Wholesaling Green Homes: 3 Opportunities, 1 Warning…
Sustainable, greener homes are increasingly becoming more in demand. So what options are there for wholesaling these properties, and what are the pitfalls for real estate investors?
The eco-friendly trend has been trying to find its wings for a while. Related terms have certainly been trending in online searches and new technology and features have been rolled out non-stop over the last couple of years. However, until now it really hasn’t proven to be a great profit center for property investors, especially those wholesaling houses.
This is changing rapidly though, partially thanks to green elements becoming more affordable, greater awareness of the need for it, and just as significantly the need for home buyers and all investors to be more ethical and socially conscious, or take a beating to their reputations and career or business growth.
We’ve covered a number of emerging real estate trends on the Best Transaction Funding blog recently, but how do they converge with this, and what unique niches offer interesting opportunities for wholesalers?
Affordable New Homes
It’s common knowledge that many investors and huge private equity firms have recently turned their focus to new construction and newer communities. Many hot home builders like LGI Homes which focuses on no money down, affordable homes have been incorporating a lot of new energy efficient and green features too.
While this might appear to be a tough niche for wholesalers there are always discounts for bulk buyers from home builders, as well as opportunities to bank on new phases lifting prices and in fill lots, or builder close-outs.
Pre-Fabricated Homes
No, not mobile homes, but pre-fabricated, manufactured houses and condos which are mostly constructed off-site and then assembled and permanently fixed on the desired location can often see great spikes in values in short periods of time and could offer great profit margins.
100% Sustainable Housing
Combining affordable living, pre-fab and new construction trends all into one ultra eco-friendly residence a new breed of 100% sustainable hybrid homes has been launched by Florida firm Mesocore. This is certainly a trend to watch, with lots of potential.
A Word of Warning
With the current frenzied rush to develop land and recycle abandoned buildings real estate investors and wholesalers not only need to be careful what they buy, but what they sell too. In a recent case in Detroit and old industrial property converted into condos contained major environmental issues. Naturally the builder went broke and vanished leaving Realtors and resellers on the hook for the damage to the tune of hundreds of thousands of dollars.
