Review of the “3 Packages� Marketing & Business Model The 3 Packages, Wow! Done! & Energy work together and make the GreenEarthEquities Renovation of Foreclosed Homes business model work. No part can be skipped and have the same model or results.
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The Wow! Package 1. Granite Counters at Kitchen & Baths 2. Extra Deep Stainless Steel Sink 3. Designer Spray Faucet 4. Italian glass tile backsplash , s i 5. Under Counter Lighting h T e d 6. All wood Cabinetry u l c n I 7. Crown Molding and Tall Baseboard 8. All new interior doors and trim 9. New Front Door with Art Glass 10. Tile & Travertine floors 11. Engineered Wood Laminate Floors 12. Designer tile and faucets at baths 13. Chair Rail, , Wainscoating & 3 tone paint 14. Designer Light fixtures & ceiling fans 2
The Done! Package 1. New Front and Back Lawn 2. Automatic Sprinklers with timer 3. New 30 - 50 year roof 4. New Roll-up Garage Door with Openers 5. Gutters 6. New 2 inch faux wood blinds , s i h T 7. Major Professional Tree Trimming d n A 8. Sewer line renovated as necessasry 9. All new oil rubbed bronze hardware 10. New Energy Star Appliances with Warrantees 11. New Windows and HVAC with Warrantees 12. Upgraded Carpet with 6 lb pad 13. Deciduous Trees placed for Energy Efficiency 3
The Energy! Package 1. New HVAC system, Stainless Steel Heat Exchanger 2. Manual J sizing, usually half of previous capacity 3. New R-8 short mylar ducts partially buried 4. Manual D with tight seal and test n 5. Extra Return Duct in Master Suite a c e s 6. New LoE2 windows and Patio Doors w i h So all t 7. Low E 140 at west windows e l l e S rytim 8. Deciduous Trees planted selectively e v 9. Shell Sealing of floor & ceiling with test E 10. Attic Insulation to R-50 11. Occupancy sensors 12. Gas Stove and Dryer options 13. Ceiling Fans at all sleeping and living rooms 14. Panasonic Ventilation with controls 4
Insulation & Shell Sealing Last week we looked at the HVAC part of the Energy Package which has the largest Opportunity for improvements. And the largest opportunity for failure if you dont get it right. Today we’ll look at insulation and shell sealing. These must be right or your HVAC improvements wont work! 5
Insulation and Shell Sealing go together! Lack of Shell Sealing is one of the reasons That the insulation rebate programs of the 70’s and 80’s were regarded as a failure And cancelled by some utility companies. They each stop a different kind of heat loss. Insulation stops heat loss by conduction Shell Sealing stops heated or cooled air from leaving thru the cracks in the air barrier. 6
How to Shell Seal? A. Remove the Attic Insulation at the wall plates. Seal with spray foam or caulk: Holes left by electricians Holes left by plumbers Ceiling light fixture boxes Drywall joints All changes in elevation such as lowered hallways, voids, chimneys, and knee walls. A. If the home has a raised wood floor, seal the same things under the floor. A. Dont miss the under-floor biggie: big holes cut in the floor to accommodate tubs and shower drains. Cover with Duct Board and seal in place. 7
Shell Seal # 2 A. Dont forget the basics, like weatherstripping & outlet gaskets. A. Caulking wherever 2 dissimilar materials meet. (Like a brick fireplace always cracks away from the stucco) A. Look for attic stairs and the normal attic access. A. Fireplace dampers should be sealed with an inflatable pillow. A. Cover the whole house fan and cooler vent if applicable. A. Install dampers at vent fans at bathrooms and kitchen. A. Blower Door Test after completion by HVAC sub Should achieve less than 1 CFM 50 per sq ft. 8
Q. What Insulation Material? A. We prefer Cellulose (recycled newsprint) For our application. Treated with Borates for fire retardancy Borates also provide vermin resistance. A. Dont say the word “fireproof” with any product But treated cellulose is the most fire resistant choice. A. Clearly the “greenest” solution
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Q. Batts or Loose Fill? A. Fiberglass batts may be used but must be installed correctly. This is very difficult to accomplish perfectly so we use batts only when absolutely necessary. A. If incorrectly installed, batts can lose up to 80% of the R rating stamped on the product. A. Loose Fill is usually blown thru a hose but can be applied several different ways. Spraying over a NEW IC & AT rated Recessed Can Light. Doing this over An old can light would cause a fire!!! 10
Q. Other ways to use Cellulose Insulation? A. Dry Fill (two hole method) for Wall Insulation. This is for walls that were not originally insulated. Usually done on the outside with patching problems We can do it from inside with easy drywall repair. Wall insulation became standard in the 70’s so always check to see if your walls are insulated. A. Dense Pack method. Similar to Dry Fill but with one hole per bay and a hose reaching to the top and bottom to ensure complete filling of the cavities. (Must be delivered at high pressures, 3.5 psi) This method can be used where batts already exist. 11
Q. Other ways to use Cellulose Insulation #2? A. If drywall is to be removed, Wet Spray method can be used if contractor has the equipment and training. A. Installing behind netting can be done with either Cellulose or Fiberglass loose fill insulation A. Interior walls can also be dense packed to reduce exfiltration by the stack effect in wall cavities. 12
Q. Keep the Wood Stove? A. Unless you are sure that the stove is a high efficiency, clean burning, air tight model, we recommend Removing It. (CraigsList or ReStore) Realtors report that Fireplaces and Stoves have lost their desirability with buyers. Note: There are now very high efficiency closed combustion and condensing gas fireplaces that can replace a pre-fab fireplace. These can provide all the heat needed for the entire house if you find a good way to circulate it.
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Q. More Options for Great Insulation A. Incorporate 1 inch spray polyurethane foam (two pound, closed cell type) on the attic floor. Then add loose fill insulation to provide the rest of the desired R-Factor. Also works on the walls if drywall is removed. Big benefit is the almost 100% shell sealing achieved by this method. (If you use this method, you will definitely need mechanical ventilation, Panasonic ERV etc) 14
More Options to Consider Wrap the outside walls with foam, seal the joints and install new stucco. Previously this was considered too expensive. In the current economy we have seen prices coming down and are now installing a job with this method. Current Price Quote on 1200 sf home, 1 inch foam plus stucco with lace texture = $4,400
Great option for worn out plywood T-1.11 siding Foam provides tremendous shell sealing benefit. 15
Q. How much Insulation? A. If we are adding to the walls, we add as much as we can pack in. This is usually rated at R-13. A. For Attics, we select a number between R-44 and R-55. (About 15 inches) Plus the extra mounding over the ducts. Marketing wise, this puts us ahead of the new construction competition which is R-38
Ceiling Joists are nowhere to be seen. This is why you always do Shell Sealing BEFORE Attic Insulation 16
Avoid These R-Killers! Recessed Lights. Architects love them. May be the biggest drain on energy efficiency in a home. (One home with 43 can lights had a $800 utility bill.) Standard Whole House Fans. In the winter, they lose all the energy saved in the summer because they are usually uninsulated. (use an insulating model if you are going to install a whole house fan) Eave Vents. If possible, eliminate them and vent the attic another way. (gable vents, ridge vents, wind turbines etc) All these R-Killers leave areas un-insulated. 17
More R-Killers The housing stock that we have selected as our target, doesn’t have a lot of these architectural and designer features, but be on the watch for the following: Knee Walls, Whenever there is a change in ceiling elevation. Sloped ceilings, Lowered ceilings etc. Built in shelves and entertainment centers Check at Cabinet Soffits and anything that breaks the plane of the 8 foot ceiling. You should never be able to see drywall from the attic. If you see drywall, that is an area of R-0 and it will show up dramatically in an infrared photo.
Beamed Ceiling
Batt cut short at knee wall
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Our Target House Statistics (Review)
1000 - 1500 square feet, all in the same neighborhood Flat 8 foot ceilings 4x12 pitch roof, worn out comp roofs 3-4 bedroom, 1 3/4 - 2 bathrooms, original Built in 50’s, 60’s, or 70’s Single pane windows Maybe, maybe not, wall insulation R-19 or less attic insulation, patchy and packed down Leaky, wrong sized, ductwork All appliances and equipment worn out Floors, Paint, Doors, all need replaced Ugliest House on the block, Graffiti is fine. 19
Q. Can you see how targeting this way helps us: Save fuel. Save Labor. Gain economies of scale on purchases and labor. Avoid really hard to fix energy hog houses. Easily achieve big energy improvements. Have “Love at first sight� from customers. Get our houses sold before they are done. 20
Q. How to use recessed lighting, (if you must) A. For existing fixtures: Install a retrofit kit. This kit is air tight and will only take a pin type bulb, so homeowner can never put in a 150 watt bulb and burn down their house. Then blow over the fixture with full depth insulation A. If you are, (God forbid) installing a new recessed can light: Make sure it is “IC Rated” and “AT” for Airtight IC can stand for “Insulation Coverable” or “Integrated Circuit” for the internal circuit breaker that will shut the light off if too much heat builds up. Still advise the new owners to not use over 60 watt bulbs 21
Q. What’s an HPD? A. Any Heat Producing Device. Examples are Door Bell Transformers, Recessed Can Lights, Fan Motors, Exhaust Flues, Fireplace chimneys, etc Typically these require a 3 inch clearance all the way around the HPD. That means almost 1 square foot of un insulated space at a recessed light. Note: Your Insulation Contractor should deal with all these issues but you need to know what they are and know that he or she is dealing with them. Especially when you are asking for something out of the ordinary, like closing the eave vents, and blowing over a can light that you have retrofitted for safety.
What’s the R Factor here? 22
Q. What about Fireplaces? A. Check for uninsulated cavities next to the chimney. (both masonry and metal fabricated) A. Preferred Method: Remove It. Pulling it over with a 4 Wheel Drive PickUp Can be a Media Event. Tell them why you are doing it, the energy you will save and the pollution that wont be going in the air. And of course about your company and what you do. Take the Bricks to Habitat for Humanity Re-Store Or sell them on Craigs List Or Use them in Hardscaping. Furniture Arranging will now have more possibilities! 23
Q. What’s the best (free) video training on Building Performance? A. California Energy Commission has short Training Videos on most areas of Building Performance. They are way better than American Idol!
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Navigate to the desired video training.
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Microwave some popcorn & Enjoy Your Video! Probably the best use of your tax dollars you will see this year. They are really pretty good. Consider requiring employees and subcontractors to watch & comment on them. 26
Oh, Honey, I love it! Let’s buy this one....
The Energy Package needs to be right, but remember, This is how your home really get’s sold (usually)
Well, they have those Energy Stars and the carpet is made out of recycled Pepsi bottles so I guess we might as well...
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5 Ton unit
Exact Floor Plan “Reversed”
2 Ton unit
Tale of 2 Foreclosures - True (sad) Story $70,000 $10,000 Renter Zero No Change Zero Lowered Dragged Down Praying for Economy
$70,000 Purchase Price $50,000 Improvements $ Proud New HomeOwner Occupant Everything Energy Retrofit Reduced Carbon Footprint Yes Green Jobs Raised Tax Base Lifted Up Neighborhood Deposit $ & Repeat Investor-Renovator
Which would you rather have next door to you? 28
Message to all Mayors, Governors and Presidents •
Foreclosed homes present a unique golden opportunity to greatly improve the real estate values and the quality of life in your jurisdiction. By including Energy-Wise Renovation with lower carbon footprints, these homes will improve your communities, and the lives of your citizens
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Dont miss this opportunity. If these foreclosed homes are quick flipped with carpet and paint and remain energy guzzling rentals, your community and the planet will suffer. Doing it later will be very expensive and probably just wont happen.
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Ensure that funding for foreclosures programs requires significant home performance. No public funds should go to conventional “house flipping” that does not include home performance retrofitting.
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In many cases this can be done with no expenditure of tax dollars at all. Ask me how. I’ll be glad to share what’s working for me Respectfully, David J Robinson 559 994 9477 DJR5650@Mac.Com 29