Prosperity Blueprint™

Be Informed…Stay Connected…Eliminate
Debt…Save Money…Build Wealth!
© Copyright 2009 © Debt Trax Solutions All Rights Reserved
Do You Ever Feel Like This?
 My Goal For Today’s Clinic;
 Restore HOPE and confidence!
 Get REAL with you about your money!
 Help you find HIDDEN money & introduce new
cash flow strategies!!
 Discuss a plan & tool to eliminate debt!
 Connect you with TOOLS to insure your success!
 Get Smart…Stay Connected…Save Money…
Eliminate Debt…Build Wealth!
 Staggering Facts……
35% of American workers have $10,000 cash to their name
36% have between $10,000 and $100,000
15% have between $100,000 to $250,000
14% have more than $250,000

73% of American workers believe $250,000 is all the cash they

will need in retirement

**** SOURCE: Employee Benefit Research Institute ****

**** IRA’s/401K’s included ****
**** Figures do not include equity in their primary residences ****
**** SOURCE: Employee Benefit Research Institute ****
 ………Additional Facts
On average $295,000 will be needed for a husband and wife at age 65
to pay health insurance premiums and out of-pocket expenses if they
live until life expectancy. (source: EBR Institute)

66% of Americans EXPECT to be Millionaires (Source Money Magazine Jan 07)

65% of Americans need their next paycheck to meet expenses
11% of US workers will be covered by a defined benefit plan by
2011 versus 62% in 1983 (source: Tower Group)
22% of Americans have done no planning for retirement (WSJ.com)
46% of all millionaires own investment real estate
26% of all millionaires are business owners
 How Past Generations Lived
 They lived in the same house their whole life.
 They had one job their whole life and retired with a
pension.
 They saved a little money consistently for a long time.
 They had no credit card debt.
 Safe investments such as CD’s and Money Market
accounts were the ONLY choice.
 For them … a 30-year fixed mortgage was perfect!
 How We Live Today
 We change jobs 5 to 7 times, or more…
 We move 4 to 6 times, or more…
 We may never have a “pension”.
 We haven’t saved any money.
 We have a lot of credit card debt.
 We refinance more frequently, often consolidating
debts.
 The average life of a mortgage is 5.1 years!
 We have a tremendous amount of investment options
offering higher yields and safety!
The Dilemma Of Our Economy;
(our roadblocks to wealth)

 Lack of information about financial matters

 Failure to analyze personal/family cash flow
 Unemployment near 17%!
 Diminishing home equity!
 Taxes – The government keeps taking more of
what we earn!
 Interest rates on debt!
 Credit scores have been destroyed!
 FEAR & Hopelessness!
What Is Your Largest Monthly Expense

 Mortgage

 Food

 Car

 School

Wrong…..It’s Taxes!
 Let’s Take A Look…..
(assuming $70,000 joint income, homeowner)

 Federal Income Taxes $9,881 (married filing jointly)

 State Income Taxes $2,968 (4.24%)
 Property Taxes $2,246 Annual
 Utility taxes $1,258 Monthly
 Phone / Cable / Internet $54.73
 Gas (heating) $11.46
Monthly Total
 Electric $65.02
327.05
 Cell Phone $25.82
$1,258.00
 Water $10.02
 Sales tax $100 $1,585.05
 Gasoline **$60 (.15 per dollar) (avg.) (Source DOE)
***assuming 2 cars filling up once per week @$50 each***
Now, Let’s Look At Other Expenses:
 Mortgage/Rent
 Food
 Auto loans
 Utilities (excluding taxes)
 Auto/Homeowners insurance
 Medical Insurance/Costs
 Clothing
 Haircuts
 Entertainment
 Savings
 Clothes
 Credit cards
 Entertainment/Dining
 Vacations
 Saving for college
 Saving for retirement
 Child care
How Can You Ever Get Ahead?
 Now, Let’s Get A Better
Understanding Of Your Largest
Debt…Your Mortgage!
My Goal Is To ACT Like A
Banker Not A Borrower!

% $
Borrower Banker
Those Who Understand INTEREST, EARN IT!
Those Who Don’t Are Destined To PAY IT!
Which Sign Would You Rather
Have In Your Front Yard?
Now, Here’s What The Banks Know:

 We Refinance Every 5.1 Years (the national average)

 We Sell Every 7.4 Years (the national average)
 Less Than 10% Of U.S. Homes Are Paid Off
 Consider These Facts…..
The TOTAL cost of buying and financing your home;
(30 year loan at 5.5% not including taxes and property insurance)
NOTE: ***6% Rate (+.5%) +$31.40 per month and $11,425 in total interest paid

$100,000 Total Cost $204,403

$150,000 Total Cost $306,602
$200,000 Total Cost $408,807
$250,000 Total Cost $511,006
$300,000 Total Cost $613,210
$400,000 Total Cost $817,614
$500,000 Total Cost $1,022,017

Buyers Focus On Interest Rates

Bankers Focus On INTEREST DOLLARS!
 But Wait, It Get’s Worse!
If you refinance your mortgage in 5 years:
(assuming an initial $100,000 loan, rate and term refi with a new rate @ 4.75%)

Initial Loan Amount $100,000

Payment (P&I) $567.79
Balance After 5 Years $92,461 (-$7,539)
Closing Costs $3,000
New Loan Balance $95,461
(Closing costs rolled into new loan)
New Payment $497.97
Monthly Savings $69.82

How Many Months Before You Break Even?

$3,000 / $69.82 =42.97 months……CORRECT?
 WRONG!!!
433.03 Months (35.25 years!)
You made $34,607 in payments over the
past five years……..right?

Who has the $34,607, You or the Bank?

THE BANK, OF COURSE!

Now You Know Why You
Can’t Get Ahead!
 Has Your Lender,
Realtor, CPA or
Financial Adviser Ever
Shared These Facts
With You?
If Not, Why?
 Let’s Look At A Different Option:
Purchase and Finance a $100,000 Home at a 5.5% rate:
This is for illustrative purposes only – all plans must be customized - assuming $36,010 annual income,
$350 car payment, $100 revolving debt and living expenses of $850)

Monthly Payment: $567.79 (+$230 TIMI)

Home Paid Off In: 6 Years
Other Debt Paid Off: 10 months
Interest $ Saved: $84,847.88
Effective Interest Rate: 1.215%
Payments Invested for $426,984.25
Remaining 24 Years @5%

Accomplished With The SAME Amount Of Money

OTHER Realtor’s & Lender’s Would Have You Spend!!
 Here Is Another Idea…..
The Real Estate² Home Buyer System™
 In 6 Years Buy Another Home ($200,000 Value)
 Rent Out Your 1st Home @ $1,000 per month
 New Mortgage Payment of $1136 per month
 2nd Home Paid Off In 7 Years
 Interest Saved: $167,728.72
 Effective Interest Rate: 1.274%

How Many Homes Will You Buy At 1.274%?

Now, Repeat The Process Every 6-7 Years!
Here’s Another Option
The Real Estate² 30 Yr Plan™….

# Of Homes Owned: 4
Monthly Payments: $0.00
# Of Rental Homes: 3

Monthly Rental Income: $4,500 per month***

***estimated***
Here Is A Fourth Option…..
 How Do We Accomplish All Of This?

Consider this fact……..

An extra $30 per month added to your your
$100,000 mortgage @ 5.5% will eliminate 41 mortgage
payments!
With our Five – Step Cash Flow and
Debt Elimination Plan……….

My Equity Blueprint!
 Step #1 – “Cash Flow & Debt Analysis”
Have The Client Analyze Their Money & Debt!
 Step #2 - Cash Flow Repositioning

On Average We Save $750 - $2,000 Per Month In Expenses!

 Step #3 - Receive Access To Money Saving
Information and Discounts…Help Them Save!
Step #4
Go
Shopping
And
Save
Money!
Step #5 - Enter Your Data Into
MyEquityBlueprint.com
Here Is A REAL Life Client Before FLSN

Current Cash Flow

Net Monthly Income: $3,432
Auto Loan: $505 (4.3 yrs remaining)
Debt Payments: $110 ($6,034 balance)
Living Expenses: $1,766
Rent: $975
Disposable Income: $76
Here Is A REAL Life Client’s After FLSN:
Current Cash Flow
Net Monthly Income: $3,793
Auto Loan: $505
Debt Payments: $110
Living Expenses: $827
New Mortgage Payment: $884 (PITI - $125,000 LA)
Disposable Income: $1,467
Debt Free (CC’s) 6 months
Debt Free (Car) 19 months
Debt Free (Mortgage) 6.58 Years
****NOTE: Used $1,000 per month of cash flow savings****

30-Year Cash Accumulation: $1,051,751.14

 Option #1
So, Let’s Recap;
Buy A Home – Get A Loan Pay It Off In 30 Years!

Option #2

Buy A Home, Pay Off In 6 Years, Save $426,985!

Option #3

Buy 4 Homes – Pay All Off In 30 Years – Collect Rent!

Option #4

Buy Home – Pay Off In 12 Yrs. – Create TAX FREE Plan

All With The Same Amount Of Money Every Other Realtor

And Lender Will Have You Spend Every Month!
So, How Can You Learn More
About Implementing These
Plans and Strategies?

Fill Out Your Attendance Questionnaire

and request Additional Information
 Questions?
Contact: Hector Torres
Phone: (561) 502-0285
E-Mail: Hector@HectorTorres.us