Prepaid Real Estate Commission will change the way real estate is sold and marketed.

1. WELCOME TO
Enhancing And Protecting Your Equity

2. Wisdom Realty…
provides innovative solutions to help enhance and protect your
equity.
Wisdom Realty is a privately owned Real Estate Brokerage led by William L.
Watkins, Jr. with years of experience in real estate. William is a Licensed Broker in
IL.
Wisdom Realty’s Commission Lock TM is a revolutionary real estate sales program
designed to help homeowners keep more of their hard earned equity.
The program charges commission not on the increased value of the property after
it sells, but on the current market value upon entry into the program.

3. The Need: The Cyclical Real Estate Market
For most people, their home is their biggest investment. If their market crashes, so can the equity in their home
and along with it, their plans for retirement, children’s education, and so on.
The common perception is that real estate always appreciates. Overall, it is true that real estate tends to
appreciate. But as events of the last 6 years underscore, rising real estate values are not inevitable. And, even
when real estate values increase overall, there are hundreds of real estate markets in the U.S. and some decline
from time to time. The question to be asked is when you want or are forced to sell your home, for any reason,
where will the market be? Even in an appreciating market, buyers can experience significant increases and
decreases in the value of their home. By mid-2008 the majority of housing markets in the U.S. were overvalued,
with a sluggish real estate market projected for years to come. As a home represents the largest asset for more
homeowners, a market drop can have devastating consequences.
With most investments, there are ways to hedge, or reduce the risk of loss. To date, nothing has
ever been offered to protect homeowners in their number 1 investment.
The Wisdom Realty’s Commission Lock™ program is designed to stop equity
stripping by the antiquated traditional real estate industry.

4. The Threat of Financial Loss
to Homeowners in Today's Market?
…Catastrophic
• U.S. is in the worst market since the Depression.
• Housing Declines on a National Level.
• Expected Losses range from 1% to 30% before recovery.
There are NO immune markets!

5. Prices down 21% through 2010
Decline to Continue through 2017 and Beyond*
*Case Shiller Index limited to large U.S. markets as a reflection of the national market.

6. Sample of Top 100 Markets to Decline
Botto Peak-to-bottom price
Rank Area m decline (%)
1 Stockton CA 08Q4 -25
2 Palm Bay-Melbourne-Titusville FL 08Q4 -24.9
3 Sarasota-Bradenton-Venice FL 08Q3 -24.8
4 Reno-Sparks NV 09Q1 -22.4
5 Modesto CA 08Q3 -22.3
12 Phoenix-Mesa-Scottsdale AZ 08Q2 -17.8
18 Lansing-East Lansing MI 09Q1 -15.7
19 Bakersfield CA 09Q1 -15.6
24 Santa Rosa-Petaluma CA 08Q4 -14
28 Baltimore-Towson MD 09Q2 -12.8
44 Miami-Miami Beach-Kendall FL 08Q4 -9.9
53 Colorado Springs CO 08Q3 -7.8
54 Boise City-Nampa ID 08Q4 -7.7
57 Lakeland FL 08Q3 -7.5
58 Portland-Vancouver-Beaverton OR-WA 08Q4 -7.2
77 Chattanooga TN-GA 07Q4 -3.5
78 Tulsa OK 07Q4 -3.4
79 Salt Lake City UT 08Q3 -3.4
84 Seattle-Bellevue-Everett WA 08Q3 -2.9

7. 30-70% of Markets
Expected to Decline through 2013
80.00%
70.00%
60.00%
50.00%
40.00% OFHEO
NAR
30.00%
20.00%
10.00%
0.00%
2008 2009 2010 2011 2012 2013
Projections based on historical results of Office of Federal Housing and Employment Office (OFHEO) and the National
Association of Realtors (NAR).

8. Homes to Lose 5-9% Per Year
(Weighted Average of Expected Decline of Down Markets)
OFHEO
NAR
0.00%
-2.00%
-4.00%
-6.00%
-8.00%
-10.00%
2008 2009 2010 2011 2012 2013
OFHEO -5.91% -9.94% -9.37% -8.10% -5.38% -3.63%
NAR -6.55% -6.91% -5.38% -5.02% -4.24% -3.70%
Projections based on historical results of Office of Federal Housing and Employment Office (OFHEO) and the National
Association of Realtors (NAR).

9. What If?
Sometimes The Worst Case Scenario Actually
Happens
Hundreds of Billions of Dollars are Lost in
every Real Estate Bubble
Of Course The Value of a Single Home is only
a few Thousand Dollars
……But, Why Risk It

10. COMMISSION LOCKTM
What Is It?

11. The Commission Lock is the best real estate marketing program for homeowners. It will help
them realize the best return on one of their biggest investment--their home and Wisdom Realty is the
only Real Estate Brokerage firm offering it to the general public.
Unlike the traditional real estate process where the homeowner is charged a 6%+
commission on the increased value, Wisdom Realty’s Commission Lock™ program
places it clients into the program before there is a need to sell and charges a reduce
commission base on the current market value at time of entry.
At the time the house is sold, having prepaid, the homeowner would not have to pay
any money at closing. If the home happens to sell for less than the value the prepaid
commission was based on, the seller would receive a refund at closing.
The transaction is structured as a Prelisting Agreement—convert to a conventional Listing Agreement (Open
Listing Agreement rate of 1.95%-2.10% or 2.11%-2.50% rate for Exclusive Right to sell Listing) when the
home goes to Active Status. This not an insurance policy.

12. Sample of a Local Market Fluctuation…
Boston-Quincy, MA (MSAD) MA 2003 3 223.29
Boston-Quincy, MA (MSAD) MA 2003 4 234.22
Boston-Quincy, MA (MSAD) MA 2004 1 238.64
Boston-Quincy, MA (MSAD) MA 2004 2 244.62
Boston-Quincy, MA (MSAD) MA 2004 3 256.41
Boston-Quincy, MA (MSAD) MA 2004 4 261.02
Boston-Quincy, MA (MSAD) MA 2005 1 266.97
Boston-Quincy, MA (MSAD) MA 2005 2 272.84
Boston-Quincy, MA (MSAD) MA 2005 3 276.51
Boston-Quincy, MA (MSAD) MA 2005 4 279.6
Boston-Quincy, MA (MSAD) MA 2006 1 281.13
Boston-Quincy, MA (MSAD) MA 2006 2 276.78
Boston-Quincy, MA (MSAD) MA 2006 3 275.28
Boston-Quincy, MA (MSAD) MA 2006 4 276.53
Boston-Quincy, MA (MSAD) MA 2007 1 275.05
Boston-Quincy, MA (MSAD) MA 2007 2 270.42
Boston-Quincy, MA (MSAD) MA 2007 3 266.59

13. COMMON TERMS
Market Index: Direct Homeowner Sale:
Relative index used to measure localized markets. Refers to a sale directly to the homeowner and often is used to describe the
baseline commission rate for a particular market.
Commission Lock:
Refers to Prepaid Commission Advance Marketing program.
Distribution Sales:
Program Pricing:
The amount paid in a percentage for a homeowner to participate under A bulk sale to a Builder/Developer or other in mass quantity.
Commission Lock program.
Strategic Partner:
Exclusion:
Time period from date of entry into the Commission Lock program to when An individual or entity who has aligned their expertise and services with Wisdom
the homeowner can place the home in active sale status. Realty.
Application:
The first step in completing the necessary paperwork requesting approval for Bulk Contract Agreement:
participation in the Commission Lock program.
An agreement with a builder or developer whereas they have committed a
Underwriting: certain amount of their respective inventory.
Process the application goes through for company approval of the individuals
request for Commission Lock.
Ad Hoc Agreement:
Coverage Term: Non committed agreement with a builder or developer whereas they wish to
Period to which an individual’s Commission Lock program will be valid.
participate in selling Commission Lock on a as needed basis.

14. How Commission Lock Works…
Premium Pricing:
Prepaid Listing Agreements will be underwritten individually and typically priced between 1.95% and 2.50% of the home’s
value. The average commission is approximately 2%. Individual market characteristics and the listing agreement type i.e.,
Open Listing agreement or an Exclusive Right to Sell agreement may determine a higher listing commission. Various
factors may impact the price of the program,; whether the home is the primary or secondary residence, owner occupied
or not, or whether the program is financed etc. Geographic and market considerations are based on industry and our
proprietary analysis of the market.
Exclusion and Limitations:
Coverage is effective 18 to 24 months after entrance into program (depending on geographic/market considerations) and
continues for life of ownership. Can be use in a 1031 exchange as long as certain conditions are met and is only
transferrable to immediate family members.
Homeowners do not qualify for the program if…
•The need to sell is immediate.
•The home is in Foreclosures. (Except for REOs from qualifying Institutions)

15. Commission Lock is available for any
whole ownership real estate products.
 Single Family
 Townhomes
 Condos
 Lots
It does not matter how long the home has been owned.
6 months….60 years
Everyone Qualifies!

16. Below is examples of how Commission Lock
would save a home owner thousands in commission.
Example
In 2008, Mr. Jones purchases a home for $300,000 and decided to enter the Commission Lock program—for $6,000 prepaid his
commission and hedge against the market’s wild swings. In 2011, Mr. Jones sells the home for $375,000. Since Mr. Jones prepaid he need
not worry about bringing any money to the closing table. But, had Mr. Jones sold the home for $375,000 without using the Commission
Lock program and decided the traditional real estate process was his preferred method using a traditional agent, Mr. Jones would have
paid $22,500 in commission. That’s a difference of $16,500. That’s sixteen thousand dollars that Mr. Jones decided to give to agent who
had no hand in helping him build his equity. And, just image had the value dropped from the original purchase price when Mr. Jones
needed to sell he would have paid a traditional commission by using a traditional agent (6%). Had he used Commission Lock and the value
had dropped he would have come away from the closing table with cash. Here are the numbers: Say the sale price was $268,000 at 6%
that is $16,080 in commission that the traditional firm would have charged Mr. Jones. Compare that to Commission Lock’s $5,360 a
difference of almost $11,000 and Mr. Jones would have receive a refund of $640 at closing.
Wisdom Realty’s Commission Lock is the New Real Estate Program without the
Risk!

17. What kind of a Product is this?
• Is this Insurance?
No. It’s a prepaid commission advance marketing program for your largest
investment. Your Home!
• Is this an Investment?
Yes. It is entered into with the understanding it’s the real estate agent’s duty to get
you the highest return on your investment.
It is the best way to stop equity stripping;
a Equity Enhancing tool
Design to Protect your Investment dollars.

19. How to Pay for It…
In many circumstances the Buyer if buying when entering the program or the homeowner
will cover the cost of entering the program.
• Make a one time payment.
• Finance it through your Mortgage Company.
• Use your home’s equity.
• Pay with a credit card.

20. How to Pay for It…
The ultimate goal in the current economy is to establish a real estate industry where the
Commission Lock product is offered via your mortgage company, in most all circumstances (see
Strategic Partner and Bulk Sale Section) In this scenario the premium is paid for by…
• The Builder or Developer
• The Seller of a home
• The Mortgage Company
• Rolled into the mortgage

21. Who Holds the prepaid commission…
•The prepaid commission is immediately placed in a 3 rd party custodial account.
•You set up the custodial account with your mortgage company.
•These funds are tax deferred and can not be used for any other purpose other than to pay commission.
•The company operates on a transparency concept. Anyone at anytime can view the account balance.
•Quarterly reports will be issued, advising all contract holders of the current balance and the projected
balance in the forthcoming quarter.

22. What is the Processing Fee for…
•The fee is a charge that covers the cost associated with placing the homeowner into the program.
•Application processing to include pre-market agreement and future Listing Agreement.
•Floor plan development.
• Actual drawing.
• Measurements and calculations.
Radon testing.
•BPO may or may not be included in processing fee cost. Depends on local market.
•Home Profile development. (This is to assist in marketing the home beyond Traditional real estate descriptions)
•Review disclosures with homeowners.
•Review data on local market with homeowners
•Review other equity enhancing and protection products.
•Review Home Warranty and Home Maintenance options.
•Fuel surcharge*(added depending on local fuel cost)

23. The Company…
& Leadership

24. The Company was founded in early 2005. The
intent of the organization is to provide innovative
solutions to reduce real estate equity stripping
through a variety of equity enhancing products.
The company’s first product offered publicly is Commission Lock and it has intentions
to provide more products with the evolution of the market place. In essence,
Commission Lock is just the first of many product offerings the company will
establish.
For seven years the company has been developing the appropriate infrastructure and
risk aversion to offer the average homeowner the ability to hedge against losses in
equity when their home is re-sold.
This is the initial offering of the Commission Lock product.

25. The Company Vision for Growth
Although the company does have intentions of offering the Commission Lock product to the average
homeowner on a national basis the first 6-12 months of operation will be directly focused on the below…
 Direct sale to builders and developers
 Direct sale to insurance, mortgage companies and banks
 Developing a strategic partner network that spans every metropolitan region across
the U.S., at the local level.
 Creating a name in the real estate industry of respect and trust
 Establishing an industry NEED for the product via Realtors, Insurance and
Mortgage Brokers, Title Companies, Financial Advisors and Sellers in a R.E.
transaction

26. What is a Strategic Partner?
A Strategic Partner is a person or entity wishing to align their services and
expertise with Wisdom Realty to infuse the Commission Lock product at a
national or regional level to help stabilize the real estate industry. The ideal
partner is a company that understands the entrepreneurial spirit who has the
ability to affect change in a manner that benefit the broader economy.

27. A Strategic Partner…
 Is not an employee of Wisdom Realty
 Is a partner with Wisdom Realty
 Can be an individual or an entity
 Is generally an industry professional or an entrepreneur
 Focuses on providing the Commission Lock product to clients or
 Focuses on building an indefinite network who offers Commission Lock

28. The Cost of Doing Business…
Wisdom Realty will support you in the following…
 Access to all inside information via a private log-in on the website
 Email materials
 Training and education on the products and company
 Strategy and network building oversight
 Application processing and underwriting
 Complete brochures on the Commission Lock product to get you started
 Conference call and on-site meeting support for potential bulk sales.
 Marketing materials for builders & developers as needed
You will be responsible for…
 Brochure cost beyond the original 15
 Business Cards
 Travel cost incurred in the course of business, Cell phone and landline bills
Note: Depending on your level of production, Wisdom Realty may decide to pay for the cost of marketing materials as it sees fit.

29. Becoming a Strategic Partner…
1) Have an initial call with a company Executive to have your all questions answered.
2) Complete the online sign up form on the website (Coming Soon w/HOMELS)
3) Receive a Username & Password (Coming Soon w/HOMELS)
4) Contact us to design any custom materials (your cost)
5) Print any collateral materials at a local printer (at your expense)
6) Verify which markets in your area are available and confirm terms & price
7) Start Marketing!

30. Using The Strategic Partner Website…
When your Agency & Referral Agreement has been signed
request a username and password to the site.
Go To www.commissionlock.com
News & Resource Section
On this website you find any and all information needed to begin your sales
and marketing process. All information can be uploaded and used. You
can also complete an online application for your Commission Lock
customers right on the site which automatically forwards to the Wisdom
Realty.
Let us know if you have any questions!

31. Like To Offer Commission Lock …
Contact Wisdom Realty and request Member Application
You must be a Licensed Real Estate Broker to apply (Real Estate Industry
Only)
 Educate yourself on Commission Lock and the Real Estate Market
 Choose an area to farm, obtain general pricing and terms for the area
 Prepare your presentation and have all your bases covered
Focus On Anyone And Everyone Who Has Direct Contact With A Homeowner.
Commission Lock Is a Sales Tool For Many To Close More Deals While Creating
A Unique Market Advantage.

32. Realtors
New source of revenue, new buyers and past purchasers.
 Help them understand how it can help them to make more sales.
 Supply them with the knowledge and the tools to exploit the products benefits.
 Make sure they know they get paid an upfront processing fee from their clients.
 Have them network with their realtor friends and contacts.
Go to their office sales meetings and present Commission Lock.
 Get their broker on board with the offering and attempt to make it policy for the
company. (Broker Must be Qualified as a Member by Wisdom Realty before their agents
can market the product).

33. Mortgage, Insurance,
Title Companies, Financial Advisors and
Banks
 Great for value added services.
 Help them understand how it can help them to make the most of their relationships.
 Supply them with the knowledge and the tools to exploit the products benefits.
 Make sure they know they can get paid for selling Commission Lock to their clients.
 Have them network with their friends and contacts.
 Go to their office sales meetings and present Commission Lock.
 Get their Leadership on board with the offering and attempt to make it policy for the
company.

34. The Sales Process…
 Ensure all your appropriate paperwork is in order. Commission Agreements Etc.
 Identify possible Commission Lock buyers & S.P.
 Present the Commission Lock concept
 Register your leads with Wisdom Realty
 Have the Commission Lock Application completed and forward to the home office
 Underwriting will Forward the Approved Contract within 72 hours
 Deliver the contract to the applicant and review the terms & pricing
 Have the Commission Lock Client sign the Contract
 Collect the Prepaid Commission & Processing Fee Payment
 Confirmation of Participation will be sent to the Client
If financed the customer will need to complete an additional application for finance approval

35. Closing a Sale
Request home office support as needed to support the sale.
Sale Complete!

36. Builder and Developer Sales…
 Identify all possible distribution opportunities within your farm area.
 Arrange a meeting to present the Commission Lock concept
 Register your contact with Wisdom Realty
 Determine their interest for the respective project (s)
 Have the Builder/Developer Application completed and forward to the home office for
underwriting pre-approval
 Underwriting will Forward the Approved Terms and Pricing on a “Term Sheet” within 4 business
days
 Deliver the Term Sheet to the applicant and review the terms & pricing
 If agreed, have them sign the Term Sheet
 A formal contract will be sent to be signed by the companies representative.
Use the Wisdom Realty Team to help Close Sales.
We are always available to meet with builders and attend meetings as necessary.

37. Terms and Pricing:
Terms and Pricing are 1.95% to 2.50% of the current market value of the home.
There is a non-refunding processing fee of .15(15 cents) per sq. ft. up to 3500sq.ft. .
25(25 cents) thereafter. We are currently offering a introductory processing fee of
$495 until the end of 2011. Market value determination must be based on either an
full appraisal or B.P.O..
The actual commission rate will be determine by you and your selected Real Estate
Broker. If selecting the Open Listing Agreement option which is the least expensive
option the commission rate will most likely be capped at a 2.10% commission rate.
Please verify with your Broker for correct pricing for your market.

38. We are very excited to have you join our Wisdom Realty Team and
look forward to supporting you through your many successes.
GOOD LUCK ~ GOOD SELLING