More Doctors Smoke Camels More Than Any Other Cigarette-I Wonder What They Would Think About Green Homes

It wasn’t that long ago, just 50-60 years or so, that there were doctors on television promoting cigarette smoking. The video below is a t.v. commercial that ran in 1949. The spokesperson boldly states that “doctors in all branches of medicine and doctors from all parts of the country prefer Camel…”

An online resource of tobacco facts states:

“About 10 million people in the United States have died from causes attributed to smoking since the first Surgeon General's report on smoking and health in 1964--2 million of these deaths were the result of lung cancer alone.”

Yet, there are millions of people that continue to smoke.

Is it any wonder then that whenever we discover something new or better many of us search for reasons to hold on to the old. We enjoy our way of life and we resist change even when we know it may harm us or cost us in some way.

Now fast-forward to 2009 and consider the features and benefits of green homes. We now know that there are countless harmful toxins and pollutants in many of the materials used to build our homes. We also know that the air inside the average home is more polluted than the air outside.

According to the USGBC, homes and buildings consume approximately 72% of all electricity, 40% of primary energy use and produce 39% of all carbon emissions in the U.S.

Green homes and buildings significantly reduce energy use (25% - 50%), reduce carbon emissions (33% - 39%), use less water (40%) and produce less solid waste (70%) than non green homes.

In sum, we know green homes are healthier, more comfortable and cost less to operate! So what’s up? What is the delay? Why are we not demanding more green homes?

Personally, I think the answers are hidden in the habitual nature of our conditioned patterns of behavior. It took many years for collective public awareness about cigarettes to take hold. It may take us a while to catch on to the issues around green homes.

I know we’ll get there eventually--better sooner than later as far as I am concerned.

I can't help but wonder what future generations will think when they look back at us on the future equivalent of YouTube?

What are your thoughts and feelings on this subject?

REGREEN Online Green Home Renovation Resources for Homeowners and Professionals

In my last post, I looked at the green home renovation guidelines published by REGREEN, a joint partnership between ASID and USGBC. Today, I’ll give a brief summary of a couple of the online tools available from REGREEN. Each of the tools can work together with the guidelines published in the booklet.

When considering a green remodel project click the Green Remodels tab on the REGREEN website. There you’ll see three subcategories: REGREEN Basics, REGREEN Projects and Case Studies.

REGREEN Basics provides a generic outline about how to begin a project broken down into four steps: Audit, Plan, Prioritize and Dig In. This is a great way to begin to think about you project from a ‘whole-house’ systems level perspective. As you look through the four steps, you’ll begin to think about how it applies to your project.

REGREEN Projects reviews nine sample projects:

• Bathroom Remodel
• Kitchen Remode
• Home Addition
• Deep Energy Retrofit
• Gut Rehab
• Home Office
• Outdoor Add-ons
• Weatherization

Project details are provided with the information organized in the following manner:

• Overview
• Case Study
• Design Approach
• Systems
• Lessons Learned
• Team & Finances

The project reviews are a great way to develop an understanding of the green home renovation process and will help you to begin to think about how to approach your project. Each review is summarized and written in a format that is easy to follow and understand. References are included for additional information.

Case Studies of 18 different green home renovation projects and project types are reviewed. Lots of pictures are included and the information is very well organized. Reviewing case studies is a great way to get ideas about your green home renovation project.

Green Strategy Generator

Another useful online tool on the REGREEN website is the Green Strategy Generator. There are three fields selected with pull down tabs: Project Name (bathroom, gut rehab, etc.), Green Topic (Indoor Air Quality, Materials and Resources, etc.) and Design Elements (Equipment, Foundation, Lighting, etc.). When the fields are selected, a group of project strategies will appear. Each strategy includes an explanation, a summary of potential issues, references and links to related strategies where applicable.

The Green Strategy Generator is a useful tool for developing an understanding about how to approach and what to expect on almost any type of green home renovation project.

REGREEN Website is an Educational Tool

The resources on the REGREEN website are an excellent way to learn about green home renovation. The REGREEN online tools combined with the green home renovation guidelines will provide you with almost everything you need to know to get started on your green home renovation project.

If you or someone you know is looking to buy or sell a home in Denver Metro or Boulder County Colorado, I can help with most any type of transaction. Visit my website at E3GreenHOMES.com for more information.

Previous Post: REGREEN: A Collection of Green Home Renovation Resources for Homeowner and Professionals

Aurora Colorado Investor (Positive Cash-Flow Rental) or First Time Home Buyer Property

3 bedroom, 2 bath, Built in 1951, 993 SqFt, Price: $124,987

Completely updated with hardwood floors, tiled kitchen and bathroom floors, ceiling fans, all newer fixtures and doors, newer kitchen cabinets. Beautiful lawns with fenced back yard.

This is a great rental for positive cash flow or perfect for a first time home buyer.

Click here for more property information and photos.

EGREEN: A Collection of Green Home Renovation Resources for Homeowners and Professionals

I like to say the greenest home is the one that is already built. A green home renovation of even a small number of the 130 million homes in the U.S. could have a significant positive impact on the environment. For anyone that is either planning or interesting in learning about green home renovation there is no substitute for professional high quality project specific information.

REGREEN is an outstanding resource for green home renovation project information. REGREEN is a program jointly sponsored by the American Society of Interior Designers (ASID) and the U.S. Green Building Council (USGBC). The main purpose of the program is to provide a comprehensive set of green home renovation guidelines to support all of the major components of a green home renovation project including water use, energy efficiency, materials and resources, and indoor air quality. In this post, I’ll review the green home renovation guidelines produced by REGREEN.

REGREEN has published a 164 page booklet titled ‘Residential Remodeling Guidelines.’ The booklet, which is available in PDF form on-line, is a powerful resource for home owners, builders and design professionals interested in green home renovation. A well organized collection of green home renovation strategies are presented complete with recommendations on proven technologies and case studies of real projects. Project guidelines are presented for either whole house or individual green home renovation projects such as kitchens, bathrooms or bedrooms.

The green home renovation guidelines address ten specific green home renovation projects:

• Kitchens
• Bathrooms
• Bedrooms
• Living and Working rooms
• Finished Basements
• Home Performance
• Major Addition
• Gut Rehab
• Deep Energy Retrofit
• Outdoor Living

A ‘whole-house’ systems approach to green home renovation is emphasized even when a project only consist of one or two rooms. The reason is that maximum results are achieved when a green home renovation considers how all the systems in a home work together to reduce the overall environmental impact. From this perspective systems design and integration practices are organized to cross-reference one another for maximum benefit.

The green home renovation guidelines are not intended as a stand-alone resource. The guide includes extensive reference to additional sources of information on specific topics. Users are encouraged to explore the added resources and to formulate their own project plans to formulate their individual green home renovation techniques, strategies and materials.

An emphasis is placed on project planning in order to identify resources and formulate strategies for everything from design features and building codes to overall performance. Each of the 10 green home renovation projects is presented with a project plan template covering pre-design and implementation related issues. A case study is also presented for each of the 10 green home renovation projects.

Regardless of the size or scope your green home renovation project, the ASID/USGBC Residential Remodeling Guidelines is a must-have for homeowners planning a project or interested in learning more about green home renovation.

If you or someone you know are interested in buying a green home in Denver metro or Boulder County Colorado, give me a call. I am a certified EcoBroker and I can help you locate a green home to suit your needs.

Previous Post: LEED Certified Homes and Green Home Buyer Benefits (Part 2 of 2)

LEED Certified Homes and Green Home Buyer Benefits

In my last post I introduced LEED and the LEED for Homes program. In this post I’ll review the LEED for Homes Certification system and LEED home buyer benefits. All LEED programs are managed by the U.S. Green Building Council. The certification systems are periodically updated as new benchmarks are determined.

LEED for Homes is a rigorous certification program with well defined metrics for green home performance nationwide. The rating system evaluates home’s performance in eight principle categories.

1) Sustainable Site Selection: Location in proximity to schools, shopping, work and transit along with other factors enhancing the quality of life are encouraged. Attention to potential erosion, pollutants and interference with natural environment is discouraged. LEED Home Buyer Benefits: Homes conveniently located central to work and community services means less travel time and lower fuel cost in addition to more efficient use of personal time.

2) Water Efficiency: Innovative techniques and technologies are used in LEED homes to reduce a home’s water use and to incorporate creative ways to reuse water. LEED Home Buyer Benefits: Lower water bills and more efficient use of water resources.

3) Energy Efficiency: LEED homes use up to 60% less energy compared to the International Code Council’s standards for minimum energy efficiency. LEED Home Buyer Benefits: Lower energy bills and lower carbon emissions.

4) Materials and Resources: The use of recycled and reclaimed materials is encouraged in LEED homes. LEED Home Buyer Benefits: Efficient use of resources and lower carbon emissions.

5) Indoor Environmental Quality: LEED for Homes certification establishes benchmarks for indoor air quality by minimizing exposure to potential toxins and pollutants. LEED Home Buyer Benefits: Healthier homes mean healthier people.

6) Innovation: LEED encourages innovative ways to improve a home’s performance while improving durability and comfort. LEED Home Buyer Benefits: Innovative design and creative selection and use of materials take advantage of the latest technologies to help maximize operating performance which can increase comfort and lower operating costs.

7) Site Development: LEED homes use construction processes that minimize environmental impact and incorporate design practices that protect the land where the home is built. LEED Home Buyer Benefits: Improved landscaping and external water management systems.

8) Awareness and Education: LEED is actively involved with helping to educate homeowners about green home features. A LEED certified home is intended to be an educational example to the community. LEED Home Buyer Benefits: Everyone benefits with greater community awareness of the features and benefits of LEED certified green homes.

LEED for Homes certification is awarded on the basis of points earned from compliance to LEED rating benchmarks. A total of 136 points are possible. The more points achieved, the higher the rating which means higher home performance.

There are four levels of LEED for Homes certification:

     1) Certified: 45-59 points

     2) Silver: 60-74 points

     3) Gold: 75-89 points

     4) Platinum: 90-136 points

LEED homes help create a healthier home and a healthier planet. LEED home buyers benefit from purchasing a LEED certified home while helping protect the environment and helping preserve natural resources.

Visit E3GreenHOMES.com for information about locating Colorado green homes in Denver and Boulder areas.

Previous Posts: LEED Certified Homes are a Green Home Buyer's Dream (Part 1 of 2)

LEED Certified Homes are a Green Home Buyer's Dream

LEED homes are healthier and more comfortable for their occupants. In this post I will introduce the LEED for Homes certification system and highlight the benefits for home buyers.

LEED stands for ‘Leadership in Energy and Environmental Design.’ The LEED Green Building Rating System was developed by the U.S. Green Building Council (USGBC) to establish guidelines for characterizing and monitoring compliance with green building benchmarks. The first generation of benchmarks called LEED Version 1.0 began in 1998. LEED Version 2.0 was released in early 2000. Both Version 1.0 and 2.0 apply to commercial buildings. Adherence to the benchmarks is voluntary and consensus-based and relies upon existing proven technology. The purpose of LEED is to encourage and support the building industry toward the adoption of more sustainable building practices.

Following the LEED rating systems for the commercial sector, LEED for Homes first arrived as a part of a pilot program in mid 2005. Designed exclusively for the residential market, LEED for Homes was officially launched as a part of LEED Version 3.0 in late 2007. The LEED for Homes certification program was developed to provide a means of determining how well a home is designed and built with regard to energy and resource efficiency and to evaluate the how healthy a home is for occupants.

By November of 2008 1,084 homes across the U.S. had received LEED for Homes certification and over 13,600 homes had registered to pursue certification. Today, approximately 3,000 homes have received the LEED for Homes certification and over 16,000 are registered to pursue LEED for Homes certification.

The USGBC estimates potential energy savings of 30% for the average home rated at LEED-Certified level compared to homes built to the Internation Energy Conservation Code. Energy savings of up to 60% are possible.

Homebuyers seeking a premium green featured home will want to consider one that is LEED certified because a LEED Certified Homes are a Green Home Buyer's Dream.

As a certified EcoBroker, I can help homebuyers locate and evaluate LEED certified homes in Colorado. Please feel free to contact me with any comments or questions.

Visit my website at E3GreenHOMES.com for information on Denver Colorado Green Homes.

Previous Post: Green Building Renovation Market Forecasts is Great News for Home Buyers & Sellers

Green Home Renovation Market Forecasts is Great News for Home Buyers & Sellers

I published a blog a couple of days ago where I questioned the availability of data on green housing market growth. In that post I pointed out how the data we do have is scattered about and not well segmented. I also mentioned that green home renovation data was almost non-existent.

Well, I may have spoken too soon on that one. There is some green home renovation market data floating around but like the new construction data it is not well segmented or organized. Even still, I thought I’d present what I do have.

The green home renovation data below was gathered from several press releases and news reports about a new market analytics report titled, “The Green Building Retrofit, & Renovation SmartMarket Report,” jointly published by McGraw-Hill Construction and the U.S. Green Building Council. I haven’t purchased the report but I may at some point in the future. For now, I’ll share the few morsels of green home renovation market information I was able to extract from the press releases.

• New buildings represent 2.5% of the U.S. building market, the rest are existing structures

• Green home building currently makes up 5-9% of the retrofit and renovation market

• Current market size for green home renovation and building retrofit is $2-4 Billion for major project, with smaller projects unaccounted for

• Green home renovation market is projected to grow by 20-30% by 2014 with a market size of $10-15 Billion

• Major green home renovation and building retrofit market shift will occur in 10-15 years when green retrofits and renovations will have a 50% market share.

• 92% of green home renovation projects included energy-efficient mechanical and electrical systems.

Granted, this isn’t much in terms of information, but does give us some indication of the future of green home renovation potential. I like to say the greenest house is the one that is already built. With nearly 130 million homes across the country, it’s fair to say the green home renovation market has enormous potential.

This is great news for both home buyers and sellers because it reinforces the notion that green homes are moving toward mainstream housing market. This means there will be more green homes to choose from across price ranges and geographical areas enabling prospective homeowners to make better more informed buying decisions.

Many people don’t realize, for example, that it is possible to obtain a single loan to purchase a home and perform green renovations prior to moving in thus creating a healthier, more comfortable home with lower energy costs.

If you or someone you know is interested in purchasing a home in the Denver or Boulder areas of Colorado, I can help. I can assist with all types of home buying and selling transactions including locating, evaluating, buying and selling homes with green features and benefits.

Please feel free to contact me with any comments or questions.

Previous Blog: How to Earn Fixed Rate Double Digit Yields with Private Mortgage Loans (Part 2 of 2)

How to Earn Fixed Rate Double Digit Yields With Private Mortgage Loans (Part 2 of 2)

In my last post I spoke about private lenders are able to earn fixed rate double digit yields by making private mortgage loans on real estate. Interest rates earned typically vary between 8-12% or more depending on how the loan is structured, the length of the term and weather it is a simple interest or compound interest type of loan.

In today’s post, I’ll first review how private mortgage loans are secured. Then, I’ll summarize the process involved in making a private mortgage loan.

How Are the Lenders Protected?

• Lenders are protected by the same methods used by banks:

• Equity Cushion: Loan-to-Values are less than banks

• Promissory Note: Specifies the loan terms and security instrument

• Deed of Trusts: Secures the loan; recorded in county records

• Hazard Insurance: Policy names lender as beneficiary

Lenders are protected with an equity cushion because the maximum loan-to-value on properties purchased is typically 70% or less on a first mortgage. That means the borrower would borrow up to $70,000 on a $100,000 property. Banks typically loan 80% to 95% on first position mortgages.

I will sometimes borrow by offering a second deed of trust with a loan-to-value of up to 85%. In the case of a second position, we pay a higher interest rate to reflect the slightly higher risk associated with the loan-to-value and the second position.

The private mortgage loan is secured by a promissory note that outlines the detailed terms and conditions of the loan and identifies the security instrument. The loan is secured by a first or second first position Deed of Trust (mortgage), which is recorded with the county. This is the saving grace for the investor because the loan is secured by a fixed asset valued higher than the loan.

All closings and corresponding documents are completed by attorneys or title companies. Everything is handled in a legal and professional manner.

Private mortgage loans are made on a per property basis. The following steps outline the process involved in a typical deal funded by a private lender.

1) An investment property is identified and a discounted purchase price is negotiated.

2) A Lender Opportunity Package is sent out requesting funding for the deal including estimated value and all the investment purchase details.

3) A lender is selected and provides a Letter of Commitment (LOC) to fund the project according to the contract closing date.

4) The purchase contract is sent to the attorney’s office or title company, title search is ordered, and they will start preparing the rest of the documents.

5) Closing: Lender provides certified funds to title company (direct from personal account or retirement fund); All documents are signed and the transaction is complete.

6) Documents created for the private lender at closing:

• Deed of Trust
• Promissory Note
• Title Insurance Policy
• Fire/Hazard Insurance

7) With the purchase transaction complete, the property is remodeled, and either marketed and sold or held depending on the terms of the private mortgage loan.

8) The private mortgage loan including principal plus interest is paid in full upon the sale of the investment property.

9) The private mortgage lender has the option to receive payment or invest in another deal.

The process is quick, easy and well documented.

Why Use Private Mortgage Loans?

When my firm pays cash for a house, I prefer to use private lenders instead of bank loans because this approach affords maximum flexibility to quickly and creatively structure the most profitable deals.

The availability of capital is more important than costs. The quick availability of cash makes it possible to purchase good deals with large amounts of equity that I would otherwise be unable to acquire.

And since I are able to get a very high return on my real estate purchases, I can offer private lenders high fixed-rate yields-often double digits-when using their money to fund our deals. Everyone wins!

If you or someone you know are interested in learning more about private mortgage loans, please feel free to contact me with any comments or questions.

John Thomas MSEE, MBA

Previous Post: How to Earn Fixed Rate Double Digit Yields with Private Mortgage Loans (Part 1 of 2)

How to Earn Fixed Rate Double Digit Yields with Private Mortgage Loans (Part 1 of 2)

A Welcome Alternative to Unpredictable Stock Markets

Investors are more often than not, at the mercy of the onset and departures of bull and bear markets. Today’s market is as definitive a bear market as can be recalled in recent history.

Many investors feel that their investments are simply not earning attractive rates of return, especially considering the risks of investing in securities such as stocks and bonds. Today, many investors witness their hard-earned capital and retirement funds shrink or even disappear.

With millions of baby boomers expected to take their money out of the stock market in coming years, retirement funds and pension plans are rapidly losing purchasing power. The results are record low returns for investors. With the recent economic downturn, many people are already beginning to feel the pinch.

Real estate is a safe and reliable investment, when purchased correctly, and it's an investment capable of producing superior yields while at the same time providing both security and liquidity.

At a time when traditional investments including retirement accounts, stocks and bonds are suffering record losses, private real estate investors continue to earn yields three to five times those earned by traditional investments even when markets are considered stable. And this is nothing new. Entire companies have been built around this investment strategy and those who've done it properly have grown to huge proportions. Private individuals can do it too.

Few Americans realize that they have the option to Self-Direct their IRAs and other retirement plans into real estate-and that they can benefit from the tax advantages those plans provide. IRA investments earn tax-deferred, tax-free profits. All that is required is to move the IRA funds to a custodian like Equity Trust, or EnTrust both of which specializes in Self-Directed IRAs.

Private Mortgage Lenders Earn High Yields

Private Mortgage Loan Interest rates are fixed for the term of the loan. The specific amount of the fixed rate for any given loan is determined by the length of the loan in addition to the lender's individual needs or requirements.

Some Private Lenders choose to receive monthly payments, for example, including principal and interest while others choose interest only which keeps 100% of the principal working for them.

The amount of Private Mortgage Loan interest paid is determined by the way the private loan is structured.

• Typical rates are fixed between 8-12% during the term

• Borrowers typically pay simple interest on monthly payments or compound interest when interest accrues.

• Short-term loans may vary between 6-24 months

• Longer-term loans may be 2 - 7 years or longer
  

In my experience, most Private Lenders prefer to defer receiving payments in favor of a single balloon payment at the end of the term because this earns the highest yields.

In the next post, I’ll outline how the Private Mortgage Loan process works and how private mortgages are secured. If you or someone you know are interested in learning more about private mortgage loans, please feel free to contact me with any comments or questions.

Previous Post: Green Home Market is Rapidly Growing-Where is the Data Part 2 of 2

Consumers Care About Health and the Environment: Green Homes is a Solid Market Trend.

In my last post I covered some of the basic green home market data from McGraw Hill Construction. One of the key points is that the data is all grouped together. In order to be able to extract any information suitable to influence strategic decisions, it must be segmented by factors like price range, geographical region, green features, etc. I think we are going to have to wait a while to obtain data with that type of granularity, but we can still use the information to help shape our general business direction. One thing is for sure, no matter how you slice it, the market outlook for green real estate going forward looks very promising.

In this Part II I am going to list some of the more consumer related information supporting the green home market.

• When asked to list their top 12 influences in buying a home, consumers responding to a National Association of Home Builders survey last year put energy efficiency at No. 2 , behind quality of living space. Five years ago, energy didn't even make the same survey. (The Huntington Post, February 2009)

• According to the National Association of the Remodeling Industry survey, 46 percent of American homeowners claim they would be eager to incorporate green principles into their homes, especially if it would save them money. Experts estimate one can generally save 20 to 30 percent on energy costs with $4,000 to $8,000 worth of improvements.

• Americans Ready to Spend More Green on the Home 48 percent of homeowners would spend $2,500 or more on greening up a home for resale according to the Better Homes and Gardens Real Estate “Living Green” Consumer Survey. The findings are the result of the Better Homes and Gardens Real Estate Living Green Consumer Survey. (Lawn & Landscape Magazine, Nov. 7, 2008)

• A recent survey by the National Association of Realtors found that nine out of ten realtors said their clients were interested in energy-efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now. (St. Charles Journal, September, 2008)

• According to a 2007 National Association of Home Builders survey, 63 percent of buyers are motivated by the lower operating and maintenance costs that come with energy and resource-efficient homes. (Environment News Service March 2007)

• According to the National Association of Home Builders, when 800 registered voters were given a list of motives for either purchasing a new green home or remodeling their current home to make it greener, nearly two-thirds (64%) identified “reduced energy costs” as an important factor, followed by “because it would be healthier,” and it’s “the right thing to do for the environment.” (www.nbnnews.com, Nov. 2007)

Back to the economic picture, here is one piece of information supporting the increased value of green homes compared to other homes that are not green:

• While the average U.S. home lost 5.7% of its value in 2007, eco-friendly homes have held their value, even appreciating in price. Come sale time, a green property typically appraises for 10% to 15% higher than comparable conventional homes according to Jim Amorin, vice president for the Appraisal Institute, a professional trade organization. (Smart Money, January 2008)

Again, the data is scattered all around from different sources and at different times. I am hoping to update my information sometime soon. I'll post another blog of the finding when it's done.

Here in Boulder Colorado and also in the Denver Metro region there is a growing sentiment toward green homes. I believe we are going to start to see similar trends in other parts of the country in the near future.

Previous Post: Green Housing Market is Rapidly Growing--Where's the Data?