The Foreclosure Life Raft (And How to Get Your Cast Away Business Back on the Mainland)

By Ryan Moehring

If you are reading this, congratulations are in order! You have managed to survive one of the worst housing crises in several generations—a crisis, many believe, is beginning to subside. If you are like most of your fellow survivors, you have likely managed to carry on by subsisting on an unwholesome diet of foreclosures, short sales and real estate owned properties (REOs).

I liken the situation to Tom Hanks in the movie Cast Away. In the film, Hanks’ character, a Federal Express employee named Chuck Nolan, is stranded on a deserted island after his plane crashes while flying over the South Pacific. Chuck too, resigns himself to a less than ideal diet of crabs, fish, and coconuts.

Chuck remains on the island for more than four years, eventually becoming remarkably adept at spear fishing and other island survival skills. He even befriends a fellow crash survivor, a volleyball he affectionately names Wilson. Chuck grows accustomed to island life, eventually accepting the fact that he will never be rescued. However, of the few things he was able to salvage from the plane crash, one constantly reminds him of his home and his life—a single, undelivered FedEx package.

The metaphor is not sophisticated, but it is well-timed. Many of us who work in the green real estate industry have been side tracked over the past 2+ years just trying to keep our real estate businesses alive and profitable. Unfortunately, in order to do this, many have not been able to focus on green properties. Now that the market is turning around in many locations, it is time to focus once again on delivering our package—our goal to green the real estate industry.

This refocusing effort need not cause a 180° shift in your business plan. Just as Chuck didn’t transition from a sushi and coconut diet right into a Big Mac his first day back in the states, foreclosures and bank-owned properties will likely continue to be a part of your real estate “diet” for some time to come. The question is can you somehow combine your necessity and your ideology to make money and make a difference?

The port town of St. Lucie, Florida provides a hopeful example. The town, which has the 10th highest foreclosure rate in the country, received more than $13.5 million dollars in federal stimulus money to purchase some of its 10,000+ foreclosed properties. The Mayor of the town has decided to use some of the money to retrofit the homes to make them more energy efficient before putting them back on the market for purchase by low-to-mid income, first-time homebuyers.

The ingenious plan provides economic stimulus in at least three ways: 1) it takes bad notes off banks’ balance sheets, thereby contributing to the “thawing” process of the nearly arctic credit market; 2) it puts affordable housing within reach of thousands of new homebuyers, which ensures long-term economic activity in St. Lucie communities; 3) it creates jobs for the companies that provide insulation, windows, and other energy efficient building services.

All of this green activity embeds itself into the community, making green an integral part of the city’s identity, and laying the groundwork for even more green activity in the future. The last time I checked the city of St. Lucie still needs licensed real estate professionals to help them sell these retrofitted properties. I imagine that holding a green designation like EcoBroker® might make the difference between landing these listings and spear fishing for dinner. Your city is probably working on a similar program, and if not, they would likely entertain the idea if a motivated professional like you pitched it to them. There is a world of possibilities—what is needed is a shift back to our pre-Cast Away, aggressive mentality that we are going to transform the industry, no matter the obstacles.

I understand, really I do. You’ve been stranded on a 100 acre island for a couple of years. You’ve been exposed to the elements. You’ve had to hunt for your own food. You’ve survived in ways you never thought you’d have to. You will be forever changed by what has happened to you, and your industry will certainly never be the same. You’ve had complex discussions with volleyballs about the meaning of life, for goodness sake.

You will undoubtedly have to eat a coconut every once in a while just to keep your belly full, but you are back on the mainland. Houses are selling again. Life is good. And you have a package to deliver.

Sources:
http://www.palmbeachpost.com/opinion/content/opinion/epaper/2009/04/26/a18a_swartzcol_0426.html
http://digg.com/business_finance/Greening_Foreclosures_Buy_a_Home_in_Detroit_for_40?FC=PRCS4
http://www.salon.com/mwt/feature/2009/04/11/real_estate/index.html
http://www.imdb.com/title/tt0162222/

Daniel Island Mortgage Becomes the Nation's First myEnergyLoan Local Provider

Submitted by Michelle Salater • March 18, 2009

Responding to the growing demand for a sustainable, local economy in Charleston and all of South Carolina, Daniel Island Mortgage has become the nation's first myEnergyLoan local provider.

CHARLESTON, SC - March 17, 2009-Committed to providing a new green mortgage product that builds value in homes, saves clients money, and facilitates a healthier environment and sustainable economy, Daniel Island Mortgage announces it is the nation's first myEnergyLoan local provider.

Daniel Island Mortgage is leading the way for Charleston and all of South Carolina to shift from a carbon-based economy to a sustainable economy. Teaming up with myEnergyLoan, the nation's top green mortgage program, Daniel Island Mortgage is well positioned to be the market leader in green financing throughout South Carolina and the nation.

myEnergyLoan provides a simple and reliable way to get closing-cost discounts and lower interest rates for energy-efficient homes and buildings. Unlike traditional loans, which are limited in size and scope, myEnergyLoan works with all property types and all loan types, allowing it to serve a much larger segment of the real estate market. The greener the project, the larger the energy-credit rebate back to the consumer.

All property owners, who are increasingly interested in building or renovating using energy-efficient features, now have a mortgage product that recognizes and rewards them for going green. Homeowners who choose green typically capture tremendous savings through lower energy bills while adding value to their homes and lowering their environmental impact.

"One of the most important aspects that led me to partner with myEnergyLoan is that, at its core, it is truly committed to supporting sustainable financing and green real estate," says Gary Harwyn, president of Daniel Island Mortgage. "It has long-standing ties to some of the top green building programs in the country, such as the U.S. Green Building Council, LEED, EcoBroker, Energy Star, and EarthCraft. Not many financial institutions or builders can offer these types of green credentials, and this is what makes myEnergyLoan more genuine and authentic in the eyes of builders and consumers."

"Continuing with our sustainable mission, we also want to try to circulate dollars back through our local providers and businesses. Local dollars are said to circulate about six times more through the economy than if you did business with a large bank or store, where much of that money essentially gets exported," says Harwyn.

Daniel Island Mortgage has already received tremendous support from notable green builders and developers in the Charleston metro area. Hunley Waters, Battery Island Row, and Mixson, to name a few, have all added Daniel Island Mortgage as the preferred lender for their respective sustainable developments here in Charleston. Those developments alone represent over $400 million in projected sustainable developments in the Charleston market.

Daniel Island Mortgage is also fielding calls every day from green developers and homeowners all across the state interested in finding out more about green financing options. "We are very proud to help serve this green market while providing real value and green financial leadership in the South Carolina economy," adds Harwyn.

About Daniel Island Mortgage:
Daniel Island Mortgage is a SC licensed mortgage broker serving the Charleston market and all of South Carolina. Recognized for exceptional service and superior mortgage rates since 2004, Daniel Island Mortgage specializes in a full range of residential and commercial mortgage products and is proud to promote a triple bottom line focusing on profitability, the environment, and the community. Their experienced, licensed mortgage brokers stay up-to-date with the latest market conditions, trends, and available programs, bringing clients closer than ever before to experience the ultimate personal mortgage service at the local level.

EcoBroker®, Patrick Canavan previews a built green home under construction. Vol 2.: Insulation

EcoBroker®, Patrick Canavan shows us interior and exterior insulation techniques in home construction.