91201 all the testing you need, and none that you dont
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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
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
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)
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
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:
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
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
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
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.
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
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.
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
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
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
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”
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
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.
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
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.
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
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.
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
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
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
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
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
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
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?
The
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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
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? >>>
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
* 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)
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
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.
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
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
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
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.
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