Maximum Profit Real Estate · 2016-03-31 · Executive Summary Maximum Profit Real Estate 800-993-2254 [email protected] Max Profit Strategy: Whether you are just starting out your

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MaximumProfitRealEstateExecutiveSummary

California

MaxProfitRealEstateExecutiveSummaryVersion/Update:Q-22016

Copyright©2016


AnIntroductionFromTheFounder:Helloandwelcome.Therearedecadesofacquiredinformationatourwebsitewww.maxprofitrealestate.comsothisExecutiveSummarywww.mprecal.com/ESisjustasnapshotofthatknowledge.ThisExecutiveSummaryiswrittensoyoumayreceive80%ofthebenefitwithjust20%ofthetimenormallyneededtoreviewthepertinentinformation.WehavecreatedVisualAidstohelpyouquicklyunderstandthecurrentmarket,whereitisheadedsoyoucanmakeinformeddecisionsthatbenefityouandyourfamily.SeeourMarketUpdates,MaxRPMTachometers,RawData,Graphs,WorksheetsandCheckliststomakesureyouutilizealltheresources.

Free Client Checklists

Market Updates

Sopleasereadoverthissummary,understandthe“KeyPoints”,reviewthe“StatsandFacts”(historicalvscurrent),completethe“FUTUREVALUE”,“SellvsHold”Calculationstemplate,the“HomeownerChecklist”and“InvestorChecklist”toget“TheNumbers”associatedwithyourscenario.

Property Value Calculator ExamplesThoseareBIGnumbersandifpropertyisaleveragedinvestmenttheyareLARGEpotentialprofitsorlosses!Itispivotaltoyoursuccesstounderstandthekeypoints,determinehowyourcircumstancesfitthecomingscenariosandworkwithprofessionalsawareoftheinformationandstrategiesbeingsharedwithyou.Withthekeypointsunderstood,the“StatsandFacts”trendsinmind,youcanuse“YourNumbers”tothendecideifyouwishtonotbenegativelyaffectedbythecomingrealestateandeconomicdownturn.Sadly,inlessthanhalfthetimeittakestowatchtheshow“60Minutes”,or,thetimemanyspendonSocialMediaeachday,fewwillcommittounderstandingthecriticalinformationanddecisionsthatcouldpositivelyaffecttheirfinancialfutureforyearsandgenerationstocome.Weworkwiththoseclientsattractedtoourmessage,seethebiggerpicture,decidedtoactandarecommittedtosuccess.So,afteryourreviewingthisinformation,wehopetohearfromyou.Chris ChrisMackeyFounderMaxProfitRealEstate™


MaximumProfitRealEstateExecutiveSummary

CaliforniaVersion/Update:Q-22016

TableofContents:

1. SummaryIntroduction2. MaxProfitStrategy3. KeyPoints4. StatsandFacts5. “FUTUREVALUE”&“SellvsHold”

6. YourNumbers7. MarketCrashes&FutureNetWorth8. MUSTDO’s&ClientChecklists9. OurServices10. Conclusion

Introduction:Weareatornearaturningpointintherealestatemarketwhichwillfoundationallyechowhatweexperiencedduringthe2006to2010declineandwilllikelybemagnifiedinscaleandseveritybyotherworldandfinancialevents.WewilldiscussfactorspresentwhichmaylessentheinitialblowbutifhumanbehaviorandmarketcyclesrepeatastheyhavedonethroughhistorythereWILLBEADECLINEthatwillimpacteveryoneandespeciallytheunprepared.Inmid2005wesensedtherewassomething‘wrong’withtherealestatemarketinsouthernCaliforniaandwereluckytorunacrossresourcesthateducatedusonthecomingmarketdecline.WequicklydisseminatedanddistributedthisCRITICALINFORMATIONtoourhundredsofclientsandthethousandswithinournetworksotheycouldtakeimmediateaction.WENOWSEEtheconditionssimilartothe2006CRASHpreparingtoHAPPENAGAINandpossiblybeingworsethistimebecauseofloominginterestrateincreasesCOMBINEDwithastockmarketbubblecouldcauseaneventunseeninthehistoryoftherealestatemarketintheUnitedStates.PropertimingofthemarketanddoingtheworkrequiredtoMaximizeSalePriceofapropertywillhavesignificantimpactonthefinancialwellbeingofthoseweworkwith.Notallourclientsfollowedouradvicein2006sosomeunnecessarilysufferedfinanciallybynotactingbutweNOWHOPEshowingyouthisinformation,backedbyourpreviousforecast&nowprovenstrategies,youcanmakethedecisionsthatbenefityouandyourfamilyforgenerationstocome.Ourgoalistoinformall,helpthosethataskandproactivelyrefineourstrategiestohelpourclientsMaximizeProfitfromtheirrealestateexperience.Andmostimportant...togetthisimportantMaxProfitstrategytotheFINANCIALLYFRAGILE...likeseniors,thoseapproachingretirement,fixedincomefolksandanyonerelyingontheequityintheirhometocoverimportantcosts(education,newbusiness,etc),beanavailableemergencyfund,allowforanearlyretirementorsupplementtheirretirementincome.Informationmustbeunderstoodanddecisionsmustbemadewellinadvancetoavoidstorieslikethe“CorvettetoWal-Mart”scenario.AsOURNAMEdenotes...ourgoalishelpyouachieveaMAXIMUMPROFITfromyourrealestateexperience.


MaxProfitStrategy:WhetheryouarejuststartingoutyourrealestateadventureorareaseasonedrealestateinvestorunderstandingthisinformationcanSaveorCostyouMILLIONSofdollarsoveryourlifetime.Sotoavoidextra-ordinarylossestheCaliforniaHomeownerandInvestorMUSTtimethepurchase(entry)andsale(exit)oftherealestatemarkettocoincidewiththenaturalHIGHandLOWswingofthemarket.

3VERYIMPORTANTPoints1.MarketConditionsAREChangingDoYourResearchSeehistoricalexamplesofhowthosechangeshaveaffectedhomeownersandinvestorsMonitortheCORRECTpredictiveindicatorsIfyouagreeMarketDeclineiscoming...howwillitaffectyou?2.TakeActionDetermineYour#’sforyourproperty(ies).FollowUsonSocialMediaforupdates,marketalertsandupdatedhousingnumberstocomparetoyourneighborhood.MakeaPlanActonthatPlanMaxProfitPlan=FollowOurProvenFivePointPlanforSuccess:1.GetFacts2.GetValue3.PrepareIt4.SellIt5.Profit!3.Whoshouldyoutellaboutthis?YourCPAandFinancialAdvisortogetthem‘onboard’withplanning.Businesspartnerstoplanfordecreaseorincreaseinbusiness.SetUpMastermindGrouptocreateopportunitiesofthecomingchanges.

CRITICALPOINT:

GiveExtraThoughtandSpecialAttentiontothosenearingretirementornowretired.Helpshepherdandprotectthoseunawareofthecomingchanges.Seniors,retired,nearingretirement,fixedincome,etc.


KeyPointstoConsider:1.MarketsFluctuateInMeasurableandPredictableCycles2.HumanBehaviorCauseTheseCyclesandtheyWILLRepeat3.LearntoObservetheLeadingIndicators,UnderstandCausationandPredictMarketCycles4.UnderstandmostRealEstatepurchasesandsalesarebasedonegoorwantsofthepartiesinvolvedvstheneedsandreality.Sodroptheego,theneedtobeRIGHTandworktowardstruthandworkingwiththosedesiringtobeCORRECTinsteadofRIGHT.5.ThereareaLOTofmovingpartsinaREdeal,manyunseendetailsthatifnotproperlycompletedcanpopupyearsafteratransaction,souseprovensuccessstrategies,experiencedteamsofprofessionalindividualsandcheckliststoassureallitemsarecomplete.6.GetaProfessionalAnalysis.PayforaFULLAnalysisthatincludesaMarketCycleSnapshottoseewhereyourpropertyispositionedinthecurrentmarketenvironment.7.SetorConfirmyourFinancialGoals,YourFamilyPlan,BusinessPlanthenbasedonmarketcyclepredictions,decideifowningmoreorlessrealestateisbeneficialtothosegoalsandplans.8.PutplanintoactionforBuying,HoldingorSellingRealEstate9.INFORMOtherssoyoucanhelpthemavoidfinancialpain,strugglessoyoucanbealwayssurroundedbyaCircleofSuccessvsFinanciallyDistressedindividuals,askingwhyyoudidnotINFORMthemoftheinformationyouheldandactedupon.10.SignUpforupdateswithallyourcontactinformationprovidedforSocialMediaupdates,emailupdatesandoutboundrecordedphonemessagessenttoyouwithcriticalinformation.

StatsandFacts:

YoumustKNOWTHENUMBERSinyourparticularareasoyouhavetheinformationrequiredtoMaxSaletheproperty.NationalstatisticscanbefoundatanumberofmajorrealestatewebsitesandgoodCaliforniastatsbrokendowninregional,countyandlargecitylevelarefoundathttp://www.car.org/marketdata/


CaliforniaMarketBackgroundFacts

Sincethe1970’sCaliforniaRealEstatePriceshaveincreasedfrom25,000forthe‘medianprice’hometoover$500,000atthetopofthemarketin2006whichequalsabouta$10,500permonthincreaseoverthat45-yearperiod.CaliforniamirroredNationalhomevaluesuntilthemid1970’swhenlarger‘marketswings’developed.Interestratesonaveragehavedecreasedoverthatperiodoftimewithahighinthe80’sofover17%andalowofnear0%since2009.

Historic“TopoftheMarket”Snapshots(Affordability)1989,2007and2016Estimate

Affordability% 1989 “TheGreatCrashof2006” 2016Estimate

17% *11% **15–20%

Notes:AllCalifornia(loweraffordability%=higherprices$)

*17%affordabilityishistoric“TopofMarket”,inMay200711%wasreachedduetolooselending

**15-20%basedonrisingpricesandinterestratesbutmarketmaynotreach17%thiscycleduetotighterlendingstandards,recentmemoriesof2006-2009dropand

possibleburstofstockbubblebeforemaximumaffordabilityisreached.

USandCaliforniaMarketFacts:2006-2016&Future

(ImportantDates&NumberstoKnow)

2006 HomePricesinUSAPeaked,February20062007 $594k,CaliforniaRealEstateHigh,May2007,High=$594,5302007 USAEconomicHigh,DowJonesHigh31October2007=14,1972008 LehmanBrothersfilesforbankruptcy15September20082009 USAEconomicLow,DowJonesLowFebruary2009=7,9452009 CaliforniaEconomicLow,May20092010 [email protected]%inFebruary20102012 $268k,CaliforniaRealEstateLow,2/2012Low=$268,8102015 CaliforniaMedianPriceHighof$493,510on15August20152016 CaliforniaMedianPriceinJanuarydown$25,180to$468,330

MarketFuture?

2016 Will2016bethenew2006?(whenmarketstartedweakening/decline)2018 Will2018bethenew2008?(whenmarketmarket‘crash’occurred)2021 Will2021bethenew2012?(fiveyearafterpeak)


MarketStatisticsand“Trends”toMonitorØ AffordabilityØ PricesØ HistoricPrices

Ø DaysOnMarketØ InventoryØ MonthsOfInventory

Ø DealFallsThroughØ PricePerSFListedØ PricePerSFSold

MaxRPM=MaxProfitRealPriceMeasure

RPM’sShowTheCurrent,RecentAndEstimatedFutureMaxPriceRange.

SeeAllRPM’sandRPMCalculationExplanationsatwww.mprecal.com/freestuff


CompletetheFollowing“ImportantExamples”toget“YourNumbers”

“FUTUREVALUE”LossEstimator:CaliforniaForYourHome&InvestmentProperty

2016to2021CaliforniaForecastDeclineof-44.8%

“SellvsHold”Analysis:California

CaliforniaMedianPriceHomevs“YourProperty”HighvsLowPriceSaleandGrossProfit/ROIEstimator

Example:371%Profitvsa–19%Loss

YourHome(s) *Example YourHome Investment#1

Investment#2

2016HomeValue$ $468,330 %DeclineEstimate -44.79% -44.79% -44.79% -44.79%

LossInValue$ -$209,765 - - -Future“Low”Value(2021

est) =$258,565 = = =

$LossPerYear $41,953

**LossInValue$ $209,765 ***AccumulatedLoss $209,765à $ $ $

Address/Notes:

YourDecision *ExampleSell

**ExampleHold

SellYourProperty

HoldYourProperty

2016HomeValue$ $468,330 n/a n/aFuture“Low”Value(2021est) n/a $258,565 n/a

***PurchasePrice -$268,810 -$268,810 -$ -$

= = = =****GrossProfit

(“HighPrice”orFutureValue–PP)=199,520 =-10,245

DownPayment(20%) /53,762 /53,762 *****ROI

(Returnor<-Loss>OnInvestment)=371% =-19%

NetResult BigWin BigLoss Address/Notes:


YoucanseefromtheImportantExamplesandcalculating“YourNumbers”

thatbuyingatthetopofamarketorsellingatthebottomofamarketisVERYCOSTLY.Sodon’tdoit!

NOW,PLEASETAKETHETIMETOCALCULATEYOURNUMBERS.

MarketCrashes&YourFutureNetWorth:APerspectiveCheck

TheRealEstateandEconomicCrashof2006evaporatedabout$6trillion($7trillionin2016dollars)inHouseholdWealth.ForCaliforniathatwasadropfrom145,000in2005tounder60,000in2011...thatisadecreaseinover85,000foreachhousehold!TheU.S.FamilyMedianNetWorthdroppedfrom$126,000in2006to$77,300in2010whichisa$48,700decreaseoverfouryears=12,175peryearor$1,014.58permonth!

Inthe2016to2012ExampletheCaliforniaPropertywentdownLost$209,765invalueandthehomeownerorinvestorthatputdown20%or$53,762losttheentiredepositandwas“upsidedown”$-10,245plusthecostofsale,maintenance,etc.sothispropertywouldlikelybeaforeclosureorshortsale.Thisexactscenarioisacontributortodownmarketcycleswhenanownerisforcedtosellbecauseofoneofthe3D’s(death,divorce,departure)oranyofthemanyotherreasonslikebusinessfailure,bankruptcy,unemployed,etc.Andoncethereisanew‘comparablesale’setatalowerpricethenthatstartsthecascadeofcircumstancesthatleadstoaprolonged‘downmarket’.WedonotpretendtoknowtheStockMarketbutWEKNOWtheREALESTATEMARKETandhowtoFORECASTPRICETRENDS!Sosavethe‘stockmarketcrash’questionforyourstockbroker/financialadvisor(notreallysincemosthaveNOCLUEaboutforecasting...mostsay“diversity,holdlongterm”)butunderstandthata“DoubleCrash”ofBOTHtheSTOCKMARKETandtheREALESTATEMARKETisalogicalpossibilityandmustbeaccountedforinyourplanning.


OurSuggested:MUSTTAKEAWAY&MUSTDO

5MUSTTAKEAWAY1.Decidehowyouwanttoprepareforthecomingmarketcrash2.Decideifyouareokwithyourpropertyreducing40%ormoreinvalue(like2006-2012again!).3.Ifyouwillnotbedirectlyaffected(everyonewill)thenWARNOTHERSthatcanbehurt.(Weareespeciallylookingtohelpthosenearingretirementorwhentheirpropertyisthemajorpartoftheirfinancialnetworth,seniors,etc.).4.Lookoverourwebsitetoseeourtrackrecordandseehowyoucanbenefitfromworkingwithus.5.Imaginenow...beingreadyforthenextmarketdecline,beingtheoneamongyourfamilyandfriendsthatsawitcoming,warnedothers,protectedlovedonesandmadeoutbetterthan90%oftherest!

1MUSTDOw/3Steps(please)(BeforeThePhoneRingsOrYouAreOtherwiseDistracted!)

#1MustDo:GetInTheInformationLoop!

1.*FollowUsonFacebook,Twitterwww.maxprofitrealestate.com/socialmedia2.Get“FreeInformationandUpdates”andaFreeMaxProfitEvaluationonpropertyyouownorareafiduciary(attorney,cpa,trustee,etc.)topersonorestatethatownsrealestate.3.**Confirmestablishedonourcontactlist.AfteryousubmityourinformationtousbySocialMediaorPropertyEvaluationthenaddwww.maxprofitrealestate.comtoyouremail‘safesenderlist’oraddadmin@www.maxprofitrealestate.comtoyourcontactsANDconfirmreceiptoftheemailifrequested.Note:

*FollowusBOTHonSocialMediaandWebsitetogetthelatestinformationandupdates.

**Noobligationandyoucanunsubscribe,un-followoroptoutatanytime.

Ifyouareoutoftimeandhavesignedupforupdatesand/oraPropertyEvaluation,thenwe’llbeintouchwithyou.IfyouneedtoSELLNOWthengetaFREEEVALUATIONandusetheFREEinformationprovidedtobestpositionthesaleofyourpropertyfortheMaximumProfit.SellNow=www.mprecal.com/sellnow

ClientChecklists

FindourFreeChecklistsatwww.mprecal.com/freestuffBelowisasimple“SellerChecklist”


MaxProfit/MaxSaleCLIENTCHECKLIST–BASICOVERVIEW

þ WHENCOMPLETE

��GETFACTS-DetermineMarketTrends � GETVALUE–‘YourNumbers”Estimates

EstimatedValues:Current$_______________Future$_______________ Category Current Average 1Year Trend Notes

Price ____ ____ ____ ____MonthsofInventory ____ ____ ____ ____ DaysOnMarket ____ ____ ____ ____ ListingToSalesRatio ____ ____ ____ ____ �

� PREPAREIT-YourPlan / MindsetCheck � HireanAgentorDIY?� FreeEvaluation–AskforIt! -www.maxprofitrealestate.com/freeevaluation� DetermineValues/CostsValue Method

$__________AVM AutomaticValuationModel

$__________CMA ComparativeMarketAnalysis

$__________AV AppraisalValue

$__________FMV FairMarketValue(“asis”)

$__________ARV AfterRepairValue

$__________LP ListingPrice

$-_________ RepairCosts

� SELLIT!PricingDone,Pre-MarketChecklist,DisclosuresChecklist,NegotiationChecklist

� EscrowTimelinesandChecklist� ClosingChecklist � PROFIT! -AfterClosingChecklist

-CopyofDisclosuresSafePlace,TaxStrategies,

StartOffwithaMaxProfitPropertyEvaluation

http://www.maxprofitrealestate.com/maxevaluation.html


OurServices:

Wecreatedourwebsitetoinformthepublicabouttherealestatemarkethistory,currenttrendsandpossiblefuturechangessotheymayaddtotheirRealEstateSuccessPlan.WeprovidemanythousandsofdollarsworthofresearchandanalysisforFREEsoindividualsthatwanttoavoidthecomingmarketdeclinecanchoosenottoparticipateinit. Our5StepPlanforSuccess:

1.GetFacts2.GetValue3.PrepareIt4.SellIt5.Profit!

SomeofWhatWeDo…TrackingTrends Evaluations Consultations

WeOfferFREEandVIPPROPERTYEVALUATIONS/CONSULTATIONS

MaxProfitPropertyEvaluations

SELLNOWwww.mprecal.com/sellnowFreeorMaxProfitPropertyEvaluationwww.mprecal.com/mpe

ContactUswww.mprecal.com/contact

MaxProfitConsultations


ExecutiveSummaryConclusion

ThereisTONSofinformationoutthere….!!!Wefunnelinformationandforecastsfromthebestintheindustrytopresentyoutheinformationsoyoucandecidewhatinformationtorelyontosetyourfinancialcourse.RealEstateAffectsABSOLUTELYEVERYONEbecauseofit’slongreachintomanyindustrieslikeconstruction,maintenance,sales,financingandthemomentumofthoseaffectthecostsofmaterials,labor,money/lending,etc.Andwhenthemarketisgoingup...unemploymentisdown,taxrevenues(city,stateandfederal)areup,consumptionisupandnewlycreatedequityinpropertyisusedtostartnewbusinessesbypullingequitydirectlyfrompropertyorbyinvestmentsinbondsorthestockmarketwiththeadditionaldisposableincomepresent.Inadecliningmarket...theoppositeistrueandsinceCaliforniahasgreater‘marketswings’thanmostotherstateswhenthemarketgoesdownhereitgoesdownevenmoreasapercentageoftotalprice.SavvyinvestorsknowthisandtakefullbenefitfromthehighsandlowsofCaliforniaRealEstate.ThecomingdeclineWILLBELIKENOPREVIOUSdeclinebecausewehaveNEVERbeeninapositionofhighpricesandlowinterestratesbefore.ManyVERYEXPERIENCEDinvestorgroupswetrackarenotplanningto1031exchangeintodifferentstatesorotherrealestaterelatedinvestmentsliketheydidin2005-2006...theyareinsteadlookingforDIFFERENTINVESTMENTVEHICLEStoenterastheyexitatthetopofthismarketcycle.Moreonthisatourwebsiteandsincethisisacomplexanddevelopingtopicwewillkeepyouupdatedonitthroughourwebsiteandsocialmedia...soSignUpandstaytuned!www.mprecal.com/socialAND...whetheryouworkwithadifferentcompanyorTheExpertsatMaxProfitbesuretoMaximizeyourprofitsbytakingadvantageofALLtheTAXADVANTAGESliketheALLIMPORTANT“2Year,$250/500k”exemptionthatyoucanrepeateverytwoyears!(seedescriptionbelowanddetailsin“Profit”tab)Whynotearnover$500,000taxfreeeverytwoyearsormarketcycleifyoucan?Checkoutallthebackgrounddetailsbehindtheinformationpresentedhereandnotes/referencesforthetables,charts,graphsandmarketforecastatourwebsitewww.maxprofitrealestate.comYourpropertytype,location,condition,etc.willdetermineWHENistheBESTTIMEtoSELLandwhatREPAIRSorUPGRADESwillhelpearntheMAXPROFITforyou.IfyouarereadytoSELLNOWgotowww.mprecal.com/sellnowIfyouwantaFreeorMaxProfitPropertyEvaluationgotowww.mprecal.com/mpeOrtoContactUswithaquestionorcommentgotowww.mprecal.com/contactSignupforoursocialmediaupdateswww.mprecal.com/socialWeHopeYouMaximizeYourRealEstateExperience.MaxProfitRE

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Maximum Profit Real Estate · 2016-03-31 · Executive Summary Maximum Profit Real Estate 800-993-2254 [email protected] Max Profit Strategy: Whether you are just starting out your