Do not underestimate home inspections

Many people don't take advantage of or understand the importance of getting a home inspection.

Especially if you start to do a lot of deals as an investor, you'll see how this will not only help you increase profits but also help you to avoid some costly mistakes!

First of all, if there is something wrong in any area of the property inspector will write it in a report and many times, give you repair estimates. So if there were things they found you were not aware of, you can go back and negotiate with the seller for a price discount or make other arrangements to resolve the problems. This will also help you to avoid bad deals that could cost you tens of thousands in unexpected repairs. Never take that chance!

You can find a good home inspector in Los Angeles area at http://www.AirCoolCalifornia.com

Top 3 things about your HVAC

California $75 million statewide green job training program

On August 31, Governor Arnold Schwarzenegger of California announced what will be the largest statewide green jobs training program in the country.

Aimed at tackling two major crises facing California - an unemployment rate of nearly 12% and impending climate change - the new Clean Energy Workforce Training program will train more than 20,000 workers in installing solar panels, weatherizing homes, green HVAC and more.

The program will be funded at $75 million. $20 million will come from the Obama Administration's stimulus package while the other $55 million will come from various state and private sources.

Speaking at the Los Angeles Trade Technical College, Governor Schwarzenegger and L.A. Mayor Anthony Villaraigosa announced the initiative after touring the school’s alternative fuels laboratories.  Trade-Tech is a leading model in green workforce development within community colleges, with programs in clean fuels, hybrid technology, low emission vehicles, green construction, weatherization, and retrofitting.

The Governor’s announcement aligns with his goal to have California receive 20% of its energy from clean sources by 2010.

AIRCOOLCALIFORNIA will take great part of it training our employees in the best workshops in Los Angeles.

Savvy Contractors Will Make a Difference in the REO Marketplace!

Knowledgeable real estate experts know that foreclosed properties are taking a long time to finally making their way back on the market – to transition to REO (Real Estate Owned) listings. Back in February, RealtyTrac.com estimated that up to a shocking 70% of foreclosures still weren’t on the MLS yet. 

One large reason for the delay? Because of the explosion of the number of foreclosures in recent months, banks can’t keep up with processing the individual properties. That means they sit untended, unsecured and unoccupied for longer periods of time – leaving these homes open to vandalism, threat and damage. 

That means that, by the time property preservation companies are finally called in, there’s more much more substantial rehab work to be done on these homes. The lawn is usually a disaster, the plumbing can need major repairs and there is probably rotting food in the refrigerator. 

Ideally, the “trash-out” of foreclosures should be accomplished as soon as possible to ensure these properties don’t deteriorate to a point where the house becomes unsafe and they’re unsuitable for market. The recent foreclosure moratoriums made that process difficult for many properties – and now, that the moratoriums are over, there is a huge backlog of foreclosures to process. 

To get a real sense of what’s involved in cleaning out a foreclosure, a video produced by a AIRCOOLCALIFORNIA market specialist's  posted below:

Solar PV Installation Finance!!!

AB 811 to the Rescue 

California’s innovative clean energy loan law 

• Assembly Bill 811, signed into law by Governor Schwarzenegger in 

July of 2008. It amends Chapter 29 of the 1911 Assessment Act. 

• Allows cities and counties to create AB 811 Assessment Districts, land- 

secured finance districts that provide the upfront cost of solar 

installations and energy efficient improvements through financing 

provided by the sale of Clean Energy Bonds. 

• Loans are repaid by property owners over 20 years through a new line 

item on participants’ property tax bills. 

• Program is 100% opt in.  Property tax expense remains unchanged for 

those not participating.

SB 279 to the Rescue Too 

Another AB 811 Type Program 

• Another financing option is the Special Tax Option 

through an amendment to the Mello-Roos Act.  Used for 

the Berkeley program.  Creates a special tax district. 

• Now advancing through California Legislature as SB 279 

• Available to all all local agencies in addition to cities and 

counties. 

• Repaid as line item on property tax bill, 100% opt in.

AB 811 to the Rescue 

It’s Not Just For Solar - Energy Efficiency Too 

• Energy Efficiency Improvements including HVAC, 

insulation, high performance doors and windows, energy 

star appliances all apply for same clean energy finance 

programs as solar PV and Solar hot water. 

• Some California locations will get more bang for their 

energy investment bucks through replacement of old low 

SEER rated air conditioning systems.

 

California’s innovative energy loan law 

• Eliminates all upfront costs to install solar and energy improvements 

for property owner.  Property owner’s payments fixed for 20 years. 

• No credit check or income verification is required for property 

owners in good standing. 

• AB 811 & SB 279 loans transfers to the new owner if the property is 

sold.  

• Full CSI rebates and 30% Federal income tax credit still also go to 

homeowners installing solar, other energy efficient improvements.

Isn't it AMAZING????

Who Is Using It Today? 

• Palm Desert: (Population 47,000) 

Part of City’s EIP program. 

Completed Phase 1 and 2, now in 

Phase 3.  $7.5 million granted in 

208 total loans.  88 for solar, 120 

for energy efficiency improvements.  

Most loans for high performance 

AC SEER 14 or higher 

• Berkeley: (Population 105,000) 

Small pilot program $1.5 million in 

municipal revenue bonds in 

November 2008.  Program sold out 

in nine minutes.  40 solar loans 

funded.  20 more on waiting list.

 San Diego: Working with 

SDG&E and CCSE 

Launched a pilot program in 

January 2009 focusing on 

150-300 homes. 

• Sonoma County: Launched 

Sonoma County Energy 

Independence Program in 

March 09.  All 9 cities 

enrolled.  First solar loan 

funded May 09.  $100 

million in funding available. 

First countywide program.

 San Francisco:  Mayor 

Newsom announced in March 

2009 that the city would adopt 

the Berkeley loan program and 

take it to the $20 - $30 million 

level. 

• Other California cities & 

entities now planning AB 811 

type programs: Sacramento, 

Alameda County, Roseville, 

Association of Bay Area 

Governments, Redwood Coast 

Energy Authority, Imperial 

Irrigation District

How Are They Paying For It? 

• General Fund Loans, or agency loans – 

Palm Desert and Sonoma County are 

pursuing this method 

• General Fund Bond financing, which is 

Lease Revenue Bonds but it’s still  

backstopped by the General Fund - not of 

interest to most cities. 

• Land-Secured bond financing, which does 

not put the General Fund at risk. This is the 

Special Tax or Special Assessment district.  

Bolder County, Colorado is pursing this 

mechanism 

• Private Funding which the City of Berkeley is using through Renewable Funding to 

finance their program.

What kind of financing terms? 

• Interest rates currently ranging from 7% - 

9%.  Considered too high for broad 

program success.  Needs to be 5% - 6% to 

drive widespread adoption 

• Maximum loan amount ranges to $50k but 

can go higher with approvalRepayment 

terms range from 5 - 20 years.  Longer 

payment terms result in smaller payments 

• Over $200 million in total financing 

available for AB 811 programs.

So looks like Solar becoming more and more affordable and we are heading towards a NEW, Green civilization! The Earth is definately deserves the second chance!

Tax Credit on Your New System Installation

What the American Recovery and Reinvestment Act Means to You The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343). Businesses, utilities, and governments are also eligible for tax credits. Access www.recovery.gov for the full American Recovery and Reinvestment Act bill signed by President Obama.

HVAC Tax Credits (under the 2009 stimulus)

Under the current HVAC stimulus, those who purchase and install specific efficient HVAC products, such as air conditioners with high SEER ratings or geothermal heat pumps, into existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010 under the 2009 stimulus. For geothermal heat pump installations, the credits can exceed $1500 and actually go up to 30% of the entire cost of procurement and installation!