Unlocking Hidden Value
description
Transcript of Unlocking Hidden Value
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