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The real estate market is awash with traditional investment options like residential homes, commercial spaces, and apartments. These tried-and-true opportunities can be a sound choice, but they are often also very competitive. Luckily, there are plenty of unique real estate investment opportunities that can help you stay afloat in a saturated market. 

Tree House Rentals 

Tree houses are no longer just for kids. With the rise of eco-tourism and the tiny house movement, investing in a luxury tree house can be a lucrative venture. These unique properties can serve as exclusive retreats, offering an immersive nature experience with all the comforts of high-end accommodation. Even simpler versions can stand to turn a profit with the right marketing and pricing options. 

Haunted Houses

Homes with a tragic or frightening history are often more difficult to sell. For this reason, you may be able to purchase a “haunted” house for much less than a comparable one without alleged spectral inhabitants. Once you’ve secured your haunted property for a great deal, you can then offer tours of the property for tourists, ghost hunters, etc. Or, you can rent rooms or event space for those looking for a spooky venue. While you can market these venues year-round, you will also have the opportunity to increase prices according to seasonal demand (aka at Halloween). 

Stables for Rent

Investing in stables or equestrian properties can be a smart move, especially in areas with a strong horse-riding community. These properties can offer diverse income streams, from boarding and training horses to hosting events and competitions. You can also offer grooming and showing services, if you have the right resources and know-how. 

If your stables are on a particularly picturesque piece of land, you can offer your property as a venue for weddings and other gatherings.

Historic Property Conversion

Converting historic properties into modern spaces combines the allure of the past with the amenities of today. Whether it’s turning an old rail car into a restaurant or converting a barn into a high-end bed and breakfast, these projects can attract tenants and visitors looking for something beyond the ordinary. The key is to preserve the character and history of the property while providing contemporary comfort and style.

Selling Air Rights

In addition to the land on which a property sits, did you know that owners also have exclusive rights to the air space above it? You can sell these “air rights” to investors looking to build in the empty space above your building. This can be particularly useful in the construction of mixed use properties. In 2017, for example, a landlord in Australia sold the air rights to one of his shopping centers to a Chinese company looking to build luxury condos on top of it. The developer earned $70 million just by selling his air rights. 

Securing Financing for Unique Real Estate Ventures

Unique properties often require a creative approach not just in their concept and execution but also in how they are financed. Because of their niche appeal, they may be considered riskier by some traditional lenders. Luckily, there are plenty of alternative financing options for unusual real estate opportunities: 

Hard Money Loans

Hard money loans are a compelling option for investors looking to move quickly or those with less-than-perfect credit. Since these loans are secured by the property itself, lenders are more concerned with the value of the real estate and the project’s potential than with the borrower’s credit history. Hard money loans come with higher interest rates and shorter terms, making them ideal for projects expected to turn around quickly. 

Partnering with Investors

Another route is to seek investment partners who are interested in the unique aspects of your project. This could mean forming a limited partnership where investors contribute capital in exchange for a share of the profits (aka an REIT). Presenting a well-thought-out business plan that highlights the unique appeal and potential profitability of your venture is key to attracting the right partners.

Crowdfunding

Real estate crowdfunding platforms have opened new doors for funding unique projects. By pitching your investment to a crowd of potential investors, you can raise the necessary funds while also building a community of supporters interested in your project’s success.

Government Grants and Tax Incentives

For projects like historic property conversions, there might be government grants or tax incentives available to help offset some of the costs. Likewise, the SBA offers incentives for investors looking to prioritize energy efficient upgrades for their properties. Researching local, state, and federal programs can uncover opportunities to reduce expenses through tax credits, grants, or other financial support.

Hard Money Loans Colorado

Investing in unique real estate offers the chance to breathe new life into unconventional properties, create distinctive experiences, and potentially unlock significant returns. At Pinetree Financial Partners, we understand that a quick turnaround time is essential in many real estate ventures, including acquiring an unusual property or selling air rights to the highest bidder. If you are in need of fast capital for your next real estate opportunity, contact our office for a free quote. We loan on all sorts of projects in the state of Colorado and look forward to seeing how we can help you. 

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