maximum profit real estate · 2016-03-31 · executive summary maximum profit real estate...
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MaximumProfitRealEstateExecutiveSummary
California
MaxProfitRealEstateExecutiveSummaryVersion/Update:Q-22016
Copyright©2016
www.mprecal.comExecutiveSummaryMaximumProfitRealEstate800-993-2254admin@mprecal.com
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™
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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.
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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.
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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/
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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$468,330
MarketFuture?
2016 Will2016bethenew2006?(whenmarketstartedweakening/decline)2018 Will2018bethenew2008?(whenmarketmarket‘crash’occurred)2021 Will2021bethenew2012?(fiveyearafterpeak)
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MarketStatisticsand“Trends”toMonitorØ AffordabilityØ PricesØ HistoricPrices
Ø DaysOnMarketØ InventoryØ MonthsOfInventory
Ø DealFallsThroughØ PricePerSFListedØ PricePerSFSold
MaxRPM=MaxProfitRealPriceMeasure
RPM’sShowTheCurrent,RecentAndEstimatedFutureMaxPriceRange.
SeeAllRPM’sandRPMCalculationExplanationsatwww.mprecal.com/freestuff
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CompletetheFollowing“ImportantExamples”toget“YourNumbers”
“FUTUREVALUE”LossEstimator:CaliforniaForYourHome&InvestmentProperty
2016to2021CaliforniaForecastDeclineof-44.8%
“SellvsHold”Analysis:California
CaliforniaMedianPriceHomevs“YourProperty”HighvsLowPriceSaleandGrossProfit/ROIEstimator
Example:371%Profitvsa–19%Loss
YourHome(s) *Example YourHome Investment#1
Investment#2
2016HomeValue$ $468,330 %DeclineEstimate -44.79% -44.79% -44.79% -44.79%
LossInValue$ -$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:
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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.
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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”
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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
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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
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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