a better way to live?
DESCRIPTION
Explores the benefits of performing Energy Wise Upgrades on your own investment homes compared to contracting for others.TRANSCRIPT
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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 UpWaiting For Contracts,
Waiting, Waiting, Waiting,
Is There A Better Way To Live?
A Better Business Model?
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
An Idea Who’s Time Has ComeSeveral 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:
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
An Idea Who’s Time Has ComeSince 2006
1. Interest has gone down2. Mortgage payments are down
3. Rents have stayed high4. Labor is hungry
5. Subcontractors are working for less6. 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?
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Testimony
The Classic 3 Point Formula For A Testimony
As Used By The Apostle PaulIn 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 NowLibrary In Ephesus Where Paul
Used This 1-2-3 Formula
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Testimony part 1. How It Used To BeFor 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....
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Part 2: Then Things ChangedAbout 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.
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Part 3: How It Is NowBeing 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.
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Part 3b: How It Is Now3. 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.
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Part 3c: How It Is Now5. 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.
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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)
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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)
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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”
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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 VallejoFor example. Stay tuned. We’ll
learn togethr
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Multiple Streams Of IncomeI 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.
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Enjoy The FreedomThe 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 teamSee previous slides in
Planetsavers University
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m
Why would you want to do this?
Cost & Benefit AnalysisMarketing 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 40,000
Marketing To Acquire Customer 2% 800
Sales Commission (pro-rata) 10% 4,000
Premium for Occupied Working 0 0
Overhead & Profit 30% 12,000
Contracted Work 23,200
Total Contract 40,000 40,000
Conventioal Contracting To Residential Customer
Energy-Wise Renovation of Foreclosure by Investor
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 40,000
When You Could
Do This?
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
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? >>>
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
* 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)
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
Some Choose To Be DifferentIf 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
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SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2009
For Years There’s Been
One Way:
Maybe It’s Time For a New Way?
Think about it.
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