A Better Way To Live? A Better Way To Make A Living? In the recent recession, Many have Downsized, Laid off staff, Been Laid Off, Tightened Their Belt, Just Waiting For Things To Get Better, Waiting For Government Money To Show Up Waiting For Contracts, Waiting, Waiting, Waiting, Is There A Better Way To Live? A Better Business Model? 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 1
An Idea Who’s Time Has Come Several Years Ago The Concept Of doing complete energy renovation along with a fine remodeling package wasn’t such a Good Idea. Real Estate Cost Too Much, Interest was too high, Contractors Charged Too Much. You just couldn’t make money doing that But Things Have Changed. Consider What’s Changed:
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 2
An Idea Who’s Time Has Come Since 2006 1. Interest has gone down 2. Mortgage payments are down 3. Rents have stayed high 4. Labor is hungry 5. Subcontractors are working for less 6. Foreclosed homes cost 30 - 40% Of 2006 prices. 7. Green has gained more traction 8. The Administration wants homeowning taxpayers 9. Well done Renovations are rare and sell easily. Is This A PERFECT STORM? 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 3
Testimony The Classic 3 Point Formula For A Testimony As Used By The Apostle Paul In Acts 26 of the New Testament And Lawyers, Salespeople and other Evangelists Ever Since 1. How It Used To Be 2. Then Something Changed 3. How It Is Now
Library In Ephesus Where Paul Used This 1-2-3 Formula
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 4
Testimony part 1. How It Used To Be For 30 years I was a General Contractor, along with my wife, as well as subcontracting in most of the energy related trades, Insulation, HVAC, Windows, & Roofing. We were flexible and diversified and started “Home Performance” with our first blower door in the early 90’s. It was a hard way to make a living and not that satisfying because we rarely got to do “Great Home Performance” because of customer budgets, my less than stellar sales ability, and the public wasn’t yet ready to embrace Home Performance and Green. It was hard work but we went on a lot of vendor trips and we were blessed and never (quite) declared bankruptcy in the 4 recessions like many of our friends in the business had to.... 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 5
Part 2: Then Things Changed About 2 years ago we realized that we had a great manager who could run the Utility Company Program better than I could. (Sometimes, 2 male egos are not needed in the same space.) So Luelle and I both “retired” a couple of years ago. She pursued her life-long love of travel and has started a top selling Travel Agency. I tried a few ideas and then one day woke up and realized the Perfect Storm and Golden Opportunity that was in front of me. I became an Energy Wise House Flipper. To say I’m loving it would be an understatement. 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 6
Part 3:
How It Is Now
Being an Energy Wise Renovator of Foreclosed Homes has these advantages: 1. Job Satisfaction. I love being able to Do The Right Thing, the Complete Home Performance Package, every time. So Different from selling to customers’ over stretched budgets 2. I get to be Creative & Invent New Applications. I’ve been going crazy with Ducted Mini Split Heat Pumps. Sign up for the feedburner on this site for the next updates.
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 7
Part 3b:
How It Is Now
3. Keeping Priorities Straight. Energy Wise House Flipping is a great Part Time Job (if that’s what you want, or if you want to keep your day job) Hey, I’m retired. So Grandbabies and protecting my Travel Agent wife from pirates on the high seas are priorities! 4. Doing The Right Thing for the New Homeowner, The Community, The Nation and The Planet Feels So Right. The homebuyers love their new homes. What’s to not love? We know HP delivers lower bills and more comfort.
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 8
Part 3c:
How It Is Now
5. Making Money. To surpass my previous salary in the first year is not bad at all. A person who really wanted to run with this opportunity could do very well indeed. I’m happy to work a little bit, make a little bit, support my favorite charities, and help build the Army of Energy Wise House Flippers. 6. Sharing The Good News: Energy Wise Renovation of Foreclosed Homes has been such a blessing to me, I feel it’s my duty and privilege to share with as many as possible. Let’s Build An Army! We could really reduce our dependence on Foreign Oil. 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 9
Why Not? I cant think of any good reasons to not do this, but as you can tell, I’m kind of biased. Reasons I’ve heard are: 1. “I dont have the money.” A. Buy the book, Are You Dumb Enough To Be Rich. (The new “Book Store” tab on the website takes you right to the Amazon page. Get it new or used.) Read the section on using Private Money. Also see the previous presentation on this site: Where Do I Find The Money? & Basic Negotiations (search box or Table of Contens) 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 10
Why Not? 2. “It wont work in my area.” A. That’s probably true if you count only the few blocks around where you live. But almost every neighborhood in California has better demographic areas within a short distance. Beverly Hills is only 15 miles from Panorama City. (where the starving actors live) 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 11
Why Not Now? There may be a good reason to procrastinate, but I haven’t figured out what it would be. Reasons I’ve heard are 1. I’m waiting for the economy to hit bottom. A. Not a good idea, even when it was on its way down. (if you follow the advice on this site, especially “in and out quickly”
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 12
Why Not Now? 2. “I dont know enough.” A. That’s why I recommend starting out with massive amounts of education: Check out this site. Over 500 pages, all on this subject. And the Book Store and Bibliography. Spend a couple hundred bucks. I love Amazon One-Click The books just show up on my front door. What a Country! What a Century! Also: Dont quit your day job if you have one. This works well part 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 13
Why Not Now?
3. “No more Inventory. No more good deals.”
A. It’s True there is less inventory if you only count the cookies on the lowest shelf. (Buying REO properties from the MLS) Now we must work for our good deals and for those willing to work, there are more good deals than ever. It’s time to master the art of the Short Sale and the art of the Court House Steps. Here’s Vallejo For example. Stay tuned. We’ll learn togethr 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 14
Multiple Streams Of Income I am not suggesting that people torch their day job and burn their bridges to start a new life ONLY working on their own projects. (I still have the residue of a day job or two) But dont miss the beauty of Multiple Streams of Income. When one dries up, another will keep you supplied.
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 15
Enjoy The Freedom The Business Model recommended on this site allows a lot of freedom. (Subcontract almost everything. Have one generalist GC or project manager to manage all the subs and the work flow. You find and spec the next deal) Examples: Tonight I am in Key West I have purchased and sold properties from Europe and cruise ships That takes a real good team See previous slides in Planetsavers University 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 16
Deliver More For Less? Delivering More For Less: It sounds like a violation of the Second Law of Thermodynamics Or a Crazy Sales Pitch Actually It’s neither It’s just about all the things you Dont Have To Do when you work on Foreclosed Homes (That are Empty and You Own) See The Comparison on the next slide. Compare the percentages to your current business model 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 17
Cost & Benefit Analysis Conventioal Contracting To Residential Customer Marketing To Acquire Customer
25%
10,000
Sales Commission
10%
4,000
Premium for Occupied Working
10%
4,000
Overhead & Profit
30%
12,000
Contracted Work
10,000
Total Contract
40,000
Why would you want to do this?
40,000
Energy-Wise Renovation of Foreclosure by Investor Marketing To Acquire Customer
2%
800
Sales Commission (pro-rata)
10%
4,000
0
0
30%
12,000
Premium for Occupied Working Overhead & Profit Contracted Work Total Contract
23,200 40,000
40,000
G r e e n E a r t h E q u i t i e s . C o m
When You Could Do This? Saving The Planet One House At A Time 18
What’s Missing? These Parts of “NORMAL” Contracting are missing from Energy Wise House Flipping Big Overhead including: Marketing, up to 25% Sales Commissions 10%+ Working in customer’s homes Working with “Programs” Computer Modeling or Ratings* Partial Home Performance Projects* Problem Homeowner Headaches* Lawsuits* Labor Board Complaints* *How Can This Be? >>> 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 19
*
The Rest Of The Story
No Programs, Incentives, Rebates or Tax Credits Required. Computer Modeling & Ratings are unnecessary - get in the way. No Partial Jobs. All Projects are as complete as I want them to be. No Problem Homeowners because the homes are always empty. No legal problems because no “new home” promises are made No Labor problems because there is no “labor” in this method. (Labor works for the Subcontractor) 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 20
Some Choose To Be Different If you choose to become an Energy Wise Renovating, House Flipping Investor who works on your own properties and does the right thing because its the right thing to do...... You will be one of a very small Army. (the regular House Flipping Army is much larger) These concepts have not been tried and found lacking. They have mainly just not been tried I have tried them and they have proven to be Ideas Who’s Time Has Come 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 21
For Years There’s Been One Way: Maybe It’s Time For a New Way? Think about it. 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 22