a | r | e Spring 2012

Purchasing Property iN

Asia Getting Started in Thailand, the Philippines, Vietnam, Taiwan and Korea

Also featured: Costa Rica & Manhattan

Trade mission Journal: AREAA Goes to Vietnam While All Real Estate is Local, Today’s Buyers May Be International Are Credit Reports more important than credit scores? and more...

The island of Koh Samui in Surat Thani Province, Thailand

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Last year, sales from international buyers reached $82 billion The average price paid by international buyers was $315K, compared to the overall U.S. average of $218K International buyers came from a total of 70 countries; the top five (Canada, Mexico, China, U.K., and India) accounted for 53% of transactions Source: NAR 2011 Profile of International Homebuying Activity

Title Insurance: The Best Investment Your Client Will Ever Make Foreign Buyer’s Guide (Available in Chinese, Korean, Russian, Spanish, and Vietnamese) A comprehensive booklet that outlines the title and escrow process as it relates to international transactions.

First American Title has tools and resources specifically for your multicultural client with materials in 12 different languages.

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800.854.3643 | www.firstam.com Š2012 First American Financial Corporation and/or its affiliates. All rights reserved. | NYSE: FAF

Dedicated to helping AREAA members grow their business

For nearly 160 years, the Wells Fargo name has stood for reliability, integrity and pioneering innovation. As a responsible lending and servicing leader, we help customers of all financial backgrounds, in all communities, make informed decisions and manage their money.

You can build your business in today’s market and Wells Fargo Home Mortgage can connect you to an entire team of loan specialists with answers to all kinds of homebuyer needs.

Contact your Divisional Diverse Segment Manager to access our network of local representatives.

Brigitte Killings, Southeast AL, DC, DE, FL, GA, KY, MD, NC, OH (Cincinnati), SC, TN, VA brigitte.killings@wellsfargo.com

Olin Chamberlain, Northeast CT, IL, IN, MA, ME, NH, NJ, NY, OH, PA, RI, VT, WV olin.c.chamberlain@wellsfargo.com

Carmen Luna, California CA carmen.e.luna@wellsfargo.com

Rob Wilson, West AK, AZ, CO, NM, NV, OK, OR, TX, UT, WA robert.wilson@wellsfargo.com

Mandala Jones, Central AR, IA, ID, KS, LA, MI, MN, MO, MS, MT, ND, NE, SD, WI, WY mandala.c.jones@wellsfargo.com

This information is for real estate professionals only and is not intended for distribution to consumers or other third parties.

Information is accurate as of the date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. Š 2012 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS942862 2/12-5/12

Spring 2012 Volume 4, Issue 1 O n t h e C o v e r : A villa on the island of Koh Samui in Surat Thani Province, Thailand Šistockphoto/ShutterWorx

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features 18

Purchasing a Luxury Residential Property in Manhattan: The Basics A basic guide to selecting a high-end property, the purchase contract, due diligence, financing and the closing process

By David C. Djaha, Laurie C. Nelson and Garin Muranaka

32

Purchasing Property in Asia We cover basic economic conditions and real estate processes in Thailand, the Philippines, Vietnam, Taiwan and Korea

32

By Juan Gutierrez

50

Trade Mission Journal: AREAA Goes to Vietnam Trade mission delegates share their experiences of forging business relationships, supporting local charities and exploring the nation’s natural wonders

By Arianna Gallegos with contributions by Jim Park, Kathy Tsao and James Lee

50

Prudential real estate Committed to serving the Asian community.

Together, we can help restore confidence in the dream of home ownership.

Proud sponsor of AREAA.

Š 2012 BRER Affiliates Inc. Real Estate brokerage services are offered through the independently owned and operated network of broker member franchisees of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, used under license with no other affiliation with Prudential. Equal Housing Opportunity.

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70

Contents 28

Dodd-Frank Proposed Rule: CMBS at Risk?

Departments 46

Costa Rica

60

Patrick Lieuw: First Asian American President of the Sacramento Association of REALTORS

The credit risk retention or “skinin-the-game” proposed rule could have a damaging impact on the commercial real estate market recovery

By Vijay Yadlapati

30

Credit Reports More Important Than Credit Scores?

A look at the journey from Hong Kong to the presidency

By Jody Wright

The answer is yes, but...

Our resident credit expert explains

By Barrett Burns

44

While All Real Estate is Local, Today’s Buyers May Be International

There is a growing need to become culturally intelligent; this article will help you with pointers on serving the growing Hispanic American, Asian Indian and Asian American homebuying markets

By Darryl Freeman

Central America’s “jewel” has a reputation for welcoming the world including Asian visitors, investors, retirees and businesses

By Allen Lungo

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How the Young Professional Competes in Today’s Marketplace

Using social media and a thirst for knowledge to build success

By Ryan Edwards

6

From the Editor

14

Past Chair Perspectives

24

In My Neighborhood with Kana Kakihara-Oh

In real estate, we often plan for the future...but when was the last time you thought about your exit strategy?

From jobs to new priorities in professional development, AREAA’s past chairs anticipate the impacts of an influx of international business on their local markets

The interior designer shares some of the local institutions that make living easy in Manhattan’s Chelsea neighborhood

AREAA Education Foundation Executive Leadership Institute

A recap from the inaugural class, who completed a leadership program at Columbia University and met with top exectives from Chase and Realogy in New York

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Around the Association

New Year’s celebrations abound and new faces in chapter leadership, plus recently-appointed Executive Director Hope Atuel has a welcome message for AREAA members and Chair Kathy Tsao goes around the association...literally

Adv e r t i s e r s 2012 AREAA National Convention............................................ Inside Front Cover www.areaa.org/convention

Benny Kim, Century 21 E-N Achievers..................................................... Page 49 www.bennykim.net

AREAA Greater Chicago.......................................................................... Page 16 www.areaa.org/chicago

GieFaan Kim, Keller Williams NYC........................................................... Page 23 www.kwnyc.com/giefaan-kim

AREAA Foundation Japan Rebuild Fund.................................................. Page 12 www.areaafoundation.org/japan-rebuild.php

Jay H. Kim, Yoon & Kim, LLP................................................................... Page 23 www.yoonkimlaw.com

AREAA National Facebook Page............................................................. Page 63 http://facebook.com/areaa.national

Kenneth Li, Century 21 Southwest Real Estate........................................ Page 58 www.kennethli.com

AREAA Southern California Tri-County..................................................... Page 26 www.areaa.org/trico

John P. Lin, CapStar Commercial Realty.................................................. Page 27 Phone: 240-813-2088

AREAA Trade Mission to Thailand............................................................ Page 22 http://areaa.org

Kelley Liu, Keller Williams Realty Plano..................................................... Page 58 www.DFWirealty.com

Bank of America ...................................................................................... Page 13 www.bankofamerica.com/myhome

LSI - A Lender Processing Services Company........................................... Page 1 http://www.LSI-LPS.com/

Central Escrow........................................................................................ Page 17 www.centralescrow.com

Loan Modification Scam Alert.................................................................... Page 9 www.loanscamalert.org

Rita Chen, Presidential Real Estate, Inc................................................... Page 56 www.ritachen.com

National Association of REALTORS速................................................. Pages 38-39 www.realtoractioncenter.com

Terry Cooper, Realogy............................................................................. Page 56 www.realogy.com

Julia Yong-hee Park, Esq., Law Offices of Julia Park, LLC....................... Page 57 www.juliaparklaw.com

Edwin Covarrubias, Smooth Sailing Realty & Property Management........ Page 56 www.SmoothSailingRealty.com

Prudential Real Estate................................................................................ Page 5 www.PrudentialRealEstate.com

Dai & Associates, P.C......................................................................... Back Cover www.daiassociates.com

RE/MAX Fine Homes................................................................ Inside Back Cover LeeAnn@CanadayGroup.com / Christina@FindOCHomes.net

Trang Dang-Le, Keller Williams Realty Plano............................................ Page 58 www.trangdangle.com

Shinglian Associates................................................................................ Page 26 www.Shinglian.com

theEDGE................................................................................................. Page 59 http://areaa.org/EDGE

Charlie Suh, RE/MAX Tri-City................................................................... Page 49 CharlieSuhRealtor@gmail.com

Daniel C. Eng, Engvest Realty.................................................................. Page 58 www.engvest.com

Nancy Suvarnamani, Century 21 S.G.R., Inc........................................... Page 57 www.Century21SGR.com

First American Title Insurance Company, Strategic Markets Division.......... Page 2 www.firstam.com

Kathy Tsao, Prudential Douglas Elliman......................................... Pages 27 & 57 ktsao@elliman.com

Hanmi Escrow......................................................................................... Page 49 hanmiescrow@sbcglobal.net

Wells Fargo Home Mortgage..................................................................... Page 3 www.wellsfargo.com/mortgage

HSBC........................................................................................................ Page 8 www.hsbcpremierusa.com/world

Wilshire State Bank................................................................................. Page 49 www.wilshirebank.com

Kana Kakihara-Oh, DeArch LLC.............................................................. Page 57 www.dearchny.com

Lidia Yun, Presidential Real Estate, Inc..................................................... Page 56 www.presidentialinc.com

For advertising rates and information, visit: http://areaa.org/a-r-e 7

Even citizens of the world need a place to call home.

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Buying a home on any latitude can be challenging. With HSBC Premier, you have access to one of the world’s most comprehensive global banking services — as a Premier client, a Premier Relationship Manager will work with a team of specialists to tailor a plan customized for you. In the U.S., our exclusive HSBC Premier mortgages1 offer: • Our best rates 2 on jumbo and conforming mortgages with fixed and adjustable rate (ARM) options3 • Access up to $5 million in financing4 • Mortgage options for international borrowers with qualifying visas These are just a few of the unmatched benefits available to HSBC Premier clients.

To learn more, call a Premier loan officer, stop by your nearest branch or visit hsbcpremierusa.com/world.

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To qualify for an HSBC Premier relationship, you need to open an HSBC Premier Checking account and maintain $100,000 in combined U.S. personal deposit and investment balances. Business owners may use their commercial deposit and investment balances to qualify for a personal Premier relationship. A monthly maintenance fee of $50.00 will be incurred if minimum balance requirements are not maintained. Premier customers will need to maintain combined personal and/or qualifying commercial deposit and investment balances of at least $100,000 USD or equivalentat HSBC (in the U.S. or home country) to be eligible for Premier mortgages.

1 Available in the 48 contiguous United States and Hawaii. Excludes Private Bank offerings. Premier Mortgages are not availablein all countries.

2 Discounts and loan amount depend on specific program and may require certain Premier balances, reserves, equity and automaticpayment from a Premier checking account. Programs are subject to change.

3 Interest rate may increase per the terms stated in your note, and for both Fixed and Adjustable Rate options in the event youcease to maintain a required Premier relationship with HSBC Bank USA, N.A. 4 HSBC Premier Deluxe Mortgage, which has additional requirements, is available up to $5 million. Borrowers must meet program qualifications. Excludes Private Bank offerings.

United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may besubject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts (including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts (“FBAR”))). U.S. persons should consult a tax adviser for more information.

Deposit products offered in the U.S. by HSBC Bank USA, N.A. Member FDIC. © 2011 HSBC Bank USA, N.A. Home Equity and mortgage products offered in the U.S. through HSBC Mortgage Corporation (USA) and are subject to credit approval. Geographic and other restrictions apply. Programs subject to change.

Equal Housing Lender.

Issued by HSBC Mortgage Corporation (USA) © HSBC Mortgage Corporation (USA) 2011

To access resources in additional languages, follow the links below:

中文 (Chinese):

http://www.loanscamalert.org/chinese.aspx

한국어 (Korean):

http://www.loanscamalert.org/korean.aspx

Tiếng Việt (Vietnamese):

http://www.loanscamalert.org/vietnamese.aspx

Spring 2012

Volume 4, Issue 1

Ed ito r- in - Ch ief Dan T. Shanyfelt

Creati ve Directo r

Ed itor Ivan Choi

Praveen K. Sharma

Associate Editor

Ed ito rial Boar d

Joseph Lai

Darren Lennemann

Caron Ling

Meredith Magee

is a publication of the Asian Real Estate Association of America (AREAA), a national nonprofit trade organization dedicated to increasing sustainable homeownership in the Asian American community. For more information visit: http://areaa.org. Š2012 by the Asian Real Estate Association of America.

Reproduction in whole or part without permission is prohibited. Opinions expressed by individual authors are not necessarily the opinions held by AREAA. Direct article submissions and advertising inquiries to: Praveen Sharma | a-r-e@areaa.org Office: Asian Real Estate Association of America 5963 La Place Court, Suite 312 Carlsbad, California 92008 760-918-9162 Phone 760-585-1397 Fax Previous issues available online at: http://areaa.org/a-r-e

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F r o m t h e Ed i t o r

Future.

Market, cold call, door knock, write the offer, manage the escrow, close the transaction… and repeat.

We all know this process very well, but without an exit strategy it will continue in perpetuity.

This term is often overused in mainstream communications and media when discussing the hot topics that affect our profession: the future of housing and inventory levels, the future of GSEs, the future of FHA financing, the future of the political landscape...

The one future most do not spend nearly enough time analyzing is their own financial future. I would estimate that roughly 80% of real estate professionals I know surprisingly do not have an exit strategy.

Traditional thinking directs real estate professionals to set goals for transactions and volume each January and celebrate when they are met in December. Market, cold call, door knock, write the offer, manage the escrow, close the transaction…and repeat. We all know this process very well, but without an exit strategy it will continue in perpetuity. What happens if or when the pipeline runs dry? Are you prepared?

While a career in real estate yields many fruits, our occupation does not come with a built-in retirement plan – so we need to create one. Many agents have wisely set up retirement accounts, invested in the stock market or have money managers, but why invest through someone when you are already built for the business? With the number of former property owners being forced into the rental market due to foreclosure, the demand for rentals has increased substantially. This, along with the increased number of distressed properties unable to qualify for financing, has created a unique opportunity for investment opportunity in the rental space.

Cash-flow real estate investing is again gaining traction not only with the local investors but with the large hedge funds and international money managers.

In a recent interview with CNBC, Warren Buffet said that if it were possible, he would purchase “a couple hundred thousand single-family homes” referring to the single family housing market as “a very attractive asset class”.

The housing market is already turning – with regards to cash flow properties – as the returns are sometimes 10x - 20x greater than what investors are earning in a traditional investment vehicle.

Although the competition is growing stronger with each passing day, there is still time for you to get involved because as an agent, you have two big advantages: 1. If you are reading this, then you already belong to AREAA. With your membership, you have discounted access to our national conventions in New York and Las Vegas, which feature classes and workshops dedicated to developing your investing skills and network. Whether it is trustee sales, rental management, or global investment – you will have a great opportunity to learn from those already on those paths. People pay tens of thousands of dollars to be exposed to what you have access to as an AREAA member.

2. You are already the ultimate insider! We as real estate professionals are in the trenches on a daily basis. We live in these neighborhoods, we know the local market trends, and we feel the pulse of the ever-changing market. Take this knowledge, this power, and wield it to not only help your clients, but yourself and your family in the long run.

Remember, you picked an occupation that is a roller coaster ride at times – there are always going to be peaks and valleys. Do you really want to sell forever? What determines your long-term success and future is not how much commission you earn, but what you do with it.

Dan T. Shanyfelt Editor-in-Chief magazine

11

DONATE TO HELP REBUILD

JAPAN

BY MAIL:

ONLINE:

INSTANTLY:

MAKE CHECK OUT TO:

AREAA FOUNDATION EARTHQUAKE RELIEF FUND 5963 LA PLACE CT, STE 312 CARLSBAD, CA 92008

www.areaafoundation.org

Through the establishment of the Japan Rebuild Fund, the AREAA Foundation is working to support the long term rebuilding of Japan’s housing stock that has been destroyed by the recent devastation. All donations received* will go towards efforts to rebuild homes in Japan and are tax deductible. *Please note that online donations are subject to a transaction fee imposed by Paypal and the full remaining amount will be added to the fund.

AREAA Foundation Japan Rebuild Fund

WWW.AREAAFOUNDATION.ORG

Helping you answer your clients’ questions about homeownership Bank of America provides consumers with homeownership information, education and resources to become successful homeowners. We want to assist you in answering some frequently asked questions as you work with clients in your community. Here are some typical questions and how you can respond:

Q: How do I know if I’m ready to buy a home?

A: First, decide whether homeownership fits

into your larger financial plan. Consider asking yourself the following questions: Do I have a budget and can I comfortably afford homeownership?

Would buying a home mean stretching my financial limits?

Where can I make changes in my budget to keep it more balanced?

Q: What should I do to improve my credit?

A: Obtaining your credit report and knowing

your credit score is the first step to improving your credit. A credit score is calculated using five key factors from your credit report: The amount that is owed on your debt The timeliness on paying your debts The length of your credit history, taking into account the age of your oldest account New credit accounts and inquires

Will I still be able to save enough money for other opportunities or unexpected emergencies?

The types of credit in use, whether credit cards, installment loans or other accounts

In my current situation, is now the right time for me to buy a home?

Q: What are the steps I need to consider when applying for a home loan?

Where can I take a homebuyer education course to ensure I am ready for homeownership and understand the home loan process?

A: In general, there are three steps:

Q: What factors will lenders consider when I apply for a home loan?

A: Lenders consider a variety of factors; however, there are three main areas lenders review when prequalifying you for a loan: Debt-to-income ratio Credit score Down payment funds

Bank of America, N.A., Member FDIC.

Knowing your budget and what you can afford Understanding how your credit may affect you and your interest rate Learning about the different types of loans that may be available to you It’s also very important to understand the various documents you will need to submit at the time of application. A Bank of America mortgage loan officer can assist you through the process. Also, the Home Loan Guide, located at bankofamerica.com/myhome, can be a helpful resource to guide you through the home loan process.

Equal Housing Lender.

© 2011 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply.

This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

ARY2G4Y0 11-2011

Q: When should I reach out to a mortgage loan officer? When I’m looking for a home or after I’ve found a home to purchase?

A: While our mortgage loan officers (MLOs) are always available to help you with your home buying journey, we encourage you to reach out to an MLO before starting your home search.

The MLO will be able to help you determine how much of a house you can comfortably afford. Not only can the MLO walk you through the home loan process, but the MLO can also tell you about resources that may be available for financial assistance and/or educational resources and tools that may be of benefit when purchasing a home.

Q: Where can I find contact information to locate a local Bank of America mortgage loan officer?

A: You can go to bankofamerica.com/myhome to locate a mortgage loan officer near you. You can choose to speak to someone via phone or meet with a mortgage loan officer in person.

Q: If I can’t buy a home right now, what should I do to prepare myself?

A: You should save up for a sufficient down payment and consider setting up a separate savings account for your down payment fund.

You should also make a habit of depositing money on a regular basis into that account.

What do you feel the impact of an influx of international business will be on your local market?

J o hn W o ng 2004-2005 San Francisco, California

W

Past chairs share their opinions

A lle n Okam oto 2006-2007 San Francisco, California

T

he National Association of REALTORS announced that in 2010 the volume of international residential real estate sales in the United States was $66,000,000,000. In 2011 it increased to $82,000,000,000. Due to the strength of Asian currency and other factors it is expected that this number will increase for 2012. The San Francisco Bay Area has always been a natural destination for Asian visitors and investors. The population growth rate of Koreans, Filipinos and East Indians has exploded in the Bay Area and this results in more activity in the real estate market.

I truly appreciate the work that the Asian Real Estate Association of America is doing in cultivating the international market. The future is bright for AREAA members doing international business.

hen reporter Mitch Ohnstad asked Willie Sutton why he robbed banks, Sutton is reputed to have answered “Because that’s where the money is.” I am certainly not advocating robbing banks, but Sutton’s answer is a reason to build international into your real estate business.

There exists great wealth overseas that is actively looking for real estate purchase opportunities in every part of the United States. The reasons are many. The buyer might have a child going to school in the U.S. and it makes sense to buy a place for the student to live in. The buyer may be looking for a vacation home. It may be as simple as, real estate is priced better than that which they can purchase in their home country.

Whatever the reason, communities in local markets benefit from a current common characteristic of many of these purchases. Many are “all cash” purchases, and when a new owner is paying all cash, they have total “skin in the game.” It is in their best interest that the community where they purchased their home thrives. These ownerships can also be job creation drivers. A significant number of the current sales are not owner-occupant purchases and these generate the need for good property managers and other skilled professionals to maintain the property.

Real estate markets are local, but stability is strengthened when there is a global reach. You, as a real estate professional, can be key for bringing these international dollars into your local communities.

E mi ly Mo er do m o F u 2008 Atlanta, Georgia

A

tlanta hosted the 100-year anniversary of the summer Olympics in 1996, the world has come to know Atlanta since then. Fourteen Fortune 500 companies have their global headquarters in Georgia. The state is also home to the world’s busiest passenger airport. A growing number of investors from Asia are particularly attracted to this area and an influx of international investment would create new jobs and boost the local economy. Our real estate community, representing very diverse cultural backgrounds and languages, welcomes international investors with open arms and southern hospitality.

14

A lle n C H ian g 2009 Los Angeles, California

T

he Los Angeles and Orange Counties already see a great deal of international business. An influx would strengthen our relationships with our investors abroad and create new opportunities for the real estate professionals who have the experience and relationships to serve these investors. It also has the potential to significantly reduce our distressed asset inventory and ultimately rebuild communities.

J o hn F uku da 2010 Las Vegas, Nevada

K e n n eth L i 2011 Houston, Texas

H

ouston was No. 1 in the nation for job growth in 2011. International trade and the expansion of the Port of Houston continue to fuel the city’s dynamic economic upswing in 2012. “The Asian population is the fast[est] growing rate among all races in Houston…” Dr. Stephen L. Klineberg of Rice University stated at an Asian Chamber of Commerce luncheon last month.

I can personally feel the impact of international business by receiving referrals, emails or calls from Chinese manufacturers who would like to expand their business in Houston and set up U.S. operations by leasing warehouses, offices, and relocating key employees and hiring local U.S. workers in the past few months. The local real estate professionals, like AREAA members who know the culture, the language and have the real estate expertise, will definitely be great assets and connections to these international businessmen. EB-5 centers and investment visas are always the topics of interest from foreigners. Buying U.S. property is still the “dream come true” of many international buyers.

The impact of international business is growing fast in Houston; however, the prosperous local economy is certainly the major impact to Houston’s market and plays a significant role. Houston has been very fortunate and blessed as the leading job market in the past few years and ranks the third largest metro area in the nation.

A

typically, two disparate markets are local for me: the beach cities of Southern California and the bright lights of Las Vegas, Nevada. Neither of these geographies ranks in the top five markets for foreign investors, lagging far behind perennial favorites such as New York and Washington, D.C. That said, foreign investors overwhelmingly ranked the U.S. commercial real estate market as their #1 choice for investment this year and viewed it as the best opportunity for price appreciation. If however, you are not a specialist in commercial properties such as apartments (#1), retail (#2) or hotels (#3), you may not be positioned to capitalize on the influx of foreign investment. Make sure 2012 is the year of education, technology and diversification. As far as the impact on our communities? Transactions create activity and activity creates jobs, and with the unemployment rate above 12% in both of my local markets, job creation is always a good thing.

15

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SELECTING THE PROPERTY: TOWNHOUSE, CO-OP OR CONDOMINIUM?

Davi d C. Djaha, Laurie C. Ne l so n and Garin Muran aka 1 Photos courtesy of

the Jacky Teplitzky team / Prudential Douglas Elliman

D

ue to the combined impact of the U.S. financial crisis and the fluctuation of the U.S. dollar’s strength relative to other currencies, the price of residential real estate in most U.S. cities declined significantly over the past several years.

The Manhattan high-end residential market, dominated by townhouses and condominium and cooperative apartment units, has mirrored this trend2. The resulting value opportunities have in turn spurred increased buying activity in the Manhattan luxury residential market3, notably among non-U.S. high net worth individuals, who have historically been major players in that market.

Brokers, of course, understand that non-U.S. persons planning a purchase of real estate in the U.S. will encounter customs and practices that often have no practical equivalent in their home country. This article is intended to serve as a basic guide to acquiring a high-end residential property in Manhattan, although some of the information set forth below may be applicable to other situations and locations. Whether the chosen property is a townhouse, a co-op or a condominium, a non-U.S. purchaser should consult with counsel and tax advisors as to an appropriate acquisition structure4. A discussion of U.S. estate and gift tax structuring considerations and U.S. federal income tax planning is beyond the scope of this article, but it must be noted that a taxefficient structure should be adopted prior to the acquisition.

The first step for any purchaser is identifying the residence to be acquired.

It is important that your clients understand the differences among three types of property: townhouses, co-operative (“co-op”) apartments and condominium apartments. Manhattan townhouses, including one or more dwelling units, can be attractive to investors interested in a luxury acquisition for personal use with the additional potential of rental income. A fee interest is conveyed when acquiring a townhouse. In a co-op, on the other hand, a purchaser does not actually acquire fee title to real estate, but instead owns shares of stock in the co-operative housing corporation that in turn holds title to the land and building. In addition to shares of stock, the purchaser is also granted a long-term proprietary lease, which grants the purchaser the exclusive right to occupy the unit and use its appurtenant common elements, including “limited” common elements (such as a unit’s terrace) and “general” common elements (such as lobbies, corridors, roof gardens and storage rooms). Shares of stock and interests in common elements will be allocated to a unit based on its size. Owners pay monthly common charges (“maintenance”) to the co-op corporation to cover operating expenses (including debt service) of the building, a share of real estate taxes assessed to the building, and certain utilities used in the unit. Some of those common charges will be tax deductible by the owner. However, monthly maintenance charges in co-op buildings are often much higher than in condominium buildings, which is generally due to the inclusion of the unit owner’s share of payments on the underlying building mortgage and real estate taxes payable on the entire building. In contrast, a condominium unit owner (discussed in more detail in the following paragraph) typically pays its real estate taxes directly to the municipality, and condominium buildings do not carry significant underlying mortgage financing, so maintenance charges in condominium buildings do not include these amounts and are dramatically lower. A negative aspect of owning a co-op is that onerous (and sometimes capricious) restrictions may be imposed by the co-op board on who will be allowed to purchase a unit in the building, whether the unit can be subleased and to whom, and how much financing a purchaser is permitted to obtain.

Due to these restrictions, prospective purchasers often find that the purchase price of a co-op is lower than the price of a comparable condominium unit5.

Because ownership of a co-op is not, per se, the ownership of real estate, and the purchaser will not need to buy title insurance, closing costs paid by the purchaser will also generally be lower than those for the purchase of a townhouse or condominium. On the other hand, co-ops are often found in older buildings, so engineering, architectural and contractor’s costs for renovations may need to be factored in to the purchase price analysis; in such case, the need to obtain co-op board approval of proposed renovations must be considered in the purchase contract.

Condominium units constitute real estate in the traditional sense; the purchaser will receive a deed at the closing, and the unit will be separately assessed for real estate taxes. Most new residential buildings in Manhattan are constructed as condominiums. Condominium purchasers do not have to be approved by the board of managers of the condominium association (although the board may still need to receive an application), which is traditionally considered one of the reasons that non-U.S. purchasers find condominiums more attractive than co-ops. In addition, condominiums can be freely sublet, generally impose lower monthly maintenance charges (as discussed above), and the purchaser’s ability to obtain financing is generally not restricted by the condominium association.

The authors wish to thank Brian Bassett for his advice in preparation of this article.

The median sales price for Manhattan luxury apartments has fallen from a peak of $4,950,000 in the second quarter of 2008 to $4,150,000 in the fourth quarter of 2011, which marks a modest rebound from a low of $3,780,000 in the fourth quarter of 2009. Source: Miller Samuel, www.millersamuel.com.

3 The number of sales within the Manhattan luxury market increased from 239 in the first quarter of 2011 to 311 in the third quarter, but economic uncertainties abroad may have been a partial cause of the decline to 201 in the fourth quarter of 2011. Source: Miller Samuel, www.millersamuel.com.

4 Personal liability and confidentiality are also valid concerns in selecting an acquisition structure. Counsel should be consulted for specific advice on these matters.

5 For example, in the fourth quarter of 2011, the median sales price for Manhattan co-ops was $636,407, while the median sales price for Manhattan condominiums was $1,165,000.

Source: Miller Samuel, www.millersamuel.com.

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THE NEXT STEPS: THE PURCHASE CONTRACT, DUE DILIGENCE and FINANCING The Purchase Contract After the property to be acquired is identified, the purchaser has made an offer and the seller has accepted it, the selling broker (or sponsor’s sales agent, in the case of a new development) will generally prepare a nonbinding “term sheet” detailing the material terms of the accepted offer (including the purchase price, deposit amount and the approximate closing date), and reciting key conditions to the actual closing (typically including negotiation and signing of the purchase contract, satisfactory completion of the purchaser’s due diligence process, the purchaser’s receipt of board approval (if applicable) and a sufficient financing commitment from a lender (if applicable))6. It is customary for the seller’s counsel then to prepare a draft purchase contract for review and negotiation by the purchaser’s counsel, which process often occurs at the same time that the purchaser is evaluating the acquisition structure for tax planning purposes. If the purchaser contemplates acquiring the property in a trust or corporation, the purchase contract will need to be executed by that entity, or by the individual purchaser with an express provision in the contract that expressly permits the purchaser to assign its rights in the contract to a trust or corporation.

Among the key components of the contract are: (a) a legal description of the property, (b) the purchase price, (c) the amount of the contract deposit, and the circumstances under which it may be refundable to the purchaser, (d) a

description of any fixtures, appliances, and furniture included in the sale, (e) any rights of the purchaser to terminate the contract upon the failure of certain contingencies (including due diligence, financing or a casualty loss), (f) any required conditions or consents to the purchase (such as board approval), (g) representations and warranties from each party, (h) the details of monetary adjustments (pro-rations) to be made between the seller and the purchaser at the closing (such as real estate taxes, utility charges, and maintenance in a co-op or condo purchase), and (i) an allocation of closing costs between the seller and the purchaser. A crucial portion of the purchase contract is the remedies section. The purchaser must ensure that, if the seller fails to transfer the property due to a breach of the contract, the purchaser can seek a court order requiring the seller to sell the property to the purchaser (“specific performance”). At the same time, the purchaser will want to ensure that if purchaser breaches the contract, the purchaser’s liability will be limited to the loss of the contract deposit.

Once the contract is fully executed, the purchaser (assisted by its broker) will submit a purchase application to the building managing agent (for purchases of a co-op or condo). In a co-op building, this application will require disclosure of personal information, provision of character and bank references, and submission of proof of net worth. A personal interview is also usually required by the co-op board. Condominium purchase applications are generally less onerous, but personal and financial information is still likely to be required. The process of obtaining approval from a co-op or condominium board typically takes four to six weeks.

Continued on page 20 » 6

In residential transactions, the purchaser and seller rarely sign this “term sheet”.

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Due Diligence

Financing

An essential part of any purchase of real estate is conducting appropriate due diligence.

Generally, an offer to buy a property will be more favorably considered by the seller if the offer is not contingent on the purchaser obtaining financing, so even if financing is contemplated, the purchaser may prefer not to require that the receipt of financing be a condition to closing. If financing is to be obtained, additional costs will be payable by the purchaser to the lender and the purchaser will also be liable for payment of New York State and New York City mortgage recording tax, discussed below.

Where the property is a co-op or condominium, purchaser’s counsel will review the offering plan (prospectus) for the building, recent financial statements and board minutes. Among other things, these contain important disclosures about the property and the unit, provide information regarding assessments and the status of underlying mortgages and reserves, and indicate potential restrictions on use or alterations. If the property is a townhouse or condominium, purchaser’s counsel will request that a title insurance company prepare a title commitment, including an initial search of public records (to confirm the seller’s right to sell the property and determine, among other things, whether any restrictions or liens affect the property). A title search can be performed for a co-op unit but the useful information derived will be limited in scope, and title insurance is not commonly obtained. When the purchase of a townhouse is involved, the purchaser’s counsel will also review a survey (a plan showing the location of property lines and all visible improvements on or near the property) to identify encroachments or other legal matters that might affect the value of the property. The purchaser should also have a home inspection performed by an inspecting engineer, because the property will typically be sold “AS IS”, with very limited (or no) representations or warranties as to condition. While the purchase contract will require that purchaser receive good title to the property on the closing date, as evidenced by the issuance of a title insurance policy, other contingencies will expire sooner. For example, a residential purchase contract typically provides no more than ten days to complete a home inspection and exercise a termination right if the inspection is unsatisfactory.

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The Closing There are different methods of closing a real estate acquisition in the U.S. Escrow closings, which are common in acquisitions of commercial real property and in residential transactions in California and other western states7, are uncommon in closings of Manhattan co-op and condominium units, due to the typical closing requirements of the co-op or condominium association (and lenders, if applicable). In Manhattan residential transactions, if an escrow closing is not available, the parties typically conduct a traditional “sit-down” closing as a matter of custom, where the seller and purchaser, their attorneys and usually, a representative of a title insurance company, meet in one central location (often the lender’s or seller’s In an escrow closing, the principals do not meet; the closing documents are signed by each party separately and held by a mutually designated escrow agent (often a title insurance company) until all documents and funds are received. The escrow agent is then instructed to release the documents and wire funds to the appropriate parties, and the title insurance company will record all required documents in the appropriate land registry.

7

attorney’s office, or in the case of a co-op or condominium purchase, the office of the building’s managing agent). At the closing, the principals will sign closing documents in the presence of a notary, and the purchaser will deliver the closing funds. If the purchaser is not planning to be present at the closing, the closing documents can be prepared ahead of time and sent to the purchaser for signature in advance. In certain instances, a power of attorney can be granted to a representative of the purchaser who will be physically present at the closing and execute documents in the purchaser’s stead. Certain closing documents, if signed outside of the U.S., will require either commercial notarization or an apostille (or in some cases, a consular notarization) in order to meet the requirements of the New York City Register, which is the government office where certain closing documents will be recorded or filed.

Note that in Manhattan8, closing costs customarily include New York State and New York City transfer taxes9, brokerage commissions (typically paid by the seller), recording charges, mortgage recording tax10, title insurance

premiums for the purchaser’s title insurance policy11, the purchaser’s financing costs (including any loan assumption fees), the purchaser’s due diligence costs, the parties’ respective legal fees, and the pro-rations allocated between the parties pursuant to the purchase contract.

The moment the closing occurs (as evidenced by receipt of closing funds by the seller and transfer of ownership to the purchaser), the purchaser will own the residence. As such, it is important that property insurance be arranged prior to the closing date. The non-U.S. purchaser may also want to consider engaging a property manager to attend to payment of monthly charges and real estate taxes, to coordinate renovations to the residence, and in the case of a co-op or condominium unit, to liaise with the building managing agent as necessary when repairs are needed or emergencies arise. Some weeks after the closing, the purchaser can expect its counsel to provide a set of final closing documents that the purchaser can use for its tax and accounting purposes.

Please keep in mind that each U.S. state (and many local jurisdictions) will have specific requirements as to documentation and conveyance taxes, and local customs applicable to closings of real estate acquisitions can vary widely.

9 These taxes are generally paid at closing by the seller pursuant to New York law, subject to any contrary agreement in the purchase contract. When purchasing a co-op or condominium unit from the developer (sponsor), the purchaser can expect to be required to pay all transfer taxes, although this is sometimes negotiable. The NY State transfer tax rate is presently $4 per $1000 of purchase price; the New York City transfer tax rate for residential properties with a contract price over $500,000 is presently 1.425%. In addition, New York State imposes a “mansion tax” on purchasers of any residential real property with a price in excess of $1,000,000; the tax rate is 1% of the entire purchase price.

10 If the purchaser is obtaining financing, it will be required to pay a lump-sum mortgage recording tax at the time of closing; if the mortgage is in excess of $1 million, the tax rate applicable in Manhattan is 2.175%. This tax is not levied on financing obtained on a co-op apartment.

11 This premium is payable by the purchaser one time, at closing, and is calculated with reference to the purchase price. The rates are prescribed by New York regulatory authority, and are not negotiable. Title insurance is generally not purchased on co-op units. If the purchaser is obtaining financing for the purchase of a townhouse or condominium, the purchaser will also be required to purchase a title insurance policy for its lender.

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Jay H. Kim

_________________

Partner

Jay H. Kim is a real estate attorney whose practice areas include commercial and residential real estate transactions, lender representation, commercial and residential leasing, condominium and cooperative law and litigation.

Mr. Kim received his Bachelor of Arts from Cornell University in 1997 and his Juris Doctor from St. John's University School of Law in 2000, as the recipient of the Sir Thomas More full-tuition scholarship. Mr. Kim is admitted to practice law in the State Courts of New York, as well as the United States District Courts for the Eastern and Southern Districts of New York. Mr. Kim currently represents private and commercial landowners, commercial entities, condominium and cooperative boards, developers, commercial and residential lenders, and individual home-owners.

WWW.YOONKIMLAW.COM

JKIM@YOONKIMLAW.COM

GieFaan Kim

___

Yoon & Kim, LLP 11 East 44th Street Suite 500 New York, NY 10017 Tel: (212) 584-0058 Fax: (212) 584-0059

Assoc. Broker

GieFaan Kim, originally from Philadelphia, attended NYU and graduated Cum Laude with a Bachelor of Arts degree. Real estate has been his full-time focus since Day One. GieFaan believes in catering to each individual’s needs accordingly and whether working with an experienced investor or first-time home buyer, accurate and up-to-date market analysis is an essential educational tool. Aside from the standard market data available at hand, he is able to provide additional unique insight from data tracking of the Bracha Group’s own exclusive inventory.

GieFaan has been living in NYC since 2001 and proudly calls it home. He also owns a condominium in Flatiron and continues to expand a portfolio of properties. .

Founding Member of KWNYC

Managing Director of Bracha Group AREAA Edge MetroNY Ambassador .

725 Fifth Avenue - Trump Tower 19th Floor New York, NY 10022 212.707.8188 .

GKIM@KWNYC.COM

WWW.KWNYC.COM/GIEFAAN-KIM

AREAS OF EXPERTISE - Investment Sales, New Developments, Luxury Condominiums, and Relocation.

WALL STREET JOURNAL and REAL TRENDS name Bracha Group #2 Team in the USA 2011

d y o o m In ghborh a Nei n a K h o a r a h i Kak with

Neighborhood: City:

What’s the number one selling point that residents and buyers rave about?

The diversity proposition of Manhattan is the #1 selling point for residences that reside within the borough.

Manhattan has so much to offer for single people when it comes to entertainment, food, dating and business career opportunities. Manhattan is also a great place to raise a family with great exposure to the different cultural opportunities with some of the best schools in the city. There are so many great places to visit including museums, theaters, concert halls and parks. Manhattan is known for being one of the best places in the United States for senior living. You can have a manageable sized apartment with a doorman in the cultural heart of America with full access through public transportation or walking.

What is your favorite way to spend an afternoon with the family here?

Chelsea

Manhattan, New York 1993

Resident Since:

With numerous attractions, including the High Line, Hudson River Park, Chelsea Piers, Chelsea Market, a variety of art galleries and diverse architecture, Chelsea is one of the most exciting and family-friendly neighborhoods in Manhattan. That’s why interior designer Kana Kakihara-Oh loves living and working here.

What attracted you to this part of town?

We love to spend our weekends on a picnic in Central Park with our 4-year-old son enjoying a Japanese lunch box prepared by myself. Our favorite places to visit are the zoo and the animal rescue to see the different animals. We enjoy taking in a free concert, outdoor movie or a live play in the park. However, the greatest part of Manhattan is the changing of the seasons. In the spring we enjoying walking or cycling through the park while the cherry blossoms are blooming. During the summer everything is so green and the sun seems to never stop shining. As the leaves turn to their autumn colors in the fall every view is picturesque. When winter sets in my 4-year-old son can’t wait to play in the snow and of course try to ice skate.

The cultural diversity has always been my greatest attraction to Manhattan. You can meet people and are exposed to art from all over the world. This dynamic and exciting experience gives me the inspiration and motivation for my design business. Manhattan is the ideal place for us to have an architectural interior design company. The large metropolitan city makes us feel at home, since I am from Tokyo, Japan and my husband is from Seoul, South Korea.

Chelsea Market

Photo by Kana Kakihara-Oh

The High Line

Photo by Kana Kakihara-Oh

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Songquan Deng/Shutterstock.com

Central Park

What is the predominant architectural style?

ben bryant / Shutterstock.com

Chelsea’s architectural style was originally a combination of Greek revival, Italianate and Georgian styles. Recently, notable architects, with diverse new architectural styles, have built many hi-rise residential projects and mixeduse buildings. The old and new styles combined tell a story of the history and prosperity of the city.

Museum of Modern Art

types of specialized restaurants such as noodle bars, yakitori bars, sake bars, sushi bars, dessert bars or Tokyo style Italian restaurants. NYC restaurant week occurs bi-annually, during the winter and summer, which allows the average New Yorker a chance to experience a greater range of restaurants at a reduced price.

Is there a community or cultural center that you often visit?

Where does Kana Like to...

Get a cup of coffee?

Le Pain Quotidian [ Park Ave x 30th St ]

Read a book?

Food Park & Bar Basque // Eventi Hotel [ 6th Ave x 30th St ]

Get some peace and quiet?

High Line // Chelsea [ 10th Ave x 14th – 30th St ]

I am a member of the Business Women’s Committee of the Japanese American Association of NY, where Japanese women business owners support each other. I registered my design company as a Minority and WomenOwned Business Enterprise (MWBE) under different government organizations. I often visit a government business advisor to discuss how our company, as Asian women-owned, can contribute to Asian communities.

Shop?

Do you volunteer with any local organizations/ causes?

Watch the big game?

I am one of the local Japanese parent’s association chairs at my son’s preschool in Manhattan. Through PA activities, I often volunteer supporting the community and school. As part of these activities, I introduce Japanese culture to children, such as origami.

I also continue activities supporting Japanese earthquake victims with local mothers and children.

MoMA Store // Museum of Modern Art [ 5th Ave x 57th St ]

Find a good deal?

Lobster Place // Chelsea Market [ 9th Ave x 15th St ]

See live music?

Jazz at Lincoln Center // Columbus Circle [ Broadway x 60th St ]

Gyu-Kaku East Village // Cooper Square Chelsea Brewing Company // Chelsea Pier

Go out for date night?

Sakagura // Sake Bar [ Near Grand Central, 2nd – 3rd Ave x 43rd St ] Greenwich Grill // Tokyo Style Italian Restaurant [ Near Tribecca ]

Watch a play/show?

Broadway Shows // Times Square [ Broadway x 42nd St ] Metropolitan Opera // Lincoln Center

Enjoy the great outdoors?

What are the food trends in the neighborhood?

There are so many great choices when it comes to restaurants in Manhattan with a wide price range. The abundance of multi-cultural restaurants is appealing to me. The competitive restaurant market creates high quality, specialized food with exceptional interior décor.

Let’s take Japanese food for example. There are many

Chelsea Piers [ 23rd Street x the Hudson River ]

Bryant Park

Have fun for free?

Music Concert // Madison Square Park Outdoor Movie & Ice Skating // Bryant Park

Have a glass of wine?

SeanPavonePhoto / Shutterstock.com

La Piazza in Eataly [ 5th Avenue x 23rd Street ] 25

From New York to the World

For Expertise In The New York Metropolitan Area With over 15 years of experience, working with buyers and sellers from around the world, Kathy Tsao has specialized in the sales, marketing, and property management services of luxury condos, single and multiple family homes. From advising developers and investors, to individual buyers, she has the managerial and leadership experience to deliver.

Kathy Tsao 曹凱西 ktsao@elliman.com 212.891.7788

曹凱西專精紐約大都會地區的房地產，從對開發商和投資者提供諮詢， 到對個人購房者提供豪華公寓，單/多戶住宅的購買，銷售，和物業管 理，有超過 15年專業經驗，服務來自世界各地的買家和賣家。

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DODD-FRANK PROPOSED RULE:

CMBS AT RISK?

By: Vijay Yadlapati

NAR Associate Commercial Policy Representative

ISSUE

Since the peak of the financial crisis, there have been a number of regulatory proposals and actions such as Basel III bank capital standards that could be harmful for the commercial real estate market recovery. However, one regulatory issue in particular that could have an even more damaging impact on the industry is a credit risk retention or “skin-in-the-game” proposed rule by U.S. regulators.

O RIGIN

The proposed rule is a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Act), signed into law last year, which tasked six U.S. banking agencies to establish rules that would require any entities that securitize mortgage loans to retain an economic interest in a portion of the credit risk. The Act generally requires five percent risk retention for most asset classes; however, the law gives federal agencies broad authority to identify the acceptable types, forms, and amounts of risk retention for “low credit risk” commercial and multifamily mortgages.

PR O P O SE D RULE

The agencies’ proposed rule outlines low credit risk underwriting standards that would permit asset-backed securities backed exclusively by commercial and multifamily loans to qualify for less than five percent risk retention. Specifically, the agencies have proposed zero percent risk retention for commercial mortgage-backed securities (CMBS) issuances that meet a series of underwriting standards.

Moreover, a qualifying commercial real estate loan must meet over 30 different underwriting conditions in order to forgo the agencies’

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The underwriting requirements are so narrowly focused that virtually no CMBS loans could qualify.

risk retention requirement. The underwriting requirements are so narrowly focused that virtually no CMBS loans could qualify.

Accordingly, Morgan Stanley estimates that if just three of these requirements are applied (Loan-to-Value of 65 percent, Debt Service Coverage Ratio of 1.7x or higher, and an amortization period of 20 years or less at securitization), approximately 0.4 percent of the $671 billion conduit loans that have been securitized since the creation of the CMBS market would have qualified.

W HAT ’ S AT STAKE

In the past, the CMBS market has been able to meet the refinancing needs of property owners when the banking sector failed to meet demand from commercial borrowers. The CMBS market currently represents nearly 26 percent of the outstanding balance of commercial and multifamily mortgages. This is down from nearly 50 percent in 2007, when the CMBS market provided approximately $240 billion in financing. In contrast, the CMBS market provided less than $13 billion in issuances in 2008 and $2 billion in 2009, despite strong credit performance and huge demand from borrowers.

Although the CMBS market is showing some signs of a recovery, with $12.3 billion in new issuances in 2010, prolonged weak economic fundamentals continue to limit the CMBS market’s capacity to refinance commercial loans. In fact, the inability to secure refinancing will result in increased defaults and foreclosures, and the forced sale of many properties at greatly depressed prices, creating a ripple effect of financial losses and more job layoffs, threatening our nation’s economic recovery.

W HAT NAR IS D O ING

In an August 2011 letter to bank regulators, NAR stressed its concern that the proposed thresholds for loans to be exempt from risk retention are too restrictive to apply to the majority of commercial and multifamily loans. This would effectively reduce the number of CMBS issuances – increasing borrowing costs, severely diminishing the amount of financing available to the commercial and multifamily sector, and exacerbating the current commercial real estate lending crisis.

Additionally, NAR argued that the unique structure of CMBS along with existing credit risk analysis standards have enhanced the safety and transparency of the CMBS market, creating the cornerstone of a robust secondary commercial and multifamily real estate market. These distinctive characteristics and credit rating standards, which set CMBS apart from other securitized assets, are described below: Commercial Borrowers & Loan Terms Unlike most residential borrowers, commercial borrowers tend to be highly sophisticated with cash flows based on the business operations of income-producing properties.

Also, commercial real estate loans often differ from other

asset types due to their non-recourse nature, which allows the lender to seize the collateral in cases where the borrower defaults, but not seek recovery from other assets.

CMBS Structure CMBS are generally backed by fewer and larger-sized assets, which allows for greater review and diligence by all market participants on an ongoing basis. Specifically, this limited number of loans permits market participants to do a comprehensive review and analysis of each mortgage in the CMBS pool. The smaller number of commercial mortgages allows for an extensive, non-statistical analysis of the CMBS pool in which investors, credit rating agencies, and other market participants can gather detailed information (for example, cash flows, quality of tenants) about the performance of each commercial mortgage in the CMBS pool.

Greater Transparency The CMBS market has standard reporting documents called the Investor Reporting Package (IRP), which continue to evolve with market changes. This in-depth package provides market participants with a wealth of information from property debt service coverage ratios to delinquency data. The existing IRP creates enhanced transparency by ensuring all CMBS market participants have the necessary information to evaluate risk in a uniform and timely manner.

B-Piece Investor Review & Analysis CMBS issuances are typically structured with a “first loss” or “B-piece” component. Under this structure, real estate investors who purchase the lower-rated bond conduct their own extensive review and analysis of each mortgage in the loan pool. The B-piece bondholders usually have the opportunity to negotiate the removal of any loans they consider to be problematic from a credit perspective.

Flexibility of CMBS The CMBS structure usually allows for the modification or workout of a non-performing loan in order to maximize returns for bondholders.

C O N C LUSI O N

While NAR is devoted to enabling a safe, transparent, and fullyfunctioning CMBS market, we believe policymakers should institute rules that will help restore confidence in this system, not stifle it. Unfortunately, the agencies’ proposed underwriting requirements for a qualifying CRE loan fail to take into account the unique characteristics and economics of the CMBS market, and would significantly reduce access to capital for the commercial and multifamily industry.

29

Credit reports credit scores? more important than

The answer is yes, but...

Barrett Burns President and CEO, VantageScore Solutions

I

t may sound strange coming from the president and CEO of a credit scoring company, but when I come across someone obsessing over his or her credit score, I have standard advice that I feel compelled to share: Pay less attention to the ups and downs of the scores, and spend time instead on understanding why the scores are moving up and down.

Credit score models like VantageScore® are “generic” models, meaning they are made available for use by all consumer loan providers. In most cases, generic credit score models calculate a score by running a consumer’s payment and debt management information found in their credit file through a complex mathematical formula to derive a three-digit number. Most credit score models result in a number − the higher the number, the better the score. And if the consumer properly considers the information in the credit file, and manages debt behavior in a responsible manner, it stands to reason the resulting score will react accordingly.

Most lenders report consumer payment and debt behavior to three separate national credit reporting companies (CRCs), Equifax, Experian and TransUnion, which maintain the credit files. That credit file information is then combined into your credit report at each of the CRCs and is used to calculate your credit scores. As credit file information is updated at each CRC, your credit report is similarly updated. The most important step is to be sensible about your debt management so that

30

lenders don’t report negative information to your credit file. Even a single 30-day late payment on your report, excessive credit card balance, or excessive debt in general, can negatively impact your score. There are many tips on how to carefully manage your credit behavior online.

Another important step to emphasizing your reports ahead of your score is to thoroughly examine your credit reports on a regular basis for accuracy. Check your credit reports at each of the three CRCs once a year for free at www.annualcreditreport.com. Each report you receive will also provide you with the steps needed to address any issues you find.

There are also less widely discussed reasons why you should channel your energy to your credit reports.

The most obvious reason for score fluctuation is that new payment behavior data is reported to the CRCs by your lenders. Each of the CRCs receives billions of pieces of information monthly, so it’s common for scores to fluctuate based on the new information. Whether the score goes up or manage your credit behavior online www.ftc.gov/bcp/menus/consumer/credit.shtm

down depends on the nature of the information the lender has reported. For example, a consumer may have applied for credit, used a credit card, cancelled a card, paid off a loan, or otherwise initiated payment behavior that was recently reported.

Many are not aware, however, that your score 1. Credit scores can routinely will likely be different at various points of the change as new information month. This happens because the information reported by the lenders to the CRCs may occur is reported and old infor- at different times each month. For example, a mation is removed from the lender may send information related to the payment of a credit card to one CRC at the begincredit file. ning of the month, and then later that month To understand why scores fluctuate, it’s important send the same information to one or both of the to understand some basics about the credit-scor- other two CRCs. This means that your credit file ing process. A credit score is a snapshot in time. In information is potentially different at the three other words, your score reflects only the informa- CRCs throughout the course of the month. As a tion in your credit report at each individual CRC result, because your credit file information may at the time that the lender (or you) requested your not be the same at all three CRCs at any given time, your score may appear to fluctuate or be score.

different across the three CRCs. With so many pieces of data that are reported and interpreted by credit scoring models, it’s natural for a score to go up and down simply due to the variability of the reporting. By contrast, missing a payment will have a more lasting impact on your score.

Another reason scores may fluctuate is that information that appears in the credit file will both diminish over time and eventually drop off entirely. Different types of negative information will have a diminishing impact on your score at varying rates even while it remains in your file. For example, bankruptcy is such a significant event that the impact on a credit score will remain longer than the impact of a single missed payment. So even if you have one or more of these less harmful types of negative information in your file, it is still possible to rehabilitate your score by practicing good debt management, as good debt management is also reported and calculated by the credit score model.

Most negative information, such as a missed payment, will drop off after seven years, although some bankruptcies may stay in a consumer’s file for ten years. The impact on a credit score from negative information found in a credit file will diminish over time.

The only negative item that remains on your credit report indefinitely is a tax lien. Other items will disappear at different rates. Below is a list of those items and the general length at which they will remain on your credit report: Late Payments

7 years

Foreclosures

7 years

Chapter 13 Bankruptcies

7 years

Chapter 7 Bankruptcies

10 years

Collections

7 years

Public Record

7 years

The lesson here is that even if you’ve had troubles with debt management in the past, practicing better financial management should result in more positive information on your credit report, which will help improve your score.

2. Credit scores are NOT the only factor in a loan application process.

A common misconception held by even financially savvy individuals is that a bank’s decision to lend hangs on a person’s credit score alone. The credit score is certainly an important part of the approval

and pricing criteria, but generally it is not the sole determining factor.

Rather, the credit score is part of a number of factors lenders examine in a process called “underwriting”.

Underwriting is defined as the analysis and process used to determine whether to lend to someone. Every lender has its own criteria for who qualifies for a loan. Among the criteria beyond credit scores that a lender may consider are:

Down payment Income and expenses Employment history Cash on hand Collateral

4. The beauty of credit scores is in the eye of the beholder.

Always seek to practice prudent financial management and pay bills on time. However, having a diminished credit score doesn’t always mean you are frozen out of the credit market.

Each lender has its own lending goals. For example, there are a number of lending institutions that specialize in providing loans to higher risk borrowers. In particular, there are many lenders that specialize in automotive loans to higher risk borrowers who tend to have lower credit scores.

Lenders also have different “score cut-offs”. This means that one lender might offer loans to consumers with VantageScore credit scores as low as 700, whereas another might grant loans to consumers with VantageScore credit scores lower than 700.1 You can research which lenders have which score cut-offs, although that information may be difficult to find as it is frequently not publicly available because lenders have additional criteria they take under consideration. A better usage of time and energy would be to practice financial management that builds good credit history. That history will obviously be reported by lenders into your credit files, thus improving your credit scores.

Here again, stressing what is in the credit file will pay greater dividends than having a razor sharp focus on your credit score.

The factors that a lender will use to determine whether you qualify for a loan − and at what terms − is for the most part in the hands of the lender or credit grantor. Your ability to ensure that the information in your credit file is up to date and accurate is within your control.

Therefore, it is important to focus your time on what you can influence. You may not be able to change the amount of cash you have available for a down payment, but if there are issues with your credit report, you can take steps to have them rectified. Making sure your credit history is accurately reflected in your credit report may improve your score enough to qualify for a loan with a Why credit scores DO matter. lower down payment or a more favorable interest rate. Broadly speaking, understand that while your Of course, credit scores are an important part of credit score is indeed a major factor in a lender’s our financial well-being. Having a good credit decision to grant a loan, there are others as well. score can literally save you thousands of dollars over the course of a loan because a lender might 3. There are multiple credit view you as a higher risk if you have a lower score, scoring models in the mar- and as a result, might charge you a higher interest rate. Having a “directional” idea of your credit ketplace. score can be useful, especially if you are going to The credit scoring market continues to change and apply for a loan in the near future. Obtaining your evolve, and one of the biggest differences between credit score from a credible source can help you now and ten years ago is that there are many credit know what to expect as a lender reviews your application as one part of its underwriting process. score models used by lenders.

Not having a credit score is also a real problem Among other generic models, there is the VantageScore model, multiple FICO models and the for many consumers. It’s estimated that between CRCs also provide their own credit score models 35 and 50 million adults in the United States may to lenders. Each credit score model may differ in be considered “unscoreable” under some credit terms of the weightings of certain factors or how it scoring models, equivalent to 18 to 25 percent of is constructed. For example, a model might place the adult population. Although VantageScore is a greater emphasis on the balance of your credit able to score many of these consumers, some incard. Simply, “your credit score” is not just one evitably turn to predatory lenders and are charged score and each lender chooses which credit score exorbitant fees.

Having said that, monitoring and considering model to use for issuing credit. Although credit scores that you can check will give you a good in- the information in your credit reports on an ondication of where you stand, the credit score you going basis, as well as remaining responsible with receive could be different than the one the lender debt management, are effective ways to retain and/ or improve your credit profile. Make your payuses to evaluate you when issuing credit.

The good news is that mostly all credit scores ments on-time, don’t keep a high credit card balare derived from information in your credit file. ance or apply for more credit than you need, and This is why it’s very important that consumers routinely check your credit file to ensure it accuensure the information in their credit file is up to rately reflects your credit history. date and reflective of prudent debt management, The rest should take care of itself. instead of comparing and contrasting your credit 1 The VantageScore model’s range is 501 to 990. scores on an ongoing basis.

31

Purchasing Property in

Asia

Getting Started

By Juan Gutierrez

M

any of us have dreamed of owning vacation or investment property overseas only to write off the notion as wishful thinking. Some people fear a lack of knowledge of the market or politics as a reason not take the plunge; others may know just enough of the process to feel that navigating the international real estate market is just too daunting a task.

Still, plenty of potential homeowners have embarked on this endeavor with little knowledge of what to expect. Just knowing where you wish to purchase that fantasy vacation home is only the beginning.

In this issue, we turn to some of our AREAA experts to share the wealth of knowledge they have gathered after many years of international real estate experience.

istockphoto/pius99

Thailand © istockphoto/kevin miller

the

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© istockphoto/Marcus Lindström

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Vietnam Korea

Philippines

Taiwan

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Thailand

L

ocated in the center of Southeast Asia, Thailand is at the heart of the region. Its history dates back thousands of years, though the modern history of Thailand began with the founding of the Kingdom of Sukhothai.

The country has the distinction of being the only country in the region to have escaped colonial rule.

Buddhist religion, the monarchy, and the military have helped to shape its society and politics. Thailand is a constitutional monarchy, presided over by the King of Thailand, who is the official head of state.

The population of Thailand in 2005 was estimated by the United Nations at more than 65 million, which placed it at number 19 in population among the 193 nations of the world. In 2005, approximately 7% of the population was over 65 years of age, with another 23% of the population under 15 years of age. The most practiced religion in Thailand is Buddhism.

The Thai economy remains largely export driven and robust and remains the second largest in Southeast

34

Asia. Recently, The World Bank upgraded Thailand’s income categorization from a lower-middle income economy to an upper-middle income economy in July 2011. Thailand’s progress in social and economic development has improved, despite facing a number of financial/economic and political challenges.

Recovering from the financial “Asian Crisis” of 1997-1998, the Thai economy took off again and grew an average of 5.6% from 2002-2006.The country has been one of the great development success stories, with sustained strong growth and impressive poverty reduction.

The weather in Thailand is generally marked by three seasons: the rainy season, hot season, and cool season, though the climate is generally pleasant year-round.

Real Estate in Thailand The Thai price index for singledetached houses rose by 12.16% in 2011, according to the Bank of Thailand. When adjusted for inflation, the

index actually rose by 7.75% over the same period.

The buying process in Thailand is similar in many ways to that of the United States. There are some differences, though, and it is recommended that a buyer work with a real estate agent aligned with either the Real Estate Brokers Association (REBA) or the Real Estate Sales And Marketing Organization (RESAM), both of which are recognized by the National Association of REALTORS®.

As in any real estate transaction, the most important part is the land title deed. The land title deed (Chanote) is the official document administrated by the Land Department (Krom Ti Din), which states and proves a person’s legal right to own or possess a piece of land, its survey status, as well as rights, obligations, or mortgages on the property.

“The only viable land titles for investment, whether freehold through a company, by a Thai national, or through leasehold is the Chanote freehold land title, followed by the Nor Sor Sam Gor,” said AREAA member Nancy Suvarnamani. “Less

© istockphoto/Igor Ostapchuk

© istockphoto/kevin miller © istockphoto/kevin miller

attractive is the Nor Sor Sam as this land title is not yet accurately surveyed and the area must be confirmed with neighboring land. This land may only be sold subject to a 30 days notice period in which it is not uncommon that boundary or ownership disputes are started.”

Financial aspects of the transaction range from the obvious to the obscure. Currency fluctuations may come into play since buyers typically purchase property with the Thai Baht – the local currency. The actual transfer process is made to a local banking organization, which must be coordinated, and funds identified for property purchase.

The term “Buyer Beware” is especially appropriate in real estate transactions, according to Rob Mehta, AREAA member and Thai real estate expert. The lack of licens-

ing in Thailand for real estate agents is cause for vigilance in selecting the right agent since many are not held to a professional standard.

“There is no title insurance, so it is imperative that a prospective purchaser do their due diligence, even more so than if in the United States,” Mehta said. “In the past, we have seen cases of false titles being issued or government land that is ‘sold’ to a private buyer. It is easy while you are on holiday to make a rash decision and to put a deposit down or enter into a contract.”

Hot spots in the real estate market include the capital city of Bangkok, which has experienced rapid growth over the past three decades. There is also great opportunity for investments in the growing cities of the north of the country. Other investment opportunities rest in Thailand’s

vacation destinations, especially the resorts that do not rest in the Hua Hin and Phuket orbits.

It is important to note that foreign ownership is limited to one parcel or a condominium. Foreigners are only allowed to own land in Thailand under very limited conditions.

“The Amended Land Code Act of 1999 permits investors who bring at least $1 million USD into the country to purchase one plot of land for their personal use,” Suvarnamani said. “Foreigners are allowed to own condominiums and the 1999 Condominium Act increased the percentage of units in a condominium development that can be held by foreign ownership to 49%.”

Next: the Philippines »

35

©

istockphoto/Marcus Lindström

the Philippines

S

eparated southeast of mainland China by the South China Sea, more than 7,000 islands make up the country of the Philippines, but most of its fast-growing population lives on just 11 of them.

The Philippines is governed by democracy and is the third largest English-speaking country in the world. Its diverse history combines Asian, European, and American influences, along with Chinese and Spanish elements. American rule in the early 20th century and contact with merchants and traders culminated in a blend of the East and the West in the culture of the Philippines.

The background of the Filipinos can be traced to the Austronesian peoples.

Economic growth in the Philippines has been steady, averaging at about 5% over the past 10 years, significantly higher than the rate achieved in the previous two decades. In 2010, the Philippines grew by 7.6%, the highest in 30 years.

Good governance remains a high priority for the country. The government’s focus on anti-corruption is

36

intended not only to improve the investment climate for domestic and foreign investors, but also to enhance social service delivery and to help reduce poverty. The country has a dynamic civil conscience and a vibrant media that help provide a voice of the public for urgent reforms.

As for the weather, the first half of the year, from January to May, is the best time to visit the country.

November to February is cool, while March to May is hot and dry. June to October is rainy, with the months between July and September characterized by typhoons. Some parts of the country, such as Cebu, are warm and comfortable in all seasons and can be visited throughout the year.

Real Estate in the Philippines Home prices in the country are rising again as buyers become optimistic about the Philippine economy. The average price of a luxury threebedroom condominium in the city of Makati rose 7% in the first quarter of 2011. Over the next 12 months,

the average capital value is likely to increase by about 5% as well.

Purchasing property in the Philippines can be a bit complicated, however. There is no formal Multiple Listing Service (MLS) system, minimal or no broker cooperation, and the manner of compensation and referral fees given out to real estate brokers can be layers of several referring agents, licensed or unlicensed.

This convoluted system is being addressed at one level by an agreement between the National Association of Realtors (NAR) and the Chamber of Real Estate and Builders’ Association Inc. (CREBA), designating the Chamber as its official cooperating association in the Philippines.

One of the most glaring differences between the ownership of real estate in the Philippines versus the United States is that, for the most part, only Philippine citizens are allowed by law to acquire any land through purchase, transfer or assignment. Foreign nationals and corporations can own 100% of a Philippine condo or townhome, with condo developments sold by in-house

Photo courtesy of Ayala Land International Sales Inc. Photo courtesy of Ayala Land International Sales Inc.

Photo courtesy of Ayala Land International Sales Inc. Photo courtesy of Ayala Land International Sales Inc.

salespeople only.

The biggest challenge, though, seems to be the difficulty of getting information about available real estate opportunities.

“Most buyers and sellers get the services of REALTORS and try to sell these properties through word of mouth, families, friends, and networking,” said AREAA member Vicky Silvano. “Just like in the United States, it requires the services of a skilled real estate professional who can guide the purchaser to get a mortgage and the use of an attorney to record title once the mortgage process is completed and closed.”

Today, the real estate market is booming. There are new condo developments springing up all over the country, especially in the central business district of Makati

and Manila. Much of the growth in real estate can be attributed to the Business Process Outsourcing (BPO) industry, and it will continue to grow.

In 2010, the BPO was estimated at $11 billion.

“The BPO industry in the Philippines has grown 46% annually since 2006 and this boom is led by demand for offshore call centers,” Silvano said.

“The Philippines has less expensive operational and labor costs, as well as an English-speaking workforce as a result of English being one of two official languages.”

The long-term forecast for the Philippine real estate market remains strong. A stable government, an improving economy, a hospitable climate, and an English-speaking population make the country especially appealing for U.S. investors.

There are even special programs, administered by the Department of Trade and Industry in cooperation by the Department of Tourism, for retirees to invest in the country by purchasing real estate.

“Most international buyers enjoy the easygoing lifestyle in the Philippines, as well as the variety of food, entertainment, rich culture, and modern conveniences,” Silvano said.

“Since labor is inexpensive, most international buyers welcome a retreat of the tropical weather as well as the warm hospitality given by the locals to the foreigners. Most condo developments in the Philippines are very similar in features and amenities as those in the U.S.”

Next: Vietnam » on Page 40

37

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Vietnam

S

ituated off the eastern coast of mainland Southeast Asia, Vietnam (officially the Socialist Republic of Vietnam) has an area of 331,210 square kilometers. Comparatively speaking, the area occupied by Vietnam is slightly larger than the state of New Mexico. At its narrowest, the country is only 31 miles across.

With an estimated 90.5 million inhabitants as of 2011, Vietnam is the world's 13th most populous country, and the eight most populous Asian country. The proportion of the country’s residents living in urban areas is only 28 percent.

There are 54 different ethnic groups inhabiting Vietnam. Ethnic Vietnamese (also known as Kinh) people account for nearly 86% of the entire population, while 53 other ethnic minority groups represent the remaining 14%.

This one-party Communist state has one of Asia’s fastest-growing economies and has set its sights on becoming a truly developed nation by 2020.

With the end of the Vietnam War, the country had struggled after its

40

unification. Elements of market forces and private enterprise were introduced in the late 1980s, and a stock exchange opened in 2000.

Foreign investment has grown, with the United States as Vietnam’s main trading partner. In the cities, the consumer market is fueled by the appetite of a young middle class for electronic and luxury goods.

Vietnam is entirely located in the tropical belt lying between the equator and the Tropic of Cancer. While there are slight variations in temperature, depending on the season and the altitude, the primary seasonal changes are marked by variations in rainfall. Humidity is high, with the average ranging around 84% a year.

Moderated by two monsoons, the average is lower than other countries also in the equatorial regions. The weather varies greatly from north to south, depending on elevation and type of landscape.

Real Estate in Vietnam Vietnam’s real estate market is marked with volatility and uncer-

tainty due to the implementation of Decree No. 71 in 2010, which aims to discourage speculative investments and reduce market liquidity, and the economic crisis due to falling U.S. dollar reserves, the weakening Vietnamese dong, and high inflation.

In Vietnam, most real estate purchases are all-cash transactions.

Banks have recently started lending, but the process of qualifying for a loan is difficult and the interest rate is very high, which makes using local funding to pay for a home prohibitive. There is also no escrow or title company involved in real estate transactions.

“The two parties will meet and sign the bill of sale at the State Official Notary office,” said David Tran, AREAA Vietnam real estate specialist. “The State Notary Officer will notarize for the Bill of Sale to acknowledge the sale, do the transfer, and exchange capital between buyer and seller. Then the buyer will apply for the Certificate of Ownership, which is the same as a grant deed in the United States.”

The Certificate of Ownership, also known as “Red” or “Pink” Book

istockphoto/Anthony Brown ©

istockphoto/Peter Fuchs ©

Paper, is the document used by government management agencies.

It is issued to the owner as evidence and the only legitimate sovereign determination of an individual or organization for the property. The certificate authority gives the legal basis for the homeowner to exercise the rights and obligations for such houses as prescribed by law. The concept is closely related to the paper land use right certificates.

There is no “lien” to a property in Vietnam. If the owner uses the house to borrow the money from the bank as collateral, the bank will keep the Certificate of Red paper. The seller

cannot sell the house if he (she) does not have it in hand.

The transfer process only takes five minutes to sign, but it will take five to seven days to receive a new Certificate of Ownership issued by the state management agency.

Even after the process is complete, foreigner investors do not own the land itself. The land is owned by the government and foreigners can only lease the land. Residents of Vietnam do not have it much easier when it comes to land ownership.

“Citizens of Vietnam can own houses associated with the land use rights,” Tran said. “This means the

homeowner has the right to own the house that is built to the land. The land still belongs to the government.”

Despite the restrictions on full ownership of real estate, demand from expatriates remains high. Of the approximate 3 million Vietnamese living abroad, 70 percent have shown an interest in investing or have in­ vested in homes in Vietnam. Half of the Vietnamese living abroad also live in the U.S., putting the market for a real estate professional in the U.S. with experience in the Southeast Asian nation in high demand.

Next: Taiwan and Korea » 41

Taiwan T

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he island nation of Taiwan lies in the Pacific Ocean astride the Tropic of Cancer, less than 161 kilo­meters (100 miles) from the southeast coast of mainland China. China has claimed sovereignty over Taiwan since the end of the Chinese Civil War in 1949.

The population of Taiwan was estimated in 2005 by the United Nations at more than 22 million, which placed it at number 48 in population among the nations of the world. Approximately 9% of the population was over 65 years of age, with another 19% of the population under 15 years of age.

The term “Taiwanese” is often used when referring to those Chinese who are natives of the island as distinct from the two million “mainlanders” who moved from China after the end of World War II. Most of the inhabitants of Taiwan are descendants of earlier immigrants from the Fujian and Guangdong (Kwangtung) provinces in South China.

The Taiwanese folk religion is a fluid mixture of shamanism, ancestor worship, magic, ghosts and spirits, and aspects of animism. They commonly overlap with an individual’s belief in Buddhism, Confucianism, or Taoism. Because of its unique historical and geographical background, Taiwan has a versatile culture composed of elements from many different ethnic groups, including the indigenous people, the Dutch, the Spanish, the Japanese, the Han Chinese, and recently, the Americas.

Taiwan enjoys an oceanic, subtropical monsoon climate. The warm and humid summer lasts from May until September, the mild winter from December until February.

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rose by 3% over the same period.

“The future of real estate in Taiwan will be marked with very expensive property and difficulty obtaining funding and loans,” said Betty Sun Wong, AREAA member and Taiwan real estate expert. “The biggest concern is that the country is experiencing a housing bubble not unlike what hit the United States a few years ago. The bubble may burst.”

Scarcity of inventory and difficulty in securing loans aside, completing the purchase process of real estate is surprisingly expeditious. It could take as little as seven days to complete a cash purchase and generally less than 30 days for a loan purchase.

Speculation is abundant, with many of the real estate purchases in Taiwan made by corporations or investors.

As always, location is key and although there is no “bad” area to purchase property, some may bring a higher return than others.

“Most people think they can buy anywhere and make money,” Wong said. “Though this may be true, in the short term, some areas will only get you your initial investment back. The east side of Taiwan is going to get top dollar. The real growth area is in the southern portion of the country.”

Real Estate In Taiwan Purchasing property in Taiwan is becoming a more expensive proposition as housing prices continue to climb.

Despite the addition of a property tax and other antispeculative measures by the government in 2011 to cool the residential property market, house prices in Taiwan continue to surge.

The national average house prices have gone up by 8.2% in 2011, according to Sinyi Realty, Taiwan’s biggest real estate brokerage. On a quarterly basis, housing prices

42

Korea T

he Republic of Korea is a small country on the far eastern edge of Asia. Although it ranks 109th in the world in terms of land area, the country is a center of economic activity, culture, arts, and has developed into one of Asia’s most affluent countries since partition in 1948.

The South Korean peninsula is situated in northeast Asia between China and Japan. The geographic region of Korea, one country for more than 1,000 years, has been divided between North and South (officially the Republic of Korea) since 1945. A multi-party political system was restored in 1987, a year in which the country held its first free direct presidential election.

The Republic of Korea has experienced remarkable success in combining rapid economic growth with significant reductions in poverty. Foreign Direct Investment (FDI) is an integral part of the Korean economy, with the number of foreign-invested companies in the country increasing over the last decade. In 1997, the number was less than 2,000; 13 years later, it hit the 14,000 mark.

As in other countries, industrialization proceeded in parallel with urbanization. In 1960, only 27.7% of Korea’s population lived in cities. Conversely in 2000, 88.3% were urban dwellers. But this trend has receded slightly. In 2005, 81.5% of the country’s population lived in cities.

Korea has a continental climate of very cold, dry winters and very hot, humid summers.

Winters are influenced by westerly winds from Siberia, while summers are generally characterized by an oceanic climate due to moist, warm winds from the Pacific Ocean.

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Housing prices in the Republic of Korea are rising again, after falling in the second half of 2010. Unlike some of its neighbors, the Korean housing market had seen declines in sales until the second half of 2010. The rebound over the last three months of 2011 has seen nationwide home prices increase by 2.62%, the highest quarterly rise since March of 2007, according to the Korean Statistical Information Service. The Republic of Korea’s government plans more measures to help the housing market, including slashing home purchase taxes from 2% and 4% to 1% and 2%. In August 2010, the government also eased restrictions on real estate lending.

There are several different ways to find a place to live in Korea, but it is recommended to use a real estate agency. Not unlike the United States, real estate agencies provide services such as preparation of documents and confirmation of procedural checklists for moving into a home. It is also recommended that a real estate professional, trained and familiar in the customs and regulations, should conduct the process of purchasing real estate in the country. In fact, often times it takes more than just the agent to ensure a smooth transaction.

“In the purchase of land, it is important to involve attorneys, CPAs, and even a surveyor,” said AREAA member Charlie Suh. “It is critical to be able to examine the financial statements and documents when conducting commercial investment purchases.”

Also important is to take a long-term approach to the research and purchase of property since information may be scarce on the trends of particular areas and locations. “Even investors who have resources should take their time when looking at property and thoroughly review the location,” Suh said. “A three-month to a year fact-finding process is best while employing a Korean-based team to educate the investor on larger purchases.”

istockphoto/Ken Brown

Real Estate in Korea

Works Cited

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“Background Note: Philippines.” Bureau of East Asian and Pacific Affairs, 7. Jan 2012. Web. 15 Feb. 2012 “Background Note: South Korea.” Bureau of East Asian and Pacific Affairs, 7. Jul 2011. Web. 15 Feb. 2012. http://www.state.gov/r/pa/ei/bgn/2800.htm “Background Note: Taiwan.” Bureau of East Asian and Pacific Affairs, 8. Feb 2012. Web. 15 Feb. 2012. http://www.state.gov/r/pa/ei/bgn/35855.htm.

“Background Note: Thailand.” Bureau of East Asian and Pacific Affairs, 3. Jan 2012. Web. 15 Feb. 2012. http://www.state.gov/r/pa/ei/bgn/2814.htm .

“Background Note: Vietnam.” Bureau of East Asian and Pacific Affairs, 5. Jan 2012. Web.15 Feb. 2012. http://www.state.gov/r/pa/ei/bgn/4130.htm.

“Korea Country Brief.” The World Bank Group, May 2010. Web.15 Feb. 2012. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/KOREAEXTN/0,,contentMDK:20205120~menuPK:324653~pagePK:1497618~piPK:217854~theSitePK:324645,00.html.

“Korea.” The Columbia Encyclopedia, 6 ed., 2008. Web.15 Feb. 2012. http://www.encyclopedia.com/topic/Korea.aspx.

“News Inside North Korea.” BBC, 8. Feb 2012. Web.15 Feb. 2012. http://www.bbc.co.uk/news/world-asia-pacific-11421928.

“Philippines.” BBC, 12. Dec 2011. Web.15 Feb. 2012. http://www.bbc.co.uk/news/world-asia-15521300.

“Philippines.” Global Property Guide, 8. Oct 2011. Web. 15 Feb. 2012. http://www.globalpropertyguide.com/Asia/Philippines.

“Philippines Overview.” The World Bank Group, 2012. Web.15 Feb. 2012. http://www.worldbank.org/en/country/philippines/overview.

“Philippines.” Worldmark Encyclopedia of Nations, 2007. Web.15 Feb. 2012. http://www.encyclopedia.com/topic/The_Philippines.aspx.

“South Korea Profile.” BBC, 19. Oct 2011. Web.15 Feb. 2012. http://www.bbc.co.uk/news/world-asia-pacific-15289563.

“South Korea.” Global Property Guide, 17. Feb 2012. Web. 15 Feb. 2012. http://www.globalpropertyguide.com/Asia/South-Korea.

“Taiwan.” Global Property Guide, 3. Sept 2011. Web. 15 Feb. 2012. http://www.globalpropertyguide.com/Asia/Taiwan.

“Taiwan Profile.” BBC, 15. Jan 2012. Web.15 Feb. 2012. http://www.bbc.co.uk/news/world-asia-16164639.

“Taiwan.” Worldmark Encyclopedia of Nations, 2007. Web.15 Feb. 2012. http://www.encyclopedia.com/topic/Taiwan.aspx.

“Thailand.” Global Property Guide, 4. Sept 2011. Web. 15 Feb. 2012. http://www.globalpropertyguide.com/Asia/Thailand.

“Thailand Overview.” The World Bank Group, 2012. Web.15 Feb. 2012. http://www.worldbank.org/en/country/thailand/overview.

“Thailand Profile.” BBC, 9. Nov 2011. Web.15 Feb. 2012. http://www.bbc.co.uk/news/world-asia-15581957.

“Thailand.” Worldmark Encyclopedia of Nations, 2007. Web.15 Feb. 2012. http://www.encyclopedia.com/topic/Thailand.aspx.

“Vietnam Country Brief.” The World Bank Group, 2011. Web.15 Feb. 2012. http://go.worldbank.org/SJJ87Wz060.

“Vietnam Profile.” BBC, 15. Jan 2012. Web.15 Feb. 2012. http://www.bbc.co.uk/news/world-asia-pacific-16567315.

“Vietnam.” Worldmark Encyclopedia of Nations, 2007. Web.15 Feb. 2012. http://www.encyclopedia.com/topic/Vietnam.aspx.

istockphoto/jjayo

http://www.worldbank.org/ | http://www.encyclopedia.com/ | http://www.bbc.co.uk/ | http://www.nber.org/papers/w7566 http://www.state.gov/ | http://www.globalpropertyguide.com

43

While All Real Estate Is Local, Today’s Buyers May Be International

By Darryl Freeman

Of the approximately $1.07 trillion in existing-home sales between March 2010 and March 2011 in the United States, approximately $41 billion dollars worth were purchased by foreign buyers (38.3% of the entire real estate market).

Given the differences in culture, customer needs, negotiation styles, and other factors, there is a growing need to become culturally intelligent. Foreign buyers are coming to the U.S. from over 70 different countries, but the primary ones are Canada, China, Mexico, India, and the United Kingdom. They have become today’s new niche market. These investors are drawn to many of the major metropolitan cities such as Miami, San Francisco, New York, Houston, Phoenix and Las Vegas. (Source: Profile of International Home Buying Activity, N.A.R. Report 2011) So why are foreign investors coming to the United States?

Some of the primary reasons are because of favorable exchange rates, low property prices, clear legal codes, desirable vacation locales, and well-defined property rights. Also, due to the volatile world stock market, property is viewed as more stable here in the U.S. (Source: Overseas Property Professional, 7/21/2011). The First American Title Foreign Buyers Guide can help guide your client through this process.

The face of our nation is radically different today than it was twenty years ago. At 51.2 million people, Hispanics are the largest and fastest growing ethnicity in the United States and at 14.3 million – while the 3rd largest ethnic group - Asians are the 2nd fastest growing culture in the country. Corporate America has taken notice of these trends and many Fortune 500 companies have shifted their marketing approaches to address the needs of this Cultural Revolution. In a phrase, “They get it!” These companies realize that some of the most robust buying power resides in the “Minority Majority”. Consider the following statistics: ››

Presently the Asian American buying power is $577 billion and is expected to grow to $775 billion by 2015 ·· At $91,000, Asian Indians have the very highest median household income of any culture in the U.S.

››

Presently the Hispanic American buying power is at $1 trillion and is expected to grow to $1.5 trillion by 2015 (Source: The Selig Center)

Our industry has learned that when serving the business needs of our multicultural clients, there are very important “cultural nuances” that affect the real estate transaction. To ignore or overlook some of these differences could leave the client feeling offended or alienated, thus damaging the business relationship. I recently gave a presentation entitled, “Cultural Nuances of the Escrow and Settlement Process,” to a group of agents in Northern California

44

and a highly-respected, top-producing agent made the following comment after the presentation: “I’ve now learned why I lost my last Asian client.” There were a few things she unintentionally did that were considered highly offensive to her client and these mistakes were a “deal-breaker” for them.

culture’s values are more right or wrong than another’s. We simply need to strive to understand that these nuances do exist and for that particular culture, they are very important.

Darryl Freeman is the Strategic Markets Director of Collaborative Initiatives for First American Title. He routinely conducts monthly presentations on multicultural and specialized markets.

This past year he conducted more than 35 internal and external presentations to over 1,000 real estate practitioners. Darryl works consistently with many multicultural real estate trade organizations and housing agencies such as AREAA, NAHREP, NAREB, NHORA, NAAC, CREAA and Operation Hope.

Let’s examine a few cultural nuances to be aware of as we interact and do business with Everyone has culture and each culture has one another. It’s important to note that these its own special nuances that affect virtually are valid generalizations (widely held to be true for the majority of a group) and not abevery aspect of our lives such as how we solute truths for every single person of that celebrate, how we raise our children, how particular race. For ease of understanding, we mourn our dead, how we make deciwe will highlight a few nuances from the sions, and even how we buy and sell. It’s vitally important for us to know that neither Hispanic, Asian Indian and Asian cultures:

Hispanic Americans Language 75% of all Hispanics in the U.S. are English speaking only or are bi-lingual

Asian Indians

Asian Americans

Hierarchy and Formality Titles are revered in the Asian Indian culture

Respect for Elders & Decision Making Decisions are heavily influenced by family members, the group, and especially elders

››

Trust Hispanics want to do business with people they like and trust (friendship is key)! ››

There is a gray line between business and friendship

›› ››

Doesn’t include just the immediate family like in the American culture Includes aunts/uncles, grandparents, cousins and even close family friends All may have a say in the decision-making so never exclude them from the homebuying process

››

When purchasing a home, the elders will often make the final decision, even if not contributing any money Always address/acknowledge the elders first whether involved in the transaction or not

Negotiations A very strong part of the Asian culture

››

››

Traditionally the left hand was used for hygienic purposes and is considered unclean

Indirect Comm­unication Asian Indians will often rely on you to interpret what they are saying ››

››

“No” has harsh implications and is considered dismissive and insulting ·· More often you will hear evasive, indirect refusals such as “I’ll try” or “Maybe” A side to side toss of one’s head indicates agreement

Sharing & Collectivism The good of the whole is more important than the individual

Greetings and Handshakes Handshakes are common among urban Asian Indian businessmen; however, due to their increased awareness of social hierarchies and varying religious beliefs, always let your customer initiate a handshake

››

››

Pooling funds to live together for the importance of one family member owning a home; then helping that other family afford to buy their own home…and so on.

››

Business Card Exchange Only use your right hand to exchange business cards

Family Extended family is very important ››

Always use the person’s title when addressing them Titles include Vice President, professor, doctor, engineer, etc. ·· If they do not have a title, use the honorific “Sir” or “Madam” ·· Never address an older Asian Indian woman by her first name ··

Traditionally, it is acceptable for women to shake hands among themselves, but unacceptable for a woman to initiate a handshake with a man

Proper Behavior Being proper is very important to the culture ››

Some actions that we consider harmless may be offensive to someone of Asian Indian descent ·· Whistling at any time is considered impolite ·· Standing tall with your hands on your hips is a sign of anger and aggression ·· Showing the soles of your feet or shoes is incredibly rude as feet are considered to be unclean

››

May seek to negotiate price, but are willing to pay top dollar for top service Steer away from “price” and concentrate on “value”

Indirect Comm­unication Pay attention to facial expression, tone of voice and body language ››

A head nod or “yes” may not mean “yes”, a “maybe” probably means “no” and you will rarely hear a “no” (so as to not offend or bring confrontation)

Hierarchy and Formality Always use the person’s official title when addressing them (i.e. Dr. Chan, Vice President Lee, etc.)

Business Card Exchange ›› ›› ››

Give and accept business cards with two hands and a slight bow of the head Never fold or write on business cards Acknowledge the information on the card and place it on the table in front of you

As we expand our cultural intelligence, we will at the same time open more doors of opportunity for ourselves in today’s real estate market. The foreign investor market here in the U.S. is growing and those who better understand and embrace it will have the best chance at success. First American Title’s Strategic Markets has resources and educational materials to address these escrow and title needs. For more information please contact us at strategicmarkets@firstam.com.

45

Costa Rica’ s

Reputation for Welcoming the World Includes Asian Visitors, Investors, Retirees, Businesses...and more

Appeal of Central America’s “Jewel” Reaching Asian Audiences from China, Korea, and Japan to North America

by Allen Lungo

C

I nte r n ati o n a l

osta Rica’s blessings are many, but none are as important as its reputation for welcoming international visitors arriving for vacation, investment, retirement, or simply a new direction for their lives.

The focus of activity has been on the country’s North Pacific coast with emerging coastal centers in

the Guanacaste Province - Costa Rica’s newest frontier for tourism and development. In Liberia, capital of the province, a new International Airport (LIR) terminal opened on January 12, 2012. It offers a 21st century welcome to flights arriving from three continents.

ers that are no more frequent than in the U.S. at the same time, turning Costa Rica into a lush paradise. Reduced rates are also available for accommodations, tours, and rental cars.

Costa Rica has been on the minds of travel­ ers for the last decade and it is rare to find someone who has not visited, not known someone who has, or is not dreaming to be able to go soon. Costa Rica regularly shares first place with Hawaii in global tourism surveys concerning the world’s most desirable vacation destinations. Both offer equivalent natural beauty, features like volcanoes, ocean sports headlined by surfing, and climate. Costa Rica was also identified in a recent poll as the “Happiest Country on Earth”, and is one of the global locations with the greatest longevity for its residents.

Photo: Liberia International Airport

An increasing number of these visitors are from Asia, or are of Asian heritage, and find themselves attracted to Costa Rica’s rare combination of 1) natural beauty and temperate tropical weather, 2) a growing, diversified, and globalized economy, 3) status as one of the world’s top real estate investment destinations - particularly for high net worth individuals, 4) government policies designed to attract retirees, and 5) generally low tax rates on property and income. Costa Rica’s recent national strategy of forging new ties to Asian countries and economies also suggests that its appeal will continue to grow there in the future.

Traditionally, the The new Liberia International Airport The econo“high season” for my of the travelers to Guanacaste and its country has been diversifying by dry, warm weather has coincided attracting high-tech industries, medical with winter in the northern hemi- equipment producers, software compasphere. Travelers are also learning that nies, and distribution and call center ser-

the “Green Season” (from the end of May to September) is a “best kept secret”. It offers equally pleasant weather, with show-

«

Feature

vices. The top export is now Intel microchips, surpassing agricultural products for the first time. Tourist volumes are

Ocean view from Villa Bougainvillea in Flamino, Guanacaste Photo: Allen Lungo

Costa Rica regularly shares first place with Hawaii in global tourism surveys concerning the world’s most desirable vacation destinations.

Opposite page: Reserva Conchal Beach Club and Spa Photo courtesy of Reserva Conchal Beach Club and Spa

47

again setting new annual records, partially based on new interest in medical vacations and eco­tourism.

Coastal View from Pacific Heights, Costa Rica Photo: Allen Lungo

Investors continue to favor Costa Rican real estate – made even more

attractive by the stable political and legal systems, the low property tax rates (1/2 of 1% of value, per year) and the ability of foreigners to legally own 100% of properties, corporations, and other assets.

The value of Costa Rican real estate has tracked with the rest of the world over the last 3-4 years, but it did not fall as far and is already rebounding. Real estate prices are now trending upward in certain instances, and sellers (enjoying consistently higher vacation rental incomes) are resisting lowball offers.

Costa Rica also has the Costa Rica MLS (www.costaricarealestatemls.com) –

the first truly national MLS system, based on the Proxio­Pro real estate database offering properties and agents online in 19 global languages. It is offered by the Costa Rica Global Association of REALTORS® (CRGAR), all of whose members are also individual members of the National Association of REALTORS® (NAR) in the United States and ascribe to its Code of Ethics and Standards of Practice.

Tamarindo , a new global destination in Guancaste Photo: Allen Lungo

Global retirees are being welcomed with open arms, supported by recent na-

tional policy directives. Each relocating retiree generates 4 new permanent jobs in the national economy, which is a strong incentive to compete with other global retirement locations. Immigration and residency rules now favor any foreigner who may come to Costa Rica while receiving a pension from outside the country.

Further, anyone investing at least $200,000.00

48

(USD) in Costa Rican real estate can now use that investment as the basis for their application for permanent residency.

So, come to Costa Rica this year, and enjoy the sense of welcome shared with people from around the world.

Bring your dreams and learn how to fulfill them in Costa Rica!

Allen Lungo is a REALTOR® in Costa Rica, a NAR member, the President of the Costa Rica Global Association of REALTORS®, the Chairman of the Costa Rica MLS and the Latin American MLS, and the Founder of the Summerland Group of Companies (Real Estate Management). He has lived in Costa Rica for over 7 years. For information: info@crgar.com

Trade Mission Journal AREAA

goes to

Vietnam

50

By Arianna Gallegos

When I was invited to go along with AREAA leadership on the trade mission to Vietnam, I knew it would be the trip of a lifetime!

I had never travelled to Asia. As the Vice President of the newest AREAA chapter, Greater East Bay, I knew this experience would engrain the AREAA mission to my core. There were nine of us on this volunteer based journey, all of whom I now call friends.

Thanh Pham and David Tran did an amazing job coordinating the trip from A to Z. Early on we were told that Vietnam was an emerging country that was still considered third world. My expectations were set that although I would see poverty, I would also eat delicious food, see beautiful scenery, tour “city” like real estate developments and meet the movers and shakers in the Vietnamese Real Estate community.

After traveling for 24 hours from San Francisco to South Vietnam, I arrived in Ho Chi Minh City (Saigon).

I was surprised by the weather and dense population. It

was in the 80’s with high humidity. There were thousands of motorbikes filled with families and groceries.

I even saw a tree tied to the back of a motorbike. The Vietnamese people were very hospitable and warm. The seafood was amongst the best I’ve ever had. What struck my heart was despite the hardships and standard of living I witnessed, the people were joyous and smiling.

We toured several real estate projects in Vietnam.

They are built like small cities that include schools, fitness facilities, retail shops and restaurants. The floor plans and quality of material varies from project to project. The majority of the developments are built 20+ stories high with 2,000-3,000 units. I was surprised the starting price for a modest 2 bedroom home with approximately 1200 square feet starts at $1,000,000 USD. Since there is no financing available in the country,

The delegates at the Reunification Palace in Ho Chi Minh City (L to R): Tim Le, Arianna Gallegos, Thanh Pham, David Tran, James Lee, Loanne Pham, Kathy Tsao, Edwin Covarrubias and Vinny MaNguyen

Photo courtesy of Edwin Covarrubias

51

52

A C o u n t r y of T r a n s i t i o n and M o v e m e n t A sea of scooters engulfs the streets of Vietnam. I have never seen anything quite like it. Thousands and, I mean, thousands of scooters vying their way through city streets narrow and wide.

When you first see it, it just doesn’t seem possible that people can get from point A to point B. You expect the traffic to come to a grinding halt forever. Yet, somehow there is movement and there is an uncanny symphony of progress.

The images of Vietnam for most Americans have been etched by the photos and news clips from a war that divided America decades ago. But the Vietnam of today seems to be looking forward. Yes, there are some reminders of the war – helicopters from the war turned into memorials and such. However, I saw more high rises and fancy cars than I saw memorials about the past.

Vietnam is a country in transition and in movement. Today, there are still significant infrastructure and economic challenges as well as income gaps in the country. However, we saw subdivisions of million dollar homes that were 85% sold on spec. And there is certain vibrancy about the country.

Whether people are selling toothpicks on the street or making cappuccinos at an upscale pastry shop, everyone seems to be working – everyone seems to be going somewhere. That’s why there is significant foreign interest in investment and business opportunities in Vietnam.

Despite challenges and barriers that would stall many countries, I saw movement and progress in Vietnam like the scooters making their improbable journey through the city.

- Jim Park

Photo: Arianna Gallegos

only 2% of the population can afford to live at this standard. We were told that the homeownership rate in the country is 96%. That sounded extremely high, however what is considered a “home” is really any shelter. There are no health and safety enforcements.

In addition, there is no appraisal system in place.

After our time in the south we flew north to Hanoi, the capital. This is where all the government officials conduct business for the country; it’s equivalent to Washington D.C. Here we had a powerful meeting with the Vietnam delegates on one side of the table, and AREAA on the other. This was a significant afternoon for me. The Minister of Construction for Vietnam spoke first for approximately 30 minutes about where the country has been and where it’s headed. Then it was AREAA’s turn to have the floor. Several people spoke including Jim Park, Kathy Tsao and David Tran. A Q&A session followed. The mission we set forth was in motion; we started building a relationship and offering support to a nation that is rebuilding. Vietnam is looking to write their policies for their real estate infrastructure. The country has a unique opportunity to learn from the successes and setbacks from other nations.

The most memorable part of the trip on a personal note, was spending the day and night on Ha Long Bay with the team. It was magical! We sailed along the green waters in our very own beautiful wooden yacht. Each of us had a private cabin and there was a staff of 20 for our group of 9. During our dinner on the boat, we took turns making a toast. It was here and throughout the trip really, that I was reminded what amazing friends surrounded me. I learned of their stories of immigrating to the United States and the struggles they encountered. I developed a newfound respect for them. Through the hardships, each of my friends have become successful not only in business but in giving back to the Asian community domestically and internationally.

Their passion has inspired me in life, business and reaffirmed the leadership role I humbly accepted along with my commitment to AREAA. There are various levels one can participate within AREAA and their local community. I would encourage anyone who is interested in growing their business and personal development to get more involved with AREAA. Becoming a member is only the first step. By attending mixers and educational events, one can begin to network and build relationships. The next level of participation is going to the National and Global Conferences where you interact and learn from industry leaders. In my experience, volunteering on a trade mission is by far the most powerful. It’s life changing to see AREAA’s mission in action. We will continue our efforts not only with Vietnam, but with other Asian countries during future trade missions. From these endeavors we give our AREAA members a unique opportunity. Members have a platform to expand their network into a foreign market and cultivate business opportunities.

I look forward to the adventures that await and the friendships that will be made!

The delegates enjoy the world-class view of Ha Long Bay (L to R): Vinny MaNguyen, James Lee, Tim Le, Thanh Pham, Jim Park, Kathy Tsao, David Tran, Arianna Gallegos and Edwin Covarrubias.

Photo courtesy of David Tran

Edwin Covarrubias, Arianna Gallegos, Kathy Tsao and Tim Le Photo courtesy of Arianna Gallegos

Mr. Tong Van Nga, Former Deputy Minister of Construction of Vietnam and Vice-Chairman of the Vietnam National Real Estate Association (VNREA), and AREAA Chair Kathy Tsao sign a Memorandum of Understanding on behalf of their two associations / Photo: Arianna Gallegos

Ha Long Bay Photo: Jim Park

Jim Park and Kathy Tsao Photo courtesy of Kathy Tsao

James Lee, Jim Park and James Chen Photo: Arianna Gallegos Vinny MaNguyen as a street merchant Photo: Jim Park

An Amazing Night!!

Today is the 5th day of the trip; we have left the hustling AREAA’s first trade mission, I have the first-hand expeand bustling city of Saigon and the quieter city of Ha- rience of understanding and appreciating the amount of noi after completing a conference and a few business work that our volunteers have to put in to organize these meetings in those two cities. At around 5:00 pm, after a trips, conferences and meetings. Kudos to all these volunteers, you have made this all happen. three-hour bus ride, we As of now, we have traveled to eight citreached Ha Long Bay, the ies (Incheon, Seoul, Beijing, Shanghai, “Descending Dragon”, loTaipei, Kaohsiung, Ho Chi Minh and cated in the town of Cam Hanoi) and four countries (Korea, ChiPha and part of the Van na, Taiwan and Vietnam) in just eight Don district in the provmonths. ince of Quang Ninh. This Jim, along with many volunteer site was selected as one of leaders in the past, have watched and the New Seven Wonders helped this association grow from its of Nature in November infancy into this premier organization. of 2011. The bay consists He shared some of the early events and of a dense cluster of over we were all deeply touched by his sto2,000 limestone islets and ries. David, Vinny, Edwin, Tim, Arikarsts. Standing there anna, James, and Thanh all shared their and looking at this rewonderful stories and told us how and markable natural wonder why they got involved with AREAA. was an incredible expeI was especially moved by the stories rience. A community of Ha Long Bay was recognized as a marvel Vinny, David, James and Tim shared around 1,600 people live of nature in November 2011 by the Seven with me during the trip. Each of them, on floating houses by this Natural Wonders, a global grassroots as young children, ran to the borders tranquil blue sea. We also endeavor committed to protecting the with their parents becoming refugees. visited a large limestone natural wonders of the world. Their They also explained how they all came cave – what a treat to be mission is to help people discover and to settle in the USA. Now, look how sucable see these wonders explore the natural wonders of the world, cessful they are today. They are volunduring the middle of a to teach them about the wonders and the teering their time and helping us build business trip. things that threaten their existence, and to up AREAA. My hat is off to you guys; We boarded a charter inspire them to create a philosophy and your personal stories have inspired me cruise, looking out from practice of conservation. Photo: Jim Park deeply. It is my great honor and priviour cabin windows and lege to have been able to spend these seeing miles and miles To find out more, visit: few wonderful days with you. I learned of these limestone islets so much from all of you and your pasmade me feel like I was in www.sevennaturalwonders.org sion and devotion have motivated me Shangri-La. At night, this further to be a better leader and a betplace is so peaceful, you can hear a pin drop. We enjoyed an authentic Vietnamese ter person. I need to do more and give it all that I’ve got meal and went around the table and discussed our expe- during my term. Thank you all, this was an amazing night rience and involvement with AREAA. This was my 3rd that I will cherish forever in my heart! trade mission and I was thrilled beyond belief to be there.

- Kathy Tsao As part of the original team in New York that planned

54

Supporting Those in Need

by James Lee I wake up every day telling myself I have to work harder in order to afford the nice big house, excessive brand name clothing, luxury cars, hot meals, private schooling for the kids, and the list goes on...

I look around and envy all those people who have more than I do. I become sad and angry, complaining to myself that I’m doing something wrong and that’s why I’m not as successful as those people. I strive to achieve that dream lifestyle but I can never see myself totally satisfied.

One year, in 1999 to be exact, I went back to my native Vietnam for the first time since departing in 1975. I was struck to see how millions of people were still living in poverty. Houses and buildings were covered with mold.

Bicycles and motorbikes were rusted. People were using public roads and bridges as restrooms. Back then, a buck or two per day was the average pay for the locals in the city.

Professionals such as engineers, nurses and doctors would average around eight to ten dollars a day.

During my trip I also went into the countryside where I witnessed less-fortunate families and their living conditions. The shelters were just leaves and branches neatly packed and constructed to prevent rain from pouring on the soft dirt ground inside. They sought hard labor work, which paid around a dime a day. There was no potable water in these areas. They bathed, cooked and drank from the same source of water, the Mekong River. Sewage was also disposed into the same water. Every year during the monsoon season, the rainwater would flood their hometowns, roof-height, and they were left with nothing again.

I also visited the local hospitals and isolated territories.

That’s when I shed tears. I saw everything from babies born with birth defects to elders crippled from leprosy. I saw babies that I thought were aliens, toddlers with twisted bodies and people with no fingers and toes. I talked to the caretakers there and asked how I could help. They said I could help by providing jackets or blankets and milk for the babies, and dried ramen noodles or rice for others in need. I had to go back to the city to purchase those things because they didn’t have them in the countryside. On average, the jackets and blankets sold for $4 each, but the defectives I found were 50 cents to a dollar, so I bought those to provide more.

After witnessing how unfortunate those people were, I realized how blessed I am for what I have. Since then, I traveled to many different parts of the country to learn about their needs in order to prepare my charity missions.

I have encountered many obstacles but the needy faces of the people have encouraged me to continue my mission.

Can you believe there are areas where the locals have never seen a foreigner nor had a chocolate candy or piece of gum?

I would like to thank the AREAA members who have graciously donated to this worthy cause this year, helping me to extend my charity work.

I nterested in supporting charity efforts in V ietnam? Contact James Lee at happyhomes888@yahoo.com Photos courtesy of James Lee

AREAA Business Network Terry Cooper

Managing Vice President, Global Development Realogy Corporation 1 Campus Drive, Parsippany, NJ 07050 1-973-407-7235 Phone Terry.Cooper@realogy.com www.realogy.com We are the Global Development arm of Realogy Corporation. Seeking qualified Master Franchise Operators for our World-Class real estate brands.

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Lidia Yun

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AREAA Business Network Nancy Suvarnamani MA, ABR, CIPS, CRB, CRS, RSPS, CDPE

/ President

Century21 S.G.R., Inc. 1823 S. Michigan Ave., Chicago, IL 60616 1(773)908-9908 Cell 1(312)326-7911 Fax Nancy@Century21SGR.com www.Century21SGR.com Specializing in the: - Acquisition and disposition of distress properties - The representation of international investors - Residential/commercial property consulting Representatives fluent in over 20 languages.

Kana Kakihara-Oh, ASID Principal

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Julia Yong-hee Park, Esq.

Kathy Tsao 曹凱西

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Continued on the next page

Texas, the Lone Star State

AREAA Business Network Trang Dang-Le

REALTOR®, GRI, ABR, GREEN, SFR Keller Williams Realty Plano 3600 Preston Road, Ste #100, Plano, TX 75093 (214) 563-2438 phone (972) 599-7000 fax trangdangle@yahoo.com www.trangdangle.com I’m a Full Service Realtor, fluent in English and Vietnamese, so call on me for all your real estate needs. Facebook: Diem-Trang Dang-Le

Daniel C. Eng, CCIM | CPM©

Kenneth Li

吳家盛

Century 21 Southwest Real Estate 6918 Corporate Dr., #A5, Houston, TX 77036 713-988-1668 Office 713-271-9988 Direct kenneth.li@century21.com www.kennethli.com

President

ENGVEST REALTY 7005 Chase Oaks Blvd, Suite 200 Plano, Texas 75025 469.916.8888 Office 214.926.3666 Mobile daniel@engvest.com www.engvest.com

Serving: Houston, Texas, USA Specializing in: Commercial and Residential sales, leasing and property management.

Realtor since: 1987 Languages spoken: Chinese (Mandarin/Cantonese), Vietnamese/Hispanic Staff

Specializing in Commercial Real Estate Investments and Property Management

Kelley Liu, ABR®, REALTOR® 陳盈蓁 Keller Williams Realty Plano 3600 Preston Road, Ste #100, Plano, TX 75093 469-569-3631 Cell 972-599-7000 Office KelleyLiu168@gmail.com www.DFWiRealty.com Your REALTOR®, Your Advantage!

Specializes in luxury homes in the Dallas, TX area!

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Broker/Owner, ccim, crs, cips, gri, cpm

Get access to exclusive Asset Manager interviews Start a discussion and get advice from other members Learn about special promos and discounts

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Patrick Lieuw:

First Asian American President of the

Sacramento Association of REALTORS

by Jody Wright Photos courtesy of Patrick and Tiffany Lieuw

n January 10, 2012, AREAA cofounder Allen Okamoto swore in the new Officers and Board of Directors of the Sacramento Association of REALTORS (SAR). Among them was Patrick Lieuw, the first Asian American President of the 6,000-member SAR in its 104-year-old history and a founding Director of the Sacramento Chapter of AREAA. Also in attendance at the installation proceedings was AREAA co-founder, John Wong, as well as the President of the Sacramento Chapter of AREAA, its Officers and Directors.

Lieuw as a young professional at Bechtel

From Hong Kong to SAR President When he was 13, Patrick Lieuw’s parents moved him and his six older siblings from Hong Kong to the San Francisco area. In not quite 10 years, fresh out of Cal Poly with a degree in hand, Patrick embarked on a career in engineering with Bechtel while marrying his college sweetheart, Judy. Another decade later, he and Judy settled down in Sacramento to raise their three daughters while Patrick managed multi-million dollar projects for Aerojet.

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Lieuw again at Bechtel, 1980

Patrick and Judy tie the knot, 1977

Lieuw volunteering time to give back to the community

In 1988 Patrick decided it was time for a career change and obtained his real estate and broker licenses. Ever since, for some 23 years, he has made his living as a REALTOR. Since being honored as the “Rookie of the Year”, Patrick has been a consistent top producer. Patrick has experienced many real estate cycles, from boom to bust, to boom again, and through it all he has made close to $100 million in sales.

Active Member of the Community While raising his family, Patrick was deeply involved in the public school system. He sat on the John F. Kennedy High School Principal’s advisory committee and was a parent representative on the school principal interview panel for the Sacramento Unified School District. His daughters recall how he walked the halls of the high school in shifts with other parents helping to maintain order.

Nowadays, you can find him participating in Habitat for Humanity, Rebuilding Together, Susan G. Komen for the Cure, Loaves and Fishes, NeighborWorks America, the HOPE NOW Alliance, the

Sacramento Tree Foundation, Sacramento Chamber events, or busy organizing activities like the Sacramento Association of REALTORS CanTree fundraiser.

Active in His Profession Patrick has always felt a personal responsibility for having as positive an impact on his profession as possible. This is Patrick’s seventh year serving as a State Director for the California Association of REALTORS (CAR). Last year he was the Issue Chair for its Land Use and Zoning Committee and the Regional Representative for its International Real Estate Forum. He is also a certified instructor for CAR ZipForm.

On the founding Board of Directors of AREAA Greater Sacramento for the past two years, Patrick has also served as the Historian for the Women’s Council of REALTORS, Sacramento

Chapter, and received their REALTOR of the Year Award.

Within the past couple of years, Patrick has served as Secretary/Treasurer, then President-Elect of SAR, following several years on its Board of Directors. He is a past member of the Board of Directors of MetroList Services, Inc., and was on its Advisory Committee for several years. He is a recent past chair of the SAR Industrial

Lieuw with Congresswoman Doris Matsui (D-CA)

61

Forum, the SAR Budget Committee, its Equal Opportunity & Cultural Diversity Committee, and a past vice-chair of the CAR MLS/Computer and Business Technology Committee as well as its Expo Advisory Committee. Whether on the state or local level, he has served on other committees as varied as property management, taxation, real estate finance, new agent task force, strategic planning, a golf tournament fundraiser, and promotion and publicity.

In the News Patrick has sought to make the complex issues of real estate as comprehensible as possible to the general public. On occasion, local newspapers have published his articles related to confusing aspects of real estate. In return, local reporters have come to him for his real estate expertise.

Allen Okamoto installs Lieuw as SAR President

Patrick’s Focus for SAR in 2012 Patrick’s theme as President of the Sacramento Association of REALTORS for 2012 is “Focus on Collaboration”.

He sees the many differences embodied by members as exciting, making the association stronger and more interesting.

He also plans to expand the association’s collaborative efforts to other real estate associations, including the Asian Real Estate Association of America (AREAA), the National Association of Real Estate Brokers (NAREB), the National Association of Hispanic Real Estate Professionals (NAHREP), and the Women’s Council of Realtors (WCR). Going a step further, he envisions the collaboration extending to non-REALTOR affiliates, the title companies, bankers, home warranty companies, appraisers, inspectors, and even the moving companies —every aspect of real estate—in a comprehensive effort to improve the experience for both SAR members and their clients.

National and Local AREAA leaders gather to celebrate Lieuw’s installation as SAR President

Visit the Sacramento Association of REALTORS online:

http://www.sacrealtor.org/

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facebook.com/areaa.national

AREAA Education Foundation

Executive Leadership Institute:

Inaugural Class Goes to

Stephany Oliveros

New York and Columbia University

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"I want to thank the AREAA Foundation for selecting me to attend the Columbia University executive leadership program. The course taught me that the difference between successful negotiators and others is not the lack of skills or knowledge, but rather the fear of failure.

Therefore, never be afraid or you will never succeed."

Aaron Yu Stephany Oliveros

T

the world, which provided a profound he leadership program was beyond learning environment. We saw ourwhat we had expected. It offered a remarkable opportunity for professional selves negotiating with a university development and introduced us to unlimited official from Denmark, marketing executive from a tobacco company possibilities. based in Argentina, lawyer from MiThe academic environment at Columbia University was astounding. Not only were we ami, vice president from a medical equipment company in Massachusetts, educated on concepts like BATNA (Best Alinsurance executive based in New ternative to Negotiated Agreement), anchorJersey, and a director of an oil company ing and adjustment, ZOPA (Zone of Possible Agreement), claimJoe Vericker, PhotoBureau Inc. ing and creating value, and authentic communication; we were applying them to real life situations with role-playing exercises. It was a privilege to be part of a highly accomplished class from diverse geographical, cultural and professional backgrounds. Our class Meeting with Frank Bisignano and was represented by Chase high above Manhattan countries all over

Praveen Sharma

who came all the way from Brazil. Numerous opportunities were presented to interact with classmates and hone our negotiating skills. The faculty was of high caliber as well. They were insightful, energetic and engaging. The Negotiation and Decision Making Program will serve us well as we embark on the future. We look forward to applying the strategies we’ve learned and highly recommend this class to real estate professionals.

Our evenings were packed with activities and meetings. We attended a seminar sponsored by the AREAA New York Metro chapter, in partnership with AARP. The forum encouraged an open discussion of challenges the senior segment of the Asian American community is facing. We also had an opportunity to enjoy a sumptuous Caribbean dinner with AREAA’s 2012 Chairwoman Kathy Tsao and learn more about her vision for the organization. An-

The Subway

other significant meeting was the planning of AREAA’s 1st Global Real Estate Summit, held at the Chase Tower on Park Ave. Next stop, we mingled with the dynamic young professionals of New York City. What better way to relax and unwind

than scope the Big Apple’s vibrant restaurant and nightlife?

The last leg of the leadership program was an informational meeting with executives of Chase and Realogy. Our group was up bright and early on Friday morning, ready Praveen Sharma

"The leadership class equipped me with necessary tools to be confident in business dealings. Moreover, the meetings inspired me to elevate myself and strive for excellence in my work. I’ve learned that everyone can prosper as long as they plan, strategize and create environments of success. The most rewarding part of the program was an opportunity to connect with AREAA peers and the executive leadership team: Allen Okamoto, Kathy Tsao, Jim Park, Ivan Choi, Tanya Reu and Donna Miller."

Stephany Oliveros

65

- AREAA Education Foundation Executive Leadership Institute Class of 2012

Praveen Sharma

for another exciting adventure. Meeting with JPMorgan Chase Chief Administrative Officer, Frank Bisignano, was not only inspirational, as he shared his experiences and thoughts on being a genuine leader, it also provoked a sense of moral responsibility. As AREAA Foundation’s inaugural class, we have to be good examples to our peers in action and words and have an obligation to give back. To be a leader is a conscious decision that requires regimentation, delivery and consistency. We also felt a sense of pride as Chase signified their continued support for AREAA’s mission and their commitment to strengthening our partnership. We are also excited about Chase’s plans of growing further into Asia.

After breakfast and a fun photo shoot with Chase executives atop the New York skyline, we headed to Parsippany, New Jersey to meet with Realogy executives. We enjoyed lunch in their sprawling headquarters, learned about the different Realogy brands and their executives’ vision for our industry. We felt privileged sitting next to the likes of Michael Good of Sotheby’s International, Budge Husky of Coldwell Banker, Sherry Chris of Better Homes & Gardens, Alex Perriello, CEO of Realogy and more. They were delighted to see us and were enthusiastic to share their successes in the marketplace. Each of them reminded us of the abundance of opportunities available in this rapidly changing environment. They earned our respect with their eagerness to answer our tough questions, their openness and transparency. We found them to be great leaders we would love to emulate.

[ In Alicia Keys Voice ] "New York, concrete jungle where dreams are made of, there's nothing you can't do, now you're in New York. These streets make you feel brand new, big lights will inspire you. Lets hear it for New York."

Feeling brand new, we were definitely inspired by those big lights. The opportunity to participate in the first class of the AREAA Education Initiative was unbelievable.

We sharpened up our negotiation skills, fine-tuned our decision-making strategies and met with top leaders in our industry. I couldn't ask for better "classmates" to share the experience with. Every day was an adventure from getting lost to meeting with some of the AREAA folks from the NY Metro Chapter. We were privileged to have dinner with AREAA Chair, Kathy Tsao as she showed us around her vibrant city. Sitting on the 48th floor in the Executive boardroom with Frank Bisignano, the CAO of JPMorgan Chase and AREAA leaders was pretty amazing. I wish I had a view like that from my conference room. Meeting with the executives from Realogy was equally as amazing. Their insight and diplomacy gave me a whole new perspective.

Listening to these industry leaders including CEO of Realogy, Alex Perriello, was a once in a lifetime opportunity. This whole experience made possible by the AREAA Education Foundation has been priceless and eye-opening.”

Jim Park

Geremy Yamamoto

The executives of Realogy welcomed us to their headquarters in New Jersey for an exclusive meeting with leaders of each of their brands

66

Praveen Sharma

“The energy of the city, taking an executive education course at prestigious Columbia University with the most amazing and engaging professor, meeting top executives at Chase and Realogy, bonding with my classmates and connecting with our fellow NYC AREAA friends, made this trip unforgettable. I am so grateful for this experience AREAA Education Foundation has given me.”

Kai Ito

“This is one of the most wonderful experiences I’ve had, because we got to learn about negotiation and decision making, and it was presented in a way that anyone can understand. We learned how to work with people so that there’s no money left on the table. I practice this knowledge every day.

It’s interesting because some days I fail and other days I am successful. It’s exciting to see how you can implement what you were taught in everyday life. I wouldn’t have the opportunity to meet Chase and Realogy executives if it weren’t for this program, and hear from them about their experiences on what got them to where they are today.”

Five days, four nights staying in New York City, with only a few hours of sleep each night, not only gave me the opportunity to know the future leaders of our group, but also empowered me to move forward.

I highly appreciate Donna Miller for her unselfish support to AREAA and the AREAA Education Foundation, as well as for arranging a meeting with Chase executives, including Mr. Frank Bisignano. I was touched by Mr. Bisignano’s account of the sacrifices his hardworking parents made to send him to Catholic school. Although they were from humble beginnings, his parents would make it a point to save for his education by putting money away in separate envelopes. He said, “We need to teach people how to manage their finances.” This hit me like a thunder in the sky. Hasn’t this been a fundamental issue facing us, more so felt in this current economic crisis? Being in the trading enterprise and real estate industry for decades, I have always encouraged my agents and co-workers to continue educating themselves and to “go back to basics”. What I learned from Mr. Bisignano will be remembered for a long time.

Park Avenue

Jim Park

Praveen Sharma

Caron Ling

Dinner with Chair Tsao

I cannot thank these leaders enough: Mr. Allen Chiang, Mr. Allen Okamoto, Mr. Jim Park for having the vision and pioneering this program. The warmest hospitality from our Chairwoman Kathy Tsao is greatly appreciated, as well as Tanya Reu’s gracious arrangement to meet with Realogy executives at their headquarters. This is truly an experience of a lifetime.

Lidia Yun 67

How the Young Professional Competes in Today’s MarketPlace

By Ryan Edwards

68

E

very day we see more young practitioners join the real estate industry who not only compete, but excel in their profession.

The young professional is faced with a more challenging market today than most real estate professionals have seen before. Not only do they face changes with technical advances but also the historic flood of distressed homes that now dominates almost every local market. The immersion of our technology-driven world has found its way into our industry and has consumed it. Nowadays you can’t complete a transaction without encountering some form of new technology. If you don’t have a basic understanding of certain file types, Internet abilities and interactive platforms, you will find it difficult to have a smooth transaction. theEDGE is committed to remaining on the cutting edge of such technology and bringing it to our members to empower their businesses.

Technology and Social Media One topic that doesn’t scare the new era of real estate professionals is technology and social media. Let’s face it, technology is not going anywhere and will continue to evolve at a pace that we can’t keep up with. Social media will be one of the driving forces of how business is conducted in the future. In the age of iPads, Droids, Apps, Facebook, Twitter, LinkedIn, SEO and the constant development of new software and platforms for doing business, it can easily be overwhelming. Embracing the use of technology, social media and different types of communication styles has proven to help level the playing field for the younger agent versus the seasoned veteran that may have decades of experience building their business and client base. Instead of traditional methods of prospecting such as door-knocking and cold calls, these agents are finding homebuyers on Twitter or using YouTube Channels to promote themselves. Instead of simply e-mailing their

nd a

a

T

Education Another distinction that identifies today’s young professional is the hunger for education. This education can come in the form of learning new tools and strategies, or through mentorship. A good mentor, who is willing and qualified to lay out a solid foundation for building long-term success, can be a key element in a young professional’s development.

Additionally, continuing education, on everything from local real estate laws to new business opportunities to efficient business models, plays a large role in a young real estate professionals’ success. With all the train-

for

Knowle dge

Social Media sphere of influence and sending out market updates, they’re staying in touch on Facebook, blogging and sharing funny YouTube videos with their friends and family. It’s funny, if you ask a kid in high school “what’s your e-mail address” they will probably laugh and say look me up on Facebook. As times are changing, so must our methods for generating new business and staying in contact with past clients.

t s r i h

ing and certifications available to REALTORS today, we have all contemplated which of these classes will help our business. Professional development can be a huge investment of both time and money, so we all want to be sure that we are choosing the right certifications. There are National Association of REALTORS (NAR) designations focused on the distressed asset market, such as Short Sales and Foreclosure Resource (SFR) and Broker Price Opinion Resource (BPOR). Then there’s the e-PRO® certification, designed to help agents connect with online real estate consumers. Leading institutions in the default industry, such as the Five Star Institute, offer REO and short sale certifications that provide a great foundation for understanding how to work with distressed sales and with corporate clients. There is also the Certified Distressed Property Expert (CDPE) certification that provides detailed training for successfully working with short sales. Commercial professionals can become a Certified Commercial Investment Member (CCIM). There are several other BPO and valuation certification courses, along with the individual certifications for each portal or platform that assists in the disposition of distressed assets.

So which ones do we chose? To answer this question you should look at the areas of expertise covered in your 2012 business plan.

Next, talk to your peers about the designations or certifications that they have completed and how that coursework has helped their business. Also, talk to your clients and see if there is any certification that they require or recom-

mend. Lastly, do your research and pick the certifications that best fit the type of business you want to focus on and you feel offer the most in-depth education. Acquiring education and designations is never a bad thing.

It demonstrates a proactive interest in your career development, which will help you best serve your clients and represent the real estate industry as a true professional.

With today’s young professionals emerging in the fast-paced, ever-changing real estate industry, they will undoubtedly be our future leaders. Many young professionals will change the way business is conducted and change how office systems are structured. theEDGE is committed to being there to help promote the success of its members and empower them to be the future leaders of our industry.

theEDGE is dedicated to inspiring, empowering, educating and connecting AREAA’s young professional real estate community by complementing leading industry practices with innovative technology and social media to develop the next generation of AREAA leaders and to better serve the Asian home buying community. Find out more at: www.areaa.org/EDGE

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Around The From the new Executive Director

F

Hope Atuel

or almost ten years now, AREAA has come a long way. The association’s successful journey has been propelled by the dynamic leadership of the Board of Directors and our dedicated staff, and the passionate work of our chapter leaders and members nationwide.

It is with great honor and pride that I serve as AREAA’s firstever Executive Director, helping to lead the association as we continue to fulfill AREAA’s vision with more vigor and zeal. With the support of the rest of the professional staff, I am committed to pursuing the association’s mission and vision of promoting sustainable homeownership opportunities in the Asian American communities by creating a powerful national voice for housing and the real estate professionals who serve this dynamic market.

Looking back at the tremendous growth of our association gives us better insights into AREAA’s future. Armed with the vision to serve the Asian American population through building a network of real estate professionals, founding chairs Allen Okamoto and John Wong worked tirelessly to grow AREAA’s membership base from a few hundred members in 2003 to over 12,000 members to date. Shortly after its inception, Jim Park joined AREAA’s leadership team and provided organization and structure to a growing association. It is quite amazing to see that in a decade when most associations have experienced significant attrition in membership numbers, AREAA has seen unparalleled growth as evidenced by the increase in our membership and chapters across the country.

Just recently, we added a new international chapter in Canada led by John Geha. By the end of 2012, it is AREAA’s goal to add at least seven more chapters that can help sustain the association’s growth through local engagement and support of its members.

F San

Chairwoman’s Journal

by Kathy Tsao

isco

ranc

With Aaron Yu at the helm of the chapter development committee, we have begun the process of reviewing chapter minimum requirements while continuing to develop resources and tools that will assist in local chapter operations. In April, AREAA will bring together its chapter presidents and boards of directors for an intensive leadership summit that will focus on training future leaders of the association.

The number of national committees has jumped from 12 to 17 last year and we have more members engaged in volunteerism and leadership than ever before. To better streamline the association’s governance process, Chairwoman Kathy Tsao appointed a governance committee led by national board member Mark Kitabayashi. This committee’s primary objective is to recommend a more effective and efficient governance structure for AREAA and deliver its report by the end of 2012.

Amidst the economic problems, difficulties and complexities that our nation faces, AREAA plans to build additional networks and business opportunities with key partners that can create ripple effects within our chapters and membership base. This includes the addition of Proxio as our newest member benefit.

Through Proxio, AREAA members will market their business internationally to buyers from all over the world. This web-based portal will connect AREAA members with a network of more than 450,000 agents from over 100 countries.

Considering the present circumstances and challenges that our association faces, it is imperative that AREAA continues to plan, scan and adjust organizational priorities that best meet our membership needs across the country. Identifying where we are at present will assist us in focusing on our strengths and building on opportunities in the immediate future. As part of this process,

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10/2/11, Sun, SF - 5,172 Miles The 2011 AREAA National Convention in San Francisco was a huge success, everyone was super charged. We had our first executive Board of Directors meeting followed by our 2012 committee orientation. This meeting gave all the leaders a chance to meet with each other and also help them understand the structure and process, as well as set goals for the coming year. All committees were present: Chapter Development, Commercial, 2012 Global Summit, 2012 Annual Convention in Las Vegas, Default Services, Communications, Consumer Outreach and Education, the EDGE, Professional Education Development, Membership and Member Services, Housing Policy, International, Task Force on International Chapter Development, Strategic Planning and Finance, Executive Director Search Committee and Governance Task Force. We were ready to work and were in high spirits.

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C York New

10/6/11 to 10/17/11, Thurs-Mon, Taiwan - 15,606 Miles Taiwan Trade Mission - With a delegation of 11 people, we had great opportunities to network with the China Real Estate Association of REALTORS, C21 master franchise, CBRE, CCIM members, etc. We made a lot of good contacts. I am looking forward to meeting them in the U.S.A. Thank you Michelle from Arizona Chapter for organizing this trade mission. Betty and Rita from the International Committee will do the follow up and recruit more people to attend our upcoming conferences. Many thanks to the NY Metro chapter for initiating and organizing our first international outreach effort and thanks to all of those volunteers for their strong support and participation in this endeavor. High fives to all of the trade mission delegates!

10/18/11, Tue, NYC I participated as a panelist on the Manhattan Association of REALTORS project entitled “Global Market is the New Local Market”. Both

A s s oc i a t i o n Chairwoman Kathy Tsao has commissioned a membership survey to better understand our members’ demographics. Data collected from this survey will provide a baseline to help with implementing our strategic plan.

Other key initiatives that we will undertake this year include the following: Web Site Redesign: The Board of Directors have allocated resources to support a complete overhaul of AREAA’s web site. We plan to start the process mid-year and to launch a new site by 2013.

Online Resources for Chapters: It has been Chairwoman Kathy Tsao’s vision to provide an online portal for chapters to access templates and other tools to assist with the day-to-day operations of the chapter. Later this year, AREAA will launch an exclusive online library that will offer business tools for both national and local leaders.

Increased Advocacy Efforts on behalf of AREAA members and the Asian American community: To support AREAA’s vision, we have committed to advocating for policy positions at the national level that will reduce homeownership barriers facing the APA community. As part of these efforts, AREAA will be hosting an Advocacy Day on May 7th. Also, for the first time ever, AREAA, alongside the Asian Pacific American Institute for Congressional Studies (APAICS), is underwriting a housing fellowship program. AREAA and APAICS have jointly created this program to provide fellows with the unique professional and educational experience of serving as full-time staff in the U.S. Congress. The fellowship was established to develop a pipeline of leaders who are dedicated to addressing the diverse housing and community development needs of the Asian American and Pacific Islander (AAPI) communities.

In the next few months, I, alongside our staff at the national office, am committed to taking John and Allen’s original vision of serving the Asian American population across the country. It promises to be an exciting year, and I’m thrilled to have the honor of serving as your Executive Director.

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Islan

A ia, P

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Dawn from the Chapter Development Committee and Tanya from the International Committee were there and we exchanged a few new ideas. The turnout was great. We recruited a few new AREAA members. Yay! 10/27/11, Thurs, Long Island-NY We celebrated NAHREP’s anniversary at Leonard’s in Long Island. Their national chairwoman, Carmen Mercado, was sitting next to me. We marveled at how our paths have crossed so many times. We really treasure our friendship on both a personal and association level.

10/28/11, Fri, Philadelphia - 194 Miles Dawn from the Chapter Development Committee and I drove to Philadelphia to visit our Philadelphia Chapter. We met with the chapter president Dr. Vo and the founding chair Chuong as well as Tony. We had a very nice brainstorming session and we shared with them some of the new 2012 initiatives. Dawn and I brainstormed on various issues as to how we could provide more support to our local chapter.

AREAA Central Valley California Supports Local Children's hospital "It’s time to give back! AREAA Central Valley has donated to Child­ ren’s Hospital Central California. They are one of the largest children’s hospitals nationwide, and we are very proud of them for taking care of our children who are our future.

"I want to say thank you to the entire Board of Directors and Advisors who have worked hard in this chapter in 2011 to make this happen.

We are looking for more great events to help promote more ownership in the Valley."

- Kayin Ho

, NV

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C York New

11/4/11 Fri, Las Vegas/Ontario - 3,094 Miles We had our first 2012 National Convention Steering Team meeting. Lots of great ideas were floating around. We want to take what we learned from the 2011 convention and make it bigger and better for 2012. I boarded the 5:30 p.m. flight to Ontario, California. I met with Lina Chu and a few of her local directors from the Inland Empire chapter for a quick bite in the hotel. They were doing their last minute preparations for the upcoming Parade of Homes. It was wonderful to listen to these devoted and committed directors about their experience and goals. Lina is in charge of our Special Task Committee under the international committee to help us build a transactional platform as part of our international outreach efforts. She shared with me some of her ideas. I know we are in good hands.

11/5/11 Sat, Ontario/NY I was in the Hilton Hotel lobby by 7:30 a.m. Lina and her entire volunteer team of about three dozen people were already assembled and Lina was briefing everyone for the day’s big event – the Parade of Homes. The event also included a bi-lingual

Around The AREAA S a n F r a n c i s co P e n i n s u l a Ho l i d a y P a r t y P hotos by F rank J ang

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educational seminar by our volunteer leaders. Our national partners, such as Chase and Wells Fargo, sent out their entire team of local loan officers to support this event. The most amazing sight was the buses outside of the lobby waiting to take potential buyers on property tours. I believe more than 150 properties were included in this open house tour.

My hat is off to Lina and her team.

I was deeply moved by the scale of involvement and the amount of work they have put in to this event. They’re a new chapter, less than one year old, and yet they could host this impressive event by themselves. They need to be recognized by us. Thank you Lina and your wonderful team for doing this for the community. Also, thank you very much for letting me be a part of the event. I sent photos, emails, and texts to the Consumer Outreach Committee, my message was “we need to find a way to get more chapters involved nationwide”.

11/10/11, Thurs, Anaheim - 3,094 Miles I attended the NAR convention and several of their diversity committee meetings. Thank

CA

A es, C

ngel

Los A

you Fred Underwood for your invitation and for including us in this wonderful event!

The AREAA International Committee also hosted a welcome reception for our REALTOR friends from Japan and Taiwan. Cheers!

11/28/11, Mon, San Diego - 3,315 Miles I had a meeting with our Executive Director candidate: Hope Atuel. Our two-hour discussion went by so fast! We knew we had someone special here. She was the ONE! I want to thank Tanya and our Executive Director Search Committee for a job well done. Hooray!

11/30/11, Wed, LA - 6,188 Miles I attended AREAA Southern California Tri-County (SCTC)’s board of directors meeting.

We had a really nice discussion on several issues and I further understand how transparency and effective communication are keys to connecting national and local. I shared with them what we have in store for 2012. I want Shinglian and the SCTC directors to know that we will incorporate some of their great suggestions into our upcoming leadership summit. At 7:00 p.m., I had a very nice dinner discussion with three presidents and one

A s s oc i a t i o n AREAA - D C M e t r o C h a p t e r N a m e d L e a d e r i n S e r v i n g t h e AAPI Ho u s i n g N e e d s o f V i r g i n i a The AREAA DC Metro chapter was recognized as a leader in serving the housing needs of the Asian American and Pacific Islander (AAPI) community of Fairfax County and Virginia during Asian American Appreciation Day on December 3rd.

“Since the beginning of the housing crisis in 2009, AREAA DC Metro has championed foreclosure prevention efforts in Fairfax and Prince William Counties helping hundreds of families keep their homes,” said Genie Nguyen, VVA President. “AREAA DC Metro also led educational sessions for AAPI REALTORS to provide information about properties in distress and short sales. These sessions support neighborhoods’ stabilization efforts during the worst time in the housing market. Asian Americans appreciate the compassion illustrated through actions of the AREAA DC Metro Chapter Board of Directors.”

Actively involved with grassroots organizations, AREAA DC Metro also works closely with other professional real estate associations in the area and has partnerships with the Northern Virginia Association of REALTORS (NVAR), the Greater Capital Area Association of REALTORS (GCAAR), as well as many financial institutions, such as Chase, Wells Fargo and Bank of America.

“We are planning to have an International and Commercial Committee to serve increased Asian Americans’ demands” said Grace Choi, AREAA-Metro President, “as well as setting up more educational sessions in default properties with real connections to all the asset managers, to support our member REALTORS.” George Soo Hoo, Chairman of AREAA DC Metro, proudly asserts: “Our members enjoy tremendous benefits, ranging from valuable connections with financial institutions, asset managers, housing policy makers to a vast network and support system, from local, state, to national and international.” Chairman Soo Hoo is also an attorney leading an established title and settlement company.

At the same time, Song Hutchins, Founder of AREAA DC Metro, emphasizes that her main focus remains on bringing homeownership to all Asian Americans, to realize the American Dream. Asian Americans and Pacific Islanders are grateful to all the accomplishments that AREAA DC Metro Chapter has contributed to the community.

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VP from four chapters: Inland Empire, Greater Los Angeles, SCTC and Orange County. Thank you Heather, Lina, Shinglian and Rita for all of your great input.

12/1/11, Thurs, LA - 704 Miles At 11:00 a.m., I met with the incoming president, Peter Park, Heather and some of the local directors. What a terrific group! They will be hosting a charity event at a hospital. They have big hearts! At 7:00 p.m., I was at the Diamond Bar Civic Center with my suitcase to attend SCTC’s holiday party. We enjoyed their short presentation covering what they have achieved in their first year. Everyone was in great holiday spirit. At 11:00 p.m., I boarded the plane heading to Ho Chi Minh City.

Hello Vietnam, here we come.

12/3 to 12/9, Sat to Fri, Saigon - 16,671 Miles The trade mission group met for the first time in the airport. Jim joined us the next day. For the next several days we hosted a successful conference and attended several wonderful business meetings and networking events. The highlight of the trip

George Soo Hoo - Chair, Anne Thai - Board Member, Grace Choi - President, Genie Nguyen - Chair-Elect, Tuyet Bui - Member, Sonatta Camara - Member, Rocio Duty - Secretary, Andy Ling - Board Member

AREAA DC Metro Leaders accept their award: Andy Ling - Board Member, Grace Choi President, George Soo Hoo - Chair, Rocio Duty - Secretary, Genie Nguyen - Chair-Elect

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was when we signed the MOU with the Vietnam National Real Estate Association.

We could see that our overseas friends were hungry for knowledge and they were very receptive and loved to work with us. We left Ho Chi Minh City on December 9th. Thank you very much to David and Thanh from the Greater Sacramento Chapter for organizing this wonderful trade mission for us!

12/9/11, Sat, LA - 3,094 Miles We traveled back to LA from Hanoi. I had the honor of installing Beena as the new chapter president for AREAA Inland Empire. Congratulations to Inland Empire chapter’s new leadership team. I am looking forward to working with all of you.

12/14/11, Wed, NYC I invited the AREAA Education Foundation Leadership Institute Scholars and Kate to dinner. I could feel the excitement from this great group. We really had a great time at Cabana.

Around The AREAA D a l l a s / Fo r t W o r t h C e l e b r a t e s the Lunar New Year and 2012 Board Installation On Friday, January 20, 2012, AREAA Dallas/Fort Worth (AREAADFW) held its annual Lunar New Year party and 2012 Board Installation at chapter president James Chen’s residence in McKinney, Texas. Over one hundred members and guests joined the party, happily networking and toasting. It was filled with holiday atmosphere.

Esteemed guests included the Honorable Brian Loughmiller, Mayor of the City of McKinney; Louie Ocana, Dallas/Fort Worth division president of Meritage Homes; Joe Velazquez, vice president of neighborhood lending at Bank of America Home Loans; and Stephanie Couser, assistant vice president at Wells Fargo Home Mortgage. AREAA immediate past chair Kenneth Li and Greater Sacramento chapter president David Tran also came to celebrate with the Dallas/Fort Worth chapter.

Mayor Loughmiller made a speech, giving high praise to President James Chen’s contribution to the City of McKinney’s international economic development by introducing the city to Asia as a dedicated ambassador and bringing many contacts and opportunities to the city. He said, “He’s just really done a lot for the city…and doesn’t ask for anything in return [from the city].”

This is James Chen’s 2nd term as chapter president. He said, “I’m truly honored to be the president of AREAA-DFW. The journey for AREAA has brought me new friends and new opportunities. It has been a challenging last few years. What I learned from the past is to be positive, persistent, patient, and never give up.” He continued, “I encourage each of you to join me and build the best chapter of AREAA in the country.”

Mr. Chen also awarded the long-term sponsors Bank of America Home Loans and Wells Fargo Home Mortgage for their support and cooperation. Three of the chapter’s most active leaders also received leadership awards.

The new executive board for 2012, the 3rd year board, was introduced. James Chen continues to hold the position of President, Dionne Cuello as Vice President, Michelle Lee as Chancellor, Trang Dang-Le as Treasurer, William Tsao as Secretary, Kelley Liu as CEO, and Taylor Willingham as Legal Counselor.

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#1 AREAA immediate past chair Kenneth Li came from Houston with a special gift for James Chen. #2 Godwin Tsui, Michelle Lee, Beth Rogers, Kelley Liu, Dionne Cuello, James Chen, Trang Dang-Le, and Daniel Eng. #3 James Chen awarding sponsor Wells Fargo Home Mortgage assistant VP Stephanie Couser. #4 James Chen awarding sponsor Bank of America Neighborhood Lending VP Joe Velazquez. #5 (L-R) James Chen, Louie Ocana, Mayor Brian Loughmiller, David Tran, and Abby Liu

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12/16/11, Fri, NYC Donna and Rodney from Chase hosted a wonderful breakfast meeting for the AREAA Education Foundation Leadership Institute Scholars. It was wonderful to see Allen Okamoto, Jim and so many scholars in my hometown.

happy group; we had great interactions and discussion. My message was that we are one big family. We will find ways to improve our communication and to better support each other. I also encouraged them to reach out and partner up with other local organizations to do more joint events. I could see their 2012 event calendar was almost full. Vicky and Nancy have done a great job. Keep growing. Vicky and Nancy and I got on a call with Shonee from the San Diego chapter to brainstorm how to invite more international guests to our conference. On my way back to the airport, they gave me a beautiful gift--a nice t-shirt with a Chicago logo. I am so grateful to them for their friendship and support.

1/10/12, Tues, Chicago - 402 Miles On this unusually warm day in January, I visited the Chicago Chapter and attended their directors meeting. Nancy and Vicky have a great team here as well. I introduced our new Executive Director, Hope Atuel, to them and we discussed our new initiatives. I encouraged all the volunteer leaders to take their position as a special privilege and honor. I mentioned that it will require some sacrifice and lot of hard work, however, it will be a very rewarding experience in their life because they will be able to meet and work with so many wonderful people for a common purpose and mission. This was a very lively and

1/11/12, Wed, DC – 500 Miles Dawn from the Chapter Development Committee and I attended the DC Metro chapter’s board of directors meeting. Grace and her chapter received a special award from the governor back in December. We are so proud of them. We had a very interactive meeting, I encouraged all the leaders to take pride and ownership of this association and get involved. I am so glad to see they have three directors that are also serving on national committees. Two hours went by so fast, it was time to catch the train and go back home. I must go back again!

12/15/11, Thurs, NYC We had our first Global Summit Committee meeting in NYC. We exchanged a lot of great ideas.

A s s oc i a t i o n LI O N D AN C ERS & NE W LEA D ERS !

On Thursday, January, 26th, 2012 AREAA’s Orange County, California chapter gathered at the Turnip Rose in Costa Mesa, California. The event’s purpose was twofold; one to welcome and install the 2012 Board of Directors for the Orange County Chapter and two to raise money for Collette’s Children’s Home (a non-profit that assists homeless women and children in Orange County, California). When asked why did you choose Colette’s Children’s Home as a charity, Aaron Yu, President for the Orange County Chapter stated “Colette’s Children’s Home’s mission mirrors our mission in assisting the residents of the communities we serve. They are the largest transitional housing provider for homeless women and children in the Orange County area and have provided over 2,000 women and children a safe place to call home.”

The event was packed with over 125 attendees and opened with an exciting Lion Dance, which ushered in the Chinese New Year! The evening’s festivities featured Al­ len Chiang (AREAA National Director & Past Chairman) highlighting the upcoming events for 2012 and installing the 2012 Board of Directors for the Orange County Chapter. The gala took an overall look at what to expect in 2012 with Roger Beane of LRES Corporation delivering a forecast for the real estate market. HELP (a local non-profit, dedicated to helping first-time homebuyers and distressed homeowners attain/retain home ownership) shared with members how they can assist residents of Orange County. The event concluded with successfully raising approximately $5,000 that was donated to Colette’s Children’s Home where it will impact many families throughout the Orange County, California area. Photos by Jeff Lu

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1/22/12, Sun, Las Vegas - 6,744 Miles This was the 2nd meeting of our 2012 National Convention Steering Team. We had a three-hour meeting, in which 30 volunteers actively participated. We accomplished a lot.

The 2012 Annual Convention is going to knock your socks off. I have to thank Heather for the wonderful birthday present. I love the t-shirt, it put a smile on my face.

1/25/12 to 1/27/12, Wed to Fri, DC – 458 Miles Thanks to NAR’s invitation, we have learned so much in these two and a half days about policy issues. RPAC money does work. Winnie sits on the policy committee of her California board and she has accepted my invitation to support our Policy Committee. This is really great.

1/24-25/12, Tues to Wed Charlotte - 543 Miles Hope, Jim and I met with our sponsors to review our past activities and brainstorm new strategies and ideas that will help both organizations to grow in 2012. Today, change is the only constant in our life, we need to respond and adapt. We need to really think ahead and continue to modify our methods and practices.

I can’t believe it, it has been only four months since I took over! Time flies after over 68,000 miles of traveling. I spent the first four months wanting to make connections with our chapters and members. As I said it over and over to all the leaders I have met, this is their organization as much as it is mine. Take ownership! Get involved! I want to thank the countless AREAA members that have shared kind words and encouragement with me through emails and phone calls. It means a lot to me. I still need their support, I still have lots of work do and many chapters to visit. Stay tuned!

1/25/12, Wed, DC - 330 Miles I was so happy to have some time to catch up with and get to know Hope better during dinner. She is a terrific lady and has spent her first week with AREAA almost entirely on the road.

Around The AREAA A r i z o n a I n s t a l l a t i o n In conjunction with celebrating Chinese New Year 2012, the Year of the Dragon, we were honored to have Arizona State Representative Kimberly Yee (District 10) attend and formally install the AREAAArizona 2012 Board Members on January 24, 2012.

Representative Yee has been a strong voice in the Arizona Legislature and has consistently offered her help and insight. She commended AREAA-Arizona for its hard work and dedication to sustainable homeownership. Founding Chair Shen-Yi Michelle Chang organized a successful event, bringing together dedicated real estate professionals from throughout the greater Phoenix area. Also invited and making congratulatory statements to AREAA-Arizona were former State Representative, the Honorable Barry Wong and Taiwan Overseas Commissioner, Tony Kao. With the help of our friends in the State Legislature and various community leaders, along with the dedicated work of our Board and members at large, AREAA-Arizona looks forward to another successful and prosperous year. We are committed to increasing our advocacy for sustainable homeownership, and to being an even stronger voice for the Asian community.

Front Row (L to R): Julia Kang, AZ State House Representative-Kimberly Yee, AREAA-Arizona Founding Chair-Shen-Yi Michelle Chang, AREAA-Arizona Chapter President-Jennifer VanTrojen, Gary Ong. Back Row: Heidi Erdmann, Taiwan Overseas Commissioner-Tony Kao, Vicky Lu, Grace Tung, Mingyi Kang, Sean Aske, AZ State Former House Representative-the Honorable Barry Wong.

AREAA I n l a n d E m p i r e ' s So You Think You Can Karaoke Inland Empire celebrated the year-end with a holiday event, "So You Think You Can Karaoke". This entertaining event consisted of seven contestants, after singing tunes and collecting donations in the form of votes, the audience and judges deliberated and announced three winners. First place went to Richard Chow of Wells Fargo and the board of directors; second place was Alisha Chen, representing AREAA IE and the board of AREAA OC; third place was Eric Frazier representing RSBC Realty & Finance.

The event brought out hidden talent to raise funds for Kristie's Foundation, our 2011 holiday charity recipient. Kristie's is a nonprofit with a mission to support families with critically ill children.

Our efforts raised funds to help two families enjoy Christmas with a Christmas dinner, stocking stuffers and presents.

Education is the pride of IE's member benefit. In collaboration with Freddie Mac, Provident Bank Mort足 gage, Citrus Valley Associa足 tion of REALTORS (CVAR) and The Career Compass; we brought insight of firsttime homebuyer programs and home preservation efforts with innovative marketing strategies. Guest speakers were Gayle Bryce, Strategic Markets ManagerFreddie Mac; Tonya Mosley, Speciality Products Administrator-Provident Bank Mortgage and Wellington Trainer Wellington Pendell of the Career Pendell, Trainer-the Career Compass Compass.

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Greater Chicago Community Outreach Event

AREAA-Greater Chicago presented a community outreach event at the Thai Temple, Wat Dhammaram on December 11, 2011 regarding foreclosure prevention and homeowners' options. There were home loan counselors present from Bank of America and Chase Bank. Speakers were Atty Budzik, Vicky Sil足 vano, AREAA-Greater Chicago Chair, Bathsheba Wyatt-Draper, NHS nonprofit home counselor, Kevin Gallagher, Assistant Manager, BAC Home loan counselor and Javier Diaz and Lawrence Walker, Chase Home loan counselor.

The community event was well attended by the Thai community. Although the presentation was in English, there were Thai translators, who made it easy for the audience to ask questions pertaining to their situations. Other board members present during the event were Cathy Shang and Barry Zachary. Nancy Su足 varnamani, AREAA-Greater Chicago Founding Chair, spearheaded this event.

AREAA I n l a n d E m p i r e L a u n c h e s B l o g It's 2012 and AREAA Inland Empire has kicked things off the right way, identifying that their members not only needed continuous value, but also to embrace today's methods of communication through technology.

With the average homebuyer being 30 years of age and nine out of ten potential homebuyers searching for their real estate online, AREAA decided to launch the first ever Technology Blog on January 6th, 2012 for all of their members. Although they knew that educating their members through social media was no easy task, they teamed with John Reyes and Matt Ahlmann, the official trainers on social media for the California Association of REALTORS, to deliver the information in a simplistic format.

The Technology Blog is updated on the third Friday of each month with tips and strategies ranging from utilizing YouTube videos to becoming the mobile agent with your iPad. The response has been overwhelmingly positive from the AREAA members, and this exact style of thinking will expand upon their memberships in the near future.

Visit the blog at: www.areaainlandempire.roundtablelive.org.

A s s oc i a t i o n So u t h e r n C a l i f o r n i a T r i - C o u n t y Ed u c a t e s Members on Short Sales and Community Outreach AREAA Southern California Tri-County held a successful educational event with Bank of America on November 2, 2011 at the Hilton Hotel in San Gabriel, California. The title of the event was “Bank of America Short Sale Process and Community Outreach Programs”. About 175 real estate professionals attended the event.

The speakers included June DeMott, Michael Hegna, Shirley Bat­ man and Angelina Ornelas of Bank of America.

Photos by Simon Chu

AREAA C e n t r a l V a l l e y N e w Y e a r ' s M i x e r AREAA Central Valley’s first mixer of 2012 was a huge success. The Wasabi Sushi Bar was buzzing with real estate agents/brokers, loan officers, escrow officers, and pest and home warranty professionals. The mixer was held in the Fig Garden, Fresno Area. The goal of this event was to introduce members to one another, build relationships, strengthen partnerships, and exchange ideas. Attendees learned about what AREAA Central Valley had in store for 2012, enjoyed complimentary appetizers and entertainment provided by the Fresno State University Chinese Lion Dance Club. This was a free event sponsored by the chapter's board of directors.

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Us To have your news, awards and accomplishments

considered for publication in future editions of a|r|e magazine, contact us at: a-r-e@areaa.org

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Around The A s s oc i a t i o n AREAA S i l i co n V a l l e y I n s t a l l a t i o n On January 25th, AREAA Silicon Valley installed its 2012 President, Nick Pham. As one of the founders of the chapter in 2010, Nick is prepared to continue his leadership role with the help of a team of dedicated directors. The event was held at Xanh Restaurant in the beautiful city of Mountain View. Attendees included: the Silicon Valley Association of REALTORS (SILVAR) President-Suzanne Yost, the Santa Clara County Association of REALTORS (SCCAOR) President-Barbara Lymberis, President Elect-Carl San Miguel and Past President-Karl Lee, and AREAA Founding Chair-John Wong. At the event, AREAA Silicon Valley also received sponsorship from a local bank-Citizens Equity First Credit Union (CEFCU).

Pham looks ahead to his year as the chapter's chief director: I am very excited to accept my new position as your AREAA Silicon Valley Chapter President for 2012. I look forward to further carrying out our mission in promoting sustainable homeownership opportunities in Asian American communities throughout. Being a California Association of REALTORS (CAR) Director, I hope to bring additional resources to our chapter to further enhance our strength to achieve our goal. With a full calendar of events and activities we are planning for this year, I hope to provide our real estate professionals with tools and knowledge to better serve the dynamic market we are in.

Visit AREAA Silicon Valley at www.areaasv.com, and follow the chapter on Facebook at www.facebook.com/areaasv for updates and a calendar of events.

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