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 Electric Shoot for Net Zero with Grid-Tied Solar PV G r e e n E a r t h E q u i t i e s . C o m
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Saving The Planet One House At A Time
Benefits of Zero 1. Measurable Without a Target, How will you know if you are doing anything good? 2. Easy To Understand 3. It stands clearly defined, regardless of rebates, incentives, stimulus funding or the lack thereof. Compare HERS rating, Green Point Rating etc G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
If You Cant Get To Zero How Close Can You Get? Good to have the easily defined target. Use it to evaluate: Potential Purchases Quality of the Renovation Marketing & Promotion G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
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. Depending on the budget: NEAR Net Zero may be the best choice * PG&E G r e e n E a r t h E q u i t i e s . C o m
© 2010
Saving The Planet One House At A Time
Q. How Much Does It Cost? A. In New Construction, Trade-offs can be used, (smaller HVAC systems to pay for better envelopes) along with better design can bring a zero energy home in at 5-15% more than a code home. A. In Renovation, if the best is compared to a “good” upgrade, the costs can range from 10 to 40%. This is where fixing the house first with a good envelope and mechanicals is essential G r e e n E a r t h E q u i t i e s . C o m
© 2010
Saving The Planet One House At A Time
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, $ 4500 4. Lighting & Controls $1000 5. Shell & Insulate $3000 6. Ventilation System $1000 7. Solar PV & DHW after credits and rebates $15,000 8. Etc. $2000 G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
Where Does $37,000 Fit In The Cost Breakdown? Consider that most Flippers and 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 finishes 3. Wholesale pricing 4. Make the Invisible Visible 5. True Believers for buyers. 6. Consider “Buy & Hold” G r e e n E a r t h E q u i t i e s . C o m
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Saving The Planet One House At A Time
Q. How Can I Buy And Hold If I Have Limited Funds? A. B-R-R-R Strategy Buy Renovate Re-Finance Rent 70 -75% Refinance Loans are easily available. This should give you most or all of your hard costs back with which to do the next project.
(This brings the issues of being a landlord) G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
Get A Renovation Loan Renovation Loans are available at Wells Fargo. They loan 80% of appraised value of the completed project. (ARV) It is a combination construction and long term financing loan. This should surely get you all your capital back to do the next project. Wells Fargo Mortgage, not Bank
(No Recommendation or Affiliation)
G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
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 G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
The Best Places That “Zero Energy” Makes Sense 1. Good Sun (or Wind) 2. Expensive Energy 3. Credits and Rebates 4. Severe Climate, (heat or cool) G r e e n E a r t h E q u i t i e s . C o m
© 2010
Saving The Planet One House At A Time
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.
* 25% of all new construction in Austria meets Passive House standards....90% less energy than a “code” house G r e e n E a r t h E q u i t i e s . C o m
© 2010
Saving The Planet One House At A Time
Mc Mansions are a peculiarly American phenomena of the last 2-3 decades. No where else in the world or time in history has 4000 sq ft been “necessary” to house a family of 4.
Dont Super Size New Construction Or Renovation!
A plan I looked at in Virginia Finding Good Design under 2500 square feet is difficult. The Builders just dont provide it.... But of course they are listening Saving The Planet to the demand of the market.... One House G r e e n E a r t h E q u i t i e s . C o m
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At A Time
Difficult To Renovate To Zero Extra, Unused Rooms still need Cooling Heating Cleaning Maintenance Taxes Paid. A Growing Number who have experienced these are now looking to Downsize.
First Floor
G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
The Market is ripe for “Downsizing” Homes. The Boomer Generation is looking for: Good Design Quality Finish, Environmentally Responsible homes with Less Footage To Care For
Downsize or Right Size?
Second Floor G r e e n E a r t h E q u i t i e s . C o m
© 2010
Saving The Planet One House At A Time
Houses of 1000 to 2000 sq ft are easier to renovate to Zero. Focus on this growing market. “Fixing” McMansions is an exercise in frustration if Zero is your goal.
Basement
G r e e n E a r t h E q u i t i e s . C o m
© 2010
Saving The Planet One House At A Time
When Shopping For A Project: These built in features make a home easier to achieve Net Zero. Square or Rectangular FloorPlans. Stucco Exteriors Slab Floors Flat Ceilings Minimum Western Glass West & East Protected by Garage or trees or ??? High Priced Utilities G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
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 G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time