91201 all the testing you need, and none that you dont

SavingThe PlanetOne HouseAt A Time

G r e e n E a r t h E q u i t i e s . C o m © 2009

All The Testing & Certification You Need....And None That You Dont

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



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)



So What’s So Different?The Differences

1. Testing2. Certification

3. Third Party Inspection4. Computer Modeling5. Energy Guarantees

6. Marketing and Sales Expense7. Buyers Knowledge

8. Buyers Expectations

These are common in Home Performance Contracting but not

in Energy-Wise Renovation of Investor Owned Foreclosures

Let’s explore the reasons:



GreenEarthEquities.Com Projects Done &

In the Pipeline

7

5

6

43

12

Tarpey

North

Cluster

Tarpey

South

Cluster

Quick Review Of G.E.E. Principles1. Work only on our own properties,

2. Select an area and stay in it.3. Sell to first time home buyers4. 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 #210. Demand Wholesale Pricing

11. In & Out Quickly12. Do everything short of

Renewables, almost everytime.13. $100K spread 20-20-20-20-20



TestingThe value of Testing is either:

1. If you dont know what to do --2. Test, then convince the customer that

you know what to do3. The Program requires testing

This is appropriate on complicated & one of a kind houses.

We work in very simple houses that are all the same & do “everything” & have

no customers to convince.

So we perform tests essential to good Home Performance (blower door, duct

blast, CO) but none to help make the sale or fit into an

incentive program.



Testing #2Other Factors On When To Test

1. Everything that would be tested for air tightness usually goes away in

the dumpster. (HVAC, Ducts, Registers, Doors, Weatherstrip, Windows, etc) This renders a

complete Test In useless. Instead specific testing is done with the

specific work.

2. Looking at previous bills for modeling purposes is impractical in foreclosed homes because they have been empty for 6 to 18 months or

more and the previous owner is not available.



GreenEarthEquities.Com3332 N Ezie Ave.

At GreenEarthEquities all we do is Energy Wise Renovation of homes. Each item that goes into our homes must address

one of these three objectives:

! 1. "Energy Efficiency

! 2. "Wow! Factor

! 3. "Done! Factor

This is what we chose to do to meet those objectives on this home:

Energy Efficiency

1. "All new dual pane windows. ""

2. "Big west window is Low E 140 (nearly twice the resistance to Solar Heat Gain as LoE2)

3. "Deciduous tree will be properly selected and planted to aid summer shading.

4. New Trane Air Conditioner and Furnace

5. New Engineered Duct System (ACCA Manual D) R8 Mylar Coated

6. "Shell Sealing of cracks and holes in the attic at the ceiling level.

7. "Attic insulation to R-50+ : far above Energy Star Standards for brand new homes.

8. "Wall Insulation with dry packed cellulose. "The subdivision originally had no wall insulation.

9. "Gas stove and gas option for the dryer. " Electric is available at both locations also.

10. "Dual pane and foam core front entry door

11. "Upgraded ceiling fans in every room

Wow! Factor

1. New Cabinets throughout in Kitchen and both baths. Real Wood throughout, no particle board.

2. "Matching Granite Counters in Kitchen and both baths.

3. "New Hood Fan Microwave

4. "New Gas Stove and Oven

5. "New Dishwasher"

6. "New Disposal

7. "New Deep Stainless Steel Sink with premium faucet and spray

8. "Travertine Floors in Kitchen and Baths with Custom Tile showers with Shampoo Shelves and accent tiles

9. "Designer 2 and three tone painted interior

10. "Crown molding and chair rail with wainscoat

11. "Designer 3 tone paint exterior with New Dash over sculptured trim at windows, doors, & corners.

12. "All ceilings have been replaced with new designer texture and paint

The “Done” Factor ! (Ready to move in with minimum work and maintenance for a LONG time)

1. "New front and back lawn

2. "Automatic sprinklers front and back

3. "Finished Garage, Drywall and painted

4. "Sewer line recently serviced and encroaching tree roots removed.

5. "Recently replaced 30 year roof

6. "New Roll Up Garage Door with new automatic opener

7. "Recently replaced water heater

8. Newer carpet 3 grades up from FHA standard, normal in renovation,

with 6 lb pad. (4 lb is normal)

9. "New receptacles, new switches and covers

10. "New six panel doors and new hardware.

11. "New light fixtures

12. "New faux wood blinds.

13. "Additional return duct in master suite so the comfort system

continues to work with the door closed."

We value your opinion. How do you think we did toward meeting our objectives?

What would be one or two things that you would change to make this home more desirable? ! ! Waterfront View!

Thank You

Dave Robinson, Ben Carroll, Rogelio Covarrubius, Jennifer Martin

CertificationCertification is valuable in the

Contracting Business. It gives you something to sell. Something to

differentiate you from the competition.

Of course it costs money. Time, training, equipment, etc.

You hope that it generates more additional than it costs.

The First Time Home BuyerA. Doesn’t care very much

about Energy or GreenB. We double their knowledge on

Efficiency and Green in the Sales Process



3rd Party InspectionThird Party Inspection is valuable when there is a universe of “bad

actors” who would do bad work and need policing. This is even more

essential with sophisticated buyers shopping for contracting services

We do good work, police ourselves, do our own essential testing and skip the costs of participation in 3rd party

tested programs.

This savings is part of the reason that we can squeeze all of the value into

our projects to make them compelling offers that sell quickly without aid or

cost of “Programs”



Computer ModelingLike Testing, Computer Modeling is good in one of a kind, custom construction where I might not

know what to do. It also helps convince a customer that they are dealing with the right

contractor.

Homebuyers are not that interested. I have not been asked

once about Certification. My buyers are happy to hear about all the energy saving items, but it’s me telling them more things than they

were expecting.



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.



Dave RobinsonPrincipal

GreenEarthEquities.Com

Energy Wise Renovation

*$165,000 5,5% fixed rate,

$10,000 down. Includes

principal, interest only. Other

down payments or terms will

require different payments.

Qualifications depend on lender

guidelines. Not all people qualify.

Estimated total payment with

taxes and insurance should be

less than $1,111 per month.

Why Rent? Buyers can own this Clovis School District home for $880

per month*

About GreenEarthEquities

& SmartEnergyHomes At GreenEarthEquities we

acquire distressed properties in prime neighborhoods and

renovate them with 3 goals in mind: The Energy Factor , The

Wow! Factor, and It’s All Done! Buyers enjoy lower utility bills and more comfort, every month in their Low

Maintenance SmartEnergyHome.TM

4 Bedroom, 2 Bath 1362 sq ft.Living & Dining Rooms

Built 1960, Re Built 2009See p.2 for more details.

Thank you for visiting

3332 N Ezie

For more information: Jennifer Martin 259 8153

The Right Neighborhood: Clovis Schools. Established neighborhood with tree lined streets. Close to Sierra Vista Mall, Old Town Clovis, Bus Lines,Shopping & Parks. 244 employers and over 10,000 jobs are within a 2.5 miles radius.

Marketing & SalesWhen Contracting with Homeowners

a huge amount of effort goes into marketing and sales. I was reminded of

this at a recent Home Show. Entry Fees, Set-up, Staffing, giveaways,

literature, and sore feet. It adds up.

As an Energy Wise Investor, I skip all of that. This is just more savings that

we can pass on in making the compelling package for the buyer.

We do a little marketing for buyers, This brochure is superior to the typical realtor one page brochure and helps us

control our comps and appraisals.



GreenEarthEquities.Com Projects Done & In the Pipeline

Our business plan dictates that we renovate and sell rapidly. We plan that many homes will be sold before they reach MLS. All homes will be offered to the group of Preferred Realtors for 7-14 days before listing in MLS. For details and to be alerted of new projects as they become available contact Jennifer Martin 259 8153

Because all of our homes will be done in less than the 90 day FHA minimum hold time, we will consider “Owner Financing” and are seeking appropriate funding to support those transactions.

We are also have a program to give preference to Veterans.

Address Details ListPrice

Completion Target

#15741 E Bernadine

1574 sf 3-2 LR & Fam 1959Corner Lot, RV access, Wow! Done! And Energy Packages

$185,000 Jan 15, 2009

#23328 N Purdue

1164 sf 4-2 50 year roof, covered patio, Wow! Done! And Energy Packages

$138,500 Feb 10, 2009

#35664 E Bernadine

1404 sf 3-2 LR & Fam 1962 pool Drive Thru Garage, Wow! Done! And Energy Packages

$185,000 Feb 20, 2009

#43332 N Ezie

1362 4-2 LR & Dining 1960 Possible RV parking Wow! Done! And Energy Packages

$165,000 June 1, 2009

#54404 N Eddy

1348 sf 4-2 Great Room, RV Access, Huge Corner Lot, Wow! Done & Energy Packages

July 4, 2009

#65967 E Fedora

1188 sf 3-2 1971 Great Room, Custom Kitchen, Wow!, Done! & Energy Packages Possible RV

$155,000 July 15, 2009

#7145 Gettysburg

1171 sf 3-2 1971 Great Room, Custom Kitchen, Wow! Done! And Energy Packages

$169,000 July 4, 2009

#83915 E Townsend

Apx 1550 sf 4-2 1948 LR & Formal Dining, New Master Suite, Detached Garage Quiet Neighborhood.

$129,000 August 15, 2009

Notes for Realtors:

SOLD!

SOLD!

Pending

SOLD!

Realities Of The Buying PublicI wish it weren’t true. I’m even the president of an association that is

trying to make it not be true. But it’s still true......

Buyers, especially first time home buyers know very little about the REALITIES of Energy or Green.

They like the concept of Green, having been subjected to a constant barrage of “Greenwash” to market

everything else these days.

They are then easily convinced with a simple list of a lot more Energy

Savings and Green than they were expecting



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

Review From Last Week


G r e e n E a r t h E q u i t i e s . C o m

Why would you want to do this?

Cost & Benefit AnalysisMarketing 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




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




When You Could

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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? >>>



* 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)



Multiple Streams Of IncomeI 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.



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



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.

91201 all the testing you need, and none that you dont

Documents

timeg r e e n e

r t h e q u i t i e

specific testing

energywise investor

energy guarantees6

testing certification

specific work

time home buyers4