100518 Picking Your Team

Picking Your Team PlanetSaving as an Energy Wise House Flipping Investor is not an Individual Sport!

It Takes A Team Unless you want to limit yourself to always staying small & working on the jobs.

In that case you are just buying yourself a job.

That’s not totally a bad thing Just know it going in.

G r e e n E a r t h E q u i t i e s . C o m

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Saving The Planet One House At A Time

Pro’s & Con’s Of Staying Small Pro’s 1. No boss, or partner to have communication problems with 2. Less stress (maybe) 3. Can start on a shoestring.

Con’s 1. You always have to work if things are to get done.

Great if you love it.

Wonderful benefit of either style of investing: You can experiment in your own laboratory!

G r e e n E a r t h E q u i t i e s . C o m

© 2010

Saving The Planet One House At A Time

The Team Players 1. Spouse or S.O. (Forget this one at your peril) 2. Realtor to purchase 3. Realtor to sell 4. General Contractor or 5. Project Manager 6. Lender or 7. Money Partner 8. Loan Broker 9. Energy Related Subs 10. Wow! & Done Subs 11. Due Diligence Team 12. Insurance Broker 13. Escrow Officer G r e e n E a r t h E q u i t i e s . C o m

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Saving The Planet One House At A Time

Spouse or SO Contracting is a hard way to make a living. I have often said the reason for our survival for 3 decades was two people working our tails off. Most of my friends who started in the 70’s with us didn’t make it with the business and marriage both intact unless both were working in the business.

Investing is easier than contracting in my opinion. This is why I recommend Multiple Streams of Income to my Contractor Friends.

(It was a Safety Award. No one shot themselves with a nail gun or fell off a roof! Typical Saving The Planet worries of Contractors) One House

G r e e n E a r t h E q u i t i e s . C o m

© 2010

At A Time

Realtor (For Purchase) The Right Realtor provides a valuable service.

1. Helping you determine the ARV - After Repair Value. This is essential so you will know what to offer.

2. One main tool a Realtor can provide is the CMA Comparative Market Analysis.

3. Banks list 95% of the foreclosures with Realtors.

G r e e n E a r t h E q u i t i e s . C o m

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Saving The Planet One House At A Time

Interview Questions: 1. Do you own investment properties yourself?

2. How do you feel about submitting an offer at 55% of the asking price?

3. How about submitting 20 offers before we get one?

4. Are you digital? Can I sign everything digitally?

5. Eco Broker? Or at least Green Friendly.

Life’s too short to have to fight your team mates G r e e n E a r t h E q u i t i e s . C o m

Š 2010

Saving The Planet One House At A Time

Realtor To Sell If you choose to sell with a Realtor, you will want one who will do aggressive open houses and is well positioned as a selling realtor.

This MAY be the one who you buy thru.

You may also decide to sell the property yourself. This has advantages and disadvantages. (discussion) G r e e n E a r t h E q u i t i e s . C o m

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Saving The Planet One House At A Time

General Contractor The General Contractor schedules the other contractors, orders all the materials and does some of the work (more or less) It is important that he have a Green Heart or at least understand and respect yours.

Once again no need to have your team dragging you down.

G r e e n E a r t h E q u i t i e s . C o m

Š 2010

Saving The Planet One House At A Time

Interview Questions: 1. Confirm all licenses, liability and Workers Comp insurance.

2. List of references ... And really call them.

3. CSLB check 4. Also check BBB 5. Ask about a difficult client and how they handled it.

6. They (along with all subs) accept your contract and your payment schedule 7. Do they love Green and EE or are you just a job to them?

G r e e n E a r t h E q u i t i e s . C o m

Š 2010

Saving The Planet One House At A Time

Project Manager Does the job of the General Contractor.

One way to do this legally is to share ownership of the property. The partnership operates as “Owner Builder” If compensation is on a percentage profit split, motivation stays strong.

G r e e n E a r t h E q u i t i e s . C o m

© 2010

Saving The Planet One House At A Time

Lender The lender who finances your acquisition and renovation.

My preference is a line of credit from a small bank (Less paperwork, 6.5%) Also Wells Fargo Mortgage (not bank) has an 80% of ARV program which should finance all of your costs. They require appraisal and approval of your plans and inspections to pay the draws G r e e n E a r t h E q u i t i e s . C o m

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Saving The Planet One House At A Time

Money Partner The best money partner is one who shares your Green Heart.

Any money partner will be better than “hard money” You can pay them 1. A guaranteed interest rate Paid monthly or at the end of the project, their preference 2. A profit split paid at the end G r e e n E a r t h E q u i t i e s . C o m

© 2010

Saving The Planet One House At A Time

Loan Broker Here you are looking for flexibility. For example most lenders can only accept FICO scores down to 620. But there are programs out there that will go to 580. That opens up more possibilities.

Another example is assisting with owner financing such as lease options with refinance.

G r e e n E a r t h E q u i t i e s . C o m

Š 2010

Saving The Planet One House At A Time

Energy Contractors This is mainly the HVAC Contractor. He should be CBPCA trained and BPI certified AND accredited. Green Point Rating is also valuable. Also the Window and Insulation contractors need Home Performance Training. One of these needs to do the shell seal and Blower Door Testing. You are not looking for the cheapest in these trades. You want the best and it costs a little more....

G r e e n E a r t h E q u i t i e s . C o m

Š 2010

Saving The Planet One House At A Time

Wow! & Done Contractors You can negotiate more aggressively with these contractors. You still want good work but it isn’t as important as the Energy Team.

You do want “Wholesale Pricing” but most important here is their ability to respond timely and work with the rest of the team.

G r e e n E a r t h E q u i t i e s . C o m

© 2010

Saving The Planet One House At A Time

Due Diligence Team Termite Inspector Roof Inspector - Roofer Sewer Inspector- Plumber Electrician Home Inspector General Contractor My Home Inspector was formerly a Building Inspector and knows the codes very well.

It’s good to have an “open house” with all of these at the same time. (Realtor has to give access) G r e e n E a r t h E q u i t i e s . C o m

© 2010

Saving The Planet One House At A Time

Insurance Broker Set up with the Insurance Broker so that it is only a phone call to insure a new project. Typically I buy a year’s policy. Then I receive a refund upon sale.

It’s good to get an Umbrella Policy by the time you are into your third project.

G r e e n E a r t h E q u i t i e s . C o m

© 2010

Saving The Planet One House At A Time

Escrow Officer The Seller usually chooses, so on all your purchases you will be getting to know different escrow officers and companies.

For your sales, you get to choose.

I like to stay with one who learns how I work. (and helps me stay on track) This is especially important if you start selling your own projects with Lease Options & Refinancing etc.

G r e e n E a r t h E q u i t i e s . C o m

Š 2010

Saving The Planet One House At A Time

With The Right Team Planet Saving Can Be A Lot Of Fun See the guy in the back with the oars?

If the team doesn’t work together You’re going to get wet!

That’s You!

G r e e n E a r t h E q u i t i e s . C o m

© 2010

Saving The Planet One House At A Time

Final Thoughts: Importance Of A Green Heart Life is too short to have to fight your own team members. There is enough of a fight with the culture, the economy & the bureaucrats.

Look for team members with: 1. A Green Heart that finds joy in the challenge of Planet Saving 2. Good business sense, ability to play on a team, and integrity.

See 100216 Naked Capitalism With A Green Heart (code means the presentation of Feb 16, 2010) G r e e n E a r t h E q u i t i e s . C o m

Š 2010

Saving The Planet One House At A Time