unlocking hidden value a key to success in today’s market jim sahnger palm beach financial network
TRANSCRIPT
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
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
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
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
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
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
Why $1,000,000 Why $1,000,000 ChallengeChallenge
1. Fill the education gap to eliminate confusion
$8,000 Tax Credit
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