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

2. © 2002, All Rights Reserved, The Hershman Group 12.3 2 Introducing the Participants Your Hosts The Attendees

3. © 2002, All Rights Reserved, The Hershman Group 12.3 3 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 

4. © 2002, All Rights Reserved, The Hershman Group 12.3 4 Why The Market Is Hot Population growth fueled by immigration Home prices are increasing Lower interest rates Diversified portfolio a key

5. © 2002, All Rights Reserved, The Hershman Group 12.3 5 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

6. © 2002, All Rights Reserved, The Hershman Group 12.3 6 Wealth Is Created Through Real Estate...

7. © 2002, All Rights Reserved, The Hershman Group 12.3 7 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?

8. © 2002, All Rights Reserved, The Hershman Group 12.3 8 Three Financial Reasons ****The Power of Leverage ****Rental Equivalency ****Inflation Hedging

9. © 2002, All Rights Reserved, The Hershman Group 12.3 9 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%

10. © 2002, All Rights Reserved, The Hershman Group 12.3 10 Rental Comparison Own Rent Monthly Payment $1,116 $ 850 Tax Deductible $ 983 Tax Savings @22.3% (220) After Tax Payment $ 896 Principal Reduction (45) Rental Comparison $ 851 $ 850

11. © 2002, All Rights Reserved, The Hershman Group 12.3 11 Inflation Hedging Own Rent Monthly Payment $1,116 $ 850 Inflation @4%Portion 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

12. © 2002, All Rights Reserved, The Hershman Group 12.3 12 Fannie Mae Survey Major obstacles to home ownership 51% Cash 44% Income 29% Job Security 25% Credit Record

13. © 2002, All Rights Reserved, The Hershman Group 12.3 13 Solution #1 Gift from a parent or other close relative--FHA/VA/Conventional

14. © 2002, All Rights Reserved, The Hershman Group 12.3 14 Solution # 2 Seller pays for closing costs FHA/VA/ Conventional

15. © 2002, All Rights Reserved, The Hershman Group 12.3 15 Solution #3 Low or No Down Payment Programs FHA/VA/Conventional

16. © 2002, All Rights Reserved, The Hershman Group 12.3 16 Solution #4 The Finishing Touches Monthly mortgage insurance Low closing cost programs (no points) Seconds from non-profits Borrowing (secured)

17. © 2002, All Rights Reserved, The Hershman Group 12.3 17 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

18. © 2002, All Rights Reserved, The Hershman Group 12.3 18 Moving Forward Homebuyers Financial Planner & Residence Analysis "Plan the action"

19. © 2002, All Rights Reserved, The Hershman Group 12.3 19 Why Do It Backwards? LOANFIRST  Approval before you shop Gives you confidence Eliminates last minute problems More negotiating power

20. © 2002, All Rights Reserved, The Hershman Group 12.3 20 The Time Is Now