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Bought It$100,000 Target Spread

Sold It

Squeezing The “Spread”Many REO’s have been bought and received “Lipstick

On A Pig”= Low Prices for

Comparables

Some Appraisers refuse to give full value to Green &

Home Performance and Superior Renovations

Investors are beginning to trust the slow recovery & see that money can be made both Flipping and Buy and Hold

Banks Continue to hold properties that

are in default, restricting the flow of foreclosures onto

the market.

Pushing Final Sales

PricesDown

Pushing OriginalPurchase

PricesUp

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G r e e n E a r t h E q u i t i e s . C o m © 2010

With This Market SqueezeWhat Are Our Choices?

1. Perform Less Work, Join the Lipstick Flippers

2. Bail Out. Leave it to the government to fix our planet.

3. Move our investments to another area. (Indianapolis, Las

Vegas, Atlanta etc)

4. Flex & change strategies to avoid being crushed

in the squeeze

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Choices:

1. Perform Less Work, Join the Lipstick

Flippers

This just doesn’t fit if you really have a

Green Heart and are committed to the

mission

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G r e e n E a r t h E q u i t i e s . C o m © 2010

Choices:2. Bail Out. (Of Energy Wise

Investing) Leave it to government & programs to fix our planet.

Believe that the current round of stimulus, grants, rebates, programs and certifications are going to get a lot more efficient and generate

more complete jobs. ??? And bring us to our 2030

Energy goals ???

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 © 2010

Choices:3. Move our investments to another area. (Indianapolis,

Las Vegas, Atlanta etc)

This is a viable option & allows us to stay on

mission ... But only in those areas that we would work.

To fix our own communities ... We must

find a way to work in them

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 © 2010

GreenEarthEquities Choice &New Direction For 2010

1. Shift emphasis from Exit Strategy #1 Retail Flip to Exit

Strategy #8 “BRRR”(Buy, Renovate, Rent, ReFi)

This is not a new strategy ... But making it Plan A instead of Plan B is new as we move into this new real estate market.

(We will still Retail Flip select projects when we can)

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Pros & Cons Of B R R R1. We can build and

sell for “Value” & Do The Right Thing & Stay On Mission

Standard definition of value (not the definition used by

appraisers or bankers)

Value = The amount that a willing buyer

& a willing seller agree upon

Sounds logical, doesn’t it? Unfortunately, Home Performance, Energy & meeting Climate Goals is not

part of the Bankers & Appraisers Agenda which actually hinders progress toward those goals.

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Rent or Lease Option... Continued

This means our project does not need an appraisal in order

to sell it right now.

Rent and ReFinance With this choice we retain all

the appreciation that may happen in the next few years.

(but we do have rental issues, vacancies, damage, etc)

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 © 2010

Rent or Lease OptionLease Option

Agree upon a fair selling price and a time to exercize the

option ... 2,3,or 4 years.

Property will need to meet appraisal for sale at that time.

We have buyers with “ownership mentality” in the

home.

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 © 2010

Rent or Lease Option

Either way, we refinance and have good cash flow.

The refi has gotten us most or all of our cash back to continue our mission

(but no profit, we have to wait for our profit)

If profit is needed for monthly cash flow, working on the job remains as a source of cash.

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 © 2010

Go Net Zero With Solar PVBecause our projects are

already so tight, we can go to near net zero with a small

Solar PV system.

This is also facilitated by the lack of appraisal for sale.

Over the next 2-4 years we will bank on the economy improving and appraisers

catching up with the times and the needs of our planet.

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 © 2010

Financing Solar PVFinancing Solar PV is difficult for a

homeowner. Difficult for a contractor.

But easy for an Investor who doesn’t have to meet an artificial

appraisal number.

When it is included in the ReFi, it is at the lowest rate available for

30 years. = much cheaper than consumer

financing.

Tenants are often willing to pay all or part of the additional costs.

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 © 2010

Financing Solar PVTenants are often willing to pay all

or part of the additional costs.

Cost of PV System: $18,000(gross, rebates and credits apply)

Cost of $18,000=$97 per month

Most renters or lease optioners will agree to pay $50 if we will

include Solar. (We are paying half of

utilities already)

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 © 2010

Fresno Market Last Week

Following are the documents we used to go shopping in Fresno last week.

We offered on these three properties plus one more

All will fit into our 2011

BRRR strategy.

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Watch for this clause.

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