{"id":12586,"date":"2010-07-03T09:16:01","date_gmt":"2010-07-03T16:16:01","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=12586"},"modified":"2010-07-03T09:35:16","modified_gmt":"2010-07-03T16:35:16","slug":"pace-solar-program-slows-chances-of-economic-recovery","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12586\/pace-solar-program-slows-chances-of-economic-recovery\/","title":{"rendered":"PACE Solar Program Slows Chances of Economic Recovery"},"content":{"rendered":"

Residential real estate finance is ill and getting worse.\u00a0 I cautioned that the elixir that got us into this mess should be removed<\/a> for a robust private market solution but the mix makers upped the dosage<\/a>.\u00a0 It’s gonna make us even more sick.<\/p>\n

Last year, I saw an opportunity to finance energy efficient improvements, specifically solar panels.\u00a0 My motives weren’t a political demonstration<\/a> but rooted in financial analysis.\u00a0 Often, an investment in a solar panels installation returns as much as 15% annually through cost savings.\u00a0 Prescient building contractors reworked business plans to meet the expected demand. The global warming religion<\/a> heightened awareness to self-produced energy systems and California consumers want in.\u00a0 The challenge is that little if any<\/em> home improvement capital exists in the mortgage market; that spelled opportunity for me.<\/p>\n

I taught some of these contractors how to structure, price, and make junior loans, to finance their work.\u00a0 Armed with my database of investors, I started a small secondary market for these “solar loans”.\u00a0 The contractor would make a loan, hire me to sell that loan to an investor, and pay me a\u00a0 fee for arranging that sale from the proceeds.\u00a0 The loan was cross-collateralized by the subject property and an assignation of tax credits<\/a> to the lender. The loans averaged $25,000 and I intended to build up a servicing portfolio, earning a fee to collect payments and remit them to the investors.<\/p>\n

What I didn’t realize was that I had a competitor, a competitor that had a lot more money and influence than I did.\u00a0 This competitor is able rewrite laws to its advantage, so that it had a first lien position, which is assumable by a purchasing homeowner.\u00a0 My loans were junior liens with a due-on-sale clause.\u00a0 That competitor is the PACE program<\/a>, armed with $150 million of Federal money and the borrowing power of states and municipalities.<\/p>\n

That’s a formidable foe for a small-town mortgage broker and his retired golf-buddy investors.\u00a0 Needless to say, I abandoned the idea last month.\u00a0 Today, there’s hope for my little venture.\u00a0 The PACE program forgot that the existing secondary mortgage market doesn’t take kindly to <\/a>Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Residential real estate finance is ill and getting worse.\u00a0 I cautioned that the elixir that got us into this mess should be removed for a robust private market solution but the mix makers upped the dosage.\u00a0 It’s gonna make us even more sick. Last year, I saw an opportunity to finance energy efficient improvements, specifically […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[379,26],"tags":[],"class_list":{"0":"post-12586","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-innovation","7":"category-lending","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3332,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3332\/organic-gardens-solar-and-public-transportation-oh-my\/","url_meta":{"origin":12586,"position":0},"title":"Organic Gardens, Solar and Public Transportation- Oh My!","author":"Stephanie Edwards-Musa","date":"July 8, 2008","format":false,"excerpt":"As Professionals in the Real Estate Industry we try and do everything to stay on top of our game.\u00a0 We attend classes to further our education and knowledge, we try out the latest and greatest Social Networking Platform to find out about new Techie stuff, but what about what the\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12105,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12105\/if-wind-and-solar-power-were-practical-entrepreneurs-would-invest-in-it-there-would-be-no-need-for-government-to-take-money-from-taxpayers-and-give-it-to-people-pushing-green-products\/","url_meta":{"origin":12586,"position":1},"title":"“If wind and solar power were practical, entrepreneurs would invest in it. There would be no need for government to take money from taxpayers and give it to people pushing green products.”","author":"Greg Swann","date":"May 29, 2010","format":false,"excerpt":"John Stossel on the phractured physics of \"green\" energy:Maybe the electric car is the next big thing? \"Electric cars are the next big thing, and they always will be.\" There have been impressive headlines about electric cars from my brilliant colleagues in the media. The Washington Post said, \"Prices on\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11095,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11095\/ipad-observation-3-if-your-baby-or-a-caveman-can-figure-out-how-to-use-the-ipad-the-user-interface-works\/","url_meta":{"origin":12586,"position":2},"title":"iPad observation #3: If your baby — or a caveman — can figure out how to use the iPad, the user-interface works","author":"Greg Swann","date":"January 31, 2010","format":false,"excerpt":"This is from an email exchange with Teri Lussier: Here is the computer for the rest of us: Imagine that civilization has collapsed. It's happened before. Now imagine a computer something like the iPad (but durable enough to have survived and solar-powered or whatever). The ideal user-interface could be put\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18571,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18571\/overnight-news-yesterday-the-chief-grievances-officer-became-ceo-of-the-biggest-money-in-hollywood\/","url_meta":{"origin":12586,"position":3},"title":"Overnight News: Yesterday, the Chief Grievances Officer became CEO of the biggest money in\u00a0Hollywood.","author":"Greg Swann","date":"October 21, 2021","format":false,"excerpt":"Who didn't see this coming? Netflix caved. Since George Floyd got sober, I've been predicting the advent of the new power center in all corporations, the Chief Grievances Officer. Yesterday, the CGO became de facto CEO of the biggest money in Hollywood. I'm thinking \"Admiral Rachel\" should start primping for\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2219,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2219\/bossy-visionaries-portland-and-how-to-ram-green-down-the-throat-of-an-uncooperative-market\/","url_meta":{"origin":12586,"position":4},"title":"Bossy Visionaries, Portland, and how to ram “Green” down the throat of an uncooperative market","author":"Jeff Kempe","date":"November 13, 2007","format":false,"excerpt":"The Bossy Visionary guide to power: 1.\u00a0Sell a crisis.\u00a0 It can be real, it can be almost real, it can be imaginary, but sell it apocalyptically.\u00a0 Over-population\/global famine has been an especially popular one, Paul Erlich having predicted it every five years since 1968 (but this time he\u2019s serious!), following\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8548,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8548\/news-from-the-right-side-of-the-number-line-graphene-a-possible-replacement-for-silicon-in-computer-chips-and-a-dvd-sized-storage-device-that-can-hold-more-than-a-thousand-dvds\/","url_meta":{"origin":12586,"position":5},"title":"News from the right side of the number line: Graphene, a possible replacement for silicon in computer chips, and a DVD-sized storage device that can hold more than a thousand DVDs","author":"Greg Swann","date":"May 21, 2009","format":false,"excerpt":"One of the paths to the singularity, and the one that is mostly readily plausible given the current state of physics, is nanotechnology. Here are two new nano-entities ready to break out of the laboratory. First, how would you like to store your entire movie collection on one DVD-sized disc?A\u2026","rel":"","context":"In "Egoism in Action"","block_context":{"text":"Egoism in Action","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/egoism-in-action\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=12586"}],"version-history":[{"count":10,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12586\/revisions"}],"predecessor-version":[{"id":12596,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12586\/revisions\/12596"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=12586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=12586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=12586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}