1. BUYERS BE AWARE OFFICE MEETINGS - WEEK OF FEB 9-11, 2010

2. BUYERS BE AWARE WHERE ARE INTEREST RATES TODAY? WHERE ARE INTEREST RATES HEADED? WHERE HAVE INTEREST RATES BEEN HISTORICALLY? WHAT IS THE RELEVANCE OR IMPORTANCE OF INTEREST RATES ON BUYING POWER?

3. OFFICE MEETING ARTICLE FROM BUSINESS WEEK: “IF YOU DON’T BUY A HOUSE NOW, YOU’RE STUPID OR BROKE.”

4. BUYERS BE AWARE HISTORICAL LOOK @ RATES: 1970-72 = 7 ¼ % 1973 = 10% 1974-76 = 8 ½ - 9 % AFTER THE RISE TO 10%, THE 9% SEEMED O.K. OR FINE TO THE BUYERS

5. BUYERS BE AWARE HISTORICAL LOOK @ RATES: 1977 – 1981 = STEADILY INCREASED TO A HIGH OF “18 + %” !!! AFTER THAT, IT TOOK A L O N G T I M E TO RECEDE BACK TO PREVIOUS LEVELS. 1986 = DROPPED TO 9 % 1987 – 1990 BOUNCED BETWEEN 10 – 11%

6. BUYERS BE AWARE HISTORICAL LOOK @ RATES: 1991 – 2001 RATES SLOWLY EBBED LOWER, RANGING FROM 7 – 9 % 2002 – 2009 RATES FLUCTUATED BETWEEN 6 – 7 %

7. BUYERS BE AWARE THAT IS WHY 5 %+/- TODAY IS REMARKABLE !!!

8. BUYERS BE AWARE HISTORICAL LOOK @ RATES: FOR THE LAST FORTY (40) YEARS, RATES HAVE GENERALLY BEEN HIGHER THAN TODAY. FOR 30 YEARS, 7 % WAS THE LOW; 18+ % WAS THE HIGH.

9. BUYERS BE AWARE A LOOK BACK: THE NORM WAS: 9 % IN THE 1970’S 10 % IN THE MID 80’S THRU EARLY 90’S 7-8 % FOR MUCH OF THE 1990’S 6 % FOR LAST FEW YEARS

10. WHY BUY NOW EFFECTS OF RISE IN INTEREST RATES: EVERY QUARTER POINT RISE OR FALL IN INTEREST RATES EQUATES TO APPROXIMATELY $6,000 FOR EVERY $100,000 BORROWED, OVER THE COURSE OF A 30 YEAR FIXED RATE MORTGAGE.

11. WHY BUY NOW EFFECTS OF RISE IN INTEREST RATES: EX: $400,000 LOAN + ½% RATE HIKE EQUATES TO APPROX. $48,000 MORE !! EX: $400,000 LOAN + 1% RATE HIKE EQUATES TO APPROX. $96,000 MORE !!

12. BUYING POWER EX: FOR A BUYER WHO NEEDS TO KEEP THEIR PRINCIPLE & INTEREST PAYMENT BELOW $1,200 PER MONTH. AT 5% - PAYMENT IS $1,181 FOR $220,000 LOAN AT 5 ¼ % - PAYMENT IS $1,187 FOR $215,000 LN. AT 5 ½ % - PAYMENT IS $1,192 FOR $210,000 LN. AT 5 ¾ % - PAYMENT IS $1,196 FOR $205,000 LN. AT 6 % - PAYMENT IS $1,200 FOR $200,000 LOAN AT 6 ½ % - PAYMENT IS $1,201 FOR $190,000 LN. AT 7 % - PAYMENT IS $1,198 FOR $180,000 LOAN

13. BUYING POWER FOR A BUYER WANTING TO KEEP THEIR PAYMENT UNDER $2,000 A MONTH, PRINCIPLE AND INTEREST. $375 K LOAN 5%$1,986 MO. PAYMENT $360 K LOAN 5 ¼ %$1,987 MO. $355 K LOAN 5 ½ %$1,987 MO. $349 K LOAN5 ¾ %$1,984 MO. $335 K LOAN 6 %$1,978 MO. $315 K LOAN6 ½ %$1,959 MO. $305 K LOAN7%$1,995 MO.

14. BUYING POWER JUMBO LOANS $729,000 LOAN 8%$5,349 / MO. $760,000 LOAN7.5%$5,314 / MO. $800,000 LOAN7%$5,322 / MO. $850,000 LOAN6.5%$5,372 / MO. $900,000 LOAN6%$5,395 / MO.

15. WHERE ARE RATES GOING? WE (AT PINNACLE) DO NOT KNOW FOR SURE WHERE RATES ARE GOING, AS WE ARE NOT IN THE BUSINESS OF PREDICTING THE FUTURE. SOMETIMES WE CAN LOOK AT HISTORY OF RATES TO GET A VIEW INTO THE FUTURE.

16. WHERE ARE RATES GOING? WE CAN ASK OUR BUYERS IF THEY THINK THERE IS MORE ROOM FOR RATES TO MOVE UP OR TO MOVE DOWN. WE CAN HAVE OUR BUYERS LISTEN TO THE EXPERTS. IS THERE MORE RISK TO ACT NOW, OR WAIT?

17. WHERE ARE RATES GOING? “WE HAVE INDICATED THAT WE WILL COMPLETE OUR PLANNED $1.25 TRILLION OF PURCHASES THIS QUARTER. I BELIEVE IT IS IMPORTANT THAT WE DO SO, AND REDUCE OUR PARTICIPATION IN THIS MARKET, SO THE PRIVATE MARKET CAN ONCE AGAIN RESUME A SIGNIFICANT ROLE.” CHARLES PLOSSER PRESIDENT FEDERAL RESERVE BANK OF PHILADELPHIA SUBJECT – FED ENDING PURCHASE OF MTG BACKED SECURITIES

18. FED PROGRAM ENDS MARCH 31 MANY EXPERTS BELIEVE: INTEREST RATES HAVE BEEN KEPT AT HISTORIC LOWS BY FEDERAL INTERVENTION, AND ONCE THE FED PROGRAM ENDS, INTEREST RATES WILL RISE QUICKLY AND DRAMATICALLY. INFORMATION PROVIDED BY STEVE HARNEY

19. WHERE ARE RATES GOING ? HERE IS WHAT C.A.R. IS SAYING: MORTGAGE RATES IN 2010 ARE EXPECTED TO RISE FROM THE 2009 HISTORICALLY LOW LEVELS. THE FED’S ASSET PURCHASE PROGRAM IS SCHEDULED TO EXPIRE, AND A LACK OF PRIVATE DEMAND FOR MORTGAGE BACKED SECURITIES COULD LEAD TO A RISE IN INTEREST RATES.

20. M. S. N. GOVERNMENT EFFORTS TO MAINTAIN A LOW INTEREST RATE ENVIRONMENT HAVE STABILIZED THE MARKET. HOWEVER, A MORTGAGE ANALYST AT A FINANCIAL PUBLISHING COMPANY PREDICTS THAT RATES LIKELY WILL RISE TO 5 ½ % BY MID 2010, AND CLOSE THE YEAR AT 5 ¾ - 6 %.

21. WHERE ARE RATES GOING? “CONSUMERS HAVE A GOLDEN WINDOW OF OPPORTUNITY TO FIND A GREAT HOME AND TAKE ADVANTAGE OF THE TAX CREDIT BEFORE MORTGAGE RATES START TO RISE. HISTORICALLY LOW INTEREST RATES CURRENTLY AVAILABLE AND TAX CREDIT INCENTIVES ARE THE ULTIMATE PRICE REDUCTIONS FOR HOME BUYERS. AS RATES RISE THROUGHOUT THE COURSE OF THE YEAR, BUYERS WILL NEED TO ADJUST THEIR PURCHASE PRICE CEILING.” PETER FLINT, TRULIA C.E.O.

22. WHY A RIDGEGATE LOAN REP? THEY WILL PROVIDE GREAT SERVICE TO YOU AND YOUR CLIENT. THEY ARE GOOD PEOPLE WITH GOOD HEARTS, AND THEY WORK HARD. EASY TO REACH!!! DON’T RUN & HIDE. OUR LOAN AGENTS ARE ACCOUNTABLE. THEY HAVE A LOT TO LOSE.

23. WHY USE A RIDGEGATE LOAN REP? EACH TRANSACTION MEANS SO MUCH. PINNACLE OWNERS CAN GET INVOLVED. RIDGEGATE REPS ARE ON COMMISSION – JUST LIKE US. THEY ARE MOTIVATED. RIDGEGATE REPS ARE PART OF OUR FAMILY - THE PINNACLE FAMILY.

24. WHY BUY NOW? FORBES SAID ON JANUARY 15, 2010 - “IT REALLY IS A GOOD TIME TO BUY A HOUSE.” THE $8,000 TAX CREDIT FOR FIRST TIME HOMEBUYERS IS STILL AVAILABLE, AS IS THE $6,500 CREDIT FOR REPEAT BUYERS. ENDS APRIL 30 TH, 2010.

25. BUYERS ARE FUN IT IS IMPORTANT TO LISTEN TO WHAT YOUR BUYERS SAY, AND TO THE QUESTIONS THEY ASK. BE A GOOD LISTENER. LISTEN VERY CAREFULLY!

26. LISTEN CAREFULLY T HINGS Y OU D ON’T W ANT T O H EAR F ROM Y OUR B UYER.

27. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. I DON’T NEED NO STINKING PREQUALIFICATION.

28. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. I AM REALLY NOT IN ANY HURRY TO BUY. I HAVE GIVEN MYSELF 18 MONTHS TO FIND MY DREAM HOME.

29. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. WHEN I SAW THIS PROPERTY LAST WEEK, IT WAS WITH YOU. RIGHT?

30. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. EXACTLY HOW MUCH COMMISSION WILL YOU MAKE IF I BUY THIS HOME?

31. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. WHO IS YOUR “E & O” CARRIER?

32. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. IT IS STILL A BUYERS MARKET RIGHT? I WANT TO OFFER $150,000 ON THAT $250,000 R.E.O. IF YOU ARE A GOOD AGENT, YOU WILL GET THAT THROUGH.

33. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. I KNOW IT IS TIME TO BRING IN THE DOWN PAYMENT, BUT I AM $3,500 SHORT. HAVE YOU EVER HEARD OF A COMMISSIONECTOMY?

34. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. I WANT TO GO SEE E V E R Y T H I N G BEFORE I WRITE AN OFFER.

35. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. CAN YOU EXPLAIN TO ME THIS PROFESSIONAL SERVICE FEE OF $1,200?

36. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. I THOUGHT I TOLD YOU MY DOWN PAYMENT WAS COMING FROM A THIRD WORLD COUNTRY. HOW WOULD I HAVE KNOWN A COUNTRY COULD FILE BANKRUPTCY?

37. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. IF I WANTED TO CANCEL THE ESCROW, WHAT WOULD I HAVE TO DO?

38. LISTEN CAREFULLY THINGS YOU DON’T WANT TO HEAR FROM YOUR BUYER. CAN YOU EXPLAIN TO ME THIS PROFESSIONAL SERVICE FEE OF $1,200? I THOUGHT I TOLD YOU MY DOWN PAYMENT WAS COMING FROM A THIRD WORLD COUNTRY. HOW WOULD I HAVE KNOWN A COUNTRY COULD FILE BANKRUPTCY? IF I WANTED TO CANCEL THE ESCROW, WHAT WOULD I HAVE TO DO?

39. L.A. TIMES ARTICLE TITLE - GOING TO SELL THE HOUSE? DON’T WAIT FOR SPRING. THE BUSIEST SEASON FOR HOME SALES TRADITIONALLY BEGINS THE DAY AFTER THE SUPER BOWL. PUTTING OFF GETTING THE WORD OUT ABOUT YOUR PROPERTY WOULD PROBABLY BE A MISTAKE, SOME EXPERTS SAY.