a | r | e Spring 2010

HOUSING POLICY

ASIAN AMERICAN CO M M U NIT Y

WhyCanción MIKE HONDA Mixteca IS SINGING

UPHOLDING the STANDARDS of the FAIR HOUSING ACT

An interview with JOHN TRASVIÑA

THE OKAMOTO FAMILY OVERCOMING DISCRIMINATION to represent the ASIAN AMERICAN community in REAL ESTATE

home

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Knowledge.

Experience.

Integrity.

Look for the designated difference in residential real estate appraisal and consulting.

Uncertainty and doubt about market value. They’re the last things you want when selling or buying a home.

So, the first thing you should look for in your real estate appraiser is the Appraisal Institute SRA designation behind the name.

An SRA designation represents advanced knowledge. It stands for years of proven, real-life real estate valuation experience. And, it always means a commitment to strict professional ethics and standards.

SRA. Look for the designated difference behind the name.

To learn more about finding an Appraisal Institute designated appraiser, visit: www.appraisalinstitute.org/findappraiser

Spring 2010 Volume 2, Issue 1 On the Cover: Congressman Mike Honda (D-California) Photo by Rodney Choice

Contents 6

2009 AREAA/NAHREP Real Estate & Marketing Conference Recap A look back on AREAA’s most successful conference to date

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John Trasviña, Assistant Secretary for Fair Housing and Equal Opportunity

Upholding the standards of the Fair Housing Act

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Lender Provides Tips to Help Real Estate Professionals Navigate the Short Sale Process

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If Congress Sneezes, Y’all Get Pneumonia

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AREAA Chapter Spotlight

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My Family’s Story

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AREAA Dragon Profile: Max Kim

By Glenda Gabriel, Bank of America

An exclusive interview with Congressman Mike Honda

By Kim Truehart

The experiences, perseverance, and contributions of three generations to the real estate industry

By Kara Okamoto

How to Have Impact Politically

To further your causes, you must learn to lobby effectively

By John M. Lee

Greater Los Angeles celebrates one year, looks to a bright future

By Lina Chu

Rising to success out of the darkest period of his life

By Rebecca Cho

Letter from the Editor

Advertisers

Overcoming Language Barriers

Appraisal Institute www.appraisalinstitute.org/findappraiser

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Raising Your Commercial IQ

AREAA Dragons www.AREAADragons.org

Inside Back Cover

AREAA/NAHREP Real Estate & Marketing Conference http://areaa.org

Back Cover

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Credit Scores: What You

Bank of America www.bankofamerica.com/homeloans

Inside Front Cover

MongoFAX http://areaa.org/national/areaamongofax.pdf

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Prudential www.Prudentialrealestate.com

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By Gary Sanders

Introduction to the Valuation of Income Properties

By Neil Osborne Can Do About Them

By Larry Fried

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Green Cards Through Investment

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Recent Events

A Solution for Asian Buyers

By H. Ronald Klasko New chapters in Arizona and Sacramento, plus the OC and Chicago chapters give back

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From the Editor As we closed out 2009, there were some positive signs related to the real estate market with a handful of markets showing signs of home price stability and increased sales activity. However, for most of us, we enter 2010 with the same level of uncertainty about the housing recovery in our gut and questions about how the government initiatives will reshape the real estate market.

Surely, our future as real estate practitioners has to look different than the past, one would surmise. After all, the government and the tax payers had to pump a trillion dollars into the housing and banking system over the past few years to avoid a massive collapse in the financial and housing sectors. The government had introduced an array of initiatives aimed at creating a soft landing for the real estate market and giving homeowners an opportunity to modify their existing mortgages to stave off foreclosures.

The housing sector is getting more reliant on government’s financial backing and we have seen increased regulatory oversight from Washington, DC. Yet, as we follow some of the legislative debates to create a wholesale change to the regulatory regime of the banking and financial services sector, we see gridlock and the return of politics as usual. It is unclear if there will be any material regulatory reform any time soon or a change in how we deal with the systemic risk of the overall financial system -- even after one of the greatest market failures in our nation’s history, which has impacted the lives of millions of Americans. Someone once told me that inertia generally wins in politics. That is because there are so many entrenched interests who prosper when things stay the same. That is why even the most common sense changes are so difficult to make.

In reflecting on the enormous change that took place in the 60’s, one has to be taken aback about the pace and magnitude of social and policy changes in that decade. The range of policy changes -- the Civil Rights Act to the Fair Housing Act to the Immigration bill -- fundamentally changed the future course for minority and immigrant communities in this country for the better. As I read the story about the Okamoto family (written by a third generation Okamoto real estate professional) and their poignant story to create a seat at the “real estate” table in America, I was struck by the generational impact racism and biases have on a family. I thought the story was also a testament to the power of individual determination and the opportunity that is afforded to all of us when policy makers and institutions do the right thing.

Like the dramatic change that took place in the 60’s and the Okamoto family’s effort to make an impact in the real estate market, lasting change starts with an act of courage – not from the government but from individuals. Certainly, the change we will witness in this decade will not be quite as dramatic as the

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60’s; however, we need to focus on the change that is needed for our economy and the real estate business in which we participate. A generation of Americans are feeling disenfranchised by the housing finance system today. They have lost their piece of the American Dream.

They have lost a generation of wealth.

Spring 2010

This March, AREAA, working with its partners NAHREP and NAREB, will begin to advocate for change that will put this country on the path to sustainable homeownership, particularly for minority communities. We encourage you to learn about our collective recommendations and share your first-hand experiences with policy makers as real estate professionals and as trusted advisors to homeowners.

There is nothing more powerful than real stories from real constituents to shape the view of these Congressional leaders. All of us need to help shape the change by participating actively in the policy making process. Your business depends on it. And our community will be better for it when you do.

Creative Director

Volume 2, Issue 1

Editor-in-Chief Jim J. Park

Praveen K. Sharma

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. Š 2010 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: Jim Park Editor-in-Chief a | r | e Magazine

Praveen Sharma psharma@areaa.org or by phone at 760-918-9162

Office: Asian Real Estate Association of America 5963 La Place Court, Suite 312 Carlsbad, California 92008 760-918-9162 Phone 760-918-6924 Fax

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2009 AREAA/NAHREP REAL ESTATE & MARKETING CONFERENCE

LAS VEGAS

PHOTOS BY RODNEY CHOICE / CHOICE PHOTOGRAPHY The 2009 AREAA/NAHREP Real Estate and Marketing Conference, held in late October at the Palazzo Resort in Las Vegas, was the year’s premier event for real estate professionals serving America’s Asian and Hispanic communities.

The event was highlighted by the presentation of the AREAA 2009 Person of the Year award to Representative Mike Honda (D-CA).

Speakers included top economists and leaders from across the real estate industry including: FHA Commissioner, David Stevens; Assistant Secretary of Fair Housing and Equal Opportunity, John Trasviña; Zillow.com President and Co-Founder, Lloyd Frink; and NAR Chief Economist Lawrence Yun. Attendees were given the opportunity to enhance their knowledge of foreclosure prevention options, REO, short sales, and opportunities in commercial real estate, as well as meet asset managers through a dedicated networking session.

The event was capped by the installation of John Fukuda as AREAA National Chair. As AREAA’s lead director, Fukuda has expressed a commitment to chapter development, education and using technology to reach and interact with AREAA members nationwide.

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1. Cindy Lui presents Congressman Mike Honda with the AREAA Person of the Year Award, sponsored by Wells Fargo. 2. NAREB President, Vincent Wimbish 3. Zillow.com President & Co-Founder Lloyd Frink 4. FHA Commissioner, David Stevens 5. Jim Park and Gary Acosta recognize Eric Tan (far left) and Juan Martinez (far right) as Conference Co-Chairs 6. Bernice Wong, Kathy Tsao and Michelle Chang 7. NAR President, Vicki Cox Golder 8. The Chase team in the exhibit hall 9. Members of CREAA from San Francisco 10. Allen Chiang makes a memorable speech to wrap up his term as AREAA Chair 11. Lawrence Yun 12. Allen Okamoto and John Fukuda

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L E N DE R PROVI DE S T I P S TO HE LP R E AL E STATE PROF E S SIONALS NAVIG AT E THE SHORT S ALE PRO C E S S

BY GLENDA GABRIEL

NEIGHBORHOOD LENDING EXECUTIVE BANK OF AMERICA

S

everal years ago, the term “short sale” was uncommon in the real estate vernacular of agents and their customers. In the past two years, this has changed. Multiple factors, including rising unemployment rates (the Nov. 2009 unemployment rate for Asian Americans is at 7.3%, up from 4.8% a year ago*) and declining home values, have required lenders and real estate agents to come up to speed on short sales if their customers must sell their home as a last resort to foreclosure.

Short sale offers to Bank of America doubled from 2007 to 2008 – and doubled again in 2009. While short sales are much more complex and time-consuming than routine real estate transactions, they are also an important tool in meeting our commitment to finding solutions for customers.

As short sale volume continues to increase, we recognize there is an opportunity to improve our process for our customers and business partners. With that in mind we estab-

SHORT SALES

lished a dedicated team of short sale professionals to help navigate the process, updated associate training, enhanced technology and established a value review at the time of the initial contact by the borrower or agent.

SETTING EXPECTATIONS

As part of our commitment to creating successful homeowners, our first priority is to keep owners in their homes through loan modifications or other home retention remedies. If all other modification efforts fail, and a short sale is the only option to avoid foreclosure, we will work with you and your clients to set reasonable expectations about the process. Typically, the review process does not begin until a purchase offer is received. In the past, it has taken from two to three months – sometimes more on complicated transactions – to reach a decision.

Many of the issues we experience are with incomplete documentation, which delays the process. Acceptable and complete documentation of the borrower’s financial hardship and financial information must be provided by the seller or agent and reviewed by the servicer; and everyone has a role in completing these tasks in a timely manner. In most cases, the mortgage

investor (typically a third party to the mortgage servicer) must approve each offer; and further negotiation may be necessary to gain that approval. Additional negotiation and third-party approvals may be necessary when there is mortgage insurance on the loan or a second lien on the property. All lien holders on the property must approve the transaction. As a professional advisor, you can greatly help the borrower become aware of these points.

EQUATOR – A STEP IN THE RIGHT DIRECTION

Bank of America has taken big steps to reduce the paper-intensive process and improve communication. The days of faxing documents are over.

Through Equator, a secure, pass-word protected Internet portal, real estate agents and homeowners can track the status of short sales, exchange documents and communicate with us, around-the-clock.

Your client has the option to enroll themselves and you as their real estate agent in Equator, at no cost.

All documents are emailed in PDF. In real-time you, your customer and the bank can see all documents, important dates and deadlines, streamlining the process and improving communication.

THREE KEY STEPS Ask clients who want to stay in their home to call our homeownership retention team: 800.669.6650

If keeping their home is not the solution, clients should call our dedicated short sale staff at 866.880.1232

Encourage your client to enroll in Equator the online short sale tracking system www.equator.com

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SHORT SALES

GETTING IT RIGHT THE FIRST TIME AND AVOIDING DELAYS There are many things you can do to help minimize this lengthy process time: Advise your client to contact their servicer as early as possible Ensure all customer financials are in PDF format Help your client complete all documentation accurately, and as early as possible Make sure the purchase offer is a legitimate offer and fully executed The purchase offer should also be the best possible at fair market value Provide the listing information and comparables to support price And here are potential causes of delay for you and your client to be aware of: Change of buyer or agent at anytime in the process may cause it to revert to an earlier step; notify your client’s servicer immediately if there is any change Investor/mortgage insurance approval is needed if the servicer is not fully delegated to approve the short sale Release on a second lien must be received prior to issuing an approval letter If the customer has filed bankruptcy, the trustee must provide a court document that approves the sale of the short sale

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We are committed to continual evaluation and improvement of our processes and appreciate the support of our real estate partners in our efforts to ease the short sale process. We hope these tips will help you and your client have a better short sale experience, from start to finish. * US Department of Labor (http://www.bls.gov/news.release/empsit.t02.htm)

Glenda Gabriel is the Neighborhood Lending executive for Bank of America Home Loans.

She is responsible for identifying opportunities to drive homeownership among lowto-moderate income borrowers, minorities, immigrants and underserved communities across the nation.

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AREAA’s 2009 Person of the year, Mike Honda, has represented the 15th Congressional District of California in the U.S. House of Representatives since 2001. Congressman Honda also serves as House Democratic Senior Whip, Vice Chair of the Democratic National Committee and Chair of the Congressional Asian Pacific American Caucus. He is one of the leading Asian American elected officials in the Nation.

Honda spent his early childhood with his family in an internment camp in Colorado during World War II. As a young adult he served our country by

The State of the Asian American Community a | r | e : Can you give us your personal perspective on what is happening in Congress now and what issues the Asian American community should be focused on?

Congressman Mike Honda: We need a stronger and louder voice from our community of small business owners. Many family-owned businesses are struggling. Lack of access to credit has forced many small business owners to lay off employees and in some cases their own family. Health care reform needs to

interrupting his college studies to answer President John F. Kennedy's call for volunteer service and serving in the Peace Corps for two years in El Salvador. Today he represents those who have been disenfranchised in Congress, and has the voice of someone who knows what it was like to have no voice in civic and elected processes.

Congressman Honda shares with us the issues facing Asian Americans and why everyone should be concerned with national policy. From health care reform to his favorite karaoke song!

pass in order to help our community and the immigrant community which is struggling to get established. Health, jobs, and small business, these are basic things our families need to be homeowners.

Naysayers say a lot of Asian Americans are small business owners and they will be hurt by this heath care reform. What do you say?

They will not be hurt, not by the bill passed in the House. Most of America’s businesses will be exempt from the shared responsibility requirement to provide insurance. Businesses with payrolls of

$500,000 or below, for example, are completely exempt. Additionally, small businesses with fewer than 25 employees will be eligible to enter the health insurance exchange, where insurers won't be able to discriminate based on your health history or risk and small businesses will have the bargaining power enjoyed by even the largest employers.

There are a few things that cause people to be uninsured. They have preexisting conditions, or they had insurance and they were cut off because someone got sick. In the House bill, those things become prohibited, they cannot happen.

This bill will also control rising costs of insurance premiums and include anti-trust regulation for insurance companies.

In addition to health care, a lot of our members are struggling small business owners, what else is happening in Congress that they should be aware of to support small business?

Additional bills to support small businesses are in the works. President Obama and Congress are very committed to job creation, particularly when it comes to small businesses. Obama has stated that he is committed to increasing accessibility to loans, eliminating capital gains tax, and offering additional tax credits to struggling small business owners. Congress has not given up the responsibility of helping small businesses either. We are taking initiative to do more for small business owners including incentivizing financial institutions to make loans to business owners. Representative Al Green, Chairman of CAPAC’s Housing Task Force, is taking the lead on looking into provisions for housing and attending to Asian American issues. While Asian Americans have the highest home-

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Jim Park and Cindy Lui present Congressman Honda with the 2009 AREAA Person of the Year award in Las Vegas (Photo by Rodney Choice) ownership among communities of color, for example, the drop in homeownership was the highest among all minority groups last year. This fact is not being recognized by lenders and policy makers. There is little help or information getting to people who are losing houses or who are in financial trouble.

Lenders have begun to curtail the use of home equity lines. Traditionally Asian Americans rely on home equity lines more than any other group to fund their business. Therefore, people’s ability to sustain their business is damaged. What can we do to address this?

Over 60% of Asian Americans are foreign born and some have language limitations. Do you have a sense that linguistic issues are part of the problem?

Three ways to address the issue: Congresspersons Al Green, Maxine Waters, and Barney Frank are working to acquire information on this because they know it is happening, not just with small businesses but even large developments. In response, we need our community to come out and speak on these issues.

Absolutely, it’s not just an issue of being communicated with correctly – it’s an issue of being communicated with at all.

AREAA has the answer to this need for communication, you have the language capabilities. A lot of people who became homeowners are facing foreclosure because they didn’t have the wherewithal to stay in it and sustain themselves. They need to be given more information and growth so they can be agile in this changing economy. I view real estate agents as consumer advocates. Counseling is needed to help people take advantage of new laws and stay in their homes. The answer will come not from the lending institutions, but from AREAA members.

Secondly, the White House Initiative, reinstated by Obama, is dedicated to serving the Asian/Pacific Islander population. There will be 20 commissioners advising the initiative. These commissioners are community leaders who have expertise with AAPI issues.

Their job is to relay issues they are seeing within the community to the White House and work to address them.

AREAA should ensure that Asian Americans and Pacific Islander issues are addressed by weighing in with the Commission.

Thirdly, like you are already doing, talk directly with Members of Congress who serve on the Congressional Asian Pacific American Caucus. When AREAA does something, it gets noticed and we pay attention to that. Provide us with your views and we will work on them together.

How and why did you get involved in politics? Why should AREAA members get involved in national policy issues, and why be a part of an association like AREAA? Asian Americans typically do not get involved. Why should they concern themselves with national policy and economic issues?

If Congress sneezes, y’all get pneumonia. It all starts at the federal level. If we go to war, our communities go as soldiers. Our economy, reputation, and communities of color suffer. After the attack on Pearl Harbor Dec 7th 1941, politicians and media didn’t say all US Citizens of Japanese ancestry must be taken to camp. Instead, President Roosevelt authorized the exclusion of all those with foreign enemy ancestry, taking away our constitutional rights.

Later, the government took some of these same people out of the camps to fight in the war.

I got involved in politics to make sure Congress has the perspectives of underrepresented communities, and that we have a clear understanding of our oath and responsibility. When government goes awry, it is our responsibility to reinforce, teach, and set an example for our country. If we know who we are, where we came from, our contributions and our own worth, our policy will be more accurate and focused on our community. If we only allow certain folks to work on immigration, while not allowing Asian Americans to be represented in the process, there will be 2.5 million people unrepresented. Hmong, Laotians, and Cambodians are communities that particularly suffer from lack of representation. They are typically stereotyped as groups that don’t need help. Your association can bring that discussion from grassroots to grass tops – to the national leaders.

I appreciate being thought of as a representative of this country’s Asian American community. We should

Congressman Honda, a longtime supporter of AREAA, was a featured guest speaker at the association’s 1st annual convention and gala in Long Beach, California (2006)

consider ourselves a global society and help bridge our communities.

Let’s end this on a fun note, we know you enjoy karaoke, what is your favorite song to sing?

A Mexican song, “Canción Mixteca.”

Mixteca is an old area of Mexico from which a lot of immigrants come. The song represents all immigrants. We feel nostalgic about the country we come from and sometimes we feel depressed.

But there is hope in America. The other song is “My Way” by Frank Sinatra.

This reminds me I did not get here my way, I got here on the shoulders of others. Communities represent shoulders to stand on.

This is a story of the experiences, the perseverance, and the contributions of three generations of the Okamoto Family who have been, and continue to be, involved in the real estate industry in America.

To truly appreciate our story, it is also necessary to understand the history of the Japanese in America as well as to believe in the dream of fair housing, equal opportunity and true diversity. Today, Americans of all ethnicities can purchase a home, acquire property, and build wealth. But this wasn't always the case.

Historically, discrimination in real estate practices was built into the system in the form of restrictive covenants and laws. These laws and covenants have since been declared illegal. Also, the National Association of REALTORS (NAR) Code of Ethics prohibits discrimination due to race or ethnicity.

Despite these advancements, subtle forms of racism still exist today.

The California Alien Land Law of 1913, which spread to other Western States, affected the rights of Asian immigrants to own real property, before it was finally repealed in 1956. Also, as late as the 1950s,

restrictive covenants were contained in real estate deeds, which prevented the sale of the property to Asians, Jews, and African Americans. It was in this climate of racism that my grandfather, Takeo Okamoto (1908 - 2003), was born and raised in San Francisco, California. Takeo was able to realize his dream of graduating from the University of California, Berkeley in 1933, at a time when most Asians did not have the opportunity for higher education.

The 1930s in America was a difficult time for all Asians, and college graduates were not necessarily employed in the area of

their expertise. But life for the Japanese on the West Coast became an unimaginable nightmare with America's entrance into World War II. No act of espionage or sabotage by a Japanese person was ever recorded, but despite this fact, in 1942 President Franklin D. Roosevelt signed Executive Order 9066, forcing the Japanese American evacuation from the West Coast. The Japanese could only take what they could carry, so the majority of their possessions were sold for pennies on the dollar and most lost their homes and properties as well. Out of the 120,000 Japanese that were sent to the camps, approximately 100,000 were American citizens. These citizens, with no history or record of any violations against America, were forced into Relocation Prison Camps, which were located in ten deserted areas across the United States. It was declared by author James Michener to be "the single worst wholesale violation of civil rights of Americans in our history."

Takeo Okamoto, his wife Kathleen Okamoto and their two small children were transported along with other Japanese in the San Francisco area, to the Topaz Relocation

Takeo Okamoto Camp in northern Utah. However, because of his bilingual skills, the US Navy recruited Takeo to teach at the University of Colorado's Naval Language School in Boulder, Colorado for the duration of the war. It was in Boulder that my father, Allen Okamoto, was born in 1943. After returning to the West Coast at the end of World War II, Takeo obtained his

As a young child, he accompanied his mother to view a listing. But as his mother walked up the front steps, the front curtain parted and the owner, seeing his mother approaching, refused to answer the door. These types of silent insults were something that Asians faced quite frequently.

license to practice real estate in California.

Thus the Okamoto Family's involvement in the real estate profession begins.

Soon after becoming licensed, Takeo Okamoto applied for membership to the San Francisco Board of REALTORS (SFAR). This was in the year 1947 and he received a letter of denial with no reason given. Finally some years later he was accepted, but only as an Associate member. Forty years later it was determined that his application was denied solely due to his Japanese heritage. Despite his early disappointments, he went on to have a very successful career in real estate in the San Francisco Bay Area and is a true pioneer in the industry. One of the great moments in his life was in 1992 when he was named Honorary Member for Life by the SFAR, for his distinguished service to the real estate profession.

Kathleen Okamoto, my grandmother, obtained her real estate license in the 1950s, becoming one of the first Asian American women of her time to earn one. Although born in Alameda, California, fluent in English, and at that time had yet to set foot outside of American soil, she faced discrimination. Many real estate offices and sellers refused to work with her based solely on her ethnicity. My father, Allen Okamoto, recalls an incident that made a lasting impression in his mind. As a young child, he accompanied his mother to view a listing. But as his mother walked up the front steps, the front curtain parted and the owner, seeing his mother approaching, refused to answer the door. These types of silent insults were something that Asians faced quite frequently.

However this early memory did not deter Allen from following in his parents’ footsteps.

He obtained his real estate brokers license soon after graduating from San Francisco State University, in 1965.

OKAMOTO FAMILY

During the subsequent years, Allen married, started a family, and along with his busy real estate practice, became involved with SFAR and the California Association of REALTORS (CAR). In 1990, Allen was elected as the first Asian American president in the 85 year history of the Association.

While giving his acceptance speech at the installation luncheon before 500 REALTORS, he told the story about his father not being accepted as a member of SFAR some 40 years prior. As Allen spoke, the room fell silent.

One could hear a pin drop as Allen related this time in history. It was one of the most memorable moments of Allen's life, as he looked out at the audience and saw his father's proud expression.

Allen noticed there were no Asians on the Board of Directors or Asian chairs of any committees in SFAR. This was despite the fact that many Asians were working in San Francisco and the Bay Area in the real estate field. He made it his goal as President to involve more Asians in the business of

organized real estate. One of his accomplishments was the formation of the Asian Council at SFAR in order to encourage Asians to join the Association and to cultivate future leadership amongst the Asian REALTORS within the organization. Due to his efforts, the number of Asians serving on the board increased over the next several years, with many Asians serving as a chairs, committee members and officers.

Although Allen received the 1991 REALTOR of the Year award, one of the highest honors that SFAR can bestow upon one of its members, working in real estate was not always easy for him.

In the beginning of his career, he was faced with blatant as well as insidious discrimination. In the late 1960s, when he was still a young man and new to the industry, some REALTORS would just refuse to work with him. They would

In the beginning of his career, he was faced with blatant as well as insidious discrimination. In the late 1960s, when he was still a young man and new to the industry, some REALTORS would just refuse to work with him. They would say to his face, “Why do you think I would cooperate with you?”

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say to his face, “Why do you think I would cooperate with you?” However, in spite of these setbacks, Allen continued to persevere and his office grew into one of the largest Japanese American real estate offices in the San Francisco Bay Area.

The story of discrimination is not unique to the Asian American experience and America's education about and acceptance of different cultures and ethnicities are works in progress. In the mid 1990s, Allen participated in a work group formed by NAR (L to R) Kara, Scott, Patricia and Allen Okamoto at the 3rd Annual Asian American Real Estate Convention and Gala, where Allen was honored as AREAA’s 2008 Person of the Year (Photo: David Ng)

OKAMOTO FAMILY

to establish a policy regarding fair housing and equal opportunity. Allen believed that one of his most important contributions to the work group was to educate the broader real estate community about the emerging Asian and Hispanic populations on the West Coast as well as the traditionally underserved African American community. As a result of this work group, the “At Home with Diversity” class and designation was established. It was a means to educate REALTORS about the various minority and ethnic groups. Another result was that NAR changed its focus to include cultural diversity as an important component and therefore changed the name of the Fair Housing Committee to the Equal Opportunity Cultural Diversity Committee. This has permitted increased attention and resources targeted to developing opportunities in the diverse communities throughout the country.

The African Americans had formed the National Association of Real Estate Brokers (NAREB) and the Hispanics had just formed the National Association of Hispanic Real Estate Professionals (NAHREP), but the Asian REALTORS had yet to form a national organization. Then in 2002, Allen, and a group of visionary real estate practitioners met in Houston, Texas to discuss the formation of a national Asian real estate organization. Although this group did not yet have members, nor a name, and most importantly no funding, they did have a key asset which was a group of dedicated hard working members who could make this dream a reality.

The association that resulted was named the Asian Real Estate Association of America (AREAA).

Although the climate has changed and attitudes have improved, Asian REALTORS still don’t have a level playing field. It is my hope that by working together we can attain our goal of fair housing, equal opportunity and true diversity.

AREAA is currently in its eighth year and boasts a membership of over 12,000, with 13 chapters and five Memorandum of Understanding (MOU) agreements with various real estate associations. It is expected that the membership of AREAA will double in the next two years. One MOU has even been signed with the Osaka Real Estate Association in Japan. The formation of a national Asian organization gives the Asian real estate practitioner a voice with national lenders, Fannie Mae and Freddie Mac, as well as with our Federal Legislators. This is political muscle that Asian REALTORS had previously been denied. AREAA is now a true national force with a seat at the table.

In 2009, I, Kara Okamoto, joined the family business, T. Okamoto & Co., as the third generation in my family to enter the real estate profession. My brother, Scott Takeo

Okamoto, is an attorney with Sedgwick, Detert, Moran and Arnold LLP in San Francisco, specializing in real property rights.

I feel fortunate to have my father's experiences to guide me and my brother's legal expertise to rely on. As a member of SFAR, the Chinese Real Estate Association of America (CREAA), and AREAA, I hope to continue the work and involvement of my grandfather and father in the industry.

I am currently assisting with the formation of an Asian young professional’s network, which will be under the umbrella of AREAA. In today's climate, the real estate industry and technology are quickly changing. It is therefore important that today's young REALTORS understand the technology that is available to them as well as remain knowledgeable about the various methods of doing business.

This organization will provide a network and tool for younger agents who are entering the business, as well as a means for more experienced REALTORS to stay ahead in the industry.

I can empathize with the difficulties that my grandparents faced during their lives and appreciate the contributions that my father has made and continues to make in the real estate profession. Although the climate has changed and attitudes have improved, Asian REALTORS still don’t have a level playing field. It is my hope that by working together we can attain our goal of fair housing, equal opportunity and true diversity. In the words of Martin Luther King, Jr., "The time is always right to do what is right."

21

ASSISTANT SECRETARY for FAIR HOUSING and EQUAL OPPORTUNITY

JOHN TRASVIÑA

hen Congress passed the Fair

A lifelong civil rights advocate, the San Francisco native

Housing Act in April of 1968, its

previously served as president and general counsel of the

primary objective was to protect

Mexican American Legal Defense and Educational Fund

against discrimination in the

(MALDEF). He also has been recognized for his dedica-

housing and related financial

tion to the Asian community as a recipient of the Confer-

services industries.

ence on Asian Pacific American Leadership's Distinguished Service Award.

41 years later, President Obama tapped John Trasviña to be Assistant Secretary for Fair Housing and Equal Opportu-

Assistant Secretary Trasviña took the time to discuss with

nity (FHEO), the office that enforces the Fair Housing Act

Asian Real Estate the importance of fair housing and what

and works to ensure that all Americans have equal access to

real estate professionals can do to help uphold the

the housing of their choice.

standards of the Fair Housing Act.

FAIR HOUSING FOCUS

a | r | e : The Fair Housing sticker is well known and common to most real estate offices, what does it represent?

Assistant Secretary John Trasviña: The sticker is a visible commitment to the Fair Housing Act; that people should be able to choose their housing without facing discrimination on the basis of race, color, religion, sex, national origin, disability or familial status.

Why is it important that the Asian American community is aware of fair housing issues?

What do they do to report a violation of the Fair Housing Act? Consumers can file a fair housing complaint by calling 1-800-669-9777 or visiting HUD’s website: www.HUD.gov/fairhousing. It is important that Asian Americans, in

Assistant Secretary Trasviña speaks at the 2009 AREAA/NAHREP Real Estate and Marketing Conference, October 26th in Las Vegas

particular, are aware of these options to file complaints because they don’t do it enough, relative to other groups. Clearly, housing discrimination has not gone away, as is indicated by the more than 10,000 complaints that have been filed with HUD and its state and local housing partners in each of the last four years.

LANGUAGES FEATURED ON WWW.HUD.GOV

And we believe that there are many other

Amharic

Creole

Portuguese

instances that go unreported. Discrimi-

Arabic

English

Russian

Armenian

Farsi

Spanish

systemic, as in the case of lending proce-

Cambodian

French

Tagalog

dures. So whether we’re talking about

Chinese

Korean

Vietnamese

nation can be perpetrated by agents and landlords and at other times it is more

FAIR HOUSING FOCUS

www.makinghomeaffordable.gov

immigrants or individuals who have been in America a

HUD will make an effort to go out to the communities and

long time, it is important that HUD and its partners reach

participate in these events.

and educate the core of the Asian American population about their fair housing rights.

AREAA members can also partner with community

Are there resources available at HUD designed specifically to support the Asian community?

organizations like Chinese for Affirmative Action (CAA) and Korean Churches for Community Development (KCCD) to promote fair housing awareness. In 2010 we’d like to see more efforts than ever before to reach out to

Yes, we now have fair housing documents in 15 different

Asian American communities.

languages available on www.HUD.gov/fairhousing. The Asian languages include Korean, Cambodian, Chinese, Tagalog, and Vietnamese. HUD also has an annual

What is FHEO’s view on the current foreclosure crisis?

program that awards grants to organizations that educate Recent

The current housing market presents a special challenge,

Asian-focused recipients of HUD housing grants include

especially in Florida, California and Nevada. For instance,

Asian Americans for Equality (AAFE); Asian, Inc.; and

Clark County, Nevada is the fastest growing Asian Ameri-

Legal Aid Society of Hawaii.

can county in the U.S. and is facing one of the highest

communities and enforce fair housing laws.

foreclosure rates. Foreclosure impacts not only the family,

What role do AREAA members play in furthering FHEO’s mission?

but neighbors and the community as well.

More attention has been placed on moving HUD’s mortgage

24

AREAA members are trusted in their communities and

modification program beyond a trial modification to a perma-

they speak the language, so they can play a pivotal role in

nent basis. The website www.makinghomeaffordable.gov is

furthering fair housing by treating everyone the same and

a valuable resource for homeowners to understand these

letting HUD know when they see inequalities. I invite

programs. In addition, the Obama Administration is work-

AREAA members to set up community workshops so

ing intensely on job creation while keeping in mind that

people understand all the issues going on in housing today.

there are significant challenges for minority communities,

FAIR HOUSING FOCUS LAS VEGAS CHINATOWN

To file a fair housing complaint, call 1-800-669-9777 or visit:

www.HUD.gov/fairhousing

such as discrimination associated with refinancing trans-

chapters. This is an important time for fair housing in the

actions.

Asian American community and we can be partners in an

How can we help Asian Americans to better understand foreclosure prevention strategies and their homeownership rights?

important effort. Housing determines so much of the future for education, employment, health, and other life factors.

Our progress will affect housing and families for

years to come.

In-language newspapers, and television, websites, press releases, industry members, and trusted institutions in the community are all ways to make Asian communities aware that we can help.

In addition, FHEO has made educating students about fair housing a priority. Often in immigrant families, students who are the first in their family to graduate from college are called upon to understand bureaucracy and policy. As we reach out to students, they can take the message back to others in the community that HUD serves them and helps them.

Finally, I’d like to stress that HUD and FHEO are committed to working with AREAA members and visiting

25

HOW TO HAVE IMPACT POLITICALLY

BY JOHN M LEE

we tend to shy away from political matters because in our old countries, politics are considered corrupt and dirty. As I was growing up, my parents always made snipe comments about politicians regarding how they are constantly after your money and talking out of both sides of their mouths! No wonder most Asians do not aspire to star in politics!

AS ASIANS,

BUILD A COALITION

However, in order to further your causes, or in some cases to prevent negative consequences, everyone must learn how to have impact politically in your local area. The following are some pointers on how to lobby effectively and get your messages across.

When the people are on board, identify their strengths and what they can do to promote the message. Develop a strategy to get your message out to more groups and/or politicians. If there are individuals of influence in the community that agree with your position, go ask them for their endorsement and if appropriate, to be your spokespersons.

KNOW THE SUBJECT

Once the message is crystal clear, you need to find people and groups that are on your side and build a coalition with them.

Political battles cannot be won unless there are large numbers of people on the same side of the issue; thus the message needs to resonate with the public.

Research as much as possible on the issue, become the expert in that area so that any anticipated and unanticipated questions will be clear in your mind. Bounce the ideas around between your colleagues, debate amongst yourselves, be devil’s advocates, think of every possible angle that the opposition can come at you with, and develop answers and responses to those positions.

Develop talking points so that everyone is giving the same message to the public and the media. Consistent reinforcement with the same story is a powerful tool in your message. Find someone who is impacted by the type of legislation that is proposed and have him or her tell the story. This puts a human face to the issue and connects others to a real live individual.

If the issue will go before voters, perform polling to get data, and perhaps conduct a focus group to check on the effectiveness of the message. During the focus group sessions, you might discover items and reactions that you did not anticipate and now can incorporate into your ads and messages.

Newspapers, television, radio, and the Internet can all be useful tools to deliver messages to your audience. Depending on the budget, ads in print media are powerful but can be very expensive. Press releases work, but you are then at the mercy of an editorial board. It helps to know the local reporters and develop relationships with them in advance.

WORK WITH THE MEDIA

The Internet works and is relatively inexpensive. Hosting a web site, posting on Facebook, and utilizing Twitter are some of the tools that can be used effectively to reach people. Our President Obama was a master and pioneer in mastering these tools and as a result, won the election easily.

27

POLITICAL IMPACT

ANTICIPATE OPPOSITION

With any political campaign, there will be opposition. It is much better to expect it, know that it is coming, than to be surprised by it. This can come in the form of polite debate or more often than not, in dirty politics full of insinuation and half true remarks. Please do not take these personally.

Analyze the response and determine if it is something that needs addressing. Is the accusation important enough to warrant defending against? Sometimes it might be better to ignore it and take the high road because people will see through the intent of the comments.

UNDERSTAND MOTIVATIONS

In politics, many times you must look underneath the surface to understand why people are taking the positions that they take.

Sometimes it is for monetary reasons, other times to please a certain sector of the public. People also take positions for altruistic purposes, or because of unique personal experiences.

Understanding the driving force behind any legislation will help in delivering messages of opposition. Creating steps in mitigating the impact of the opposition might help in softening the blow. If you can comprehend the motivation and reasons behind the proposal, perhaps a compromise can be reached.

ASK FOR THE ORDER

In every message, ask the targeted audience to do something. It can be as simple as go to this website, call this number, text a comment, write a letter, or email your Mayor and City Council.

The point is getting someone to actually do something to further the cause so that it is measurable.

Asking people to do something also provides feedback on whether your message is getting through or not. If the audience

28

responds, then you know that they have heard your message and agree with it. If not, it is not compelling enough and perhaps you need to change course.

EVALUATE CONSTANTLY

Always, always be evaluating the results. Monitor the public’s sentiment on what you are doing. Check to see if the local newspapers and other media are noticing your stories and press releases. If they are, it is a good gauge that there is interest on your topic. Talk to as many people and groups as you can to get a sense of their opinions on the issue.

Are you winning the battle? That is a difficult question and many times unanswerable until the very end after the votes are counted.

BATTLE TO THE END

If your issue is worth fighting for, never give up! Just remember that the Civil Rights movement was not won with one battle!

Each battle, whether a victory or defeat, will create more awareness of the issue, and eventually the truth will win out in the end!

John M. Lee has been serving San Francisco as a REALTOR since 1987 and is currently the President of the San Francisco Association of REALTORS. He consistently places in the top 1% of REALTORS nationwide each year and has served as a director for a number of non-profit organizations, including the Chinese Real Estate Association of America and AREAA.

In the last issue of a | r | e , we presented a summary of the key laws and regulations supporting the rights of homebuyers who do not speak fluent English. In this issue, the legal news is updated along with examples of how companies and non-profit organizations in the real estate industry are taking impressive strides to embrace the segment of the population known as Limited English Proficient (“LEP”).

OVERCOMING LANGUAGE BARRIERS An Update on Legislation Impacting Multicultural Real Estate Marketing

By Gary Sanders The Language Factor

Beyond the real estate field, other current examples of how LEP citizens rights are being addressed – In New York state, by March 31, all retail pharmacies must offer multi-language support in written and oral formats to help customers understand their prescriptions Across the country in federal courts for the year ending September 30, 2009, interpreters were used at 313,000 events, up over 10% from the previous year.

IN THE REAL ESTATE INDUSTRY According to Adria Cheng, Real Estate attorney/partner at Manatt, Phelps and Phillips LLP in San Francisco, “In California, the relevant laws were tested in court and affirmed and the federal regulations were only slightly changed. Cheng cited the following examples – The revised RESPA guidelines became effective on January 1, but HUD announced a 120-day reprieve on the enforcement of the regulations.

Within the long list of changes is HUD’s acknowledgement that documents such as the HUD-1 Settlement Statement and the Good Faith Estimate can be translated.

In California, § 1632 of the Civil Code covering Truth-in-Lending requires companies entering into credit agreements to deliver to consumers a translated copy of a contract if a lender “negotiates” the terms of the loan in Spanish, Chinese, Tagalog, Vietnamese or Korean. The law specifically excluded loans secured by real property from this requirement unless the loans were

LANGUAGE LAW UPDATE

made or arranged by real estate brokers. Banks, credit unions or residential mortgage lenders were exempted from this law. This law was affirmed in a 1981 case involving a car loan (Reyes v. Superior Court). While this law was untested in state court since the Reyes case, it was extended to encompass mortgage loans negotiated by mortgage brokers in 2006 in Ruiz v.

Decision One Mortgage Co. in the 9th Circuit of the Northern California federal court. In the past few months, the Ruiz case has been affirmed several times, including the 7th circuit court.

In December 2009, Congress introduced the Wall Street Reform and Consumer Protection Act which mentions the importance of translating disclosures and what happens if a dispute occurs with the translation. This is a clear sign that translating documents continues to be an important issue.

IN THE REAL ESTATE MARKETPLACE The best news to report is the wide array of examples of how lenders, servicers and non-profit organizations are delivering programs for LEP real estate buyers which go far beyond minimal compliance with laws or regulations.

Here are a few examples: BANK OF AMERICA In 2009, the bank joined with the National Coalition for Asian Pacific American Community Development, the National Council of La Raza, and the National Urban League to form the Alliance for Stabilizing our Communities. This unique coalition is the first national multicultural outreach and home retention effort to address foreclosures in Asian, Hispanic and African American communities. In 2009, 14 events were completed resulting in more than 6500 attendees and serving more than 4200 families. The events also offered onsite home retention counseling, attorney consultations and multi-language workshops to low- and moderate-income and multi-

30

cultural families at risk of foreclosure. In 2010, Bank of America and its national partners will continue their home retention focus through sponsoring 16 additional Alliance events this year.

Of the more than 100,000 calls coming into the Bank of America’s Servicing contact centers every day, up to 5% are from customers speaking a language other than English. To serve these customers, nearly 10% of associates receiving calls speak both English and Spanish, and customers who speak another language are directed to an in-language provider.

Bank of America partners with more than 500 housing counseling agencies that provide homeownership education and counseling as well as foreclosure prevention counseling.

To better meet the needs of all of its customers, the bank targets agencies that are able to provide services in multiple languages such as Spanish, French, Italian, Creole, Mandarin, Cantonese, Portuguese, Russian, Yiddish, Vietnamese, Arabic, Haitian, ASL, Cambodian, Farsi, Hindi, Ukrainian, Somali and Amharic Below is a list of some Bank of America approved agencies that provide services in multiple languages: Alliance Credit Counseling (NC) English, Spanish and Vietnamese Asian, Inc (CA) English, Mandarin, Cantonese, Vietnamese Community Organization of Southern Brooklyn (NY) English, French and Yiddish Portland Housing Center (OR) English, Spanish, Mandarin, Cantonese, Vietnamese Urban Edge Housing Corporation (MA) English, Spanish, Creole, Haitian

STEWART LENDER SERVICES Through Stewart Title’s wholly owned subsidiary, Home Retention Services, Inc., the company now partners with organizations such as the Boat People SOS, Korean Churches for Community Development, and the National Council of La Raza among others to provide home retention counseling services and assist in discussions regarding loan modification and other loss mitigation offers. These organizations provide qualified counseling services in a face-to-face environment and assist homeowners in understanding options available to them from their servicers. Those borrowers have loans with Stewart’s clients and the counseling agency helps the homeowner understand the documentation forwarded to them in a more personable environment.

LOOKING AHEAD INTO 2010 If your client is not fluent in English, you can be their advocate! Nearly all of the best known lenders and servicers can offer multi-lingual support, so ask for their assistance. One other suggestion – if your purchase and settlement documents need to be translated, work with a credible translation vendor. Exercise caution about trusting the accuracy of translations done by machines, not translators.

The rights of LEP citizens are attracting more attention every day with the industry’s top lenders and services, in the news and by legislators. Updates to these laws and others affecting the rights of LEP citizens will be provided in the future to AREAA members.

Additional Questions?

Legal Adria Cheng acheng@manatt.com Manatt, Phelps, Philips LLP www.manatt.com Mortgage Lending Bank of America

www.bankofamerica.com/homeloans

Multicultural Planning Gary Sanders gsanders@thelanguagefactor.com The Language Factor www.thelanguagefactor.com Lender Services Stewart Title www.stewart.com Translations courtesy of: thebigwordGroup www.thebigword.com Translate Central www.translatecentral.com

31

By Lina Chu

AREAA Greater Los Angeles has cemented its place in the community as a premier trade organization, promoting unity and bonding among Asian Americans and real estate professionals in the Los Angeles Metro area. The chapter provides a social anchor and networking platform for these diverse groups that face common challenges in the housing market.

The chapter recently celebrated its first anniversary, capping an impressive year highlighted by community and professional development events, and rapid growth to over 120 members.

AREAA CHAPTER SPOTLIGHT

IN THE BEGINNING In October of 2008, AREAA held its 3rd Annual Asian Ameri-

can Real Estate Convention and Gala in Los Angeles, California.

Soon thereafter, the Convention Chairman and AREAA National Board member, Edward Koo, sought to build upon the success of the event and began meeting with community leaders to establish a chapter. Among those joining Koo were: Charlie Suh, RE/MAX Tri-City Realty; Heather Chong, Solair; Cindy Baek, Stewart Title; Desolina Avila, Wells Fargo; and Chris Um, representing the Korean Real Estate Brokers Association of Southern California (KREBASC).

With a strong commitment to increasing sustainable homeownership opportunities in Asian American communities and increasing business opportunities for the real estate professionals that serve this growing population, AREAA Greater Los Angeles was formed.

The founding members called upon former KREBASC Chair and President, Charlie Suh, to serve as the chapter President.

His strong leadership skills, professionalism, keen sense of ethics, and love for the community and his professional peers make him a well-regarded and well-respected figure in the Korean community.

Suh headed a dream team of talented founding members, Executive Board of Directors and Cabinet Members backed by strong support from a Board of Directors with diverse backgrounds, each a leader in their own field. With the unselfish dedication from this team, the chapter laid the initial foundation bricks one by one.

In order to accomplish its mission of increasing sustainable homeownership in Asian communities, the chapter understood that it had to act quickly and work diligently in assisting this population to overcome the language, cultural and knowledge barriers that have inhibited homeownership. On the other hand, the Greater Los Angeles chapter was committed to increasing networking opportunities for the real estate professionals serving 2009 EXECUTIVE MEMBERS Charlie Suh, President RE/MAX Tri-City Realty Benny Kim, Vice-President C21 EN-Achievers Shinglian Chu, Vice-President Shinglian Associates Heather Chong, Secretary Solair Caroline Lee, Treasurer B&P Associates Marla Vidal, Corresponding Secretary Action Asset Management Tom Cho, Legal Counsel Hanmi Escrow AREAA National President Jim Park installs the founding Board members of AREAA Greater Los Angeles, February 24th, 2009

the Asian community in Los Angeles. In addition, the chapter was committed to increasing its visibility and exposure to local, state and federal housing organizations, promoting partnership among the organizations to reach its goals.

THE FIRST YEAR In 2009, AREAA Greater Los Angeles set out to bring effective educational seminars and increase foreclosure awareness to help the Asian American communities in a challenging market.

In promoting foreclosure prevention, loan modification and short sale options, the chapter helped to strengthen LA’s Asian neighborhoods. They also provided seminars for first time homebuyers and helped them to navigate new lending guidelines, empowering a new generation of well-educated homeowners.

Thanks to the tireless volunteer efforts of their chapter members and the kind support and sponsorship from key financial and real estate organizations, AREAA Greater Los Angeles participated in, and hosted, a number of successful community events in its first year: DATE

EVENT

LOCATION

April 18-19th

2009 Southern California Homebuyer’s Fair

Los Angeles

May 16th

Project Homeowner Foreclosure Prevention Fair

Inglewood

June 20th

KCCD 9th Homeownership Fair

Los Angeles

September 19th

Community Home Buyer & Real Estate Seminar

San Gabriel

September 27th

Harvest Moon Festival

Arcadia

November 19th

Foreclosure Prevention Seminar for the Korean Community

Los Angeles

AREAA CHAPTER SPOTLIGHT

The chapter also translated and produced Achieving Homeownership, a booklet created by AREAA National on the basics of homeownership, for the Korean community with assistance from various local sponsors.

In addition to participating in many community events, AREAA Greater Los Angeles remained active in professional development, participating and organizing many well-received events. The chapter’s professional development focus is to provide education opportunities and powerful networking platforms for real estate professionals serving Asian Americans.

DATE

EVENT

LOCATION

February 24th

2009 Executive Board Installation & Chapter Kick-Off Celebration

Los Angeles

March 13-14th

AREAA National Policy Conference & Gala

Washington, DC

April 21st

Arcadia Association of REALTORS 13th Annual REALTOR Tech, Business & Green Expo

Arcadia

May 5th

Cinco de Mayo Fiesta

Los Angeles

June 11th

AREAA GLA & Tri-Counties Association of REALTORS Educational & Social Networking Event

Diamond Bar

September 15th

Member Appreciation Night

Los Angeles

October 25-27th

AREAA/NAHREP Real Estate & Marketing Conference

Las Vegas

October 26th

Member Appreciation Happy Hour

Las Vegas

LOOKING AHEAD As the chapter closes out a challenging and rewarding first

year, AREAA Greater Los Angeles turns to 2010 President, Benny Kim, to expand upon the foundation established by the previous leadership team.

Kim served as a Vice-President of the chapter during 2009 and was one of the key catalysts in the chapter’s successful growth as he has personally recruited many members.

Some members describe Kim as having a magnetic personality and strong leadership skills. Kim’s election as chapter President was unanimous and celebrated among chapter members.

34

In addition to inspiring more Asian American real estate professionals to join the chapter, Kim’s goals for 2010 include: Developing a tighter partnership with local government housing agencies and major financial institutions through their local offices, to ultimately prevent foreclosure and increase housing opportunities for the Asian American community Increasing the exposure of the GLA Chapter to the Asian American real estate community through regular educational events and meetings.

Implementing a mentor-mentee program within the chapter to help members acquire new skills and learn from each other’s experience.

We are the voice and the eyes for the Asian American community, and we are their guardians for foreclosure prevention and their guide to homeownership. We will take an active role in assisting them through the process in purchasing their first home.

Benny Kim 2010 President AREAA Greater Los Angeles

AREAA DRAGON PROFILE

1. AREAA Greater Los Angeles leadership meeting, December 15th, 2009 2. Chapter leaders with California Department of Real Estate Commissioner Jeff Davi and Chase National Executive Donna Miller at the Project Homeowner event in Inglewood, May 16th, 2009 3. AREAA Greater Los Angeles Founding President Charlie Suh speaks at the foreclosure prevention seminar, November 19th, 2009 4. AREAA Greater Los Angeles leadership with AREAA National President Jim Park at the White House Kim says that the theme for 2010 is “Doing Business in a Challenging Market� and that he plans to provide chapter members with opportunities to host joint events and learn from: asset management companies, major financial institutions, Fannie Mae, Freddie Mac, the FDIC, the National Association of REALTORS and the California Association of REALTORS, as well as local real estate boards.

Grand vision depends on successful execution. To accomplish all the goals for 2010 Kim has surrounded himself with a talented and enthusiastic team of Executive Board members and cabinet members. With this skilled leadership team, he is confident the chapter will head toward another successful year.

2010 EXECUTIVE MEMBERS Benny Kim, President

Century 21 EN-Achievers

Shinglian Chu, Vice-President

Shinglian and Associates

Lina Chu, Vice-President RE/MAX Champions/GainSpot Realty Inc. Heather Chong, Vice-President Esther Lee, Secretary Geremy Yamamoto, Treasurer Tom Cho, Legal Counsel Jane Sun, Chapter CPA

Solair Yong Lee & Associates Century 21 EN-Achievers Hanmi Escrow Century 21 EN-Achievers

AREAA Greater Los Angeles would like to thank Bank of America, Chase, Wells Fargo, Wilshire State Bank, Tri-Counties Association of REALTORS, Korean Times & AREAA National for their kind support in 2009.

35

AREAA DRAGON PROFILE

MAX KIM

By Rebecca Cho Photos by Tim Park

AREAA DRAGON PROFILE

At only 35 years old, Min “Max” Kim seems like a man who has it all.

He oversees more than 100 employees

through the management of four successful companies in the

Southern California real estate industry. Metro Pointe Premier Inc., a real estate opportunity fund he founded in 2003 in Irvine, California, manages $180 million in overseas capital to be deployed into the United States. He owns a beautiful home in Corona with his wife and greatest supporter, Cindy. Together they are the proud parents of Cameron, a 17-month-old son.

And in December 2009, just six months after joining the Asian Real Estate Association of America (AREAA), organization Chair John Fukuda handpicked Kim to play an integral role in the launching of AREAA Dragons (www.AREAADragons.org), a new website that, through an online community and webinars, helps members find their next real estate transactions. As one of about 20 other “Dragons,” all highly successful real estate professionals, Kim acts as a mentor who shares the secrets of his success with other AREAA members.

students alternated between studying and partying, Kim skipped out on the normal college experience to attend so-called wealth seminars. “In college, I struggled in a lot of things, but not with drugs or girls. The biggest sin that I had was money,” Kim said.

Kim, a natural leader and people person, grew up aware of the fact that people tended to follow him. In fact, during his childhood in Garden Grove, every year from sixth grade to the end of high school, he was the president of his class, including being elected Associated Student Body president in his senior year.

Kim also possessed an unusual amount of drive and determination from an early age. As a high school freshman, he set his sights on not just learning volleyball, but in excelling in it. By the next year of school, Kim was the captain of the varsity volleyball team.

In college, Kim used his leadership abilities to recruit fellow students into a multi-level marketing company in Orange County that he had joined in his second year at UCI. That year, while still in college, he made his first million dollars.

“It was the most ridiculous year of my life,” Kim said.

He felt invincible. He bought a Ferrari and a Mercedes. He began to put his money in the stock market. He distanced himself from his family and friends who became concerned

But Kim takes none of his success for granted.

about his sudden change in lifestyle. Upon graduating college,

The reason? Just 10 years ago, Kim was at the lowest point of his

Kim went to work as a stockbroker at financial services firm

life, broke and questioning where everything went wrong. He

Northwestern Mutual. His plan was to double and triple his

learned what it felt like to gain incredible success only to let it all

wealth and retire within a few years.

slip away.

As a freshman at the University of California, Irvine, Kim, who grew up in Orange County, developed a thirst for wealth. While his fellow

In college, I struggled in a lot of things, but not with drugs or girls. The biggest sin that I had was money

AREAA DRAGON PROFILE

But soon, Kim began to lose money in stocks. He continued

fellow majority owner of a real estate land development

allocating his money in stocks, believing he could make up what

company.

he was losing. In 1999, the stock market crashed. Kim lost about 80 percent of his wealth. “I was a young kid who instantly got wealth,” Kim said. “I couldn’t control that wealth.”

Also in 1999, Kim, a professional snowboarder, got in a snowboarding accident that left him immobile for several months. He lost his job. He moved in with his parents in Garden Grove. The friends who had flocked to him in his wealth deserted him.

And in those months, during the darkest period of his life, confined at home and left to nothing but his thoughts, he reached a turning point.

Kim said he took responsibility for letting his life spiral out of control. He opened himself up to his family and friends again, including taking the advice of his older brother who told him he had an opportunity to turn his life around and make a difference.

“I looked at money in a different way, I looked at friends in a different way, I looked at everything a different way,” Kim said. “It was an experience I value very much.” He turned his back on pursuing wealth and ventured out with a humbled outlook looking for work that he found rewarding. He soon landed on real estate, an industry that suited his aptitude for building relationships with people and experience in financial analysis.

He also learned crucial skills in real estate land and company development from a mentor and

38

In 2000, Kim took his newly acquired knowledge in real estate and with a partner developed a condo conversion and apart-

AREAA DRAGON PROFILE

ment buying business called Silverstone Holdings. Through

addition to the people Kim met professionally, his father taught

that venture, Kim learned to develop the processes and proce-

him to buy quality over quantity.

dures needed to create a healthy business. Today, his real estate investment company manages more than $20 million in private assets.

Pointe Premier Realty Inc., of which he is president and chief executive officer.

applied the hard lessons he learned just a few years earlier. “I got successful again quickly, but I was reserved. I was afraid of success because I didn’t know if I could handle success,” Kim said.

“This time, I learned how to build wealth. I learned to put it away in real estate.”

Due to his earlier experience, Kim quickly spotted greed in potential business associates and knew to just walk away.

Four years later, he bought a franchise

immigrated from South Korea to the U.S. in the late 1970s, leaving their two sons behind at first to build enough in finances

In 2003, Kim opened his own independent brokerage, Metro

As he grew prosperous again, Kim

His father and mother, Kim’s role models in working hard,

to pay for a flight for their children. They worked cleaning houses and picking cabbage in Orange County. Kim and his brother joined them in 1980.

Growing up, Kim barely saw his

I got successful again parents, who worked during the day cleaning apartments and at night in a quickly, but I was restaurant and bar. His parents taught him reserved. I was to work hard and work smart, Kim said. afraid of success Tommy Kim, who jumped on at SoCal because I didn’t know Avalar two years ago and is now its vice president, said he came on board if I could handle because he believed in his boss’s success...this time, I business savvy and leadership learned how to build abilities. wealth. I learned to “[When he enrolls agents] he says it’s not about wanting to hire anybody but he’s put it away in real looking for business partners,” the vice president said. “That place and mentality he estate.

of the national firm Avalar Real Estate called SoCal Avalar Real Estate through which Kim oversees more than 82 agents in the marketplace. In 2009, he formed a commercial arm targeted to helping commercial lenders develop Real Estate Owned property called SoCal Avalar Commercial Group.

comes from is why people like and respect him a lot.”

He said when the mortgage meltdown began in 2007, many real estate companies shrunk. But Max had a vision to expand his business to distressed markets and working with investors. “He talked about being contrarian,” Tommy said. “He said this was a great time to be expanding business.”

Kim said the key to his developments that led to his building his

Since his joining and under Max’s leadership, Tommy said,

four companies was the mentor relationships in his life. In

SoCal Avalar has grown from about 25 [continued on page 52]

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Raising Your Commercial IQ Introduction to the Valuation of Income Properties

BY NEIL OSBORNE A common way to value an income property is to use the Cap Rate. The objective of this article is to: 1. Introduce and discuss the use of the Cap Rate in valuing rental apartment buildings 2. Provide practical tips for valuing income properties and analyzing Income & Expense Statements

Introduction to the Cap Rate

If I was to offer you $153,000 per year forever and you want a 10% return, how much would you pay me? The answer is:

$153,000 which is $1,530,000.

10%

What we have done is “Capitalize” the $153,000 per year at 10% to create a value of $1,530,000.

Using a Cap Rate from comparables, the value or price is calculated as follows:

Value or Price =

Net Operating Income (NOI) x 100 Cap Rate from comparables

The Net Operating Income (NOI) is determined as follows: Potential Gross Income Less: Vacancy & Credit Loss (4.0%) Effective Gross Income

$ 300,000 12,000 288,000

Operating Expenses Net Operating Income (NOI)

135,000 $ 153,000

If the Cap Rate from comparable properties is 8.00%, the value is:

Value or Price =

40

$153,000 x 100 = $1,912,500 8.00

Operating expenses for rental apartment buildings include: 1. Property taxes, insurance, utilities and a variety of maintenance expenses and service contracts 2. Property management, which is typically 5.00% of Effective Gross Income, resident caretaker’s salary, accounting plus office and cleaning supplies and other miscellaneous expenses When using Cap Rates the following Operating Expenses should be removed from the Income & Expense Statement: 1. All non recurring expenses such as partial replacement of appliances, carpets, etc.

2. Depreciation and all finance and interest expenses 3. All expenses unrelated to direct operations such as travel expenses Often the Income & Expenses presented by the sales agent or buyer are misleading with the operating expenses being too low. The easiest way to check if the expenses are realistic is to calculate the Operating Expense Ratio (OER) which for the above example is: Operating Expense = Operating Expenses = $135,000 = 45% Ratio (OER) Potential Gross Income 300,000 Operating expenses for rental apartment buildings should run between 35% and 45%, or higher depending on the condition of the building.

TIP: When you analyze a building, the first thing you should do is calculate the Operating Expense Ratio to see if the expenses are realistic or not. Do they fall in the range of 35% to 45%? It is not uncommon to see operating expenses below 30% of Gross Income. If this is the case, you need to carefully examine and correct any expenses that are clearly understated and add any expenses that are missing.

Often the “maintenance expense” is understated. The easiest way to check expenses like maintenance is to calculate the maintenance cost per unit per year. As an example: Maintenance: $4,000 per year No. of Units: 40 Maintenance per Unit per Year: $4,000 = $100 per unit / per year 40 Common sense would tell you this is far too low. Typical figures are $450 to $650 per unit per year depending on the condition of the building and deferred maintenance.

Also check to see if key expense items have been left out such as the resident caretaker’s salary, property management, accounting services, etc.

TIP: In estimating the value of the property using a Cap Rate, use next years projected income and expenses because this is what a buyer and appraiser will use in calculating the value.

Finding Cap Rates

Cap Rates come from comparables. Finding accurate Cap Rates is a very difficult and uncertain process as there is virtually no published information available.

All the major commercial firms publish research reports which are sometimes available on their web sites. Commercial sales agents and appraisers may have the answers but may not be willing to share their knowledge and expertise with you.

The best source for you for accurate Cap Rates is to get to know experienced mortgage lenders and brokers specializing in financing the type of property that you are evaluating. They have a vested interest to help you and are usually very knowledgeable about Cap Rates in their area of expertise.

Small changes in a Cap Rate create large changes in value

A change in a Cap Rate from 8% to 9% doesn’t sound like much, but it is 1 in 8, which is a 12.5% drop in the value of the property.

A small change in the Cap Rate causes a large change in the value of the property. In the above example, the value at a 8.00% Cap Rate is $1,912,500 and at a 9.00% Cap Rate $1,700,000 which is a $212,500 drop in value Be careful when using Cap Rates. It is very easy to underestimate or overestimate the value of an income property using Cap Rates.

Small changes in rent create large changes in value

The value of an income property is highly sensitive to the rent rate. As an example, if the owner of a 60 unit rental apartment building can increase the rents by $50 per unit per month and the Cap Rate is 9%, the value of the property increases by: Increase in 60 units x $50 per month x 12 x 100 = = $400,000 value 9.00 When evaluating income properties pay close attention to the rent rate. A small change in rents creates a large change in value of the property. Misjudging rents or rent increases can be very costly. It is very important for owners to keep rent close to market rents and investors love opportunities where they can quickly increase rents and the value of their investment.

Neil Osborne

The creator of Investit, a comprehensive, easy to use, affordable real estate investment, lease and development analysis software and the Webinar series, Raising Your Commercial IQ. 1-877-878-1828 www.investitpro.com

Caution. Because of the current economic uncertainty, current Cap Rates and sale prices are hard to predict.

Another approach is to calculate the Price per Square Foot from comparables.

Sensitivity Analysis

In analyzing and negotiating the purchase or sale of income properties, it is helpful to have a clear understanding of which numbers have the most impact on the property value…what numbers really count? We call this “Sensitivity Analysis.”

For income properties, two very important numbers that affect the value of the property are the “Cap Rate” and the “Rent Rate.”

41

Credit Scores: What You Can Do About Them

By Larry Fried

It’s just a 3 digit number but without it, buying a house, getting a car, or borrowing money is almost impossible.

or are you nearing retirement or maybe you just chose to never carry a credit card or mortgage?). This information is gathered by the banks and companies that lend you money. They report this information every month to the three major credit reporting agencies (Equifax, Experian, and Trans Union). These credit reporting agencies store this data so they have a history on everyone that ever had credit and they keep it for a long, long time. They make this information available to lenders when you apply for a loan so they can see your history and decide if they want to lend you money or extend credit to you. It’s sort of like a report card or transcript of your credit life.

A credit score is calculated from data; your data. Data about how you have paid your bills in the past (were you always on time or sometimes late?), how much debt you owe (your credit card balances, mortgage amount, car loans or lease), how long have you had debt or credit (did you just get out of school

So where does the credit score part fit in? Well, it gets pretty tiring to

The concept of creating a credit score started over 50 years ago but only recently in the last two decades with the advances in computers, communications, and data collection, has it become the standard for judging a borrower’s ability to repay a loan. Let’s start at the beginning in order to understand what a credit score is, why it is important to you, and what you can do to make sure yours is as high as possible.

42

read all the data in someone’s credit report and a lender might look at hundreds of these a day. In order to make their life easier, formulas and algorithms were created so a

computer could “read” all this data in your credit report and calculate a rating or grade on how good someone’s credit data is. By good, we mean if someone lent money to this person, what is the risk they will be paid back.

The score represents a risk grade based on the data in your credit report history. It is usually on a scale ranging from 350 to 850 with the higher number being a lower risk customer.

It is important to note that there are many of these “formulas” out there so your credit score can vary slightly depending on the model being used by that specific lender.

Additionally, since the score is calculated from the data at a specific point in time, it can change daily depending on what data is available about you from the credit reporting agencies. To make it even more complicated, not all the credit reporting agencies have the same data about your credit history. One may have a Visa card you carry but not your car loan, another may have the car loan, but not the Visa card you use.

Now that you know what a credit score is, let’s talk about why it is important to you. Since most lenders like to avoid risk, they look at the credit score and can decide not to lend to you if your score is too low or below a threshold they don’t feel comfortable with. However, and more importantly, things are not simply black and white in that they will either give you the credit you want or not. The interest rate they charge you is based upon your credit score, meaning that a higher credit score usually gets you a lower interest rate. A lower interest rate saves you money on interest payments over the life of the loan or the time you have an outstanding balance.

This can be very significant, especially on a mortgage. Example Since we now understand what a credit score is and why it is important, let’s discuss what you can do about it. We will look at three different types of people: Those who have never had credit Those who have credit but not managed it effectively Those who have credit and may be preparing for a big purchase and want to get their score the best it can be

For those that have never had credit, getting a good start and building

credit is important. You can often establish a very good score in a short period of time. The first step is to open up a line of credit which can be a car loan, a credit card, or a store charge card. Ideally, you want four of these lines of credit to produce an optimal score.

Then, you must ensure that you pay them on time and not miss any payments and make sure you only utilize a small percent of the maximum available credit limit on each one.

For those that have credit but have mismanaged it, rebuilding it to

raise your credit score can be difficult but not impossible. Getting someone to give you credit is the primary focus here. Banks often offer secured credit cards which look, feel,

For example: If you are preparing to purchase or refinance a home with a 30 year fixed $300,000 loan, look at the difference just a few points in your credit score can make.

Person A

Person B

Credit Score

694

700

Interest Rate Offered

5.50%

4.75%

Monthly Payment

$1,703

$1,565

Annual Savings

$1,661

Total Savings over Life of Loan

$49,833

and act like regular credit cards but must be pre-funded, sort of like a pre-paid gift card.

These cards get reported to the credit reporting agencies just like normal credit cards and can help to bolster your score if paid on time and not maxed out to the limit.

Department stores typically offer their cards to individuals at no fee with lower requirements to get them to make a purchase and have them as customers.

For those that have good credit but want to make it better so they

can get an even lower rate when they buy a home or car need to understand a bit more about how the credit score is calculated and their own present situation. Since no two people have exactly the same credit history or profile, it is hard to use generic advice to predict how their score will change by opening an account or closing an account or transferring balances.

The credit reporting agencies don’t want you to know the “secret recipe” of how your credit score is calculated as this is highly guarded and secret. However, there are tools on the market that allow you to run scenarios to see how your score might be

impacted by various financial actions you may make. One such service is provided by ManageMyScore and allows the user to run simulations directly on their own credit data.

So, before you run out and get a new credit card, or transfer balances, or lease a new car, check what the effect on your score might be so that you don’t run the risk of lowering it to the point where your interest rate could rise next time you need to refinance or make a big purchase. Similarly, if you are preparing to buy a house or car, and only need to raise your credit score a few points to get past a threshold to a better interest rate, this service can guide you. www.managemyscore.com As long as credit scores are used by lenders to offer you credit and determine your interest rate, it is best for you to be well educated about the system and what you can do personally to manage your credit score.

43

GREEN CARDS THROUGH INVESTMENT

A Solution for Asian Buyers H. Ronald Klasko

D

oes this sound familiar? You have a foreign buyer interested in purchasing real estate in the U.S. but only if he or a family member will have the ability to live in the U.S. year round.

Perhaps he wants to retire in the U.S. Perhaps he wants to continue living in Asia but have a second home in the U.S. Or maybe he wants his children to have a place to live while they are studying in the U.S.

None of the traditional U.S. visas will accomplish the desired results.

There are visas for working in the U.S.; visas for running a business in the U.S.; visas for visiting the U.S.; but no visas for retiring in the U.S. or for living as little or as much as the buyer wants in the U.S. without working here.

Now there is a solution for the real estate buyer who is able to make an investment of $500,000 in a U.S. government-approved construction project. This program, called the Regional Center EB-5 program, was recently extended for three more years in a bill signed by President Obama in October.

Here’s the way it works: The investor chooses from about 70 government-approved regional centers, most of which require a $500,000 investment. The investment proceeds are put to work in a job-creating business -- usually construction – with the requirement that jobs are created for U.S. workers in the project in which the investment funds are used.

Generally, the investment funds are placed at risk in the commercial enterprise for at least five years, after which the investor may be able to redeem the investment at market value, hopefully getting return of full principal plus some additional

FOREIGN INVESTORS

rate of return. If the investor can prove the lawful source of his invested funds, and trace the funds from his personal account to the account of the regional center, he should be able to get U.S. permanent resident status (green card) good for two years. At the end of the two years, upon showing that he is still invested and the requisite jobs have been created, he can obtain a permanent green card.

This may be ideal for the foreign buyer we discussed above. He does not have to work in the U.S.; he can live in the U.S. as much or as little as he wants; he can buy real estate in any part of the country he chooses and is not limited to the area of the regional center; he can work or not work as he wishes; his children can go to school in the U.S. for as many years as they wish and be eligible for in-state tuition; and he should have complete eligibility for mortgage consideration.

Are there any catches? Here are some: Many of the approved regional centers have been approved within the last year and have no successful track record. The buyer should work with immigration counsel in learning about the immigration history of various regional centers and with financial and tax counsel regarding security of the investment and rate of return.

In order to keep the green card, the project in which the investment is made must create, directly or indirectly, ten jobs for U.S. workers for each investor. Otherwise, the green card can be lost.

In some Asian countries, it can be difficult to prove to the satisfaction of the U.S. Immigration Service the lawful source of the money being invested. In addition, some Asian countries have currency laws that may make it more difficult to get the

46

money out of the country and to trace the flow of the funds from the investor to the regional center.

Although the regional center EB-5 may be the best option today for the foreign real estate buyer with the resources to invest, another, more direct, option may be on the horizon.

Realtors working with international buyers are championing a new law that would create a “silver visa� for international buyers of U.S. real estate. While not a green card, the silver visa would allow investors over a certain age who have independent resources and do not need to work to remain in the United States year round based upon purchasing U.S. real estate of a specified amount. This has some attraction to politicians in Washington who realize that tapping the market of international buyers could help solve the serious problem of the large amount of real estate on the market that is not being purchased by the domestic marketplace and that must be sold before major new construction becomes a viable option.

Unless and until that happens, the regional center EB-5 program is highly popular among Asian investors.

H. Ronald Klasko is the founding partner of Klasko, Rulon, Stock & Seltzer, LLP in Philadelphia and New York. He is the Chairman of the EB-5 Committee of the American Immigration Lawyers Association.

Online: www.klaskolaw.com www.eb5immigration.com

http://areaa.org/national/areaa-mongofax.html

training@mongonet.net

RECENT EVENTS

AREAA Greater Sacramento hosted their kickoff celebration on Thursday, October 1, 2009 at the Sacramento Association of REALTORS. AREAA Founding Chair Allen Okamoto gave the opening remarks and special congratulatory wishes to the Board of Directors and Andrew Lee, AREAA Greater Sacramento President and Founder.

Sparked by a commitment to his peers and the community, Lee started the chapter to help break down political and cultural barriers that prevent Asian Americans from enjoying the dream of sustainable homeownership. The chapter also gives real estate professionals representing

Sacramento’s Asian population a voice in the discussions that will shape the local, state and national housing landscape.

Looking ahead, Lee and the AREAA Greater Sacramento leadership team plan to continue their successful monthly education series, as well as host a foreclosure prevention event with Freddie Mac, aimed at assisting distressed homeowners in Sacramento’s Asian communities.

For more information on AREAA Greater Sacramento, visit the chapter online: http://areaa.org/sacramento.

Founding President Shen-Yi Michelle Chang and the AREAA Arizona leadership welcomed guest speaker Lauren Feild of HomeSteps to the Hong Kong Gourmet Buffet in Phoenix for their inaugural event.

The chapter serves one of the nation’s fastest growing Asian communities and, led by Chang’s direction, has already hosted a handful of successful events since its inception in November of 2009.

Similar to their counterparts in Sacramento, AREAA Arizona will also be teaming up with Freddie Mac to host a foreclosure prevention event for Asian communities in Phoenix.

For more information on AREAA Arizona, visit the chapter online: http://areaa.org/arizona.

RECENT EVENTS

On December 7th, 2009 AREAA Greater Chicago hosted a special private reception at the world famous Arun’s Thai 5 Diamond Restaurant. Ms. Nancy Suvarnamani, President of AREAA Greater Chicago and Ms. Vanessa Falcon, Vice President and board members greeted many personalities of government and the private sector at the threshold of this unique restaurant that is filled with magnificent gold leaf murals depicting the life of Buddha, and the private collection of Thai artifacts and craft work.

REALTORS was represented by Ms. Cathy Shang.

In attendance were luminaries such as Secretary of State, Jesse White, and Cook County Treasurer, Maria Pappas, and the Consul Generals of Thailand, Taiwan, Indonesia, the Philippines among others.

Tzu Chi Foundation was established in 1966.

For over 42 years, the foundation has been contributing to better social and community services, medical care, education and humanism around the world. Tzu Chi’s missions focus on giving material aid to the needy and inspiring love and humanity to both givers and receivers. In addition to charity, the foundation dedicates itself in the fields of medicine, education, environmental protection, international relief work and the establishment of the world’s third largest marrow donor registry.

The REALTOR community was represented by the CEO of The Chicago Association of REALTORS, Ms. Ginger Downs, the President of the Chicago Association of REALTORS, Ms. Genie Birch, the Vice President, Ms. Mabel Guzman and the Vice Chair of the Chicago Association of REALTORS International committee, Mr. Kurt Penn. The Main Street Board of

Attendees enjoyed the most delicious appetizers and dishes in a beautiful setting of colorful figures depicting Thai mythology.

Part of the proceeds were donated to the Tzu Chi Foundation, a non-profit organization that helps many causes around the world.

Sponsors for the event included Wells Fargo, The Chicago Association of REALTORS, AFLAC and Century 21 SGR.

RECENT EVENTS

After a tremendously successful chapter holiday party, which included both a silent and live auction, AREAA Orange County donated $5,000 to the Asian American Senior Citizens Service Center (AASCSC).

Located in Santa Ana, California, AASCSC is a non-profit organization dedicated to increasing the awareness of the needs of the Asian American elderly, assisting their access to essential health care and social services, and promoting a dignified living in the community. Visit AASCSC online at http://www.aascsc.org/

AREAA Orange County Chapter President Alice Tsang (middle-right), Director Rita Chen (far left) and Vice-President Aaron Yu (far right) present AASCSC Director Donna Lin (middle left) with a donation of $5,000.

51

[AREAA DRAGON PROFILE continued from page 39] to more

charged with chapter development. The chairman also enlisted

than 82 agents.

the Orange County businessman to join AREAA Dragons

In 2009, Kim learned about AREAA from Jim Park, who is the current president of the organization and owns an asset

(www.AREAADragons.org). Fukuda said Kim fit the qualifications he was looking for in a Dragon and leader.

management company in San Diego. Park suggested that Kim

“AREAA is in constant search for the next generation of leaders

consider getting involved in the local chapter’s board of direc-

for the organization,” Fukuda said. “When I met Max, I was

tors.

struck by his ability to communicate, at how successful he was,

“I came to the board meeting and something clicked,” Kim said.

“I had an opportunity now to give back in an industry that had done so much for me.”

When he met John Fukuda, Kim knew he had found a new

and that he is not weathered. He’s willing to participate, jump in, and he never seems like he doesn’t have time to do something. His spirit of volunteerism has been incredible.”

Kim said he hopes to leave a lasting legacy from his life rather

mentor.

than accumulating material wealth, a desire born out of his

“I looked at John and his life and he quickly became one of my

developing a nonprofit organization that funds the building of

mentors in the real estate world,” Kim said. “He gives back so

churches in Asian countries.

much after he was so successful early in life. I looked at him and said he was someone I could look up to.”

post-college experience. As a Christian, Kim has already begun

And part of his legacy, he hopes, is bringing to AREAA a desire to strengthen Asian American voices in the real estate industry

Fukuda, impressed with Kim’s professional success as well as his

and to share the lessons he has learned in wealth management

leadership potential, asked Kim to chair a national committee

and business development.

“I am successful in the real estate industry.

Now I’ve learned how to control wealth, build wealth and understand it,” Kim said.

“Wealth development was something that took 10, 11 years to understand. That’s what I bring to AREAA.”

52

www.areaadragons.org

www.nahrep.org

www.areaa.org