Let’s be realistic, the zombie apocalypse isn’t coming. But, if you’re trying to cash in on the latest trend toward off-the-grid housing, you’ll still have to look outside the banks to get your Arizona Land Loan.
While it was once the “in thing” over fears of Y2K, governmental strife, and hoards of zombies, there’s no longer stigma attached to living off the grid. People are coming to realize that doing so lets you have a greener life with a reduced or neutral carbon footprint, build self-reliance and resilience, and can often provide people with an unmatched sense of freedom. There are logical and mainstream reasons for opting to go off the grid, and as such, demand for housing options has skyrocketed.
Research presented in Forbes shows that half of all new electricity connections will be off the grid by 2030. It’s a big arena for investors too, with more than $352 million being poured into off-grid solar in the last year alone—a 20% increase year-on-year. Yet, availability of off-grid homes remains a problem. People who want to live the lifestyle find few move-in ready options, leaving prefab homes as the only viable option for those who don’t have the engineering backgrounds to design their own.
As it stands now, energy efficiency is the big thing with homebuyers. A national study performed just a few years back confirmed it’s the number-one concern for homebuyers. No doubt, the desire for better off-grid options has only increased in recent years due to the prevalence of national disasters, such as fires and hurricanes that have ravaged the country and left people without the essentials of life. Data shows Millennials are leading the change, but as Gen Z begins purchasing their first homes, the shift toward eco-conscious practices will be even more pronounced. Those who get their Arizona Land Loans now and start building will be ahead of the curve and well-poised to cash in on the trend.
While it may seem obvious, living off the grid means you’re not tapping into outside sources. That means no external power, water, sewer, or gas. It’s a real problem for banks because that means the property is “unimproved.” They’re not really geared toward Arizona Land Loans to begin with because raw land doesn’t suit their target consumer, but when the added complexity of no connections is added in, the deal’s just too risky. They don’t anticipate being able to resell the property if things go bad—not without costly improvements—and making those improvements is simply not the business they’re in.
Big banks have a certain structure or way things are done that they don’t deviate from. They insist on conformity and there’s lots of red tape when things don’t fit into their tidy little box. However, hard money lenders don’t operate the same. Most of the time, these are everyday individuals who simply want to make a solid investment. The decision whether to extend Arizona Land Loans is entirely a personal decision, and yes, many believe in the importance of going green or are, at the very least, willing to explore it as a viable investment vehicle. How do you find one of these folks? Connect with a broker who specializes in hard money and knows lots of lenders and can match you with the right one for your project.
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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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.