Michael Cuevas Buyer and Seller Systemology

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Michael Cuevas Buyer and Seller Systemology

  1. 1. A New Look To Real Estate… Seller Systemology MY LISTING PRESENTATION INSERT COMPANY NAME HERE
  2. 2. What is EXIT Realty? EXIT Realty's Roots EXIT Realty Corp. International opened for business in Toronto, Canada on September 3, 1996 and in record time, EXIT has become the fastest growing full- service real estate franchisor in North America. The exclusive EXIT Formula is the reason for our phenomenal growth. The EXIT Formula is Real Estate Re-invented. For the first time ever, the concept of residuals taken from both the insurance business and the music industry has been introduced to the Real Estate industry. Residuals are revolutionizing the Real Estate Industry fostering teaching, training and coaching and creating profitability and financial returns that have been unheard of in years gone by. Steve Morris, EXIT Realty's Founder and Chairman, has been referred to as the best recruiting sales manager in North America. He has managed, owned and operated some of the largest Real Estate offices in the world. Exit Realty Redefined is an independent franchise who is extremely technologically advanced in real estate marketing and systems.
  3. 3. Mike Cuevas and Marcie Schmidt have worked together for near a decade! Mike has always ranked in the top 1% of Realtors throughout the Chicagoland area up until 2009 where Mike took more of a back seat and began running his team, Aspire Properties. In 2010 Aspire did near 60 million ion closed sales and over 225 closed transactions! Mike soon branched out to Exit Realty and also extended that into the Dupage County markets. Mike is a big fan on marketing. When marketing your property not too many agents are going to be more aggressive in technology and marketing your property than Mike. Mike has also taught short sales and agent marketing across the country. REALTOR® Profile Kates Evil Twin Rosario Dolando)
  4. 4. I Am Referral Based  I want your lifelong business  I want your referrals  I want you to be 120% satisfied with my service  My duty is to you
  5. 5. The Power OF A TEAM Marketing Coordinator- EXIT Realty Redefined fully employs a marketing coordinator entirely focused on marketing your listing. The MC’s job is to properly position and market your property to placed online in just about every search site you can imagine. Transaction Coordinator-EXIT Realty Redefined employs a full time transaction coordinator to assist managing your file after we find a buyer. Their job is to make sure dates are met per contract guidelines as well as be an additional resource for you. Realtor-Our job is to focus on the showing and coordination of contracts. My fiduciary is to get you the best possible terms and price possible. I will handle all contract negotiations and scheduling of showings. I am your advocate and will be your trusted advisor.
  6. 6. The Housing Market Is HOT Right NOW! This is a “Real” jump in sales and prices because it is NOT being caused by a “Home Buyers Tax Credit” like last time.
  7. 7. WHYIs The Housing Market HOT? On September 13th, 2012 The Federal Reserve Announced That They Would Be Spending $40 BILLION Per Month To Boost The Economy This Forced Mortgage Rates Down
  8. 8. The $40 Billion Fed Money Has Kept Interest Rates Low 9/13/12 Was The Day The Fed Announced They Would Start Spending $40 Billion A Month
  9. 9. When the interest rates are low buyers have more buying power
  10. 10. Example Of How Buying Power Changes Based On Interest Rates Loan Amount: $200,000 Interest Rate: 4.65% Payment: $1,031.27 *This payment is ONLY $1.99 more than the one to the right! Loan Amount: $225,000 Interest Rate: 3.65% Payment: $1,029.28 Vs. LARGER Home For Same Payment*SMALLER Home For Same Payment*
  11. 11. See How Lower Interest Rates Affects ALL Price Ranges! Loan Amount Payment At 3.65% Payment At 4.65% Payment Difference Additional Borrowing Power (With Payment Difference At 3.65% Interest Rate) $100,000 $457.46 $515.64 $58.18 $12,717.31 $250,000 $1,143.65 $1,289.09 $145.44 $31,792.12 $500,000 $2,287.30 $2,578.18 $290.88 $63,580.55 $750,000 $3,430.95 $3,867.28 $436.33 $95,373.01 $1,000,000 $4,574.60 $5,156.37 $581.77 $127,163.29 $1,500,000 $6,861.89 $7,734.55 $872.66 $190,746.02 $2,500,000 $11,436.49 $12,890.92 $1,454.43 $317,909.31 $5,000,000 $22,872.98 $25,781.84 $2,908.86 $635,818. 62 $7,500,000 $34,309.47 $38,672.76 $4,363.29 $953,727.93 $10,000,000 $45,745.96 $51,563.68 $5,817.72 $1,271,637.24
  12. 12. But What Happens If The Fed STOPS Spending The $40 Billion Per Month To Keep Boosting The Economy?
  13. 13. Interest Rates Will Most Likely Go Up Quickly!
  14. 14. The $40 Billion A Month Fed Stimulus Is Most Likely Going To End Soon!
  15. 15. Some Feel It Was Just Used As An Election Gimmick!
  16. 16. Trump warned that the Fed’s $40 billion a month mortgage-backed security buying program would lead to inflation. “It’s going to be very, very unfortunate in the form of [higher] interest rates and some very severe things happening later on with the economy,” said Trump. Source: http://www.cnbc.com/id/49071985/Trump_QE3_Artificial_but_Rich_Will_Love_It
  17. 17. "The Fed's money creation and federal backing for 90% of mortgage loans are what's keeping the housing market Some Say The Fed Is “what's keeping the housing market alive.” Source: http://finance.yahoo.com/blogs/breakout/don-t-fooled-fed-stimulus-sign-dysfunction-not-131844591.html
  18. 18. Don’t Wait For The Fed’s $40 Billion A Month To End Right NOW Is The Time To Sell!
  19. 19. Here’s Why NOW Is The Time To Sell!
  20. 20. Buyers Have Fewer Homes To Choose From because home inventory is at the lowest level since the early '00s.
  21. 21. Buyers ARE Getting Off The Fence RIGHT NOW Because Pending Sales Rose 5.2% In October Source: http://www.bloomberg.com/news/2012-11-29/pending-sales-of-existing-u-s-homes-increased-5-2-in-october.html
  22. 22. Home Prices Have Leveled Off
  23. 23. Why I Would List My House RIGHT NOW Rather Than Waiting Until Spring?  That's what everyone else does, wait for spring.  As a result home inventory skyrockets after the new year.  When buyers have more homes to choose from your chances of selling your home greatly decreases.  Plus buyers who buy in the spring are shopping right NOW!
  24. 24. Every Summer Home Inventory Skyrockets As A Result of Everyone Listing Their Home In The Spring Take a look at the spikes of inventory after the first of the year!
  25. 25. Print Advertising has long been gone. The truth is that many larger agencies will simply tell you that they will place an ad of your home in the Sunday paper and it will get exposure to millions of potential buyers. The truth is that it is 2013 and that home buyers do not look in the paper to purchase a property. Less than 2% of home buyers found their property via print advertising. The internet has forever changed the way buyers and seller search and sell properties. At EXIT, we understand where to put the marketing dollars in order to get the highest returns and exposure for your property. Therefore, it’s the Internet is where the majority of our marketing dollars and efforts are spent. The Real Truth On Print Advertising
  26. 26. “Redefined” Real Estate Marketing Plan
  27. 27. ONLINE is where it’s at…
  28. 28. Step 1: Take Pictures & Videos
  29. 29. For illustrative purposes. Varies by broker and region. Technology Syndicate to YOUTUBE
  30. 30. Share on Social Media Social Media has increased tremendously and our in-house marketing department makes sure to post new listings on the respective Realtor’s Facebook page announcing to the new listing to that agents reach
  31. 31. Step 2: Online Media Placement & Positioning
  32. 32. Enhanced Package For illustrative purposes. Varies by broker and region.
  33. 33. Internet Advertising For illustrative purposes. Varies by broker and region. Homes.com
  34. 34. Trulia.Com Enhanced
  35. 35. Zillow.com
  36. 36. For illustrative purposes. Varies by broker and region. Step 3: Install Signage
  37. 37. For illustrative purposes. Varies by broker and region. Direct Mail/Email/ Brochures The only form of print advertising that we do concentrate on is direct mail and email. Sometimes your neighbor might be the best marketer for your home since they know the area and may know someone looking to move into it. They are always a walking advertisement. We do send a Just Listed Postcard to local neighbors at the beginning of the listing all driving them to the website your property is featured on. While this may not have a high success rate of selling your property I still like to get the word out because you never know. We will also send a direct e-mail last out to our database which is 10,000 people. This will go on our listing sheets and be distributed amongst the office as well. Step 4: Send local area a JUST LISTED Card
  38. 38. . For illustrative purposes. Varies by broker and region. Multiple Listing Service One of the most important additions to the Real Estate Industry was the creation of the MLS. This shows the real estate world your property is on the market. Included in this is the use of a virtual tour so that prospects are able to see what the property looks like on the inside. It is a proven fact that when virtual tour is applied, that it greatly increases the odds of selling your property. 69% of home buyers found their homes through the use of a buyer’s agent so this is an essential part of the marketing arsenal. It is very important at how the property is positioned on the MLS to attract agents to bring their clients. Positioning it Correctly! • All fields filled out • Focus on selling points • Features Step 5: List it on MLS
  39. 39. Step 6: Create the BUZZ • Host Open House 2nd weekend after on market. • Allow for advertising of open house • Broker Open Incentives?
  40. 40. For illustrative purposes. Varies by broker and region. Keep You Updated I will keep you personally updated on all showing and activities of your home. There will be a line of open communication between you and I at all times. I will also follow up with agents who bring their clients by to get feedback. By being persistent with agents after showings can sometimes gets them to further push your property onto their client. Learn what the market tells you and adjust accordingly! FeedbackStep 7: Adjust Accordingly
  41. 41. For illustrative purposes. Varies by broker and region. Selling Your Home “Force Marketing” An un-standard 5% commission of the selling price will be applied when using “Force Marketing” to sell your home”. By all industry standards the typical rate goes for 6%. “Force Marketing” gives you the complete arsenal of integrated marketing solutions necessary to sell your home in today’s competitive market place. The best part about it is that you literally get more for less: More marketing, 2 agents vs. 1, and a stress free transaction. The breakdown consists of the following: -2.5% payable to cooperating broker -2.5% payable to Exit Realty -included in the 2.5% are all costs of marketing your home (MLS fee, print advertising, use of hot line number, and etc.). *If I sell your home without having to offer a cooperating commission to any agent I will knock off 1% of your charge. Selling & Buying As an incentive and token of appreciation for the business you have given me, special incentives have been created to ensure that we have given you 100% customer satisfaction. If you have decided to list your home with Exit Realty and also buy with us as well, I will pick up some of the costs of “doing business” for you. When listing your home I will list for a 4% commission including all advertising costs. The breakdown consists of the following: -2.5% payable to cooperating broker -1.5% payable to Exit Realty *If I sell your home without having to pay out a cooperating broker then the total commission structure is reduced to 3.5%. Rate Structure
  42. 42. Pricing Study
  43. 43. Strategically pricing your home to get it sold for the most money in the least amount of time Asking Price vs. Selling Price Price too low and you lose the value. Price too high and you lose the buyers.
  44. 44. Pricing correctly helps you strike a deal when there is more competition for your home. Critical Weeks When Listed
  45. 45. The 1st two weeks on the market is when you will receive the most showings Pricing vs. Potential Buyers
  46. 46. •“Don’t change a thing Mike, you did a great job. Thanks!” J. Yonan •“Mike you have definitely gone above and beyond what most agents do. We thank you and look forward to using you again in the future! Thanks!” Brian M. •“Mike went above the call of duty in caring for and selling our condo. Because we were out of state, he frequently went to the condo to make sure all was well. His real estate expertise and easy accessibility reassured us that our condo was in good hands. We would not hesitate to recommend Mike to Our friends and family” B. Roesler Testimonials
  47. 47. Seller Presentation, Seller’s Systems, Seller Marketing Systems
  48. 48. Seller Systems
  49. 49. Step 1-Ordering Brownie Updating Database
  50. 50. Step2- Order Signage
  51. 51. Step #3- Get Photos/Paperwork/Videos Call George at 312- 320-8274 $75/shot Includes as many still photos as you like & video
  52. 52. Step #3 cont- Working With Marketing Admin
  53. 53. Step 3-Done For You Online Syndication
  54. 54. Step 3:Forward All Marketing Links To Your Client For Brownie Points
  55. 55. Step 4: Get Your Marketing Flyer From Admin
  56. 56. Step 5: “You Tube” Video Syndication
  57. 57. Step 6: Share on Facebook/LinkedIn
  58. 58. Step 7-GET BUYER AND SELL  Showing Solutions  Assistant  Simplify the way its shown  lockbox
  59. 59. Seller Transactional Contract Systems
  60. 60. Utility Turn off/on reminder/M ortgage Clear To Close Send few weeks prior to close
  61. 61. Testimonial Requests Send post closing
  62. 62. Send Post Closing 12xs a year
  63. 63. Final Step-Update and put in database
  64. 64. Working With Buyer Leads  The largest motivators for doing all of that marketing are seller satisfaction and exposure in addition to buyer lead generation  Converting Buyer Leads and Scripting  Set the appointment  Do NOT SHOW STRANGERS HOMES
  65. 65. Your Guide To The Home-Buying Process
  66. 66. What is EXIT Realty? EXIT Realty's Roots EXIT Realty Corp. International opened for business in Toronto, Canada on September 3, 1996 and in record time, EXIT has become the fastest growing full-service real estate franchisor in North America. The exclusive EXIT Formula is the reason for our phenomenal growth. The EXIT Formula is Real Estate Re-invented. For the first time ever, the concept of residuals taken from both the insurance business and the music industry has been introduced to the Real Estate industry. Residuals are revolutionizing the Real Estate Industry fostering teaching, training and coaching and creating profitability and financial returns that have been unheard of in years gone by. Steve Morris, EXIT Realty's Founder and Chairman, has been referred to as the best recruiting sales manager in North America. He has managed, owned and operated some of the largest Real Estate offices in the world.
  67. 67. Mike Cuevas and Marcie Schmidt have worked together for near a decade! Mike has always ranked in the top 1% of Realtors throughout the Chicagoland area up until 2009 where Mike took more of a back seat and began running his team, Aspire Properties. In 2010 Aspire did near 60 million ion closed sales and over 225 closed transactions! Mike soon branched out to Exit Realty and also extended that into the Dupage County markets. Mike is a big fan on marketing. When marketing your property not too many agents are going to be more aggressive in technology and marketing your property than Mike. Mike has also taught short sales and agent marketing across the country. REALTOR® Profile Kates Evil Twin Rosario Dolando)
  68. 68. I Am Referral Based I want your lifelong business I want your referrals I want you to be 120% satisfied with my service My duty is to you
  69. 69. The Home Buying Process from Start to Finish Choose a Real Estate Agent: Search for someone who is a good listener and who keeps your best interests in mind. Obtain Pre-Approval for Loan: Speak with several mortgage brokers and compare rates. They want your business, so don’t be intimidated, you’re the customer. Ask about the current mortgage rates, closing fees, and different mortgage options/products. Property Search: Begin to look for properties in your area of interest with the guidance of your Realtor. Submitting an Offer: Once you find a home you want to purchase you will submit your OFFER. The Real Estate Agent’s job is to get you the RIGHT PLACE, for the RIGHT PRICE. I will prepare the contract and negotiate the deal. As your agent, I will show you comparable sales so a fair offer is made. Deposit Initial Earnest Money with Listing Agent.
  70. 70. Hire an Attorney: Once an offer has been accepted, it’s time to retain Legal Counsel. If you don’t already have a Real Estate Attorney I can refer you to ours. Home Inspection: I only use licensed professional Home Inspectors. Problems are usually not apparent to the naked, untrained eye. A qualified and trained Home Inspector’s job is to identify any issues regarding the condition of the property. During the first 5 business days of your contract you will have the Attorney Approval Period. If any serious problems are found by the Home Inspector or Attorney this is the time to address these concerns. At this stage you can negotiate who will fix the problem. This is considered a counter offer and would be presented by the Attorney. If an agreement is not made between Buyer and Seller then in this stage the contract can be legally cancelled. The Home Buying Process from Start to Finish (cont.)
  71. 71. Earnest Money: Per your contract you will increase the amount of your earnest money at this point. Homeowners Insurance: Before closing you will be required to obtain Homeowners Insurance. Final Walk-Through: We will conduct a final Walk-Through of the property 24 hours before you close. Determine Monies Needed At Closing: We will estimate your total closing costs and you will bring these monies in a Certified Check to closing made out to yourself. A lot of times the amount is unknown until the morning of closing so you will bring an estimated amount. To determine the estimated amount we will consult with your attorney and your lender. Any excess monies brought to closing will be cut back to you at closing. Close on the Property and Move-In The Home Buying Process from Start to Finish (cont.)
  72. 72. Why Work With A Real Estate Agent When Buying? My Services are FREE to you, and will NOT Cost you a Penny: I am compensated by the seller of the home, NOT the buyer. • A Realtor Can Help You Understand the Home Buying Process: There will be many different contracts, forms, and addendum's that you will need to sign. A Realtor will make sense of these for you. The process can be somewhat of a complicated process to those unfamiliar to purchasing a home. • A Realtor Can Help You Determine Your Purchasing Power: By directing you towards mortgage brokers, you get a better sense of what fits your budget.
  73. 73. Why Work With A Real Estate Agent When Buying? I Save You Time and Energy!!! Looking for a house can be a full time job. There is a lot of research to be done and I will do all of that for you. I research properties, their surrounding neighborhoods and features, I set up appointments with other agents to view homes, and I report back to you. All you have to do is choose the home you like. A Realtor can Help Negotiate: Sometimes negotiating can be intimidating, but know that a seller’s ultimate goal is to sell the house. This works towards your advantage. I will help to negotiate prices, and make sure that you are putting in a proper offer. Your Time is Valuable as well as A Realtors Time: If I do not help you find the home that you are looking for, then I do not eat. It’s that simple! This means that I have no time to slack off. I will work efficiently, and with your best interests in mind to help you find the right home. Ultimately, one day you will call us to sell your home and we want to be able to successfully do that, when the time is right.
  74. 74. Breakdown of your Mortgage Payment PRINCIPAL The amount of money you borrow. Each month, you pay back a portion of that principal. Over time, interest becomes a smaller part of your monthly mortgage and more of your payment goes towards reducing the principal you owe. •INTEREST The cost of borrowing money. Usually expressed as an annual percentage of the loan amount. Example 6%. •PROPERTY TAXES Taxes you pay to local governments usually charged as a percentage of your property value. Your lender usually collects the taxes through your monthly payments. The amount of tax will vary by where your property is located. This process is also known as escrowing wish may not always be required but recommended.
  75. 75. Breakdown of your Mortgage Payment (cont.) PROPERTY INSURANCE: An insurance policy that protects you from Financial Losses on your property as a result of Fire, Flooding, etc… PRIVATE MORTGAGE INSURANCE (PMI): An insurance policy for down payments of less than 20% of the cost of the home. This allows the mortgage lender to recover losses if the borrower fails to fully repay the loan. PMI makes it possible to buy a home with a low down payment. You can also avoid PMI by breaking your loan up into 2 loans. For example: 1st loan for 80% and 2nd for 10% vs. one loan for 90% and paying the PMI.
  76. 76. Interest Paid & Principle Paid Graphs Ex. 30-Year Fixed Mortgage for $250,000 at 6% Interest
  77. 77. Buyers Triangle
  78. 78. Closing Costs Title Fees Attorney Fees Home Inspection City Transfer Tax Lender Fees Appraisal Pre-Paid Interest
  79. 79. Buyer System Checklist
  80. 80. Utility Turn off/on reminder/M ortgage Clear To Close Send few weeks prior to close
  81. 81. Testimonial Requests Send post closing
  82. 82. Send Post Closing 12xs a year
  83. 83. Final Step-Update and put in database
  84. 84. Tying It All Together
  85. 85. #1 Total Recap REFERRAL ARMY MARKETING  Direct mail 23 x’s a year  Direct Video E-mail 23 x’s a year  All of your real estate related social media posts(covered by George) 3 x’s a month= 36 times a year!  YOU ARE CONTACTING AND MARKETING YOUR SPHERE 82 TIMES A YEAR!!!!  DO YOU THINK YOU CAN GENERATE SOME REFERRALS WITH THAT?
  86. 86. #2 Create Buyer & Seller Systemology
  87. 87. #3 Creating Your Online Profiles
  88. 88. #4-Create Social Media Systems
  89. 89. The EXIT Opportunity 10% – Sponsoring Residual! 7% – Retirement Residual! 5% – Beneficiary Residual!
  90. 90. SPONSORING 10% – Single-Level Sponsoring Residual! 7% – Retirement Residual! 5% – Beneficiary Residual! Unique Benefits: 1. Everyone has a VESTED INTEREST in the growth of EXIT. 2. As the new recruit’s sales production improves, the residual bonus IMPROVES to the sponsor! 3. UNLIMITED sponsoring across the continent. 4. Residuals are received by the sponsor for as long as the new recruit stays and produces business with EXIT. EXIT is a Single-Level System For instance: if John brings in Mary and Mary brings in Bill, then John has nothing to do with Bill because he didn’t bring him in. QUESTION: What if John sponsored in more people like Mary? What if he brought in three a year for the next five years? What would his benefits then be? ANSWER: $105,000 in residuals If John brings in Mary and she generates $70,000 gross per year, then John receives $7,000 in residual bonuses paid out as her transactions close. So, if she produces at this level for 10 years, he would receive $70,000 in bonuses.
  91. 91. 1 Agent who “sponsors” 2 new agents per year Both of those agents produce at an average of $50,000 Gross Commissions per year production($4,000,000 in annual production) who may utilize the AGENT REDEFINED SYSTEM if need be. ___________________________________________________ ______ =$10,000 residuals per year 10 years later averaging 2 agents a year would be 20 agents. If each agent is an average agent at $50,000 a year =$100,000 in residual income!

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