Complete Confusion What Existing Home Sales

Complete Confusion?

What? !? Existing Home Sales Up 7. 6% Wall Street Journal – 9/23/2010 “The report was the second this week giving a sign of stability for the housing sector. ” Existing Home Sales Down 19% Fund Strategy – 9/23/2010 “Home sales have been sub-par and trying to recover. ”

Is this really the right time to invest in real estate? Don’t take my word for it…see what these trusted sources say!

The Wall Street Journal “Enough with the doom and gloom about homeownership. ”– WSJ 9/16/2010 1. You can get a good deal. 2. Mortgages are cheap. 3. You can save on taxes. 4. It will be yours. 5. You’ll get a better home. 6. It offers some inflation protection. 7. It’s risk capital. 8. It’s forced savings. 9. There is a lot to choose from. 10. Sooner or later, the market will clear. Wall Street Journal 9/16/2010

Karl Case of Case Shiller A Dream House After All “It means having a solid and fairly safe long-term investment that is coupled with the satisfaction of owning the house they live in. That dream is still alive…For people with a realistic version of the American Dream, buying a house now can make a lot of sense. ” New York Times 9/1/2010

70% Say Time to Buy is Now Fannie Mae: National Housing Survey 70% of respondents think it is a good time to buy a house (of which 36% think it is a very good time to buy), up six points from January. This is also four points higher than the 2003 survey – well before home prices peaked – when 66 % said it was a good time. Fannie Mae 9/2010

U. S. News and World Report 1. Buy a home The combination of low rates and falling real estate prices make for a perfect time to buy a home. Particularly for first time buyers, there may never be a better time to take the plunge into homeownership than over the next year. U. S. News and World Report - The Money Blog 11/4/2010

CNN Money. com “Do your retirement plans call for moving to a house near the beach or a cabin in the mountains? If you can afford another mortgage payment, you may want to start your search now, while rates are in your favor and prices are depressed. ” CNN Money. com 11/2/2010

“If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home. ” – John Paulson 9/27/2010

Mortgage Rates – 30 year fixed Federal Reserve

Mortgage Rates – 30 year fixed NAR Projections 5. 8% MBA Projections 5. 4% National Association of Realtors, Mortgage Bankers Association 10/2010

Cost vs. Price

Impact of Rates on Payment

December is the New

Home Price Expectation Survey TODAY Source: KCM 11/2010 2011 2012 2013 2014 2015 Macro Market

Home Price Expectation Survey % Cumulative Price Change from Year End 2009 Macro Market Home Price Expectations Survey 11/2010

Home Price Expectation Survey % Cumulative Price Change from Year End 2009 Macro Market Home Price Expectations Survey 11/2010

Future House Prices – CME Group December’s Price Projected Bottom CME Group 12/4/2010

Future House Prices – Fannie Mae Today’s Price Median Prices in Thousands Fannie Mae’s Economic and Mortgage Market Analysis 11/2010

Home Price Expectation Survey Projected Cumulative Price Changes vs. Year-end 2009 by Year Source: KCM 11/2010 Macro Market

National Housing Survey Fannie Mae 11/2010

(January 1, 2000 –December 1, 2010)

National Housing Survey Fannie Mae 11/2010

Percent Change in Sales by Price Range (2 Q Y/Y) < $100 K $100 -250 K $250 -500 K $500 -750 K $750 -1 M $1 M+ Source: NAR 2 nd Quarter 2010 Report

Percent Change in Sales by Price Range (Aug Y/Y) < $100 K $100 -250 K $250 -500 K $500 -750 K $750 -1 M $1 M+ Source: NAR August Existing Sales 2010 Report

Foreclosures Will Increase "Our focus should be on fixing problems where they are found and then moving forward expeditiously with foreclosure proceedings. " - Edward J. De. Marco, Acting Director Federal Housing Finance Agency 12/02/2010

Impact of Shadow Inventory "Homes sold out of foreclosure represent a low-priced alternative to homes sold by owner-occupants. When foreclosure sales increase as a share of total home sales, as they are now, owner-occupants face increased pressure to reduce prices in order to compete. If sales of foreclosed homes continue to show greater stability than sales of other homes, overall housing prices will continue to deteriorate. " - Quinn Eddins, Director of Research at Radar Logic RPX Monthly Housing Market Report 12/2010

Shadow & Visible Inventory Detail Core. Logic Shadow Inventory Report 11/2010

Shadow Inventory Detail Core. Logic Shadow Inventory Report 11/2010

Month’s Supply of Distressed Homes Core. Logic Shadow Inventory Report 11/2010

Value by Sale Category Type of Sale Non-Distressed Sale Short Sale Foreclosure Sale % of Value 100% 81% 59% Realty Trac Foreclosure Report 12/02/2010

Advanced Alternative Funding Strategies -Self Directed IRA -Life Insurance Policy -Tax. Wise Strategies -Real Estate Investment Trust

Self Directed IRA What is a Self Directed IRA? -A self-directed IRA is technically no different than any other IRA (or 401 k). A self directed IRA is unique because of the available investment options such as real estate. -Most IRA custodians only allow approved stocks, bonds, mutual funds and CDs. A truly self directed IRA custodian, allows those types of investments in addition to real estate, notes, private placements, tax lien certificates and much more. -Contact your Oracle Agent and Financial Advisor for more information on Self Directed IRAs and available custodians.

Self Directed IRA Seven Things You MUST Know about Investing in Real Estate with a Self Directed IRA? 1) Your IRA Cannot Purchase Property Owned by You or a Disqualified Person. 2) You Cannot Have “Indirect Benefits” from Property Owned by Your Self-Directed IRA. 3) Real Estate IRA Investments Are Uniquely Titled. 4) Real Estate in an IRA Can be Purchased without 100% Funding from Your IRA. 5) IRA Investments that Use Financing Must Pay UBIT 6) Real Estate IRA Expenses Must Be Paid from Your IRA. 7) Real Estate IRA Income Must Return to Your IRA. -Contact your Oracle Agent and Financial Advisor for more information on Self Directed IRAs and available custodians. www. trustetc. com

Real Estate Investment Trust (REIT) What is a REIT? -A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable, into the hands of the investors. The REIT structure was designed to provide a similar structure for investing in real estate as mutual funds provide for investment in stocks. -Contact your Oracle Agent and Financial Advisor for more information on Self Directed IRAs and available custodians.

Life Insurance Borrow against your Life Insurance Policy? -The main types of permanent life insurance are whole life, universal life, and variable life. Your financial advisor can help you examine the different features and determine if you are eligible to borrow against your policy. -Loans and withdrawals up to the total premium payments are typically tax-free, while other types of withdrawals may be subject to income tax. ** -Contact your Oracle Agent and Financial Advisor for more information on borrowing against your Life Insurance Policy.

Tax. Wise Strategies -Tax Deferral -Tax-Advantaged Investments -Capital Gains Tax -Estate Tax -Gift Tax -Charitable Trust Tax Benefits -Contact your Oracle Agent and BCG Advisor for more information on borrowing against your Life Insurance Policy.

Joseph “Bobby” Cheeseman Benefit Compensation Group, LLC. Direct Line: 251. 458. 8463 Email: Bobby@Benefit. Compensation. Group. com Toll Free: 800. 757. 8698 www. Benefit. Compensation. Group. com