OC Realtist Magazine January 2016

Happy 2016!

The Best Kept Secret of Orange County: Dana Point CEO Centerfold with Eric Lawrence Frazier mba

We proudly welcome ZipRealty™ and its innovative technology platform to our family of real estate brands!

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CONTENTS: Mission and Vision of the Orange County Realtist Magazine................(page 5)

MESSAGE FROM THE PRESIDENT

THE POWER IS NOW INC.

The Plight of African Americans.............................................................(page 10)

Vol. 02 | Issue 1 Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 Eric.Frazier@ThePowerIsNow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow

EDITORIAL TEAM Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Alexandra Attinger Managing Editor (800) 401-8994 ext. 708 alexandra.attinger@thepowerisnow.com

Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com

CONTRIBUTORS Orange County Realtist Research Team

BUSINESS Commercial Real Estate Lending Now on the Rise ..............................(page 14)

GREEN Green homes..............................................................................................(page 18)

FINANCE Managing Your Way to Financial Freedom...........................................(page 22)

OUR COVER Eric Lawrence Frazier MBA...................................................................(page 24)

LEGAL SBA Loans Now More Readily Available to Borrowers........................(page 28) New HUD Rules to Reinvigorate Fair Housing Laws...........................(page 32)

REAL ESTATE Real Estate Market Focus: Dana Point, CA..........................................(page 36) Real Estate Market Focus: Riverside, CA.............................................(page 40)

ECONOMICS Savings Rates of African-Americans.....................................................(page 44 )

The Orange County Realtist Magazine is an online and eZine publication of the Orange County Realtist a Chapter of The National Association of Real Estate Brokers® (NAREB).

The magazine is published and distributed by the publishing division of The Power Is Now, Inc., and has ten sections focused on the real estate market, economics in Orange County and the Realtist members who serve the community. The mission of the OC Realtist Magazine is to educate consumers and real estate professionals about the opportunities to buy or sell real estate in Orange County and to spotlight professional real estate agents who are Realtists.

profit organizations, and community organization that support the welfare of the citizens of Orange County and are affiliates of the OC Realtist.

The Digital Online subscription launched April and continually provides the best of the Orange County Realtist Magazine in an all-digital format.

With the Orange County Realtist Magazine, readers can have access to archived issues as well as current content online. Videos, online radio, webinars and other events provided by the OC Realtist will be available to empower its readers with information to achieve the American Dream.

The OC REALTIST MAGAZINE - The The magazine is free and is distributed by email American Dream and online to members of our local chapter and NAREB chapters nationwide. Over 30 The Orange County Realtist Magazine features thousands real estate professionals in Orange articles about real estate in Orange County and County, our state, federal and local city political informational interviews with local and national representatives in each of the 34 cities in Orange community leaders, real estate agents, banking County, non-profit housing organizations, church and investment professionals, and community. leaders in Orange County, and many affiliates of The Orange County Realtist Magazine also our chapter -- OC NAACP, OC Black Chamber, provides consumer focus content about buying OC 100 BMOC-- and others will receive the and/or investing in real estate, financing real estate magazine. and maintaining and protecting real estate as an asset for years to come. The magazine’s focus is In addition, our own email list of consumers on all aspects of buying and/or selling real estate is growing daily through our community from a consumer’s perspective because it is still outreach. The list will continue to grow due to the American Dream. the importance of homeownership and the strong support we have in the community to help others achieve it. We want the magazine to be of great value to our members, an excellent resource for our community, and a tremendous value to our advertisers as an affordable marketing strategy to a target consumers interested in real estate as a home or investment. The Orange County Realtist magazine will also provide free advertising to non-

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Mission The mission of the Orange County Realtist is to provide support and education for its members to grow and expand their businesses while assisting the community to achieve the American dream of homeownership.

Vision The vision of the OC Realtist is to become the largest Chapter of NAREB in the United States, comprised of successful Realtists® whose businesses are thriving from the support they receive through the chapter and the networking opportunities that exist by their affiliation with National Association of Real Estate Brokers.

Departments 1. OC Real Estate Market 2. OC Real Estate Resources 3. OC Real Estate Investing 4. OC Realtist Spotlight 5. OC Real Estate Financing 6. National Association of Real Estate Brokers News 7. California Association of Real Estate Brokers News 8. OC Realtist President’s message 9. OC Real Estate Business and Economic 10. OC Real estate laws and legislation

Cover and Feature story profiles: The OC Realtist Cover will never be sold as it will be our way of recognizing Realtists in Orange County and all over the United States who exemplify the Realtist spirit. The online magazine and eZine will have 10 sections for various articles under the OC Realtist theme: OC Real Estate Market, OC Real Estate Resources, OC Real Estate Investing, OC Realtist Spotlight, OC Real Estate Financing, National Association of Real Estate Brokers News, California Association of Real Estate Brokers News, OC Realtist President’s Message, OC Business and Economics, OC Real estate Laws and Legislation. The writers for each department will be industry professionals who are practitioners in their field of expertise. They are industry professionals who can provide advice, and information to make decisions that will enable consumers achieve the American Dream.

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CEO & Publisher Eric Lawrence Frazier, MBA 3739 6th Street, Riverside, CA 921506 Ph: (800) 401-8994 ext. 703 EDITORIAL Editor in Chief: Eric Lawrence Frazier MBA Managing Editor: Alexandra Attinger ONLINE Web Designer: Nicholas Clarkson DESIGN Art Director & Design Manager: Goldy Ponce ADMINISTRATIVE Administrative Assistant: Rachel Bacol

SALES National Sales Manager: Christina Kimble National Relationship Manager: Success Money HEADQUATERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92506 Ph: (800) 401-8994 Fax: (800) 401-8994 Email: info@thepowerisnow.com www.thepowerisnow.com www.thepowerisnow.com/onlinemagazine www.thepowerisnow.com/ezine PUBLICATION AND SERVICES The Orange County Realtist Magazine The PIN Magazine The Power Is Now Radio The Power Is Now Publications The Power Is Now Radio Guide The Power Is Now VIP Agent Program The Power IS Now Power Consulting/Coaching The Power Is Now Association Management The Power Is Now Event Management

STATEMENT OF COPYRIGHT: The OC Realtist Magazine TM is owned and published electronically by The Power Is Now Inc. The Power Is Now Inc. has entered into joint venture with the OC Realtist for the design, publication and distribution of the Magazine.

Copyright 2013-2016 The Power Is Now Inc. All rights reserved. The name Orange County Realtist is a trademark of the Orange County Realtist Inc. A chapter of the National Association of Real Estate Brokers.

“The PIN Magazine and distinctive logo are trademarks owned by The Power Is Now Inc. “ThePINMagazine.com” is a trademark of The Power Is Now Inc. “Magazine.thepowerisnow.com “ is a trademark of The Power Is Now Inc. “Thepowerisnow.com” is a trademark of The Power Is Now Inc. “The Power Is Now Event Management” is a trademark of The Power Is Now Inc. “The Power Is Now Radio” is a trademark of The Power Is Now Inc. “The Power Is Now Publications” is a trademark of The Power Is Now Inc. “The Power Is Now Radio Guide” is a trademark of The Power Is Now Inc. “The Power Is Now VIP Agent Program” is a trademark of The Power Is Now Inc. “The Power IS Now Power Consulting/Coaching” is a trademark of The Power Is Now Inc. “The Power Is Now Association Management” is a trademark of The Power Is Now Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now Inc. Requests for permission should be directed to: info@thepowerisnow.com

editor’s note Welcome to the New Year!

2016 is finally upon us as the holiday season fades away.

Looking into the New Year we see politics heating up as Trump remains the frontrunner for the Republican candidate and Bernie Sanders climbs the ladder with Hillary Clinton for the Democratic nominee. In the real estate world, homeownership is unfortunately low once again for African Americans in particular, though non-profits like NAREB and CAREB are bolstering programs to relieve economic despair from African Americans.

Technology continues to impress the public as panoramic videos move into the forefront of virtual open houses, changing the way that real estate professionals, buyers, and sellers look at marketing and selling a home. Green technology is also on the rise as green homes gain popularity. Shrinking the utility bill every month while keeping the environment healthier has never been easier!

Within this issue of the magazine is also real estate focuses from across the Orange County area. The best kept secret of Orange County, Dana Point, is featured. This is a fantastic place to “make it” in Orange County.

Find out why within our pages.

As 2015 comes to a close, I cannot help but be grateful for the connections I have made with NAREB and CAREB. Amazing men and women grow and mature these non-profits and look to bring a better future to African Americans in this nation, which is no small feat. Together we will bring a brighter future for homeownership for minorities while interest rates are low and the time is right to buy. I look forward to working with CAREB and NAREB in this exciting new year to inspire change and bolster African American real estate. Even though the future may sometimes look bleak for African American homeownership, I am confident that we will not let the American Dream die.

Let’s get to work in 2016.

Eric Lawrence Frazier M.B.A Editor-in-Chief

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THE PLIGHT OF

AFRICAN AMERICANS

makes regarding household growth and housing preferences over the next fifteen yearThe surge in rental housing is coming. Nearly six in ten of the 22 million new households that will form between 2010 and 2030 will rent, creating enormous pressure on the rental housing market which is already constrained.

Those in the African American community are far too familiar with the struggles of homeownership. A history of redlining and blockbusting has only been compounded by the recent tightening of credit. It seems like African Americans are always under incredible scrutiny, even when they are trying to contribute to their communities by investing in real estate and More suitable rental housing is needed. creating stable futures for their families.

While these struggles are real, they became 1. The surge in rental housing is coming. Nearly six in ten of the 22 million new households even more apparent when the Urban Institute that will form between 2010 and 2030 will issued a report this summer entitled “Headship rent, creating enormous pressure on the rental and Homeownership: What Does the Future housing market which is already constrained.

Hold?� The report was alarming to me as an More suitable rental housing is needed.

African American on many levels, but primarily because of the prediction that African Americans 2. Most of the new households that will form between 2010 and 2030 will be non-white. will continue to lag other ethnicities in rates of From 2010 to 2020, an estimated 11.6 million homeownership. new households will form. Of these, 77 percent of new households will be non-white Here are the five key points that the report

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MESSAGE FROM THE PRESIDENT

(Hispanic, African American, Asian, American Indians and For at least the next 15 years, whether Alaska Natives, and people of multiple or other races. From the economy grows slowly or quickly, 2020 to 2030, 10.4 million the homeownership rate for African net new households will form, 88 percent of which Americans will decrease while the rate will be non-white. Because non-white groups have lower for Hispanics will increase. homeownership rates than whites, these household the 9 million new owners between 2010 formation projections are the main driver and 2030 will be Hispanic; only eleven of the Urban Institute’s homeownership percent will be African American. By forecasts. One-third, or more of the thirteen 2030, the homeownership rate for African million new renters, between 2010 and 2030 Americans will have fallen to forty percent, will be Hispanic. Only one-quarter will be a drop of six percentage points from just white. Almost one-quarter will be African three decades prior. During that same time, American and fifteen percent will be other Hispanic homeownership will increase by racial or ethnic backgrounds. two percentage points.

3. The homeownership rate will decrease for all age groups, except those over the age of I took the five key points of the report out of 75. Total owners will still outnumber total order in order to save number five for last. Go renters throughout the 20-year period, but back and re-read those statistics and try to wrap the homeownership rate will decrease for all your head around them. I cannot. but the oldest age group.

4. The number of senior-headed households To what can we attribute the divergence will increase dramatically. Head of of homeownership rates between African households with people aged 65 and older Americans and Hispanics? The Urban Institute is projected to increase from 25.8 million notes that the Hispanic population is younger, in 2010 to 35.4 million in 2020, and then to and as the economy improves will be of the 45.7 million in 2030. This should come as age range to form families and buy homes. no surprise given the sheer size of the Baby The think-tank also acknowledges that African Boomer generation, the majority of whom Americans were among the hardest hit by the were homeowners. financial crisis, and homeownership rates 5. African Americans will fall further behind rapidly declined compared to those of their white all racial groups in homeownership. The or Hispanic counterparts. African American report states: “For at least the next 15 households lost equity and have struggled to years, whether the economy grows slowly or regain their financial footing. quickly, the homeownership rate for African Americans will decrease while the rate for What is happening to us? Why is it that Hispanics will increase.” The report goes no matter what the economy does, for the next on to state that more than fifty percent of fifteen years African Americans will continue to 11

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MESSAGE FROM THE PRESIDENT

lose ground when it comes to homeownership?

In those fifteen years, my granddaughter will be driving and I will be sixty-eight years old. Odds are that if I do not leave some wealth behind for her, she will be a renter just like the rest of her generation. She will face an incredible housing burden because of the rental market shortage.

She and her classmates will be in a constant battle to find affordable housing and clawing their way to homeownership will be an ongoing fight.

If the Urban Institute’s predictions are true, then how can we turn the tide?

We can start by making homeownership a part of everyday conversations. Too much of the news is focused on rioting, burning our cities, being beaten down in the streets by police, being imprisoned for minor offenses, or dealing with other cases of discrimination. As these stories dominate the headlines, people ignore the plight of African American homeownership. Housing

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is a pathway for most Americans, regardless of color, but especially for African Americans who struggle to build equity and increase earnings over time. Homeownership is a critical way for us to build wealth.

Yet there is no affirmative action in housing, credit, income or education. African Americans are left to figure this problem out by themselves.

Voting power can only take them so far.

Economic and market forces only matter to the extent that systemic racism, discrimination, and burdensome housing policies are addressed.

Otherwise, they will prevent us from moving forward.

As a real estate professional and mortgage banking professional, what can I do? As a citizen of the United States and member of the African American community, what can I do? I am member of most of the black civic and religious institutions and a supporter of many solutions to issues that affect African Americans and people

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MESSAGE FROM THE PRESIDENT

of color, but what can I do to specially address this issue?

At some point, we must stop the decline in African American homeownership and create new pathways to promote an increase. If we don’t, whose fault is it? Who is to blame? Is that the legacy we want to leave for our children?

The ramifications of doing so is unfathomable.

Perhaps more importantly, what is the solution or answer to the problem?

We can explore new mortgage products, demand that banks lend to borrowers with lower credit sores, and even push for programs that allow for no down payments at all. I am not sure what the solution is, but what I do know for sure is that there is no single solution. The answers may not be found in any one of the aforementioned strategies, but we have to figure something out.

We need to begin chipping away at this now for the sake of future generations, for the sake of grandchildren like my own.

not my industry, but me. It will be me that takes to me the promise land, because I am building it with my own hands and not operating in fear or believing those who say I cannot when I say I can. My problem our not your problem, and you should not make your problems mine. Not all of our problems are community problems, because the solutions to whatever issues or circumstances that are stopping us from be our best self and achieving our potential rest with each individual within the community. We must do individually and collectively what we must do to make our individual and collective American Dream a reality.

Keep hope alive! There is no need for the dream of African American homeownership to die.

In the absence of systemic change, we have to rely upon ourselves to create our own destinies.

We must plant a stake in the ground and build wealth by our own individual selves. Nobody will do this for you. Nobody will save you, especially not in today’s bureaucratic, selfserving political atmosphere. There is no modern day Moses who will descend from the mountain top with wisdom to guide you to the land of homeownership. You must rise up and take actions on your own behalf. The power is now!

I too have had my share of problems. I have made my mistakes and I have suffered, but I have no one to blame but me: not the economy,

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Eric Lawrence Frazier, MBA President and CEO

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COMMERCIAL Real Estate Lending Now on the Rise

W

hen the economy crashed in 2008, most of the news stories focused on the impact it had on homeowners. Home values tanked, people lost their jobs, and many found it increasingly difficult to pay their mortgages. Banks responded to the housing market collapse by tightening credit. As a result, many homeowners found themselves underwater on their mortgages and banks refused to refinance. Homes hit the market left and right, and when they could not sell, the foreclosure proceedings began.

Job losses and small business closures were also well reported in the media.

Less commonly discussed, however, were the impacts on the commercial real estate market. The economy contracted and commercial vacancy rates increased immediately thereafter.

The trouble was that businesses stopped growing, and therefore could not sign long-term leases. Commercial real estate is driven by long-term leases. In order for a commercial real estate project to be financed, lenders want a clear understanding of how the loan will be repaid and the repayment is usually based upon the creditworthiness of the major tenants. Lenders consistently backed out of commercial loan deals. In 2013, fifty-

two percent of Realtors reported they had a commercial transaction fail due to a lack of financing (Molony, 2013).

When lenders did finance commercial real estate projects, the loans were often at high interest rates and/or had other favorable loan terms. These loans were often considered risky, and as a result, would were not guaranteed by FHA, Fannie Mae, or Freddie Mac. Fast-forward to 2015. The economy has improved, businesses are stronger and investor confidence has skyrocketed.

Corporations are pulling out of years of sluggish growth and have ramped up expansion plans. By mid-year, commercial loans were preparing to eclipse residential mortgages for the first time since the 1980s (Rudegeair, 2015).

The surge in commercial loan activity can be attributed to a number of factors. First, as the economy improves and companies expand, the demand for commercial real estate grows. “This growth has left primary markets challenged by significant supply constraints, creating a competitive environment for tenants, with higher costs and fewer options,� notes a premier real estate advisory firm (Jones Lang Lasalle, 2015). It is a simple case of supply and demand:

BUSINESS

as vacancy rates decrease, demand increases; as demand increases, so do prices. Higher rental rates mean increased cash flow toward repayment of the loans, and therefore less risk to lenders.

People borrow when they feel they have the capacity to repay debt, and the comfort level of both businesses and consumer is increasing

At the same time, interest rates remain at record lows. Despite ongoing speculation about the Federal Reserve Bank hiking rates, this has not happened to date. Businesses and real estate developers alike are eager to build, expand, and refinance while rates remain low.

James Chessen, chief economist of the American Bankers Association, echoes this sentiment.

“People borrow when they feel they have the capacity to repay debt, and the comfort level of both businesses and consumer is increasing,” he explains. “Borrowing is likely to remain elevated as businesses look to jump-start expansion plans before an expected increase in rates by the Fed later this year (Rudegeair, 2015).”

By some estimates, commercial and industrial loans have swelled by nine percent annually over the past five years (Great Speculations, 2015).

First quarter loan growth was up 8.5 percent this year already when compared to the same period just one year ago. Lending has increased so quickly, and so extensively, that banks are expanding their commercial real estate divisions.

Bank of America, for instance, has increased its commercial real estate team by four percent so far this year, and was planning to increase it by fifteen percent by the end of the year. This comes at the same time as the company has reduced its overall staff by twenty percent in recent years (Rudegeair, 2015).

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Finally, growth can be attributed to investors who are increasingly adding commercial real estate to their portfolios. Institutional investors, real estate investment trusts (REITs), and pension funds are fueling this growth, particularly in the multifamily sector (Burley, 2015).

As long as interest rates remain low and the job market remains strong , so too will the commercial real estate market.

For primary markets like Boston, San Francisco and New York that already face constrained supply, people can expect to see an uptick in new development. Class B and C properties will remain “strategic value plays” for investors in these top-tier cities (Burley, 2015). Adding to the commercial real estate supply will help lower rental rates, which in some cities is now a staggering seventy dollars per square foot. When prices tick down, it will increase the opportunities for less-well capitalized companies to grow.

Meanwhile, as the commercial market expands, expect residential demand to increase too. It is a cycle: more office, more workers, more demand for housing. This is particularly true as Millennials and Baby Boomers move back to the urban core for a 24-7 live-work-play environment.

The growth in primary markets, though, will drive prices so high that many investors will turn to secondary markets like Philadelphia, Denver and

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BUSINESS

The expansion of the commercial real estate market, particularly in urban areas, is exciting. It shows promise for continued economic growth.

Austin. Expect more Class A office space to come online in these cities, which will have a major role in redeveloping these inner city economies.

Another trend worth watching: a redefined retail market (Burley, 2015). Commercial buildings are almost always being built nowadays with ground floor retail. Retail is moving from suburban-style shopping centers to urban,

outdoor and pedestrian-friendly retail.

Municipalities will likely struggle to repurpose the behemoth malls that were once so popular just a decade ago.

The expansion of the commercial real estate market, particularly in urban areas, is exciting. It shows promise for continued economic growth.

At the same time, it is important to remember that real estate cycles typically last about ten years. The last economic downturn was in 2008, so even though investors feel highly confident in today’s market, all are keeping a close eye on the harsh realities that could lie just around the corner.

References • Burley, Peter and David Lynn. “Six Trends in Commercial Real Estate to Watch for in 2015,” Urban Land Institute. 5 January 2015. http://urbanland.uli.org/economy-markets-trends/six-trendscommercial-real-estate-watch-2015.

• Great Speculations. “Q1 2015 U.S. Banking Review: Oustanding Commercial Loan Portfolio,” Forbes. 17 June 2015. http://www.forbes.com/sites/greatspeculations/2015/06/17/q1-2015-u-sbanking-review-outstanding-commercial-loan-portfolio.

• Molony, Walter. “Commercial Real Estate Fundamentals Improving, Lending Tight for Small Businesses,” National Association of Realtors. 28 May 2013. http://www.realtor.org/newsreleases/2013/05/commercial-real-estate-fundamentals-improving-lending-tight-for-small-business.

• “Office Outlook,” Jones Lange Lasalle. 2015. http://www.us.jll.com/united-states/en-us/research/ office-outlook.

• Rudegeair, Peter and Ryan Tracy. “Business Lending by U.S. Banks on the Rise,” The Wall Street Journal. 27 May 2015. http://www.wsj.com/articles/profits-at-u-s-banks-rise-in-1stquarter-1432737016.

• Yun, Lawrence. “Lenders Return to Commercial,” Realtor Magazine. September 2015. http:// realtormag.realtor.org/news-and-commentary/economy/article/2015/09/lenders-return-commercial.

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Frazier Group Realty, Inc. As you venture into the World of Real Estate, we can help you put the pieces together and Naviagate you into Home Ownership

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Frazier Group Realty is the right place. Our Navigators are available to give you personalized service and answer any questions you may have. You can call, email or visit us and we will be there ready to help you every step of the way. Wether you are a first time home buyer or an experienced real estate investor, here at Frazier Group Realty you gain useful information about how to choose the “right” property, and everything involved in making an informed decision in today’s real estate market.

Making Clients for Life

3739 6th Street, Riverside, CA 92501 Office: (951) 686-5261 Fax: (951) 686-5264 www.fraziergrouprealty.com

GREEN

Green Homes A

green home is a dwelling designed to be environmentally friendly and sustainable while also focusing on the efficient use of water, energy, and building materials. Green homes are becoming more prevalent, leading to the emergence and development of green affordable housing. Green affordable housing emphasizes affordability. Most people view the phrase “affordable green homes” as a mere fallacy under the notion that green homes are more costly than traditional homes. Due to lack of specific and clear standards to regulate the construction of green homes, the components of these homes are not specific. Although what constitutes a green home has not universally agreed upon, we can point to certain homes as green homes by closely examining their impact on human life and how they have been built. A green house is remodeled to improve indoor air quality; conserve energy or water; use sustainable, used or recycled materials; and produce less waste material. These green building techniques are associated with moderately high to low cost compared to the conventional building, and thankfully the cost is relatively low in the long run (Costa 1).

Most homes constructed in the modern world do not meet the standards that would make them energy efficient. Real estate developers use the term “green homes” when marketing their listed homes as a way of attracting potential homebuyers. However, if the homebuyers are not keen, they might buy ordinary conventional homes instead of green homes. Luckily there are a variety of green homes made from distinguished quality materials (“From the Ground…” 1):

Earthbag, or Superadobe Home, is one of the most spectacular green homes. It is constructed using nontoxic materials that are readily available locally. They are easier to build and efficient in the provision of great insulation and stability. Short and long sandbags are filled with masses of earth from the construction site and coiled or stalked into perfect layers with strong barbed wire for mortar and extra reinforcement. The homes are then plastered to cover the bags and make unique shapes.

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GREEN

Monolithic Dome Homes are firm and durable.

The R-value of their shell is around sixty due to the concrete thermal mass and unavailability of air or moisture infiltration, regulating the level temperature. This could cut your heating and air conditioning bills in half when the weather takes a turn for the worst. Even with only three inch thick concrete these homes are fire, wind, and earthquake resistant. They do not warp, rot, and are not easily destroyed by pests (“From the Ground…” 1).

Straw Bales Home is an iconic green home. The straw is kept dry particularly at the foundation, tops of walls, and around windows and doors.

Plastering is particularly thorough, and it is recommended to run plumbing outside the bales.

If the moisture is kept below twenty percent, then this house might have an almost indefinite useful life.

Structured Insulated Panels Homes are also impressive green homes. Structured Insulated Panels are fiber cement boards, double sheets of oriented strand board or plywood, which are attached to a layer of slightly expanded polystyrene. These homes have superior insulation and reduced air infiltration. They are quicker to put up and are associated with little waste, which is always a win for the environment.

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GREEN

American Ingenuity (AI) Geodesic Domes are incredible green homes constructed using unique techniques. During construction, triangular panels are arranged in a distinctive way such that they support each other with no framework.

Each panel is ¼-inch wallboard on the interior, R-28 seven inch expanded polystyrene (EPS) insulation in the middle and ½-inch to ¾-inch steel-reinforced concrete on the exterior. Up to an average of thirty-four feet in diameter, the triangular panels are momentarily supported with leaned two by four boards.

After ensuring that all the panels have been correctly positioned, an overlapping steel mesh is perfectly locked with steel C-rings and seams coated with a double layer of concrete mix, then finally primed and painted.

The EPS insulation prevents vapor and air against air infiltration. These homes are free of formaldehyde, chlorofluorocarbons (CFCs), and are not easily destroyed by pests. They are also fire, earthquake, mildew, mold, wind, and snow load resistant (“From the Ground…” 1).This will save you both time and money in your maintenance of your dream home.

Pumice-Crete is a wonderful green home constructed by use of lightweight pumice rock, water, and Portland cement. After creating walls, a concrete bond beam is poured on top for roof connectors and then plastered. The14-inch wall is sufficient to support one to two stories. Pumise-Crete is a natural building material collected in volcanic areas. It uses little cement and does not burn, rot, or get destroyed by pests.

Real estate developers consider it as a good insulator with the bubble pocket. Attractive shapes can be obtained by finishing it with stucco (Costa 1).

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GREEN

Liteblok is a stunning green homemade of Cresco Concrete Products. These products are similar to Pumice-Crete in their formation. Liteblocks are non-toxic, easy to handle, fireproof, wind, earthquake, pest and mold resistant. They are interlocking lightweight concrete blocks that do not need mortar. The homes do not lot or warp easily and can preserve their R-value for a long period, meaning that the home is better insulated against the elements. Their exterior part can be improved by applying thin-set mortar or textured paint (“From the Ground…” 1).

Rastra Panels Homes are made of a composite insulating concrete form.

They are 15% cement and 85% recycled expanded polystyrene. They are considered lightweight and have an R-value of around 48. Strong grid-work is formed by inserting concrete and rebar in the panels’ channels.

Rastra panels are quick to assemble and do not contract or expand easily. They do not wick, rot or hold moisture. They are resistant to fire, earthquakes and are not easily destroyed by pests (Costa 1).

The most affordable green homes are pole houses. They are cheap and easier to build since they do not require excavation and less wood and concrete is used. While these homes are not as natural disaster resistant, they are less expensive and better for a more sustainable Earth.

Investment in green homes is imperative, because the traditional buildings are not energy efficient and experience losses at each stud with their R-value falling below seven. Furthermore, they attract condensation, rot, and mold. Their insulation is prone to sagging and compresses over time.

These non-green homes are not efficient enough to prevent insects and rodents from moving into framed walls. Unlike the traditional houses, most of the green homes are well-insulated and

require smaller, cheaper cooling and heating units that may only need to be supplementary if you intend to use a convective cooling design or passive solar (“Introduction to Green Homes” 34). These homes have a longer useful life and require fewer repairs and minimal maintenance.

Since they can withstand an earthquake, strong winds, and are not prone to fire risks, they are charged a low insurance premium. Insurance can be such a headache, so lowering those costs will save you hundreds and even thousands in the long run. Green homes are among the most habitable homes in the modern world since they promote comfort, health, and can mitigate the effect of natural catastrophes. Go out and invest today, because The Power Is Now!

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FINANCE

Managing Your Way to Financial Freedom “Save a latte a day and by the time you are ready to retire, you will be a millionaire.”

That was among the most important financial advice someone can be given. The point was simple: If you invested roughly three dollars per day starting then, you would reach one million dollars in the next forty-five years. The key ingredient is compounding interest. Managing your money is critical to develop a successful future. Here are five ways to manage your money successfully.

habits, allowing big changes to follow suit.

1. Be sure to track your spending for a month to understand exactly where your money is going. Online banking has made 3. Get a handle on your debt. Debt is a scary it easier than ever to track purchases made with a credit or debit card. All statements are readily available online to view. Some banks even have a built-in tool to tabulate how you spend already—food, entertainment, travel, you name it. Those tools only look at spending from that one account, though. A more comprehensive way to track your money is through a mobile app like Mint (Eler, 2015).

Mint syncs up all accounts to track earnings, spending, saving and budgeting. Each section is intuitively organized to give you a big picture of your finances, including your credit score.

2. Based on your spending patterns, identify where you can cut back. Before

you started tracking your spending, you may have had no idea that you were spending hundreds of dollars on new clothing each month. Now you do. Make a budget and stick to it for three months. Each month, evaluate your projected budget versus your actual budget to see how well you stuck to the plan. If you are consistently unable to adhere to your budget, reconsider that budget after three months and put together a more realistic budget. If budgeting is new to you, start with small changes first. Small changes will lead to better money management

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word, but it is important to know that not all debt is “bad debt.” For instance, a mortgage that you pay on time every month is good debt to have, as this helps build equity over time.

Paying eighteen percent interest a month on frivolous credit card purchases? Very bad debt.

Understand how much debt you have, where it is coming from, and the terms of the debt.

There are two schools of thought. The first suggests that people should pay off the debt with highest interest rates first; the second suggests paying off smallest loans first (regardless of interest rates), as this gives a sense of achievement that leads to better money management habits down the road. Both are viable options; determine which will work best for you.

With interest rates at rock bottom lows, now is also an opportune time to consider refinancing.

While most people consider refinancing their mortgages, you can also refinance student and car loan debt just as easily.

4. Start saving for retirement now.

When you are young retirement seems ages away. Money saved earlier in life will earn you far more money than the same exact amount of money invested later in life.

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FNANCE

Take Susan and Bill, for example.

Susan invests $5,000 annually between the ages of twenty-five and thirty-five (ten years).

Total investment: $50,000. Bill invests $5,000 annually between the ages of thirty-five and sixty-five (thirty years.) Total investment: $150,000. By the time Bill and Susan are each sixty-five years old, Susan’s money will be worth an estimated $602,070 whereas Bill will have only saved $540,741 despite his initially investment tripling Susan’s. That is compounding interest, or interest that accrues to an amount of money that in turn accrues interest itself (J.P. Morgan, 2015).

Conventional wisdom suggests saving anywhere from ten to fifteen of pre-tax earnings for retirement (Pant, 2014). Many companies offer a 401k match. Always take advantage of this option! If you contribute 5% and your employer matches five percent, that is ten percent right there.

5. Save for a rainy day.

While saving for retirement is important, it is equally important to put money aside in an emergency fund.

By some estimates, twenty-nine percent of Americans have no emergency savings (Puzzanghera 2015), the highest level in five years. Yet life is unpredictable. People lose jobs. Cars break down. Medical conditions pop up. Insulate yourself from the unknown by setting aside at least the equivalent of six months of living expenses, which is another reason to understand your monthly expenses and have a budget!

paycheck can lead to long-term financial ruin for those who are unprepared.

One need look back no further than 2008 to see the hundreds of thousands of people who were unprepared for the Great Recession. Unable to pay their bills, more than 7 million Americans lost their homes to foreclosure. Credit scores were ruined and the rate of homeownership has since declined, from a peak of nearly seventy percent in 2004 to a 20-year low of 64.3% today (New York Times, 2014). The trend is worrisome given that homeownership has long been central to Americans’ ability to accumulate wealth and provide financial security through retirement.

Speaking of retirement, many tapped into retirement accounts to stay afloat during the recession. Now, only eighteen percent of people believe they are on track to reach their retirement goals, and the average savings rate is only four percent—well below the ten to fifteen percent recommended average (Carter, 2015). In fact, some have speculated that the economic crises has not disappeared, but rather morphed into a retirement crises (Richtman, 2014) that will have longer-term impacts that are largely being ignored today.

It is high time to adopt a new adage, “You can’t manage what you can’t measure.”

Measure your spending, monitor your budget and manage your way to financial freedom.

The old “ignorance is bliss” adage may apply to many things in life, but personal finances is not one of them. Not knowing where your money is going or living paycheck-to23

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OUR COVER

Eric Lawrence Frazier MBA For this issue of The Power Is Now Magazine the focus will be on Eric Lawrence Frazier in celebration of the New Year. In preparing this January issue of The Power Is Now Magazine, The Power Is Now Team knew that we could find no man or woman that represented the motifs present in this issue of The Power Is Now Magazine better than our own editor-in-chief. The theme of change and preparation for the future is what The Power Is Now and Eric Frazier embodies. His mantra of “We are at our best and we maximize our potential when we act now� transcends the superficiality of the day to day life and goes deeper to motivate and push others to take their lives into their hands and stop procrastinating.

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his can be seen in the many hats that Eric Frazier wears, such as the following: President, CEO, radio host, editor-inchief, sales extraordinaire, real estate broker, a director of the California Association of Real Estate Brokers, President of Orange County Realtist of the National Association of Real Estate Brokers, and the Past President of the African American Association of REO Brokers.

Here we see a man that wants to do all that he can and more in the time that he is given. His power is now.

Eric graduated from Redlands University with an MBA focused in Finance and a BS in Business Administration and Management. This education paved the way for Eric to jump into his own real estate brokerage and mortgage loan operation, and to eventually begin The Power Is Now Inc. The Power Is Now is a multimedia company that specializes in providing information, education, and assistance in all aspects real estate sales, marketing, management, acquisition, rehabilitation and development, as well as residential and commercial lending for consumers and real estate professionals

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nationwide. After beginning The Power Is Now Inc. in 2009, Eric has dedicated himself to better both his community of Riverside, California as well as the nation as a whole as The Power Is Now becomes a nationwide brand. Eric Frazier is constantly growing his businesses to new levels and working to better other businesses and individuals through his lending programs and real estate services.

Eric Frazier is an individual that is constantly working to better his leadership skills. He is humble enough to seek advice from the masters and develop his own style of encouragement, inspiration, and high expectations. He even teaches in the Extension Program on an as needed basis at the University of California, Riverside, though Eric does not feel that this is a job; it is his passion. This passion of educating minds of both the young and old of all races and nationalities is the foundation on which The Power Is Now Multimedia Company was started. He constantly looks to better the lives of not only his family, but all of the families and individuals throughout the United States.

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That being said, Eric has always had a large part in non-profit organizations like NAREB and CAREB, assisting in any way he can to broaden their influence through The Power Is Now and Orange County Realtist Magazine. He looks toward building a greater future for his children and the generations following. Knowing that this can only happen through involvement in nonprofits, Eric utilizes his radio show, The Power Is Now Radio, and his unbeatable charisma to get the new policies of homeownership and other vital policies into the public eye.

In his other business of mortgage brokering, Eric has also found success with his family. With his Real Estate Broker License (BRE 01143484) and NMLS Mortgage License (NMLS #461807), Eric continues to grow Frazier Group Realty, Inc with his wife Ruby Frazier and his daughters. Three of his four talented daughters also have their MBAs in finance. Not only does Eric Frazier have a prosperous professional life, but his personal life as well, with a marriage of over thirty years and the raising of four successful young women.

By putting his concentration and effort into The Power Is Now, he has grown a prosperous business while still retaining his mortgage brokerage, expanding his expertise and utilizing his time to the fullest. Knowing that there are only twenty-four hours in the day, Eric fills them with conference calls, making connections, writing, researching, managing, and inspiring everyone at The Power Is Now to do better than our best, because the power is now!

Everyone on The Power Is Now Team would like to take this moment to thank Eric Frazier for all that he is done in not only starting a fantastic company, but also creating jobs and inspiration for countless team members. Thank you Eric, and we look forward to a prosperous, busy new year.

The Power Is Now Team

january 2016 issue

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JUMBO LOANS WITH 10% DOWN

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Loan Amounts up to $3 Million! * No monthly PMI Fixed-rate and ARM options are available Eligible for primary, secondary and investment properties Name: Eric Lawrence Frazier MBA CA BRE # 01143484 | NMLS # 461807 Website: www.ericfrazier.com E-mail: eric.frazier@ericfrazier.com Skype: frazier.eric Mobile: 714-475-8629 O: 800-261-1634 x 703 F: 800-261-1634

* Restrictions may apply.

Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or www.OCREALTIST.org Theare ORANGE Realtist Magazine 27 is subject to change without notice. All loans data subject to COUNTY credit approval.

Not all loans or products are available in all states.

SBA LOANS Now More Readily Available to Borrowers

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he Small Business Administration (SBA) loan is a program designed to help entrepreneurs improve their business entities, take advantage of the prevailing opportunities, and gain access to financial aid in the form of small business loans. The SBA loan, or Certified Development program, is managed by a federal agency known as the U.S. Small Business Administration. SBA, which was established in 1953, is mandated to aid, counsel, and protect the interests of small businesses. Its main duty includes financing small scale traders for the acquisition of fixed assets such as building, machinery, and real estate. It offers different types of loan programs depending on the financial needs of individual business owners. Since its mission is to boost the growth and development of businesses, SBA distributes loans at discounted rates.

The program requires the loan to be distributed among three parties. The entrepreneur is bound to contribute ten percent; a conventional lender (financial institution) contributes fifty percent while the remaining percentage of forty percent is contributed by the Certified Development Company (CDC). CDCs are nonprofit corporations established under the 504 code to promote economic growth (Green, 2010).

Before entrepreneurs qualify for the program, they are required to meet the SBA’s definition of a small business and must be willing to utilize more than fifty-one percent of the asset’s usage towards its operations within the first year of ownership. If the asset is a newly constructed building, the entrepreneur must use sixty percent at once and be willing to occupy eighty percent.

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The entrepreneur may form a real estate holding company that lease the entire operating business, which then subleases any unused space as long as it is below fifty percent. U.S. residents must hold a majority of ownership of the holding company and the operating companies. As of 2009, the SBA loan is not subject to any ceiling although there are three main criteria for

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from which you can choose:

Implementation of SBA loans has a positive effect on the economy and individuals. The SBA’s main objective is to promote access to credit and offer assistance when disaster strikes or the general credit market freezes. eligibility. The first one dictates that the company’s net income for the preceding two years cannot surpass five million.

Secondly, the company should not have a tangible net worth that exceeds fifteen million.

Lastly, the anticipated project size must exceed the personal, non-retirement, unencumbered liquid asset of the principals or guarantors. The SBA might request significant documentation to analyze the borrower’s credit worthiness and decline to issue the loan if it is poor.

with credit providers. The borrower gets an SBA loan from a financial institution that participates in SBA financing.

Since, the SBA guarantees a percentage of these loans, the lender has more incentives to lend fund to small scale enterprises (Tyson & Schell, 2012). This guarantee increases the banks willingness to lend funds regardless of borrower’s credit criteria; although it does not prevent a thorough review of their credit worthiness. Even with the SBA’s guarantee, some small enterprises might not qualify for SBA loan. The bank lends to applicants with, a solid business plan, good credit worthiness, and collateral. The borrower must also have a demonstrated ability to pay the loan.

Implementation of SBA loans has a positive effect on the economy and individuals. The SBA’s main objective is to promote access to credit and offer assistance when disaster strikes or the general credit market freezes. It facilitates When applying for the SBA liquidity in the marketplace by loan, you are provided with connecting small businesses various SBA loan programs

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The ORANGE COUNTY Realtist Magazine

7(a) Loan Program is a very important SBA loan, which is used to finance a variety of general business purposes.

A guaranty fee is included in the total cost of obtaining the loan. The lender bears the responsibility of paying the guaranty fee but can pass it on to the borrower. The fees range from 0% to 3.5% on loans depending on the amount borrowed. An additional fee of 0.25% on any guaranteed portion that exceeds one million. The loan’s terms of payment are very favorable as the borrower can either choose variable or fixed interest rate arrangement. The maximum rate is composed of an allowable spread and a base rate. When calculating the final rate, lenders add extra spread to the given base rate. The maximum spread for loans with a maturity period that falls below seven years does not exceed 2.25%. A loan with high maturity periods is associated with a maximum spread of around 2.75%, and the repayment of the loan is done on a monthly basis until maturity. The maturity period for a loan granted to acquire real estate, equipment, and working capital are twenty-five, ten and seven years respectively (Green, 2010).

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The CDC, or 504 Loan Program, is also an SBA loan. It is often used to finance the acquisition of major fixed assets such as real estate and equipment.

A fee of around three percent of the debenture is charged, which can be financed with the loan. Interest rates on CDC loans are pegged to an increment above the prevailing five-year and tenyear U.S. Treasury issues’ market rate. It has maturity term of either ten or twenty years (Vance, 2005).

SBA Microloan Program is a short-term loan disseminated through small business concerns such as not-for-profit child care centers. It is not associated with any fee. Its interest range lies between eight percent and thirteen percent and has a maturity period of six years. The terms of an SBA microloan’s repayment vary depending on the amount borrowed and the use of the loan, among other factors. This loan is issued to finance the purchase of machinery, office furniture, supplies, and inventory. They are limited to $25,000 and can be used to boost working capital.

The CAP Lines program is a vital SBA loan limited to $750,000 that replaced the Green Line program. It is issued to meet the cyclical working capital and short-term needs of a small business.

There are several types of loans available under this program.

SBA is focused on implementation of various online programs in an attempt to facilitate accessibility to SBA loans. as real estate, small businesses entities, and individual Americans accelerate the revitalization of communities, job growth, and stabilization of the economy. The growth of the country’s economy depends on the availability of funds and technological know-how to start and manage business entities. SBA plays a key role in the provision of the required funds and technological awareness. SBA loan programs offer a solution to capital limitation faced by commercial real estate investors. The SBA provides counseling and training services to individuals through various programs such as Small Business Development Centers, Business Information Centers (BICs) and Business Information Centers (BICs).

SBA is focused on implementation of various online programs in an attempt to facilitate accessibility to SBA loans. One of the programs is the introduction of electronic filings to reduce application processing time. This will save hours of paperwork filing time to get your money First is the SBA Express program, which where it needs to be. is designed to boost the capital available to entrepreneurs seeking to borrow up to $150,000. The second program is known as SBA’s LINC It is classified under the pilot program, and the program, which is an online platform used number of participating lenders is limited. to link small businesses with SBA lenders.

It is crystal clear that these programs will be Availability of credit to various sectors such successful, because they create a platform that

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enables easy access to SBA’s services. SBA is also coming up with other programs that seek to aid entrepreneurs in various areas In short, SBA programs act as such as the following: international vehicles for economic growth. It expansion and development, lending and investment, disaster acknowledges that properties are assistance, federal procurement contracts, surety bonds, veteran’s scarce assets whose future market assistance, minority small cannot be predicted with certainty. business assistance, business and training, business information, counseling, and research and In short, SBA programs act as vehicles for development. These unique programs are economic growth. It acknowledges that tailored to eliminate barriers to the industrial properties are scarce assets whose future market revolution, economic growth, and stabilization cannot be predicted with certainty. It is thus of real estate market to ensure a productive advantageous to buy properties at the current environment for businesses. The SBA is viewed market price before the occurrence of price as the main provider of advocacy services to escalation. SBA programs fulfill people’s need American small businesses in government. to own properties and invest, regardless of their capital limitations through the issuance of Most entrepreneurs do not make use of SBA favorable loans. SBA loans are associated with loans due to ignorance or lack of awareness. SBA lower down payment and longer repayment loans provided one in ten realtors with funds to terms compared to conventional bank loans for purchase commercial real estate in 2014. Twelve this reason. Most for-profit small businesses are percent of realtors utilized the SBA for resources eligible for SBA loans and are not chargeable to other than loans. The research also indicated that balloon payments. Realtors and other American around eighty percent of these firms had a single investors wishing to acquire real estate should office and two full-time real estate licensees. Most not hesitate in taking advantages of SBA loans. real estate firms with a single office had a median Just be sure to always do your research and take brokerage sales volume of approximately $4.1 a careful look at your finances. million in 2014. It was depicted that five percent of realtors who utilized SBA loan program had applied for the disaster loan. Most commercial realtors were optimistic about the future of their industry. Seventy-five percent of the individuals surveyed expected their profitability to improve over the next year (NAR, 2015). Despite the fact that since they operate as small business owners, it is evident that SBA loans are vital to realtors because they operate as small business owners.

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LEGAL

NEW HUD RULES TO REINVIGORATE FAIR HOUSING LAWS The Fair Housing Act of 1968 was enacted at the height of the civil rights era with the intent to bar racial discrimination and require all government entities to end segregation. Its mandate was to ensure everyone had equal access to housing regardless of race, color, religion, or national origin (NFHA, 2015). However, over the next five decades the American landscape has been largely carved into white-only and black-only enclaves with clear demarcations found in large cities such as New York, Newark, Detroit, Baltimore, Philadelphia, and St. Louis.

As a result millions of minorities have been stranded in poverty without access to

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the opportunities for achieving 2015) followed a June 2015 prosperity.

Supreme Court decision that upheld a key component of the New Rules to Re-Activate Fair Housing Act that allows Fair Housing Laws the government to address “disparate impact” where racial In the summer or 2015, the disparities in housing access Obama administration issued exist, even if they are not linked new regulations designed to put to discrimination. some teeth into a key section of the 1968 Fair Housing Act At the center of the new which has long been dormant. rules and the Supreme Court The new regulations apply decision is a government effort to the section of the Act that to level the playing field for requires the federal government racial minorities that, through to “affirmatively” further decades of exclusionary zoning fair housing, particularly in and racist lending, have been communities deemed to be relegated to pockets of lowheavily segregated. The actions income housing with little taken by the Department access to good transportation, of Housing and Urban better schools and job Development (HUD.gov, opportunities. Although fair-

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housing laws have existed for nearly a half a century, federal enforcement of the laws has been lax due to bureaucratic confusion and a lack of cooperation by local governments (NFHA, 2015). The new rules will provide clarity as well as financial incentives for local governments to more actively pursue the goals of the Fair Housing Act.

To reduce housing segregation, the plans might have to include rezoning communities that primarily serve affluent white people to allow for affordable housing to be built

and other financial incentives will be tied to the Additional Tools and Incentives to Help local governments’ response to the rules.

Local Governments Opportunity to Escape Poverty The centerpiece of the new rules is a database created by HUD that will provide cities and The intent of the new rule, officially named, the counties with historical data that can be used Affirmatively Furthering Fair Housing (AFFH) to analyze segregation patterns. Areas where regulation, is to open the door to poor minorities poor minorities are concentrated are to be to move to more affluent communities with better identified and assessed for their access to quality access to services and educational opportunities. community services, such as good schools and Children who grow up in better neighborhood transportation. Local governments will be with access to better education have a much required to submit these analyses to HUD along greater chance of success (HUD.gov). The with actionable plans for reducing segregation. AFFH is designed to provide local communities To reduce housing segregation, the plans might with the tools to help lift people out of poverty have to include rezoning communities that by providing the same access to opportunity primarily serve affluent white people to allow enjoyed by everyone. for affordable housing to be built (HUD.gov).

This is truly an opportunity that rings true to the The financial incentives for local governments philosophy of The Power Is Now, which is to and housing authorities to advance the goals of act in the present to change your situation for the Fair Housing Act have always been there. But, the better. The escape of poverty begins with there has been little direction from the federal individuals working hard to take advantage of government to help communities to develop new legislation to achieve the American Dream. policies and plans, or to measure their success. You have the power to change your life now, The new rules will provide greater clarity and because The Power Is Now. guidance, beginning with the requirement for local governments to submit analyses and action plans. From this point forward, federal grants

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REAL ESTATE

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REAL ESTATE

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REAL ESTATE MARKET FOCUS:

RIVERSIDE, CA T

he city of Riverside, so named for its proximity to the Santa Ana River, is the largest city and county seat of sprawling Riverside County. It has always been the economic and cultural epicenter of the larger Inland Empire metropolitan area. Located approximately sixty miles east of Los Angeles, Riverside is seen as the western gateway to the San Bernardino Mountains and the Mojave Desert. It is the eastern gateway to the stunning beach cities of Orange County.

For its population of 317,000 in 2015, the city of Riverside is a vibrant melting pot community offering the optimum mix of civic, cultural, and economic opportunities for families and businesses.

To the rest of the country, Riverside’s notoriety stems primarily from its location as one of the University of California

campuses as well as from the historic Mission Inn, which has hosted celebrities, royalty, and presidents for more than a hundred years. Many people are surprised to learn that Riverside (and not the city of Orange) was the birthplace of the massive California citrus industry back in the late nineteenth century.

However, when given a chance to visit Riverside, people will find one of the most ethnically diverse communities in the country made up of Caucasian, African-American, Hispanic, Asian households spread across twenty-eight neighborhoods.

There Is Plenty to Do in Riverside Day and night and throughout the year, Riverside is a bustling area of activity. With a median population age of thirty years old, the city of Riverside packs a lot of culture, activities, and events into its 81.51 square miles.

REAL ESTATE

has no shortage of parks – fifty-four covering more than 2,700 acres. Fairmont Lake is an Three annual events have brought Riverside enormously popular destination for its bike a lot of notoriety. In February, the city adorns trails, picnic areas, and golf courses. itself in a Victorian motif to celebrate the works of Charles Dickens with The Riverside Dickens Golf enthusiasts will relish the many fine golf Festival. Everyone dresses in period costumes courses in Riverside, and they will definitely as they enjoy musical acts, literary workshops, need to try The Oak Quarry Gold Club, which and even an old fashioned pub. In March, the was named the 2013 National Course of the Riverside Airshow draws more than 70,000 Year by the California Golf Course Owners aerial enthusiasts to watch thrilling performers Association. and walk among aircraft displays. Then, in October, the city hosts The Long Night of Arts The College Scene & Innovation which takes place throughout the downtown, showcasing the best of the city’s Most people would not think of Riverside as a science and technology innovations along with college town, but it is home to more than 30,000 university students at U.C. Riverside (21,600), visual and performing arts California Baptist University (8,000) and La Sierra University (2,500). 19,000 students attend Local Entertainment Riverside Community College. Following in the For year round entertainment, the Fox mold of its city host, U.C. Riverside is the fifth Performing Arts Center is host to some of the most ethnically diverse college in the country. biggest musical and comedy acts to come to The U.C. Riverside School of Medicine is the southern California. It is also home to local first new public medical school opened in forty artists and performance groups. There are twelve years and is expected to be a large draw for new performing arts venues throughout the city, and jobs and professionals to Riverside. two of them – the Riverside Philharmonic and the California Riverside Ballet – are nationally Celebrating Riverside’s Economic Resurgence renowned.

The city of Riverside has experienced an economic and cultural resurgence since the The Dining Scene darkest days of the Great Recession and financial Riverside has a very active restaurant scene crisis when it led many California cities in job dominated by Thai, Indian and Italian menus. losses and housing decline. In 2009, as the Local favorites include Bann Thai, Punjab recession was coming to an end, the city and Palace, and Magnone Trattoria & Market. For community leaders came together to lay out a turf and surf lovers, Duane’s Prime Steaks and twenty year strategic vision called, “Seizing our Seafood is considered one of the best (and most Destiny: The Agenda for Riverside’s Innovative expensive) restaurants in town. Or, you could Future.” Around the same time, city leadership dine on sushi and wine next door at 54 Degrees. approved The Riverside Renaissance program with spending of more than $1.6 billion on public facility and building projects throughout Outdoor Fun the city. As it all sits today, the city is well on its For families and outdoor enthusiasts, Riverside way to realizing its objectives.

Annual Events

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REAL ESTATE

In 2012 it was ranked eighth by CBS News as one of the Top 10 U.S. Cities for Job Growth.

In 2014 Forbes ranked it fourth in cities for job growth. In 2013, Forbes also ranked Riverside second in America’s New Tech Hot Spots for its nearly twenty percent growth in high-tech jobs. A large part of the twenty year strategy is to make Riverside a more attractive city for small businesses, which has also paid off with a number one rating in 2014 for U.S. City for Small Business by Inc. Magazine. The best recognition the city has earned has to be its number eight ranking as America’s Coolest City in 2014 by Forbes. The ranking is based on a mix of arts, culture, recreation, and diversity among the twenty to thirty-four year old population. Its ability to attract more young professionals has earned the city a sixth place for the Happiest Place in the Nation for Young Professionals.

All of that is a testament to the vision and commitment of city and community leaders to make Riverside a great place to live and work.

A Rejuvenated Housing Market The one aspect of Riverside’s economy that was hit worst in the financial crisis has benefited greatly by the city’s economic resurgence – the housing market. Although Riverside has not fully recovered from their steep drop in 2008, according to Trulia, housing prices have bounced back nicely to a median price of $334,500 as of December 2015. That represents a 67.2% increase over a five year period. Some of the higher priced neighborhoods include Canyon Crest ($501,220) and Victoria ($584,350), while most of the recent sales activity has been

occurring in the neighborhoods of La Sierra ($360,650), Magnolia Center ($315,399) and La Sierra South ($324,923).

Final Thoughts about Riverside For its proximity to other more expensive southern California communities and with all it has to offer, Riverside is a still a bargain for young families, professionals, and white or blue collar job seekers. Unquestionably, civic leaders have the city moving in the right direction for creating business growth while building stronger community spirit.

So, what is not to like about living in Riverside?

You will definitely hear complaints about the traffic, but then, who in southern California does not complain about the traffic? If you live and work in Riverside, you should not have a problem with traffic; however, if you commute to L.A. or Orange County, you should definitely buy a FasTrak highway toll pass. Also, the entire Riverside County area is known as a smog belt.

There are certain periods during the year when the city’s Air Quality Index climbs above the national average. But, Riverside is not taking it lightly as they have made a lot of headway into air pollution reduction with improvements to its mass transit systems and greater use of natural gas by its city vehicles and bus fleet.

Here you can see that the city of Riverside cares about its community. From the resurgence in housing to the environmental work going on, Riverside is one of the best places in the country to settle down to buy and sell real estate.

by Eric Lawrence Frazier MBA CA BRE: 1980407 NMLS: 1435243

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ECONOMICS

Savings Rates of African-Americans It is hard to save enough when you do not earn enough to save. Nothing could be further from the truth for a statement such as this than it is for African Americans. While AfricanAmerican buying power has indeed crossed the threshold of $1.1 trillion, as of 2015, with more blacks earning college degrees than commonly believed, and more black households reporting an income of $75,000 or more, there are still negative impacts of the recession ringing true for African Americans when it comes to savings, be it personal, for retirement, or just in terms of net worth.

To start with, numerous statistics have found that the average median household income for African Americans is about twenty percent less than the median household income held by the general population. A study released in 2013 by Prudential also found that this group tended to save less than other groups. Prudential

january 2016 issue

found in their study that the median household savings for African Americans was equivalent to $40,000, which does include retirement savings as well. However, it is far lower in comparison to the average median household savings for the general population, which Prudential found to be $97,000.

It was found that forty-five percent of all adultaged African Americans participated in an employer-sponsored retirement plan. This is only 6 percent lower than the fifty-one percent rate of the general population. However, why is this?

One reason studies point to as to why African Americans tend to save less despite their household income rising is family responsibilities.

A staggering forty percent of black households are headed by single women – women with no partner or spouse. This is much higher than the

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ECONOMICS

twenty-six percent rate of female-only heads of household for the general population. Beyond this immediate obligation, Prudential found that thirty-three percent of black households financially support children and or grandchildren who are younger than eighteen years old. It is worth noting that nine percent of this group’s home are supporting parents or grandparents.

When it comes to the general population, studies find that only twenty-five percent support children, while four percent support parents or grandparents.

Debt has a major impact on savings, of course.

Here, African Americans are disadvantaged as well. In 2013, this group was found to have a median household debt of $18,000, which does not include mortgages. However, this is roughly fifty percent higher than the general population.

It is also worth noting that African Americans are also affected more deeply by retirement, considering the group, on average, retires at fifty-six years old. This is three years younger than the general population.

Since the recession, wealth inequality has widened along the racial and ethnic lines. In 2013, the median wealth of black households was found to be thirteen times smaller than that of white households. This is even greater than the rate in 2010, which is where whites had eight times the wealth as black households.

When looking at the Hispanic demographic, white households were found to be more than ten times as much in 2013. However, in 2010, the difference between whites and Hispanics was nine times a difference.

It is interesting to know that the current difference between blacks and whites is at the highest level it has been since 1989. In 1989, whites were found to have a household wealth that was seventeen times that of black households. With

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regards to the difference between whites and Hispanics now, the current level has not been seen since 2001.

It is worth noting, however, that since the “Great Recession� stability in household wealth across the board has declined. Between 2007 and 2010, the average net worth of families in the United States decreased by almost forty percent.

Contributing factors to this can be seen as tightening credit, a declining real estate market, and less confidence in the stock market. Federal Reserve date finds, however, that the median wealth for white households increased by 2.4 percent between 2010 and 2013, which is starkly different when compared to the experiences of black and Hispanic household during the recovery period of the recession.

The Federal Reserve finds that between 2010 and 2013, the median income for minority households fell by nine percent. This is far, far less than the decrease of one percent for white households. In a nutshell, this makes it evident that minority households would have had quite the same opportunity to replenish savings as white households and or these groups had to use their savings for a longer period of time than whites.

There is good news in all this smoke, however.

Many blacks have been found to feel that they are better off now than they were just a few years ago, and certainly many feel they are better off than their parents. There are many factors in the savings rate for African Americans and other groups which are very deep and complex, such as home equity, stock market investments, and retirement savings plan. Nonetheless, African Americans continue to be at a disadvantage, but through the power of education and buying property can make the necessary moves to close these gaps.

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Our board of directors

Successs Money

SECOND VICE PRESIDENT success.money@ocrealtist.org 800-790-0941 ext. 737

Eric Lawrence Frazier PRESIDENT

Kym Thompson

DIRECTOR AND ASSISTANT TO THE PRESIDENT kym.thompson@ocrealtist.org 714-293-2098

Christina Kimble

Ivery Summers

R. Ann Ellis Hall

FIRST VICE PRESIDENT ivery.sells@verizon.net 310-920-3455

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THIRD VICE PRESIDENT christina.kimble@ocrealtist.org 800-790-0941 ext. 705

SECRETARY ann.annellis@gmail.com 626-864-4127

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Our board of directors

Mary Ann Epstein

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