The Proven Strategy

1. The Proven Strategy Why Real Marketing LLC Licensed Professionals?

2. Education History • Prior to 2000 The Federal Reserve • Interest Rates Ranged from 9% - 20% • Minimum Down Payment Expected • Credit Score to be Above 620 (The Fair, Isaac & Co (FICO) • 2000-2007 The Federal Reserve • Pre-Approval Loan Process Introduced • In 2000 Interest Rates dropped to 7% (Lowest in 40 years) and Continued to Drop • Credit Score Rating were lowered nearly 100 points below 620 (The Fair, Isaac & Co (FICO) • Zero Down Payment introduced • Appraisal Short Form (2055) used over historical Long Form (1004), (AKA - Drive-by Appraisal) • Unrealistic Real Estate Values (The Balloon) • Real Estate is at it’s Peak in 2006 (Early 2007)

3. Education History • 2007-2008 The Federal Reserve • Foreclosures on the Rise (Nearly 5x) • The Bubble Bursts • Stock Market Crashes • Unemployment Rises Above 10% • Governmental Bailouts = Housing Reforms

4. Education Governmental Regulations / Amendments • Truth In Lending Act (TILA) • Originated in May 29,1968 to Protect Consumers in Credit Transactions • Clear Disclosure of Costs and Terms • Protected the consumer for the types of loans 30 years ago Since 1968 there have been numerous Amendments to TILA

5. Education Governmental Regulations / Amendments Example: • RESPA - Real Estate Settlement Procedures Act • Enacted in 1974 by the U.S. Dept. of Housing and Urban Development (HUD). • RESPA is about clarifying closing costs and real estate settlement procedures. • To eliminate illegal activity such as kickbacks and referral fees • Regulates Affiliated Business Arrangements (AfBA) • Example: When a real estate broker has a 25% ownership in a title insurance company and refers business to that company for her real estate transactions, this is an AfBA.

6. Education Governmental Regulations / Amendments Example: • Home Ownership and Equity Protection Act (HOEPA) • 1994 • Impacted “HOEPA loans” only • Prohibits Equity Stripping (Skimming) from Residential Mortgage loans • Promotes Fair Dealing for the Lending on Money Times changed and loan options changed More amendments are needed…

7. Education Governmental Regulations / Amendments Present: • Housing and Economic Recovery Act (HERA) • July 30, 2008 • Laws to the Lenders for the Bailout Money • The Regulating of Lenders

8. Education Governmental Regulations / Amendments • Secure and Fair Enforcement Act - S.A.F.E. Act (TILA ) • Enacted July 30, 2008 • Mortgage Licensing for every state to have laws and regulations • Enhance consumer protection • Enhances compliance • Licensing process for Non Federal Regulated Loan originators: • A criminal history background check. • At least 20 hours of education prior to licensure. • Passing an examination prior to licensure. • A net worth or surety bond or equivalent. • Annual renewal plus 8 hours of continuing education

9. Education Governmental Regulations / Amendments • Regulation Z • Amended on July 30,2008 • Loans/Credit > $25,000 or that Secure Real Property or Dwellings • Full Disclosure About Terms & Costs • Right of Rescission (Rescinding of Contract) • Advertising Disclosure Requirements

10. Education Governmental Regulations / Amendments • Mortgage Disclosure Improvement Act (MDIA) • Enacted in July 30, 2008 • Creditors wait seven (7) business days after they provide the early disclosures • Creditors provide new disclosures with a revised annual percentage rate (APR) • Any changes of ARP of the loan delays loan for 3 days

11. Education Governmental Regulations / Amendments • Home Valuation Code of Conduct (HVCC) • Effective May 1, 2009 • Affects ALL Mortgages Sold to Fannie Mae or Freddie Mac • Removes Conflicts of Interests of Interested Parties (Self Dealing) • Enhances Appraiser Independence to ensure the Real Valuesof the property • Protects the seller of the mortgages of bad/risky loans

12. List Real Marketing LLC – Support • The Internet – “Go Green” • Certified Appraisal -HVCC Compliant (Only Realtor in Wisconsin!!) • Certified HUD Trainer • Realtors’ Association (MLS) • Largest Available Eye-catching Yard Sign • Will Cooperate with ALL other Licensed Brokers • Photographer to capture each property • Available for consultation or field questions • Fastest response time • ALL AT 2.9% - SAVING YOU THOUSANDS!!

13. List Online Visibility • Multiple Listing Service (MLS) / Realtor.com • Nation wide listing • Listed Property tailored to each individual property • Specific listing information for buyers, brokers and real estate salespeople • Homefinder.com (Affiliate Newspaper) • Listed Property tailored to each individual property • Targets local leads and sends email notification • Networks with over 130 online newspapers • > 3.2 million property listings for consumers to search • RmsData.com • Listed Property tailored to each individual property • Specific listing information for buyers, brokers and real estate salespeople • Viewers see local homes and properties

14. Price Certified Appraisal vs. Certified Market Analysis (CMA) Certified Appraisal • Will Stand In Court • HVCC Compliant • True Value of Property • Listed too high = Stagnancy • Highest Success Rate! CMA • No Authority in Court • Inconsistent • Can place false hope • Stagnancy or $ Lost • Greater Failure Rate

15. Negotiate Wisconsin Licensed Salesperson • Real Marketing LLC – L.P. - Realization • Negotiating starts with sellers, buyers and cooperating sales people • Always ready to write an Offer to Purchase on the Spot • Triggering terms are used with sellers, buyers and cooperating sales people • Use the Home Warranty to aid in the Sale • Networking - Promotes Flexibility, Innovation, and Speed

16. Sell Wisconsin Licensed Salesperson • Real Marketing LLC – L.P. - Realization • Order and shop rates for title insurance • Follow offer to purchase contingencies for seller and buyer • Receive loan commitments then install sold sign • Guide you through the final walk-through inspection • Be there when you close on your new property • Assist buyer and seller in transfer of electric, gas, and water service transfer • Congratulate & Celebrate!

17. Questions?

18. References CNNMoney (1999) The perks of pre-approval; Retrieved on January 10, 2010 from http://money.cnn.com/1999/09/05/home_auto/q_preapprovedloans/ The Federal Reserve (2008); Press Release – Regulation Z; Retrieved on January 10, 2010 from http://www.federalreserve.gov/newsevents/press/bcreg/20090508a.htm The Washington Post (2001); Zero-Down Option Opens New Doors; Feb 17, 2001; Retrieved on January 10, 2010 from http://pqasb.pqarchiver.com/washingtonpost/access/68730976.html?dids=68730976:68730976&FMT=ABS&FMTS=ABS:FT&type=current&date=Feb+17%2C+2001&author=&pub=The+Washington+Post&desc=Zero-Down+Option+Opens+New+Doors&pqatl=google The Washington Post (2001); Zero-Down Mortgages Are Up and Coming; Sept 16, 2000; Retrieved on January 10, 2010 from http://pqasb.pqarchiver.com/washingtonpost/access/60461052.html?dids=60461052:60461052&FMT=ABS&FMTS=ABS:FT&type=current&date=Sep+16%2C+2000&author=Kenneth+R.+Harney&pub=The+Washington+Post&desc=Zero-Down+Mortgages+Are+Up+and+Coming&pqatl=google Financial WEB (2009) Truth-in-Lending Act (TILA) - Real Estate Settlement Procedures Act (RESPA); retrieved on January 22, 2010 from http://www.finweb.com/mortgage/tila-respa.html Housing and Economic Recovery Act of 2008 (HERA) – An Act – Retrieved on January 22, from http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h3221enr.txt.pdf