Download - 91103 Getting Started #2
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
2 Ways To Double The Cost Of Your Project!
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
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 differently
Curious?
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
#1. Participate In A Federally Funded Program
Recently 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!
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
#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 Commission
3. 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
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
You Can See Why ConsumersThink Renovation Is Expensive And Have
Stopped SpendingIn Response,
some Contractors have:
1. Laid off non essential staff2. Laid off essential staff.
3. Closed Offices4. Sold Equipment & Vehicles
5. Lost Credit Ratings6. Filed Bankruptcy
7. Multiplied their stress8. Strained their marriages
9. Left the industryAt Least They Have
A DropCloth!
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
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....
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 In The 21st Century Could Include:Start an eBay business
Write A Book, Write an eBookBuild a Multi Level Business
Be a Consultant - Speaker - ExpertSell from you Website
Pursue Your Passion For ProfitStock Market (a little scary?)
License Your Intellectual Property Real Estate, Rentals, Flips, etc
Be a Travel Agent (Luelle’s choice)
All these are possibilities and
have value. This
presentation is about adding at least this
one to a contracting
stream
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
OK, I’m Convinced. So How Do I Get Started?Top 10 Action
Points
1. Knowledge Is PowerEducate Yourself.
Bibliography:a. Flip by Davis & Volani
b. Real Estate & Investing Seminars & Books.
(very expensive ones are available cheap on eBay)
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
Getting Started #22. Home Performance
Classes @ PG&E (free)3. GreenEarthEquities.com(over 500 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
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
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)
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
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
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
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.
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
Paper Trading Before Using Live Ammunition
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 house
Education is costly, but mainly in time.
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
“Paper Trade” Before Using Live Ammunition
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 mainly in time.