The conventional definition of faith-based investing has long been centered on exclusionary screening—avoiding tobacco, alcohol, and adult entertainment. But Steven Libman, founder of Investing with Purpose, calls this approach a "lazy" industry failure after 15 years in finance. He argues that true faith-based investing should be about building intentionally rather than merely filtering out undesirable sectors.
"Screening is the floor. Building intentionally would be the ceiling," Libman says. His multifamily real estate investment platform is structured around faith-driven principles, aiming to align capital with values at a deeper level. The core idea is straightforward: every dollar invested is a vote for something, and where capital goes signals what an investor believes.
Libman challenges investors to consider what their portfolios would reveal about their beliefs if inherited by grandchildren. He asks, "If you turned your portfolio over to your pastor, is there anything in there you might feel embarrassed about?" This reframing pushes investors to think beyond the conventional separation of returns and values, where one funds misaligned activities to generate returns for philanthropic giving later.
The cautionary tale comes from the ESG sector, which Libman says "put a dagger in the heart of values-aligned investing" by promising impact but delivering weak returns and questionable impact. A recent study tracking ESG fund performance showed total average returns well behind conventional benchmarks. Libman argues that values and returns are not incompatible; rather, funds using impact as a marketing hook rather than an operational framework tend to fail on both fronts.
Investing with Purpose's approach includes an on-site asset ministry program in multifamily properties. Free apartments are provided to on-site ministry staff who run tenant engagement activities like movie nights, farmers markets, and hospital visits. The business logic is compelling: tenants with multiple friends in the same complex are 45 percent less likely to move out, reducing turnover and vacancy costs. "Ministry is the moat around the investment," Libman says. "Caring is a durable business advantage, not a disadvantage." The faith dimension is service-first; residents are not required to participate in religious programming.
Transparency is a key differentiator. Investors receive standard financial KPIs plus a ministry impact report tracking resident connections, pastoral support, and on-site acts of care. They are also invited on-site quarterly for serve days. "Unlike your Wall Street investments, you can drive by it, touch it, feel it, actually see the impact," Libman notes.
For investors new to values-aligned investing, real estate offers an accessible entry point. The faith-based label signals an operational philosophy focused on community and long-term relationships. "Every dollar that you invest is a vote for something," Libman concludes. "So when you deploy your capital, it is either going to build something you are aligned with or something that might be in conflict with your own values."
