A little About Me

Mortgage One – Direct Lender/Banker/Broker

Me, Pre-Approval Specialist, and a Contract to Close Lady

We crank out anywhere between 6-15 Deals a month.

Number 1 – Why is Real Estate the Best Investment of All Time?

#1 - Leveraged Investment

25,000 to invest

Amazon – 25,000

Real Estate – 500,000

After 10% return – Return on cash is 50,000 while return on Stock is 2500 (200% vs 10%)

Do you understand how powerful that is?

Historically Speaking what is the average appreciation in Scottsdale? 4.5%

So if a 500,000 house appreciates 5% per year, on average, how much is it going up per year (I understand this will eventually compounds, so this is conservative), but it would be 22,500 per year… 90 Rate of return on Cash investment per year.

Tell me what other investment gives you that with the security of a primary residence in America?

#2 – this is a whole different class, but how to accumulate wealth

Buy the Primary

6 months liquid reserves so you don’t have to sell anything or charge up credit card debt

Max out retirement accounts (tax free, or tax deferred growth)

Invest in the stock market

75% - SPY

5% - QQQ

20% - 5-10 Favorite Stocks you use, trust, and believe they are essential

After 2M cash net worth, buy a vacation home

After 3M cash net worth, buy a commercial building for your business

***we have to change peoples lives, get over fear, and get them to entrust is in the biggest financial investment of their lives***

So AFTER WE GET THEM EXCITED ABOUT REAL ESTATE, AND THEY UNDERSTAND IN THEIR HEART AND THEIR HEAD, IT’S A GOOD INVESTMENT, HOW DO WE GET THEM PAST THEIR FEAR?

WHAT ARE THE TWO OBJECTIONS WE HAVE IN THIS MARKET, THERE ARE ONLY TWO….

STABILITY

AFFORDABILITY

THE BEST WAY TO FIGHT ANY OBJECTION, IS NOT WITH EMOTIONS (WHICH IS WHAT A LOT OF US DO), OR STORY TELLING, BECAUSE WE COME OFF AS A USED CAR SALESMAN, SLICK, IKKY VIBE.

THE SECRET IS DATA… LET ME GIVE YOU AN EXAMPLE….

CLIENT – I JUST CAN’T BELIEVE HOW EXPENSIVE HOMES ARE, I JUST CAN’T SEE THEM GOING UP, THERE HAS TO BE A CRASH AROUND THE CORNER AND I AM GOING TO WAIT AND SEE WHAT’S GOING TO HAPPEN.

COOL. TOTALLY UNDERSTAND, I’D WANT TO TIME THE MARKET AND GET A 25,000 DISCOUNT AS WELL.

I’M GOING TO BE HONEST WITH YOU… WAITING UNTIL NEXT YEAR IS GOING TO COST YOU 27,000 IN APPRECIATION ALONE. NOT EVEN INCLUDING THE RENT YOU ARE PAYING EVERY MONTH. I’M NOT SAYING THAT AS A GUESTIMATE, IT’S BASED ON FACTS.

HAVE YOU HEARD OF THE CASE SCHILLER REPORT?

IT IS THE BEST FOR TRACKING HOME PRICES BECAUSE IT INCLUDES CASH.

WHO GET’S THE BEST DEALS?

CASH BUYERS

THROUGH JUNE….

i. WE HAVE MADE UP THE ENTIRE 15% DROP FROM LAST YEAR

ii. WE HAVE SEEN AVERAGE APPRECITION OF .5% PER MONTH

iii. AND IT’S PROJECTING A 2023 PACE OF 5%

EVEN WITH THE MOST CONSERVATIVE PROJECTION, WITH THE AVERAGE PRICE BEING 450000 IN AZ, THAT IS 27000 PER YEAR.

ZILLOW AND CORE LOGIC ARE PROJECTING 10%, DOUBLE THAT!

FROM THE MOST RECENT REALTOR CONFIDENCE SURVEY (HIGHEST SINCE MAY 22)

JUST WENT FROM 3.0 TO 3.3 OFFERS PER HOME… IN 2020 WHEN IT WAS CRAZY IT WAS 25

% sold over list price rises from 31% to 33% (highest since jul 22)

Median DOM (days on market) Flat at 18, lowest since may 22)

% of homes sold that were on the market <1 month rises from 74% à 76% (highest since Aug 22)

EVEN MORE CRUSHING TO ANY PROSPECT OF A HOUSING BUST….

IN 2008, WE HAD BAD LOANS, TODAY WE HAVE BUYERS THAT ARE WELL QUALIFIED

40% OF ALL MORTGAGES IN AMERICA TODAY ARE FREE AND CLEAR

50% OF THEM HAVE 50% EQUITY OR MORE

AND 90% OF ALL MORTGAGES ARE AT 5.5% OR BELOW

LOAN DEFAULTS ARE AT A 20 YEAR LOW

AND ON TOP OF ALL OF THAT, WE HAVE 14M MORE HOUSEHOLDS THAN IN 2008 AND 3M LESS AVAILABLE HOMES ON THE MARKET!

THERE IS NOT GOING TO BE A CRASH, OR A FIRESALE… THERE IS NOT GOING TO BE A DEAL BECAUSE SUPPLY AND DEMAND ARE TOO FAR OUT OF WHACK TO MAKE UP FOR IT IN NEXT FEW YEARS.

WELL WHAT IF WE GO INTO A RECESSION, JESSE?

REAL ESTATE TYPICALLY GOES UP IN A RECESSION BECAUSE RATES GO DOWN AND DEMAND INCREASES

DOES ANYONE HAVE ANY FEAR OF STABILITY ANYMORE?

COOL.

AFFORDABILITY.

AS HARD AS IT IS TO AFFORD IN THIS MARKET WITH 7.0% RATES…. WHY IS IT GOING TO BE MORE EXPENSIVE TO WAIT FOR RATES TO COME DOWN?

SUPPLY AND DEMAND

50 PEOPLE OPEN HOUSES

5 MULTIPLE COUNTERS

SAY GOODBYE TO LOW DOWN PAYMENTS, CONTINGENT SALES

COST OF WAITING

WHAT IS YOUR RENT? IF WE TAKE THAT PLUS THE AVERAGE APPRECIATION IN ARIZONA (27000/YEAR) YOU ARE LOSING….

WE’VE BEEN SAYING THE SOLUTION FOR 2 YEARS NOW, AND THE PEOPLE THAT LISTENED ARE GOING TO MAKE A LOT OF MONEY.

MARRY THE HOUSE, DATE THE RATE,

BUT AS I SEE EYES ROLL, CLIENTS EYES ROLL AS WELL. WE HAVE TO PROVE IT TO THEM AND BE SOLUTIONS ORIENTED.

SO PRESENTING SOLUTIONS, WHERE PEOPLE THOUGHT THERE WAS NONE, IS THE KEY TO WINNING BUSINESS AND GAINING MARKET SHARE IN THIS MARKET

KNOW THE BASICS

i. RATE BUY DOWN – TEMPORARY

WE HAVE GREAT CALCULATORS

ii. RATE BUY DOWN – PERMANENT

iii. CLOSING COSTS PAID BY SELLER

iv. MI BUYOUTS

SALES TOPIC #1 - MANY BUYERS ARE PUTTING THEIR PLANS ON HOLD DUE TO HIGHER INTEREST RATES… HOWEVER, WORKING WITH THE RIGHT AGENT WILL SAVE BUYERS THOUSANDS OF DOLLARS IN CLOSING COSTS AND CAN STILL BRING DOWN THE MONTHLY PAYMENT

i. WHAT DOES A PREPARED, AND EDUCATED BORROWER PROVIDE IN YOUR NEGOTIATIONS…

3% EARNEST MONEY, 5 DAY INSPECTION, WAIVED LOAN CONTINGENCY, WAIVED APPRAISAL CONTINGENCY, CLOSE IN 21 DAYS, LOAN HAS BEEN FULLY UNDERWRITTEN AND GUARANTEED

PRE-APPROVAL, UW SUBMISSION WITH GUARANTEE TO FEEL COMFORTABLE WITH LC REMOVAL, GOING THROUGH WORST CASE VALUE AND KNOWING SOLUTIONS BEFORE TO GO IN WITHOUT APPRAISAL.

ii. COULD YOU BEAT SOMEONE NOT AS PREPARED THAT’S 10k HIGHER? 20K?

iii. MAKE THIS A BIG DEAL

SALES TOPIC #2 – YOU ARE COMPETING WITH SOMEONE ELSE, AND YOU NEED YOUR CLIENT TO GO UP 10,000 BUT HE’S PRICE AND PAYMENT SENSITIVE…. INCREASE SALES PRICE BY 20,000 AND GET HIM TO SAY YES!

i. BEFORE NEGOTIATION, BUYING HOUSE AT 400,000 WITH 3.5% DOWN AT 7.25% RATE

PAYMENT = 3283

ii. AFTER NEGOTIATION, BUYING THE HOUSE AT 420,000 WITH 10k CREDIT TO CLIENT TO BUY DOWN THE RATE TO 6.5% (DOWN PAYMENT INCREASES 700 DOLLARS)

PAYMENT = 3236

iii. IN GENERAL….

1000 AT 7.0% IS GOING TO COST THE CLIENT 6.65 / THOUSAND

SO 10000 WILL SAVE 66.5/MONTH

ON AVERAGE THE 10,000 WITH POINTS WILL SAVE 120/MONTH

SALES TOPIC #3 – SELL/CONSOLIDATE/BUY

i. HERE’S THE SCENARIO

ii. SOMEONE BOUGHT A HOUSE FOR 750,000 AND NOW IT’S WORTH 1,000,000 AND THEIR MORTGAGE IS 500,000.

iii. THEY ARE PAYING 3200/MONTH

iv. THEY WANT A 1.5M HOME TO UPGRADE THEIR FAMILY BUT DOUBLING THEIR MORTGAGE PAYMNT TO ABOUT 6500-7000 IS NOTHING THEY CAN THINK ABOUT AFFORDING.

v. BEYOND THAT, THEY ARE IN SUCH DEEP CREDIT CARD, STUDENT LOAN, AND CAR DEBT (200-300k THAT THEY HAVE 10,000 IN MIN PAYMENTS PER MONTH)

vi. IF YOU THINK THIS IS A RARE SITUATION, YOU ARE DEAD WRONG. COMSUMER DEBT WAS AT 17T IN MARCH, BEST IT’S EVEN WORSE AND THAT WAS A RECORD.

vii. SO IT’S JUST OUT OF THE QUESTION….

viii. SOLUTION….

SELL HOUSE, PAY OFF ALL DEBT, BUT 300,000 DOWN ON A 1.5m HOUSE AND BUY IT AT A 7% RATE

PAYMENT BEFORE – 13200 (DEBT OF 10K, MORTGAGE OF 3200)

PAYMENT AFTER – 7000 (SAVING THEM 6K PER MONTH WHILE DOUBLING THEIR MORTGAGE, DOUBLING THEIR RATE AND INCREASE THEIR HOME VALUE BY 50%)

THIS IS THE STUFF THAT MOVES THE NEEDLE IN YOUR BUSINESS.

ASSIGNMENT

ASHER WILL SEND THESE OUT, STUDY THEM AND INCORPORATE THEM

DO THE CALL TO ACTION BELOW SO YOU CAN SEE THAT ANY SALES ACTIVITY WILL PRODUCE RESULTS, THE ARTISTRY IS TO DO REALLY GOOD ONE’S AND DO THEM OFTEN!

CALL TO ACTION

SEND THIS EMAIL

MAKE A VIDEO, POST IT ON SOCIAL ABOUT THIS

EMAIL

I wanted to take a moment to address concerns some of you may have about the housing market, particularly in comparison to the market crash of 2008.

Firstly, it is important to note that the housing market in 2008 was significantly different from today's market. The crash was caused by a number of factors, including the widespread use of subprime mortgages, over-leveraged banks, and a lack of regulation. These factors do not exist in the same way today. I have included 2 articles that show just how low risk the type of capital leverage or mortgage environment is today. In short, nearly 45% of homes have over 50% equity and 37% of all homes are free and clear – this strong leverage position will prevent “fire sales” we saw in 2008.

Furthermore, the measures put in place by the government and financial institutions since the 2008 crash have helped to prevent a similar crisis from occurring. The housing market is being closely monitored, and there are now stricter lending standards and regulations in place to protect both buyers and sellers.

Additionally, the overall economy is in a much stronger position than it was in 2008, with unemployment rates at historic lows and consumer confidence remaining high.

In conclusion, it is unlikely that we will see a crash in home values similar to the one experienced in 2008. The housing market has changed significantly over the last 14 years, and the measures put in place to prevent another crash are working. Understand it is easy to just state these points without qualifying so I have included a deck that shows the following:

Rates always drop in weaker economies

We have a much larger population of buyers (household formation demographic)

We have a severe shortage of homes (which caused the massive increase in prices the last few years)

There is a lagging supply of new homes as housing starts are near all-time lows