledge or resources to manage it effectively—especially when scaling such investments. It’s a high-stakes game, something I learned firsthand while studying real estate history and working as a real estate agent and broker. The consequences of poor decision-making, bad judgment, bad timing, and greed are evident in past housing crises—and, inevitably, in future ones, as financial instruments continue to grow more complex.

Additionally, while I can’t speak for every municipality, I’ve examined several closely and found that many so-called “properties” being purchased are actually financial instruments rather than true real estate. Many buyers assume they are purchasing land when, in reality, they are only acquiring the housing structure that sits on it—whether a house, building, co-op, or condo. If you don’t own the land itself, from my perspective, you don’t own much. You own the structure and possibly its associated lot, but not the actual land beneath it.

So yes, I agree that real estate is one of the safest and most reliable investment vehicles for building wealth. But it’s also one of the greatest tools of injustice in human history. Entire communities have been erased for the very land we now seek to own for our personal and generational wealth. Think about that.

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