January 2011 Part 1

Join Dave Robinson and several energy wise house flipper enthusiasts on a Fresno Field Trip that includes 503 Scott Ave Clovis CA in the early stages of remodel.  Bryan Martin, one half of GEE’s favorite real estate agent team, shows the group a new property were Dave discusses the do’s and don’t of making an offer for a potential house flip.

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Part 1 of 3: Join Dave as he interviews Sam Okenyi Jr. and Chris Williams from Triforce Real Estate, Wholesale residential real estate marketers from Fresno CA. Parts 2 and 3 are available to G.E.A.R. members. For more information click here.

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Your growing family just isn't fitting in that apartment. It's time for your first home ... And you being a patriotic American want it to be Green and save Energy. Sounds Logical...

Our next project. See that palm tree and fireplace? They both have to go. They are messing up my Solar Exposure!

We are in escrow to purchase our first property from a “Wholesaler.”    I didn’t see it coming, but I’m glad I got a call a couple of weeks ago from Sam Okenyi & his partner, Chris Williams.    They were familiar with our Green Renovation and Classy Remodeling work from our job sign and our CraigsList ads and knew that we would be the most likely buyer on their list if they could just get us to take a look at it. (See video of my interview with Sam and Chris) They had found a real mess of a house, un-permitted additions, everything worn out, and a previous attempt at a duplex conversion and had it under contract with a few days left to find the buyer.

Fortunately I had just jumped back into the market after taking a break to evaluate my first 10 transactions and make any adjustments to the mission that might be needed.   Here’s what I had found:

1.  All 10 jobs were complete and sold or in lease or lease option status.

2.  We made money on all of them,  from $2,000 to $28,000 each.

3.  We always sold for about $20K over the rest of the neighborhood because of the value of our renovations

4.  Appraisals came in OK except for the last one, which we are providing details the appraiser missed.

5.  2008 – 2009 was a lot different than the beginning of 2010.   A contributor to this was the $8K tax credit which stimulated all the players and made good deals harder to find.    The “Crazy Time” provided a good opportunity for me to slow down and finish up all projects and evaluate.

6.  Time to get back in the market.   I made 5 offers in August, one still has life in it.    The “retail” market has returned to acceptable levels where some good deals, (not killer deals) are available.   In the interim, I had investigated the courthouse steps, (too much work for my taste), direct mail, (lots of sellers wanting to sell, but once again, not my style)   So I was ripe for a wholesale offer.

The great thing about buying from a wholesaler if they have secured a really good deal and provided me with a good clear package is the amount of time it saves me.    Sam had emailed me a clear package with his analysis and the comps.   So when I met him on the job, I was already educated enough on the area to say, “Let’s do it!”

I made it clear to Sam and Chris what we are looking for,  Real Ugly Houses.    Guess what?  Now that they know that,  and know that we are real buyers, they will pull out all stops and really start combing the neighborhoods for us.   It’s a Win – Win.    I’ve added a marketing department to my team.   And I dont have to pay them unless they produce.    What a country!

Wholesalers are probably like Teachers (I used to be one)    The good ones are way under paid and the bad ones are over paid.   What makes a good wholesaler that is worth the spread that they earn, between what they secure the property for, and what they sell it to me for?     These 3 things are important

1.  They aren’t trying to get rich on one job.    (They know the buyer has to make a profit, or they wont come back for seconds)

2.  They communicate clearly.   They know what I want and make a clear presentation

3.  They know how to do same day closings and work with an experienced escrow person.

If all that’s in place, a good wholesaler can save you a lot of time.   If you’re interested, you can call Sam at 559 394 9505 or Chris at 559 593 2987.      Or check out the 3 part Video Interview of me interviewing them

We talked about Wholesaling in General and how wholesalers and investors can work together as a team.

Have you ever “day dreamed” or fantasized, “What if life circumstances changed & you re-located across the country and got to choose a new place to live?” I know that if you’re reading this blog, you’re at least somewhat of a Home Performance Geek like me. And I know that only a few of us in this industry actually live in our “Home Performance Dream Home”…. So a little day dreaming and “What If?” thinking is in order for most of us.

Pretty, You Bet! Home Performance? Not So Much.

A couple months ago this Home Performance Day Dream began to come true for me. Son in Law got a job inPurcellville Virginia, so Luelle and I are “following the grandbabies” 3000 miles across the country into a whole new Climate Zone.

At first it was easy, I found a realtor who found a lot that borders on Open Space. That, plus all the “Energy Options” was all I wanted in our new home …. I’ll let my wife pick everything else and the production builder promised to be done in 120 days, maybe less. Sound pretty normal for an Energy Geek Guy?

Then I ran into the reality that maybe “Production Building” and “Home Performance” may not go together too well…

The builder’s website reveals “Last Century” framing details. 2×4 @ 16″ OC, double top plate, bulky corners. It would be so easy to do so much better, from a Home Performance point of view.

The builder has won design awards and offers a lot of pretty house for the money. My wife was sold, and I was going along… until the construction details started being revealed. The standard home was being built to the same standards that I used in 1980. 2×4 walls with no rigid insulation, R-30 ceilings, No sealing of shell or ducts, no treatment of band joists, not even all dual pane windows, Ouch! I could see that I was headed for an identity crisis.

Obviously if I want my perfect Home Performance Dream House, I’ll have to build it myself, And that’s probably what will happen over the next couple of years. But I want to move into something in 120 days. So I’m considering my options and asking for as much Home Performance as I can get from the production builder. They were adamant, no 2×6′s. Rigid Insulation, They are thinking about it. I guess no one’s ever asked for it before.

The way I see it, there are 3 areas of Energy improvement that can be done to a pretty production home:

1. The items the production builder will allow you to upgrade and pay extra for

2. The things that you or someone you hire can do on nights and weekends, additional sealing etc.

3. The things you just have to change after you move in.

So that’s where I am, negotiating for as much of #1 as I can get. And then as much of # 2 as they will allow. And wondering if I have a “breaking point” An amount of last century’s building standards that I just cant live with and still be me.

Have you ever been in this place before? Please Comment. Any tips on negotiating with a production builder who has systems in place that are working for him….?   I’ll let you know how this develops.

PS I found this Top 10 List of ways to improve a new house by Martin Holladay.   Would you agree?   What would you add?

After some good pizza and Q&A we will visit our second Unique attraction.   The most recently completed GreenEarthEquities Energy-Wise Renovation features a totally new type of Air Conditioning and Heating System, a rarely seen Heat Recovery Ventilator system and the adaptation of a New Constructions technique rarely seen in Renovation.

The home is featured on the front cover of Home Energy Magazine. The cover photo shows the Mini Split Heat Pump but the article is mainly about the whole concept of Energy Wise Renovation.

Finally, (for this stop on the tour) we’ll reveal the reason that all this Energy Efficiency sells so easily in what most people call a depressed market.   I’ll also talk about the current sales efforts to sell this home with some new techniques that we are developing right now.

Then we’ll visit the house referred to in previous blogposts as the “Ugliest House In The County”   It is about 50% complete and not really ugly anymore…. just in the middle of renovation.

Then we’ll finish with another project that we just started last week.   You’ll see it in full demolition mode.

I hope you’ll be able to join us.  Please RSVP in the Comments section.  And bring all your questions about Energy-Wise Renovation.  Who knows?  Maybe you’ll be the next to jump into the business of Saving The Planet, One (foreclosed) House At A Time