Renovating America Right: How? Why? & Why Not?
(Why not now? - Why not me?) 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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The Challenge: Renovating Americaâ€™s Existing Residential Housing Stock Of all the houses that we will live in by 2050, 60% of them are already here. And they are pretty poorly built. (Energy wise) This is our OPPORTUNITY This is our CHALLENGE 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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The Challenge: Renovating Americaâ€™s Existing Residential Housing Stock Existing Residential is totally different from New Construction In new construction, you just change the codes and wait and manage the new building as it comes along. This is in process and has been growing for the last 2 decades. 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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The Residential Challenge: Challenges with Existing Residences: 1. Owners are Americans and dont want to be told what they have to do. It’s been that way since at least July 4, 1776! 2. Contractors are Americans and also dont like to be told what they have to do. 3. “We’ve always done it that way” 4. “Cheapest Bid” 5. Homeowners budgets are already strained to the max. 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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The Solution: Renovation of Foreclosed Homes by Energy-Wise Investors (not necessarily Contractors)
The current flood of foreclosed homes is a GOLDEN OPPORTUNITY to do significant Energy Renovation to many homes. Consider the benefits: 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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Benefits of Renovating Foreclosed Homes: 1. Many homes are available at 33% of what they cost in 2006. 2. The surrounding neighborhoods have not taken that great a hit. (Usually only 20 - 40%, depending on the area) 3. This loss of equity allows a â€œspreadâ€? between purchase price and selling price after renovation that allows an adequate budget for Energy Renovation 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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Benefits of Renovating Foreclosed Homes: 4. As an Energy-Wise Investor, there is no homeowner to sell. 5. There is no homeowner budget (which always seems too tight) 6. The house is empty during renovation, which provides logistics benefits. 7. The Energy Wise Investor just gets to do the highest and best renovation they can conceive of. As long as: 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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Benefits of Renovating Foreclosed Homes: 8. The project must sell at the end. (unless the investor wants to rent it, which is not a bad strategy) This requires some expertise in: Real Estate Remodeling Home Performance Providing the â€œblendâ€? of these 3 disciplines is the purpose of this site 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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It Takes A Team Few people have all the expertise needed to be an â€œArmy of Oneâ€? And even if they did, their impact would be limited because God only issues us 24 hours each day. By creating a Team, no one has to have all the expertise. And the team can do more than the Army of One anyway. 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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Typical Team Members Realtor Contractor Subcontractors Escrow Officer Inspectors Banker Loan Broker Home Performance Tester You, The Investor, 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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The Energy Wise Investor’s Job and Purpose 1. To maintain the vision and keep the business on track --- saving the planet, one house at a time. 2. To keep finding the next project. 3. To have input and final say about what goes into each project. 4. Continual education to ensure that you are truly “Energy Wise” and are really making the best decisions. 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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The Energy Wise Investorâ€™s Options 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. 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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Benefits For Communities & The Planet: Homes with full Energy-Wise Renovation as described on this site provide: 1. Increased Tax Base 2. Raised values in neighborhoods. 3. Vacant foreclosed eyesores removed. 4. Green Jobs. 5. Fewer VOCâ€™s 6. Less Greenhouse Gas (Whatâ€™s to not like about that?) 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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1. No Government Funding or Utility Company assistance needed (This leaves more public monies to address areas where Energy Wise House Flipping will not work.) 2. No government mandates to adhere to. (this works well with the American independent and entrepreneurial spirit) (This spirit and the vision of what can be is the main essential for this plan to work. The rest is team building.) 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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More Benefits: Becoming an Energy Wise Investor, Renovating Foreclosed Homes may be a great opportunity for: 1. Someone who has been â€œdownsizedâ€? 2. Someone looking to do a great thing for their community and the planet. 3. All the many people working in the emerging Home Performance Industry who would become more practical in their creation & implementation of energy policy if they were to do even 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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To look further at the WHY and HOW of Energy-Wise Renovation of Foreclosed Homes let me review a poster presented at Affordable Comfort Conference last April in Kansas City BTW itâ€™s in Austin TX next year mark your calendars
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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Original Hypotheses in Foreclosure Renovation: 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
Questions from Skeptics, Professionals & Gurus:
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. 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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Closing Escrow next week Features: Low E2 windows R-50 Insulation New HVAC system R-8 Ducts, sealed & tested Complete Shell Sealing Moreâ€Ś(see Energy Package) 18
Purchasing Homes in Close Proximity Allows: 1. Saving of fuel and travel time (green!) 2. We can control the â€œCompsâ€? and Influence Appraisals after the first one.
The Wow! Package 1. Granite Counters at Kitchen & Baths 2. Extra Deep Stainless Steel Sink 3. Designer Spray Faucet 4. Italian glass tile backsplash , s i 5. Under Counter Lighting h T e d 6. All wood Cabinetry u l c n I 7. Crown Molding and Tall Baseboard 8. All new interior doors and trim 9. New Front Door with Art Glass 10. Tile & Travertine floors 11. Engineered Wood Laminate Floors 12. Designer tile and faucets at baths 13. Chair Rail, , Wainscoating & 3 tone paint 14. Designer Light fixtures & ceiling fans 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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The Done! Package 1. New Front and Back Lawn 2. Automatic Sprinklers with timer 3. New 30 - 50 year roof 4. New Roll-up Garage Door with Openers 5. Gutters 6. New 2 inch faux wood blinds , s i h T 7. Major Professional Tree Trimming d n A 8. Sewer line renovated as necessasry 9. All new oil rubbed bronze hardware 10. New Energy Star Appliances with Warrantees 11. New Windows and HVAC with Warrantees 12. Upgraded Carpet with 6 lb pad 13. Deciduous Trees placed for Energy Efficiency 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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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 test n 5. Extra Return Duct in Master Suite a c e s 6. New LoE2 windows and Patio Doors w i h So all t 7. Low E 140 at west windows e l l e S rytim 8. Deciduous Trees planted selectively e v 9. Shell Sealing of floor & ceiling with test E 10. Attic Insulation to R-50 11. Occupancy sensors 12. Gas Stove and Dryer options 13. Ceiling Fans at all sleeping and living rooms Saving 14. Panasonic Ventilation with controls The Planet 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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We Buy Ugly Houses (the uglier the better)
The Cinderella Wow! Conversion in our Energy Wise Renovations Allows us to include Serious Energy Retrofits! 23
Wannabe Remodelers Many 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 24
Oh, Honey, I love it! Letâ€™s buy this one....
How Green is (sometimes) Sold
Well, they have those Energy Stars and the carpet is made out of recycled Pepsi bottles so I guess we might as well...
Energy-Wise Renovator The Planet Community
The Homeowner Wins With Lower Bills and Increased Comfort The Community Wins With New Jobs, More Home Ownership & Increased Property Values
The Planet Wins With Less Carbon Emissions The Investor Wins And Gets To Keep A Little Green
A True Win, Win, Win, Win Strategy! 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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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!
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.)
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.
Let’s Build With 1000 Businesses across the country An Army! 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, Learn Energy-Wise House Flipping Conference Calls Tue 6:00 pm PST Dial in 605.475.4800 Access 795323# On Site Renovation training monthly 27
Message to all Mayors, Governors and Presidents •
Foreclosed homes present a unique golden opportunity to greatly improve the real estate values and the quality of life in your jurisdiction. By including Energy-Wise Renovation with lower carbon footprints, these homes will improve your communities, and the lives of your citizens
Dont miss this opportunity. If these foreclosed homes are quick flipped with carpet and paint and remain energy guzzling rentals, your community and the planet will suffer. Doing it later will be very expensive and probably just wont happen.
Ensure that funding for foreclosures programs requires significant home performance. No public funds should go to conventional “house flipping” that does not include home performance retrofitting.
In many cases this can be done with no expenditure of tax dollars at all. Ask me how. I’ll be glad to share what’s working for me Respectfully, David J Robinson 559 994 9477 DJR5650@Mac.Com 28
Tale of 2 Foreclosures - True (sad) Story $70,000 $10,000 Renter Zero No Change Zero Lowered Dragged Down Praying for Economy
$70,000 Purchase Price $50,000 Improvements $ Proud New HomeOwner Occupant Everything Energy Retrofit Reduced Carbon Footprint Yes Green Jobs Raised Tax Base Lifted Up Neighborhood Deposit $ & Repeat Investor-Renovator
Which would you rather have next door to you? 29
Opportunities Pass What Can Be Done? This has been one teamâ€™s answer. What Will You Do?
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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WHY NOT? Why not now? Why not my community? Why not me?
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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Factors To Consider This is not for everyone. But it could be for almost everyone who would be reading this. (Two of my favorite mentors, now both multi millionaires in Real Estate started as a. IBM bookkeeper and Waitress b. 20 year old gang banger in Oakland.) The Paycheck vs Profit Issue Have you gotten a paycheck for so long that your mind is closed to profits? 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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Factors To Consider This is not for everyone. But it could be for almost everyone who would be reading this. The Challenge is not Skill or Talent or Money. Any Skill or Talent that you are missing can be provided by your team Money is everywhere, when you know where to look 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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Factors To Consider The heart of the matter is Vision. Can you â€œSEEâ€? yourself as an Energy Wise Investor, making a difference in your community? (and making money in the American free enterprise system?) To help more people see this vision and act on it is the purpose of this site. In addition: 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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For Those Who Are Serious To help build the Army of Visionary Energy Wise House Flipping Investors: I have begun spending one morning a week riding around together with those interested to check my various jobs in process. This allows good discussion and you can â€œseeâ€? what I do and what this site is talking about. If you are interested call or email 559 994 9477 email@example.com 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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