1. Buy Back Oregon Presentation John McClay, Principal Broker, CDRS Nathan Jones, Principal Broker

2. Overview Who We Are The Current Real Estate Situation How Did We Get Here? Program Overview What We Need to do Now! How to Turn the Tide

3. Oregon Principal Brokers with over 25 yrs. experience, who are passionate about our State, communities and people we serve. We want to put families back into their homes. We are advocates for private property ownership, the American dream. Who We Are

4. 3 ½ years of unprecedented decline in Oregon Real Estate business Property Values have declined anywhere from 30%-50% Property Values are declining nationwide at the rate of 1% per month this year. -The Wall Street Journal The Current Real Estate Situation

5. How Did We Get Here? Foreclosures by Year *Wall Street Journal projections

6. Purchase all REO properties in Oregon through 2013 Rent out currently empty homes Rent to own option for qualified residents Sell homes at Fair Market Value Alleviate downward pressure on all Real Estate values and the financial burden on State Lenders Buy Back Oregon Program Overview

7. Rent previously foreclosed properties with a purchase option Up to 40% of all families who have been foreclosed upon could be back in their homes First time home buyers could have affordable housing without incurring economic ruin Program Potential

8. Stop declining values in all residential properties Stop the downward pressure on pricing and values Put the real estate business on firm footing What we need to do Now!

9. Stabilize the real estate market and help stabilize the State economy Create opportunities for people to have a home. Excellence achieved through Oregon’s best real estate practices Mission Statement

10. National Delinquency Survey

11. Wallstreet Journal May 18-19, 2011 “Home buyer tax credit did little more than pull sales forward, once expired sales slumped.” “If seller’s can’t unload homes in the spring, they will be more inclined to aggressively cut prices. That, along with the wave of distressed properties still coursing through markets, may mean that 2011 price drops are more severe than expected.” “Falling mortgage rates won’t counter high unemployment. Until that improves markedly, and the huge inventory of unsold homes declines, investors should beware of any housing head fakes.” Wallstreet Journal May 18-19, 2011 Real Test for Housing Markets to Come Later | By David Reilly

12. Wallstreet Journal May 19-19, 2011 “Housing IS the business cycle.” “Economists and policy makers haven’t fully understood the implicates….especially in regard to rising dept levels…one reason the current downturn is so severe.” “2011 will mark a sixth year in a row of new home sales declines and the fewest sales since records began being kept in 1963...2010 less than 60% of the number of new homes sold in 1963, even though the population today is nearly two-thirds bigger.” ”…the absence of a housing recovery makes it more challenging to create a vigorous economic recovery.” “We are stuck today, as in the 1930’s, ia a household recession triggered by excessive debt.” Wallstreet Journal May 18-19, 2011 The Housing Headache Felt All Over | By Kelly Evans

13. 1.2 million foreclosures this year in the United States 24,000 home foreclosures this year per state (Projecting a little less than 19,000 residential home sales in Oregon this year.) REO properties (Real Estate Owned by lenders) – Currently 10% of “properties for sale”. It is obvious many more REO’s have to be sold to clear foreclosed home inventory. Where Are We Now?

14. 1.Purchase all REO properties in Oregon this year, 2012 and 2013 2.Contact all previous owners of foreclosures and offer rent/purchase. (could work for up to 40% of these people) 3.Offer the rent /purchase option to people who want to own a home but don’t quite qualify at this time. (first time home buyers etc.) 4.Sell on open market without dropping price 5.Rent The Critical Solution

15. Not an entitlement program Is Government funded (US Treasury) paid back within 10 years Not get rich by buying foreclosures program Collectively we are providing a means for individuals to “Earn your own way.” and “Buy your own home.” while repaying the principal balance How do we pay for it?

16. Government/Politics Government must be 100% involved; First, for funding, Second, for cooperation from Fannie Mae, Freddie Mac, etc., Third, to assist us with convincing ALL lenders in Oregon to participate in this program. *It is critical that ALL lenders participate. Buy Back Oregon

17. Lenders – Clear REO Inventory Private Property Owners – Values Stop Declining Buyers – Rent/Purchase Options Home Sellers – Downward pressure on pricing stops Real Estate Business - Stabilize pricing and sales State of OREGON – Help stabilize economy Lenders – Clear REO Inventory Private Property Owners – Values Stop Declining Buyers – Rent/Purchase Options Home Sellers – Downward pressure on pricing stops Real Estate Business - Stabilize pricing and sales State of OREGON – Help stabilize economy Lenders – Clear REO Inventory Private Property Owners – Values Stop Declining Buyers – Rent/Purchase Options Home Sellers – Downward pressure on pricing stops Real Estate Business - Stabilize pricing and sales State of OREGON – Help stabilize economy Winning Program

18. Cost for 3 years: High is five billion, low would be two billion* * depending on how many foreclosures are currently in asset management departments of lenders in Oregon. Operation budget: 3 to 4% of cost. The rest of the monies are used to purchase REO properties. All costs to be repaid. Project management, property management, BPO’s and appraisals, property insurance, property taxes, marketing, commissions, set up escrow accounts, etc. Upfront Costs

19. Six months after the purchase of the 2012 foreclosures The remainder repaid over the next 8 years. Payback will come from: 1. Proceeds of outright sales of REO properties 2. Rent received 3. Purchase of rent/purchase 4. Rent from rental properties 5. Sale of rental properties over next 8 years. Payback begins

20. Purchase Flow Chart

21. Pay Back Flow Chart *All Monies to be paid back by 10 years from beginning of payback

22. We are here to answer questions and look forward to working with you to “Buy Back Oregon”! John McClay, Principal Broker CDRS Nathan Jones, Principal Broker Licensed Oregon Real Estate Brokers Buy Back Oregon!