1. The Equity Well
Presented by Robert Ratimorszky
GSF Mortgage

2. Expanding Your Business
 According to Jay Abraham (corporate advisor to
Microsoft, Merrill Lynch and Century 21), there are
only 3 ways to grow your business
• Increase your number of clients
• Increase your average sale per client
• Increase the number of times your clients
return and buy again.

3. Increase Your Average Sale
 Presenting your clients with unrealized
opportunities is what identifies YOU as
the expert, and their trusted advisor.

4. Client’s Mortgage Mentality
 The traditional “Rules” of
homeownership
• Take out the smallest
mortgage you can afford
• Pay it down whenever you
have extra cash
• Pay it off as soon as
possible.
• Don’t involve your advisor
 Why does this “Rule”
exist?
 Is this sound advice?

5. Client’s Mortgage Mentality
 View their equity as a “savings
account”
 Perceive it as easily accessible
 Understand their mortgage as a
“loan against their house”

6. Net Result

7. Today’s Equity Truths
Job Crisis
Gainfully
Employed
Poor HealthGood Health
Unexpected DebtLow Debt Load
Difficult to access
when:
Easy to access when:
 If your clients have sudden health issues, lose their
job, or have some other sudden crisis, accessing this
equity can be expensive or impossible.
 In other words, when they need it the most!

8. Dead Equity
 The rate of return of
home equity, under the
best of situations is 0%
 If the housing market
experiences even a
slight pullback, that rate
of return turns to the
negative.
 How hard would you
have to work to find your
clients a better return on
investment than that?
+
0
-

9. The Equity Well Vision
 The days of mortgage-burning parties are over.
 Having an offsetting
asset that earns more
than their mortgage costs
enables your clients to
outperform investors with
no mortgage debt.

10. The Equity Well vs. Traditional Thinking
Cash
Reserves
Car Debt
Credit Card
Debt
Liquidity
Home Equity
Traditional
Better

11. The Equity Well Timeline
Fund
Payment
Bucket`
Refinance
to access
additional equity
Home
appreciates
over time
Liberate a
large quantity
of income
Fund safer
investments
with an actual ROI

12. Step Two: Payment Bucket
 That equity is placed in a “Payment Bucket”
–An easily accessible savings account from
which their mortgage payment is automatically
deducted.
–Under ideal situations, this can remove the
burden of paying their mortgage payment for 2
years.
 If there is some “leftover” equity to be realigned, it would
be best distributed based on their individual goals.
–Reduction of “Bad Debt”
–Investment property
These options either create additional sources of income, or
liberate existing income previously bound to service debts.

13. Step Three: Liberated Income
 The income that was previously locked up in
funding the mortgage payment is now liberated,
an effective pay raise of tens of thousands of
dollars per year for your client.
 Let’s look at the numbers:
Average Family with an income of $70,000
Net pay of ~$4100 per month
Liberate $1000 of that income previously servicing the mortgage
Over two years, this family would have an additional $24,000
diversified among multiple higher yielding and safer investments.

14. Step Four: Liberated Income
Reallocation
 You are now able to
conservatively
reallocate this
Liberated Income
– Retirement / College
Funding
– Disability Insurance
– Etc..

15. Action Steps
 Calculate the Impact.
– If you could free up tens of thousands in additional
investable income for your clients, what would that
mean to your bottom line?
– What would that mean for your client?
 Formulate a plan.
– Together we can identify clients who have
dangerously unbalanced assets
– Coordinate our marketing efforts
 Execute.