Demand is overriding supply in the asset known as “green buildings.” This movement is catching the attention of Texas commercial lenders.
When people hear the word “sustainable” they often think of restaurants and the farm-to-table craze. This word is also circulating among real estate investors, developers and contractors and many are beginning to think green before beginning construction or renovation. Leadership in Energy and Environmental Design (LEED) is “the most widely used green building rating system in the world.” They have certified over 90,000 projects and presently account for the creation of 2.2 million sq. ft. of certified green buildings every day. That is the power and current craze of this health and environment-conscious movement that is drawing the attention of Texas commercial lenders.
Buildings make a huge difference in people’s lives and many are raising their voices as they request sustainable and healthy buildings in which to live, work and play. This has led to an increasing demand for green buildings. Some of the concerns that have mounted include the quality of air in buildings where the material is not evaluated for outgasing. Sustainability also relates to increasing efficiency in the use of water, energy and waste. This approach may include lighting upgrades and the use of solar rooftop installations
The bottom line: green buildings attract more tenants. If you have a choice between a building that has made the effort to maximize natural daylight, increase indoor air quality and use natural materials in the construction that do not emit high levels of volatile emissions, which would you choose?
Austin, Texas is home to one of the oldest green-building programs in America. Even so, finding contractors who are green-savvy can be a challenge. Contractors and developers can step in to fill this lucrative position by educating themselves and taking courses in just what building green entails. Businesses, corporations and individuals are increasing the demand for better indoor air quality as well as sustainable energy practices. In many instances, these same institutions and families are willing to pay a higher price for a building that has been built according to green codes—green office space typically leases for 20 percent higher. A survey conducted in Los Angeles revealed that tenants were willing to pay an estimated fifty cents more per square foot in order to obtain a green certified space. LEED certified buildings also sold for over $20 more per square foot. In addition to increasing rental and sale prices, going green also decreased the operating costs for both new construction and renovations.
Due to increasing demand and rental rates, this type of construction is often valued among Texas commercial lenders. Demand is always a good determination when obtaining a loan on a project.
At Level 4 Funding, we work with hundreds of private hard money lenders, many of which specialize in green buildings and projects. As hard money lenders, their loans are based on the collateral or “hard asset” that is going to be used as collateral. They are not bound by the same stringent FDIC and government mandated lending codes, making time to funding and requirements such as credit scores and credit worthiness much quicker and more lenient. Contact us for a no-obligation quote and to determine if we have the right private hard money Texas commercial lender in our rolodex who will provide the funding you need for your next commercial real estate project.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.