Dont Let Things Get:
Out Of Order! (On Your Energy-Wise Renovation)
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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Dont Let Things Get:
Out Of Order! It’s like serving
Dessert before the Salad Actually it’s worse because If you do that in this business, You may never get to the salad, which Is the part that is good for you (good for the project, the buyer, & the planet) 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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Dont Let Things Get:
Out Of Order!
Order is important in All Three Packages of The Three Package System 1. The Energy Package 2. The Wow! Package 3. The Done Package
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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The Energy Package Two reasons some people need to hire a professional at this point. 1. Knowing “What To Do” 2. Knowing “The Order To Do It In” Without training, these are compelling. With this (and other) training and this approach They become irrelevant. (You will know what to do and when) 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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The Energy Package Q. What To Do? A. Everything The reason you dont need an extensive “Energy Audit” with this approach is that you are going to replace “Everything” (within reason) If you are going piecemeal, an Energy Audit with priorities and payback calculation would be a good idea. 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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The Energy Package Q. What Order? A. Do No Harm (to achieving the final goal)
Examples: 1. Dont install attic insulation before shell sealing and attic ductwork replacement and/or sealing. 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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The Energy Package Examples: 2. Dont invest in something that is going to be torn out later in the process. Example: dont seal ducts that really need to be replaced. Dont fix a furnace or AC that should be replaced. 3. Dont invest in a good technology if a better technology can be part of the final plan. 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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The Energy Package This brings up the Supreme Advantage of Energy-Wise Renovation Of Foreclosed Homes. You get to plan for the final result From the beginning with 1. No Homeowner budget concerns. 2. No Homeowner scheduling difficulties. 3. No need for super cleanliness, masking, furniture protection etc. (working “vacant� can save up to 30%) 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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The Huge Difference
Between Energy-Wise Renovation and “Contracting� with Homeowners (who usually want to live in their home and want you and your workers to act like you do too.) 1. Houses are empty = savings $ 2. No Sales & Marketing Expense = savings $ 3. No Auditing and 3rd party expenses (unless you want them) = savings $ 4. Complete Planning from the beginning reduces errors & overlap = savings $ 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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The “Done” Package Once again, because the house is vacant and you have an unlimited budget* You can think clearly about order of install... 1. No need to finish the landscaping until near the end of the project. 2. Painting and Windows. These two trades may provide opportunities for savings. If your window installer is installing a window with a “retrofit flange” or a retrofit window, you may allow the painter to paint over the old windows with no masking = savings $ 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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The “Done� Package 3. Carpet. Of course you want to wait till near the very last thing so the final product will be pristine. 4. Plumbing and Electrical fixtures and appliances should be toward the end. One reason is so they are less exposed to theft. This all becomes easy when you
Know The End From The Beginning! 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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* Unlimited Budget? The only limitation in Energy-Wise Renovation of Foreclosed Homes is The Home Must Sell At The End Of The Project! See previous sessions on the importance of Comparative Market Analysis and a good Realtor who can help you accurately determine your eventual selling price BEFORE YOU BUY IT 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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The Wow! Package Same as the others. 1. Dont install pretty things that will get messed up too early. Remember, your tradesman have given you a discount to not have to clean up and be as careful as if they were in an occupied home. 2. It is your job to order the “competing� trades. For example there may be a tight place that needs an electrical wire, a plumbing pipe and an AC duct run through it. The Pipe is hard to bend. You decide. 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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The End Game Options One way to recover from an OOPS! is to pull something out of the original plan and make it an “option� for the buyer to decide if they want to purchase it now and put it into the long term financing. (Usually a good idea) Examples: 1. A front porch or rear patio. 2. A pool in need of repair. repair or complete replaster or even Pebble Tech? 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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The End Game Options 3. 2 inch faux wood mini blinds 4. The Refrigerator can be installed and financed on the 30 year loan (or not) 5. Carpet Upgrades may be an option 6. Fencing can be repaired or replaced. (remember to ask the neighbor to pay for half. It’s the custom and most will if asked.)
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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The End Game Options The Biggest Options : Photovoltaic Solar Solar Hot Water These two could bring your project to a Zero Energy House. Note: The PV System will be smaller because of all the other building envelope work. 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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How To Finance Big Expenses (that would push the project above the market and above appraisal)
1. 203 K loan allows up to $35,000 of improvements to be done after close of escrow. 2. EEM (Energy Efficient Mortgage) allows energy related improvements to be done after close of escrow and a credit is given in the debt ratio for the fact that the energy savings will allow the buyer to afford a larger mortgage. 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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Financing Flexibility 1. 203 K loans 2. EEM loans 3. Local, State, Federal Incentives 4. $8,000 Tax Credit for First Time Buyers. (you may have to wait till April 15th) You need to have a good Loan Broker and Realtor on your team. Surprisingly some are not familiar with these Financing Flexibility Options 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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Other Ways To Save $ 1. Remember Ask for Wholesale Pricing. This means repeat business for the Vendor 2. Look for deals everywhere. Home Depot and Lowe’s sell mis-ordered or slightly damaged items at deep discounts. Sometimes it is just “opened packaging” ($500.00 doors for $69) ASK You have not if you ask not! 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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Other Ways To Save $ 3. Cut out as many middle-men as you can Find out who they buy from and see if the source will sell to you directly. 4. Consider buying whole rolls of carpet, whole pallets of Travertine or Tile etc. Anything in volume will be cheaper. (this may be more appropriate after you are settled in to your color scheme that works and you are processing a flow of houses. 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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Dont Let Things Get:
Out Of Order! (On Your Energy-Wise Renovation)
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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