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!

PROPERTY PRESERVATION SERVICES

Air Conditioner Maintenance and Energy Savings

In spite of years of studies, demonstration programs, and published stories to the contrary, most facility organizations today still operate in a reactive mode. Though facility executives know that is far better to schedule maintenance activities using planned and predictive maintenance tools, most continue to spend the bulk of their resources operating reactively. The most common reasons cited for this is the lack of sufficient resources.

This approach to maintenance with respect to HVAC systems is particularly troubling given the role that HVAC systems play in today’s facilities. HVAC systems in typical commercial buildings are responsible for more than 40 percent of total energy use. Keeping HVAC systems running properly and at peak efficiency is the first step in managing facility energy use.

The importance of good HVAC system maintenance goes beyond just controlling energy use. Buildings today depend on properly operating systems for more than just people comfort. For example, most telecommunications systems have requirements for specific environmental conditions to operate properly. Temperatures and humidity levels that fall outside of this range can lead to interruption in services and even costly system failures. Sometimes the difference between keeping a business running and having to shut down is nothing more than proper HVAC system maintenance.

In spite of all the supporting data and facility executives’ efforts, most organizations underfund maintenance. Reactive maintenance remains the norm, not the exception. Maintenance is deferred. Planned and predictive maintenance remain the exception. The most commonly cited reason for not performing routine and preventive maintenance on HVAC equipment is lack of resources. The C-suite rarely has facility experience and does not fully understand the need for maintenance. To many who establish and control budgets, maintenance is an overhead cost. Like other overhead costs, steps should be taken to reduce it. Reducing overhead costs increases profit margins. And like other overhead costs, the only impact of this reduction is reduced costs. Proper maintenance of HVAC systems requires careful planning and forward thinking, both of which become lost when maintenance is considered nothing more than an overhead expense.

Contributing to this belief is the unfortunate fact that HVAC systems are not the most noticeable components in a facility. Unlike highly visible items, such as carpet or lighting systems, most HVAC systems are out of sight and out of mind, until something goes wrong. And when something does go wrong, it is too late for maintenance to be performed efficiently. Maintenance at that point becomes reactive.

Reactive maintenance is the most costly way to maintain building HVAC systems. Organizations that have implemented comprehensive planned and predictive maintenance programs show dramatic decreases in maintenance costs. And when factors are included, such as extended equipment life, reduced energy use, less frequent system downtime, and decreased interruptions to building operations, organizations that have implemented comprehensive maintenance programs find that their total costs can be as much as 50 percent lower than the costs for those organizations that continue maintain equipment reactively.

While it is easy to blame those who control the budget, facility executives themselves are at least partially to blame. If facility executives are to receive the budgetary support necessary to carry out their mission, they must present their case in the terms that are best understood by budget managers. Simply saying that money is needed to overhaul or replace a chiller, particularly when the chiller is still running, is not enough. Facility executives should be able to demonstrate the consequences of ignoring HVAC system maintenance while identifying the real cost savings associated with comprehensive maintenance. Demonstrate that dollars spent on the maintenance of these systems will result in an improvement in the bottom line.

Location, location, location. The phrase is a real estate cliché. In maintenance budgeting, the key is documentation, documentation, documentation. Funds in organizations, particularly during economic downturns, are limited. Competition for those funds is intense. Other departments have pet projects that they are promoting. They are the competition. If facility executives want to level the playing field, they should make the case that investing money in HVAC maintenance will provide the organization a rate of return that is equal to or even greater than what others are promoting. And that requires documentation.

Properly maintaining HVAC systems provides a number of benefits that facility executives readily understand. Proper documentation of these benefits will help budget managers develop the same level of understanding.

Save the Energy

One of the easiest benefits to document is how HVAC maintenance affects energy efficiency. Facilities in which proper HVAC maintenance is completed will use at least 15 to 20 percent less energy than those where systems are allowed to deteriorate.

For example, consider the operation of a central building chiller. Building chillers typically are the single largest user of electricity in a facility. To keep them operating as efficiently as possible, maintenance tasks must be performed on a daily, weekly, monthly and annual basis. Let them lapse, and efficiency will decrease, increasing energy use.

Start with the chiller operating log. Work with the chiller manufacturer or a service company to translate the log data into an operating efficiency curve for the chiller. Develop a similar curve for what the efficiency of the chiller would be if all maintenance were performed at the recommended intervals. The difference between the two operating efficiencies can be translated into energy and cost savings. Due to the high energy use of the equipment, even small increases in efficiency will result in large savings.

While the energy savings estimates for chillers, boilers, and many other HVAC systems is straightforward, others savings estimates may not be. Consider outside air dampers. Air dampers require regular maintenance to respond properly to the temperature control system’s demand for ventilation air. If the damper linkage is out of adjustment, or if it sticks open, more ventilation air will be introduced than necessary, requiring the system to use more heating or cooling energy to condition that air.

Regular inspection, testing and maintenance of the damper will keep it operating properly, minimizing energy use. Document what needs to be done, how much it will cost, and what the cost would be for a stuck damper. Show how much a stuck open damper would cost in terms of energy use.

HVAC Maintenance

"We recommend annual air conditioning check-ups in the spring and furnace check-ups every fall. Although regular checkups will not absolutely guarantee that a unit will continue to work perfectly throughout the season, they will reveal most small problems that can lead to major, far more expensive problems if left unattended."

Homeowners can do the following things to maintain their air conditioning units:

1. The first thing to check before turning on your unit is to make sure the condensing unit located outside is not covered up. The unit needs to draw air into the system in order to have something to cool and circulate inside, but the process is hindered if it cannot pull in enough outside air. (We're amazed how many homeowners call because their air conditioner isn't cooling, only to find they forgot they had temporarily stacked lawn furniture, bags of leaves and lawn clippings, around their unit over the winter.)
2. Some people intentionally cover their condenser to protect it from the elements during the winter, although these units require no protection since they are designed for outdoor installation.
3. Run your air conditioner for a few minutes in late spring or early summer, before you need it. If you wait until the first hot day to discover it isn't working, you'll find yourself on a waiting list, sweltering for days before an air conditioning specialist can come to fix it.
4. Change the filters regularly. Dirty filters restrict air flow, reduce efficiency and worse case, can cause the evaporator to ice up. Disposable fiberglass filters should be replaced. Electrostatic or electronic filters need to be washed regularly.
5. Be sure all access panels are secure, with all the screws in place.
6. Clean obvious obstructions such as newspaper and leaves from around the exterior of the unit.
7. Be sure the thermostat is set in the cooling mode. Just setting the dial below room temperature will not activate the air conditioning if it is set in the heat mode.
8. A thoroughly cleaned air conditioning unit will operate at top efficiency. However, homeowners are strongly discouraged from using a hose and water to try to clean it themselves because of the very serious risk of electrical shock and possible shorting of electrical components.

While you're at it, here are the steps of a professional furnace check-up.

1. Inspect thermostat for proper operation.
2. Inspect filter, and change or clean as needed.
3. Check all electrical components and controls.
4. Oil motors as needed.
5. Inspect heat exchanger for possible cracks. A crack in the heat exchanger will introduce carbon monoxide into the living space.
6. Check air flow. If diminished, it may be necessary to clean the evaporator coil.
7. Check air fuel mixture, where appropriate.

To locate a reliable Heating & Air specialist to service your air conditioning unit, simply visit http://www.aircoolcalifornia.com 

Reduce your Heating Bill this winter

This winter, many people are facing much higher heating bills. The costs of fuel oil and electricity are rising, and natural gas prices are up to 50 percent higher than last year, according to the U.S. Department of Energy.

As fuel prices rise, it’s tempting to look for the single solution that will shave off a large part of your heating bill, but there are numerous ways to improve the energy efficiency of your home. Many of these are simple, inexpensive steps that can reduce your energy use and bring you immediate savings. You also should keep in mind home improvements that will lead to long-term savings, including purchasing more efficient windows, additional insulation or an energy-efficient heating system. When you’re building a home, remodeling or buying a new heating system, choosing the most energy-efficient options can bring you significant savings over time.

What I like to tell people is that energy efficiency shouldn’t be a hardship - in fact, it can be very rewarding. Not only is increasing the energy efficiency of your home a step toward a sustainable use of fuel and less pollution, it also offers you greater security and independence, lower energy bills and can make your home a more comfortable place to live.

Adjust the Thermostat

The most obvious way to reduce your fuel use is to turn down the thermostat. Think of it as a valve between your fuel supplier and your wallet. For every degree you turn it down, you will use up to 3 percent less heating energy. A 10-degree setback overnight or while you’re at work will cut your heating bill by up to 10 percent.

When you use a programmable thermostat, you save energy without even thinking about it - simply adjust the settings to turn the temperature down automatically while you’re away from home. Keep in mind that it doesn’t take long to heat your home to a comfortable level - only about 15 minutes. Never adjust the thermostat above the desired temperature; doing so will not heat your home any faster.

Some heating systems allow you to provide temperature control to different heat “zones” in the house. If you are installing a new heating system, make sure you have enough zone control to keep seldom-used areas of the house at cooler temperatures.

 Older windows are often big energy wasters. When you’re ready to invest in new windows, many energy-efficient options are available. But before you buy, you should know there are several inexpensive repairs that can improve the performance of your current windows.When assessing the condition of your windows, look for the number of panes of glass (also called glazing), and how tightly the windows close. If the sashes and frames are rotten, then it’s time to think about new windows. Any drafts you feel when standing next to a window are likely due to air infiltration around the window frame or sash perimeter. Address drafts by installing sash locks and weatherstripping around the perimeter of the window. For double-hung windows, consider side-mounted sash locks that pull the window tight to the sides of the frame, not just where the sash rails meet.

ou can remove the inside trim surrounding the window to see how it was installed into the framing cavity. Any air space between the house shell and the window frame can cause significant air leakage and should be sealed. If the gap is not too wide, then it can be sealed with caulk, backer rod or nonexpanding foam. For windows with ropes and pulleys, buy pulley seals to stop air infiltration there.

You can reduce heat loss through windows by covering them with plastic window film or insulating window inserts.

Efficient Heating Systems

A typical heating system will last about 20 years, although some have been around much longer. If yours is 15 years old or more, then it is a good candidate for replacement: Efficiency can range from about 60 percent in older equipment to 95 percent or higher in modern systems. The Annual Fuel Utilization Efficiency  is a standardized test of a heating appliance’s overall efficiency and is listed on the yellow EnergyGuide tags found on heating equipment. A boiler AFUE rating of 85 percent or better qualifies it for the Energy Star label, while a furnace requires a rating of at least 90 percent to receive an Energy Star label.

But before you buy a new heating appliance, consider low-cost maintenance and relatively inexpensive upgrades, which offer significant energy savings to anyone with a furnace, boiler or combination system.

Maintenance you can do yourself. Preventive maintenance is the best way to maximize the efficiency and life of your heating system. Simple things you can do include:

Keep any air registers, grills and radiators clean and clear. Furniture, drapes, dirt or other obstructions block heat.

If you have a steam boiler and there is noise coming from one of the radiators, or it isn’t producing heat, then you probably need to bleed trapped air from the line.

If you have a furnace, regularly clean or replace the air filter. Do this whenever you can see dust buildup, which may be once a month or more during the heating season. If the air handler (the blower fan) is also used for air conditioning, then service the filter throughout the year.

Clean the furnace blower motor and fan blades when you change the air filter. Only do this yourself if you’re completely sure you have shut off the electricity to the furnace. The fan is usually behind the air filter, but check your owner’s manual.

Check for soot, rust and corrosion in, on and around the furnace and on the floor surrounding it. Such signs indicate the system requires immediate service