Economic Bail-Out Assistance Program for Developers

Use A New Home Buyer Assistance Program to Attract Buyers and Move Inventory

Times are tough. We know. We’re in the business of helping developers around the country and we hear all the stories: Non-existent cash-flow; empty homes and empty lots; prices below what it costs to build; existing home owners that are angry because they are living in a sparsely populated development and the same model across the street is selling for half the price; financing that is tough to come-by; banks that are breathing down your neck; and few real buyers. All of this has added up to disastrous circumstances for many developers around the country.

Buyers Equity Fund can’t solve every problem, but we can help. We offer a very unique product that, if used correctly, can bring more buyers to your development, bring real estate agents and their clients to your development, and set you apart from other developments in your area. In a nutshell, we give you the ability to:

Legally Offer Real Cash Incentives to Buyers of Your Homes!

We can give you a way to offer 5%, 10%, or even 15% of the purchase price of your homes back to buyers, in the form of cash, delivered in as little as seven days after closing! This is not funny money offered by a preferred lender to buy down interest rates or pay closing costs. This is not “cash-back” in the form of upgrades on the home. This is not a roundabout way to lower the price on your homes (In fact, many developers have actually been able to raise the prices of their homes). In short, this is not a marketing ploy where you advertise cash back and then do something else. This is actual cash to the homebuyer!

For example: If you are selling a $250,000 home, and it is enrolled in our 10% program, the buyers will receive a check for $25,000, in as little as seven days after closing. This is money they can spend as they wish. In addition to this, you cans till offer whatever lender incentives, upgrades, or discounts you want in order to sweeten the deal, but the fact remains that your buyers will have cash in hand top ay off debt, invest, put in the back yard, upgrade the home, spend frivolously, or do whatever else they want to do!

The Ultimate Win-Win

So, what’s the catch? The short answer is that there is no catch. This is a program that truly benefits everyone who chooses to be involved. There are four main parties to this transaction, and every one of them can benefit greatly:

The Home Buyer:

Home buyers have the opportunity to purchase a new home from you, at a good price, and then receive cash. This cash is not a loan. There are no payments and no interest associated with this money. It is option consideration money. They simply need to make two commitments:

1) They need to commit to live in their home for a minimum period of between five and seven years. After that, they may stay as long as they like, up to 40 years without re-financing or selling.

2) They need to commit to share with Buyers Equity Fund the equity they have accrued, when they sell or re-finance the home.

In essence, we are providing them with the opportunity to pre-sell a portion of the appreciation of the home, and we are taking all the risk: If the home does not appreciate, we lose. If it does appreciate, we make money along with the homebuyer, who has had the use of that money for several years.

The possibilities for homebuyers are endless. They can use the money to:

• Pay back the source of their down payment (401K’s, etc.)
• Invest the money in college education funds, retirement accounts, other real estate, and/or any other investment vehicles.
• Pay down debt, such as credit cards, car loans, or any other debt, thereby putting themselves in a more comfortable situation.
• Upgrade the home. They could use the money to add back-yards, add pools, finish basements, decorate, add furnishings, or do any number of other things to the home.
• Pay the mortgage payments for the first year or more. The money could simply sit in a bank account and be used to pay the mortgage for a while.
• Any other expense they deem necessary. While we don’t condone it, they could even use the money for frivolous pursuits like vacations, TV’s, cars, etc.

In short, it’s their money, no matter what they decide to do with it. Since there is no guarantee that home prices will appreciate, it is in their best interest to make money on that equity, now. With money, sooner is always better than later.

The Real Estate Professional:

Real Estate agents, loan officers, lenders, financial planners and other people involved in the real estate and investment markets also benefit from this program, because:

• It allows them to attract more buyers with a program that is unique in the market place. They will stand out from their competitors.
• It may allow them to get more buyers qualified for a loan (buyers can’t use the money they will receive from us for their down payment, but they may be able to use it to pay back the source of their down payment, such as paying back a 401K).
• They may be able to assist clients with additional transactions if they successfully advise their clients to invest the money in other real estate or investment vehicles.
• They will have more inventory to choose from, as developers enroll in the program and open up properties and homes to their clients.
• They will earn a small referral fee from Buyers Equity Fund. It is not much, but any additional income counts for many real estate professionals today.

The Developer:

Developers, their builders and their banks will win because:

• You will have more potential buyers coming to your development. Buyers will

come from two sources:

1) Many will come simply because you advertise cash on your homes.

2) We are currently in the process of enrolling thousands of professionals in your area to refer clients to the program. This means there will be thousands of people sending clients your way if your development is enrolled in the program. (While it is not mandatory, we also recommend that you offer some form of commission to outside agents, if you don’t already). Unfortunately, this also means that thousands of agents looking for homes that are enrolled in this program will bypass your development if you are not enrolled in the program.

• Maintain or even raise prices. Many developers have tried to move property by slashing prices. Unfortunately, this has only served to cheapen what they are offering. After all, what is the general perception of marked-down goods? The enticement of cash to the buyer allows you to maintain prices and not drop your pants just to close a deal. In many cases, developers have found that they have been able to raise prices slightly to account for the program.
• Long-term investment income. The best part of the program is that you get to participate with us in the success of Buyers Equity Fund. Instead of slashing prices, you are able to take the amount by which you might have discounted the property and invest it in Buyers Equity Fund. This investment can yield returns and may be a tremendous asset in the future. So instead of slashing your prices and never seeing the money again, you have the opportunity to see a return on your investment. In other words, not only can you get a return OF your investment, but also a return ON your investment.
• Liquidity. Moving properties creates liquidity for you. Rather than having money tied up in property and empty homes, you can have it ready for future investment as the market turns. This liquidity may even set you up to take advantage of market upswings in the future.

Buyers Equity Fund:

We are not a non-profit organization and we will obviously benefit in many ways:

• Future Income: Buyers Equity Fund is made up of real estate and finance veterans that understand the real estate market. We understand that we are taking a risk: If home values do not appreciate, we lose. But we are confident that real estate values will appreciate over time, just as they have in the past. We, and our bondholders, are willing to take the risk that many homeowners can't and shouldn't take alone. We are willing to partner with homeowners of properties that qualify to invest in the long-term appreciation of property values. We are confident that this will be a win for us, our bondholders, and the property owners with whom we partner. We also understand that as property values escalate and the performance of Buyers Equity Fund grows, the value of the fund will also grow. We are confident that we and our bondholders, including all of the developers who have invested, can see our investments grow.
• Great Relationships: We believe in taking care of our partners and we look forward to expanding our relationships with professionals around the country. Great relationships with banks, developers, builders, lenders, loan officers, real estate brokers and agents, homeowners, and many other people will ultimately benefit us in many ways, both now and in the future.
• Playing a Part in the Recovery: Altruism is not our primary motivator, but we must admit that it feels good to do something that we think will contribute to the economic recovery of our nation. Profit is important, but not at the expense of other people. We are excited about being involved with an opportunity that can be truly beneficial to all those involved. We love being involved with something that is a win-win-win-win.

For more information on how we help developers attract buyers and move inventory, fill in the following information. Additional information about Buyers Equity Fund will be immediately sent to you. A representative will also contact you to answer any questions you have.