How and Why to Reduce the Carbon Footprint of Your Real Estate Investment Projects

It’s no secret that climate change is one of the greatest threats our planet is facing and without a collective, concerted effort to curb its effects, it could continue to careen off the tracks. The not-so-surprising news is that even seemingly small, incremental steps could make all the difference, and the ways we can get creative with our environmental contributions can also include the real estate industry’s efforts.

Minimizing our carbon footprint not only mitigates the effects of climate change, but it can also improve public health, boost the global economy, and maintain a strong biodiversity. For real estate investors, the effort can be launched with every project taken on, and if enough investors—and lenders—allow this to become the norm, the industry can be a leader in reducing our collective carbon footprint.

Here are a few ways you can incorporate environmentally friendly practices in your investments.

Sustainable residential real estate investments

If you’re primarily working with fix-and-flip properties, consider all the ways you can make each project eco-friendly, not just for the sake of ethics, but also to find financial success. Since kitchen updates are almost always a given in any property investment, opt for energy efficient appliances that will also save homeowners money in the long run. When redoing the flooring, look into repurposed hardwood or other eco-friendly options like cork or bamboo. Other upgrades like solar panels or alternative driveway options (consider installing grasscrete, for example, as opposed to asphalt) will only create greater value for the home once it’s back on the market, appealing to individuals who are keen on living a greener lifestyle—and leading to more money in your pockets when you sell.

Understanding Greenhouse Gas (GHG) Emissions

If you’ve invested in a fix-and-hold property that you plan to rent out, consider quantifying your property’s emissions, also known as benchmarking. One way to do so is by collecting utility usage information on an annual basis to get a sense of whether GHG emissions are consistent with the property type. If they’re anomalous, then you can address the issue and begin taking strides towards owning an eco-friendly property for tenants to live in.

Creating effective partnerships

It’s easier to go the distance and develop both a successful and eco-friendly portfolio when you surround yourself with industry professionals who are on the same mission. Finding lenders who are dedicated to reducing their carbon footprint, who are eager to be given the opportunity to fund eco-friendly projects, is a great way to see your goal come to fruition, property after property after property. By prioritizing ethical and financial goals and aligning them with others who are on the same path, supporting the same work, the real estate industry can do effective work to reduce their own carbon footprint in a significant way.

For Temple View Capital, LLC (“Temple View”), carbon neutrality is a clear priority in 2022 and beyond. We are proud to become industry leaders and promote the benefits of carbon neutrality to our borrowers, partners, staff, and industry peers. To learn more about the importance of eco-friendly real estate investments, or to discuss lending opportunities for your next eco-friendly investment, contact us today.

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