As a real estate investor, you have a responsibility to consider certain economic, social, and environmental factors. Hence, keeping in mind ESG (Environmental, Social, and Governance) investing and its many benefits, all well-known real estate investors are now prioritizing green buildings and sustainability by adopting eco-friendly practices. For more clarity, let’s begin with why these steps are crucial for US real estate investors.
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Key reasons for adopting real estate sustainable and eco-friendly initiatives/practices
- The US Government is now making green building codes and regulations mandatory
- There is a huge market demand for eco-friendly properties, and following such practices can attract a broader range of buyers and tenants while providing a competitive edge in this industry
- Besides the benefit of better ROI, the resale value of green buildings is high
- Through water efficiency, energy efficiency, and sustainable features, real estate investors can effectively reduce their operational costs
- Such initiatives are known for mitigating resource scarcity and climate-related long-term risks
Now that you are familiar with the benefits of considering such eco-friendly practices in real estate, let’s take a look into some key practices that you must consider.
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Key green buildings and sustainability adopting eco-friendly practices to consider
- Certifications and Ratings
Consider a LEED certificate for your real estate project as it is the most-recognized green building certification system in the U.S. Real estate investors should also consider relevant ratings in their region (for example, ENERGY STAR) for increased green efforts and credibility.
- Sustainable Materials
Your real estate project should exclusively focus on incorporating smart technology and sustainable materials, such as certified or reclaimed wood products, low-VOC paints, recycled steel, etc.
- Renewable Energy
A sustainable and green practice that most popular real estate investors are considering is the use of renewable energy, such as wind turbines or solar panels for generating clean energy.
- Energy and Water Efficiency
Following energy-efficient design technologies and principles along with the installation of water-saving fixtures are some common green practices in real estate. Real estate investors should also consider buyer and tenant education to ensure proper and regular monitoring and benchmarking of energy and water usage in green buildings for achieving the required sustainability efforts, goals, or government regulations.
- Waste Management
As a real estate investor looking to adopt eco-friendly practices, it is a must to conduct proper construction waste management to ensure a lesser carbon footprint and an effective sustainability approach for your real estate project.
How to take the first step towards sustainability and eco-friendly practices in real estate?
From what you have learned so far, you can understand why and how real estate investors can adopt green building initiatives and sustainability practices. From the key sustainability practices mentioned above, you can also understand that taking such crucial steps requires funding. Thus, comes the importance of finding a qualified and licensed mortgage lender providing capital for different types of real estate investment projects, such as Fix-to-Flip, Fix-to-Rent, Rental, and Commercial projects.
When you work with an experienced and reputable real estate investment lender, you are bound to enjoy advantages, such as on-time delivery of complete in-house private capital, lowest investment loan rates, no tax returns, expert assistance from professional investment coaches, and more.
Hence, take the right steps today to find the most suitable and reliable real estate investment lender if you are considering adopting green buildings, and sustainable or eco-friendly practices for your next real estate project.
