Lin Merage Discusses Sustainable Buy and Hold Real Estate
Lin Merage Discusses Sustainable Uses For Buy and Hold Properties
As a real estate investor, Lin Merage has come across many opportunities and methods to profit from various properties. Properties can show potential for redevelopment, renovation, and even simple remodels. However, one category of properties seems fairly difficult or limited in terms of available real estate investments. Urban vacant lots, are particularly challenging for real estate investors and Lin Merage also acknowledges that. These vacant lots maybe have been used in the past for storing junk or refuse, or perhaps were subdivided by the city during new construction and were never developed afterward. But for a real estate investor who is more future-oriented and wants to buy and hold the lot, there isn’t much demand for a vacant one. Lin Merage has explored productive ways to maximize the use and profit of buying and holding vacant lots in urban areas.
What are buy-and-hold real estate properties?
A buy-and-hold investor typically chooses a property to hold onto for an extended period of time and use it as a rental for cash flow. Over a long period of time, the value and profit of the buy-and-hold property increase. Buy-and-hold properties are another opportunity for real estate inventors just like fix and flip properties. Lin Merage has experience in both, buying and holding real estate and is a proven real estate investment strategy that helps build wealth and increase passive income. Most properties will rise in value over time, so the real estate investor who is holding the property is letting the asset appreciate as well. However, not all properties increase in value fast enough and some investors end up selling to avoid stagnation.
Why are vacant lots challenging for buy-and-hold projects?
While essentially a blank slate, real estate investors looking to profit or cash flow from a buy-and-hold lot. If there is nothing on the lot to rent out or increase its value over time, it’s not an ideal property to own. These types of properties are ideal for land developers who are going to scrape the lot and perform new construction. Therefore, real estate investors who are not positioned for this type of project will struggle.
Looking for sustainable solutions for real estate strategies
Lin Merage constantly seeks projects that better the community and support the area’s sustainability. An urban vacant lot does little for anyone as is but a new group in Denver has proved otherwise. Ullr’s Garden is a sustainable farming business that takes advantage of hydroponics in order to grow year-round right in the middle of Denver. In fact, Ullr’s Garden is growing crops in a shipping container, in an old used-car lot! Founded earlier this year, the operation has been successful in cultivating produce of leafy green vegetables. They are able to grow lettuce, romaine, arugula, and more regardless of the current seasons and climate.
The impressive fact about this business model is that the old used-car lot is undeveloped. Meaning there are no utility services or water taps. Meaning a profitable business is able to operate on more than a little dirt. This brings supportive precedence to real estate investors who have buy-and-hold aspirations for lots that are dilapidated or undeveloped. Not only that, this type of operation enriches the surrounding neighborhoods by creating local food sources and keeps lots occupied which will deter unwanted habitation.
Ullr’s Garden is a proven concept
Hydroponics is an innovative strategy for farming. Traditional farming requires a lot of seasonal scheduling and resources. Not to mention, farmable land is getting more difficult to acquire. Hydroponics is a sustainable method in which crops can be grown year-round regardless of seasons and is proven to take up considerably less space than traditional farming. While Ullr’s Garden is not the first of its kind, and certainly won’t be the last, the idea of placing shipping containers on empty lots proves there is an efficient and space-saving way to produce local products and also benefit the real estate industry which may have stagnant lots peppered throughout the urban areas, until it can be redeveloped for better use.