by Sara Murphy 

Can real estate investors “do well” while “doing good”?  Can local communities in Nicaragua benefit from the massive growth in real estate investing in the country?  Is there a sweet spot where charitable initiatives increase investment return and social welfare at the same time?These thorny questions get at the heart of what responsible property investing is all about. Investing that creates value in society and the environment while at the same time being financially profitable. This is the sort of “win–win” situation that everyone likes to be part of.
Community REfund, an initiative launched in 2007, is offering the simple solution to achieving just that. The REfund model encourages every participant in a real estate transaction to contribute funds at the time of closing. There are at least five participants in a standard transaction: the buyer, the seller, the real estate agent, the title insurance company, and the legal firm. Add a bit of peer pressure and you have all the ingredients for a powerful funding mechanism.
“As a foreigner who both benefits and contributes to the rapid real estate development of Nicaragua, I believe it is my responsibility to support programs which serve to provide opportunities for mutual advancement among local communities.” Brooke Rundle, Coldwell Banker Nicaragua Real Estate.
“We are proud to offer our services pro-bono to Community REfund, an initiative vital to the long term sustainability of Nicaragua’s real estate and tourism sector.”  Terencio Garcia, Managing Partner, Garcia & Bodan.
To ensure that contributions make a real difference on the ground, Community REfund has two main programs - the Savings Start program supporting small business owners and micro-enterprise development and Community Bridge targeting community led projects in key real estate investing areas.
At the heart of these programs is an asset based approach to alleviating poverty and encouraging community development. Assets such as an education, a property, or a successful business increase self-sufficiency on an individual and family level, while adding to the economic stability of the community in general. This thinking links logically back to the REfund funding driver – a real estate transaction – fundamentally, an asset building activity in itself.
“The Association of Nicaraguan Investors and Developers has chosen Community REfund to be its core charitable program. We encourage our members to support the program to ensure that local communities benefit from real estate development activity.” Tuey Murdock, Board Member, Association of Nicaraguan Investors and Developers (ANID) and First American Title Services, Nicaragua.
Community REfund joins well established social responsibility programs active in Nicaragua such as the Fundación A. Jean Brugger, part of Pelican Eyes…Piedras y Olas, a luxury resort in San Juan del Sur and the Nica Dev fund run by Donn Wilson, real estate developer and social entrepreneur.
“If we can get responsible property investing right in Nicaragua, at this stage in the property development cycle, we’ll be creating a foundation for long-term value not only for real estate investments but for local communities and society at large.” Chris Berry, Pelican Eyes…Piedras y Olas and Fundación A. Jean Brugger.

Smart and right
Jon Thompson, Program Director at Community REfund (and director of Communidad Connect which oversees the mechanics of both Savings Start and Community Bridge) has an excitement about the initiative that is contagious. In the Monthly REfund newsletter, he reports that Community REfund has already begun to make a difference in San Juan del Sur. A community well has been constructed in Bernardino and water filters have been installed throughout the rural countryside. The Savings Start program is now opening up registration to its first 15 local micro entrepreneurs.
“Community REfund is a great initiative which gives investors, realtors and developers the opportunity to make a difference in the local community. I think it is important that the people living and investing in Nicaragua give back. I try and stress this to my clients.” Zach Lunin, Aurora Beachfront Realty.
With support from across the Nicaraguan real estate investment community, from brokers, to developers to investors, Community REfund is poised to make a big difference to the lives of local communities in Nicaragua. There is much more information on the initiative at www.communityrefund.org  Have a browse through the site, link to it, spread the word, get involved, and help make real estate investing in Nicaragua an engine for community development and social and financial stability. 

Sara Murphy is a Community REfund Board Member and co-owner of Coldwell Banker Nicaragua Real Estate.