The document provides a detailed agenda for a real estate investment presentation, including topics such as retirement planning, investment strategies, and the benefits of investing in real estate. It outlines how to build wealth through property equity, discusses mortgage tools, and emphasizes the importance of planning for retirement income. Key points include the potential returns from real estate investments, alternative investment strategies, and practical tips for successful property investment.

1. Welcome & Thanks For Coming! Tonight’s Agenda 6:00 – 6:15 Arrival & Eat Extreme Pizza  6:15 – 7:15 Investing in Real Estate 7:15 – 7:25 Questions & Answers 7:25 – 7:30 Drawing for Weekend Getaway *In an effort to conserve trees, we did not print off the presentation. However, should you want a copy, we will be happy to email it to you. Just let Brian, Sara or Charlie know.

2. Investment Property Plan Investing in Real Estate Take control of your Retirement Plan

3. What does “ retirement ” mean to you? What is your definition of “retirement”?

5. What is the Dream??

6. Quiet Retreat??

7. RETIRED?? THESAURUS STATES~

8. retired - no longer active in your work or profession inactive - not engaged in full-time work; "inactive reserve" ; "an inactive member of the department“ retired - (of a ship) withdrawn from active service; "the ship was placed out of service after the war" out of service ship - a vessel that carries passengers or freight out of commission - not available for service retired - discharged as too old for use or work; especially with a pension

9. What is it going to take? What will it take for you to quit working? How much cash flow every month? How much CASH in the Bank? What kind of return on your investment?

10. What is the Magic Number? Example - $1,000,000 x 5% interest = $50,000 $50,000 per year is $4,166 per month Will that get you by in 10, 20, 30 years?

11. How do we save a Million Dollars? How do we save up $1,000,000? $1,000,000 divided by 30 years to save the cash = $33,333 per year of cash savings You say, “Well my bank pays me compound interest” Let’s look at savings and investing plans.

12. Savings Calculator Starting with $1,000 and depositing $1,000 per month over 44 years and 6 months at a rate of 4% = $1,002,061 How is that for a savings plan? How can we afford to pay $1,000 per month into our Savings Plan?

13. What about my Social Security? The United States Federal Government is $8,339,346,916,430.96 Dollars in Debt!! As of 1/23/09 = That figure is TEN TRILLION Dollars!! Would someone please be so kind as to read this figure out loud???

14. Social Security?? Please refer yourself to the Social Security website at: www.ssa.gov My research for my own age born in 1961 at the retirement age of 67 years young will be a whopping…….$2140.00 per month.

15. So we decide on the Savings Plan The National average rate of SAVINGS in America today is a NEGITIVE – 1%

16. What does that mean? If you make $50,000 per year you are spending all of your take home income plus an additional $500 per year. You earned $50,000 and Spent $50,500!

17. So are Savings Plans the answer? Can we really save enough money every month to make it to our savings goal?

18. Nix the “Savings Plan” Good call! Let’s invest all of our personal investments in the STOCK MARKET!!

19. THE STOCK MARKET How predictable is this? Legalized Gambling??? Who makes all the money??

20. The Stock Market What a great system, you pay to get in and you pay to get out!!! You pay a commission to purchase and you pay a commission to sell your own asset! Please reference the article “Hedge Funds”

21. Stock Market Commissions In 2004 the top paid “Hedge Fund” manager was Mr. Edward S. Lamert of ESL Investments. According to Alpha Magazine he was paid $1 Billion in compensation!

22. Historical Average of the Stock Market The US Stock Market has produced a historical average for investors of 12%. To what extent will you risk your retirement? How did you survive the market crash of 2008?

23. So how do we take control of our money?

24. How do we meet our goals of retirement? Is there a plan out there to reach your goal?

25. Is there a Plan that is: Constant Predictable Accountable Self Managed Attainable

26. Investment Properties How can that be any different than any other form of Investing?

27. The Commercial Break Sara Bastian – Professional Realtor Sara has the experience and the expertise to assist you in reaching your goals. She will work with you to design a personalized plan to reach your retirement goals!

28. The Investment Plan Most Buyers purchase their first home and live in it a few years and then BAM!! They have EQUITY and decide to sell and buy a BIGGER HOUSE!!

29. The Simple Math Buy a home for $150,000 Gain (simple math) 5% appreciation per year $7,500 per year for 5 years = $37,500 5 years later house is now worth = $187,500

30. Now we have EQUITY! So now in 5 years our clients have made $37,500 in their investment. So our clients decide to sell their home. Subtract 8% for expenses. $37,500 - $15,000 = $22,500 Profit

31. Our Buyers keep moving every 5 years Over the next five moves one every 5 years Our buyers accumulate between $120,000 and $150,000 in equity in there home. Great investment……..Right?

32. 5 Move ups later….. Our Buyers have gained equity and put down $150,000 in their Dream Home. Now our Buyers own their “Retirement Home”

33. The Dream Home After 5 “move ups” our Dream Home is a newly purchased $450,000 home. Less $150,000 down payment and we have a new loan of $300,000 30 years after the purchase of our first home.

34. The “Dream Home” Now after 5 home moves in 30 years and a new mortgage for $300,000 and a new mortgage payment of an estimated $2150. How are we going to “RETIRE” now? Now our house payment equals our Social Security monthly income payment. For only 30 more years of payments!!

35. So what MUST we do different? Use the power of the mortgage tools available to you and your clients. Purchase each “Move-Up” home with a 15 year fixed rate loan, and keep the property Live in each newly purchased home as an Owner Occupant home for 5 years. After 5 years, buy the next home and convert the first home into a RENTAL.

36. How can I Qualify for a 15 year Mortgage? If our clients can qualify for a home with a selling price of $150,000 they can spend the same amount per month and buy a home for $125,000. Same comparable house payment!

37. 5 Years Later……the move up So 5 years goes by and it is time for our clients to do the “move-up”….. Who you gonna call? Sara Bastian

38. Now we are “Landlords” Our first mortgage now has a renter in the home making payments against a loan with a 10 year remaining loan balance. Now we buy the next home, our “move-up”. We purchase this home with another 15 year fixed rate home loan – with 95% financing.

39. The Equity Builder So the first mortgage now has 10 years remaining on the loan balance. At what point in the life of a mortgage does the bulk of the Loan get paid off? That is RIGHT the last 10 years!!

40. Has anyone ever offered to make retirement payments into your 401K plan for you? Do you know what the principle payment is on the 61 st mortgage payment? On our example loan starting at a balance of $125,000, the first rental payment now has $570 of principle reduction and a loan balance of $95,000.

41. Sample Math Formula 5 house purchases @ $200,000 each equals total assets of $1,000,000 Over a 35 year period of time ALL 5 houses will be FREE and CLEAR- No Loans!! Now your Renters have PAID OFF your personal saving plan for you.

42. Sample Math…..Continues We now have 5 homes completely paid off. 4 Rental properties and one home we live in. Average Rental income of $1,250 per month Provides monthly income of $5,000!!

43. Plan Summary I now own 5 houses that I purchased with 95% financing After 35 Years I own all 5 houses Free and Clear – No Mortgages – No Loan Balance And my Renters are paying me $5,000 per month.

44. Are you kidding me?? $1,000,000 worth of Real Estate $ 50,000 Dollars invested up front $5,000 in MONTHLY INCOME This is a 10% per month ROI!!

45. Other Styles of Investing Cash Investing 401K / Roth IRA Investing Short Term Investing – Fix & Flip 30 Year Investing

46. Home Buyer Marketing

47. Now may I retire? By all means PLEASE DO!!

48. Sara’s Tips for Investing

49. You Make Your Money When You… BUY

50. Know Your Exit Strategy BEFORE Purchasing

51. Consider Who Your Renter is BEFORE Purchasing Section 8 Families – with children? Pets? Corporate Rentals Out of the Box Renters

52. Anytime You Buy a Home, Consider the Pros & Cons of SELLING It What Sells in Colorado Springs?

53. Location, Location, Location Area of town Close to work, lifestyle North/South Facing Near Parks, Hospitals, Shopping? School Districts Mountain Views Condition of Home ‘Newer’ Homes West Side – Will Always Be Popular (but will most likely always be more expensive

54. What Starts the Foreclosure Process? Technically the Foreclosure Process starts with the filing of the Notice of Elections & Demands (NED) Ends with the Auction Date Pre-foreclosure Foreclosed NED Sold at Auction

55. What Is a Short Sell? Owing More on the Home Than What it is Worth Pre-foreclosure Typically Sold ‘As-is, Where Is’ Can Take 3-6 Months to Close Need Seller’s approval & Lender(s)’ approval

56. What is a Foreclosure? A Home that has already gone through the foreclosure process – typically owned by a bank or governmental institution Own addendums & unique procedures to purchase the home Can typically close in the ‘normal’ timeframe of 2 - 6 weeks Negotiate only with institution (no homeowner involved)

57. Do Your Homework… Crunch Those Numbers… Does the home Cash Flow?

58. Do Your Homework… Know the cost of fixing / replacing items PRIOR to purchasing Build a team of experts Venders (handymen, plumbers, HVAC, flooring) Taxes – CPA / Accountant Real Estate Lawyer Realtor Mortgage Lender

59. Websites to Add to Your ‘Favorites’ Know the Values for Your Area / Location Home Buyer Marketing Website www.Zillow.com (Be Careful – Not Always Accurate!) El Paso County Assessor Land.elpasoco.com (no www) Pikes Peak Regional Building Department www.pprbd.org VA Foreclosures www.ocwen.com

60. Websites to Add to Your ‘Favorites’ FHA Foreclosures www.mcbreo.com Property Foreclosure Search www.elpasopublictrustee.com

61. McGinnis Property Management Why, What, & How

62. Owner’s Personality Owner’s Location Owner’s Available Time Owner’s Legal Knowledge Owner’s Business Skills Owner’s Maintenance Knowledge REASONS FOR USING A PM

63. Advertising Showing Home Applications Credit Check Leasing Maintenance Supervision Rent Collection Pay Bills Accounting Statements Disburse Owner’s Funds Evictions WHAT A PM DOES

64. Not older than 10-12 years Maintenance Direct Cost Off the Market Cost Newer styling 4 Bedroom – More demand Clean Neighborhood Rent Sweet Spot is $1,000 to $1,200 Will it Cash Flow ? $150,000 to $200,000 HOW TO PICK A PROPERTY (Opinion)

65. Questions??