the green real estate investing opportunity

The GreenReal Estate Investing Opportunity

JimSimcoe

760-271-7128 jim@jimsimcoe.com

3,095,313

Today:

The Vision The Landscape

The Plan (and a few ugly slides)

Tree-hugging Capitalist

What do we all want?

Maslow's Hierarchy of

Needs:

Mine:

Love Health Sex

Wealth Safety Friends

2 Wins...

My reasons...

What if?

Be part of history

‘Sustainable’ RE Investing:

Profitable 2. Cookie-Cutter 3. SIMPLE

Green Real Estate:

Healthier

Lower utility bills

High-

performance

Investors

Community

Residents

Workforce Housing Industry

Planet

Competitors

Green Vendors

Impacts

Current

Investment landscape:

Stocks Bonds Mutual Funds

Cash Start-ups Real Estate

Stocks Bonds Mutual Funds

Cash Start-ups Real Estate

Current

Real Estate landscape:

REO’s Short Sales

Prices Down

Little Variety

1% Green

REO’s Short Sales

Prices Down

Little Variety

1% Green

Current ‘Green’

landscape:

Wind Solar Real Estate

Everything else

Wind Solar Real Estate

Everything else

What drives the Green Real Estate market?

Investors Buyers/Tenants High

returns Safe

havens Low cost

Safety Lower bills

Healthy living

What do

Home Buyers Want?

According to a ZIP Realty survey:

•89% of homebuyers rated energy efficiency the most important feature in a home.

•55% of all home shoppers now cite green home features as an important part of their purchasing decision.

•Less than 1% of homes on the market include “energy efficiency” in their description.

According to an Apartments.com survey:

60% of prospective renters search for properties that offer environmentally-friendly amenities.

17% of renters said they would not rent an apartment without environmentally friendly amenities.

57% of renters said their apartment community does not currently provide environmentally friendly amenities.

Where is the competition?

Old ‘green’ myths: Expensive

Complicated

Now

Click, click, click

Green is: • High Performance

• Available

• Inexpensive

•Worthy

Green buildings: • Energy efficiency

• Water efficiency

• Resource conservation

• Indoor environmental quality

Two Best Options:

Houses Apartment Buildings

123 Happy Street

“Green me, please”

Houses

Middle-Class neighborhoods Climate with high

utility use Lots of rebates

Built before 1990 Zero ‘green’

interest/knowledge City Mayor who ‘gets it’

Apartments

Lots of landscape

Master-metered

No competition

Family renters

Old systems/equipment

Open envelop

InvestmentStructure

Solo Partners Funds

Passive Money

Leverage the

Green RE Opportunity:

Vendor Tree-Hugger

Investor

Vendor

Network Value Prop

Start With Why

Green Projects

Avoid “green” labels

Success Not

Perfection

Capitalist Tree-Huggers

Go ‘Outside’ Connect Sweat

equity

Find Investors

Find Deals

Investor Profile

Then...

Now...

Investor

Goals ROI Risk

Tolerance

Plant Corn or Trees

Our Match Making

Game...

Incentives

40 Free Trees, Insulation, windows, Roof, water heater, appliances, washer, dryer, etc.

What money is available?

• Rebates

• Tax Credits

• Incentives

• Grant money

Where is it? • City

• County

• State

• Federal

• NGO’s

Rebate examples:

Text

DSIREUSA.ORG

GRANTS.GOV

ENERGYSTAR.GOV

Energy Efficiency Loan Programs

Green Marketing

Buy on emotion, justify with logic

Don’t be this guy...

“Sell NEEDS, not Wants”

Want Need

Trip to Hawaii Groceries

Bentley Car

Mansion Shelter

Want Need

Bamboo floors No toxins

Cool looking lights Lower utility bills

Luxury Safety

Save money Live safely

What buyers/renters need:

Sell Planet first = you lose

Sell Savings/heath first = you win

Environmental benefit is a BY-PRODUCT

Make Marketing Automatic

(and ubiquitous)

‘Green’ Sale Sign

Wall Signs

‘Green’ flyers

Results:

Sold for $5000 more, 61 days faster than market

Leverage Existing Data

(Warning: ugly slide coming up...)

Five Next

Actions

Path

Where are you going?

Plug in

“Who loves you, baby?

Goals

3 Big Goals.

7 words or less.

Clear Cut.

Carry in wallet.

Reverse Engineer

“I choose to________”

“Success is________”

“I choose to become a green RE investor ”

“Success is a $500K annual income”

“The first thing I must do is__________”

“To make $500K I need to close 10 deals

at a profit of $50k each ”

Mastery

Kaizen.

Empower your team.

Train.

Teach.

“Fortune Favors the Brave”

Q & A Jim Simcoe

JimSimcoe.com

760-271-7128