Energy-Wise Renovations

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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 ions from Skeptics, Professionals & Gurus Original Hypotheses in Foreclosure Renovation:

Transcript of Energy-Wise Renovations

Page 1: Energy-Wise Renovations

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:

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Closing Escrow next weekFeatures: Low E2 windowsR-50 InsulationNew HVAC systemR-8 Ducts, sealed & testedComplete Shell SealingMore…(see Energy Package)

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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.

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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,

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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,

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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

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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)

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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

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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

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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

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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!

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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?

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Construction Sign & Real Estate Sign better than

either alone

Construction Sign & Real Estate Sign better than

either alone

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We buy Ugly Houses

We buy Ugly Houses

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The more vandalism,

The better (the price)

The more vandalism,

The better (the price)

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Not too smart taggerBurt couldn’t say much in

court

Not too smart taggerBurt couldn’t say much in

court

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We love ugly houses!

We love ugly houses!

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Deferred Maintenance

Deferred Maintenance

18

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Most Investors hate all pools, especially green

ones = Opportunity

Most Investors hate all pools, especially green

ones = Opportunity

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Pool Cleaned Up Nice Patio Cover for Outside

Living

Pool Cleaned Up Nice Patio Cover for Outside

Living

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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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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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Almost Finished. Warm light is from colored

glass tiles

Almost Finished. Warm light is from colored

glass tiles

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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”

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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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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.

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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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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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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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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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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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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.

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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,

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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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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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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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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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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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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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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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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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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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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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How much is this photo worth?

How much is this photo worth?

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Different Strokes for Different Folks!Different Strokes

for Different Folks!

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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.

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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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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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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.

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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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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)

Page 71: Energy-Wise Renovations

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)

Page 72: Energy-Wise Renovations

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.

Page 73: Energy-Wise Renovations

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.

Page 74: Energy-Wise Renovations

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.

Page 75: Energy-Wise Renovations

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

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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.

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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?

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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”

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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

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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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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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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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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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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.

Page 86: Energy-Wise Renovations

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.

Page 87: Energy-Wise Renovations

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.

Page 88: Energy-Wise Renovations

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

Page 89: Energy-Wise Renovations

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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)

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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.

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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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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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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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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.

132

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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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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.

Page 173: Energy-Wise Renovations

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!

Page 183: Energy-Wise Renovations

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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

Page 184: Energy-Wise Renovations

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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)

Page 186: Energy-Wise Renovations

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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)

Page 188: Energy-Wise Renovations

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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

Page 189: Energy-Wise Renovations

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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.

Page 190: Energy-Wise Renovations

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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)

Page 204: Energy-Wise Renovations

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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!

Page 235: Energy-Wise Renovations

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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

Page 236: Energy-Wise Renovations

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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)

Page 237: Energy-Wise Renovations

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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

Page 238: Energy-Wise Renovations

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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)

Page 239: Energy-Wise Renovations

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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

Page 240: Energy-Wise Renovations

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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)

Page 241: Energy-Wise Renovations

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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

Page 242: Energy-Wise Renovations

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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

Page 243: Energy-Wise Renovations

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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

Page 244: Energy-Wise Renovations

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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.

Page 245: Energy-Wise Renovations

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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

Page 246: Energy-Wise Renovations

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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.

Page 248: Energy-Wise Renovations

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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.

Page 249: Energy-Wise Renovations

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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!

Page 250: Energy-Wise Renovations

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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

Page 251: Energy-Wise Renovations

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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

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“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....

Page 253: Energy-Wise Renovations

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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?

Page 254: Energy-Wise Renovations

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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)

Page 255: Energy-Wise Renovations

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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?

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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!)

Page 257: Energy-Wise Renovations

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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?

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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

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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

Page 260: Energy-Wise Renovations

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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!

Page 261: Energy-Wise Renovations

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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

Page 262: Energy-Wise Renovations

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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!

Page 263: Energy-Wise Renovations

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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.

Page 264: Energy-Wise Renovations

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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!

Page 265: Energy-Wise Renovations

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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

Page 266: Energy-Wise Renovations

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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

Page 267: Energy-Wise Renovations

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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!

Page 268: Energy-Wise Renovations

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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

Page 269: Energy-Wise Renovations

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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

Page 270: Energy-Wise Renovations

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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

Page 271: Energy-Wise Renovations

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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!

Page 272: Energy-Wise Renovations

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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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Page 273: Energy-Wise Renovations

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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!

Page 274: Energy-Wise Renovations

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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

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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

Page 276: Energy-Wise Renovations

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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

Page 277: Energy-Wise Renovations

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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.

Page 278: Energy-Wise Renovations

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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________!”

Page 279: Energy-Wise Renovations

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Time For A New Brand?

Or Just An Expanded Menu?Or Just An Expanded Menu?

Page 280: Energy-Wise Renovations

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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

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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

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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

Page 283: Energy-Wise Renovations

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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

Page 284: Energy-Wise Renovations

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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

Page 285: Energy-Wise Renovations

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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

Page 286: Energy-Wise Renovations

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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.....

Page 287: Energy-Wise Renovations

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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

Page 288: Energy-Wise Renovations

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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)

Page 289: Energy-Wise Renovations

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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:

Page 290: Energy-Wise Renovations

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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!

Page 291: Energy-Wise Renovations

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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:

Page 292: Energy-Wise Renovations

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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!

Page 294: Energy-Wise Renovations

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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.

Page 295: Energy-Wise Renovations

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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!

Page 296: Energy-Wise Renovations

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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

Page 297: Energy-Wise Renovations

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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)

Page 298: Energy-Wise Renovations

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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.

Page 309: Energy-Wise Renovations

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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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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.

Page 312: Energy-Wise Renovations

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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:

Page 316: Energy-Wise Renovations

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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.

Page 318: Energy-Wise Renovations

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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

Page 320: Energy-Wise Renovations

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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

Page 322: Energy-Wise Renovations

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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

ww

w.r

en

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ab

ility

.com

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pip

e/in

dex.h

tml

Water Heat Recovery Pipe

Page 325: Energy-Wise Renovations

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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

Page 328: Energy-Wise Renovations

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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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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?)

Page 333: Energy-Wise Renovations

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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)

Page 334: Energy-Wise Renovations

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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

?

Page 335: Energy-Wise Renovations

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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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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.

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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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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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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!

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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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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.

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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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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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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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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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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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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.

Page 364: Energy-Wise Renovations

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)

Page 365: Energy-Wise Renovations

SavingThe PlanetOne HouseAt A Time

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

Page 366: Energy-Wise Renovations

SavingThe PlanetOne HouseAt A Time

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

Page 367: Energy-Wise Renovations

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!