How To Purchase A Home Using Someone Else’s Money Seminar Presentation

© 2002, All Rights Reserved, The Hershman Group Introducing the Participants Your Hosts The Attendees

© 2002, All Rights Reserved, The Hershman Group What We Will Cover Today Why this is a great time to buy 3 economic reasons to own Finding the cash to own Planning for your first home Make it easy--LOANFIRST 

© 2002, All Rights Reserved, The Hershman Group Why The Market Is Hot Population growth fueled by immigration Home prices are increasing Lower interest rates Diversified portfolio a key

© 2002, All Rights Reserved, The Hershman Group Fannie Mae Survey Security, permanence & control: 69% gave as reasons Owning a good investment: 78% Two-thirds would choose to work an extra decade to own Owning is truly the-- American Dream

© 2002, All Rights Reserved, The Hershman Group Wealth Is Created Through Real Estate...

© 2002, All Rights Reserved, The Hershman Group Ask This Question... Would you rather pay $975 a month for rent that goes totally down the drain? Or would you rather pay $975 a month to own a home...and have a savings account growing steadily each month?

© 2002, All Rights Reserved, The Hershman Group Three Financial Reasons ****The Power of Leverage ****Rental Equivalency ****Inflation Hedging

© 2002, All Rights Reserved, The Hershman Group The Power Of Leverage Home Savings Investment $ 10,000 $10,000 Total Asset $100,000 $10,000 Appreciation 4% 4% 10 Year Return $ 39,803 $ 4,800 Rate of Return 17% 4%

© 2002, All Rights Reserved, The Hershman Group Rental Comparison Own Rent Monthly Payment $1,116 $ 850 Tax Deductible $ 983 Tax (220) After Tax Payment $ 896 Principal Reduction (45) Rental Comparison $ 851 $ 850

© 2002, All Rights Reserved, The Hershman Group Inflation Hedging Own Rent Monthly Payment $1,116 $ 850 All Payment Year 10 $1,234 $1,258 Principal Reduction (120) N/A Pre Tax Year 10 $1,114 $1,258 After Tax Year 10 $ 805 $1,258

© 2002, All Rights Reserved, The Hershman Group Fannie Mae Survey Major obstacles to home ownership 51% Cash 44% Income 29% Job Security 25% Credit Record

© 2002, All Rights Reserved, The Hershman Group Solution #1 Gift from a parent or other close relative--FHA/VA/Conventional

© 2002, All Rights Reserved, The Hershman Group Solution # 2 Seller pays for closing costs FHA/VA/ Conventional

© 2002, All Rights Reserved, The Hershman Group Solution #3 Low or No Down Payment Programs FHA/VA/Conventional

© 2002, All Rights Reserved, The Hershman Group Solution #4 The Finishing Touches Monthly mortgage insurance Low closing cost programs (no points) Seconds from non-profits Borrowing (secured)

© 2002, All Rights Reserved, The Hershman Group Putting It All Together Typical FHA Sales Price $100,000$100,000 Down Payment 5,000 2,750 Closing Costs 4,000 3,000 Total Cash $9,000 $5,750 Seller Pays 0 2,750 Gift 0 3,000

© 2002, All Rights Reserved, The Hershman Group Moving Forward Homebuyers Financial Planner & Residence Analysis "Plan the action"

© 2002, All Rights Reserved, The Hershman Group Why Do It Backwards? LOANFIRST  Approval before you shop Gives you confidence Eliminates last minute problems More negotiating power

© 2002, All Rights Reserved, The Hershman Group The Time Is Now