Unlocking Hidden Value A Key to Success in Today’s Market Jim Sahnger Palm Beach Financial Network.

Unlocking Hidden Unlocking Hidden ValueValue

Unlocking Hidden Unlocking Hidden ValueValue

A Key to Success in Today’s MarketA Key to Success in Today’s Market

Jim SahngerJim Sahnger

Palm Beach Financial NetworkPalm Beach Financial Network

About MeAbout Me

• Insert key points about you

About My CompanyAbout My Company

• Insert key points about your company

Easy Money with Low RatesEasy Money with Low Rates

Weak Weak ValueValue PropositionsPropositions

Inevitable RealityInevitable Reality

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STATE OF THE UNIONSTATE OF THE UNION

State of the UnionState of the Union

• ↓ ↓ 12% 12% • in 12 Months

(Nationally )

• ↓ ↓ 22.7% 22.7% • Since July 2006

Peak

GOODGOOD

BADBAD

Just RightJust Right

HOT

NOT

• Government• Fixed Rate• PMI• Full Doc World

• Jumbo• ARM’s• HELOC’s• Sub-Prime

Home Affordability Home Affordability Peaks!Peaks!

• Median Priced Home

• Median Family Income

• 2006 Payment 23.3%

• 2009 Payment 15.0%

• Most Affordable Since Index Created in 1970

Who Is Savior Here?Who Is Savior Here?

FIRST TIME HOMEBUYERSFIRST TIME HOMEBUYERS

FTHB ProfileFTHB Profile

30 Years Old30 Years Old

Down Payment - 4%Down Payment - 4%

$60,600 Family Income$60,600 Family Income

50% of the Market!!!50% of the Market!!!

How do we find them?How do we find them?

FTHB SeminarsFTHB Seminars

Work Place MarketingWork Place Marketing

Database MiningDatabase Mining

Rental CommunitiesRental Communities

A WORLD OF CHANGEA WORLD OF CHANGE

Get up to speedGet up to speed

Uncle Sam is trying to helpUncle Sam is trying to help

$8,000 Tax Credit&

FHA

The Paradox of NOW!The Paradox of NOW!

Sales Price $225,000 $213,750 $202,500

Loan Amount $217,125 $206,269 $195,413

Interest Rate 5.00% 5.50% 6.00%

P&I Payment $1,166 $1,171 $1,172

Highest prices BUT LOWEST

payment

Lowest prices BUT HIGHEST

payment

Unknown future…Unknown future…

Rates?Prices?Values?

Inventory?

?

Interest Rate ConundrumInterest Rate Conundrum

5/2007 - 5/2009 Interest Rates

4.00%

4.50%

5.00%

5.50%

6.00%

6.50%

7.00%

M-07

J-07 J-07 A-07

S-07

O-07

N-07

D-07

J-08 F-08

M-08

A-08

M-08

J-08 J-08 A-08

S-08

O-08

N-08

D-08

J-09 F-09

M-09

A-09

M-09

Month/Year

Inte

res

t R

ate

0

50000

100000

150000

200000

250000

300000

MB

S -

FE

D P

urc

ha

se

s

Rate MBS Purchases

Rates Below 5.75% Not Normal

Fed Announcement

November 25th, 2008

Dates to RememberDates to Remember

• November 30, 2009– FTHB Tax Credit

Last Day to Close

• December 31, 2009– Federal Reserve

Stops Buying MBS

WHAT CAN WE DO NOW?WHAT CAN WE DO NOW?

Unlock the valueUnlock the value

• Embrace FTHB• Partner Right• Market Right• Close More Homes

$1,000,000 C$1,000,000 CHALLENGEHALLENGECreated by:

Jim Sahnger & Rene Rodriguez

$1,000,000 Challenge!$1,000,000 Challenge!

Why $1,000,000 Why $1,000,000 ChallengeChallenge

1. Fill the education gap to eliminate confusion

$8,000 Tax Credit

2. Our way of “stimulating the economy”

Why $1,000,000 Why $1,000,000 ChallengeChallenge

3. Working together, we can do more

Why $1,000,000 Why $1,000,000 ChallengeChallenge

GOSPA GOSPA According to Rene RodriguezAccording to Rene Rodriguez

• Goal: $1,000,000 in tax credits to FTHB

• Objective: 125 FTHB sales (min purchase price - $80,000)

• Strategy: Partner with 5 Realtors – that are committed to helping 25 FTHB in the next 6 months

• Plans of Action:

1. FTHB Seminars (COOP Advertising)2. Direct/Email Marketing3. Database Mining4. Radio & TV (where applicable)

Everyone Wins!Everyone Wins!

1. Transactions: 125 2. Volume: $25,000,0003. Commission:

– Realtors @6% $1,500,0004. Communities: ↑Sales & Comps5. Concessions: Negotiate with Seller to Pays all

costs on FHA & USDA

5% Club5% Club

$84,000! to reinvest in our next initiative

• Examples:– A– B– C

Our ChallengeOur ChallengeTIME

DEADLINE

November 30th, 2009

TIME is running out!

Thank You!Thank You!

“Right now is the time to fix the next 10 years…”

-Jim Rohn