How to Invest in Commercial Real Estate Through Community Investment Trusts: A Step Toward Building Local Wealth
- Langston Rivers
- Apr 17, 2025
- 6 min read
In today’s world, the idea of owning property is often reserved for those with deep pockets or significant access to capital. Unfortunately, this can feel empowering but often inaccessible for many, especially those in low-income neighborhoods where they may feel powerless when looking at vacant buildings and larger commercial properties. However, what if there was another way? What if you could invest in commercial real estate and help revitalize your neighborhood, all while growing wealth for you and your community?
That’s where Community Investment Trusts (CITs) come into play, and it’s changing the game for everyday residents looking to invest in their futures. At Capital Region Community Investment Trust (CRCIT), we believe in the power of local ownership and the ability of community members to make meaningful decisions about the development of their neighborhoods.
The CIT model is not just about making money—it’s about creating a thriving, economically sustainable community where local people call the shots. By empowering residents to invest in commercial real estate, transform their communities, and build wealth over time, we’re helping to break the cycle of feeling powerless and instead lifting people up while fostering a stronger sense of community.
Let’s dive into how CRCIT and other similar initiatives are empowering residents to invest in commercial real estate, transform their communities, and build wealth over time.
What Are Community Investment Trusts (CITs)?
At their core, Community Investment Trusts (CITs) are designed to empower residents of economically distressed areas to invest in real estate and ultimately own a piece of the community they live in. Unlike traditional real estate investment, where large corporations or individual investors control the decisions, a CIT gives ordinary people a voice in determining the future of their neighborhood.
The beauty of the CIT model is that it democratizes the investment process. With as little as $10 to $100 per month, local residents can collectively pool their resources and make decisions about how the real estate is developed or redeveloped. The model ensures that the investment benefits those who live there, not just outsiders looking to profit from their hard work.
By banding together, residents are able to afford much larger properties, bringing economic activity and services to an area that might otherwise go overlooked.
How the Investment Model Works: A Simple Way to Build Wealth
So, how exactly does a Community Investment Trust work? Well, think of it as a collective savings account for real estate, but with some additional perks thrown in.
Affordable Investment Shares: Residents who live in a designated area have the opportunity to buy shares in a community project. With contributions as low as $10 to $100 per month, these small investments add up over time and give residents a stake in the property.
Ownership and Dividends: Investors receive dividends each year, starting at a minimum of 2%. This might not sound like much at first, but remember, as the property appreciates in value and becomes more profitable, these dividends grow. Eventually, residents earn ownership in the building itself, solidifying their stake in the community.
Loss-Protected Investment: One of the key features of the CIT model is that the investment is loss-protected. If the community project faces difficulties or if you need to pull out, you can do so at any time without fear of losing your initial investment. This makes the model far less risky compared to traditional real estate investments.
Reinvesting in the Community: The beauty of a CIT is that it’s not just about generating wealth for individuals. The model focuses on creating a sustainable ecosystem within the community, where businesses can thrive and residents can access the services they need. For example, a community might decide they need a local grocery store, a fitness studio, or a daycare. By pooling their resources, they can attract these essential businesses to their area.
The Owing to Owning Curriculum: A Pathway to Becoming an Investor
At CRCIT, we’ve created the Owing to Owning curriculum to help community members learn the ins and outs of personal wealth management and the basics of investment. Our program is designed to demystify the world of investing and equip residents with the knowledge they need to make smart financial decisions.
As part of the curriculum, participants learn how to create long term financial goals, build credit and habits that lead to that goal, and learn how to use investment to make money work for them. Our goal is to empower individuals not just to become investors, but to become educated, savvy investors who can confidently navigate the real estate landscape.
We’ve seen firsthand how this education transforms lives. Once community members understand how to invest, many go on to make other investments—whether in businesses, their own homes, or even their children’s education. This financial literacy is the key to creating generational wealth.
Investing for What the Community Needs: Building a Better Future Together
One of the most unique aspects of a CIT is that it allows residents to come together and decide what their community really needs. Are you tired of driving miles for a simple grocery store? What about a fitness center or a place where you can send your kids for after-school activities? Community investors have the power to identify and attract these services to their neighborhood.
Imagine the difference it could make if a group of local investors decided that their community needed more than just a new building—they needed a space where the services that truly mattered could thrive. Whether it’s a local daycare, a co-working space for freelancers, or a creative studio for entrepreneurs, the CIT model ensures that the community gets to decide what’s best for them, instead of leaving it to outside developers who may have different priorities.
The Pommer Project: A Real-World Example of Community Transformation
One of the most exciting current projects in the CRCIT portfolio is The Pommer, a commercial real estate building that’s being renovated with the input of the local community. This project is a perfect example of how the CIT model works in real life.
The Pommer will serve as both the headquarters for CRCIT and a retail space for small businesses looking to get a foothold in a revitalized neighborhood. The renovation process is being guided by the input and vision of community investors, making it a space that truly serves their needs. Whether it’s new restaurants, shops, or community programs, The Pommer is shaping up to be a place that reflects the desires and aspirations of those who call the neighborhood home.
The Benefits of Community Investment Trusts
So, why should business executives and local residents consider investing in a CIT? There are several compelling reasons:
For Individuals: CITs offer an opportunity to build wealth without the high barriers typically associated with real estate investment. The monthly investment is manageable, and there’s a clear path to ownership.
For Communities: CITs foster local economic development by giving residents the power to influence what happens in their neighborhoods. This strengthens the community and ensures that growth benefits those who live there.
For Future Generations: The beauty of CITs is that they allow people to build wealth over time and pass it down to future generations. Investing in real estate through a CIT provides an avenue for families to grow financial security.
How You Can Get Involved
If you’re a business executive or community member interested in learning more about how you can invest in local real estate through a community trust, the first step is simple: get educated. Join our Owing to Owning curriculum to learn the ropes of personal finance and investment and become a part of a movement that’s shaping the future of local communities.
CRCIT is always looking for new investors to join our projects and help us create spaces that meet the needs of the community. By investing between $10 and $100 per month, you can start building wealth while helping to revitalize your own neighborhood.
A New Way to Build Wealth and Community
Community Investment Trusts are more than just a new way to invest in real estate. They’re a movement that empowers everyday residents to take control of their neighborhoods and build wealth together. With CRCIT’s approach, you don’t just invest in property—you invest in your community’s future.
Whether you’re looking to grow your own wealth or you want to be part of something bigger, now is the time to get involved. Together, we can create thriving communities where everyone has a stake in the success.
Ready to get started? Enroll in our Owing to Owning curriculum today and start your journey as a community investor!