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1. Full Energy packages don’t sell easily by themselves (based on 30 years of attempts with marginal success)2. Full packages will sell if combined with Wow! Remodeling• Can you put that much money into a
house and get a return on investment? And make a profit?
• Will the consumers buy that big a package of energy saving retrofit?
• If they will buy, can they get financing? Will the properties appraise for enough?
• Preliminary answers at end of poster.
Questions from Skeptics, Professionals & Gurus:
Original Hypotheses in Foreclosure Renovation:
Closing Escrow next weekFeatures: Low E2 windowsR-50 InsulationNew HVAC systemR-8 Ducts, sealed & testedComplete Shell SealingMore…(see Energy Package)
2211
33
44 55
66
Purchasing Homes in Close Proximity
Allows:1. Saving of fueland travel time
(green!)
2. We can control the “Comps” and
Influence Appraisals after
the first one.
The Wow! Package1. Granite Counters at Kitchen & Baths
2. Extra Deep Stainless Steel Sink3. Designer Spray Faucet
4. Italian glass tile backsplash5. Under Counter Lighting
6. All wood Cabinetry7. Crown Molding and Tall Baseboard
8. All new interior doors and trim9. New Front Door with Art Glass
10. Tile & Travertine floors11. Engineered Wood Laminate Floors12. Designer tile and faucets at baths
13. Chair Rail, , Wainscoating & 3 tone paint14. Designer Light fixtures & ceiling fans
Include
This,Include
This,
The Done! Package1. New Front and Back Lawn
2. Automatic Sprinklers with timer3. New 30 - 50 year roof
4. New Roll-up Garage Door with Openers5. Gutters
6. New 2 inch faux wood blinds7. Major Professional Tree Trimming
8. Sewer line renovated as necessasry9. All new oil rubbed bronze hardware10. New Energy Star Appliances with
Warrantees11. New Windows and HVAC with
Warrantees12. Upgraded Carpet with 6 lb pad
13. Deciduous Trees placed for Energy Efficiency
And
This,And
This,
The Energy! Package
1. New HVAC system, Stainless Steel Heat Exchanger
2. Manual J sizing, usually half of previous capacity
3. New R-8 short mylar ducts partially buried
4. Manual D with tight seal and test5. Extra Return Duct in Master Suite
6. New LoE2 windows and Patio Doors7. Low E 140 at west windows
8. Deciduous Trees planted selectively9. Shell Sealing of floor & ceiling with test
10. Attic Insulation to R-50 11. Occupancy sensors
12. Gas Stove and Dryer options13. Ceiling Fans at all sleeping and living
rooms14. Panasonic Ventilation with controls
So we can
Sell all
this
Everytime
So we can
Sell all
this
Everytime
Ugly Step-Sister to Cinderella
The Cinderella Wow! Conversionin our Energy Wise Renovations
Allows us to include Serious Energy Retrofits!
The Cinderella Wow! Conversionin our Energy Wise Renovations
Allows us to include Serious Energy Retrofits!
We Buy Ugly Houses
(the uglier the better)
We Buy Ugly Houses
(the uglier the better)
Wannabe RemodelersMany of our best buys have been homes where previous
owners had ideas and started projects that remain unfinished or code violations. Stuff like this scares
many investors.
No Problem & Not that Expensive
Oh, Honey, I love it!
Let’s buy this one....
Oh, Honey, I love it!
Let’s buy this one....
Well, they have those Energy Stars and the carpet is made out of
recycled Pepsi bottles so I guess we might as well...
Well, they have those Energy Stars and the carpet is made out of
recycled Pepsi bottles so I guess we might as well...
How Green is (sometimes)
Sold
How Green is (sometimes)
Sold
W4
A True Win, Win, Win, Win Strategy!
HomeOwnerHomeOwner
CommunityCommunity
The PlanetThe Planet
Energy-Wise Renovator
Energy-Wise Renovator
The Homeowner Wins
With Lower Bills and Increased Comfort
The Community WinsWith New Jobs,
More Home Ownership &
Increased Property Values
The Planet WinsWith Less Carbon
Emissions
The Investor WinsAnd Gets To Keep
A Little Green
So, How’s It Going After 8 Months?• First 5 properties sold after first open house.
Appraisals were OK and we have a waiting list
• Profitability? I find it better than Contracting!
• Fun? This ex-contractor is having a blast!
• Flexibility? Time for important things
• Good for the Community? Raising Property Tax Base. These houses sell for 20% above the comparables. No Incentives or (new) government programs required.
• Green Labor Force? These jobs are the advancement and career path up for entry level weatherization workers.
• Energy Reduction? Estimated 25-50% reduction (with no previous bills to compare and no dependence on future occupant behavior required.)
• With 1000 Businesses across the country doing this, we could do some serious good.
• Wanna learn Energy Wise House Flipping? I’m so sold on this idea, I’ve begun teaching it.
Free Training, LearnEnergy-Wise House Flipping
Conference Calls Tue 6:00 pm PST
Dial in 605.475.4800 Access 795323#
On Site Renovation training monthly
Free Training, LearnEnergy-Wise House Flipping
Conference Calls Tue 6:00 pm PST
Dial in 605.475.4800 Access 795323#
On Site Renovation training monthly
Let’s Build An Army!
Let’s Build An Army!
Tale of 2 Foreclosures - True (sad) StoryPurchase Price
Improvements $Occupant
Energy RetrofitCarbon Footprint
Green JobsTax Base
NeighborhoodBusiness Plan?
$70,000$10,000RenterZero
No ChangeZero
LoweredDragged Down
Praying for Economy
$70,000$50,000
Proud New HomeOwnerEverythingReduced
YesRaised
Lifted UpDeposit $ & Repeat
Which would you rather have next door to you?Which would you rather have next door to you?
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Construction Sign & Real Estate Sign better than
either alone
Construction Sign & Real Estate Sign better than
either alone
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
We buy Ugly Houses
We buy Ugly Houses
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
The more vandalism,
The better (the price)
The more vandalism,
The better (the price)
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Not too smart taggerBurt couldn’t say much in
court
Not too smart taggerBurt couldn’t say much in
court
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GreenEarthEquities.Com
We love ugly houses!
We love ugly houses!
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GreenEarthEquities.Com
Deferred Maintenance
Deferred Maintenance
18
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GreenEarthEquities.Com
Most Investors hate all pools, especially green
ones = Opportunity
Most Investors hate all pools, especially green
ones = Opportunity
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Pool Cleaned Up Nice Patio Cover for Outside
Living
Pool Cleaned Up Nice Patio Cover for Outside
Living
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GreenEarthEquities.Com
Former Front Porch Project
Former Front Porch Project
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Kitchen in processKitchen in process
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More Vandalism and Rookie Remodeling
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Wannabe Remodelers
Many of our best buys have been the home
where the owners giftings have been in other areas
besides using tools.
But they gave it a go... And really messed things
up.
Stuff like this scares many investors
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Unique Use of Small Space
Wow! Features seen only in custom homes help buyers justify the total
investment (including the Energy Package.)
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Small but Classy
Built in Shower Shelves and accent tiles are a signature feature that
buyers love.
Extra cost is minimal after you know how to do it.
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GreenEarthEquities.Com
Crown and Base Look for the joints
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Same granite and tile accent throughout
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Blinds installed is part of the “Done
Package”
Blinds installed is part of the “Done
Package”
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GreenEarthEquities.Com
Almost Finished. Warm light is from colored
glass tiles
Almost Finished. Warm light is from colored
glass tiles
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GreenEarthEquities.Com
Green is Sexy and Cool So Lead with Green, but Deliver
Energy•Purpose for our name GreenEarthEquities
•Suggest you do similar.
•Use it in blogging and sites... Rise in Google
•People dont really understand it.
•Bullet points are more powerful than stats
•“Our carpet is made of recycled Pepsi bottles”
•Purpose for our name GreenEarthEquities
•Suggest you do similar.
•Use it in blogging and sites... Rise in Google
•People dont really understand it.
•Bullet points are more powerful than stats
•“Our carpet is made of recycled Pepsi bottles”
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Why Be An Energy Wise House
Flipper?•Make some money
•Build and Preserve a Lifestyle
•Save the Planet
•Bless your Community
•Feel good at the end of the day
•All of the above
•Make some money
•Build and Preserve a Lifestyle
•Save the Planet
•Bless your Community
•Feel good at the end of the day
•All of the above
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GreenEarthEquities.Com
In the 21st century, Travel
Agents and Energy Wise
House Flippers can
work anywhere on the planet.
In the 21st century, Travel
Agents and Energy Wise
House Flippers can
work anywhere on the planet.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
The 5 Olympic Rings of Energy Wise
Renovation•Buy It Right
•Design It Right
•Build It Right
•Market It Right
•Sell It Right
•Pass thru all these rings and receive the Gold!
•Buy It Right
•Design It Right
•Build It Right
•Market It Right
•Sell It Right
•Pass thru all these rings and receive the Gold!
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More Choices,Which Realtor?•1. Work directly with REO listing
agent?
•2. Use your Buyer’s agent to present the offers to the REO listing agent?
•Lazy and Busy people prefer #2
•(Make sure you find a good Buyers Agent)
•It’s more work, but #1 has advantages too
•1. Work directly with REO listing agent?
•2. Use your Buyer’s agent to present the offers to the REO listing agent?
•Lazy and Busy people prefer #2
•(Make sure you find a good Buyers Agent)
•It’s more work, but #1 has advantages too
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Nobody Minds If You Beat Up The
Bank!•No one likes smashing the dreams of retired people and single moms.
•You dont have to. The bank’s done that already.
•The Bank is over a barrel. They have to sell
•If ratios exceed ‘X’, they cease being a bank
•Dont feel bad if it feels good.
•No one likes smashing the dreams of retired people and single moms.
•You dont have to. The bank’s done that already.
•The Bank is over a barrel. They have to sell
•If ratios exceed ‘X’, they cease being a bank
•Dont feel bad if it feels good.
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Picking an AreaAnd Specializing•You will know the area best.
•Save fuel, save time, save $ (very green)
•You will start to build your own comps
•After #1, All properties will appraise
•You are improving the community
•The neighbors will love you.
•You will know the area best.
•Save fuel, save time, save $ (very green)
•You will start to build your own comps
•After #1, All properties will appraise
•You are improving the community
•The neighbors will love you.
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GreenEarthEquities.Com
How to Choose Your Neighborhood•Keep it Blue to Stay in the Green
•Buy at 33 - 60% of the Median Home Price
•Sell at 80 - 130% of Median Home Price
•basis = Fresno Median $145,000 (Mar, 09)
•First Time Buyers in this range are plentiful
•Facilitate the American Dream
•Keep it Blue to Stay in the Green
•Buy at 33 - 60% of the Median Home Price
•Sell at 80 - 130% of Median Home Price
•basis = Fresno Median $145,000 (Mar, 09)
•First Time Buyers in this range are plentiful
•Facilitate the American Dream
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Heat Maps, Digital•Trulia, HotPads,
•LocaleTrends (better detail, more control) still not as detailed as Big Honker Map and Colored Pins,
•Recommend Ranges 75-100, 100-125, 125-150, 150-175, 175-200, 200-250
•Asking Prices are easier to get and OK for this purpose
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Fresno Zoomed OutThere’s lots of Yellow and Red
Fresno Zoomed OutThere’s lots of Yellow and Red
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Should I Become a Realtor?•Probably a good idea, If you are:
•Detail oriented and like structure
•You’ll make money both ways, just disclose
•For non-paperwork people, hire a realtor (most recent deal had 43 pages just to buy) remember 10 to 20 offers per deal....
•Let a good realtor do what they do best. (DJR previous preference),,, (changing with Rob ---- becoming licensed)
•Probably a good idea, If you are:
•Detail oriented and like structure
•You’ll make money both ways, just disclose
•For non-paperwork people, hire a realtor (most recent deal had 43 pages just to buy) remember 10 to 20 offers per deal....
•Let a good realtor do what they do best. (DJR previous preference),,, (changing with Rob ---- becoming licensed)
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Internet Real Estate Sites (starter set)•CyberHomes.Com
•Maps.Live.Com
•GoogleEarth.com
•HotPads.com , Trulia.Com, Localetrends.com
•RentoMeter.com
•Ocwen.com
•biggerpockets.com/bank-reo.html
•CyberHomes.Com
•Maps.Live.Com
•GoogleEarth.com
•HotPads.com , Trulia.Com, Localetrends.com
•RentoMeter.com
•Ocwen.com
•biggerpockets.com/bank-reo.html
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CyberHomes.comCyberHomes.com
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Formula for Purchase Price
•ARV = After Repair Value
•MAO = Maximum Allowable Offer
•MAO = ARV * .65 - Repairs - Soft Costs
•Note: This is Maximum. Offer less to leave room to dance.
•ARV = After Repair Value
•MAO = Maximum Allowable Offer
•MAO = ARV * .65 - Repairs - Soft Costs
•Note: This is Maximum. Offer less to leave room to dance.
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GreenEarthEquities.Com
Ways to Offer•MAO formula - 10 or 20%
•Asking price - 40% (for volume offers)
•Look at property after dance begins (due diligence)
•Remember this is just the first step.
•As much as 100% of the profit comes in the dance of negotiation
•MAO formula - 10 or 20%
•Asking price - 40% (for volume offers)
•Look at property after dance begins (due diligence)
•Remember this is just the first step.
•As much as 100% of the profit comes in the dance of negotiation
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GreenEarthEquities.Com
Your Digital Signature
•PDFPen for Mac (DJR uses)
•PrimoPDF for Windows (you dont need full Adobe Acrobat)
•transparent signatures and initials
•Demonstration
•PDFPen for Mac (DJR uses)
•PrimoPDF for Windows (you dont need full Adobe Acrobat)
•transparent signatures and initials
•Demonstration
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GreenEarthEquities.Com
Make A Lot of Offers•10 to 20 offers to get a sale is
average
•Fewer offers, you may be paying too much.
•Keep going back and refreshing your offer
•Patience is a virtue
•Dont ever “need” a deal
•Dont get emotionally attached to a deal
•10 to 20 offers to get a sale is average
•Fewer offers, you may be paying too much.
•Keep going back and refreshing your offer
•Patience is a virtue
•Dont ever “need” a deal
•Dont get emotionally attached to a deal
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GreenEarthEquities.Com
You only need one Contingency
Clause•Inspection clause is all you need.
•More contingencies weaken the offer.
•A cash offer with no contingencies, not even inspections, is a strong offer and may be accepted at a low price. (do this only if you or your agent have inspected and you are very confident)
•Inspection clause is all you need.
•More contingencies weaken the offer.
•A cash offer with no contingencies, not even inspections, is a strong offer and may be accepted at a low price. (do this only if you or your agent have inspected and you are very confident)
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Cash is a Strong Offer
•Sellers will prefer a cash offer above one contingent on financing, even at a lower sales price
•Gather your Cash before going shopping.
•The Cash only needs to be there by close of escrow.
•Sellers will prefer a cash offer above one contingent on financing, even at a lower sales price
•Gather your Cash before going shopping.
•The Cash only needs to be there by close of escrow.
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Exit Strategies, Decide before you offer•Retail Flip after Renovation. Is
FHA the new Sub Prime?
•Wholesale Flip (Assignment)
•BRRR Buy, Rehab, Rent, Refinance
•Buy and Hold (rent)
•RTO Rent to Own, Lease Option
•Owner Finance to open a new pool of buyers.
•Retail Flip after Renovation. Is FHA the new Sub Prime?
•Wholesale Flip (Assignment)
•BRRR Buy, Rehab, Rent, Refinance
•Buy and Hold (rent)
•RTO Rent to Own, Lease Option
•Owner Finance to open a new pool of buyers.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Houses to Stay Away From, or discount Big•Busy Street
•Commercial, Industrial next door
•Two Bedrooms
•One Bathroom
•Unusable floor plan
•War Zones,
•Busy Street
•Commercial, Industrial next door
•Two Bedrooms
•One Bathroom
•Unusable floor plan
•War Zones,
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Houses to Stay Away From, or discount Big•Very small houses, under 900 sq ft.
•Master Bedroom should be 12 x 12
•No garage, No off street is even worse
•High tension power lines
•Projects, Train Tracks, Freeway
•Functionally Obsolete, Bad Floor Plans
•Very small houses, under 900 sq ft.
•Master Bedroom should be 12 x 12
•No garage, No off street is even worse
•High tension power lines
•Projects, Train Tracks, Freeway
•Functionally Obsolete, Bad Floor Plans
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GreenEarthEquities.Com
Float Like a Butterfly
Sting Like a Bee•In and Out Quickly is the Safe Way to flip houses
•In and Out before the market changes radically
•120 days from Own It to Sold It. (COE to COE) is a reasonable target.
•Turn the money. Do another one. 3 times a year. At least 2
•In and Out Quickly is the Safe Way to flip houses
•In and Out before the market changes radically
•120 days from Own It to Sold It. (COE to COE) is a reasonable target.
•Turn the money. Do another one. 3 times a year. At least 2
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GreenEarthEquities.Com
Interview a Realtor•Most Realtors dont like to offer 10 -
20 times to get a sale
•Most Realtors dont like REO’s Find one that does.
•Digitally accomplished. Otherwise you will wear them and you out signing papers.
•Do you own investment property yourself?
•How do you feel about making really low offers?
•Most Realtors dont like to offer 10 - 20 times to get a sale
•Most Realtors dont like REO’s Find one that does.
•Digitally accomplished. Otherwise you will wear them and you out signing papers.
•Do you own investment property yourself?
•How do you feel about making really low offers?
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GreenEarthEquities.Com
Hamburger helps dogs like eating
their pills...•You wont sell much green or
energy efficiency by itself. Ask me how I know that
•Public is starting to like the Green idea
•But not enough to pay what it costs
•General public has never been willing to pay for energy efficiency without incentives
•The Wow! Factor & good fundamentals allow us to install Green and get paid for it.
•You wont sell much green or energy efficiency by itself. Ask me how I know that
•Public is starting to like the Green idea
•But not enough to pay what it costs
•General public has never been willing to pay for energy efficiency without incentives
•The Wow! Factor & good fundamentals allow us to install Green and get paid for it.
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GreenEarthEquities.Com
GEE Sales Strategy #1•Two Signs, Construction is
Unlimited
•Select group previews the homes
•Brochure shows the others in process
•Others sell before completion. If not sold in 30 days we would move to Plan B and ensure a rapid sale. Owner finance or Lease Option - Rent to Own
•Holding finished property is a bad idea
•Two Signs, Construction is Unlimited
•Select group previews the homes
•Brochure shows the others in process
•Others sell before completion. If not sold in 30 days we would move to Plan B and ensure a rapid sale. Owner finance or Lease Option - Rent to Own
•Holding finished property is a bad idea
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GreenEarthEquities.Com
GEE Sales Strategy #2•Provide a unique product
•They have never seen anything like it.
•Then there really is no competition
•Humans mostly buy emotionally
•We are convinced that we are rational beings
•So give them some Bullet Point Rationality
•To Validate the Emotional Decision they’ve already made
•Provide a unique product
•They have never seen anything like it.
•Then there really is no competition
•Humans mostly buy emotionally
•We are convinced that we are rational beings
•So give them some Bullet Point Rationality
•To Validate the Emotional Decision they’ve already made
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GEE Buying Strategy•Choose the area
•Offer, offer... Dont get emotionally involved
•Do your due diligence inspections
•Home, Termite, & Sewer are minimum
•Request the Haircut
•Be prepared to walk away
•Choose the area
•Offer, offer... Dont get emotionally involved
•Do your due diligence inspections
•Home, Termite, & Sewer are minimum
•Request the Haircut
•Be prepared to walk away
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GreenEarthEquities.Com
GEE Buying Strategy #2•Know your costs before you buy
(finalize)
•Know your final selling price
•Have your exit strategies before buying
•Use escrow time to get totally ready
•Flurry of activity on day #1, then keep it up
•Know your costs before you buy (finalize)
•Know your final selling price
•Have your exit strategies before buying
•Use escrow time to get totally ready
•Flurry of activity on day #1, then keep it up
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GreenEarthEquities.Com
How to read the ads and the
listings•Key phrases we are looking for
•Fixer Upper, Needs a little TLC,
•Handyman Special, Bank Owned,
•Corporate owned, Permits unknown,
•Investor Special, Needs work,
•Good Bones
•Key phrases we are looking for
•Fixer Upper, Needs a little TLC,
•Handyman Special, Bank Owned,
•Corporate owned, Permits unknown,
•Investor Special, Needs work,
•Good Bones
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GreenEarthEquities.Com
Key phrases we aren’t looking for•Just Remodeled
•Picture perfect
•Beautiful
•Well kept
•Recently updated
•Just Remodeled
•Picture perfect
•Beautiful
•Well kept
•Recently updated
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GreenEarthEquities.Com
We are looking for Ugly Houses
•The ones no one else wants
•Too much work for them
•They cant visualize the end result
•There is less competition
•More room for profit
•If you have the right team
•The ones no one else wants
•Too much work for them
•They cant visualize the end result
•There is less competition
•More room for profit
•If you have the right team
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GreenEarthEquities.Com
How much is this photo worth?
How much is this photo worth?
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GreenEarthEquities.Com
Different Strokes for Different Folks!Different Strokes
for Different Folks!
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GreenEarthEquities.Com
Wannabe and Rookie Remodelers create great opportunities for good
deals! Ugly, but easy to
fix.
Wannabe and Rookie Remodelers create great opportunities for good
deals! Ugly, but easy to
fix.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Ugly Good Deals #2•Unpermitted addition or
remodeling
•Garage conversions
•Unfinished projects
•Home Improvement projects by rookies
•Pools of any kind reduce the # of buyers (liability issues)
•The Ugly house on the Average Street
•Unpermitted addition or remodeling
•Garage conversions
•Unfinished projects
•Home Improvement projects by rookies
•Pools of any kind reduce the # of buyers (liability issues)
•The Ugly house on the Average Street
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GreenEarthEquities.Com
Watch Out ForThe War Zones
•Graffitti
•Tennis shoes over the wires
•Lots of Burglar Bars
•City website will detail crimes per 1000
•Talk to a cop
•Graffitti
•Tennis shoes over the wires
•Lots of Burglar Bars
•City website will detail crimes per 1000
•Talk to a cop
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GreenEarthEquities.Com
Graffitti is easy to fix. But will it
come right back?
Reason we did not buy
this one: No off street
parking & we all got tickets
at the job walk.
Graffitti is easy to fix. But will it
come right back?
Reason we did not buy
this one: No off street
parking & we all got tickets
at the job walk.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Who’s On Your Team?
•Realtor
•Banker
•Insurance Agent
•Loan Broker
•Escrow Officer
•Inspectors, Termite, Sewer, Home
•Realtor
•Banker
•Insurance Agent
•Loan Broker
•Escrow Officer
•Inspectors, Termite, Sewer, Home
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GreenEarthEquities.Com
Who’s On Your Team? #2
•Subcontractors, HVAC, Electrical, Plumbing, Roofing, Windows, Patio Cover, Flooring, Tile, Granite, Pool, Masonry, Concrete, Locksmith, Dumpster Company, ReStore,
•General Contractor to coordinate all the subs and get all the rest of the work done (with his labor, not yours)
•Subcontractors, HVAC, Electrical, Plumbing, Roofing, Windows, Patio Cover, Flooring, Tile, Granite, Pool, Masonry, Concrete, Locksmith, Dumpster Company, ReStore,
•General Contractor to coordinate all the subs and get all the rest of the work done (with his labor, not yours)
My Favorite Demographic for Energy Wise Renovation
30 to 50 year old homes (tract homes)
1000 to 1500 sqare feet 3-4 bedrooms 2 baths
4x12 pitch roofs, 8 foot ceilings, single story,
usually on a slab, usually stucco.
In a desirable area.... people want to live there
Not the lowest priced zip code in the area
Median home value for this Zip is about median for the whole City (93727 is $145,000, City is $145,000)
Includes “anchors” that attract buyers
(jobs, shopping, parks etc)
30 to 50 year old homes (tract homes)
1000 to 1500 sqare feet 3-4 bedrooms 2 baths
4x12 pitch roofs, 8 foot ceilings, single story,
usually on a slab, usually stucco.
In a desirable area.... people want to live there
Not the lowest priced zip code in the area
Median home value for this Zip is about median for the whole City (93727 is $145,000, City is $145,000)
Includes “anchors” that attract buyers
(jobs, shopping, parks etc)
Reasons This Is A Good Place For This Type Of Investing
1. These homes usually have everything worn out:
Roofs, AC, Windows, Carpet, Paint, everything can benefit from renovation.
2. Newer homes dont need enough.
3. Older homes may need too much and become a money pit.
4. The tract will all be built the same. Stay in a tract and get economies of scale and knowledge of prices
and start controlling your own comps and appraisals.
1. These homes usually have everything worn out:
Roofs, AC, Windows, Carpet, Paint, everything can benefit from renovation.
2. Newer homes dont need enough.
3. Older homes may need too much and become a money pit.
4. The tract will all be built the same. Stay in a tract and get economies of scale and knowledge of prices
and start controlling your own comps and appraisals.
Reasons This Is A Good Place For This Type Of Investing
5. The 8 foot ceiling and slab and stucco make this an easy home to get significant energy savings
6. Three Bedroom Two Bath is what sells. It’s what first time home buyers want. 4 is even better
7. This type house, all fixed up will have great appeal to first time home buyers.
8. There are a lot of first time home buyers and the current administration is determined to get as many as possible into home ownership.
Reasons For 3 Packages1. Big Energy Packages for significant reductions are hard to sell unless combined with more “visible” things that first time buyers are emotionally attracted to. (Granite Counter Tops etc)
Thirty Years of Contracting has proven it for me
Customers who will buy “everything” are rare.
Small number of complete jobs sold by the new Home Performance Industry shows the same conclusion
2. Complete Packages set your homes apart. Finding Buyers has not been difficult.
1. Big Energy Packages for significant reductions are hard to sell unless combined with more “visible” things that first time buyers are emotionally attracted to. (Granite Counter Tops etc)
Thirty Years of Contracting has proven it for me
Customers who will buy “everything” are rare.
Small number of complete jobs sold by the new Home Performance Industry shows the same conclusion
2. Complete Packages set your homes apart. Finding Buyers has not been difficult.
The “Cliff’s Notes” Formula ForThe 3 Package System
The Energy Package $20,000 (hard cost)
The Wow! Package $20,000
The Done Package $20,000
Soft Costs $20,000
Profit $20,000
Total Buy-Sell Spread $100,000
The Energy Package $20,000 (hard cost)
The Wow! Package $20,000
The Done Package $20,000
Soft Costs $20,000
Profit $20,000
Total Buy-Sell Spread $100,000
Som
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xam
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Foam at Windows and Corners. Painted FireplaceNotice effect of long overhang. It has kept sun off western glass.
Now the deciduous tree is about to take over for the rest of the day.
Foam at Windows and Corners. Painted FireplaceNotice effect of long overhang. It has kept sun off western glass.
Now the deciduous tree is about to take over for the rest of the day.
Som
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xam
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sDesigner Sink and
Euro Faucet will set you apart from
the homes in the
neighborhood.
Counter Top is left over
granite from the kitchen.
Designer Sink and
Euro Faucet will set you apart from
the homes in the
neighborhood.
Counter Top is left over
granite from the kitchen.
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This has evolved to be our typical kitchen. Granite Counters from 2’ & 3’ blanks, not slabs, Glass tile back splash, Deep Sink,
Designer Faucet, Stainless appliances, Real Wood Cabinets (plywood backs, not OSB or particle board, Travertine Floors, Under Counter
Lighting, Downlight, Efficient Ceiling Light. One error is visible here. Can you spot it?
This has evolved to be our typical kitchen. Granite Counters from 2’ & 3’ blanks, not slabs, Glass tile back splash, Deep Sink,
Designer Faucet, Stainless appliances, Real Wood Cabinets (plywood backs, not OSB or particle board, Travertine Floors, Under Counter
Lighting, Downlight, Efficient Ceiling Light. One error is visible here. Can you spot it?
Som
e E
xam
ple
sSame tile as
kitchen backsplash for
accent.
Inset shampoo alcove
These are not expensive but definitely say
“Custom”
Same tile as kitchen
backsplash for accent.
Inset shampoo alcove
These are not expensive but definitely say
“Custom”
Som
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xam
ple
s
Foam Blocks and Window & Door Trim. Garage Door with windows & Auto Opener
30 year roof was existing
Foam Blocks and Window & Door Trim. Garage Door with windows & Auto Opener
30 year roof was existing
Som
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Chair Rail, Crown Molding, Panel Doors & Trim,Oil Rubbed Bronze Hardware is popular now.
Three tone paint, (lighter ceiling, medium high wall,
darker low wall) Ceiling Fan, Outdoor patio.
Chair Rail, Crown Molding, Panel Doors & Trim,Oil Rubbed Bronze Hardware is popular now.
Three tone paint, (lighter ceiling, medium high wall,
darker low wall) Ceiling Fan, Outdoor patio.
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2
HVAC Package ARemember our Parameters for
Houses(Our Target houses are 1,100 to
1,500 square feet approx 45 year old Tract homes with 8 foot
ceilings)
Tear out everything, Unit, Ducts, Registers
Replace with 2 ton Package Roof Mount Unit
13 SEER AC with 80 % efficiency gas furnace, engineered and
sealed R-8 flex ducts and low resistance registers
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3
Q. Why Always New Ducts?
A. Bad ductwork is usually the biggest problem in homes. Wrong sizing
Wrong Register placement
Poorly Sealed Poorly insulated
Duct Sealing addresses only one of these
problems.
Putting Make-Up on a Corpse
Better to start over and do it right. Because we
can.(attic is accessible,
unlike on some 2 story homes)
A. Bad ductwork is usually the biggest problem in homes. Wrong sizing
Wrong Register placement
Poorly Sealed Poorly insulated
Duct Sealing addresses only one of these
problems.
Putting Make-Up on a Corpse
Better to start over and do it right. Because we
can.(attic is accessible,
unlike on some 2 story homes)
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4
What’s the HVAC contractor do?
(besides install the system)
A. Manual J calculation. Confirms 2 ton will work
A. Duct design with Manual D
Including Register Selection
A. Obtain the Building Permit
A. Duct Seal Test with Blaster
A. Combustion & CO testing
A. Envelope infiltration test with Blower Door
A. Manual J calculation. Confirms 2 ton will work
A. Duct design with Manual D
Including Register Selection
A. Obtain the Building Permit
A. Duct Seal Test with Blaster
A. Combustion & CO testing
A. Envelope infiltration test with Blower Door
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5
If they argue about these standards, they
are the wrong player for the team.
If they argue about these standards, they
are the wrong player for the team.
Q. Choosing The AC Contractor
(cheapest bid is not the right answer)A. More than any other trade, this guy needs to know what he is doing
and what you want to do.
A. Dont go cheap on this.
A. CBPCA training, NCT membership, BPI certification are
indicators of competency
A. Familiarity with all these items and
excitement to work with you because you want to
do things right is also good.
A. More than any other trade, this guy needs to know what he is doing
and what you want to do.
A. Dont go cheap on this.
A. CBPCA training, NCT membership, BPI certification are
indicators of competency
A. Familiarity with all these items and
excitement to work with you because you want to
do things right is also good.
How About Mini Splits?This is the technology used
by the entire rest of the planet
besides USA.Why?
Americans have bought the idea that they need a lot of
forced air blowing into every room.
Typically Mini Splits have had only one or a few indoor
units.New Developments allow
small short duct systems to aid in distribution to satisfy
Americans.
How About Mini Splits?Benefits of Mini Splits
1. High efficiency up to 21 SEER and more. Due to
Inverter = DC technology. This variable speed motor is
used on both the compressor and the fan. American manufacturers
have only figured out how to use ECM motors on the fan.
Rumor has it that ECM motors on compressors will be the next big thing from US manufacturers. Dont
expect it to be cheap.
How About Mini Splits?2. No duct loss.
Because there are no ducts.3. Original Cost is less4. Electric Heat Pump
heating eliminates combustion altogether.
One recent Price comparison for complete new
installation
13 SEER Package on roof $6500
High Efficiency Split System $8000
MiniSplit with minimal ducts $5500
The Concealed Unit = Key in US
Here is a Concealed Unit, being installed in a hallway.
The small ducts feed the bedrooms and bathrooms
A lowered ceiling will be installed when the ductwork
is complete.
All the ductwork is within the building envelope and covered by R-55 insulation
= No duct loss!
Stay Tuned For Updates!
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0
V...V...
Q. Why don’t people know what the V
stands for?
A. Because our houses have been so crummy and loose that
they got plenty of ventilation just from the leaks.
A. Now that we are tightening up our houses, mechanical
ventilation is essential.
A. Build as tight as possible, then ventilate as necessary
A. Because our houses have been so crummy and loose that
they got plenty of ventilation just from the leaks.
A. Now that we are tightening up our houses, mechanical
ventilation is essential.
A. Build as tight as possible, then ventilate as necessary
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1
Oh, Honey, I love it!
Let’s buy this one....
Oh, Honey, I love it!
Let’s buy this one....
Well, they have those Energy Stars and the carpet is made out of
recycled Pepsi bottles so I guess we might as well...
Well, they have those Energy Stars and the carpet is made out of
recycled Pepsi bottles so I guess we might as well...
You need to know all this
HVAC stuff but remember, This is how your home really get’s
sold (usually)
You need to know all this
HVAC stuff but remember, This is how your home really get’s
sold (usually)
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2
Dont Let Things Get:
Out Of Order!(On Your Energy-Wise Renovation)
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Insulation and Shell Sealing go
together!Lack of Shell Sealing is one of the reasons That the insulation rebate programs of the
70’s and 80’s were regarded as a failureAnd cancelled by some utility companies.
They each stop a different kind of heat loss.
Insulation stops heat loss by conduction
Shell Sealing stops heated or cooled air from leaving thru the cracks in the air barrier.
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How to Shell Seal?A. Remove the Attic Insulation at the wall
plates. Seal with spray foam or caulk:
Holes left by electricians-plumbers Ceiling light fixture boxes
Drywall joints All changes in elevation such as
lowered hallways, voids, chimneys, and knee walls.
A. If the home has a raised wood floor, seal the same things under the floor.A. Dont miss the under-floor biggie:
big holes cut in the floor to accommodate tubs and shower drains. Cover with
Duct Board and seal in place.
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HairCut RequestPhotos can be sent along with the HairCut RequestWhich of the next 4 photos do you think I should send along? How much do you think I will get?
Front Entry Porch Illegal Addition Adds to the Ugly Factor. Will fit nicely in 40 yd dumpster on
Day#1
Front Entry Porch Illegal Addition Adds to the Ugly Factor. Will fit nicely in 40 yd dumpster on
Day#1
3405 N MiamiNew Project in Due Diligence
3405 N MiamiNew Project in Due Diligence
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Most Bathrooms of Foreclosed Homes Look
Similar To This.
Most Bathrooms of Foreclosed Homes Look
Similar To This.
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GreenEarthEquities.Com © 2009
Guess What’s On The Other Side Of
This Wall?
Is This Stachyobotrys?
See the CDC sitehttp://www.cdc.gov/MOLD/stachy.htmFor Remediation
with Bleach
Is This Stachyobotrys?
See the CDC sitehttp://www.cdc.gov/MOLD/stachy.htmFor Remediation
with Bleach
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Not A Good Idea To Walk On This Roof
Are the Truss Chords Damaged? Or only the plywood? Big
(huge) cost difference to repair.
Are the Truss Chords Damaged? Or only the plywood? Big
(huge) cost difference to repair.
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Price per Square Foot
This is regarded by some as the most
important indicator of value.
Note GEE properties on Bernadine value
is exceeding the neighborhood
including even the 20 year newer neighborhood.
Price per Square Foot
This is regarded by some as the most
important indicator of value.
Note GEE properties on Bernadine value
is exceeding the neighborhood
including even the 20 year newer neighborhood.
11 22
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No Extra Charge For The Dead
Mouse!
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10
My BestOpen House Ever
Disclaimer:I haven’t done a LOT
of Open Houses.
The methods outlined on this site generally
lead to the house being sold before it is
finished.
The “Magic Brochure” is key to these results.
Disclaimer:I haven’t done a LOT
of Open Houses.
The methods outlined on this site generally
lead to the house being sold before it is
finished.
The “Magic Brochure” is key to these results.
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11
This is from the most recent Open House
from day before yesterday.
A more typical Open House No Bankers,
Insurance Agents etc to impress...
But the same type of Brochure
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12
Typical Sunday Afternoon Open House... Except
Massive Signage& 2 Realtors
1 knocked doors10 up and 10
down both sides.
Results:20 parties came
thruMuch InterestRealtor met 1 couple after at
another address
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13
NO FOOD on an open house like
this.
This sheet sends a good
psychological message to the
1. Buyer2. Other Agents
3. Appraiser
(most important to leave a supply
of these brochures on the
counter)
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14
Similar Format
Simple to just add the
subsequent houses and the
next ones available
We are actually operating similar to a tract builder doing Pre-Sales out of his model homes. We just sell each model
as we go.
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15
Be There!It is good for you to be
there at the open house.
1. Your passion about your project can come thru to the
buyers
2. Your Realtor will pick up little details from you,
especially about the Energy Package.
3. It will be good for you to hear the feedback from real
buyers.
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16
Q. Where do I find the Money?A. Banks. Small, Local Banks with only a few branches. My bank has only one branch. These banks pride
themselves on local involvement and “relationship banking” The president came to our
first open house.
These banks may offer a Line of Credit or may finance your project on a
case by case basis.
L.O.C. Rates are around 6%. 1-2 points They will want to collateralize something,
house, savings, other property etc.This is how I have done all projects so far.
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17
A2. Banks. Big Banks. Wells Fargo offers a
“Renovation Loan” that is designed for our type of work. They loan 80% of ARV
for non owner occupied. (90% for owner occupied) This loan is offered at their mortgage offices, not in the regular
branches. It is at favorable rates but has some fees, appraisal, inspections etc. This loan takes 30 to 45 days to process so offer
accordingly.
The required cost breakdowns for appraisal and inspections are good exercises for
beginners. They will help keep you safe.
This loan is unique in that it is both “construction” and “take-out” in one
package. Great if you have a project you want to live in.
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A3. Hard Money Loans“Hard Money” isn’t as hard as it sounds. It may be the perfect solution for getting
started, when collateral is not available.
True Hard Money, doesn’t care about your credit or savings. The loan is made totally
on the merit of the property. (They will take the property if you dont pay)
So less paperwork and inspections are required.
BrookView Financial caters to renovators 4-5 points, 15% interest.
Getting qualified is a good exercise.
(You want to graduate off of this type of funding ASAP)
(The prequalification letter is valuable for offering)
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19
A.4 Private Money, Investor, (for a portion of profits)
There are thousands of people who have funds that are earning 2 to 4 %. Or less.
50 - 50 split is typical but not mandatory
Grant deed can be with you or your investor.
Do the math. This scenario may be the worst choice for you and the best for your money
partner.
This may be the easiest investor to findBecause it is easiest to explain and understand.
Note: If you overspend and the profit is zeroThe profit split is zero.
A.4 Private Money, Investor, (for a portion of profits)
There are thousands of people who have funds that are earning 2 to 4 %. Or less.
50 - 50 split is typical but not mandatory
Grant deed can be with you or your investor.
Do the math. This scenario may be the worst choice for you and the best for your money
partner.
This may be the easiest investor to findBecause it is easiest to explain and understand.
Note: If you overspend and the profit is zeroThe profit split is zero.
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20
A.5 Private Money Investor (for interest only)
9% to 12% interest only is typicalSome lenders will want points
Investor security can be secured by placing the property in the name of the investor by
grant deed.Multiple investors of this type should be
cultivated.With multiple investors, you will shop
without pressureThey keep their money ready
You find the dealThey wire funds to the escrow company.
You renovate and sell the projectThey are paid their interest.
You keep the rest.(If there is no “rest” they still get their
percentage.)(This is what I will do if I run out of bank
money at 6%)
A.5 Private Money Investor (for interest only)
9% to 12% interest only is typicalSome lenders will want points
Investor security can be secured by placing the property in the name of the investor by
grant deed.Multiple investors of this type should be
cultivated.With multiple investors, you will shop
without pressureThey keep their money ready
You find the dealThey wire funds to the escrow company.
You renovate and sell the projectThey are paid their interest.
You keep the rest.(If there is no “rest” they still get their
percentage.)(This is what I will do if I run out of bank
money at 6%)
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21
A6. Credit Cards. Commercial cards usually go up to $50,000. You can
get several.
It’s a good idea to have these in the background in case other sources dry up
or dont come thru.
Google “Commercial Credit Cards”
Or see Cardratings.com
Look for introductory rates and
check writing capabilities.
A6. Credit Cards. Commercial cards usually go up to $50,000. You can
get several.
It’s a good idea to have these in the background in case other sources dry up
or dont come thru.
Google “Commercial Credit Cards”
Or see Cardratings.com
Look for introductory rates and
check writing capabilities.
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22
A7. Many people have money in
IRA and 401k accounts that are earning 0% or less. This money is not normally available for
investment in Real Estate.
But
If certain custodians are selected, for “Self Directed IRA’s”
the money can be invested in real estate.
(Subject of another class)Google it. And get professional
advice.
A7. Many people have money in
IRA and 401k accounts that are earning 0% or less. This money is not normally available for
investment in Real Estate.
But
If certain custodians are selected, for “Self Directed IRA’s”
the money can be invested in real estate.
(Subject of another class)Google it. And get professional
advice.
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23
A8. HELOC Home Equity Line of
Credit.
You only pay for the interest you use.
Check around. The rates and terms vary
greatly
Currently, Credit Unions seem to be the
best source.Golden One may be a
good source.
A8. HELOC Home Equity Line of
Credit.
You only pay for the interest you use.
Check around. The rates and terms vary
greatly
Currently, Credit Unions seem to be the
best source.Golden One may be a
good source.
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24
Q. Do I need the money or the deal
first?A. This is a classic chicken and egg question. You need them both. Work on securing both. Whichever shows up first will
speed the other’s arrival.
If you find the right deal before your funding is totally
secured:
1. It will heat up the search for money.
2. A real deal will be of more interest to the people you have
been talking to than all the hypotheticals you have been
talking to them about!
A. This is a classic chicken and egg question. You need them both. Work on securing both. Whichever shows up first will
speed the other’s arrival.
If you find the right deal before your funding is totally
secured:
1. It will heat up the search for money.
2. A real deal will be of more interest to the people you have
been talking to than all the hypotheticals you have been
talking to them about!
(= It Doesn’t Matter)
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25
Q. Can I lose my earnest money
doing this?A. Yes. This is for big boys and girls.
Be responsible.Remember to put your “get out clauses” in
place And be careful of your time lines.
Standard inspection time in California is 17 days.
“Approval of my partner” adds additional option
if you feel you need it. I have only used the inspection clause.
(Banks will play hardball and keep your earnest money if you go past your inspection period and then cancel)
A. Yes. This is for big boys and girls. Be responsible.
Remember to put your “get out clauses” in place
And be careful of your time lines.
Standard inspection time in California is 17 days.
“Approval of my partner” adds additional option
if you feel you need it. I have only used the inspection clause.
(Banks will play hardball and keep your earnest money if you go past your inspection period and then cancel)
SavingThe PlanetOne HouseAt A TimeGreenEarthEquities.Com © 2009 1
26
A2. More protection. Use a photocopy of the check as long as
you can.Negotiate the time before it
becomes “live”To be as long as you possible.
A3. “upon final acceptance” can mean when all contingencies are
removed. Including even contingency upon financing.
If you negotiate it that way.
Everything is negotiable.
You have not if you ask not.
A2. More protection. Use a photocopy of the check as long as
you can.Negotiate the time before it
becomes “live”To be as long as you possible.
A3. “upon final acceptance” can mean when all contingencies are
removed. Including even contingency upon financing.
If you negotiate it that way.
Everything is negotiable.
You have not if you ask not.
The Energy Wise Investor’sOptions
1. Do all the work yourself
2. Do none of the work yourself
3. Somewhere in the middle.
(Do some work if you are qualified,
and want to.)
My choice has been to do no work with tools, even though I
would enjoy it.
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28
Questions ThatNeed Answers!Questions ThatNeed Answers!
Do I need to be
a Contractor ?Do I need to be
a Contractor ?
Don’t I need a lot of cash ?
Don’t I need a lot of cash ?
How about my “Bruised” Credit?
How about my “Bruised” Credit?
Do I need to become a Realtor?
Do I need to become a Realtor?
I have no clue about Pascals: How much do I need to know?
I have no clue about Pascals: How much do I need to know?
Design: What’s That? I think
green and blue go good together
Design: What’s That? I think
green and blue go good together
I dont think it w
ill
work in my area.
I dont think it w
ill
work in my area.
Creative
Financing?
Cant you go
to jail for
that?
Creative
Financing?
Cant you go
to jail for
that?
I’ve never worked in
Construction. What about me?
I’ve never worked in
Construction. What about me?
Is it Too Late?Is it Too Late?
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29
7 Skills Of The Energy-Wise House Flipping Investor
1. Home Performance, Energy Basics:2. Real Estate Basics3. Financing Basics
4. Construction Basics5. Design & Decorating Basics6. Working with Contractors
7. Building & Working With a Team
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Q. How Much Expertise Is Required In These Areas?
A. Full Journeyman or Practitioner Expertise is not needed in any of the 7 Skills.
If you have advanced skills in any of the areas, that’s an extra bonus for you.
(unless you focus too intently on your specialty and neglect your main job which is:
Facilitator and Team Leader
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31
Remember your other #1 job
Finding the Next Deal!You’ll never retire from just one deal nor will you build a solid team which is giving you “wholesale pricing” and top performance unless you keep them consistently busy.
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Q. Is there anything more important than these
7 Skills?A. Yes. There are several “Mind Sets” or “Paradigms” that are essential. There are
also a set of learnable Habits that can be mastered. Failure to embrace these Mindsets,
Paradigms and Habits will result in failure of the enterprise, or most probably a Failure to Launch
and the enterprise will never get started.
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MindSet #1I Can Do It.
Of Course I Can Do It!This is a belief that started a long time ago and colors the way you look at life. Its corollaries
are:I can do anything I put my mind to.
I’ll do whatever it takes.I’ll get up early and stay up late. I dont
care. After I decide to go for it, I will not be denied. I may work for weeks or months without pay or evidence of success but it
will all be worth it.
This is a belief that started a long time ago and colors the way you look at life. Its corollaries
are:I can do anything I put my mind to.
I’ll do whatever it takes.I’ll get up early and stay up late. I dont
care. After I decide to go for it, I will not be denied. I may work for weeks or months without pay or evidence of success but it
will all be worth it.
133
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34
MindSet #2Profits vs Paychecks
This is a hard one for some people who have worked for a regular paycheck for a long time.
I remember a friend who had gotten his Contractor’s License and then I helped him get a Contract to do some work. He got into it a ways and the customer wanted something re-
done. My friend said, “I cant do that, I wouldn’t be making any money.”
He had “gotten the gear” of a business person, but not the mindset of profits rather
than paychecks. Sadly he is still an unhappy, unemployed employee, thinking about doing
this business.
This is a hard one for some people who have worked for a regular paycheck for a long time.
I remember a friend who had gotten his Contractor’s License and then I helped him get a Contract to do some work. He got into it a ways and the customer wanted something re-
done. My friend said, “I cant do that, I wouldn’t be making any money.”
He had “gotten the gear” of a business person, but not the mindset of profits rather
than paychecks. Sadly he is still an unhappy, unemployed employee, thinking about doing
this business.
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The Market Has Changed!(End of 2009)
1. There is a Feeding FrenzyEspecially on REOs
2. Banks are now receiving full price offers and above
full price
3. Multiple Offers on all REO sales
This is Way Different than it was 3 months ago....
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Questions We Must Ask
1. Is this just local?
2. Is this a blip on a continuing slide or the beginning of the
big ride back up?
3. Is it “Too Late” to find good deals?
4. Have the formulas changed?
5. What other strategies should be considered with this
new market?
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Remember:Principles Dont
Change!1. Principles are Universal
like Gravity
2. Beware of anyone who has dicovered a “New Principle”
(and is selling CD’s and Seminars about it)
3. Strategies ChangePrinciples Remain Constant.
4. Let’s sort thru our teaching,Separate the Principles from
the Strategies and....
1. Principles are Universal like Gravity
2. Beware of anyone who has dicovered a “New Principle”
(and is selling CD’s and Seminars about it)
3. Strategies ChangePrinciples Remain Constant.
4. Let’s sort thru our teaching,Separate the Principles from
the Strategies and....
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Sell Price - Buy Price = $100K
(simple is always best)
Breakdown of Dave’s Simple Formula
Wow Package = $20,000Energy Package = $20,000Done Package = $20,000
=> Gross Margin = $40,000Costs = (Utilities, Insurance, Interest, Commission, Marketing, Closing Costs
and Oops! Factor) = $20,000
Target Net = $20,000
Breakdown of Dave’s Simple Formula
Wow Package = $20,000Energy Package = $20,000Done Package = $20,000
=> Gross Margin = $40,000Costs = (Utilities, Insurance, Interest, Commission, Marketing, Closing Costs
and Oops! Factor) = $20,000
Target Net = $20,000
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Sell Price - Buy Price = $100K
Q. With the changing market, can we still find deals like this? with
$100k spread so we can get in and out and earn our profit?
A. Yes, Just last week I got an offer accepted in my target
neighborhood for the lowest price I’ve ever paid.
If the project doesn’t have close to this spread after final negotiations,
it is best to just pass on it.
Q. With the changing market, can we still find deals like this? with
$100k spread so we can get in and out and earn our profit?
A. Yes, Just last week I got an offer accepted in my target
neighborhood for the lowest price I’ve ever paid.
If the project doesn’t have close to this spread after final negotiations,
it is best to just pass on it.
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27 Principles That Haven’t Changed
1. Find an area and stay in it. Improving the
neighborhood as you go. Creating your own comps
Assisting Appraisers to justify their appraisals.
2. In and Out Quickly
3. Minimize hourly labor to control your costs.
4. Know your exit before you enter.
1. Find an area and stay in it. Improving the
neighborhood as you go. Creating your own comps
Assisting Appraisers to justify their appraisals.
2. In and Out Quickly
3. Minimize hourly labor to control your costs.
4. Know your exit before you enter.
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Principles That Haven’t Changed
5. Pre Sold is Good
6. Staging works if you need it.
7. The Wow! Sells the house.
Energy Geeks get used to it.
8. Stay in the Blue to collect the Green.
(Blue Collar Neighborhoods that appeal to first time buyers work well for our
strategy)
9. Stay out of War Zones
5. Pre Sold is Good
6. Staging works if you need it.
7. The Wow! Sells the house.
Energy Geeks get used to it.
8. Stay in the Blue to collect the Green.
(Blue Collar Neighborhoods that appeal to first time buyers work well for our
strategy)
9. Stay out of War Zones
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One Way To Sell Green!
Well, OK. It’s got those Energy Stars and
Everything I’ve ever heard of….
Oh,Honey, I love it! Let’s buy this one!
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Principles That Haven’t Changed
10. A good realtor is essential on the front end. Among other things they will
provide accurate CMA reports so you can know
what your sell price is before you begin.
If your realtor doesn’t want to run CMA reports per your requests, they are not the
right realtor for you.
11. This work is simple (But not Easy)
10. A good realtor is essential on the front end. Among other things they will
provide accurate CMA reports so you can know
what your sell price is before you begin.
If your realtor doesn’t want to run CMA reports per your requests, they are not the
right realtor for you.
11. This work is simple (But not Easy)
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Principles That Haven’t Changed
12. We are looking for Ugly Houses
The Uglier the BetterEven more so now with the
current feeding frenzy among investors.
13. Dont go cheap on the Wow! or assume that buyers can
visualize what you are visualizing.
14. Use your first project as a show room to sell your second
one.
15. The System Is The Solutioneliminate surprises.
12. We are looking for Ugly Houses
The Uglier the BetterEven more so now with the
current feeding frenzy among investors.
13. Dont go cheap on the Wow! or assume that buyers can
visualize what you are visualizing.
14. Use your first project as a show room to sell your second
one.
15. The System Is The Solutioneliminate surprises.
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Principles That Haven’t Changed
16. 5 Olympic RingsBuy, Design, Build, Market, Sell it Right. Do all 5 and you win the
gold.
A miss step at any point can rob you of your gold.
17. You really can sell your projects without a realtor’s services.
(Last week’s interview with Ron Roberts)
( and pocket most of the savings)
18. Have multiple exit strategies. You may need them.
16. 5 Olympic RingsBuy, Design, Build, Market, Sell it Right. Do all 5 and you win the
gold.
A miss step at any point can rob you of your gold.
17. You really can sell your projects without a realtor’s services.
(Last week’s interview with Ron Roberts)
( and pocket most of the savings)
18. Have multiple exit strategies. You may need them.
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Principles That Haven’t Changed
19. Dont quit your day job. This is a perfect opportunity to do
on the side.A good routine is to stop by on your way to or from work, or
both, and communicate with your contractors by email and cell
phone with an occaisional face to face visit.
20. Original Buying Formula Still Holds.
Max Price = ARV * .70 - Repairs(After Repaired Value)It wont work in every
neighborhoodfind one that it will work in.
19. Dont quit your day job. This is a perfect opportunity to do
on the side.A good routine is to stop by on your way to or from work, or
both, and communicate with your contractors by email and cell
phone with an occaisional face to face visit.
20. Original Buying Formula Still Holds.
Max Price = ARV * .70 - Repairs(After Repaired Value)It wont work in every
neighborhoodfind one that it will work in.
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Principles That Haven’t Changed
21. After you get a project in escrow, dont forget your “due diligence” (Inspections and further negotiations = The
HairCut)
22. Dont waste time signing offers
Get digital.
23. Plan on offering a lot. Babe Ruth struck out more
than anyone.
24. Dont get emotionally involved in a project during negotiation. Keep it a math
problem
21. After you get a project in escrow, dont forget your “due diligence” (Inspections and further negotiations = The
HairCut)
22. Dont waste time signing offers
Get digital.
23. Plan on offering a lot. Babe Ruth struck out more
than anyone.
24. Dont get emotionally involved in a project during negotiation. Keep it a math
problem
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Principles That Haven’t Changed
25. Cash is King. And Quick is a close second. Dont load up your offers with lots of contingencies and “get out” clauses. You only
need one.
26. Eliminate your competition by producing a unique product. This includes the Wow!, Done & Energy Packages. There really is nothing like it in our market.
So the houses sell quickly.
27. Build the Plane in Flight!A moving car is easier to steer.
Get Started.
25. Cash is King. And Quick is a close second. Dont load up your offers with lots of contingencies and “get out” clauses. You only
need one.
26. Eliminate your competition by producing a unique product. This includes the Wow!, Done & Energy Packages. There really is nothing like it in our market.
So the houses sell quickly.
27. Build the Plane in Flight!A moving car is easier to steer.
Get Started.
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Maybe The Market Hasn’t Changed That Much.... And
Isn’t Going To Anytime Soon.
Check Out The Next Slide. The Bottom Line Is In Yellow.
Does This Mean That Energy Wise House Flipping Will Continue To Be A Viable Business
For The Foreseeable Future?
Is It A Business For You?
Check Out The Next Slide. The Bottom Line Is In Yellow.
Does This Mean That Energy Wise House Flipping Will Continue To Be A Viable Business
For The Foreseeable Future?
Is It A Business For You?
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WSJ.com Sept 24, 2009
The Foreclosure Pain May Drag on for Years By James R. Hagerty
Delays in dealing with home foreclosures are stretching out the pain for the U.S. housing market, as we reported in Wednesday’s Journal. That has stirred lots of debate over whether it is better for the nation to face the pain of millions of foreclosures immediately – to get it over with fast — or to draw the process out over several years in hopes that the economy and housing demand will recover.It looks like we’re taking the latter course, for better or worse.The foreclosure process takes about twice as long as it used to for a variety of reasons, including efforts to modify loans to keep borrowers in homes, staffing shortages at loan servicers, bankruptcy filings and a “strategic rationale” by lenders hoping that home prices will recover, .......While efforts to modify loans will help some borrowers, she says, they mostly will amount to “kicking the can down the road.”..............Henry Fishkind, an Orlando-based housing economist, says some banks tell him they “are holding back [foreclosed-home] inventory” to avoid depressing prices any more than necessary. “It’s in their interest” to avoid flooding the market, and regulators haven’t forced them to do so, he says. That suggests that the backlog of homes headed for foreclosure will be stretched out over several years. That will be less disruptive to the housing market, Dr. Fishkind says but may mean that it takes longer for financial institutions to shed dud assets and regain the health required to extend new credit.In some of the former bubble markets, including Florida, (& California, adds DJR) the problem will be aggravated by looming defaults on option adjustable-rate mortgages ............
Is This Glass Half Full or Half Empty?Is This Good News or Bad News?
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Energy Wise Renovation of Foreclosed Homes
Is In The Confluence of:Real Estate - Building Performance -
Remodeling
Remodeling
Green &Building
PerformanceReal
Estate
3 Disciplin
es
3 Disciplin
es
1Sweet Spot
1Sweet Spot
&
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NOTICE:The Sweet Spot Is Outside Of The
Mainstream ofRemodeling, Real Estate, & Building
Performance
Remodeling
Green &Building
PerformanceReal
Estate
Sweet Spot
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Each Of These DisciplinesHave Essential Information
BUT:
Remodeling
Green &Building
Performance
RealEstat
e
Sweet
Spot
Energy-Wise Renovating House Flipping Investors
Must Find the SWEET SPOT
In Each Discipline
And DISREGARD theInappropriate
“Common Wisdom” of Each!
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Summary
Remodeling
Green &Building
Performance
RealEstat
e
Sweet
Spot
In Sum, because you are an Investor, not a
Contractor
& Because you are blending
3 disciplines, not just one,
You are free of many constraints, and can do the right thing because you know it is the right
thing to do.
But as you exercise your freedom, Just know, you
may be branded a HERETIC by your
mainstream friends.
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Summary
Remodeling
Green &Building
Performance
RealEstat
e
Sweet
SpotIt’s OK
They dont burn us at the stake anymore.
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Deliver More For Less?
Delivering More For Less:
It sounds like a violation of the Second Law of Thermodynamics
Or a Crazy Sales Pitch
Actually It’s neither
It’s just about all the things you Dont Have To Do when
you work on Foreclosed Homes
(That are Empty and You Own)
See The Comparison on the next slide. Compare the
percentages to your current business model
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Why would you
want to do this?
Why would you
want to do this?
Cost & Benefit Analysis
Marketing To Acquire Customer
25% 10,000
Sales Commission 10% 4,000
Premium for Occupied Working
10% 4,000
Overhead & Profit 30% 12,000
Contracted Work 10,000
Total Contract 40,000 40,000
Marketing To Acquire Customer
2% 800
Sales Commission (pro-rata) 10% 4,000
Premium for Occupied Working
0 0
Overhead & Profit 30% 12,000
Contracted Work 23,200
Total Contract 40,000 40,000
Conventioal Contracting To Residential Customer
Energy-Wise Renovation of Foreclosure by Investor
Marketing To Acquire Customer
25% 10,000
Sales Commission 10% 4,000
Premium for Occupied Working
10% 4,000
Overhead & Profit 30% 12,000
Contracted Work 10,000
Total Contract 40,000 40,000
When You Could
Do This?
When You Could
Do This?
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What’s Missing?These Parts of “NORMAL”
Contracting are missing from Energy Wise House Flipping
Big Overhead including:Marketing, up to 25%
Sales Commissions 10%+Working in customer’s homes
Working with “Programs”Computer Modeling or
Ratings*Partial Home Performance
Projects*Problem Homeowner
Headaches*Lawsuits*
Labor Board Complaints*
*How Can This Be? >>>
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* The Rest Of The Story No Programs, Incentives,
Rebates or Tax Credits Required.
Computer Modeling & Ratings are unnecessary - get in the
way.
No Partial Jobs. All Projects are as complete as I want
them to be.
No Problem Homeowners because the homes are
always empty.
No legal problems because no
“new home” promises are made
No Labor problems because there
is no “labor” in this method. (Labor works for the
Subcontractor)
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Some Choose To Be Different
If you choose to become an Energy Wise Renovating,
House Flipping Investor who works on your own properties
and does the right thing because its the right thing to
do......
You will be one of a very small Army.
(the regular House Flipping Army is much larger)
These concepts have not been tried and found lacking.
They have mainly just not been tried
I have tried them and they have proven to be Ideas Who’s Time Has
Come
If you choose to become an Energy Wise Renovating,
House Flipping Investor who works on your own properties
and does the right thing because its the right thing to
do......
You will be one of a very small Army.
(the regular House Flipping Army is much larger)
These concepts have not been tried and found lacking.
They have mainly just not been tried
I have tried them and they have proven to be Ideas Who’s Time Has
Come
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For Years There’s
Been One Way:
Maybe It’s Time For a New Way?
Think about it.
For Years There’s
Been One Way:
Maybe It’s Time For a New Way?
Think about it.
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All The Testing & Certification You
Need.... And None That You Dont
All The Testing & Certification You
Need.... And None That You DontDisclaimer:
The Ideas presented here are for a noble experiment:
“Delivering Excellent Home Performance Projects using only our own properties, purchased right and renovated with the
concepts developed on this site and implemented purely
in the American Free Enterprise System.
They may not be appropriate for “Home Performance
Contracting” as normally practiced
Disclaimer:The Ideas presented here
are for a noble experiment:
“Delivering Excellent Home Performance Projects using only our own properties, purchased right and renovated with the
concepts developed on this site and implemented purely
in the American Free Enterprise System.
They may not be appropriate for “Home Performance
Contracting” as normally practiced
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Contractor, Rater, or Energy-Wise Investor?
The “Rules” and Best Practices for these disciplines are
different.
An assumption that is true in one discipline can be false or
irrelevant in another area.
Most of the assumptions that you’ve heard are designed for contractors and their symbiotic cousins, the raters, contracting with homeowners in incentive
driven programs.
(and they are mostly true in that context)
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Quick Review Of G.E.E. Principles
1. Work only on our own properties,
2. Select an area and stay in it.
3. Sell to first time home buyers
4. Complete 3 package system:
Energy, Wow! & Done5. Sub-Contract Everything
6. Systemize Everything7. Negotiate Hard @purchase8. Control the Comps, see#2
9. Influence the appraisal, see #2
10. Demand Wholesale Pricing11. In & Out Quickly
12. Do everything short of Renewables, almost everytime.13. $100K spread 20-20-20-20-
20
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Energy GuaranteesBecause of Base Load and
Lifestyle issues that we dont control, these can turn a happy customer into an unhappy customer. We
choose to stay away
Instead we offer to pay 1/2 of the Utility
Bills for 2 years.
This is enough to leave all the competition behind and
there is nothing to argue about. They turn in the
bills. I write a check. It’s a good way to stay involved
with my customer. And collect referrals etc.
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Multiple Streams Of Income
I am not suggesting that people torch their day job and burn their bridges to
start a new life ONLY working on their own projects.
(I still have the residue of a day job or two)
But dont miss the beauty of Multiple Streams of Income.
When one dries up, another will keep you
supplied.
I am not suggesting that people torch their day job and burn their bridges to
start a new life ONLY working on their own projects.
(I still have the residue of a day job or two)
But dont miss the beauty of Multiple Streams of Income.
When one dries up, another will keep you
supplied.
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Can I Hybridize These Concepts?
Absolutely...It’s America.
The beauty of working with no incentive programs (and the costs and constraints that
come with them) is that you can add any of these things
back in to your formula when you decide that it will benefit
you.
Be cautious, however. Give away enough of your freedom
or compromise on “Do Everything Everytime” and what you will have will be a totally different business.
You will no longer be doing the right thing because it’s the
right thing to do
Absolutely...It’s America.
The beauty of working with no incentive programs (and the costs and constraints that
come with them) is that you can add any of these things
back in to your formula when you decide that it will benefit
you.
Be cautious, however. Give away enough of your freedom
or compromise on “Do Everything Everytime” and what you will have will be a totally different business.
You will no longer be doing the right thing because it’s the
right thing to do
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What Could Go Wrong?Along with the money of
programs, comes the control and
additional overhead.The biggest blessing I’ve found in EnergyWise Renovation as an Investor is the Freedom to Do
Good & Complete Home Performance.
If you modify too far from the concepts presented here, you may find yourself no longer
doing the right thing because it’s the right thing to do.
Instead you’ll be doing it to fit into some program or just to
keep the overhead paid.
I dont wish that for you, my friend.
Along with the money of programs, comes the control
and additional overhead.
The biggest blessing I’ve found in EnergyWise Renovation as an Investor is the Freedom to Do
Good & Complete Home Performance.
If you modify too far from the concepts presented here, you may find yourself no longer
doing the right thing because it’s the right thing to do.
Instead you’ll be doing it to fit into some program or just to
keep the overhead paid.
I dont wish that for you, my friend.
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3405 E FedoraWorn Out T-111 Plywood Siding ($51,500)
3 Ton Condenser On Roof
3405 E FedoraWorn Out T-111 Plywood Siding ($51,500)
3 Ton Condenser On Roof
Fixing ProblemsBeing Creative
Outside The Box
= Fun
Fixing ProblemsBeing Creative
Outside The Box
= Fun
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We’ll see how foam blocks forced into the cavity between the batt and the plate
work...You probably have never seen this tried. I
hadn’t either.One of the benefits of working with
foreclosed homes is that you can try things. (like this whole job with the Ducted Mini
Split) I’ll let you know the CFMs of infiltration at the Test Out at the end.
We’ll see how foam blocks forced into the cavity between the batt and the plate
work...You probably have never seen this tried. I
hadn’t either.One of the benefits of working with
foreclosed homes is that you can try things. (like this whole job with the Ducted Mini
Split) I’ll let you know the CFMs of infiltration at the Test Out at the end.
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Solution to the worn out plywood.Additional 1 inch of foam plus stucco
Solution to the worn out plywood.Additional 1 inch of foam plus stucco
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Weeps must be left free to weep and flashing must slope down and away.Weeps must be left free to weep and flashing must slope down and away.
Stucco beingApplied over1 inch foamSheeting.
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Checking The ChargeNote 3 and 4 ton units on neighbor’s
homes.
Checking The ChargeNote 3 and 4 ton units on neighbor’s
homes.
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Close Up Of Motor, Blower & ElectronicsClose Up Of Motor, Blower & Electronics
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Remember you have to provide a condensate
Drain to the outside. (or pump, which we dont like because they have a tendency to
fail sooner or later)
Remember you have to provide a condensate
Drain to the outside. (or pump, which we dont like because they have a tendency to
fail sooner or later)
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Proud Papa in the Inventor’s WorkshopProud Papa in the Inventor’s Workshop
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Rogelio Covarrubias
Job Superintend
ent, checking out
the SEER Rating or the Fujitsu heat
pump.
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Smooth “Hard Pipe” and
gentle square to round
transitions minimize
friction loss and deliver
maximum air to the rooms.
This was our main concern
but these short, smooth ducts were our
solution.
Smooth “Hard Pipe” and
gentle square to round
transitions minimize
friction loss and deliver
maximum air to the rooms.
This was our main concern
but these short, smooth ducts were our
solution.
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2 Ways To Double The Cost
Of Your Project!
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But Wait! Why Would I Want
To Do Something Like That?
Maybe to stimulate the economy?
Maybe because you hadn’t run the numbers?
Maybe because “we’ve always
done it that way”
Whatever the reasonThousands of jobs cost
double what they could be produced for if they were
approached differentlyCurious?
That’s the Heroin, Right There
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#1. Participate In A Federal or Utility Funded
ProgramRecently I asked two
contractors who participate in Federally Funded Renovation
Programs,What are your costs if you did the same job inside and then
outside of the program?
One said, $70,000 in the program
$30,000 without the program
The other said $40,000 with it
& $20,000 without the program
Not a big study, but these are real contractors!
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#2 Contract With A Customer
90% of Construction Work is done by contracting with
customers. The Model generally
includes:1. 15-25% Marketing Costs2. 10% Sales Commission3. 10% Extra Work Around
Customer, (masking, booties etc)
4. 10% Extra Paperwork and Administration to deal with Customer and programs, rebates, warrantees etc.
IE 50% of the $ spent is not getting work done but
just getting ready and supporting getting the
work done.
Work Goes A Little Slower Working In Mrs Jones’s House
Work Goes A Little Slower Working In Mrs Jones’s House
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Those Aren’t The Only Solutions
The Concept of Multiple Streams of
IncomeHas become popular
and essential in recent years because of the
the instability of things we formerly believed to
be stable.
Contractors can have multiple streams too....
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OK, I’m Convinced. So How Do I Get Started?Top 10 Action
Points
1. Knowledge Is PowerEducate Yourself.
Bibliography:a. Flip by Davis &
Volanib. Real Estate &
Investing Seminars & Books.
(very expensive ones are available cheap on
eBay)
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Getting Started #22. Home Performance
Classes @ Utilities3.
GreenEarthEquities.com
(over 1000 pages of content on the blend
of Real Estate, Remodeling & Home Performance) (free)
4. Subscribe to Home Energy
Magazine, CPBCA & Build It Green
Newsletters etc.
Click Here &Read The BlogPosts
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Getting Started #35. Learn the Internet Tools, Google Earth, Bing, Cyberhomes,
Localetrends, ForeclosureRadar, etc see next week’s slides for a more complete
list.6. Start Building Your
Teama. Find The Right
Realtor. (this may take several attempts. See
Planetsavers University for tips on interviewing & other
team members)
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Getting Started #47. Sign up with your
Realtor to receive automatic filtered
listings in your email. (some MLS systems
call it a “portal”)8. Learn To Use The Comparative Market
Analysis (CMA)9. Pick your
neighborhoods and become an expert on
real estate there. Track listing and sales
prices. Visit Open Houses
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Getting Started #5
10. Begin lining up you finances so you
will be ready to make a Cash offer. This may mean a Small Local
Bank line of credit (my choice) or a Private Investor or a Hard
Money Lender. Wells Fargo Mortgage (not
bank) has a “Renovation Loan that
may be worth considering.
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“Paper Trade” Before Using
Live AmmunitionDid you notice that most of the Top 10 Getting Started List
was free or only a few dollars for a book or
subscription?You can go a long ways toward ensuring your success BEFORE you buy your first houseEducation is costly,
But Ignorance is even more costly
Did you notice that most of the Top 10 Getting Started List
was free or only a few dollars for a book or
subscription?You can go a long ways toward ensuring your success BEFORE you buy your first houseEducation is costly,
But Ignorance is even more costly
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1. Envelope
2. Comfort System
3. Health & Safety
4. Water
1. Envelope
2. Comfort System
3. Health & Safety
4. Water
The Four Pillars, Like The Legs Of The Eiffel Tower, All
Are Necessary
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1. All Six Sides2. Especially The Joints3. Includes Windows &
Doors4. Minimize Thermal Bridges & Bypasses
Proof is Blower Door& Infra-Red Camera
Final Proof is Utility Bill
1. All Six Sides2. Especially The Joints3. Includes Windows &
Doors4. Minimize Thermal Bridges & Bypasses
Proof is Blower Door& Infra-Red Camera
Final Proof is Utility Bill
#1. Build A Tight, Well Insulated Envelope & Prove
It.
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1. Properly Designed Ducts Tight & Well
Insulated2. Properly selected &
installed & tuned equipment.
Proof is Manual J, Manual D, Duct Blaster, Delivered
BTU’s& even room temperatures
= comfort & efficiencyFinal Proof is Utility Bill
1. Properly Designed Ducts Tight & Well
Insulated2. Properly selected &
installed & tuned equipment.
Proof is Manual J, Manual D, Duct Blaster, Delivered
BTU’s& even room temperatures
= comfort & efficiencyFinal Proof is Utility Bill
#2. Build An Efficient Comfort System & Prove It.
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1. CO testing (minimum)2. Filtration (more than Rock Stopper Standard
Filters)3 Ventilate On Purpose
Build It Tight - Vent It Right
Proof Is CO & other IAQ tests
& existence of Mechanical Ventilation System
Final Proof is Health & Safety
(less illness etc)
1. CO testing (minimum)2. Filtration (more than Rock Stopper Standard
Filters)3 Ventilate On Purpose
Build It Tight - Vent It Right
Proof Is CO & other IAQ tests
& existence of Mechanical Ventilation System
Final Proof is Health & Safety
(less illness etc)
#3. Ensure Health And Safety
& Prove It
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1. Heat Water Efficiently2. Minimize Waste of
WaterInside, (Showers, Dish &
Clothes Washing etc)Outside, (Landscaping)
Proof is Utility Bills & Water Bill
(Water Is The Next Crisis)
Energy Wise Investors Can Be Way Ahead Of
ContractorsWho seem to have to wait for Government Programs.Just Decide & Start Doing
It!
1. Heat Water Efficiently2. Minimize Waste of
WaterInside, (Showers, Dish &
Clothes Washing etc)Outside, (Landscaping)
Proof is Utility Bills & Water Bill
(Water Is The Next Crisis)
Energy Wise Investors Can Be Way Ahead Of
ContractorsWho seem to have to wait for Government Programs.Just Decide & Start Doing
It!
#4 Heat & Use Water Efficiently& Prove It
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A. There is a ton of Science and a Lifetime of Learning behind each of these 4 Basics of Home
Performance.
The Good News For Energy Wise House Flipping
Investors--
You Must Only Understand These
Basics and How They Interact.
There are scientists, technicians and
subcontractors for the details.
A. There is a ton of Science and a Lifetime of Learning behind each of these 4 Basics of Home
Performance.
The Good News For Energy Wise House Flipping
Investors--
You Must Only Understand These
Basics and How They Interact.
There are scientists, technicians and
subcontractors for the details.
Q. How Much BS (building science) Do I Need To Be
Successful?
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Q. What If I Dont Get It Perfect?
A1. Dont Worry About It.
Nobody Gets It Perfect!
A2. Perfection is a Moving Target
A3. Anything you do will
be an improvement
But on the other hand....
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Dont Worry........Too Much.
Let’s assume there are 33 items per package that
would all be done perfectly to get a 100% A+
If that were true you could still
miss 10 and get an A-
But some items are
CATASTROPHIC
Lets focus on 3.....
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Dont Cut These Corners
1. HVAC Sizing, Design & Tuning
2. HVAC Ductwork Sizing, Design, Sealing & Insulation3. Sealing before insulation
Also #3 can be tested by your HVAC Contractor if it is
done by Insulation Contractor
= HVAC = Not the place to skimp.
Does NOT mean spend big on
High SEER Equipment! (.....Discussion)
1. HVAC Sizing, Design & Tuning
2. HVAC Ductwork Sizing, Design, Sealing & Insulation3. Sealing before insulation
Also #3 can be tested by your HVAC Contractor if it is
done by Insulation Contractor
= HVAC = Not the place to skimp.
Does NOT mean spend big on
High SEER Equipment! (.....Discussion)
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The New Package That We
Must Add In 2010
Water!It’s the “Next Oil” or
The “Next Crisis In General”
Is the “Desert Look” the only way to save water?
Do you think your buyers would buy the project in the
next slide?
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[email protected]@prairie-gardens.com
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Another Part Of The Water Package
Water!This Toilet is
advertised to save 23,000 gallons per
year!
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All 3 Work Together
3 Package Strategy:
ENERGY
WOW!
DONE
Let’s Review The 3
Packages
(See PlanetSavers U on
site)
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Like Feeding A Pill To A Dog
Everything Green
and Energy Efficient
is the Pill.
The Granite
Counters and
Travertine is the
Dog Food. ... Dont
try it without the
Dog Food!
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The “Done!” Package
3 Package Strategy:
ENERGY
WOW!
DONE
Remember
They All Work Together!
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1. New Grass, front and back
(Buffalo Grass &Drip Irrigation forLow Water Usage)
2. New Sprinklers front and back
3. AutomaticSprinkler Clock
1. New Grass, front and back
(Buffalo Grass &Drip Irrigation forLow Water Usage)
2. New Sprinklers front and back
3. AutomaticSprinkler Clock
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4 New Roll Up Garage Door with windows
5. New Garage Door Opener
with controls..
4 New Roll Up Garage Door with windows
5. New Garage Door Opener
with controls..
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6. New Electrical Switches, Plugs &
Covers7. Outdoor Living
Option Covered Patio8. New or Renovated
Fence and Gates9. Other Landscaping
6. New Electrical Switches, Plugs &
Covers7. Outdoor Living
Option Covered Patio8. New or Renovated
Fence and Gates9. Other Landscaping
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10. New 30-50 year
comp roof
11. New (possibly relocated)
water heater
12. New 100 amp service
10. New 30-50 year
comp roof
11. New (possibly relocated)
water heater
12. New 100 amp service
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13. Grounding of all wiring.
14. Gutters as Necessary
15. Proper drainage
away from house.
13. Grounding of all wiring.
14. Gutters as Necessary
15. Proper drainage
away from house.
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16. Dash Coat or complete exterior paint
17. Premium Carpets
over 6 lb pad
16. Dash Coat or complete exterior paint
17. Premium Carpets
over 6 lb pad
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The “Energy” Package
3 Package Strategy:
ENERGY
WOW!
DONERemember
They All Work Together!
This Week:
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The Energy PackageThe Energy Package is
presented in the form of a List.
This would typically be perceived by our industry
as “Prescriptive”
(In some circles that is almost a swear word.)
We use a Prescriptive List with Performance Criteria.
It’s a Hybrid Prescriptive-
Performance approach.
...Capturing the best of both the Performance and
Prescriptive approaches
Good “performance” fromThis 1200 sf
“prescriptive” home
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The Hybrid Approach(Prescriptive Selection
WithPerformance Test Out)
Benefits of Prescriptive Methods:
Fast, Easy Selection of Scope of Work.
No money spent on testing and certifying means more to spend on caulking etc. (real home performance)
Works best on easy cookie cutter tract homes.
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The Hybrid Approach(Prescriptive Selection
WithPerformance Test Out)Benefits of Performance
Testing.(Especially testing OUT)
Selective Test Out proves that
Specific performance targets have been
delivered.
Full Diagnostics are needed throughout on Architectural
Wonders, and Historical Homes
(difficult & complicated)
On Easy Homes, We Simply Do The Right Thing and Test
Out
Like This...Like This...
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For Example:There’s a lot behind that 680 on the DG 700. It
means
1. The tightness targets have been met and
exceeded for the 1200 square foot home. (1 CFM
50 per square foot is a normal target)
2. The home is so tight that it needs Ventilation “On
Purpose” = a mechanical ventilation scheme.
3. We can rest assured that the inputs to our Manual J load calcs are correct or
better and the equipment will perform.
It didn’t matter that the items were
chosen and installed
prescriptively
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The Energy! Package1. New HVAC system, Stainless
Steel Heat Exchanger
(Exception: If the unit is less than 7 years
old and not grossly oversized.)
2. Manual J sizing, usually half of previous capacity
Equipment tested to deliver at least95% of BTU’s listed on the Name
Plate
3. New R-8 short mylar ducts buried in more insulationNew Low Static Registers
13 SEER 80% or MiniSplit Heat Pump.
See discussion on Facebook
Fan Page
13 SEER 80% or MiniSplit Heat Pump.
See discussion on Facebook
Fan Page
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The Energy! Package4. Manual D with tight
seal and test *(3% target vs 6% standard)
Flex duct stretched tightNew Low Static Registers
5. Extra Return Duct in Master Suite
Additional Door Undercuts in other bedrooms
*Mandatory by HVACContractor with Building Permit
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The Energy! Package6. New LoE2 windows
and Patio DoorsU Factor of .30
Non Metallic Spacer is a differentiator
7. Low E 140 at west windows
Solar Screens on the West
8. Deciduous Trees planted selectively
Chinese Elm & Chinese Pistachio are favorites
6. New LoE2 windows and Patio DoorsU Factor of .30
Non Metallic Spacer is a differentiator
7. Low E 140 at west windows
Solar Screens on the West
8. Deciduous Trees planted selectively
Chinese Elm & Chinese Pistachio are favorites
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The Energy! Package9. Shell Sealing of floor & ceiling with test (1 cfm50
per square foot is maximum)
10. Attic Insulation (cellulose) to R-50
11. Occupancy sensors& Motion Sensors
12. Gas Stove and Dryer options
9. Shell Sealing of floor & ceiling with test (1 cfm50
per square foot is maximum)
10. Attic Insulation (cellulose) to R-50
11. Occupancy sensors& Motion Sensors
12. Gas Stove and Dryer options
(Needs A LOT
More!)
(Needs A LOT
More!)
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The Energy! Package13. Ceiling Fans at all
sleeping and living rooms
14. Panasonic Ventilation with controls
(for sure if leakage is under 1/ sq ft)
(Runs 24 - 7 No owner controls)
If leakier, Panasonic Bath Fan with Tamarack Controller is
minimum
15. Owners Manual to operate their new home
13. Ceiling Fans at all sleeping and living rooms
14. Panasonic Ventilation with controls
(for sure if leakage is under 1/ sq ft)
(Runs 24 - 7 No owner controls)
If leakier, Panasonic Bath Fan with Tamarack Controller is
minimum
15. Owners Manual to operate their new home
Panasonic FV-04VE1 WhisperComfort Spot Energy Recovery Ventilator (Marketed as “Spot” ventilators but at 20 or 40 cfm, they can do small homes.) djr
Panasonic FV-04VE1 WhisperComfort Spot Energy Recovery Ventilator (Marketed as “Spot” ventilators but at 20 or 40 cfm, they can do small homes.) djr
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The Energy! Package16. The “We Pay Half” program makes for a
compelling offer. This costs us less than participating in all the various ratings and
certifications. It keeps us in touch with our customer and keeps them referring their
friends. We offer this on most homes. Here is from the brochure of our most recent sale
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The HVAC ContractorYou will notice that most of the
items in the Energy Package are or can be done by the HVAC
Contractor
(Size and select the equipment and the ducts and registersTest out the ducts, delivered
BTUs, whole house infiltration and CO Safety)
Dont skimp here. You get what you pay for
Look for CBPCA trained, BPI certified
They should LOVE Home Performance...Like Gary
...Not be forced into it
You will notice that most of the items in the Energy Package are
or can be done by the HVAC Contractor
(Size and select the equipment and the ducts and registersTest out the ducts, delivered
BTUs, whole house infiltration and CO Safety)
Dont skimp here. You get what you pay for
Look for CBPCA trained, BPI certified
They should LOVE Home Performance...Like Gary
...Not be forced into it
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The “Wow!” Package
3 Package Strategy:
ENERGY
WOW!
DONERemember
They All Work Together!
This Week:
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Wow! Package Drill Down1. Granite Counters
at Kitchen & Baths2 & 3 foot blanksNot from “Slabs”
It’s what buyers want
2. Extra Deep Stainless Steel Sink
8 or 9 inches2 basins, not 1 or 3
3. Designer Spray Faucet
1. Granite Counters at
Kitchen & Baths2 & 3 foot blanksNot from “Slabs”
It’s what buyers want
2. Extra Deep Stainless Steel Sink
8 or 9 inches2 basins, not 1 or 3
3. Designer Spray Faucet
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4. Italian glass tile backsplash
Or granite backsplash
5. Under Counter LightingEspecially with glass tile
6. All wood Maple Cabinetry
No Particle Board = Less VOC’s
7. Crown Molding &Tall Base
Crown at Din Rm, Liv Rm, MBR
Sometimes Chair Rail at Dining Room
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8. All new panel doors & stepped trim
9. New Front Door with Art Glass
Look for Sale Prices
10. Tile & Travertine floorsTravertine if special pricing.
11. Engineered Wood Laminate Floors
Buyers aren’t excited soOnly by request
8. All new panel doors & stepped trim
9. New Front Door with Art Glass
Look for Sale Prices
10. Tile & Travertine floorsTravertine if special pricing.
11. Engineered Wood Laminate Floors
Buyers aren’t excited soOnly by request
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12. Designer tile and faucets at baths
Hardie Backer behind
13. Chair Rail, Wainscoating
& 3 tone paintTypically 1/4 color @ ceiling
1/2 color @ topFull color @ bottom
14. Designer Light fixtures & ceiling fans(With CFLS &
Occupancy Sensors)
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15. All New Stainless Steel Appliances
16. Newly Textured Ceilings
(no more popcorn)
17. Carpet & Pad with quality
you can feel.2 grades up from FHA6 or 8 lb pad vs 4lb std
18. Sculptured Exterior Trim at Windows & Doors
15. All New Stainless Steel Appliances
16. Newly Textured Ceilings
(no more popcorn)
17. Carpet & Pad with quality
you can feel.2 grades up from FHA6 or 8 lb pad vs 4lb std
18. Sculptured Exterior Trim at Windows & Doors
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Find Your Niche
Scatter GunVs
Laser Accuracy
Clear Definition of your target will maximize your
success!
Scatter GunVs
Laser Accuracy
Clear Definition of your target will maximize your
success!Dont Buy Just AnythingDont Buy Just Anything
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Neighborhood1. People want to live there. (Not
Detroit right now.... Or some areas of
your city)
CMA from Realtor
Neighbors are spending money on
renovations
1. People want to live there. (Not
Detroit right now.... Or some areas of
your city)
CMA from Realtor
Neighbors are spending money on
renovationsFind It, Claim It, Master It, Stay There
& Reap The Benefits Of Your Focus!
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Desirability Factors
1. School Reputation
2. Anchors such as Parks, & Shopping
Centers
3. Close to Jobs
4. Transitioning Up, Not Down
1. School Reputation
2. Anchors such as Parks, & Shopping
Centers
3. Close to Jobs
4. Transitioning Up, Not Down
LocaleTrends.comFresno County School
Test Scores
LocaleTrends.comFresno County School
Test Scores
My NeighborhoodMy Neighborhood
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Target House Specs
1. 3 or 4 Bedrooms(2 Bedrooms wont have the “spread” you are looking for
2. 2 Baths(1 Baths wont have the spread or the
quick sale)
1. 3 or 4 Bedrooms(2 Bedrooms wont have the “spread” you are looking for
2. 2 Baths(1 Baths wont have the spread or the
quick sale)
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Target House Specs3. 30 to 50
year old Tract Homes
(Older will have more difficult
problems, Newer wont have enough problems for you to build value and
deserve your price)
3. 30 to 50 year old Tract
Homes(Older will have more difficult
problems, Newer wont have enough problems for you to build value and
deserve your price)
Before
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Target House Specs
4. 1000 to 1500 sq ft
5. Pools are OK(most investors dont like them =
better deals)
6. The more beat up the
better (for you)
4. 1000 to 1500 sq ft
5. Pools are OK(most investors dont like them =
better deals)
6. The more beat up the
better (for you)
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Target House Specs
7. The “Worst house on a good
block” is a good thing
to look for
One or two Board ups
Is good. More is suspect
7. The “Worst house on a good
block” is a good thing
to look for
One or two Board ups
Is good. More is suspect
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Stay Away From1. War Zones, lots
of graffiti, other hints of gang
activity.
2. Busy Streets4 lanes
3. Obsolete Floor Plans
(thru a bathroom to get to a bedroom)
1. War Zones, lots of graffiti, other
hints of gang activity.
2. Busy Streets4 lanes
3. Obsolete Floor Plans
(thru a bathroom to get to a bedroom)
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Stay Away From
4. Too small a Master Bedroom. 12x12 is good.
Much less will limit buyers as new
bedroom furniture wont fit.
5. Flight Paths, Freeways & Hi Tension Lines
4. Too small a Master Bedroom. 12x12 is good.
Much less will limit buyers as new
bedroom furniture wont fit.
5. Flight Paths, Freeways & Hi Tension Lines
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Define Your Buyer
First Time Buyer.
Hopefully FHA
Priced where payments will be
only a little more than rent.
=$150K to $250KSell price
First Time Buyer.
Hopefully FHA
Priced where payments will be
only a little more than rent.
=$150K to $250KSell priceForeclosureRadar.com estimates rents
Rentometer.com publishes exact rentsForeclosureRadar.com estimates rentsRentometer.com publishes exact rents
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Define Your BuyerIf you are moving
into the large pool of buyers with “bruised credit” with owner assisted financing, (Lease option etc.)
Define your acceptable bruises before you offer for
sale.
Stay away from emotional decisions.
If you are moving into the large pool of buyers with “bruised credit” with owner assisted financing, (Lease option etc.)
Define your acceptable bruises before you offer for
sale.
Stay away from emotional decisions.
See “8 Exit Strategies” &“Know The End
From The Beginning”In PlanetSavers U at
GreenEarthEquities.com
See “8 Exit Strategies” &“Know The End
From The Beginning”In PlanetSavers U at
GreenEarthEquities.com
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Management Tools:The Checkbook
Method1. You and your managing
partner, (General Contractor or Project Manager)
are both signatory on a joint checking account.
2. Thru Electronic Banking, you watch as he or she spends the money. All
expenses go thru the check book
3. You put more money in via transfer as it is needed.
4. At the end, all the accounting is done. Your
CPA will love you.
1. You and your managing partner, (General Contractor
or Project Manager) are both signatory on a joint
checking account.
2. Thru Electronic Banking, you watch as he or she spends the money. All
expenses go thru the check book
3. You put more money in via transfer as it is needed.
4. At the end, all the accounting is done. Your
CPA will love you.
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Correct Motivation
When He or She is dependent on a
share of the profit,
and actually handwriting the
checks,
They are very careful with the
Checkbook
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Q. What does the GC do (either himself or with his
employees?)A1. Everything not done by
subcontractors. Some examples might be: (some
of these might be subs)Board-Up and Re-Keying,
Demolition and haul to Re StoreFinish Carpentry, doors, casing,
base, crown etcCabinet install, Hardware install
Appliance Install,* Mirrors, Fixtures
And mainly supervise all the subcontractors.
A1. Everything not done by subcontractors.
Some examples might be: (some of these might be subs)Board-Up and Re-Keying,
Demolition and haul to Re StoreFinish Carpentry, doors, casing,
base, crown etcCabinet install, Hardware install
Appliance Install,* Mirrors, Fixtures
And mainly supervise all the subcontractors.
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Q. If subs do everything, what do I do?
A1. Maintain the Energy-Wise aspect of your
operation. Many will tempt you to take shortcuts.
A2. Be finding the next project.
A3. Market to get them sold quickly.
A4. Continuing Education. On Real Estate, Remodeling
and Energy Efficiency.
A5. If you want to, you can help your community thru
consulting with politicians & non profits. Habitat etc.
A1. Maintain the Energy-Wise aspect of your
operation. Many will tempt you to take shortcuts.
A2. Be finding the next project.
A3. Market to get them sold quickly.
A4. Continuing Education. On Real Estate, Remodeling
and Energy Efficiency.
A5. If you want to, you can help your community thru
consulting with politicians & non profits. Habitat etc.
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Don’t Yield To Temptation:
Avoid The “Grey Market” Economy
Make Sure Your Subs Have:
1. Contractors License2. Workers Comp
Insurance3. Liability Insurance
Reasons:1. Liability: Lose
Everything...2. Crackdowns Coming
3. Unfair to those who play fair.
Avoid The “Grey Market” Economy
Make Sure Your Subs Have:
1. Contractors License2. Workers Comp
Insurance3. Liability Insurance
Reasons:1. Liability: Lose
Everything...2. Crackdowns Coming
3. Unfair to those who play fair.
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Contractors, Not Employees
Your Contractors Are Responsible
For their employees:
1. Workers Comp Insurance2. Legality for work
(Citizenship, Green Card, etc)
You dont want this contractor’s headache.
Leave it for the Contractors!
Your Contractors Are Responsible
For their employees:
1. Workers Comp Insurance2. Legality for work
(Citizenship, Green Card, etc)
You dont want this contractor’s headache.
Leave it for the Contractors!
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Negotiate “Wholesale” Pricing
Contractor Gets:
1. Consistent Flow of Work
2. No Sales or Marketing Expense
3. No Customer Handholding
4. Smooth Teamwork
5. Referrals
Investor Gets:
1. Wholesale Pricing
2. Minimum Supervision
Required
3. Speed, priority service
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Somebody Has To KnowHome Performance!
1. You are the best choice.
Enroll in classes, read books, etc
2. The more Home Performance your contractor
knows, the better for you.
3. Once you know enough Home Performance, you can specify the performance you
require.
4. Especially HVAC, Shell, Insulation, & Window Contractors
1. You are the best choice.
Enroll in classes, read books, etc
2. The more Home Performance your contractor
knows, the better for you.
3. Once you know enough Home Performance, you can specify the performance you
require.
4. Especially HVAC, Shell, Insulation, & Window Contractors
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
“Naked” Capitalism?1. Minimum Government
Involvement.2. Minimum Program
Involvement.3. Use All “Wholesale” Vendors and Suppliers4. Minimize Overhead
5. Focus On Adding Hard Value.
6. Find Your Own Money.7. Find Your Own Buyers.
8. Buy Smart
Stay NIMBLE!
1. Minimum Government Involvement.
2. Minimum Program Involvement.
3. Use All “Wholesale” Vendors and Suppliers4. Minimize Overhead
5. Focus On Adding Hard Value.
6. Find Your Own Money.7. Find Your Own Buyers.
8. Buy Smart
Stay NIMBLE!
No NSP programsFor example....
No NSP programsFor example....
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
A Green Heart:How Green?
What Color of Green?
How Committed?Origin Of A Green
Heart?Is It Essential? Can I Fake It?
Fake It Till I Make It?
Can I “Sort Of” Believe?
How Green?What Color of
Green?How Committed?Origin Of A Green
Heart?Is It Essential? Can I Fake It?
Fake It Till I Make It?
Can I “Sort Of” Believe?
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Observations:Many in the Home
Performance Industry dont live in
Performing Homes...
Most, 99%+ in Real Estate and Real Estate Investing
are motivated primarily by profit and ROI.
Many Contractors do only what will sell, basically
“follow the money”
These probably need a Greener Heart to succeed in
the Energy Wise House Flipping
Business .....Why?
Many in the Home Performance Industry dont
live in Performing Homes...
Most, 99%+ in Real Estate and Real Estate Investing
are motivated primarily by profit and ROI.
Many Contractors do only what will sell, basically
“follow the money”
These probably need a Greener Heart to succeed in
the Energy Wise House Flipping
Business .....Why?
?
(Disclosure On The Next Slide)(Disclosure On The Next Slide)
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Why Is A Green Heart Necessary?
Disclosure: You need a “Higher Calling” to stay the course when you could make more money faster
with less effort if you just did “Lipstick On A Pig”
Full Disclosure: In other words.
I make less money, and put in more effort
and it takes longer than the TV show flippers who have raised putting
Lipstick on a Pig to an art form.
Disclosure: You need a “Higher Calling” to stay the course when you could make more money faster
with less effort if you just did “Lipstick On A Pig”
Full Disclosure: In other words.
I make less money, and put in more effort
and it takes longer than the TV show flippers who have raised putting
Lipstick on a Pig to an art form.
So, Why Would You Want To Do This?So, Why Would You Want To Do This?
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
But On The Other Hand:Regular House Flipping(Lipstick on a Pig) does:
Nothing for the environment
No Green JobsDrags a Neighobrhood
DownNo Reduction of Foreign
OilNo Resources Saved
Occupants uncomfortable, & paying
too muchSame for standard Buy &
HoldCreate Rentals Approach
& Creates a Nation of Renters
& Lowers the Tax Base
Regular House Flipping(Lipstick on a Pig) does:
Nothing for the environment
No Green JobsDrags a Neighobrhood
DownNo Reduction of Foreign
OilNo Resources Saved
Occupants uncomfortable, & paying
too muchSame for standard Buy &
HoldCreate Rentals Approach
& Creates a Nation of Renters
& Lowers the Tax Base
(98% of All Investment
Advice!)
(98% of All Investment
Advice!)
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Top 10 Motivations Of The Green Heart
1. Lower Carbon Emissions2. Provide Efficient, Safe,
Comfortable Housing3. Improve Neighborhoods4. Improve The Tax Base
5. Provide Green Jobs6. It’s The Right Thing To Do7. Lower Reliance on Foreign
Oil8. Create Home Ownership vs
A Nation Of Renters9. Conserve Resources
10. Satisfaction & Fun Of Doing Good
1. Lower Carbon Emissions2. Provide Efficient, Safe,
Comfortable Housing3. Improve Neighborhoods4. Improve The Tax Base
5. Provide Green Jobs6. It’s The Right Thing To Do7. Lower Reliance on Foreign
Oil8. Create Home Ownership vs
A Nation Of Renters9. Conserve Resources
10. Satisfaction & Fun Of Doing Good
So, Why Wouldn’t You Want To Do This?So, Why Wouldn’t You Want To Do This?
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Temptations To Avoid1 Choose a lower
specificationexample: R 38 vs R 55
2. “It’s good enough”3. Keeping things that need
to go.4. Skipping repairs that
need to happen
2 Greatest Home Performance Sins:
1. Skipping or shortcutting the Shell Seal.
2. Failing to Re do the duct system.
(Right sized, right placed & sealed)
Dont just seal the existing
1 Choose a lower specification
example: R 38 vs R 552. “It’s good enough”
3. Keeping things that need to go.
4. Skipping repairs that need to happen
2 Greatest Home Performance Sins:
1. Skipping or shortcutting the Shell Seal.
2. Failing to Re do the duct system.
(Right sized, right placed & sealed)
Dont just seal the existing
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Dont Quit Your Day Job!*Energy Wise House
Flipping can easily be done part time. (If
you follow the advice on this site & create a
great team)
2 - 4 projects per year is an easy pace.
Get an assistant only when
you need one
Energy Wise House Flipping can easily be done part time. (If
you follow the advice on this site & create a
great team)
2 - 4 projects per year is an easy pace.
Get an assistant only when
you need one
* But if your heart demands it,
you will surely succeed
“Burn the ships”
Hernando Cortez 1519
* But if your heart demands it,
you will surely succeed
“Burn the ships”
Hernando Cortez 1519
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Many Beliefs, Same Conclusion
Caring For Our Planet & People
You may believe all the ice is melting and New York will soon
be under 10 feet of water. And Green Renovation of
Foreclosed Homes is one thing you can do to make a
difference.Welcome to the Team!
You may simply believethat God said,
“Take care of the place”And Green Renovation Appeals
To YouWelcome to the Team!
You may believe all the ice is melting and New York will soon
be under 10 feet of water. And Green Renovation of
Foreclosed Homes is one thing you can do to make a
difference.Welcome to the Team!
You may simply believethat God said,
“Take care of the place”And Green Renovation Appeals
To YouWelcome to the Team!
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Belie
fB
elie
f
DesireDesire
ColdCold
Dispassi
onate
Dispassi
onate
Indifferent
Indifferent
Disintereste
d
Disintereste
d
Curious
Curious
Vague Want
Vague Want
Wishful T
hinking
Wishful T
hinking
Desire
DesireIntense Desir
e
Intense Desire
Burning Desire
Burning Desire
Passion
PassionFearFear
DisbeliefDisbelief
DoubtDoubt
PossibilityPossibility
AssuranceAssurance
ConfidenceConfidence
CertaintyCertainty
ConvictionConviction
Faith
Status QuoStatus Quo
Comfort ZoneComfort Zone
Action ZoneAction Zone
Getting Ready For ChangeGetting Ready For Change
No Change PossibleNo Change Possible
Belief - Desire - Action
Predisposed To ActionPredisposed To Action
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
How Do I Know I Have A Green Heart?
I’d rather surf the net for new Home Performance
ideas than watch American Idol.
I get up early and stay up late to study and learn
more about this.
My friends say I obsess about Home Performance.
Home Energy is my favorite magazine
That far away look in my eyes when the class gets boring is me planning my
next Flip!
I’d rather surf the net for new Home Performance
ideas than watch American Idol.
I get up early and stay up late to study and learn
more about this.
My friends say I obsess about Home Performance.
Home Energy is my favorite magazine
That far away look in my eyes when the class gets boring is me planning my
next Flip!
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
How Do I Know I Have A Green Heart?
I’m negotiating about a wind generator on top of
my house
I want a heat pump water heater for my birthday
Each project will be better than the last. I’m a learner
I’m excited about my new 2 stage toilet
And Buffalo Grass
I think caulking and foam is sexy
I obsess about Ducted Mini Split Heat Pumps
I’m negotiating about a wind generator on top of
my house
I want a heat pump water heater for my birthday
Each project will be better than the last. I’m a learner
I’m excited about my new 2 stage toilet
And Buffalo Grass
I think caulking and foam is sexy
I obsess about Ducted Mini Split Heat Pumps
And Many More....You’ll Know.And Many More....You’ll Know.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Most of them, I already knew, I just thought
maybe I could get away with breaking my
own rules. Some of them are new.
The main rule I tried to break....
Most of them, I already knew, I just thought
maybe I could get away with breaking my
own rules. Some of them are new.
The main rule I tried to break....
I’ve Learned Some ThingsMaybe I really can
make this work with hourly employees. It’s easier and they’re nice
guys...
Maybe I really can make this work with
hourly employees. It’s easier and they’re nice
guys...
PS you dont have to learn this the hard way!PS you dont have to learn this the hard way!
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
1. No Hourly Labor. Use Subcontractor Only
2. Keep Your General Contractor Partner thinking
like youwith 2 techniques:
A. Pay thru a profit split.
B. Check Writing thru the project’s separate account.
He spends. I watch thru electronic banking and
fund when necessary. Check
duplicates make accounting easy.
1. No Hourly Labor. Use Subcontractor Only
2. Keep Your General Contractor Partner thinking
like youwith 2 techniques:
A. Pay thru a profit split.
B. Check Writing thru the project’s separate account.
He spends. I watch thru electronic banking and
fund when necessary. Check
duplicates make accounting easy.
Lessons From The First 10
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
3. Wholesale Pricing from subs and
suppliers. Always try to beat Home Depot.
4. Good Team of Independent
Contractors. Mature, Grown Up Adults.
Licensed & Insured.
5. Make a Budget & Stick with it.
3. Wholesale Pricing from subs and
suppliers. Always try to beat Home Depot.
4. Good Team of Independent
Contractors. Mature, Grown Up Adults.
Licensed & Insured.
5. Make a Budget & Stick with it.
Lessons From The First 10
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
It will just take a few adjustments to the
formula:
I signed an offer and sent it off tonight. It
felt good to be back on the hunt!
Here’s My Plan...
It will just take a few adjustments to the
formula:
I signed an offer and sent it off tonight. It
felt good to be back on the hunt!
Here’s My Plan...
With The Market Changes...Is Energy Wise House Flipping
Still A Good Idea? YES!!!Maybe Even
Better!
YES!!!Maybe Even
Better!
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
A. With the boatloads of money coming down the
pipeline there will be opportunities like never
before.
I’ll be watching this closely & may use some
of it.
A. With the boatloads of money coming down the
pipeline there will be opportunities like never
before.
I’ll be watching this closely & may use some
of it.
Q. How Could It Get Any Better?
Be Careful. It’s hard to stand out &
command a premium when you’re running
with the pack!
Be Careful. It’s hard to stand out &
command a premium when you’re running
with the pack!
FREE Money Never Is.
FREE Money Never Is.
Note: Other Personality Types may be more suited to paperwork
Note: Other Personality Types may be more suited to paperwork
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Assume: I was looking for $100K spread from buy to
sell.
Assume: I can now get only $90 in the
overheated market.
I am unwilling to give up my $20
I am unwilling to compromise on the
Energy Package.
Something’s gotta give...
At least three things can be squeezed.
Assume: I was looking for $100K spread from buy to
sell.
Assume: I can now get only $90 in the
overheated market.
I am unwilling to give up my $20
I am unwilling to compromise on the
Energy Package.
Something’s gotta give...
At least three things can be squeezed.
Plan For This Over Heated Market
20-20-20-20-20 Review$20k Energy Package$20K Wow! Package$20K Done! Package
$20K Soft Costs$20K Profit
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
1. Reduce the Done(landscape front yard only,
etc)
2. Reduce the Wow!(less crown molding, 4 lb
pad)
Reduce the Soft Costs(sell them myself, finish
faster, reduce carry costs)
This could add up to $20-30K saved! I only needed
tomake up $10K.
What to do with all these
“excess savings?”
1. Reduce the Done(landscape front yard only,
etc)
2. Reduce the Wow!(less crown molding, 4 lb
pad)
Reduce the Soft Costs(sell them myself, finish
faster, reduce carry costs)
This could add up to $20-30K saved! I only needed
tomake up $10K.
What to do with all these
“excess savings?”
Plan For Overheated Market20-20-20-20-20 Review$20k Energy Package$20K Wow! Package$20K Done! Package
$20K Soft Costs$20K Profit
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
Savings From:Done, Wow & Soft Costs,
Go To
Increase The EnergyPackage*
& Add Solar
= Net Zero
Actually we will only target close to Net Zero (maybe a $5-25 utility
bill?)
Savings From:Done, Wow & Soft Costs,
Go To
Increase The EnergyPackage*
& Add Solar
= Net Zero
Actually we will only target close to Net Zero (maybe a $5-25 utility
bill?)
It’s A Perfect Time For A....Zero Energy House.
0Yahoo! This Is
Going To Be Fun!Yahoo! This Is
Going To Be Fun!
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2009
1. South Facing Roof without big tree shade
problems.
2. Some Re-Usable Items to keep the cost down. Not quite as trashed as I
used to look for.
3. Worn Out Wood Siding is excellent. Perfect
candidate for new insulation and stucco.
4. Built in the 80’s avoids the new lead requirements.
1. South Facing Roof without big tree shade
problems.
2. Some Re-Usable Items to keep the cost down. Not quite as trashed as I
used to look for.
3. Worn Out Wood Siding is excellent. Perfect
candidate for new insulation and stucco.
4. Built in the 80’s avoids the new lead requirements.
The Perfect Candidate For Zero Energy House
Renovation
0%Yahoo! This Is
Going To Be Fun!Yahoo! This Is
Going To Be Fun!
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SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
We Haven’t
Been Trained!
We Haven’t
Been Trained!
Please Help Us!
Please Help Us!
Energy Efficiency: What’s It Worth?
To A Buyer?
To A Seller?
To An Appraiser?
To The Bank?
To Our Planet?
All Different
What’s an Energy
Wise Investor To
Do?
To A Buyer?
To A Seller?
To An Appraiser?
To The Bank?
To Our Planet?
All Different
What’s an Energy
Wise Investor To
Do?
Appraisal IndustryAppraisal Industry
It’s Energy
Efficient!
It’s Energy
Efficient!
So What!So What!Our
Hands Are Tied!
Our Hands
Are Tied!
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
ROI, What’s That Got To Do With It?
Framing the Discussion around Return On Investment (only)
(ROI) = Bad Idea #2
If I want to be comfortable*, or safe*, or healthier*, or proud of my home* or my contribution*, I dont ask, “What’s my return on my investment? We dont ask the ROI of a flat screen, or granite counters. Buyers value these because they
want them. Value is established by buyer and
seller agreeing. It should be the same for Energy Savers.
Framing the Discussion around Return On Investment (only)
(ROI) = Bad Idea #2
If I want to be comfortable*, or safe*, or healthier*, or proud of my home* or my contribution*, I dont ask, “What’s my return on my investment? We dont ask the ROI of a flat screen, or granite counters. Buyers value these because they
want them. Value is established by buyer and
seller agreeing. It should be the same for Energy Savers.
ROI is not irrelevant but It is only ONE component of value
ROI is not irrelevant but It is only ONE component of value
* comes along with Energy Improvements
* comes along with Energy Improvements
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Using CostEstimator.comCost Estimator is
“online” software based on the HomeTech
pricing system that has been a standard for
Remodelers for over 25 years.
Everything is stored “in the cloud” so if you are in an area with difficult internet service, you
should choose a different system
Cost Estimator is “online” software based
on the HomeTech pricing system that has
been a standard for Remodelers for over 25
years.
Everything is stored “in the cloud” so if you are in an area with difficult internet service, you
should choose a different system
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Benefits of “Online” Software
1. I cant lose it.
2. No updates to install
3. I can work anywhere on the planet with an
internet connection
4. Easy collaboration. All team members
have the same data instantly
5. Customizable
1. I cant lose it.
2. No updates to install
3. I can work anywhere on the planet with an
internet connection
4. Easy collaboration. All team members
have the same data instantly
5. Customizable
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Any Good Estimating System Will Help You
Make MoneyMainly by producing professional looking
cost estimate reports that are used in
negotiations with Sellers to justify your
offering price.
These are produced automatically with one click so they can easily accompany every offer
& haircut request.
Mainly by producing professional looking
cost estimate reports that are used in
negotiations with Sellers to justify your
offering price.
These are produced automatically with one click so they can easily accompany every offer
& haircut request.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Any Good Estimating System Will Help You Not
Lose Money
Mainly by forcing you to consider every item on a complete list of
possible costs.
The builder’s nightmare
is to get the job and then realize,
“Oh, no! I forgot the________!”
Mainly by forcing you to consider every item on a complete list of
possible costs.
The builder’s nightmare
is to get the job and then realize,
“Oh, no! I forgot the________!”
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Time For A New Brand?
Or Just An Expanded Menu?Or Just An Expanded Menu?
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Many Buyers Wont Buy What’s Good For Them &
The PlanetJust as this dog wont eat a lifesaving pill that will be
good for him, (without some hamburger) The typical
homebuyer wont spend all that it costs to do
complete Energy Saving Renovation.
..... Unless it is included with a Classy & Complete
Remodel
Hence the Wow! Done! & Energy
Packages
Is this “Bait & Switch” or good marketing? .... You
decide.
Just as this dog wont eat a lifesaving pill that will be
good for him, (without some hamburger) The typical
homebuyer wont spend all that it costs to do
complete Energy Saving Renovation.
..... Unless it is included with a Classy & Complete
Remodel
Hence the Wow! Done! & Energy
Packages
Is this “Bait & Switch” or good marketing? .... You
decide.
ReviewOf ModelReview
Of Model
Granite =Hamburger
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
The Wow! Package1. Granite Counters at Kitchen & Baths
2. Extra Deep Stainless Steel Sink3. Designer Spray Faucet
4. Italian glass tile backsplash5. Under Counter Lighting
6. All wood Cabinetry7. Crown Molding and Tall Baseboard
8. All new interior doors and trim9. New Front Door with Art Glass
10. Tile & Travertine floors11. Engineered Wood Laminate Floors12. Designer tile and faucets at baths
13. Chair Rail, , Wainscoating & 3 tone paint14. Designer Light fixtures & ceiling fans
Include
This,Include
This,
ReviewReview
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
The Done! Package1. New Front and Back Lawn
2. Automatic Sprinklers with timer3. New 30 - 50 year roof
4. New Roll-up Garage Door with Openers5. Gutters
6. New 2 inch faux wood blinds7. Major Professional Tree Trimming
8. Sewer line renovated as necessary9. All new oil rubbed bronze hardware10. New Energy Star Appliances with
Warrantees11. New Windows and HVAC with
Warrantees12. Upgraded Carpet with 6 lb pad
13. Deciduous Trees placed for Energy Efficiency
And
This,And
This,
All ThreeRequired
ReviewReview
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
The Energy! Package
1. New HVAC system, Stainless Steel Heat Exchanger
2. Manual J sizing, usually half of previous capacity
3. New R-8 short mylar ducts partially buried
4. Manual D with tight seal and test5. Extra Return Duct in Master Suite
6. New LoE2 windows and Patio Doors7. Low E 140 at west windows
8. Deciduous Trees planted selectively9. Shell Sealing of floor & ceiling with test
10. Attic Insulation to R-50 11. Occupancy sensors
12. Gas Stove and Dryer options13. Ceiling Fans at all sleeping and living
rooms14. Panasonic Ventilation with controls
1. New HVAC system, Stainless Steel Heat Exchanger
2. Manual J sizing, usually half of previous capacity
3. New R-8 short mylar ducts partially buried
4. Manual D with tight seal and test5. Extra Return Duct in Master Suite
6. New LoE2 windows and Patio Doors7. Low E 140 at west windows
8. Deciduous Trees planted selectively9. Shell Sealing of floor & ceiling with test
10. Attic Insulation to R-50 11. Occupancy sensors
12. Gas Stove and Dryer options13. Ceiling Fans at all sleeping and living
rooms14. Panasonic Ventilation with controls
So we can
Sell all
this
Everytime
So we can
Sell all
this
Everytime
ReviewReview
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com
Q. Why Add To The Menu? If It Ain’t
Broke...A. The Market has
changed and is going to change a lot more
very soon.
1. Much less inventory
= More competion= Less great deals
2. Buyers are getting more educated about
Green
= New Opportunity
A. The Market has changed and is going to change a lot more
very soon.
1. Much less inventory
= More competion= Less great deals
2. Buyers are getting more educated about
Green
= New Opportunity
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Q. Will Buyers Pay The Price For Complete Energy
Packages?A. It would be great if the
buying public really valued Green and Saving
The Planet as we do.
So far, It’s just not (generally) the case*. People like the idea, but
when confronted with the cost and asked to write a
check.... The interest cools off quickly, &
“partial jobs” are the result
A. It would be great if the buying public really
valued Green and Saving The Planet as we do.
So far, It’s just not (generally) the case*. People like the idea, but
when confronted with the cost and asked to write a
check.... The interest cools off quickly, &
“partial jobs” are the result
* Recent poll of Home Performance Contractors
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
So We Still Need Hamburger!
The 3 Package Model works well and we will continue to use it. We have developed
some techniques that work well to go along
with it. Like doing our own open houses, using our 4 page
brochure, CraigsList, co-op advertising,
selling them ourselves and using Lease
Options.
BUT.....
The 3 Package Model works well and we will continue to use it. We have developed
some techniques that work well to go along
with it. Like doing our own open houses, using our 4 page
brochure, CraigsList, co-op advertising,
selling them ourselves and using Lease
Options.
BUT.....
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
New Hypothesis: Net Zero With Solar PV Can Be The
New Wow!This Hypothesis will be tested and reported on this site over the next
several months.
Cliff’s Notes Version:
1. Homes that dont need much Done or
Wow!
2. Do a small amount of Wow!
3. Do the Energy Package
4. Add Solar PV
This Hypothesis will be tested and reported on this site over the next
several months.
Cliff’s Notes Version:
1. Homes that dont need much Done or
Wow!
2. Do a small amount of Wow!
3. Do the Energy Package
4. Add Solar PV
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Buy Low, Add Value, Sell High
We’ll still seek out the best pricing we can get.
But we wont limit ourselves to the really beat up housing stock.
We may even buy “unfinished” projects that
lipstick flippers have started
This will greatly increase the size of our universe of
possibilities.
We’ll still seek out the best pricing we can get.
But we wont limit ourselves to the really beat up housing stock.
We may even buy “unfinished” projects that
lipstick flippers have started
This will greatly increase the size of our universe of
possibilities.
ReviewReview
Buy Low:
(prototype Book Cover)(prototype Book Cover)
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Buy Low, Add Value, Sell High
We’ll add the Energy Package.
Plus Solar PV
And a small amount of Wow! That may be
needed to get it to sell.
Total Benefit to the Planet from this
approach will be even greater than with the
3 package system!(Energy Package
Plus Solar)
We’ll add the Energy Package.
Plus Solar PV
And a small amount of Wow! That may be
needed to get it to sell.
Total Benefit to the Planet from this
approach will be even greater than with the
3 package system!(Energy Package
Plus Solar)
ReviewReview
Add Value:
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Buy Low, Add Value, Sell High
Note: These projects will be faster and easier than
our 3 Package projects with the classy remodeling.
& may net the same profit
But The Home Performance Energy
Package MUST work as a System or you will
simply be a Marketeer, using the language of Green to lie to your
customers
Note: These projects will be faster and easier than
our 3 Package projects with the classy remodeling.
& may net the same profit
But The Home Performance Energy
Package MUST work as a System or you will
simply be a Marketeer, using the language of Green to lie to your
customers
ReviewReview
Add Value:
Boo! Hiss!Boo! Hiss!
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Buy Low, Add Value, Sell High
Selling always requires
Making The Invisible Visible
Add the Solar Story to the 4 page brochure
& other marketing channels
to reach the buyers who will
value our product!
Selling always requires
Making The Invisible Visible
Add the Solar Story to the 4 page brochure
& other marketing channels
to reach the buyers who will
value our product!
ReviewReview
Sell High:
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Q. Why Wont Everyone Do This?
A. This wont work for Greenwashers who dont get the Energy
Package right.
They will need twice thesize PV system.
This will work for us because our heat loads
are so low that it doesn’t take much to go the rest
of the way to
“Near Net Zero”
A. This wont work for Greenwashers who dont get the Energy
Package right.
They will need twice thesize PV system.
This will work for us because our heat loads
are so low that it doesn’t take much to go the rest
of the way to
“Near Net Zero”
There will always be those who try to abuse
the system. Dont worry about them. Just do the
right thing!
There will always be those who try to abuse
the system. Dont worry about them. Just do the
right thing!
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Calendar it NOW!
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Picking Your TeamPlanetSaving as an Energy Wise House
Flipping Investor is not an Individual Sport!
It Takes A Team
Unless you want to stay small & working on the
jobs.
In that case you are “buying yourself a
job.”
Not a bad thingJust know it going in.
PlanetSaving as an Energy Wise House
Flipping Investor is not an Individual Sport!
It Takes A Team
Unless you want to stay small & working on the
jobs.
In that case you are “buying yourself a
job.”
Not a bad thingJust know it going in.
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Pro’s & Con’s Of Staying Small
Pro’s1. No boss, or partner to
have communication problems with
2. Less stress (maybe)3. Can start on a
shoestring.
Con’s1. You always have to work if things are to get
done. Great if you love it.
Pro’s1. No boss, or partner to
have communication problems with
2. Less stress (maybe)3. Can start on a
shoestring.
Con’s1. You always have to work if things are to get
done. Great if you love it.
Wonderful benefit of either style of investing:You can experiment in your own laboratory!
Wonderful benefit of either style of investing:You can experiment in your own laboratory!
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The Team Players 1. Spouse or S.O.
(Forget this one at your peril)
2. Realtor to purchase3. Realtor to sell
4. General Contractor or5. Project Manager
6. Lender or 7. Money Partner
8. Loan Broker9. Energy Related Subs10. Wow! & Done Subs11. Due Diligence Team
12. Insurance Broker13. Escrow Officer
1. Spouse or S.O. (Forget this one at your
peril)2. Realtor to purchase
3. Realtor to sell4. General Contractor or
5. Project Manager6. Lender or
7. Money Partner8. Loan Broker
9. Energy Related Subs10. Wow! & Done Subs11. Due Diligence Team
12. Insurance Broker13. Escrow Officer
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Spouse or SOContracting is a hard way to make a living. I have often
said the reason for our survival for 3 decades was
two people working our tails off. Most of my
friends who started in the 70’s with us didn’t make it
with the business and marriage both intact unless
both were working in the business.
Investing is easier than contracting in my opinion.
This is why I recommend Multiple Streams of Income to my Contractor Friends.
Contracting is a hard way to make a living. I have often
said the reason for our survival for 3 decades was
two people working our tails off. Most of my
friends who started in the 70’s with us didn’t make it
with the business and marriage both intact unless
both were working in the business.
Investing is easier than contracting in my opinion.
This is why I recommend Multiple Streams of Income to my Contractor Friends.
(It was a Safety Award. No one shot themselves with a nail gun or fell off
a roof! Typical worries of Contractors)
(It was a Safety Award. No one shot themselves with a nail gun or fell off
a roof! Typical worries of Contractors)
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Realtor (For Purchase)The Right Realtor
provides a valuable service.
1. Helping you determine the ARV -
After Repair Value. This is essential so you will
know what to offer.2. One main tool a
Realtor can provide is the CMA Comparative
Market Analysis.3. Banks list 95% of the
foreclosures with Realtors.
The Right Realtor provides a valuable
service. 1. Helping you
determine the ARV - After Repair Value. This is essential so you will
know what to offer.2. One main tool a
Realtor can provide is the CMA Comparative
Market Analysis.3. Banks list 95% of the
foreclosures with Realtors.
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Interview Questions:
1. Do you own investment properties
yourself?2. How do you feel about submitting an offer at 55% of the
asking price?3. How about submitting 20 offers before we get
one?4. Are you digital? Can I sign everything digitally?
5. Eco Broker? Or at least Green Friendly.
1. Do you own investment properties
yourself?2. How do you feel about submitting an offer at 55% of the
asking price?3. How about submitting 20 offers before we get
one?4. Are you digital? Can I sign everything digitally?
5. Eco Broker? Or at least Green Friendly.
Life’s too short to have to fight your team matesLife’s too short to have to fight your team mates
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Realtor To SellIf you choose to sell
with a Realtor, you will want one who will do
aggressive open houses and is well
positioned as a selling realtor.
This MAY be the one who you buy thru.
You may also decide to sell the property
yourself. This has advantages and disadvantages.
(discussion)
If you choose to sell with a Realtor, you will want one who will do
aggressive open houses and is well
positioned as a selling realtor.
This MAY be the one who you buy thru.
You may also decide to sell the property
yourself. This has advantages and disadvantages.
(discussion)
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General Contractor
The General Contractor schedules the other
contractors, orders all the materials and does some of the work (more
or less) It is important that he
have a Green Heart or at least understand and
respect yours.No need to have your
team dragging you down.
The General Contractor schedules the other
contractors, orders all the materials and does some of the work (more
or less) It is important that he
have a Green Heart or at least understand and
respect yours.No need to have your
team dragging you down.
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Interview Questions:1. Confirm all licenses,
liability and Workers Comp insurance.
2. List of references ... And really call them.
3. CSLB check 4. Also check BBB
5. Ask about a difficult client and how they
handled it.6. They (along with all
subs) accept your contract and your payment schedule
7. Do they love Green and EE or are you just a
job to them?
1. Confirm all licenses, liability and Workers
Comp insurance.2. List of references ... And really call them.
3. CSLB check 4. Also check BBB
5. Ask about a difficult client and how they
handled it.6. They (along with all
subs) accept your contract and your payment schedule
7. Do they love Green and EE or are you just a
job to them?
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Project Manager
Does the job of the General Contractor.One way to do this legally is to share ownership of the property. The
partnership operates as “Owner Builder”
If compensation is on a percentage profit
split, motivation stays strong.
Does the job of the General Contractor.One way to do this legally is to share ownership of the property. The
partnership operates as “Owner Builder”
If compensation is on a percentage profit
split, motivation stays strong.
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LenderThe lender who finances
your acquisition and renovation.
My preference is a line of credit from a small bank (Less paperwork, 6.5%)
Also Wells Fargo Mortgage (not bank) has an 80% of ARV program which should finance all
of your costs. They require appraisal and approval of your plans and inspections to pay
the draws
The lender who finances your acquisition and
renovation. My preference is a line of credit from a small bank (Less paperwork, 6.5%)
Also Wells Fargo Mortgage (not bank) has an 80% of ARV program which should finance all
of your costs. They require appraisal and approval of your plans and inspections to pay
the draws
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Money Partner
Maybe who shares yourGreen Heart.
Any money partnerwill be better than
“hard money” You can pay them:
1. A guaranteed interest rate
2. A profit split
Maybe who shares yourGreen Heart.
Any money partnerwill be better than
“hard money” You can pay them:
1. A guaranteed interest rate
2. A profit split
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Loan Broker
Here you are looking for flexibility. For
example most lenders can only accept FICO scores down to 620.
But there are programs out there that will go
to 580. That opens up more possibilities.
Another example is assisting with owner
financing such as lease options with refinance.
Here you are looking for flexibility. For
example most lenders can only accept FICO scores down to 620.
But there are programs out there that will go
to 580. That opens up more possibilities.
Another example is assisting with owner
financing such as lease options with refinance.
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Energy ContractorsThis is mainly the HVAC
Contractor. He should be CBPCA trained and BPI
certified AND accredited. Green Point Rating is also
valuable. Also the Window and Insulation contractors need Home Performance
Training. One of these needs to do the shell seal and Blower Door Testing. You are not looking for the cheapest in these trades. You want the best and it
costs a little more....
This is mainly the HVAC Contractor. He should be
CBPCA trained and BPI certified AND accredited. Green Point Rating is also
valuable. Also the Window and Insulation contractors need Home Performance
Training. One of these needs to do the shell seal and Blower Door Testing. You are not looking for the cheapest in these trades. You want the best and it
costs a little more....
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Wow! & Done Contractors
You can negotiate more aggressively with these contractors. You still want good work but it isn’t as important as
theEnergy Team.You do want
“Wholesale Pricing” but most important
here is their ability to respond timely and
work with the rest of the team.
You can negotiate more aggressively with these contractors. You still want good work but it isn’t as important as
theEnergy Team.You do want
“Wholesale Pricing” but most important
here is their ability to respond timely and
work with the rest of the team.
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Due Diligence TeamTermite Inspector
Roof Inspector - RooferSewer Inspector-
PlumberElectrician
Home InspectorGeneral Contractor
My Home Inspector was formerly a Building
Inspector and knows the codes very well.
It’s good to have an “open house” with all of
these at the same time. (Realtor has to give
access)
Termite InspectorRoof Inspector - Roofer
Sewer Inspector- Plumber
ElectricianHome Inspector
General Contractor
My Home Inspector was formerly a Building
Inspector and knows the codes very well.
It’s good to have an “open house” with all of
these at the same time. (Realtor has to give
access)
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Insurance BrokerSet up with the
Insurance Broker so that it is only a phone call to insure a new project. Typically I buy a year’s policy. Then I receive a
refund upon sale.
It’s good to get an Umbrella Policy by the time you are into your
third project.
Set up with the Insurance Broker so that it is only a phone call to insure a new project. Typically I buy a year’s policy. Then I receive a
refund upon sale.
It’s good to get an Umbrella Policy by the time you are into your
third project.
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GreenEarthEquities.Com © 2010
Escrow OfficerThe Seller usually chooses, so on all your purchases
you will be getting to know different escrow officers
and companies.For your sales, you get to choose. I like to stay with one who learns how I work.
(and helps me stay on track)
This is especially important if you start selling your own projects with Lease
Options & Refinancing etc.
The Seller usually chooses, so on all your purchases
you will be getting to know different escrow officers
and companies.For your sales, you get to choose. I like to stay with one who learns how I work.
(and helps me stay on track)
This is especially important if you start selling your own projects with Lease
Options & Refinancing etc.
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With The Right TeamPlanet Saving Can Be A Lot
Of FunSee the
guy in the
back with the
oars?
That’s You!
See the
guy in the
back with the
oars?
That’s You!
If the team
doesn’t work
together
You’re going to get wet!
If the team
doesn’t work
together
You’re going to get wet!
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Top 10 List For Energy Wise Home
Renovation
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The “Biggest HP Sin” = Failure To Address The
Building EnvelopePossible Reasons:
1. This is Hot Dirty Work
(Or Cold Dirty Work)(in tight places with
spiders)
2. The Importance was not understood by
Contractors or especially Installers
3. It was not easily measurable by program
managers and grant writers
Possible Reasons:1. This is Hot Dirty
Work(Or Cold Dirty Work)(in tight places with
spiders)
2. The Importance was not understood by
Contractors or especially Installers
3. It was not easily measurable by program
managers and grant writers
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Everything Is Disproportionate About The Building Envelope!
Lower Cost Harder WorkMore Savings
Harder to Inspect
(Relative to the other ingredients of the Home Performance Package)
Lower Cost Harder WorkMore Savings
Harder to Inspect
(Relative to the other ingredients of the Home Performance Package)
This Is NOT The Place To Skimp!This Is NOT The Place To Skimp!Bottom Line: Bottom Line:
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Shell Seal The Attic
This is probably the biggest savings
opportunity for the cost involved. It is most often skipped because removing decades old insulation to access these areas is no
ones favorite work. But if you ever expect to
get to Net Zero, this part is absolutely essential.
This is probably the biggest savings
opportunity for the cost involved. It is most often skipped because removing decades old insulation to access these areas is no
ones favorite work. But if you ever expect to
get to Net Zero, this part is absolutely essential.
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Seal The Floor
Seal the floor the same as the floor of the attic. Especially look for big holes like
at the tub, toiletand shower. Caulk and Foam all the smaller cracks.
Covering the ground with 6 mil poly has been shown to save
way more than it costs. = a good
decision.
Seal the floor the same as the floor of the attic. Especially look for big holes like
at the tub, toiletand shower. Caulk and Foam all the smaller cracks.
Covering the ground with 6 mil poly has been shown to save
way more than it costs. = a good
decision.
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Attic, Floor, Wall Insulation
More is better. You do expect the house to last 100 years, dont you? Specify accordingly.
Minimize eave ventilation by placing it
elsewhere
Consider re-insulating walls with exterior rigid
insulation
Sealing the crawl space is a good idea. Sell your
building official first.
More is better. You do expect the house to last 100 years, dont you? Specify accordingly.
Minimize eave ventilation by placing it
elsewhere
Consider re-insulating walls with exterior rigid
insulation
Sealing the crawl space is a good idea. Sell your
building official first.
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The Comfort SystemThe Comfort SystemMini Split Heat
Pumps
With SEER to 26Performance to 0 F& Zero Duct Loss& Ducted Options
You cant beat ‘em
You just have to ditch your American
HVAC Supplier
Mini Split Heat Pumps
With SEER to 26Performance to 0 F& Zero Duct Loss& Ducted Options
You cant beat ‘em
You just have to ditch your American
HVAC Supplier
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Appliances& Lighting
Incandescents are so last century.
Avoid can lights except to save a marriage. IC & AT
if you must have themCFLs are on their way out. LED’s are gaining market
shareNot all Energy Star
Appliances are created equal. Read the Labels
and Compare.Consider a TED for
biofeedbackThe Energy Detective
Controls may save more than the appliances they
control (photo & motion & power strips)
Incandescents are so last century.
Avoid can lights except to save a marriage. IC & AT
if you must have themCFLs are on their way out. LED’s are gaining market
shareNot all Energy Star
Appliances are created equal. Read the Labels
and Compare.Consider a TED for
biofeedbackThe Energy Detective
Controls may save more than the appliances they
control (photo & motion & power strips)
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Safety & Indoor Air Quality
About 400 people die each year of Carbon Monoxide Poisoning.
Make SURE you dont contribute to this
statistic.
CO testing should be done by your licensed & trained HVAC contractor
About 400 people die each year of Carbon Monoxide Poisoning.
Make SURE you dont contribute to this
statistic.
CO testing should be done by your licensed & trained HVAC contractor
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Ventilation On PurposeSeal It Tight & Vent It Right
That means Mechanically on
purpose.
Minimum is good bath fans on timers.
Better is HRV - ERV
Seal It Tight & Vent It Right
That means Mechanically on
purpose.
Minimum is good bath fans on timers.
Better is HRV - ERV
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Water
Water as LiquidSealingGrading
French Drain
Water as VaporVapor Barriers
Vapor can dry to the outside or the inside.Make sure you have
plan.
Water as LiquidSealingGrading
French Drain
Water as VaporVapor Barriers
Vapor can dry to the outside or the inside.Make sure you have
plan.
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WaterHeating Water
Condensing Water Heater
Heat Pump Water Heater
Solar Water Heater
Heating Water
Condensing Water Heater
Heat Pump Water Heater
Solar Water Heater
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Water Heat Recovery Pipe
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WaterSaving Water
Two Stage ToiletsLow Flow Showers, Sinks
Low Usage Clothes & Dish Washers
Low Water LandscapeBuffalo Grass & Native PlantsDrip Irrigation
Rainwater catchment
Saving WaterTwo Stage Toilets
Low Flow Showers, SinksLow Usage Clothes &
Dish Washers
Low Water LandscapeBuffalo Grass & Native PlantsDrip Irrigation
Rainwater catchmentBuffalo Grass Developed at UC DavisMust be planted as plugs or stolons.
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So There Is One Man’s Top 10
I Hope It Makes You Think!
Thinking about YOUR house:
What would you add to the list?
What wouldn’t make your Top 10?
Put dollar estimates next to each of these.
Does cost change the Top 10?
This is the Tension where the Energy Wise House
Flipper LivesIt’s a good thing
Thinking about YOUR house:
What would you add to the list?
What wouldn’t make your Top 10?
Put dollar estimates next to each of these.
Does cost change the Top 10?
This is the Tension where the Energy Wise House
Flipper LivesIt’s a good thing
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What’s So Great About Zero?
What kind of zero?Zero Electric Bill?
Gas?Zero Imported Energy
From Utility Co?Propane? Wood?
Renewables? Solar, Wind?
One Option for Renovators;
Convert to all ElectricShoot for Net Zero with
Grid-Tied Solar PV
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Benefits of Zero1. Measurable
Without a Target, How will you know if you are doing anything good?
2. Easy To Understand
3. Easy To Sell
You really can sell Zero to Home Buyers without
complicated Ratings
1. Measurable
Without a Target, How will you know if you are doing anything good?
2. Easy To Understand
3. Easy To Sell
You really can sell Zero to Home Buyers without
complicated Ratings
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Zero Or Near Zero?Which is the smarter
target?
Due to some of the most expensive rates in the country in multi tiered
billing*
It REALLY makes sense to ensure that houses
dont pay for “expensive” kilowatts.
NEAR Net Zero may be the best choice
Which is the smarter target?
Due to some of the most expensive rates in the country in multi tiered
billing*
It REALLY makes sense to ensure that houses
dont pay for “expensive” kilowatts.
NEAR Net Zero may be the best choice
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GreenEarthEquities.Com © 2010
How Much Does It Cost? Estimates for GEE
properties:
1. Windows U=.30 $3000
2. Minisplit Heatpump with new ducts, $7500
3. Appliances incl Washer, Dryer,
Refrigerator, $ 45004. Lighting & Controls
$10005. Shell & Insulate
$30006. Ventilation System
$10007. Solar PV & DHW after
credits and rebates $15,000
8. Etc. $2000
Estimates for GEE properties:
1. Windows U=.30 $3000
2. Minisplit Heatpump with new ducts, $7500
3. Appliances incl Washer, Dryer,
Refrigerator, $ 45004. Lighting & Controls
$10005. Shell & Insulate
$30006. Ventilation System
$10007. Solar PV & DHW after
credits and rebates $15,000
8. Etc. $2000
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Where Does $37,000 Fit In The Cost Breakdown?Most Investors that you are competing with do
very little of this $37K list. Solutions:
1. Start with built in equity.
(find really good deals)2. Smart Selection of
finishes3. Wholesale pricing4. Make the Invisible
Visible5. True Believers for
buyers.6. Consider “Buy &
Hold”
Most Investors that you are competing with do
very little of this $37K list. Solutions:
1. Start with built in equity.
(find really good deals)2. Smart Selection of
finishes3. Wholesale pricing4. Make the Invisible
Visible5. True Believers for
buyers.6. Consider “Buy &
Hold”
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Q. How Can I Buy And Hold
If I Have Limited Funds?A. B-R-R-R Strategy
BuyRenovate
Re-FinanceRent
70 -75% Refinance Loans are easily available. =
Returns your cash for the next project.
A. B-R-R-R Strategy
BuyRenovate
Re-FinanceRent
70 -75% Refinance Loans are easily available. =
Returns your cash for the next project.
(Are you ready to be a landlord?)(Are you ready to be a landlord?)
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Get A Renovation Loan
Renovation Loans are available at Wells Fargo.
80% of appraised value of the completed project.
(ARV)
Combo construction and long term financing loan.
Returns all your capital to do the next project!
Wells Fargo Mortgage, not Bank
(No Recommendation or Affiliation)
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Other Programs For Renovators
1. EEM Energy Efficient Mortgages For Energy
Efficient Upgrades.
2. 203K loans. For any upgrades, but it works better for final owners
than investors.
3. AB-811, PACE funding. Brand new
option. Should work well for adding Solar. The cost is added to the tax
bill of the property.
Subsidized Low Rate For Early Adopters
1. EEM Energy Efficient Mortgages For Energy
Efficient Upgrades.
2. 203K loans. For any upgrades, but it works better for final owners
than investors.
3. AB-811, PACE funding. Brand new
option. Should work well for adding Solar. The cost is added to the tax
bill of the property.
Subsidized Low Rate For Early Adopters
?
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The Best Places That “Zero Energy” Makes
Sense
1. Good Sun (or Wind)
2. Expensive Energy
3. Credits and Rebates
4. Severe Climate, (hot or cold)
(Move your projects inland)
1. Good Sun (or Wind)
2. Expensive Energy
3. Credits and Rebates
4. Severe Climate, (hot or cold)
(Move your projects inland)
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Places Where It’s Harder To Make The Case For Zero
Energy 1. Central Europe*
(where Passive House originated and is thriving)Has very little sunshine
2. Places with much lower
utility bills.
When economics wont convince, only the “True Believers, and Pioneers will proceed. But there are getting to be more
and more of us.
1. Central Europe*(where Passive House
originated and is thriving)Has very little sunshine
2. Places with much lower
utility bills.
When economics wont convince, only the “True Believers, and Pioneers will proceed. But there are getting to be more
and more of us.
* 25% of all new construction in Austria meets Passive House standards....90% less energy than a
“code” house
* 25% of all new construction in Austria meets Passive House standards....90% less energy than a
“code” house
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When Shopping For A Project:
These built in features make a home easier to
achieve Net Zero.
Square or Rectangular FloorPlans.
Stucco ExteriorsSlab FloorsFlat Ceilings
Minimum Western GlassWest & East Protected by
Garage or trees or ???High Priced Utilities
These built in features make a home easier to
achieve Net Zero.
Square or Rectangular FloorPlans.
Stucco ExteriorsSlab FloorsFlat Ceilings
Minimum Western GlassWest & East Protected by
Garage or trees or ???High Priced Utilities
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Good Projects #2
1. The worst house in a GOOD Neighborhood.
2. Not the largest house in the
neighborhood
3. Some upgrades that you will be able to
use
4. Some reason to make the competitors
stay away
5. Solar availability
1. The worst house in a GOOD Neighborhood.
2. Not the largest house in the
neighborhood
3. Some upgrades that you will be able to
use
4. Some reason to make the competitors
stay away
5. Solar availability
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You’ll Need Plan B If:1. You spent too much
2. You mis-judged the neigborhood.
3. The Economy Changes
4. The Market Changes
5. Your Life Changes
6. Your Philosophy Changes
7. Your Options Change
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Review Of 8
Exit Strategies
At GreenEarthEquities.com
Type 90728 in the search box
For the 8 Exit Strategies.
***Know how you will get
out...Before you get in.
This should include at least:
Plan A, Plan B, &Knowing when to
change plans.
Summary on the next page
Summary on the next page
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1. Buy & Wholesale Flip2. Buy, Renovate & Retail To Homeowner
3. Buy, Renovate, Retail Flip With Discount Equity
4. Buy, Rehab, Seller Finance & Mortgage Note
5. Buy, Rehab, Rent, Cash Flow & Investor Flip
6. Buy, Rehab, Rent, Package & Sell to
Investor7. Buy, Rehab, Sell with
Lease Option.8. Buy, Rehab, Re-
Finance Equity & Rent
1. Buy & Wholesale Flip2. Buy, Renovate & Retail To Homeowner
3. Buy, Renovate, Retail Flip With Discount Equity
4. Buy, Rehab, Seller Finance & Mortgage Note
5. Buy, Rehab, Rent, Cash Flow & Investor Flip
6. Buy, Rehab, Rent, Package & Sell to
Investor7. Buy, Rehab, Sell with
Lease Option.8. Buy, Rehab, Re-
Finance Equity & Rent
My Favorite in last year’s Seller’s Market
Not enough room for Energy Package
Takes more money than most of us have
Takes more money than most of us have
Not enough room for Energy Package
Not enough room for Energy Package
This can move a hard to sell house.This can move a hard to sell house.
Opens up a bigger pool of buyers who aren’t as demanding of
concessions (may need to combine with #8 to get your cash back)
Opens up a bigger pool of buyers who aren’t as demanding of
concessions (may need to combine with #8 to get your cash back)
A good choice if Plan A (#2) doesn’t work. You get your money back and keep going
A good choice if Plan A (#2) doesn’t work. You get your money back and keep going
5 home minimum5 home minimum
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Blessed Are The FlexibleFor they shall not get
stuck with bad plans that aren’t working.
Know when to hold ‘em
When to fold ‘em(& change strategies)
One Plan might be to 1. do the renovation.
2. Market it for sale for a month, If it doesn’t sell,
3. Change strategies, Re-finance and rent ..... ?
For they shall not get stuck with bad plans that
aren’t working.
Know when to hold ‘em
When to fold ‘em(& change strategies)
One Plan might be to 1. do the renovation.
2. Market it for sale for a month, If it doesn’t sell,
3. Change strategies, Re-finance and rent ..... ?
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GreenEarthEquities.Com © 2010
Flip vs Buy & Hold
Benefits of Energy Wise Flipping
(For those who care about Green and the
Environment and Carbon Footprints)
(Most Investors dont)
Eliminate more blightMore Green Jobs
Improve NeighborhoodsIncrease Tax Base
More Carbon ReductionLess Reliance on Foreign
Oil.
Benefits of Energy Wise Flipping
(For those who care about Green and the
Environment and Carbon Footprints)
(Most Investors dont)
Eliminate more blightMore Green Jobs
Improve NeighborhoodsIncrease Tax Base
More Carbon ReductionLess Reliance on Foreign
Oil.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Spent Too Much OrMis-Judged The Neighborhood?
If you find potential buyers saying, “Great
house, but not quite the neighborhood we’re
looking for”... It may be time to switch plans
from #2 to #8.
It will require refinancing for you to stay in the
game
If you find potential buyers saying, “Great
house, but not quite the neighborhood we’re
looking for”... It may be time to switch plans
from #2 to #8.
It will require refinancing for you to stay in the
game
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GreenEarthEquities.Com © 2010
Changing Directions:Original Plan:
Retail Flip Strategy # 2
Changes:1. We mis-judged the
neighborhood.75% of potential buyers
discounted us for “neighborhood”
This home appraised $7000 under asking price (our first
one)
2. It’s become more of a buyer’s market
Original Plan:Retail Flip Strategy # 2
Changes:1. We mis-judged the
neighborhood.75% of potential buyers
discounted us for “neighborhood”
This home appraised $7000 under asking price (our first
one)
2. It’s become more of a buyer’s market
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Challenges Of Changing:
Line of Credit Money is great for flipping but
not for holding
Solution: #8 BRRR (Refinance)
Refinance Details5.25% 30 years70 - 75% finance
This gets all or most of our cash back to do the
next project.
Line of Credit Money is great for flipping but
not for holding
Solution: #8 BRRR (Refinance)
Refinance Details5.25% 30 years70 - 75% finance
This gets all or most of our cash back to do the
next project.
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Maximum FlexibilityWith the Refinance
in place we are not locked in to any option.
We can:
1. Rent It.
2. Lease-Option It
3. Sell It
With the Refinance in place
we are not locked in to any option.
We can:
1. Rent It.
2. Lease-Option It
3. Sell ItThe low appraisal makes it less likely we’ll sell it now
Especially since it is renting for a healthy cash flow.The low appraisal makes it less likely we’ll sell it now
Especially since it is renting for a healthy cash flow.
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GreenEarthEquities.Com © 2010
CraigsList To Rent, Lease Or Sell
CraigsList has sections for Rentals and Sales.
Both Work Well.
You must keep your ads separate
You’ll need membership
in a credit bureau or way to check
credit and rent history.
CraigsList has sections for Rentals and Sales.
Both Work Well.
You must keep your ads separate
You’ll need membership
in a credit bureau or way to check
credit and rent history. Thanks, Craig Newmark!Thanks, Craig Newmark!
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Other Options:1. We could have
LOWERED THE PRICE and sold for cash.
Not totally out of the question but definitely
not a first option.
We have found that people with “A” credit seem to demand more concessions. This is also more common
when the property is listed on MLS.
1. We could have LOWERED THE PRICE
and sold for cash.
Not totally out of the question but definitely
not a first option.
We have found that people with “A” credit seem to demand more concessions. This is also more common
when the property is listed on MLS.
Oh,No!Oh,No!
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Benefits of BRRR #8
1. Cash Flow (spouse happy)
2. If Market goes up, I will benefit from the increase.
3. No Tax Consequences until
the property is sold.4. Appraisal issue is pushed into the future when it will
be irrelevant.5. $ available to Re-invest6. Freedom to pursue Zero
Energy with 3KW PV system
1. Cash Flow (spouse happy)
2. If Market goes up, I will benefit from the increase.
3. No Tax Consequences until
the property is sold.4. Appraisal issue is pushed into the future when it will
be irrelevant.5. $ available to Re-invest6. Freedom to pursue Zero
Energy with 3KW PV system
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GreenEarthEquities.Com © 2010
10 Ways To Add Value
There are many ways
To Add Value in order
to justify the profit that comes from
Buying Low & Selling High.
There are many ways
To Add Value in order
to justify the profit that comes from
Buying Low & Selling High.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
The 3 Package System
1. The Energy Package
2. The Wow! Package
3. The Done Package
1. The Energy Package
2. The Wow! Package
3. The Done Package
(It works better when they all work
together)
(It works better when they all work
together)
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GreenEarthEquities.Com © 2010
Energy Package
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1. New HVAC system, Stainless Steel Heat Exchanger2. Manual J sizing, usually half of previous capacity
3. New R-8 short mylar ducts partially buried4. Manual D with tight seal and test5. Extra Return Duct in Master Suite
6. New LoE2 windows and Patio Doors7. Low E 140 at west windows
8. Deciduous Trees planted selectively9. Shell Sealing of floor & ceiling with test
10. Attic Insulation to R-50 11. Occupancy sensors
12. Gas Stove and Dryer options13. Ceiling Fans at all sleeping and living rooms
14. Panasonic Ventilation with controls
En
erg
y
Packa
ge
En
erg
y
Packa
ge
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Wow! Package
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1. Granite Counters at Kitchen & Baths2. Extra Deep Stainless Steel Sink
3. Designer Spray Faucet4. Italian glass tile backsplash
5. Under Counter Lighting6. All wood Maple Cabinetry
7. Crown Molding and Tall Baseboard8. All new interior doors & stepped trim
9. New Front Door with Art Glass10. Tile & Travertine floors
11. Engineered Wood Laminate Floors12. Designer tile and faucets at baths
13. Chair Rail, , Wainscoating & 3 tone paint14. Designer Light fixtures & ceiling fans
15. All New Stainless Steel Appliances16. Newly Textured Ceilings (no popcorn)17. Carpet & Pad with quality you can feel
18. Sculptured Exterior Trim
Wow
! Pa
ckag
eW
ow
! Pa
ckag
e
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Done Package
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GreenEarthEquities.Com © 2010
1. New Front and Back Lawn2. Automatic Sprinklers with timer
3. New 30 - 50 year roof4. New Roll-up Garage Door with Openers
5. Gutters6. New 2 inch faux wood blinds
7. Major Professional Tree Trimming8. Sewer line renovated as necessary9. All new oil rubbed bronze hardware
10. New Energy Star Appliances with Warrantees11. New Windows and HVAC with Warrantees
12. Upgraded Carpet with 6 lb pad 13. Deciduous Trees placed for Energy Efficiency
Done
Packa
ge
Done
Packa
ge
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4. Fix A White Elephant
Renovate a Nasty Pool Remove An Illegal Addition
(These were both on the same house!)(These were both on the same house!)
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GreenEarthEquities.Com © 2010
5. Add A RoomWorks best when adding to make a
more desirable Bed-Bath configuration.
(add a Master Suite to make a 3-1 into a 4-2)
(the neighborhood must be able to
sustain the larger home)
Works best when adding to make a
more desirable Bed-Bath configuration.
(add a Master Suite to make a 3-1 into a 4-2)
(the neighborhood must be able to
sustain the larger home)
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GreenEarthEquities.Com © 2010
6. Renovate Obsolete Floorplans
Boxy RoomsRemove Walls
Open Floor Plans
Bars & IslandsNo Thru Rooms
To Rooms
Boxy RoomsRemove Walls
Open Floor Plans
Bars & IslandsNo Thru Rooms
To Rooms
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GreenEarthEquities.Com © 2010
7. Toward Zero:
Add SolarAfter the tight
envelope and good HVAC
Wipe out the remaining electric
load with a Solar PV system. Domestic Hot Water can be done with Solar Assist or a Heat
Pump Water Heater.
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8. Offer Creative Financing
Lease Option, Owner Carry, or Contract Sale
Opens up the HUGE group of buyers who cannot qualify at B of A etc
Some of these are really good people who deserve
a chance.
Some are not!
Discerning the difference is your job.
Lease Option, Owner Carry, or Contract Sale
Opens up the HUGE group of buyers who cannot qualify at B of A etc
Some of these are really good people who deserve
a chance.
Some are not!
Discerning the difference is your job.
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Creative Financing Possibilities
Creative Financing Possibilities
Help People = Feels Good,
Right thing to do, etc.
Sell your product when others cant = Yahoo!
Sell for a higher price= Double Yahoo!
Eliminate Sales, Marketing and Finance
Costs =
More money for the Energy Package (or Your Bank Account)
Help People = Feels Good,
Right thing to do, etc.
Sell your product when others cant = Yahoo!
Sell for a higher price= Double Yahoo!
Eliminate Sales, Marketing and Finance
Costs =
More money for the Energy Package (or Your Bank Account)
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GreenEarthEquities.Com © 2010
9. Become A Realtor
More Options To Further The Mission.
Commission on your own projects
Access to MLS
Professionalism
More Options To Further The Mission.
Commission on your own projects
Access to MLS
Professionalism
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GreenEarthEquities.Com © 2010
10. Become A Rater
(or at least qualified to be one)
Get the trainingCBPCA, & others leading
to BPI Certification.
GreenBuildingAdvisor.com
(Musings of an Energy Nerd & Green Building
Curmudgeon)
Knowledge Is Power
You may or may not want to do ratings. For credibility, the industry
expects “3rd party” certification
Get the trainingCBPCA, & others leading
to BPI Certification.
GreenBuildingAdvisor.com
(Musings of an Energy Nerd & Green Building
Curmudgeon)
Knowledge Is Power
You may or may not want to do ratings. For credibility, the industry
expects “3rd party” certification
SavingThe PlanetOne HouseAt A Time
GreenEarthEquities.Com © 2010
Thank You!
You’ve been very patient and absorbed a lot.
If you missed a point or 2,
Everything and more is at
GreenEarthEquities.com
In the PlanetSavers
University
(Leave Email address for downloadable copies)
In The Energy Wise
Renovating Army!