2 Ways To Double The Cost Of Your Project!
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
But Wait! Why Would I Want To Do Something Like That? Maybe to stimulate the economy? Maybe because you hadn’t run the numbers? Maybe because “we’ve always done it that way” Whatever the reason Thousands of jobs cost double what they could be produced for if they were approached differently Curious? G r e e n E a r t h E q u i t i e s . C o m
© 2009
Saving The Planet One House At A Time
#1. Participate In A Federally Funded Program Recently I asked two contractors who participate in Federally Funded Renovation Programs, What are your costs if you did the same job inside and then outside of the program? One said, $70,000 in the program $30,000 without the program The other said $40,000 with it & $20,000 without the program
Not a big study, but these are real contractors! G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
#2 Contract With A Customer 90% of Construction Work is done by contracting with customers. The Model generally includes: 1. 15-25% Marketing Costs 2. 10% Sales Commission 3. 10% Extra Work Around Customer, (masking, booties etc) 4. 10% Extra Paperwork and Administration to deal with Customer and programs, rebates, warrantees etc. IE 50% of the $ spent is not getting work done but just getting ready and supporting getting the work done.
Work Goes A Little Slower Working In Mrs Jones’s House
G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
You Can See Why ConsumersThink Renovation Is Expensive And Have Stopped Spending In Response, some Contractors have: 1. Laid off non essential staff 2. Laid off essential staff. 3. Closed Offices 4. Sold Equipment & Vehicles 5. Lost Credit Ratings 6. Filed Bankruptcy 7. Multiplied their stress 8. Strained their marriages 9. Left the industry
At Least They Have A DropCloth!
G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
Those Aren’t The Only Solutions The Concept of Multiple Streams of Income Has become popular and essential in recent years because of the the instability of things we formerly believed to be stable. Contractors can have multiple streams too.... G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
st 21
Multiple Streams In The Century Could Include: Start an eBay business Write A Book, Write an eBook Build a Multi Level Business Be a Consultant - Speaker - Expert Sell from you Website Pursue Your Passion For Profit Stock Market (a little scary?) License Your Intellectual Property Real Estate, Rentals, Flips, etc Be a Travel Agent (Luelle’s choice) G r e e n E a r t h E q u i t i e s . C o m
All these are possibilities and have value. This presentation is about adding at least this one to a contracting stream
Š 2009
Saving The Planet One House At A Time
OK, I’m Convinced. So How Do I Get Started?
Top 10 Action
Points 1. Knowledge Is Power Educate Yourself. Bibliography: a. Flip by Davis & Volani b. Real Estate & Investing Seminars & Books. (very expensive ones are available cheap on eBay) G r e e n E a r t h E q u i t i e s . C o m
© 2009
Saving The Planet One House At A Time
Getting Started #2 2. Home Performance Classes @ PG&E (free) 3. GreenEarthEquities.com (over 500 pages of content on the blend of Real Estate, Remodeling & Home Performance) (free) 4. Subscribe to Home Energy Magazine, CPBCA & Build It Green Newsletters etc. G r e e n E a r t h E q u i t i e s . C o m
Click Here & Read The BlogPosts
Š 2009
Saving The Planet One House At A Time
Getting Started #3 5. Learn the Internet Tools, Google Earth, Bing, Cyberhomes, Localetrends, ForeclosureRadar, etc see next week’s slides for a more complete list. 6. Start Building Your Team a. Find The Right Realtor. (this may take several attempts. See Planetsavers University for tips on interviewing & other team members) 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
Getting Started #4 7. Sign up with your Realtor to receive automatic filtered listings in your email. (some MLS systems call it a “portal”) 8. Learn To Use The Comparative Market Analysis (CMA) 9. Pick your neighborhoods and become an expert on real estate there. Track listing and sales prices. Visit Open Houses G r e e n E a r t h E q u i t i e s . C o m
© 2009
Saving The Planet One House At A Time
Getting Started #5 10. Begin lining up you finances so you will be ready to make a Cash offer. This may mean a Small Local Bank line of credit (my choice) or a Private Investor or a Hard Money Lender. Wells Fargo Mortgage (not bank) has a “Renovation Loan that may be worth considering. G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
Paper Trading Before Using Live Ammunition Did you notice that most of the Top 10 Getting Started List was free or only a few dollars for a book or subscription? You can go a long ways toward ensuring your success BEFORE you buy your first house Education is costly, but mainly in time. G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
“Paper Trade” Before Using Live Ammunition Did you notice that most of the Top 10 Getting Started List was free or only a few dollars for a book or subscription? You can go a long ways toward ensuring your success BEFORE you buy your first house Education is costly, but mainly in time. G r e e n E a r t h E q u i t i e s . C o m
© 2009
Saving The Planet One House At A Time