Categories
Archives
Home Performance Resources
- Planet Saver University Table of Contents
- Recommended Reading
- California Building Performance Contractors Association
Sign Up to be a Fan!
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.
August 21st, 2009
How To Sell “Green” To People Who Dont Want To Pay For It. (And Have Them Love You For It)
Does it come as a surprise to you that the home buying public is still not ready to open their wallet and pay for Green or Energy Efficiency?
More decisions get made similar to this one than us "Logical" humans want to admit. It's OK... Don't Analyze. Utilize!
Of course this is a generalization but HERE is a recent study that quantifies the public’s interest in Green…
Naturally, in areas of greater affluence and Environmental Awareness there is a higher percentage of people who are willing to pay what it costs for a complete Green and Energy Efficient makeover. My experience in Mid-State California, in a 30 year career selling energy related items was pretty dismal at selling complete packages. I can count on one hand the number of people who said, “OK Dave, let’s do the whole thing, everything you suggested.”
But wait, Hope is not lost! I’ve finally found a way to sell very complete Energy Renovation Packages…. Yes, Every time. You see, as an Energy-Wise Renovating Investor, I have a tremendous advantage in deciding what gets included. I put in everything I want, Everytime. I only have to sell myself, so I have a 100% closing ratio!
So how do I do it since the statistics quoted above and my own experience say that people wont pay for Green or Efficiency?
The “Secret” as far as I’m concerned is to add a nice package of Remodeling and then really complete the job with finishing touches. I call it the Wow! Factor and the Done Factor. It makes a final product that is unique and compelling in the market. That’s why my projects sell quickly, usually before they are done and usually for full price or more.
For more details on The Three Package System of Energy-Wise Renovation and Marketing click HERE.
If you’re interested in helping your community, reducing crime, creating green jobs, making money, having fun, perhaps a new career, reducing energy consumption, and generally saving the planet, one house at a time….. Sign up to receive this blog feed and the Facebook business page at the top right of this page.
You can also join the discussion every Tuesday as we discuss the nuances of ”Energy Wise House Flipping” Click the FREE WEBINAR tab and you’ll be kept updated. PLANETSAVERS UNIVERSITY is where we keep the archives of all those discussions.
August 10th, 2009
Found: New Ally For Vets Concerns: Craig of CraigsList
Market Street in San Francisco
It’s great when you meet people of kindred spirit in places you weren’t expecting. I attended the Inman Connect Conference in San Francisco last week expecting to meet a lot of geeks, programers, and architects of Web 2.0. and the Social Media explosion. Which I did.
But perhaps my most valuable contact was Craig Newmark, founder of CraigsList. I was happy to learn of his concern for Veterans. His reach of course, is greater than this humble blog, but his heart and approach is the same as here at GreenEarthEquities — to give our gifts away for free for good causes. I look forward to contacting him in the next few weeks about some new Vets niche market ideas.
The conference was all about where Real Estate and Technology Connect. With over 100 presenters and almost 2000 attendees, it was a GeekFest for sure. Lot’s of new technology which will be showing up here in weeks to come.
Two Teams of programer-developers actually built full-blown applications in two days of the conference. Coffee and Red Bull was unlimited, as the teams worked around the clock, and the crowd was amazed at the final product delivered on the last day.
Ricardo Bueno is my coach for building this Blog!
There were tons of great Tech Sites presented, but here’s just one to bookmark. (More later.) MyTechOpinion is all about technology for Real Estate Investors, and Realtors. It is run by Nichole and Reggie Nicolay, a husband and wife team and has lot’s of great content. One resource to check out is the “Tweet Plan 2.0″ where Nichole likens sending out regular bits of information to your network to Drip Irrigation. Here’s the HomePage: http://www.mytechopinion.com/
Inman Connect is the twice a year conference and Inman News is the daily e-news which is all about Real Estate and Technology. Like most e Journalism these days, the entry level subscription is free. I think the premium service is worth the cost for serious investors.
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
July 15th, 2009
3332 N Ezie, Fresno, CA 93727
Granite, Travertine, Stainless Steel and Real Wood enhance the kitchen's perfect work triangle.
This beautiful 4 bedroom, 2 Bath home in the Clovis School District has been completely renovated with a focus on LOW UTILITY BILLS! The WOW! Package and the Move-in Ready DONE Package make this home stand out above the competition!
The “Energy Package” includes a new Trane Air Conditioner with all new engineered ductwork and register, (R-8) tightly sealed and covered with more insulation (R-50+) over a tight shell seal of the attic floor. Low E2 Dual Pane windows are throughout, even at the garden window at the kitchen sink. Long overhangs on the Western Exposure along with deciduous trees reduce the cooling load.
Crown Molding, Custom Fireplace and Ceiling Fans
Ceiling Fans are everywhere along with Energy Saving Motion Sensors and Photo Sensor Controls. Energy Efficient Lighting and Energy Star Appliances along with Gas Lines for the Stove and the Dryer complete the Energy Package.
Imported glass accent tiles with built in shampoo space are one of many "little extras."
The “Wow!” Package includes new cabinets and granite counters throughout, a deep stainless sink with tall GooseNeck faucet with sprayer, Stainless Energy Star Appliances, energy efficient designer light fixtures, travertine floors, glass tile backsplash, custom tile artistry at both bathrooms, upgraded fixtures throughout, oil rubbed bronze hardware on new colonial doors, taller baseboards, chair rail and crown molding, two and three tone paint, as well as upgraded 32 oz Smart Fiber carpet over heavy 6 lb pad.
Glass Bowl and Euro Styled faucet at the master bath
The “Done” Package means you wont have a lot of projects to finish when you move in. New Lawn has been planted front and back along with complete sprinklers and automatic controllers. The new front door has a leaded glass panel and a new entry handle and dead bolts. There is a brand new roll up garage door and a new opener with controllers. All switches, plugs and receptacles have been replaced along with a new 200 amp service.
Custom stucco trim at windows, doors and corners accents the new dash and the 30 year roof.
The roof is 30 year rated and the water heater has been re-located outside the building to gain usable space and add a safety factor. The windows, doors and building corners had a designer trim installed before the entire home was dash coated for a brand new look.
Ducks make some of the best neighbors!
With everything renovated, you’ll have no maintenance worries for a LOOONNG Time! You’ll also have no back yard neighbors except the Canadian Geese and Mallard Ducks that live in a year round ponding basin that provides the “waterfront view.”
For a Printable Brochure click here 3332 N Ezie
July 6th, 2009
Will Your Buyers Consider More Efficient (Green) Mini Split Air Conditioning?
Mini Split Air Conditioning Systems are typical in all the rest of the world besides the United States. Here’s a Fact and a Question that may be more timely in this economy…
Indoor and Outdoor Units are connected with refrigerant lines only. No Ducts means no Duct Loss.
Fact: Mini Split Systems can be 25 to 50% more energy efficient than conventional forced air systems. This is because of two factors, 1. Inverter Technology which allows higher SEER ratings (Seasonal Energy Efficiency Rating) of up to 21 SEER. 2. Zero energy loss thru duct leakage and duct heat transfer. That’s because there are no ducts in these systems.
Question: Why have American Consumers and HVAC Contractors almost totally rejected the more efficient Mini Split systems? I can think of several answers.
1. Americans don’t know that more efficient systems are available. Their Contractors haven’t told them.
2. We buy into the idea that we must have forced air to every room.
3. The “We’ve always done it that way” syndrome.
But the current economic times and increased awareness of Green and Energy Efficiency issues may make Mini Split Air Conditioning an “Idea Who’s Time Has Come.” With Utility Bills going nowhere but up and with less cash available to just send off to the Utility Company every month, it may be time to take another look at the Mini Split option.
Since I am just now specifying my first Mini Split System for one of my EnergyWise Renovation investment project homes, I’ll share some of the things I’ve found about these systems.
1. It will save quite a bit on Utility Bills. Exactly how much is still to be seen.
2. The initial cost on this particular home is about $1,000 less than a new forced air system.
3. Back bedrooms will be served by small forced air ducts from the Fujitsu “Concealed Unit.” These ducts will be in a lowered hallway cavity so they will be inside the “building envelope” retaining the zero duct loss benefit of the Mini Split system.
4. These systems are available as heat pumps, so they will take care of heating as well as cooling.
This type of system with the small duct system, works well on a full gut remodel, which is what I specialize in. I’ll post photos and results in this blog as the project progresses. If you have any experience in using Mini Splits for whole house air conditioning, please share in the comments. The more that ideas like this are accepted, the less foreign oil we will need to buy. So next time it’s time to upgrade your HVAC system, there really is something you can do to “Save The Planet, One House At A Time.”
June 30th, 2009
5741 E Bernadine, Fresno, CA 93727
Printable Flyer for 5741 Bernadine
June 18th, 2009
Who knew? We treat our Vets so badly?
Two weeks ago I had no clue that Veterans have such a difficult time using that supposed benefit, the VA Loan. But in the last two weeks, I’ve got an education. I’ve sold one of my Energy-Wise Renovations to a Veteran. We’ve been working with his wife all along during renovation on design and color selection etc. Now it seems that the family is not going to qualify and I’ve found out that both the credit and appraisal process for Vets is more difficult than either conventional or FHA financing. When I started asking my Realtor friends about this, they all said, “Yes, VA has always been difficult. We shudder when a buyer wants to go VA. We’ll probably spend a lot of time and then the Vet will be disqualified or the house wont appraise and we’ll have to start all over.”
It seems that my GreenEarthEquities projects will never qualify and meet the VA appraisal. With the Wow! Package, the Done! Package and the Energy Package, these homes have all new everything and need to be priced at the top of the Comparables. They are not for everyone. Some people want a fixer upper. I want to provide a nice, finished home, with everything new that wont have maintenance issues for a long time for a returning Vet. My Realtor friends say it isn’t going to happen, not with a VA Loan anyway.
That made me mad to hear that. I’m a Vet. And I enjoyed my Cal-Vet benefit purchasing my first home many years ago. I dont remember any difficulties. I think a lot of Americans agree with me that our Veterans should get preferential treatment…..And it seems that they are actually getting discriminatory treatment. I have three questions which I will be getting the answers for over the next few months
1. Is this poor treatment of our Vets system wide, or is our local situation in Central California an anomaly. (4 out of 5 Realtors I asked rolled their eyes when I asked about VA financing and confirmed the situation described by the first friend that I asked.) How about other areas of the country? Are they more Vet friendly?
2. What can be done to improve the situation for Veterans? Who are the Advocates that work to improve things for our Veterans?
3. Is the Congress and the Obama Administration aware that the VA is treating our Veterans so poorly? And that the VA program has such a bad reputation in the Real Estate Community? Will any politician stand up and be a champion for Vets? It seems that the VA is a bureaucracy that could benefit from some red tape slashing and streamlining……. (that should be politically popular these days)
Please respond if you have any good ideas or contacts. Hopefully together we can turn the VA Loan back into a blessing instead of a curse that it has become.
April 29th, 2009
GreenEarthEquity presents Unique Business model at Kansas City Convention
The last few days I’ve been presenting my poster at the Kansas City annual conference held by the Affordable Comfort Institute. Most of the attendees direct
Energy Programs for various states and Cities around the country. So they were coming from a different perspective. Most were amazed that GreenEarthEquities is able to sell the homes we do in the current real estate market. About 20 people got excited and could see themselves doing Energy-Wise Renovation of Foreclosed Homes in their own cities. That’s great news and a good beginning toward the 1000 businesses that I would like to see started before these wonderful foreclosures are all gone. They will be joining us on the Tuesday Evening conference call.
Of course being program managers, politicians and public funded scientists and coming from that context, some will try to build a program around forecloses homes. I’m OK with that and will help them all I can. My only demand is that whatever program gets developed needs to require energy retrofitting if it is to receive public funding. That is in the open letter to all Mayors, Governors, and Presidents at the end of my poster. At this conference I was “preaching to the choir.” Everyone was in agreement that no tax dollars should be spent on “whitewash” or carpet and paint type of rehabs. The reason that these type of flips are really bad for a community will be the subject of another post.
The poster is just 12 Keynote Slides that does a pretty good job of explaining our business model. The letter to Mayors etc is slide #12 at the end. I’ll email the whole poster to anyone who leaves an email in the comments. If you agree with my conclusions, I’d be happy if you’d pass it on to your own mayors or other government officials. Several asked if they could use it in their own groups. Yes, of course.
Presenting the poster clarified my thinking and convinced me more fully that the Energy-Wise Renovation of Foreclosed Homes is absolutely the “Lowest Hanging Fruit” for energy saving in our residential housing stock that is available. Everything else would cost more and produce less savings and do less to improve our communities and our planet.
Another clarity is that Opportunities Pass. This golden opportunity with the current crop of foreclosures wont last forever. And the opportunity to do really good work and really be a blessing in our communities will be gone soon enough. Each time a foreclosure goes to a “carpet and paint” house flipper and turns into a rental, opportunities for the community and the planet are lost.
So the urgency of finding and helping the first 1000 businesses doing Energy Wise Renovation across our country has ratcheted up for me. Several folks are doing media and setting up teaching opportunities to get the message out. I appreciate them immensely as this project is way too big for me alone. All help is appreciated and all are welcome on the Free Conference Calls on Tuesday evenings at 6pm Pacific time. To receive the notes of the teaching ahead of the call email me of your interest and I will email you the slides along with the call in number and access number.
- Explaining the Poster to Energy Program Directors
April 13th, 2009
Thousand Home Challenge!
The Affordable Comfort Institute* is sponsoring the “Thousand Home Challenge.” The challenge will be a demonstration project to showcase the fact that we really can do Energy Wise Renovation and cut current energy use by 70 to 90%. The savings will be documented and the project will be used to craft “What’s Next?” in energy codes and policies.
The idea of building a home so efficient that it uses 90% less energy is hard to believe for most Americans. But the “Passiv Haus” standard has been developed in Germany with 10% energy usage as it’s central concept. Interestingly enough, the Germans were inspired by the American Solar industry in the 1970’s. Scrambling to catch up, they soon equalled our Solar technology and then surpassed America by several orders of magnitude. The American Solar Boom of the 70’s had been built on tax credits and when the credits went away, so did our Solar industry. Most Americans determined that Solar and other technologies just weren’t cost effective especially in the retrofit market of existing housing.
It’s true, retrofit work is more difficult and more expensive. In new homes it is just a matter of changing the codes and then enforcing them and we’ve done a fair job of that over the decades since the first oil embargo. The retrofit market is much more complicated. Because of the huge variety of construction methods and varying degrees of quality, a building performance contractor must do a thorough examination on the “patient” house, and just like a doctor, only then can they diagnose and prescribe the best solution to the ills of that particular house. It’s true, prescription without diagnosis is malpractice!
A “one size fits all” and piecemeal approach rarely delivers the results promised by the salesperson or the slick marketing brochure. Perhaps you’ve experience that? To get real energy reduction, a whole house approach with individual diagnostics with special instruments must be employed. This is much more difficult and only recently has the building performance contracting industry stepped up to take on the challenge.
California has been a leader in developing this new industry and has been the first state to step up to the Thousand Home Challenge which has been thrown out by Affordable Comfort. Today I met with about 75 policy makers, scientists, engineers and other stakeholders in San Fransisco as the “NorCal Collaborative “to organize the effort of getting the first 40 homes on the street that operate comfortably after a 70 to 90 % reduction in energy consumption. If you’d like your home to be one of them, drop me an email.
*Affordable Comfort Institute is the national organization that is dedicated to bringing energy efficiency and building performance to EXISTING homes. Several organizations lobby for and support building performance in new homes, but Affordable Comfort has been a clear voice for energy efficiency in existing homes for the last two decades. I will be presenting a poster session at their annual convention in Kansas City on April 27th -30th. It will be on my own demonstration project which is the Energy Wise Renovation of foreclosed homes discussed in this blog. Stop by if you are in the neighborhood. Seriously, attendance at the Affordable Comfort Conference is the best introduction to the Building Performance Industry you can get. The website is AffordableComfort.org
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
