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Archive for the 'EnergyWise House Flipping' Category
April 23rd, 2010
Deep Energy Renovation: How Deep Can You Go?
How deep can you go in Deep Energy Renovation? Can you cut the utility bill 50%? 75%? 90%? Can you go all the way to Zero? Where the energy bill is Zero? Can you go even further, and become an energy producer? 
Of course with enough renewables such as photovoltaic solar or wind power, we can go all the way to Zero and even become a net energy producer.
Of course it’s possible, especially if you have an unlimited budget. Maybe a research grant or some access to stimulus money or a “demonstration project”….
But on this site the question is always, How much can we do in the plain old free enterprise system? No unlimited budgets here. It’s true, that as an Energy-Wise Investor, I can do whatever I want to the home. That’s the part that makes me feel like a Home Performance Contractor who’s “died and gone to heaven” My only constraint is that the house has to sell at the end of the day. If I “over improve” the project for the market, I’ll be stuck with a break-even or even lose money. Not a good plan for marital peace…
So how low can you go as an Energy-Wise House Flipping Investor? Now that we’ve completed 10 homes, I’ve determined that Zero is possible, even with no stimulus funds or grants. We’ve found that with the improvements that we’ve been making on our typical packages, that our customers’ bills are so low that it wont take too much more to eliminate the remaining electric bill with Solar PV. Actually what we will be shooting for at GreenEarthEquities is “Near Net Zero” or NNZ for our homes. Our Utility Company charges 12 to 48 cents per kilowatt. The cheap kilowatts are called the lifeline allowance. The goal in the NNZ home is to never buy any but the cheapest kilowatts. And actually be at zero many months of the year.
I’m excited about our new goal. We are starting right now on a house that we will finish soon. It isn’t a perfect candidate because we kept some things that aren’t optimal. A 10 year old air conditioner, one ton oversized for our new load, and some metal framed dual pane windows. But we did put cellulose in the walls and sealed the shell so tight that we needed some “On Purpose” ventilation. (Panasonic ERV in this case) We’ll share the results here as we finish up the project, put it on the market, get it sold, and follow the new home owner’s experience and utility bills.
January 4th, 2010
For Real Home Performance… Monitor The Bills
(Reprinted from Nov, 2009)
There’s been a lot of talk about “Really Green” vs “Greenwashing.” The biggest hit has been taken by LEED with Henry Gifford’s blistering presentation in April this year. (Skip to the last paragraph for Henry’s true feelings.) Henry showed how LEED and other points-based rating programs can entice designers to specify gizmos that are currently popular at the expense of tried and true design concepts that dont garner as many points.
First Time Homebuyers, Juan, Corrin & their new son. Although they didn't receive a plaque or certificate or a computer prediction, they are happy about their new home and especially the low utility bills and the comfort of the home.
This results in many LEED buildings costing more to operate than the equivalent non-LEED buildings. Henry suggests that simply monitoring the energy usage (and continuing to monitor it and publish it) is the best way to move us toward energy independence.
What a great idea, Henry! That’s what we do here at GreenEarthEquities. Today I stopped by to pick up the utility bills of one of our buyers participating in our “We Pay Half” program. That’s where we pay half of the Utility Bills for a period of time, usually 2 years. It allows us to put our money where out mouth is and stand behind our claims of energy efficiency… and at the same time keeps the customer motivated toward efficiency because they are paying the other half.
Here are the first 6 months of bills, May thru October. The home is a 40 year old 1200 square foot tract home in Fresno where the summers are really hot. Perhaps even more important is that the homeowner was pregnant with her first child and kept the thermostat at 70 degrees all thru the summer.
Month Gas Electric Total
May 11.06 43.70 55.62
June 5.20 40.36 45.97
July 6.92 109.32 116.88
August 5.09 112.77 118.31
September 6.17 109.97 116.72
October 6.51 71.15 78.24
The home got no certification or plaque. No HERS rating required. No third party testing or computer modeling. The project was designed toward the main thing that counts = the bills. And the bills are about half of what the rest of the neighborhood experiences. Is the homeowner happy? Ecstatic is more like it. Sad that they didn’t get a rating or a plaque? Dont think so. So what’s to not like about that? The deliverable was delivered.
Henry Gifford’s critique was directed at LEED, primarily for commercial buildings. But Residential Programs are not far behind. How much non performance from Home Performance programs will the tax payer allow? Is there political will to demand transparency and performance?
Would the real efficiency of Energy Efficiency Programs improve if the following were implemented:
1. ”We Pay Half” where contractors & developers paid half the utility bill for two years. OR
2. Contractors & Developers wait a year for 50% of their incentive payment and receive it only if the promised deliverable was really delivered.
3. Allow rate payers to see the “Neighborhood Average” along with their bill every month.
Pretty simple stuff really. Please comment in the comments section below. Do you think it’s too simple? Would it work to deliver more energy independence? Or is there too much investment in the testing and modeling and certifying industry that is providing so many of the good new Green Jobs that dont always deliver what the programs promise?
December 6th, 2009
Influence The Appraisal With Your Open House Brochure?
Today we had an Open House at a newly renovated home. Several people commented about the brochure that we provided, so I decided to post it. 
If you click the images they will expand to full size. It’s our standard 4 page brochure which is more extensive than the standard one page photocopy provided by most realtors.
Each page has a purpose and there is a whole series of slides in PlanetSavers University explaining why we feel it’s worth the extra effort. The first page mentions my Realtor, but just barely. Pictures are obviously important but it also includes neighborhood information, Rent vs Own comparison costs and finally contact info.
Page 2 we call our “Preponderance of Evidence.” This is the “Logic” that allows the buyer to validate in his own mind the emotional decision that got 90% made when his wife walked into the kitchen! (Sorry, that’s the way us humans work)
It really is a long single spaced list. But unless someone points these things out, many of them will be missed, and the decision will default to “Price.” 
It’s our job to “Make The Invisible, Visible” and this page really earns its place when the prospective buyers are conferring later, comparing the homes their Realtor has shown them. This is their crib sheet to remind them that they made a good decision to buy this home! It competes well against the one page Quickie Brochures that they collected at the other homes.
One of the uses of our brochures is to leave a supply of them on the counter after the sale. Appraisers have a hard job on our houses because they sell for quite a bit higher than the rest of the neighborhood. So we use the brochure to give the appraiser the ammunition they need in order to justify the price that my buyer and I have agreed on.
Of course these last two pages help the buyer justify their decision. None of us want to make poor decisions and pay too much. With these pages we are showing them that others are making similar decisions in the same neighborhood.
Check it out. Let me know what you think. Send me a copy of great Open House brochures you’ve used or seen. I’m always looking for ways to improve.
December 1st, 2009
91201 All The Testing & Certification You Need… And None That You Dont
October 27th, 2009
You’re Invited! Ducted Mini Split “Open House”
The newest GreenEarthEquities Ducted Mini Split Heat Pump system should overcome the last bit of American Resistance to the use of the superior Mini Split technology with its ducted delivery to every room. (Mini Splits are the standard in the rest of the world and are even sold in convenience stores in Asia and Europe but are shunned in America)
Gary Richardson completing the charge on the roof mounted Mini Split.
Its for sure the only one its kind as it was designed on the hood of my truck by Gary Richardson and myself. It will be the centerpiece of our FALL 2009 HOME TOUR of GreenEarthEquities projects that will be held on November 4th. The half day tour will start with breakfast at Sandy’s Country Junction at 7:30 AM
Sandy's Country Junction
and will proceed to two houses that are in process including the one featuring the Ducted Mini Split and a couple of finished homes. Those in a hurry and desiring to just see the Ducted Mini Split please RSVP with your preference in the comment section for schedule details.
We will explore:
Why and how we buy where we buy.
What causes our houses to sell quickly.
What we stay away from.
What goes into the “Energy Package”
How the Done, Wow! & Energy Packages work together.
There will be lots of time for questions and poking around in the renovation projects. I look forward to seeing a lot of you there. Please RSVP in the comment section or by email.
GreenEarthEquities kitchen with custom tile back splash & imported granite.
Other Opportunities: The November full day training for PG&E in Tulare was cancelled due to low pre-registration. If you missed out on that one, you can still sign up for the December 4th class on Energy Wise House Flipping in Sacramento on the PG&E site. There is also a 3 day class for CBPCA November 12th -14th. See the CBPCA website.
October 24th, 2009
Excuse Me, That Thing You Just Did… You Cant Do That! (And Other Pessimistic Nonsense)
Its been fun this last year listening to people tell me it’s impossible to do complete remodels with deep energy retrofits and sell them at a profit. ”Difficult anytime and Impossible in this economy,” they say. But since that is exactly what we’ve developed over this last year, it leads to an interesting conversation.
It happened again today. An old friend and I were re-connecting and in the catching up, he expressed surprise that I was flipping houses with full energy retrofits. “I didn’t think you could do that in this market.”
Bad News Travels Fast And A Little Bit Goes A Long Way.
Where does all this negativity and pessimism come from? The main thing I can think of is an over-indulgence in mainstream media consumption. Followed by “Conventional Wisdom & Urban Legend,” stuff passed around at the water cooler and golf course….No basis in reality required.
Since pessimism is so prevalent, and its consumption is so detrimental to one’s success, my advice is that if a person wants to be successful as an Energy Wise House Flipper, they would do well to go on a Media and Gossip Fast.
This is good advice for any contrarian who determines to swim against the current of the main stream. But wait, there’s more! To maintain forward progress swimming against the main stream, you must not only close your ears to the mainstream media and friends who repeat its negative mantras… You’ll have to filter carefully the advice of experts of your own industry.
Being an Energy-Wise Renovating House Flipping Investor requires some knowledge of three industries, Real Estate, Remodeling, and Building Performance-Green Building. The main stream in each of those industries repeats the pessimism of the general mainstream media. So a successful Energy Wise House Flipper will find themselves swimming against the current, even in the industries that he or she is demonstrating success in.
A Diet Of This Stuff Will Make It Hard To Stay Positive And Be Creative.
My friend is a contractor, a very good one, probably the best one in his trade in our city. Why was he surprised that I’m being successful at Energy Wise House Flipping? I say the culprit is the pessimism that he hears at his supply house, and from the general contractors he works for and the coffee shop talk combined with the nightly news…… just too much negativity for a human brain to stay positive in.
Am I saying to be an ostrich and stick your head in the sand? Not exactly. But what if the sand is in sand bags and bullets are whizzing overhead? Negativity bullets come at you every time you turn on the news. Maybe you’d better duck behind those sand bags. It’s easy, just turn it off.
It’s been said that the brain is like a computer, and GIGO is the number one rule, Garbage In, Garbage Out. In the case of ingesting negative and pessimistic garbage, the garbage that comes out is the inability to believe and act decisively.
Over in the Real Estate Investing Stream, most seminar gurus will tell you, “Now is not a time for flipping, just buy and hold” and “just put in the minimum to make it clean and safe, you’ll never make a return on that energy stuff.”
The main stream in Building Performance is primarily occupied with building an industry around programs and the incentive monies which are flooding into our economy. Dont get me wrong, that’s not a bad idea. Its just not the input an Energy Wise House Flipper needs to be focused on.
Contrarians Are Different. They Think Differently And Feed Their Brains A Different Diet.
To Summarize: If you want to be successful as an Energy Wise House Flipping Investor (or any kind of a contrarian,) a Media Fast might be in order. Or at least some critical filtering. One filtering question might be: “What was this “expert” saying 3 years ago?” If he missed it so bad then, why should I listen to him now? Another might be to listen to people who are actually doing what you want to do, rather than academics,media people, and other spectators who prognosticate and repeat each others’ stuff.
Next week I’ll have lunch with my friend. I think we’ll meet in one of my energy wise renovation projects. Maybe the real thing will be enough to counter all the negative he’s heard. Maybe he’ll jump in and swim upstream with me. Maybe. Maybe you’d like to be a contrarian and swim upstream. Email me. I’m looking to build an Army of Contrarians…. and I’m willing to help anyone who will turn the TV off.
October 17th, 2009
What The Stock Market Taught Me About Energy Wise Real Estate Investing.
When I began to retire a couple years ago, (which I dont believe in, by the way) I thought I might do well in the Stock Market. The science and art of picking winners fascinated me so I began educating myself, a good idea in any new venture. My choice was options trading so I have lots of books and courses on options.
Keep track of real estate prices just like stock prices. Use "play money" until you're confident to invest the real thing.
The best advice in all of it was from Stephen Cooper who said, “Paper Trade (no real money) until you are winning 80% of your trades.” It was good advice and I’m glad I followed it. I never hit the 80% winners target, so I never invested my first real dollar in options trading.
I am passing on the same advice to those contemplating getting in to the business of Energy-Wise House Flipping aka Investing In Renovation of Foreclosed Homes. But its more than just ask a Realtor friend what they think. There are some real ways that you can Paper Trade before switching to live ammunition. Remember, the more mistakes you can make and get out of your system with “play money” the better you will do when you start using the real thing. Here’s a TOP 10 LIST of things you can do to prepare yourself.
1. Read the books recommended on this site. ”Flip” by Volani and “Are You Dumb Enough To Be Rich” by Barnett are two of the best. (These teach good Real Estate basics but know nothing of Building Performance. You’ll have to get that elsewhere.
2. Take the free classes that are offered by PG&E (Northern California) or your Utility Company. I’ve taken lot’s of them and they have all been good. California Building Performance Contractors Association also offers great classes, as does Build It Green. Education doesn’t cost. It pays.
3. Read everything on this site. The blog posts chronicle my journey into this business. Planet Savers University is about 500 slides that I’ve shared over the last 6 months on Tuesday Evenings at 6pm PST. (Sign up to have them delivered to your email in the subscribe box above, then call in and join the conversation.)
4. Select a neighborhood. Or two, or three, No more. Use localetrends.com , Trulia.com, & HotPads.com to help in this. See Energy-Wise Renovation Of Foreclosed Homes – Onsite Training 1 for the ratios and demographics that work well for me.
5. Here’s a difficult one. Find a good Realtor. A good Realtor for you, an energy wise, renovating, house flipping Investor. Plan on interviewing several. I lucked out, and the third one I tried has been a gem and the benchmark that I recommend. Serving you is different than serving the general population. Few Realtors are ready for the work you will bring them. Check out REALTORS: How Would You Like A Client Like Me? (or several) for some ideas.
6. Demand that your Realtor provide you with Comparative Market Analysis (CMA) on each neighborhood under consideration. They may have additional favorite tools. Use these to grow your knowledge of your neighborhoods. See Property Evaluation with the CMA andEvaluating A Property With A Comparative Market Analysis (CMA)
Keep track of buying and selling prices and calculate the "spread."
7. Choose several properties and make some offers through your Realtor. I know, we haven’t talked about where the money is coming from, Thats another post. See Where Do I Find The Money? & Basic Negotiations. For now we are just limbering up, calisthenics, or it’s like at the high school dance and no one’s on the dance floor. It’s breaking the ice. Of course you’ll want to be set up to digitally sign the offers. Your Realtor can help you with that or email me for my favorite.
8. Keep track of the offers you make and even ones that you didn’t even make but thought were a good deal. After they sell and close, the price will be public so your Realtor can get that information for you.
9. Visit Houses that are in your buying range. Also visit houses at the top of the market in your neighborhoods. This will give you an idea of what your finished product will sell for. Keep track of all your guesses and keep checking back. You’ll be getting smarter and smarter about real estate in your chosen neighborhoods.
10. Start collecting Contractor and Vendor Information. You’ll need it soon enough. Get the Black and Decker book on Home Improvements. It’s the best on the subject to give you a general knowledge of renovation if you dont have a remodeling background.
As you practice these 10 disciplines for a few months, you will become a “True Believer,” not only that you can really do this business, but even more importantly, that Energy Wise House Flipping is the Right Thing To Do, for the community, the planet, the neighborhood, the green jobs and for you. Then after you’ve seen several of your “paper trades” make money, you’ll be ready to start using live ammunition and making real money.
October 16th, 2009
Why Air Conditioning? Different Answers In Different Places
Luelle and I just got back from spending a week grandparenting in Cancun, Mexico. Taking the 3 year old Noah and 18 month old Abigail swimming through the underground river at Xcaret was the highlight along with much sand construction and time in the kiddie pool….
Abigail staying hydrated...
Wow, was it hot. Over 90 on both temperature and humidity. So I got to see first hand the “Other Reason For Air Conditioning” taking moisture out of the air. Water condensed on the Outside of bus windows when air conditioning was turned on in the bus. And the cold tile floors in our room condensed pools of water near the door way. (Sweep or door bottom not existent)
Condensation is a real concern for Energy Wise Renovators, especially for some of you who live in more humid areas than Fresno, where GreenEarthEquities renovates foreclosed homes. But it’s important even here with our tighter homes. I’ll share two examples and the solutions in upcoming posts.
In the mean time, Luelle will be recommending her travel clients schedule Cancun for a December – February vacation.
September 6th, 2009
Next “Wave” of Foreclosures: Fact or Fiction? (Dont Hold Your Breath)
We’ve all been told that there’s another “Wave” of foreclosures coming and I’ve even done some of my own planning based on that prediction. Almost all of the people I’ve heard the next “wave theory” from were just repeating what they had heard from someone else. The more thoughtful of these pointed to the continuing rise in Notices Of Default but we all scratched our heads because the expected actual foreclosures didn’t show up on the REO market. What happened? The foreclosures seemed to get lost on their way to the MLS…
I had nothing objective to base it on but just started losing my faith in the Foreclosure Wave theory a few months ago. Then I finally found an objective explanation of why the foreclosures aren’t showing up on the expected schedule. Check out this chart which shows what happened to foreclosures after Secretary Paulson’s Troubled Asset Relief announcement last September 19th. Here it is on the chart, courtesy of Sean O’Toole of Foreclosure Truth.com.
Before and After Secretary Paulson's announcement on Sept 19, 2008
O’Toole explains, “While many will point out this was necessary to keep home loans available and interest rates low, I think it also clearly sent banks a message… you will get more for these assets from the taxpayer than you will through foreclosure. Add to that the mark-to-model rule changes from the Federal Accounting Standards Board, and a ton of politicial pressure and it should be no surprise to anyone that foreclosures have slowed. The drop in foreclosure sales defies logic given the continued increase in properties scheduled to be foreclosed on. But defying logic to do what is politically expedient while simultaneously inflating bank earnings and bonuses and without regard to future consequences IS the new normal. We are yet again trading tomorrow for today.” (Full Article here)
Whether O’Toole’s analysis is right or wrong, the fact remains, Investors can no longer choose from many available foreclosures like in the “old days” of 6 months ago. I believe there are still good deals out there, we just have to look harder for them. The larger spread from buy to sell which is available in foreclosures is what allows me to do large energy saving packages in the renovation and still sell my projects to first time buyers. So even if the good deals are harder to find, they are worth the effort. Here are three techniques that I’m using while waiting for the wave.
1. Increased attention to Short Sales. As you know these can take a long time, so it’s good to have a lot of offers in the pipeline. My broker and I have turned our attention to Short Sales and recently got one (after 5 months)
My Newest Really Ugly House
2. Remember the Ugly House. The house that I just put in escrow last week may qualify for the “Ugliest House” award. Certainly in the City, Maybe the State. My perfect plan is to buy the Worst House in the neighborhood and make it the Best House in the neighborhood. We call it our Cinderella Process. I’ll be showing pictures and talking about my latest Ugly House on the RoundTable Conference Calls every Tuesday at 6pm Pacific. Sign up on the FREE WEBINAR form and I will send you the slide deck before the Conference Call.
3. More Conventional Ways Of Finding Motivated Sellers. We’ve really gotten spoiled this last year with such easy pickings in the REO market. It’s time to dust off some of the harder ways to find those great deals. Pre foreclosure letters, signs, working with attorneys…. none of which are my specialty, but I will post here and we can learn together.
The effort is worth it and we need really good deals if we are going to Save The Planet, One House At A Time thru Energy-Wise House Flipping.
And who knows. The political winds and banking rules may change and the “Wave” may really come. Wise investors will have a little cash available for the buying party when it’s Wave Season.
July 19th, 2009
Energy-Wise House Flipper Reveals Secrets To Investing In Troubled Economy
Nice Remodeling (The Wow! Package) combines with attention to all details (The Done Package) and the Energy Package to present a compelling final product to the HomeBuyer.
It was the best of times, it was the worst of times. The famous words of Charles Dickens were never more true than now for the real estate professional who is willing to think outside the box. After 33 years in Real Estate and Construction which included stints as a Real Estate Agent, a Broker, but mainly a General Contractor, my wife and I “retired” last year and looked around for new careers to land in.
We both found areas that were a passion for us, that Common Wisdom (and our friends) said, “Oh that’s not a good choice in this Economy.” She has become a top selling Travel Agency and I have become an Energy-Wise House Flipper. And we’re both having more fun than ever before.
About a year ago I realized the “Perfect Storm” of Opportunity for me to jump back into real estate investing. Foreclosures were at an all time high, Interest rates are down, Rents are staying up, Banks are desperate to get rid of REO inventory. It seemed a great time to buy foreclosures and install all the energy saving items and the remodeling that I had sold as a contractor for 3 decades.
My Realtor and Contractor friends said, “But Dave, you wont be able to sell your houses if you put that much into them.” Well, now that the first 5 are sold at a profit, I am convinced that whether it is the best of times or worst of times has little to do with the times and all to do with how we play the cards that life deals us.
Those first 5 Flips helped develop and clarify the “Three Package System” of Renovation that is working well in today’s economy. I realized that I was having so much fun and this was such a great opportunity that I wanted to share what was working for me in the hopes of helping someone who needed a new career or just a boost in what they were already doing. So I started teaching classes on Energy-Wise House Flipping every Tuesday on free conference calls as well as classes for our Utility Company and Trade Association. (PG&E & CBPCA)
Each week I send out a series of Power Point pdf’s by email to all who are interested. Then during the conference call, each person can self navigate through the slides and at the end of the call, keep the slides for reference. Here is a sample of the training on Energy-Wise House Flipping (Click Here). Every Tuesday at 6 PM Pacific I host a free conference call on Energy Wise House Flipping. The Call-In number is 605 475 4800. The Access Code is 795323# If any of this about a new career or an addition to what you are doing, makes sense to you, you are welcome to join us. I hope to see you on the call. Email me first and I will send you the slides ahead of time. (DJR5650@MAC.com)
I am amazed at the people who jump on board this train in these best of times and worst of times. And who doesn’t jump on. One of my best students is a boat canvass seamstress! And many building scientists and real estate professionals haven’t seen their way out of the status quo to grasp this golden opportunity.
We call it PlanetSavers Universtiy because we really are “Saving The Planet, One (foreclosed) House At A Time.” Our teaching at PlanetSavers is unique. It is more than just House Flipping, more than just Wow! Remodeling & more than just smart buying and selling of real estate. It includes all of that and could benefit many if it were better promoted to those who are ready for something different in their business. I am just now starting this Tomato Blog for that purpose but to move to the next level, I need to incorporate the Web 2.0 and social media that will be featured at Inman Connect in San Fransisco August 5-7.
Jim, these are the reasons that you should see me in San Fransisco:
1. The Uniqueness of my message. It is different from anything else on the Vine or even the Guru Seminars for thousands of dollars.
2. My desire to freely share my secrets.
3. My desire to embrace the new technology. (The 50 words exactly for the contest start with “Jim”)
I hope to see you all in San Fransisco
Dave Robinson, Energy-Wise House Flipper
Of course with enough renewables such as photovoltaic solar or wind power, we can go all the way to Zero and even become a net energy producer.For Real Home Performance… Monitor The Bills
(Reprinted from Nov, 2009)
There’s been a lot of talk about “Really Green” vs “Greenwashing.” The biggest hit has been taken by LEED with Henry Gifford’s blistering presentation in April this year. (Skip to the last paragraph for Henry’s true feelings.) Henry showed how LEED and other points-based rating programs can entice designers to specify gizmos that are currently popular at the expense of tried and true design concepts that dont garner as many points.
First Time Homebuyers, Juan, Corrin & their new son. Although they didn't receive a plaque or certificate or a computer prediction, they are happy about their new home and especially the low utility bills and the comfort of the home.
This results in many LEED buildings costing more to operate than the equivalent non-LEED buildings. Henry suggests that simply monitoring the energy usage (and continuing to monitor it and publish it) is the best way to move us toward energy independence.
What a great idea, Henry! That’s what we do here at GreenEarthEquities. Today I stopped by to pick up the utility bills of one of our buyers participating in our “We Pay Half” program. That’s where we pay half of the Utility Bills for a period of time, usually 2 years. It allows us to put our money where out mouth is and stand behind our claims of energy efficiency… and at the same time keeps the customer motivated toward efficiency because they are paying the other half.
Here are the first 6 months of bills, May thru October. The home is a 40 year old 1200 square foot tract home in Fresno where the summers are really hot. Perhaps even more important is that the homeowner was pregnant with her first child and kept the thermostat at 70 degrees all thru the summer.
Month Gas Electric Total
May 11.06 43.70 55.62
June 5.20 40.36 45.97
July 6.92 109.32 116.88
August 5.09 112.77 118.31
September 6.17 109.97 116.72
October 6.51 71.15 78.24
The home got no certification or plaque. No HERS rating required. No third party testing or computer modeling. The project was designed toward the main thing that counts = the bills. And the bills are about half of what the rest of the neighborhood experiences. Is the homeowner happy? Ecstatic is more like it. Sad that they didn’t get a rating or a plaque? Dont think so. So what’s to not like about that? The deliverable was delivered.
Henry Gifford’s critique was directed at LEED, primarily for commercial buildings. But Residential Programs are not far behind. How much non performance from Home Performance programs will the tax payer allow? Is there political will to demand transparency and performance?
Would the real efficiency of Energy Efficiency Programs improve if the following were implemented:
1. ”We Pay Half” where contractors & developers paid half the utility bill for two years. OR
2. Contractors & Developers wait a year for 50% of their incentive payment and receive it only if the promised deliverable was really delivered.
3. Allow rate payers to see the “Neighborhood Average” along with their bill every month.
Pretty simple stuff really. Please comment in the comments section below. Do you think it’s too simple? Would it work to deliver more energy independence? Or is there too much investment in the testing and modeling and certifying industry that is providing so many of the good new Green Jobs that dont always deliver what the programs promise?
December 6th, 2009
Influence The Appraisal With Your Open House Brochure?
Today we had an Open House at a newly renovated home. Several people commented about the brochure that we provided, so I decided to post it. If you click the images they will expand to full size. It’s our standard 4 page brochure which is more extensive than the standard one page photocopy provided by most realtors.
Each page has a purpose and there is a whole series of slides in PlanetSavers University explaining why we feel it’s worth the extra effort. The first page mentions my Realtor, but just barely. Pictures are obviously important but it also includes neighborhood information, Rent vs Own comparison costs and finally contact info.
Page 2 we call our “Preponderance of Evidence.” This is the “Logic” that allows the buyer to validate in his own mind the emotional decision that got 90% made when his wife walked into the kitchen! (Sorry, that’s the way us humans work)
It really is a long single spaced list. But unless someone points these things out, many of them will be missed, and the decision will default to “Price.” It’s our job to “Make The Invisible, Visible” and this page really earns its place when the prospective buyers are conferring later, comparing the homes their Realtor has shown them. This is their crib sheet to remind them that they made a good decision to buy this home! It competes well against the one page Quickie Brochures that they collected at the other homes.
One of the uses of our brochures is to leave a supply of them on the counter after the sale. Appraisers have a hard job on our houses because they sell for quite a bit higher than the rest of the neighborhood. So we use the brochure to give the appraiser the ammunition they need in order to justify the price that my buyer and I have agreed on.
Of course these last two pages help the buyer justify their decision. None of us want to make poor decisions and pay too much. With these pages we are showing them that others are making similar decisions in the same neighborhood.
Check it out. Let me know what you think. Send me a copy of great Open House brochures you’ve used or seen. I’m always looking for ways to improve.
December 1st, 2009
91201 All The Testing & Certification You Need… And None That You Dont
October 27th, 2009
You’re Invited! Ducted Mini Split “Open House”
The newest GreenEarthEquities Ducted Mini Split Heat Pump system should overcome the last bit of American Resistance to the use of the superior Mini Split technology with its ducted delivery to every room. (Mini Splits are the standard in the rest of the world and are even sold in convenience stores in Asia and Europe but are shunned in America)
Gary Richardson completing the charge on the roof mounted Mini Split.
Its for sure the only one its kind as it was designed on the hood of my truck by Gary Richardson and myself. It will be the centerpiece of our FALL 2009 HOME TOUR of GreenEarthEquities projects that will be held on November 4th. The half day tour will start with breakfast at Sandy’s Country Junction at 7:30 AM
Sandy's Country Junction
and will proceed to two houses that are in process including the one featuring the Ducted Mini Split and a couple of finished homes. Those in a hurry and desiring to just see the Ducted Mini Split please RSVP with your preference in the comment section for schedule details.
We will explore:
Why and how we buy where we buy.
What causes our houses to sell quickly.
What we stay away from.
What goes into the “Energy Package”
How the Done, Wow! & Energy Packages work together.
There will be lots of time for questions and poking around in the renovation projects. I look forward to seeing a lot of you there. Please RSVP in the comment section or by email.
GreenEarthEquities kitchen with custom tile back splash & imported granite.
Other Opportunities: The November full day training for PG&E in Tulare was cancelled due to low pre-registration. If you missed out on that one, you can still sign up for the December 4th class on Energy Wise House Flipping in Sacramento on the PG&E site. There is also a 3 day class for CBPCA November 12th -14th. See the CBPCA website.
October 24th, 2009
Excuse Me, That Thing You Just Did… You Cant Do That! (And Other Pessimistic Nonsense)
Its been fun this last year listening to people tell me it’s impossible to do complete remodels with deep energy retrofits and sell them at a profit. ”Difficult anytime and Impossible in this economy,” they say. But since that is exactly what we’ve developed over this last year, it leads to an interesting conversation.
It happened again today. An old friend and I were re-connecting and in the catching up, he expressed surprise that I was flipping houses with full energy retrofits. “I didn’t think you could do that in this market.”
Bad News Travels Fast And A Little Bit Goes A Long Way.
Where does all this negativity and pessimism come from? The main thing I can think of is an over-indulgence in mainstream media consumption. Followed by “Conventional Wisdom & Urban Legend,” stuff passed around at the water cooler and golf course….No basis in reality required.
Since pessimism is so prevalent, and its consumption is so detrimental to one’s success, my advice is that if a person wants to be successful as an Energy Wise House Flipper, they would do well to go on a Media and Gossip Fast.
This is good advice for any contrarian who determines to swim against the current of the main stream. But wait, there’s more! To maintain forward progress swimming against the main stream, you must not only close your ears to the mainstream media and friends who repeat its negative mantras… You’ll have to filter carefully the advice of experts of your own industry.
Being an Energy-Wise Renovating House Flipping Investor requires some knowledge of three industries, Real Estate, Remodeling, and Building Performance-Green Building. The main stream in each of those industries repeats the pessimism of the general mainstream media. So a successful Energy Wise House Flipper will find themselves swimming against the current, even in the industries that he or she is demonstrating success in.
A Diet Of This Stuff Will Make It Hard To Stay Positive And Be Creative.
My friend is a contractor, a very good one, probably the best one in his trade in our city. Why was he surprised that I’m being successful at Energy Wise House Flipping? I say the culprit is the pessimism that he hears at his supply house, and from the general contractors he works for and the coffee shop talk combined with the nightly news…… just too much negativity for a human brain to stay positive in.
Am I saying to be an ostrich and stick your head in the sand? Not exactly. But what if the sand is in sand bags and bullets are whizzing overhead? Negativity bullets come at you every time you turn on the news. Maybe you’d better duck behind those sand bags. It’s easy, just turn it off.
It’s been said that the brain is like a computer, and GIGO is the number one rule, Garbage In, Garbage Out. In the case of ingesting negative and pessimistic garbage, the garbage that comes out is the inability to believe and act decisively.
Over in the Real Estate Investing Stream, most seminar gurus will tell you, “Now is not a time for flipping, just buy and hold” and “just put in the minimum to make it clean and safe, you’ll never make a return on that energy stuff.”
The main stream in Building Performance is primarily occupied with building an industry around programs and the incentive monies which are flooding into our economy. Dont get me wrong, that’s not a bad idea. Its just not the input an Energy Wise House Flipper needs to be focused on.
Contrarians Are Different. They Think Differently And Feed Their Brains A Different Diet.
To Summarize: If you want to be successful as an Energy Wise House Flipping Investor (or any kind of a contrarian,) a Media Fast might be in order. Or at least some critical filtering. One filtering question might be: “What was this “expert” saying 3 years ago?” If he missed it so bad then, why should I listen to him now? Another might be to listen to people who are actually doing what you want to do, rather than academics,media people, and other spectators who prognosticate and repeat each others’ stuff.
Next week I’ll have lunch with my friend. I think we’ll meet in one of my energy wise renovation projects. Maybe the real thing will be enough to counter all the negative he’s heard. Maybe he’ll jump in and swim upstream with me. Maybe. Maybe you’d like to be a contrarian and swim upstream. Email me. I’m looking to build an Army of Contrarians…. and I’m willing to help anyone who will turn the TV off.
October 17th, 2009
What The Stock Market Taught Me About Energy Wise Real Estate Investing.
When I began to retire a couple years ago, (which I dont believe in, by the way) I thought I might do well in the Stock Market. The science and art of picking winners fascinated me so I began educating myself, a good idea in any new venture. My choice was options trading so I have lots of books and courses on options.
Keep track of real estate prices just like stock prices. Use "play money" until you're confident to invest the real thing.
The best advice in all of it was from Stephen Cooper who said, “Paper Trade (no real money) until you are winning 80% of your trades.” It was good advice and I’m glad I followed it. I never hit the 80% winners target, so I never invested my first real dollar in options trading.
I am passing on the same advice to those contemplating getting in to the business of Energy-Wise House Flipping aka Investing In Renovation of Foreclosed Homes. But its more than just ask a Realtor friend what they think. There are some real ways that you can Paper Trade before switching to live ammunition. Remember, the more mistakes you can make and get out of your system with “play money” the better you will do when you start using the real thing. Here’s a TOP 10 LIST of things you can do to prepare yourself.
1. Read the books recommended on this site. ”Flip” by Volani and “Are You Dumb Enough To Be Rich” by Barnett are two of the best. (These teach good Real Estate basics but know nothing of Building Performance. You’ll have to get that elsewhere.
2. Take the free classes that are offered by PG&E (Northern California) or your Utility Company. I’ve taken lot’s of them and they have all been good. California Building Performance Contractors Association also offers great classes, as does Build It Green. Education doesn’t cost. It pays.
3. Read everything on this site. The blog posts chronicle my journey into this business. Planet Savers University is about 500 slides that I’ve shared over the last 6 months on Tuesday Evenings at 6pm PST. (Sign up to have them delivered to your email in the subscribe box above, then call in and join the conversation.)
4. Select a neighborhood. Or two, or three, No more. Use localetrends.com , Trulia.com, & HotPads.com to help in this. See Energy-Wise Renovation Of Foreclosed Homes – Onsite Training 1 for the ratios and demographics that work well for me.
5. Here’s a difficult one. Find a good Realtor. A good Realtor for you, an energy wise, renovating, house flipping Investor. Plan on interviewing several. I lucked out, and the third one I tried has been a gem and the benchmark that I recommend. Serving you is different than serving the general population. Few Realtors are ready for the work you will bring them. Check out REALTORS: How Would You Like A Client Like Me? (or several) for some ideas.
6. Demand that your Realtor provide you with Comparative Market Analysis (CMA) on each neighborhood under consideration. They may have additional favorite tools. Use these to grow your knowledge of your neighborhoods. See Property Evaluation with the CMA andEvaluating A Property With A Comparative Market Analysis (CMA)
Keep track of buying and selling prices and calculate the "spread."
7. Choose several properties and make some offers through your Realtor. I know, we haven’t talked about where the money is coming from, Thats another post. See Where Do I Find The Money? & Basic Negotiations. For now we are just limbering up, calisthenics, or it’s like at the high school dance and no one’s on the dance floor. It’s breaking the ice. Of course you’ll want to be set up to digitally sign the offers. Your Realtor can help you with that or email me for my favorite.
8. Keep track of the offers you make and even ones that you didn’t even make but thought were a good deal. After they sell and close, the price will be public so your Realtor can get that information for you.
9. Visit Houses that are in your buying range. Also visit houses at the top of the market in your neighborhoods. This will give you an idea of what your finished product will sell for. Keep track of all your guesses and keep checking back. You’ll be getting smarter and smarter about real estate in your chosen neighborhoods.
10. Start collecting Contractor and Vendor Information. You’ll need it soon enough. Get the Black and Decker book on Home Improvements. It’s the best on the subject to give you a general knowledge of renovation if you dont have a remodeling background.
As you practice these 10 disciplines for a few months, you will become a “True Believer,” not only that you can really do this business, but even more importantly, that Energy Wise House Flipping is the Right Thing To Do, for the community, the planet, the neighborhood, the green jobs and for you. Then after you’ve seen several of your “paper trades” make money, you’ll be ready to start using live ammunition and making real money.
October 16th, 2009
Why Air Conditioning? Different Answers In Different Places
Luelle and I just got back from spending a week grandparenting in Cancun, Mexico. Taking the 3 year old Noah and 18 month old Abigail swimming through the underground river at Xcaret was the highlight along with much sand construction and time in the kiddie pool….
Abigail staying hydrated...
Wow, was it hot. Over 90 on both temperature and humidity. So I got to see first hand the “Other Reason For Air Conditioning” taking moisture out of the air. Water condensed on the Outside of bus windows when air conditioning was turned on in the bus. And the cold tile floors in our room condensed pools of water near the door way. (Sweep or door bottom not existent)
Condensation is a real concern for Energy Wise Renovators, especially for some of you who live in more humid areas than Fresno, where GreenEarthEquities renovates foreclosed homes. But it’s important even here with our tighter homes. I’ll share two examples and the solutions in upcoming posts.
In the mean time, Luelle will be recommending her travel clients schedule Cancun for a December – February vacation.
September 6th, 2009
Next “Wave” of Foreclosures: Fact or Fiction? (Dont Hold Your Breath)
We’ve all been told that there’s another “Wave” of foreclosures coming and I’ve even done some of my own planning based on that prediction. Almost all of the people I’ve heard the next “wave theory” from were just repeating what they had heard from someone else. The more thoughtful of these pointed to the continuing rise in Notices Of Default but we all scratched our heads because the expected actual foreclosures didn’t show up on the REO market. What happened? The foreclosures seemed to get lost on their way to the MLS…
I had nothing objective to base it on but just started losing my faith in the Foreclosure Wave theory a few months ago. Then I finally found an objective explanation of why the foreclosures aren’t showing up on the expected schedule. Check out this chart which shows what happened to foreclosures after Secretary Paulson’s Troubled Asset Relief announcement last September 19th. Here it is on the chart, courtesy of Sean O’Toole of Foreclosure Truth.com.
Before and After Secretary Paulson's announcement on Sept 19, 2008
O’Toole explains, “While many will point out this was necessary to keep home loans available and interest rates low, I think it also clearly sent banks a message… you will get more for these assets from the taxpayer than you will through foreclosure. Add to that the mark-to-model rule changes from the Federal Accounting Standards Board, and a ton of politicial pressure and it should be no surprise to anyone that foreclosures have slowed. The drop in foreclosure sales defies logic given the continued increase in properties scheduled to be foreclosed on. But defying logic to do what is politically expedient while simultaneously inflating bank earnings and bonuses and without regard to future consequences IS the new normal. We are yet again trading tomorrow for today.” (Full Article here)
Whether O’Toole’s analysis is right or wrong, the fact remains, Investors can no longer choose from many available foreclosures like in the “old days” of 6 months ago. I believe there are still good deals out there, we just have to look harder for them. The larger spread from buy to sell which is available in foreclosures is what allows me to do large energy saving packages in the renovation and still sell my projects to first time buyers. So even if the good deals are harder to find, they are worth the effort. Here are three techniques that I’m using while waiting for the wave.
1. Increased attention to Short Sales. As you know these can take a long time, so it’s good to have a lot of offers in the pipeline. My broker and I have turned our attention to Short Sales and recently got one (after 5 months)
My Newest Really Ugly House
2. Remember the Ugly House. The house that I just put in escrow last week may qualify for the “Ugliest House” award. Certainly in the City, Maybe the State. My perfect plan is to buy the Worst House in the neighborhood and make it the Best House in the neighborhood. We call it our Cinderella Process. I’ll be showing pictures and talking about my latest Ugly House on the RoundTable Conference Calls every Tuesday at 6pm Pacific. Sign up on the FREE WEBINAR form and I will send you the slide deck before the Conference Call.
3. More Conventional Ways Of Finding Motivated Sellers. We’ve really gotten spoiled this last year with such easy pickings in the REO market. It’s time to dust off some of the harder ways to find those great deals. Pre foreclosure letters, signs, working with attorneys…. none of which are my specialty, but I will post here and we can learn together.
The effort is worth it and we need really good deals if we are going to Save The Planet, One House At A Time thru Energy-Wise House Flipping.
And who knows. The political winds and banking rules may change and the “Wave” may really come. Wise investors will have a little cash available for the buying party when it’s Wave Season.
July 19th, 2009
Energy-Wise House Flipper Reveals Secrets To Investing In Troubled Economy
Nice Remodeling (The Wow! Package) combines with attention to all details (The Done Package) and the Energy Package to present a compelling final product to the HomeBuyer.
It was the best of times, it was the worst of times. The famous words of Charles Dickens were never more true than now for the real estate professional who is willing to think outside the box. After 33 years in Real Estate and Construction which included stints as a Real Estate Agent, a Broker, but mainly a General Contractor, my wife and I “retired” last year and looked around for new careers to land in.
We both found areas that were a passion for us, that Common Wisdom (and our friends) said, “Oh that’s not a good choice in this Economy.” She has become a top selling Travel Agency and I have become an Energy-Wise House Flipper. And we’re both having more fun than ever before.
About a year ago I realized the “Perfect Storm” of Opportunity for me to jump back into real estate investing. Foreclosures were at an all time high, Interest rates are down, Rents are staying up, Banks are desperate to get rid of REO inventory. It seemed a great time to buy foreclosures and install all the energy saving items and the remodeling that I had sold as a contractor for 3 decades.
My Realtor and Contractor friends said, “But Dave, you wont be able to sell your houses if you put that much into them.” Well, now that the first 5 are sold at a profit, I am convinced that whether it is the best of times or worst of times has little to do with the times and all to do with how we play the cards that life deals us.
Those first 5 Flips helped develop and clarify the “Three Package System” of Renovation that is working well in today’s economy. I realized that I was having so much fun and this was such a great opportunity that I wanted to share what was working for me in the hopes of helping someone who needed a new career or just a boost in what they were already doing. So I started teaching classes on Energy-Wise House Flipping every Tuesday on free conference calls as well as classes for our Utility Company and Trade Association. (PG&E & CBPCA)
Each week I send out a series of Power Point pdf’s by email to all who are interested. Then during the conference call, each person can self navigate through the slides and at the end of the call, keep the slides for reference. Here is a sample of the training on Energy-Wise House Flipping (Click Here). Every Tuesday at 6 PM Pacific I host a free conference call on Energy Wise House Flipping. The Call-In number is 605 475 4800. The Access Code is 795323# If any of this about a new career or an addition to what you are doing, makes sense to you, you are welcome to join us. I hope to see you on the call. Email me first and I will send you the slides ahead of time. (DJR5650@MAC.com)
I am amazed at the people who jump on board this train in these best of times and worst of times. And who doesn’t jump on. One of my best students is a boat canvass seamstress! And many building scientists and real estate professionals haven’t seen their way out of the status quo to grasp this golden opportunity.
We call it PlanetSavers Universtiy because we really are “Saving The Planet, One (foreclosed) House At A Time.” Our teaching at PlanetSavers is unique. It is more than just House Flipping, more than just Wow! Remodeling & more than just smart buying and selling of real estate. It includes all of that and could benefit many if it were better promoted to those who are ready for something different in their business. I am just now starting this Tomato Blog for that purpose but to move to the next level, I need to incorporate the Web 2.0 and social media that will be featured at Inman Connect in San Fransisco August 5-7.
Jim, these are the reasons that you should see me in San Fransisco:
1. The Uniqueness of my message. It is different from anything else on the Vine or even the Guru Seminars for thousands of dollars.
2. My desire to freely share my secrets.
3. My desire to embrace the new technology. (The 50 words exactly for the contest start with “Jim”)
I hope to see you all in San Fransisco
Dave Robinson, Energy-Wise House Flipper
If you click the images they will expand to full size. It’s our standard 4 page brochure which is more extensive than the standard one page photocopy provided by most realtors. It’s our job to “Make The Invisible, Visible” and this page really earns its place when the prospective buyers are conferring later, comparing the homes their Realtor has shown them. This is their crib sheet to remind them that they made a good decision to buy this home! It competes well against the one page Quickie Brochures that they collected at the other homes.Of course these last two pages help the buyer justify their decision. None of us want to make poor decisions and pay too much. With these pages we are showing them that others are making similar decisions in the same neighborhood.91201 All The Testing & Certification You Need… And None That You Dont
October 27th, 2009
You’re Invited! Ducted Mini Split “Open House”
The newest GreenEarthEquities Ducted Mini Split Heat Pump system should overcome the last bit of American Resistance to the use of the superior Mini Split technology with its ducted delivery to every room. (Mini Splits are the standard in the rest of the world and are even sold in convenience stores in Asia and Europe but are shunned in America)
Gary Richardson completing the charge on the roof mounted Mini Split.
Its for sure the only one its kind as it was designed on the hood of my truck by Gary Richardson and myself. It will be the centerpiece of our FALL 2009 HOME TOUR of GreenEarthEquities projects that will be held on November 4th. The half day tour will start with breakfast at Sandy’s Country Junction at 7:30 AM
Sandy's Country Junction
and will proceed to two houses that are in process including the one featuring the Ducted Mini Split and a couple of finished homes. Those in a hurry and desiring to just see the Ducted Mini Split please RSVP with your preference in the comment section for schedule details.
We will explore:
Why and how we buy where we buy.
What causes our houses to sell quickly.
What we stay away from.
What goes into the “Energy Package”
How the Done, Wow! & Energy Packages work together.
There will be lots of time for questions and poking around in the renovation projects. I look forward to seeing a lot of you there. Please RSVP in the comment section or by email.
GreenEarthEquities kitchen with custom tile back splash & imported granite.
Other Opportunities: The November full day training for PG&E in Tulare was cancelled due to low pre-registration. If you missed out on that one, you can still sign up for the December 4th class on Energy Wise House Flipping in Sacramento on the PG&E site. There is also a 3 day class for CBPCA November 12th -14th. See the CBPCA website.
October 24th, 2009
Excuse Me, That Thing You Just Did… You Cant Do That! (And Other Pessimistic Nonsense)
Its been fun this last year listening to people tell me it’s impossible to do complete remodels with deep energy retrofits and sell them at a profit. ”Difficult anytime and Impossible in this economy,” they say. But since that is exactly what we’ve developed over this last year, it leads to an interesting conversation.
It happened again today. An old friend and I were re-connecting and in the catching up, he expressed surprise that I was flipping houses with full energy retrofits. “I didn’t think you could do that in this market.”
Bad News Travels Fast And A Little Bit Goes A Long Way.
Where does all this negativity and pessimism come from? The main thing I can think of is an over-indulgence in mainstream media consumption. Followed by “Conventional Wisdom & Urban Legend,” stuff passed around at the water cooler and golf course….No basis in reality required.
Since pessimism is so prevalent, and its consumption is so detrimental to one’s success, my advice is that if a person wants to be successful as an Energy Wise House Flipper, they would do well to go on a Media and Gossip Fast.
This is good advice for any contrarian who determines to swim against the current of the main stream. But wait, there’s more! To maintain forward progress swimming against the main stream, you must not only close your ears to the mainstream media and friends who repeat its negative mantras… You’ll have to filter carefully the advice of experts of your own industry.
Being an Energy-Wise Renovating House Flipping Investor requires some knowledge of three industries, Real Estate, Remodeling, and Building Performance-Green Building. The main stream in each of those industries repeats the pessimism of the general mainstream media. So a successful Energy Wise House Flipper will find themselves swimming against the current, even in the industries that he or she is demonstrating success in.
A Diet Of This Stuff Will Make It Hard To Stay Positive And Be Creative.
My friend is a contractor, a very good one, probably the best one in his trade in our city. Why was he surprised that I’m being successful at Energy Wise House Flipping? I say the culprit is the pessimism that he hears at his supply house, and from the general contractors he works for and the coffee shop talk combined with the nightly news…… just too much negativity for a human brain to stay positive in.
Am I saying to be an ostrich and stick your head in the sand? Not exactly. But what if the sand is in sand bags and bullets are whizzing overhead? Negativity bullets come at you every time you turn on the news. Maybe you’d better duck behind those sand bags. It’s easy, just turn it off.
It’s been said that the brain is like a computer, and GIGO is the number one rule, Garbage In, Garbage Out. In the case of ingesting negative and pessimistic garbage, the garbage that comes out is the inability to believe and act decisively.
Over in the Real Estate Investing Stream, most seminar gurus will tell you, “Now is not a time for flipping, just buy and hold” and “just put in the minimum to make it clean and safe, you’ll never make a return on that energy stuff.”
The main stream in Building Performance is primarily occupied with building an industry around programs and the incentive monies which are flooding into our economy. Dont get me wrong, that’s not a bad idea. Its just not the input an Energy Wise House Flipper needs to be focused on.
Contrarians Are Different. They Think Differently And Feed Their Brains A Different Diet.
To Summarize: If you want to be successful as an Energy Wise House Flipping Investor (or any kind of a contrarian,) a Media Fast might be in order. Or at least some critical filtering. One filtering question might be: “What was this “expert” saying 3 years ago?” If he missed it so bad then, why should I listen to him now? Another might be to listen to people who are actually doing what you want to do, rather than academics,media people, and other spectators who prognosticate and repeat each others’ stuff.
Next week I’ll have lunch with my friend. I think we’ll meet in one of my energy wise renovation projects. Maybe the real thing will be enough to counter all the negative he’s heard. Maybe he’ll jump in and swim upstream with me. Maybe. Maybe you’d like to be a contrarian and swim upstream. Email me. I’m looking to build an Army of Contrarians…. and I’m willing to help anyone who will turn the TV off.
October 17th, 2009
What The Stock Market Taught Me About Energy Wise Real Estate Investing.
When I began to retire a couple years ago, (which I dont believe in, by the way) I thought I might do well in the Stock Market. The science and art of picking winners fascinated me so I began educating myself, a good idea in any new venture. My choice was options trading so I have lots of books and courses on options.
Keep track of real estate prices just like stock prices. Use "play money" until you're confident to invest the real thing.
The best advice in all of it was from Stephen Cooper who said, “Paper Trade (no real money) until you are winning 80% of your trades.” It was good advice and I’m glad I followed it. I never hit the 80% winners target, so I never invested my first real dollar in options trading.
I am passing on the same advice to those contemplating getting in to the business of Energy-Wise House Flipping aka Investing In Renovation of Foreclosed Homes. But its more than just ask a Realtor friend what they think. There are some real ways that you can Paper Trade before switching to live ammunition. Remember, the more mistakes you can make and get out of your system with “play money” the better you will do when you start using the real thing. Here’s a TOP 10 LIST of things you can do to prepare yourself.
1. Read the books recommended on this site. ”Flip” by Volani and “Are You Dumb Enough To Be Rich” by Barnett are two of the best. (These teach good Real Estate basics but know nothing of Building Performance. You’ll have to get that elsewhere.
2. Take the free classes that are offered by PG&E (Northern California) or your Utility Company. I’ve taken lot’s of them and they have all been good. California Building Performance Contractors Association also offers great classes, as does Build It Green. Education doesn’t cost. It pays.
3. Read everything on this site. The blog posts chronicle my journey into this business. Planet Savers University is about 500 slides that I’ve shared over the last 6 months on Tuesday Evenings at 6pm PST. (Sign up to have them delivered to your email in the subscribe box above, then call in and join the conversation.)
4. Select a neighborhood. Or two, or three, No more. Use localetrends.com , Trulia.com, & HotPads.com to help in this. See Energy-Wise Renovation Of Foreclosed Homes – Onsite Training 1 for the ratios and demographics that work well for me.
5. Here’s a difficult one. Find a good Realtor. A good Realtor for you, an energy wise, renovating, house flipping Investor. Plan on interviewing several. I lucked out, and the third one I tried has been a gem and the benchmark that I recommend. Serving you is different than serving the general population. Few Realtors are ready for the work you will bring them. Check out REALTORS: How Would You Like A Client Like Me? (or several) for some ideas.
6. Demand that your Realtor provide you with Comparative Market Analysis (CMA) on each neighborhood under consideration. They may have additional favorite tools. Use these to grow your knowledge of your neighborhoods. See Property Evaluation with the CMA andEvaluating A Property With A Comparative Market Analysis (CMA)
Keep track of buying and selling prices and calculate the "spread."
7. Choose several properties and make some offers through your Realtor. I know, we haven’t talked about where the money is coming from, Thats another post. See Where Do I Find The Money? & Basic Negotiations. For now we are just limbering up, calisthenics, or it’s like at the high school dance and no one’s on the dance floor. It’s breaking the ice. Of course you’ll want to be set up to digitally sign the offers. Your Realtor can help you with that or email me for my favorite.
8. Keep track of the offers you make and even ones that you didn’t even make but thought were a good deal. After they sell and close, the price will be public so your Realtor can get that information for you.
9. Visit Houses that are in your buying range. Also visit houses at the top of the market in your neighborhoods. This will give you an idea of what your finished product will sell for. Keep track of all your guesses and keep checking back. You’ll be getting smarter and smarter about real estate in your chosen neighborhoods.
10. Start collecting Contractor and Vendor Information. You’ll need it soon enough. Get the Black and Decker book on Home Improvements. It’s the best on the subject to give you a general knowledge of renovation if you dont have a remodeling background.
As you practice these 10 disciplines for a few months, you will become a “True Believer,” not only that you can really do this business, but even more importantly, that Energy Wise House Flipping is the Right Thing To Do, for the community, the planet, the neighborhood, the green jobs and for you. Then after you’ve seen several of your “paper trades” make money, you’ll be ready to start using live ammunition and making real money.
October 16th, 2009
Why Air Conditioning? Different Answers In Different Places
Luelle and I just got back from spending a week grandparenting in Cancun, Mexico. Taking the 3 year old Noah and 18 month old Abigail swimming through the underground river at Xcaret was the highlight along with much sand construction and time in the kiddie pool….
Abigail staying hydrated...
Wow, was it hot. Over 90 on both temperature and humidity. So I got to see first hand the “Other Reason For Air Conditioning” taking moisture out of the air. Water condensed on the Outside of bus windows when air conditioning was turned on in the bus. And the cold tile floors in our room condensed pools of water near the door way. (Sweep or door bottom not existent)
Condensation is a real concern for Energy Wise Renovators, especially for some of you who live in more humid areas than Fresno, where GreenEarthEquities renovates foreclosed homes. But it’s important even here with our tighter homes. I’ll share two examples and the solutions in upcoming posts.
In the mean time, Luelle will be recommending her travel clients schedule Cancun for a December – February vacation.
September 6th, 2009
Next “Wave” of Foreclosures: Fact or Fiction? (Dont Hold Your Breath)
We’ve all been told that there’s another “Wave” of foreclosures coming and I’ve even done some of my own planning based on that prediction. Almost all of the people I’ve heard the next “wave theory” from were just repeating what they had heard from someone else. The more thoughtful of these pointed to the continuing rise in Notices Of Default but we all scratched our heads because the expected actual foreclosures didn’t show up on the REO market. What happened? The foreclosures seemed to get lost on their way to the MLS…
I had nothing objective to base it on but just started losing my faith in the Foreclosure Wave theory a few months ago. Then I finally found an objective explanation of why the foreclosures aren’t showing up on the expected schedule. Check out this chart which shows what happened to foreclosures after Secretary Paulson’s Troubled Asset Relief announcement last September 19th. Here it is on the chart, courtesy of Sean O’Toole of Foreclosure Truth.com.
Before and After Secretary Paulson's announcement on Sept 19, 2008
O’Toole explains, “While many will point out this was necessary to keep home loans available and interest rates low, I think it also clearly sent banks a message… you will get more for these assets from the taxpayer than you will through foreclosure. Add to that the mark-to-model rule changes from the Federal Accounting Standards Board, and a ton of politicial pressure and it should be no surprise to anyone that foreclosures have slowed. The drop in foreclosure sales defies logic given the continued increase in properties scheduled to be foreclosed on. But defying logic to do what is politically expedient while simultaneously inflating bank earnings and bonuses and without regard to future consequences IS the new normal. We are yet again trading tomorrow for today.” (Full Article here)
Whether O’Toole’s analysis is right or wrong, the fact remains, Investors can no longer choose from many available foreclosures like in the “old days” of 6 months ago. I believe there are still good deals out there, we just have to look harder for them. The larger spread from buy to sell which is available in foreclosures is what allows me to do large energy saving packages in the renovation and still sell my projects to first time buyers. So even if the good deals are harder to find, they are worth the effort. Here are three techniques that I’m using while waiting for the wave.
1. Increased attention to Short Sales. As you know these can take a long time, so it’s good to have a lot of offers in the pipeline. My broker and I have turned our attention to Short Sales and recently got one (after 5 months)
My Newest Really Ugly House
2. Remember the Ugly House. The house that I just put in escrow last week may qualify for the “Ugliest House” award. Certainly in the City, Maybe the State. My perfect plan is to buy the Worst House in the neighborhood and make it the Best House in the neighborhood. We call it our Cinderella Process. I’ll be showing pictures and talking about my latest Ugly House on the RoundTable Conference Calls every Tuesday at 6pm Pacific. Sign up on the FREE WEBINAR form and I will send you the slide deck before the Conference Call.
3. More Conventional Ways Of Finding Motivated Sellers. We’ve really gotten spoiled this last year with such easy pickings in the REO market. It’s time to dust off some of the harder ways to find those great deals. Pre foreclosure letters, signs, working with attorneys…. none of which are my specialty, but I will post here and we can learn together.
The effort is worth it and we need really good deals if we are going to Save The Planet, One House At A Time thru Energy-Wise House Flipping.
And who knows. The political winds and banking rules may change and the “Wave” may really come. Wise investors will have a little cash available for the buying party when it’s Wave Season.
July 19th, 2009
Energy-Wise House Flipper Reveals Secrets To Investing In Troubled Economy
Nice Remodeling (The Wow! Package) combines with attention to all details (The Done Package) and the Energy Package to present a compelling final product to the HomeBuyer.
It was the best of times, it was the worst of times. The famous words of Charles Dickens were never more true than now for the real estate professional who is willing to think outside the box. After 33 years in Real Estate and Construction which included stints as a Real Estate Agent, a Broker, but mainly a General Contractor, my wife and I “retired” last year and looked around for new careers to land in.
We both found areas that were a passion for us, that Common Wisdom (and our friends) said, “Oh that’s not a good choice in this Economy.” She has become a top selling Travel Agency and I have become an Energy-Wise House Flipper. And we’re both having more fun than ever before.
About a year ago I realized the “Perfect Storm” of Opportunity for me to jump back into real estate investing. Foreclosures were at an all time high, Interest rates are down, Rents are staying up, Banks are desperate to get rid of REO inventory. It seemed a great time to buy foreclosures and install all the energy saving items and the remodeling that I had sold as a contractor for 3 decades.
My Realtor and Contractor friends said, “But Dave, you wont be able to sell your houses if you put that much into them.” Well, now that the first 5 are sold at a profit, I am convinced that whether it is the best of times or worst of times has little to do with the times and all to do with how we play the cards that life deals us.
Those first 5 Flips helped develop and clarify the “Three Package System” of Renovation that is working well in today’s economy. I realized that I was having so much fun and this was such a great opportunity that I wanted to share what was working for me in the hopes of helping someone who needed a new career or just a boost in what they were already doing. So I started teaching classes on Energy-Wise House Flipping every Tuesday on free conference calls as well as classes for our Utility Company and Trade Association. (PG&E & CBPCA)
Each week I send out a series of Power Point pdf’s by email to all who are interested. Then during the conference call, each person can self navigate through the slides and at the end of the call, keep the slides for reference. Here is a sample of the training on Energy-Wise House Flipping (Click Here). Every Tuesday at 6 PM Pacific I host a free conference call on Energy Wise House Flipping. The Call-In number is 605 475 4800. The Access Code is 795323# If any of this about a new career or an addition to what you are doing, makes sense to you, you are welcome to join us. I hope to see you on the call. Email me first and I will send you the slides ahead of time. (DJR5650@MAC.com)
I am amazed at the people who jump on board this train in these best of times and worst of times. And who doesn’t jump on. One of my best students is a boat canvass seamstress! And many building scientists and real estate professionals haven’t seen their way out of the status quo to grasp this golden opportunity.
We call it PlanetSavers Universtiy because we really are “Saving The Planet, One (foreclosed) House At A Time.” Our teaching at PlanetSavers is unique. It is more than just House Flipping, more than just Wow! Remodeling & more than just smart buying and selling of real estate. It includes all of that and could benefit many if it were better promoted to those who are ready for something different in their business. I am just now starting this Tomato Blog for that purpose but to move to the next level, I need to incorporate the Web 2.0 and social media that will be featured at Inman Connect in San Fransisco August 5-7.
Jim, these are the reasons that you should see me in San Fransisco:
1. The Uniqueness of my message. It is different from anything else on the Vine or even the Guru Seminars for thousands of dollars.
2. My desire to freely share my secrets.
3. My desire to embrace the new technology. (The 50 words exactly for the contest start with “Jim”)
I hope to see you all in San Fransisco
Dave Robinson, Energy-Wise House Flipper
Gary Richardson completing the charge on the roof mounted Mini Split.
Sandy's Country Junction
GreenEarthEquities kitchen with custom tile back splash & imported granite.
Excuse Me, That Thing You Just Did… You Cant Do That! (And Other Pessimistic Nonsense)
Its been fun this last year listening to people tell me it’s impossible to do complete remodels with deep energy retrofits and sell them at a profit. ”Difficult anytime and Impossible in this economy,” they say. But since that is exactly what we’ve developed over this last year, it leads to an interesting conversation.
It happened again today. An old friend and I were re-connecting and in the catching up, he expressed surprise that I was flipping houses with full energy retrofits. “I didn’t think you could do that in this market.”
Bad News Travels Fast And A Little Bit Goes A Long Way.
Where does all this negativity and pessimism come from? The main thing I can think of is an over-indulgence in mainstream media consumption. Followed by “Conventional Wisdom & Urban Legend,” stuff passed around at the water cooler and golf course….No basis in reality required.
Since pessimism is so prevalent, and its consumption is so detrimental to one’s success, my advice is that if a person wants to be successful as an Energy Wise House Flipper, they would do well to go on a Media and Gossip Fast.
This is good advice for any contrarian who determines to swim against the current of the main stream. But wait, there’s more! To maintain forward progress swimming against the main stream, you must not only close your ears to the mainstream media and friends who repeat its negative mantras… You’ll have to filter carefully the advice of experts of your own industry.
Being an Energy-Wise Renovating House Flipping Investor requires some knowledge of three industries, Real Estate, Remodeling, and Building Performance-Green Building. The main stream in each of those industries repeats the pessimism of the general mainstream media. So a successful Energy Wise House Flipper will find themselves swimming against the current, even in the industries that he or she is demonstrating success in.
A Diet Of This Stuff Will Make It Hard To Stay Positive And Be Creative.
My friend is a contractor, a very good one, probably the best one in his trade in our city. Why was he surprised that I’m being successful at Energy Wise House Flipping? I say the culprit is the pessimism that he hears at his supply house, and from the general contractors he works for and the coffee shop talk combined with the nightly news…… just too much negativity for a human brain to stay positive in.
Am I saying to be an ostrich and stick your head in the sand? Not exactly. But what if the sand is in sand bags and bullets are whizzing overhead? Negativity bullets come at you every time you turn on the news. Maybe you’d better duck behind those sand bags. It’s easy, just turn it off.
It’s been said that the brain is like a computer, and GIGO is the number one rule, Garbage In, Garbage Out. In the case of ingesting negative and pessimistic garbage, the garbage that comes out is the inability to believe and act decisively.
Over in the Real Estate Investing Stream, most seminar gurus will tell you, “Now is not a time for flipping, just buy and hold” and “just put in the minimum to make it clean and safe, you’ll never make a return on that energy stuff.”
The main stream in Building Performance is primarily occupied with building an industry around programs and the incentive monies which are flooding into our economy. Dont get me wrong, that’s not a bad idea. Its just not the input an Energy Wise House Flipper needs to be focused on.
Contrarians Are Different. They Think Differently And Feed Their Brains A Different Diet.
To Summarize: If you want to be successful as an Energy Wise House Flipping Investor (or any kind of a contrarian,) a Media Fast might be in order. Or at least some critical filtering. One filtering question might be: “What was this “expert” saying 3 years ago?” If he missed it so bad then, why should I listen to him now? Another might be to listen to people who are actually doing what you want to do, rather than academics,media people, and other spectators who prognosticate and repeat each others’ stuff.
Next week I’ll have lunch with my friend. I think we’ll meet in one of my energy wise renovation projects. Maybe the real thing will be enough to counter all the negative he’s heard. Maybe he’ll jump in and swim upstream with me. Maybe. Maybe you’d like to be a contrarian and swim upstream. Email me. I’m looking to build an Army of Contrarians…. and I’m willing to help anyone who will turn the TV off.
October 17th, 2009
What The Stock Market Taught Me About Energy Wise Real Estate Investing.
When I began to retire a couple years ago, (which I dont believe in, by the way) I thought I might do well in the Stock Market. The science and art of picking winners fascinated me so I began educating myself, a good idea in any new venture. My choice was options trading so I have lots of books and courses on options.
Keep track of real estate prices just like stock prices. Use "play money" until you're confident to invest the real thing.
The best advice in all of it was from Stephen Cooper who said, “Paper Trade (no real money) until you are winning 80% of your trades.” It was good advice and I’m glad I followed it. I never hit the 80% winners target, so I never invested my first real dollar in options trading.
I am passing on the same advice to those contemplating getting in to the business of Energy-Wise House Flipping aka Investing In Renovation of Foreclosed Homes. But its more than just ask a Realtor friend what they think. There are some real ways that you can Paper Trade before switching to live ammunition. Remember, the more mistakes you can make and get out of your system with “play money” the better you will do when you start using the real thing. Here’s a TOP 10 LIST of things you can do to prepare yourself.
1. Read the books recommended on this site. ”Flip” by Volani and “Are You Dumb Enough To Be Rich” by Barnett are two of the best. (These teach good Real Estate basics but know nothing of Building Performance. You’ll have to get that elsewhere.
2. Take the free classes that are offered by PG&E (Northern California) or your Utility Company. I’ve taken lot’s of them and they have all been good. California Building Performance Contractors Association also offers great classes, as does Build It Green. Education doesn’t cost. It pays.
3. Read everything on this site. The blog posts chronicle my journey into this business. Planet Savers University is about 500 slides that I’ve shared over the last 6 months on Tuesday Evenings at 6pm PST. (Sign up to have them delivered to your email in the subscribe box above, then call in and join the conversation.)
4. Select a neighborhood. Or two, or three, No more. Use localetrends.com , Trulia.com, & HotPads.com to help in this. See Energy-Wise Renovation Of Foreclosed Homes – Onsite Training 1 for the ratios and demographics that work well for me.
5. Here’s a difficult one. Find a good Realtor. A good Realtor for you, an energy wise, renovating, house flipping Investor. Plan on interviewing several. I lucked out, and the third one I tried has been a gem and the benchmark that I recommend. Serving you is different than serving the general population. Few Realtors are ready for the work you will bring them. Check out REALTORS: How Would You Like A Client Like Me? (or several) for some ideas.
6. Demand that your Realtor provide you with Comparative Market Analysis (CMA) on each neighborhood under consideration. They may have additional favorite tools. Use these to grow your knowledge of your neighborhoods. See Property Evaluation with the CMA andEvaluating A Property With A Comparative Market Analysis (CMA)
Keep track of buying and selling prices and calculate the "spread."
7. Choose several properties and make some offers through your Realtor. I know, we haven’t talked about where the money is coming from, Thats another post. See Where Do I Find The Money? & Basic Negotiations. For now we are just limbering up, calisthenics, or it’s like at the high school dance and no one’s on the dance floor. It’s breaking the ice. Of course you’ll want to be set up to digitally sign the offers. Your Realtor can help you with that or email me for my favorite.
8. Keep track of the offers you make and even ones that you didn’t even make but thought were a good deal. After they sell and close, the price will be public so your Realtor can get that information for you.
9. Visit Houses that are in your buying range. Also visit houses at the top of the market in your neighborhoods. This will give you an idea of what your finished product will sell for. Keep track of all your guesses and keep checking back. You’ll be getting smarter and smarter about real estate in your chosen neighborhoods.
10. Start collecting Contractor and Vendor Information. You’ll need it soon enough. Get the Black and Decker book on Home Improvements. It’s the best on the subject to give you a general knowledge of renovation if you dont have a remodeling background.
As you practice these 10 disciplines for a few months, you will become a “True Believer,” not only that you can really do this business, but even more importantly, that Energy Wise House Flipping is the Right Thing To Do, for the community, the planet, the neighborhood, the green jobs and for you. Then after you’ve seen several of your “paper trades” make money, you’ll be ready to start using live ammunition and making real money.
October 16th, 2009
Why Air Conditioning? Different Answers In Different Places
Luelle and I just got back from spending a week grandparenting in Cancun, Mexico. Taking the 3 year old Noah and 18 month old Abigail swimming through the underground river at Xcaret was the highlight along with much sand construction and time in the kiddie pool….
Abigail staying hydrated...
Wow, was it hot. Over 90 on both temperature and humidity. So I got to see first hand the “Other Reason For Air Conditioning” taking moisture out of the air. Water condensed on the Outside of bus windows when air conditioning was turned on in the bus. And the cold tile floors in our room condensed pools of water near the door way. (Sweep or door bottom not existent)
Condensation is a real concern for Energy Wise Renovators, especially for some of you who live in more humid areas than Fresno, where GreenEarthEquities renovates foreclosed homes. But it’s important even here with our tighter homes. I’ll share two examples and the solutions in upcoming posts.
In the mean time, Luelle will be recommending her travel clients schedule Cancun for a December – February vacation.
September 6th, 2009
Next “Wave” of Foreclosures: Fact or Fiction? (Dont Hold Your Breath)
We’ve all been told that there’s another “Wave” of foreclosures coming and I’ve even done some of my own planning based on that prediction. Almost all of the people I’ve heard the next “wave theory” from were just repeating what they had heard from someone else. The more thoughtful of these pointed to the continuing rise in Notices Of Default but we all scratched our heads because the expected actual foreclosures didn’t show up on the REO market. What happened? The foreclosures seemed to get lost on their way to the MLS…
I had nothing objective to base it on but just started losing my faith in the Foreclosure Wave theory a few months ago. Then I finally found an objective explanation of why the foreclosures aren’t showing up on the expected schedule. Check out this chart which shows what happened to foreclosures after Secretary Paulson’s Troubled Asset Relief announcement last September 19th. Here it is on the chart, courtesy of Sean O’Toole of Foreclosure Truth.com.
Before and After Secretary Paulson's announcement on Sept 19, 2008
O’Toole explains, “While many will point out this was necessary to keep home loans available and interest rates low, I think it also clearly sent banks a message… you will get more for these assets from the taxpayer than you will through foreclosure. Add to that the mark-to-model rule changes from the Federal Accounting Standards Board, and a ton of politicial pressure and it should be no surprise to anyone that foreclosures have slowed. The drop in foreclosure sales defies logic given the continued increase in properties scheduled to be foreclosed on. But defying logic to do what is politically expedient while simultaneously inflating bank earnings and bonuses and without regard to future consequences IS the new normal. We are yet again trading tomorrow for today.” (Full Article here)
Whether O’Toole’s analysis is right or wrong, the fact remains, Investors can no longer choose from many available foreclosures like in the “old days” of 6 months ago. I believe there are still good deals out there, we just have to look harder for them. The larger spread from buy to sell which is available in foreclosures is what allows me to do large energy saving packages in the renovation and still sell my projects to first time buyers. So even if the good deals are harder to find, they are worth the effort. Here are three techniques that I’m using while waiting for the wave.
1. Increased attention to Short Sales. As you know these can take a long time, so it’s good to have a lot of offers in the pipeline. My broker and I have turned our attention to Short Sales and recently got one (after 5 months)
My Newest Really Ugly House
2. Remember the Ugly House. The house that I just put in escrow last week may qualify for the “Ugliest House” award. Certainly in the City, Maybe the State. My perfect plan is to buy the Worst House in the neighborhood and make it the Best House in the neighborhood. We call it our Cinderella Process. I’ll be showing pictures and talking about my latest Ugly House on the RoundTable Conference Calls every Tuesday at 6pm Pacific. Sign up on the FREE WEBINAR form and I will send you the slide deck before the Conference Call.
3. More Conventional Ways Of Finding Motivated Sellers. We’ve really gotten spoiled this last year with such easy pickings in the REO market. It’s time to dust off some of the harder ways to find those great deals. Pre foreclosure letters, signs, working with attorneys…. none of which are my specialty, but I will post here and we can learn together.
The effort is worth it and we need really good deals if we are going to Save The Planet, One House At A Time thru Energy-Wise House Flipping.
And who knows. The political winds and banking rules may change and the “Wave” may really come. Wise investors will have a little cash available for the buying party when it’s Wave Season.
July 19th, 2009
Energy-Wise House Flipper Reveals Secrets To Investing In Troubled Economy
Nice Remodeling (The Wow! Package) combines with attention to all details (The Done Package) and the Energy Package to present a compelling final product to the HomeBuyer.
It was the best of times, it was the worst of times. The famous words of Charles Dickens were never more true than now for the real estate professional who is willing to think outside the box. After 33 years in Real Estate and Construction which included stints as a Real Estate Agent, a Broker, but mainly a General Contractor, my wife and I “retired” last year and looked around for new careers to land in.
We both found areas that were a passion for us, that Common Wisdom (and our friends) said, “Oh that’s not a good choice in this Economy.” She has become a top selling Travel Agency and I have become an Energy-Wise House Flipper. And we’re both having more fun than ever before.
About a year ago I realized the “Perfect Storm” of Opportunity for me to jump back into real estate investing. Foreclosures were at an all time high, Interest rates are down, Rents are staying up, Banks are desperate to get rid of REO inventory. It seemed a great time to buy foreclosures and install all the energy saving items and the remodeling that I had sold as a contractor for 3 decades.
My Realtor and Contractor friends said, “But Dave, you wont be able to sell your houses if you put that much into them.” Well, now that the first 5 are sold at a profit, I am convinced that whether it is the best of times or worst of times has little to do with the times and all to do with how we play the cards that life deals us.
Those first 5 Flips helped develop and clarify the “Three Package System” of Renovation that is working well in today’s economy. I realized that I was having so much fun and this was such a great opportunity that I wanted to share what was working for me in the hopes of helping someone who needed a new career or just a boost in what they were already doing. So I started teaching classes on Energy-Wise House Flipping every Tuesday on free conference calls as well as classes for our Utility Company and Trade Association. (PG&E & CBPCA)
Each week I send out a series of Power Point pdf’s by email to all who are interested. Then during the conference call, each person can self navigate through the slides and at the end of the call, keep the slides for reference. Here is a sample of the training on Energy-Wise House Flipping (Click Here). Every Tuesday at 6 PM Pacific I host a free conference call on Energy Wise House Flipping. The Call-In number is 605 475 4800. The Access Code is 795323# If any of this about a new career or an addition to what you are doing, makes sense to you, you are welcome to join us. I hope to see you on the call. Email me first and I will send you the slides ahead of time. (DJR5650@MAC.com)
I am amazed at the people who jump on board this train in these best of times and worst of times. And who doesn’t jump on. One of my best students is a boat canvass seamstress! And many building scientists and real estate professionals haven’t seen their way out of the status quo to grasp this golden opportunity.
We call it PlanetSavers Universtiy because we really are “Saving The Planet, One (foreclosed) House At A Time.” Our teaching at PlanetSavers is unique. It is more than just House Flipping, more than just Wow! Remodeling & more than just smart buying and selling of real estate. It includes all of that and could benefit many if it were better promoted to those who are ready for something different in their business. I am just now starting this Tomato Blog for that purpose but to move to the next level, I need to incorporate the Web 2.0 and social media that will be featured at Inman Connect in San Fransisco August 5-7.
Jim, these are the reasons that you should see me in San Fransisco:
1. The Uniqueness of my message. It is different from anything else on the Vine or even the Guru Seminars for thousands of dollars.
2. My desire to freely share my secrets.
3. My desire to embrace the new technology. (The 50 words exactly for the contest start with “Jim”)
I hope to see you all in San Fransisco
Dave Robinson, Energy-Wise House Flipper
Keep track of real estate prices just like stock prices. Use "play money" until you're confident to invest the real thing.
Keep track of buying and selling prices and calculate the "spread."
Why Air Conditioning? Different Answers In Different Places
Luelle and I just got back from spending a week grandparenting in Cancun, Mexico. Taking the 3 year old Noah and 18 month old Abigail swimming through the underground river at Xcaret was the highlight along with much sand construction and time in the kiddie pool….
Abigail staying hydrated...
Wow, was it hot. Over 90 on both temperature and humidity. So I got to see first hand the “Other Reason For Air Conditioning” taking moisture out of the air. Water condensed on the Outside of bus windows when air conditioning was turned on in the bus. And the cold tile floors in our room condensed pools of water near the door way. (Sweep or door bottom not existent)
Condensation is a real concern for Energy Wise Renovators, especially for some of you who live in more humid areas than Fresno, where GreenEarthEquities renovates foreclosed homes. But it’s important even here with our tighter homes. I’ll share two examples and the solutions in upcoming posts.
In the mean time, Luelle will be recommending her travel clients schedule Cancun for a December – February vacation.
September 6th, 2009
Next “Wave” of Foreclosures: Fact or Fiction? (Dont Hold Your Breath)
We’ve all been told that there’s another “Wave” of foreclosures coming and I’ve even done some of my own planning based on that prediction. Almost all of the people I’ve heard the next “wave theory” from were just repeating what they had heard from someone else. The more thoughtful of these pointed to the continuing rise in Notices Of Default but we all scratched our heads because the expected actual foreclosures didn’t show up on the REO market. What happened? The foreclosures seemed to get lost on their way to the MLS…
I had nothing objective to base it on but just started losing my faith in the Foreclosure Wave theory a few months ago. Then I finally found an objective explanation of why the foreclosures aren’t showing up on the expected schedule. Check out this chart which shows what happened to foreclosures after Secretary Paulson’s Troubled Asset Relief announcement last September 19th. Here it is on the chart, courtesy of Sean O’Toole of Foreclosure Truth.com.
Before and After Secretary Paulson's announcement on Sept 19, 2008
O’Toole explains, “While many will point out this was necessary to keep home loans available and interest rates low, I think it also clearly sent banks a message… you will get more for these assets from the taxpayer than you will through foreclosure. Add to that the mark-to-model rule changes from the Federal Accounting Standards Board, and a ton of politicial pressure and it should be no surprise to anyone that foreclosures have slowed. The drop in foreclosure sales defies logic given the continued increase in properties scheduled to be foreclosed on. But defying logic to do what is politically expedient while simultaneously inflating bank earnings and bonuses and without regard to future consequences IS the new normal. We are yet again trading tomorrow for today.” (Full Article here)
Whether O’Toole’s analysis is right or wrong, the fact remains, Investors can no longer choose from many available foreclosures like in the “old days” of 6 months ago. I believe there are still good deals out there, we just have to look harder for them. The larger spread from buy to sell which is available in foreclosures is what allows me to do large energy saving packages in the renovation and still sell my projects to first time buyers. So even if the good deals are harder to find, they are worth the effort. Here are three techniques that I’m using while waiting for the wave.
1. Increased attention to Short Sales. As you know these can take a long time, so it’s good to have a lot of offers in the pipeline. My broker and I have turned our attention to Short Sales and recently got one (after 5 months)
My Newest Really Ugly House
2. Remember the Ugly House. The house that I just put in escrow last week may qualify for the “Ugliest House” award. Certainly in the City, Maybe the State. My perfect plan is to buy the Worst House in the neighborhood and make it the Best House in the neighborhood. We call it our Cinderella Process. I’ll be showing pictures and talking about my latest Ugly House on the RoundTable Conference Calls every Tuesday at 6pm Pacific. Sign up on the FREE WEBINAR form and I will send you the slide deck before the Conference Call.
3. More Conventional Ways Of Finding Motivated Sellers. We’ve really gotten spoiled this last year with such easy pickings in the REO market. It’s time to dust off some of the harder ways to find those great deals. Pre foreclosure letters, signs, working with attorneys…. none of which are my specialty, but I will post here and we can learn together.
The effort is worth it and we need really good deals if we are going to Save The Planet, One House At A Time thru Energy-Wise House Flipping.
And who knows. The political winds and banking rules may change and the “Wave” may really come. Wise investors will have a little cash available for the buying party when it’s Wave Season.
July 19th, 2009
Energy-Wise House Flipper Reveals Secrets To Investing In Troubled Economy
Nice Remodeling (The Wow! Package) combines with attention to all details (The Done Package) and the Energy Package to present a compelling final product to the HomeBuyer.
It was the best of times, it was the worst of times. The famous words of Charles Dickens were never more true than now for the real estate professional who is willing to think outside the box. After 33 years in Real Estate and Construction which included stints as a Real Estate Agent, a Broker, but mainly a General Contractor, my wife and I “retired” last year and looked around for new careers to land in.
We both found areas that were a passion for us, that Common Wisdom (and our friends) said, “Oh that’s not a good choice in this Economy.” She has become a top selling Travel Agency and I have become an Energy-Wise House Flipper. And we’re both having more fun than ever before.
About a year ago I realized the “Perfect Storm” of Opportunity for me to jump back into real estate investing. Foreclosures were at an all time high, Interest rates are down, Rents are staying up, Banks are desperate to get rid of REO inventory. It seemed a great time to buy foreclosures and install all the energy saving items and the remodeling that I had sold as a contractor for 3 decades.
My Realtor and Contractor friends said, “But Dave, you wont be able to sell your houses if you put that much into them.” Well, now that the first 5 are sold at a profit, I am convinced that whether it is the best of times or worst of times has little to do with the times and all to do with how we play the cards that life deals us.
Those first 5 Flips helped develop and clarify the “Three Package System” of Renovation that is working well in today’s economy. I realized that I was having so much fun and this was such a great opportunity that I wanted to share what was working for me in the hopes of helping someone who needed a new career or just a boost in what they were already doing. So I started teaching classes on Energy-Wise House Flipping every Tuesday on free conference calls as well as classes for our Utility Company and Trade Association. (PG&E & CBPCA)
Each week I send out a series of Power Point pdf’s by email to all who are interested. Then during the conference call, each person can self navigate through the slides and at the end of the call, keep the slides for reference. Here is a sample of the training on Energy-Wise House Flipping (Click Here). Every Tuesday at 6 PM Pacific I host a free conference call on Energy Wise House Flipping. The Call-In number is 605 475 4800. The Access Code is 795323# If any of this about a new career or an addition to what you are doing, makes sense to you, you are welcome to join us. I hope to see you on the call. Email me first and I will send you the slides ahead of time. (DJR5650@MAC.com)
I am amazed at the people who jump on board this train in these best of times and worst of times. And who doesn’t jump on. One of my best students is a boat canvass seamstress! And many building scientists and real estate professionals haven’t seen their way out of the status quo to grasp this golden opportunity.
We call it PlanetSavers Universtiy because we really are “Saving The Planet, One (foreclosed) House At A Time.” Our teaching at PlanetSavers is unique. It is more than just House Flipping, more than just Wow! Remodeling & more than just smart buying and selling of real estate. It includes all of that and could benefit many if it were better promoted to those who are ready for something different in their business. I am just now starting this Tomato Blog for that purpose but to move to the next level, I need to incorporate the Web 2.0 and social media that will be featured at Inman Connect in San Fransisco August 5-7.
Jim, these are the reasons that you should see me in San Fransisco:
1. The Uniqueness of my message. It is different from anything else on the Vine or even the Guru Seminars for thousands of dollars.
2. My desire to freely share my secrets.
3. My desire to embrace the new technology. (The 50 words exactly for the contest start with “Jim”)
I hope to see you all in San Fransisco
Dave Robinson, Energy-Wise House Flipper
Before and After Secretary Paulson's announcement on Sept 19, 2008
My Newest Really Ugly House
Energy-Wise House Flipper Reveals Secrets To Investing In Troubled Economy
Nice Remodeling (The Wow! Package) combines with attention to all details (The Done Package) and the Energy Package to present a compelling final product to the HomeBuyer.
It was the best of times, it was the worst of times. The famous words of Charles Dickens were never more true than now for the real estate professional who is willing to think outside the box. After 33 years in Real Estate and Construction which included stints as a Real Estate Agent, a Broker, but mainly a General Contractor, my wife and I “retired” last year and looked around for new careers to land in.
We both found areas that were a passion for us, that Common Wisdom (and our friends) said, “Oh that’s not a good choice in this Economy.” She has become a top selling Travel Agency and I have become an Energy-Wise House Flipper. And we’re both having more fun than ever before.
About a year ago I realized the “Perfect Storm” of Opportunity for me to jump back into real estate investing. Foreclosures were at an all time high, Interest rates are down, Rents are staying up, Banks are desperate to get rid of REO inventory. It seemed a great time to buy foreclosures and install all the energy saving items and the remodeling that I had sold as a contractor for 3 decades.
My Realtor and Contractor friends said, “But Dave, you wont be able to sell your houses if you put that much into them.” Well, now that the first 5 are sold at a profit, I am convinced that whether it is the best of times or worst of times has little to do with the times and all to do with how we play the cards that life deals us.
Those first 5 Flips helped develop and clarify the “Three Package System” of Renovation that is working well in today’s economy. I realized that I was having so much fun and this was such a great opportunity that I wanted to share what was working for me in the hopes of helping someone who needed a new career or just a boost in what they were already doing. So I started teaching classes on Energy-Wise House Flipping every Tuesday on free conference calls as well as classes for our Utility Company and Trade Association. (PG&E & CBPCA)
Each week I send out a series of Power Point pdf’s by email to all who are interested. Then during the conference call, each person can self navigate through the slides and at the end of the call, keep the slides for reference. Here is a sample of the training on Energy-Wise House Flipping (Click Here). Every Tuesday at 6 PM Pacific I host a free conference call on Energy Wise House Flipping. The Call-In number is 605 475 4800. The Access Code is 795323# If any of this about a new career or an addition to what you are doing, makes sense to you, you are welcome to join us. I hope to see you on the call. Email me first and I will send you the slides ahead of time. (DJR5650@MAC.com)
I am amazed at the people who jump on board this train in these best of times and worst of times. And who doesn’t jump on. One of my best students is a boat canvass seamstress! And many building scientists and real estate professionals haven’t seen their way out of the status quo to grasp this golden opportunity.
We call it PlanetSavers Universtiy because we really are “Saving The Planet, One (foreclosed) House At A Time.” Our teaching at PlanetSavers is unique. It is more than just House Flipping, more than just Wow! Remodeling & more than just smart buying and selling of real estate. It includes all of that and could benefit many if it were better promoted to those who are ready for something different in their business. I am just now starting this Tomato Blog for that purpose but to move to the next level, I need to incorporate the Web 2.0 and social media that will be featured at Inman Connect in San Fransisco August 5-7.
Jim, these are the reasons that you should see me in San Fransisco:
1. The Uniqueness of my message. It is different from anything else on the Vine or even the Guru Seminars for thousands of dollars.
2. My desire to freely share my secrets.
3. My desire to embrace the new technology. (The 50 words exactly for the contest start with “Jim”)
I hope to see you all in San Fransisco
Dave Robinson, Energy-Wise House Flipper
Solar PV System for 3405 N. Miami
Interior 3405 N. Miami, Fresno CA
Exterior 3405 N. Miami, Fresno CA
3332 N Ezie $165,000 PENDING
5967 E Fedora $160,000 Pending
3328 N Purdue SOLD
145 Gettysburg SOLD
5741 E Bernadine SOLD
5664 E Bernadine SOLD
4440 N Eddy SOLD
3915 E Townsend 135K Pending
