The OC Realtist Magazine June July 2015 by The Power Is Now Media Inc.

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CONTENTS: Mission and Vision of the Orange County Realtist Magazine................(page 7)

CEO CORNER Michael B. Giancola. County Executive Officer of Orange County....(page 14)

THE POWER IS NOW INC. Vol. 01 | Issue 2 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

REAL ESTATE Think Local and Win this Summer Season............................................(page 18) Hot Topic in Today’s Market: Southwest Los Angeles, Inglewood and Compton.................................(page 20) Real Estate Market Focus: Los Angeles.................................................(page 22) Real Estate Market Focus: Orange County...........................................(page 26)

OUR COVER

Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703

Antoine Thompson ..................................................................................(page 30)

Ross Dickens Managing Editor (800) 401-8994 ext. 701 ross.dickens@thepowerisnow.com

Welcome to the Newly Appointed Executive Director of NAREB.......(page 34)

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

to the Water Shortage Problem?.............................................................(page 36)

CONTRIBUTORS Orange County Realtist Research Team

POLITICS FEATURE Could Real Estate Be Part of the Solution

LEGAL California Supreme Court Tackles Affordability in the Housing Market.............................................................................(page 38) What CFPB’s Contentious Policy Means to Banks and How It Can Affect You.............................................................................(page 40)

LEADERSHIP SPOTLIGHT Rusty Bailey..............................................................................................(page 42)

BUSINESS The Milenial Homebuyer.........................................................................(page 48)

CONTENTS: COMMUNITY What Is Property Preservation?.............................................................(page 50)

OC REALTIST SPOTLIGHT

EDITORIAL TEAM Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Ross Dickens Managing Editor (800) 401-8994 ext. 701 ross.dickens@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

Mickelin Burnes-Browne.........................................................................(page 54)

FINANCE Finances of Orange County Leaders......................................................(page 58) The Business of Getting Pre-Approved and Pre-Qualified...................(page 60) The Federal Reserve Rate Hike..............................................................(page 62)

HOMEOWNERSHIP The Art of Staging....................................................................................(page 66) Housing Rights of Orange County Residents as Mandated by the Fair Housing Council of Orange County....................................(page 68)

TECHNOLOGY Could Ezflix be the Real Estate Agentâ&#x20AC;&#x2122;s New Best Friend? .................(page 70)

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: Ross Dickens ONLINE Web Designer: Nicholas Clarkson DESIGN Art Director & Design Manager: Goldy Ponce Graphic Artist: Mario Lujan 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 2013-2015 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

EDITORIAL

Message From the President could be a part of the solution to California’s water shortage problem. Please remember to register for the NAREB conference August 17 to 20, 2015. It is the 68th convention of the National Association of Real Estate Brokers and it will be held in Huston, Texas at the Omni Hotel. NAREB was founded in Tampa Florida in 1947. Their mission is “Democracy in Housing”. The Orange County Chapter of NAREB was founded in August 2010 by Eric Frazier, our President and CEO. For more information about the conference and to register go to www.ocrealtist.org or www. nareb.com.

ur valued Orange County Realtist readers,

Welcome to our mid-year and second issue of The Orange County Realtist Magazine. Our deepest gratitude to all of you for supporting us and entrusting us with your loyalty. Mother Nature has made her presence felt throughout the world and it is at this point I would like to express our Governor’s sentiment in conserving our water resources. Let us wisely use it, our state needs it. We have hotter and warmer months ahead of us. To stay abreast with the latest news on the water situation here in California, please visit http:// ca.gov/drought/.

It is an honor to provide you with trending news in and around Orange County, while keeping you in touch with articles highlighting the rest of the country. As we move forward from natural disasters and violent acts against humanity, let us pause for a moment and think about the beauty that is still abundant in our world. As our publication continues to grow, we would like to encourage you to send your comments, suggestions and constructive feedback to be a better ally in the real estate industry. Our economy is gearing for another change – interest rates posed to rise in September and elections around the corner. I hope we continue to support each other’s endeavors for success and progress.

Our June/July issue of the Orange County Sincerely, Realtist highlights the local government seats of Michael Giancola and Rusty Bailey. We also showcase the real estate expertise of Mickelin Burnes-Browne in our OC Realtist Spotlight. President This issue also presents a look at how real estate

Eric Lawrence Frazier M.B.A

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The ORANGE COUNTY Realtist Magazine

Join NAREB at their 68th Annual Convention. The 2015 convention will be a motivating experience with professional development, training, networking and excitement. Come join us to Refresh, Recharge and Renew your knowledge and educational skills! We will kick off the convention on Monday, August 17th with the Presidentâ&#x20AC;&#x2122;s Welcome Reception at a popular downtown Houston venue and ending on Thursday, August 20th with a black tie event featuring the Installation/Awards Gala and Inaugural Party.

OMNI HOTEL - GALLERIA Four Riverway, Houston, TX 77056 (713) 871-8181

CEO CORNER

Michael B. Giancola

County Executive Officer of Orange County

ichael B. Giancola is presently serving as the County Executive Officer of Orange County. On May 7, 2013, he was appointed for the post by the County of Orange Board of Supervisors. His primary duty is to provide proper leadership and vision, to support and implement the Board policies and to ensure that an efficient, rewarding and responsive manner of operation is adopted for the welfare and modernization of Orange County. Since 2009, Giancola has held the position of Director at Orange County Waste & Recycling and his employment term in OC stands strong with a timeline of more than three decades. According to Shawn Nelson, the Chairman of the Board of Supervisors, Michael’s long run in a career that majorly includes the County represents a personality that has the caliber

of rising from basic entrylevel positions going on to successfully become the head of an organization and handle more than 17,000 employees. At every step, he has always provided proof of having the essential skills, experience and enthusiasm vital for success.

undergone vast expansions at the region’s landfill areas, about three sites. Giancola encouraged a knowledgeable outreach partnership to be set up that has earned the County the Eco Challenge, an award-winning exhibit at the Discovery Science Center.

In his 30 years with OC Waste & Recycling, Giancola has fulfilled many roles and management capacities, such as the first manager of the recycling department and for both the south and central regions; he has likewise served as Deputy Director. During his tenure as the Director at OC Waste & Recycling, many new aspects and developments were achieved. Under his direction, solid waste permits that give the County of Orange long term permission for disposal capacities, have been revised and secured. Opportunities in renewable energy have

In 1977, Michael Giancola started out his career in Orange County as a park attendant at the Mile Square Park. From 1980 to 1985, he was in the United States Navy. Five years after his military service, Giancola returned to the County’s Harbor, Parks and Beaches Departments. In January 1986, he joined the County’s Integration Waste Management Department which has now been renamed as the OC Waste & Recycling.

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Giancola’s education includes his graduation from the Orange County Leadership Academy. He has also earned

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his Bachelor’s of Arts in Business Administration from the University of Phoenix and has served as the President of Southern California Founding Chapter of the Solid Waste Association in North America. Michael Giancola’s annual salary was reported at $245,000 in the employment agreement which was also signed by the Board of Supervisors. This approved agreement specifies a requirement that the candidate would be paying the employee’s share of the normal price of his or her pension benefit along with the entire reverse pick-up pension contribution. Michael Giancola, who is currently at the peak of his career with the highest paying leadership role as County Executive Officer, will be retiring in September which is exactly two years and four months after his appointment. He announced that B. Giancola. because of health issues, he will take this step much earlier than the original date. According to Michael Giancola, it has been an honor, a challenge and a privilege serving as In 2013, Giancola had replaced the former CEO the County Executive Office for the County of Tom Mauk, due to increasing pressure caused by Orange and to be provided with an opportunity to a number of revelations to the primary handling work alongside the Board of Supervisors and the of the Bustamante case. Carlos Bustamante, a County Staff. He strongly believes in the staff, in former County of Orange public works executive part as he has been an associate for the past 30 was accused of sexual abuse. The revelations years and has functioned with them at every level stated that the initial handling of this case had of action. OC not been properly carried out. Finalists which had been recruited nationwide were ditched due to the deficiency in support for the Board of Supervisors. They also denied salary payment. Due to these reasons, the County’s former CEO had to be removed from his job, resulting in his retirement and eventual replacement by Michael

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The ORANGE COUNTY Realtist Magazine

REAL ESTATE

Th i

n Wi

mer S e Sum a is

n o s

ocal an L k

By Bob Corcoran

customers want and need local expertise. The National Association of Realtors says 69 percent of home shoppers start searches with local teams. And Google reports 80 percent of consumers want search results to be customized to their immediate surroundings. The simple truth of the matter is that being a local expert increases your value as an agent. Frankly, it can mean the difference between winning and losing a sale. So how do you become the local expert in real estate? The good news is there are steps you can take to transform yourself into that expert.

hen you travel half way around the world you’re guaranteed to get two 1. Supply useful content – One of the fastestgrowing marketing strategies is providing things: time to think and a sore butt. helpful content. Fill your website and social Fortunately for you in this article I’ll be sharing media posts with information on your farm an item I thought about and not issues of my rear area, the community, housing policies, coffee end. shops, restaurants and bookstores, area meetings, community theater shows, farmer’s To fill you in, I spent a good chunk of February markets and concerts. Think if you were a teaching real estate workshops and seminars in the consumer and you went to your mailbox. land down under – Australia. Simply beautiful. If Inside you found two marketing mailers: One you’ve never been, go. But beware, it’s a 20-hour wishes you a Happy July 4th and the other flight. shares the listing prices of homes in your neighborhood. Which one wins? The answer is Being that far from home made me think a lot obvious. It all goes to a point I’ve been making about, well, home. More specifically, I thought for years – realtors need to see themselves as about the importance of proximity and what’s educators and not salespeople. We’re smack near us. The old saying goes, “All news is local.” dab in the middle of the information age and That’s true because what’s close to us matters that means the public (and your prospects and most to us. On my trip, I learned a lot about clients) want and need useful information. Australians’ real estate issues – the local laws Sure, consumers can get tons of local info on and regulations – items of obvious importance to the internet but that shouldn’t keep you from them because those are the concerns in their own adding your own viewpoint. backyard. This topic of proximity is especially relevant for realtors because the more of a local resource 2. Localize national news – One great way to improve the quality of the information you you are, the better off you’ll be. Why? Because, share, on your website and social media posts, perhaps more than anything, your potential is to learn to localize national news. Every june / july 2015 issue

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day we’re flooded with national stories about what’s happening in real estate. Give them a local slant. When NAR releases housing sales data, localize it for your city. Explain how this relates to local trends, and then you paint yourself as the subject-matter expert. For example, Fannie Mae and Freddie Mac lowered their down-payment requirements and opened the lending door to millions of credit-worthy borrowers. This would have been the perfect time to localize and spread the news about what that means for your city’s residents. Likewise, when the FHA lowered its mortgage insurance premiums in January, again you could have shared the news. A lot of times the public will miss these kinds of news items, so you can fill in the gaps and become the local expert. Keep your antennae up for key national or regional news, and then push it out to your contacts and explain how it relates to them. I also suggest you get involved in your local and state realtor associations – they’re hotbeds of cutting-edge, real estate topics you can impart to the public with a local spin. 3. Partner with local businesses – Become a local expert by knowing the best-area experts in key industries. All local businesses are in the same boat – they need sales. So why not leverage your relationship with vendors. Build and share a list of other pros—attorneys, mortgage brokers, electricians -- even restauranteurs and florists – the possibilities are nearly endless. Establishing these relationships creates a mutual pipeline back to you for future referrals. Just be selective. If they do a bad job, it reflects on you. Think about all the local businesses in your city and then ask this question: What can I do to help those local businesses while promoting my business? Think coupons for your clients and leaving your business cards in their stores. 4. Get active in your community -- Something 19

that will help you stand out with the next generation of home buyers (the Millennials – those born in the 1980s and 1990s) is community activism. This generation is becoming more and more service-minded. Some research suggests that many Millennials prefer brands and companies that play larger roles in their local communities. This is all about getting involved and showing that you are more than just the local real estate expert—you’re a part of the community. Giving back and volunteering your time can boost you or your company’s visibility; also help strengthen your own business skills. Fundraising, promoting charity events or even helping build homes will get your name out there while giving you the chance to sharpen your communication and networking skills. These skills help you provide even better service to your clients. Give back to your local community and reap the rewards of becoming a better Realtor, and at the same time, staying top of mind in your farm area. Let me hear from you. Do you see yourself as a local expert? If not, do you believe it would help your business if you were viewed as one? If so, what’s keeping you from starting today to brand yourself as the go-to-local expert? Please send any comments or questions you have to Article@ CorcoranCoaching.com or www.facebook.com/ CorcoranCoaching. OC Bob Corcoran is CEO of Corcoran Consulting and Coaching Inc. (www.corcorancoaching.com/programs, 800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into Real Estate Companies, Mortgage Companies and Small Businesses. Corcoran Consulting is headed by Bob Corcoran -- a nationally recognized leader, speaker, author, coach and consultant. To find out more about Corcoran Consulting & Coaching, call 1-800-957-8353 or visit us at www. CorcoranCoaching.com

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Hot Topic in Todayâ&#x20AC;&#x2122;s Market: Southwest Los Angeles, Inglewood and Compton

By Dolores Golden

he affordable entry home is a condominium or planned unit development (PuD). However, a few years ago, the Housing and Urban Development (HUD) decided to cancel or stop certifying condominium associations for FHA loan approval, which also kills it for conventional loan approval. Each association would have to re-apply for certification. But, we real estate agents, brokers and appraisers found out the hard way, the owners and most of the Home Owner Associations (HOA) did not know, they were no longer approved by HUD. We, in the field have found out that when a seller wanted to sell, we got a buyer for the property, and they could not get a loan. Some of these Homeowner Associations are in such bad financial states due to many homeowners that were, or are in either foreclosure or short sale status, and had stopped paying their HOA dues. Some of the hardest hit associations are in Compton and Inglewood, in previously affordable areas. The California Association of Realtors is reaching out to help realtors assist the HOAs with information and resources on how to get their association HUDapproved.

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This will help the community get back on their feet and move these properties, a perfect start for a first time homebuyer. Sometimes, a policy that is put in place in Washington D.C. is not good for the survival of low income communities. We, as real estate professionals, need to make sure our local politicians and government keep us informed when there are major changes in policy that can affect the ability to move property which could be due to requiring the consumer to have a large down payment on the property in an economically-disadvantaged area. We have in place major trade groups, both nationally and locally, mortgage brokers, real estate organizations. There should be no reason these groups would not notified of any changes by HUD, therefore the members would be prepared to help the Home Owner Associations, and the homeowners can re-apply in a timely manner. We prefer being proactive rather than reactive. OC

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Real Estate Market Focus:

LOS ANGELES Housing Crises Effect

Home values across the country fell more than 20 percent during the housing crash. Since the Great Recession, national home values have recovered by more than half their losses. Still, home values are 9.3 percent below their previous values recorded at the peak of the housing bubble in 2007. In Los Angeles, home values are 13.8 percent below their previous highs. Home values in both Los Angeles and across the country recovered tremendously in a short time span from the bottom of the market in 2012. While appreciation will continue, it’ll be at a healthier, slowed rate.

If you’re considering moving to Los Angeles, be prepared for steep prices. The Los Angeles metro is an extremely hot sellers’ market with little for-sale inventory and excessive buyer demand. The area is pricey with a median home value of $533,700, well above the national median of $178,700. Regardless, buyers are still competing for expensive properties in this bustling region. Besides the draw of the busy city, buying in the Los Angeles metro is a wise investment as home values continue appreciate. In the last year, The accepted rate for sustainable home values rose 4.5 percent and are predicted to continue to rise home value appreciation is 3 to 5 percent. On a national level, through 2015. annual growth finally slowed to n the narrowed parameters 7.1 percent in the last year, a 4.9 percent in February 2015 – a of the city of Los Angeles, far greater appreciation rate healthy level. In the city of Los the market is far less than home values in the metro Angeles, appreciation cannot competitive with balanced area. Although the market is continue at such rapid rates supply and demand. Buyers anticipated to appreciate further (7.1 percent year-over-year). find more inventory for sale, but within the next year, home Homeowners riding the recent prices are nearly equal to the values cannot maintain such boost out of negative equity greater metro area ($534,600). dramatic growth, indicating should not expect the steep Remarkably though, annual future appreciation will be far appreciation to continue. growth in Los Angeles was less impressive.

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Distressed Properties in Los Angeles

Rents in Los Angeles

All across the country, homeowners struggled throughout the Great Recession. Some lost their jobs and couldn’t afford their mortgages. In turn, these homeowners were forced into foreclosures or short sales. Others fell deeply underwater, owing more on their homes than their properties were worth, and were unable to sell unless they brought cash to the table.

Along with evicted homeowners, millennials are finally moving out of their parent’s homes, competing for rental units with the standard influx of new renters. As rental demand increased, rent prices rose while wages remained stagnant in almost every U.S. market, leading Americans into serious rental affordability crises. The median rent cost in Los Angeles metro is $2,195 while rent in the city is even steeper at $2,330. Nationally, rent costs far less ($1,499) than in Los Angeles but is rising at a slower rate (3.4 percent year-over-year). Rents in Los Angeles increased by 4.9 percent in the last year.

Although the speedy appreciation pulled many homeowners out of negative equity, many still remain trapped underwater. In the U.S., 17 percent of (owner-occupied) homeowners with mortgages remain in negative equity, but 9 percent remain in Los Angeles. Not only are Los Angeles homeowners faring better than the national average, they are closer to escaping negative equity. The percent by which underwater Los Angeles homeowners are in negative equity is 36 percent, almost equal to the nations’ percentage of 38. Those rates suggest homeowners in negative equity aren’t deeply underwater, but aren’t close to escaping either, according to a Zillow report.

If you are shopping for an apartment in Los Angeles, expect to pay 48.2 percent of your monthly income on rent. Builders cannot keep up with the number of new renters, causing fierce competition, enabling landlords to raise prices. Alternatively, a recent survey showed that current Los Angeles renters have more confidence in the housing market than last year and anticipate buying a home in 2015 – freeing up more rental units. Across the country, 5.2 million renters plan The first sign of a foreclosure is mortgage to buy this year which is up from 4.2 million last delinquency, and the percentage of homeowners year. with a mortgage who are late on payments in both the Los Angeles metro (6.3 percent) and city (6.6 Housing Predictions percent) are on par with the country as a whole (6.3 percent). Mortgage delinquency is a result Overall, Los Angeles is recovering at a similar of the Great Recession; many owners depleted pace as the country as a whole. Just as the their savings after losing their jobs, keeping them national market is predicted to slow its home afloat for some time, but extended unemployment value appreciation throughout 2015 (2.6 percent), or emergent bills without the savings cushion led the Los Angeles metro (1.6 percent) and city (2.6 them to post-recession delinquency. Foreclosure percent) are predicted to do the same. pushes more families into the increasingly unaffordable rental market. However, if you can afford to invest in a major metro like Los Angeles you can expect continued appreciation due to the draw of jobs, attractions and city lifestyle. OC

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Real Estate Market Focus:

Orange County

he cost of homes in Orange County and Laguna Beach (-9.6 percent). far exceeds the median cost of homes within the country. U.S. homes are Housing Crisis Effect currently $178,700 while Orange County home values sit at a stunning $616,400. Much of the region boasts waterfront properties or views. Although homes in Orange County are typically listed for more than their final sale prices, all the median values remain steep. However, the county is a vast area with varying home prices; for instance, the median cost of homes in Villa Park is $1,247,700 with much lower values in Laguna Woods at $271,800 – yet all are above the national level. In the past year, home values in Orange County declined -0.8 percent on average. Although that’s almost no change for the year, it’s a significant deviation from the nationwide trend of 4.9 percent. The greater Los Angeles metro home values also appreciated by 4.5 percent throughout the past year. Even though the median appreciation rate in Orange County was negative, some areas such as Stanton (10.2 percent) and Lake Elsinore (9.5 percent) experienced exceptional home value growth. The communities with the most significant depreciation were Coto de Caza (-13.5 percent)

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Figure 1: Zillow Home Value Index as of February 2015

On a national scale, the Great Recession caused home values to drop from their 2007 peak prices to their lowest prices in late 2011 to early 2012. Home values dropped by 20 percent from those pre-recession highs and have since recovered to just 9.3 percent below their peaks. In Orange County, home values followed the same trend but recently fell again, just slightly (as shown in Figure 1). In May 2006, Orange County home values had a median price of $721,000 and

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fell to a trough of $486,000. Recovery led to values steadily climbing back up to original housing bubble figures. But in May of last year, values capped at $627,000 and have since dropped to $614,000. Zillow economists predict home values will remain flat at this price point throughout the year.

Distressed Properties in Orange County Many homeowners who purchased at the top of the market fell underwater on their mortgages when the housing market crashed – meaning they owned more on their properties than they were worth. The only options to escape negative equity are to accept market value from a buyer and bring cash to closing to cover the remaining loan amount, work with the lender to agree to a short sale or stop paying and go into foreclosure. The alternative is to continue paying toward a property that isn’t worth the investment – at least in the short term. In Orange County, 1.4 homes are foreclosed out of every 10,000 homes. The foreclosure rate in Orange County is far lower than the U.S. rate of 3.9 homes (per 10,000). Late mortgage payments are the first step toward foreclosure, and Orange County is beating the national trend in mortgage delinquency, too. Both the country and coincidentally the Los Angeles metro have mortgage delinquency rates of 6.3 percent of all mortgages. In Orange County, just 4.8 percent of mortgages are delinquent and headed to foreclosure.

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REAL ESTATE

Orange County Another positive figure for Orange County residents is only 6.7 percent of its homeowners are underwater on their mortgages. Across the country, the median leaps to a shocking 16.9 percent of homeowners. Nationally, homeowners in negative equity are underwater by 38 percent of their loans, owing an average of $67,797. In Orange County, owners are underwater by 36 percent – essentially the same amount. But, because home values are much higher, these homeowners owe $154,040 to escape negative equity.

median breakeven horizon is just 1.7 years, in line with the national 2.1 years. Newcomers who plan to stay in Orange County for more than 1.7 years are financially better off buying. Because Orange County has such drastic home value variations, the median is far from accurate when applied to some specific areas such as Irvine, Costa Mesa and Newport Beach, with Rents in Orange County breakeven horizons as long as 14 years. In many regions though, the breakeven horizon is below Steep home values make Orange County a more 2 years like the median, including Stanton, challenging location for first-time buyers – Silverado, Anaheim, Santa Ana, Laguna Woods even for affording starter homes. Renting often and others. becomes the better option. However, rents in Orange County aren’t particularly affordable Housing Predictions either, and they’ve increased by 3.5 percent through the past year. The median rent price As mentioned, home values are not predicted to in Orange County is $2,200 per month, well rise within the year and will remain flat instead. above the U.S. average of $1,499. Even Lake There is a significant distance that home values Elsinore, the Orange County region with the will have to rebound before reaching their lowest median rent price ($1,613/mo.), is still pre-recession peaks, especially since settling above the national price; and high-end Newport at a slightly lower but still steep price point. Beach ($4,019/mo.) more than doubles the National appreciation is predicted to slow to a national rate. more sustainable rate throughout the year, 2.6 percent. Rents across the country are anticipated Zillow’s breakeven horizon shows the number of to continue rising for at least another year. OC years it takes for buying to be more cost-effective than renting, breaking even with the upfront costs of purchasing. In Orange County, the

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OUR COVER

AntoineThompson T

he real estate industry is on its way back to a speedy recovery. However, the aftershocks are still rippling through the hearts and minds of the people of America. No matter what their concerns are regarding a future upsurge of the market, the fact remains loud and clear. It is time we left no stone unturned to ensure all safety mechanisms are in place and adequate policies are made. No one wants to see the downfall again. This means all the drivers of the industry as well as political forces are to think and work on the grassroots, and reinforce the foundation of the real estate business across the entire U.S. which involves the interests of all regions, classes and communities. It looks like the National Association of Real Estate (NAREB) has already started working on it.

Many see this as a key step to unite political power with the efforts from the industry towards a great projection towards the future. Mr. Thompson has remained highly active in his support for progressive policymaking to uplift the interests of the African American community throughout his political career. NAREB has been taking its responsibility as one of the most important industry entity for the black real estate professionals very seriously. As an Executive Director, Mr. Thompson will use his expertise in real estate and successful community leadership background to open new horizons of scope for the African-American community. Donnell Spivey, President of the National Association of Real Estate Brokers, while welcoming Mr. Thompson to his new role, has been quoted NAREB recently appointed as saying, Antoine Maurice Thompson, former New York State â&#x20AC;&#x153;Antoine M. Thompson brings Senator and seasoned real enthusiasm, professionalism, estate professional, as the and leadership experience to its new Executive Director. this position,â&#x20AC;?

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Born and raised, in Buffalo, New York, Mr. Thompson is a graduate of a dual degree in History and Afro-American Studies from State University of New York. He also holds an Honorary Doctor of Laws from Medaille College. He is a member of the Alpha Phi Alpha fraternity. Mr. Thompson has a wealth of experience in leadership as he has spent his successful career as a licensed real estate agent in the state of New York. He has served the position of Executive Director at the Office of Urban Initiatives, a corporation dedicated towards community development. Notably, he has authored the fair housing law for the city of Buffalo. His political career includes influential roles in the past such as, a New York State Senator and a Councilmember of the city of Buffalo, Chairperson of the Community Development Committee of the Buffalo Common Council, Co-Chairperson of the New York State Senate Minority and Women Business Enterprise Taskforce, Chairperson of the

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OUR COVER

the Minority and Women Business Enterprise Committee of the Buffalo Common Council, member of Buffalo Economic Renaissance Corporation, a member of the Buffalo Empire and Economic Zone Board, member of Buffalo and Erie County Workforce Investment Board, to name just a few. He is also leading a workforce development program, the Buffalo Employment and Training Center, as its Executive Director. Through his well-established political career Mr. “I am proud that we are adding Mr. Antoine Thompson has certainly proved his mettle as a Thompson to the NAREB family. I believe that worthy leader, of not just the African-American Mr. Thompson will help us to stay the course community, but also for the women, youth and set out in our Strategic Plan in ensuring the other minorities. He has been a strong voice in organization sustainability for the future as support of environmental conservation. Having well as helping us to continue to build on our worked as a Former Chairman of the Senate legacy of being the voice of housing in the Environmental Conservation Committee, Mr. African American community. It is my hope Thompson’s insights for an environmentthat with Mr. Thompson’s leadership we will friendly real estate market is highly called see more everyday Americans with greater for. He has served in various sectors of access to homeownership.” finance, commerce, economic development, small businesses, tourism, recreation, sports And Mr. Thompson acknowledges it with his development, veterans, homeland security and earnest words: military affairs. With the addition of a leader like Antoine Thompson, the industry experts are thinking of taking a moment of relief. It is clear that expectations are huge but so is his promise. Real estate is one of those sectors that touches the lives all the citizens of the state. It also has the power to affect, directly or indirectly, the complete economy of the country. Hence, it goes without saying that, the commands of this high priority industry should go to the safe, experienced, and capable hands of the strategists and leaders like Mr. Antoine Maurice Thompson.

“I

am ready to advocate for fair housing opportunities for African Americans, diversity in development opportunities in our cities and better mortgage and bank lending practices throughout the United States.” OC

This article also appears on our sister magazine, The PIN Magazine, at www.thepowerisnow.com

Andrea Cooksey, NAREB Chairperson, echoes this sentiment:

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POLITICS

THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS WELCOMES THE NEWLY APPOINTED EXECUTIVE DIRECTOR, ANTOINE M. THOMPSON:

“ASSOCIATION STRENGTHENS ADVOCACY” “Antoine M. Thompson brings enthusiasm, professionalism and leadership experience to this position,” states Donnell Spivey, President of the National Association of Real Estate Brokers.” PRESS RELEASE April 17, 2015 For Immediate Release Contact: Michelle Savoy (301) 552-9340 National Association of Real Estate Brokers, Inc. Lanham, MD - April 17, The National Association of Real Estate Brokers (NAREB) proudly announced the recent appointment of Antoine M. Thompson as the Executive Director of the highly regarded trade and professional entity of black real estate professionals. His leadership will bring an innovative approach to working with the increasing demands for support throughout the community. Thompson is the right person to take on this exciting new role as Executive Director. Mr. Thompson will bring his extensive real estate expertise and community leadership background to help further the interests of the NAREB and its responsibility to the African American community.

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“I welcome Antoine M. Thompson to the NAREB team. His professional skills align with NAREB’s vision and needs. I see this as a tremendous addition to NAREB’s advocacy, vision, and the organization’s connection with its members and the community we serve,”

remarked Donnell Spivey, President of NAREB.

“I am proud that we are adding Mr. Antoine Thompson to the NAREB family. I believe that Mr. Thompson will help us to stay the course set out in our Strategic Plan in ensuring the organization sustainability for the future as well as helping us to continue to build on our legacy of being the voice of housing in the African American community. It is my hope that with Mr. Thompson’s leadership we will see more everyday Americans with greater access to homeownership,” stated Andrea Cooksey, Chair of NAREB.

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POLITICS

“I am ready to advocate for fair housing opportunities for African-Americans, diversity in development opportunities in our cities and better mortgage and bank lending practices throughout the United States,” stated Antoine M. Thompson.

Antoine M. Thompson comes with a wealth of leadership experience in the industry having spent his career as a Licensed Real Estate Agent in New York State. He is the former Executive Director of the Office of Urban Initiatives, a community development corporation and he authored the City of Buffalo’s Fair Housing Law. He was also a New York State Senator, city of Buffalo Councilmember and most recent, Executive Director of the Buffalo Employment and Training Center, a workforce development program. Antoine includes the following: Former Chair of the Community Development Committee of for the Buffalo Common Council; the Former Chair of the Minority/Women Business Enterprise

Committee for the Buffalo Common Council; the Former Co-Chair of the NYS Senate MWBE Taskforce; a Former Board Member, Buffalo Empire/Economic Zone Board; a Former Board Member, Buffalo Economic Renaissance Corporation; Former Board Member, Buffalo and Erie County Workforce Investment Board. Thompson is a graduate of SUNY Brockport with a dual degree in History and African and Afro-American Studies. He is a recipient of an Honorary Doctor of Laws Degree from Medaille College. OC

NAREB, was founded in 1947, and has over 90 chapters in more than 34 states. The organization is committed to ensuring sustainable homeownership and “Democracy in Housing.”

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FEATURE

Could Real Estate Be Part of the Solution to the Water Shortage Problem? The state of California boasts of a population rate of 38 million and the eighth largest and one of the most successful economies worldwide. However, 2015 marks the fourth year as a continued issue in the drought calendar. Snowfall and paltry rain have helped little in combating the cynical droughts with January 2015 breaking the record as the driest month since 1895.

The state of California boasts of a population rate of 38 million and the eighth largest and one of the most successful economies worldwide. However, 2015 marks the fourth year as a continued issue in the drought calendar. Snowfall and paltry rain have helped little in combating the cynical droughts with January 2015 breaking the record as the driest month since 1895.

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One might ponder that due to less rain, a wave of conservation would be brought about by now. Think again. Many solutions are being sought out and real estate might be one of the paddles to navigate this crisis. In the wake of the state survey which reported that water consumption escalated during February and March 2015, some Orange County cities may be forced to cut back their water usage by 35 percent. According to the mandates passed by State Governor Jerry Brown, any customer utilizing above 160 gallons per capita per day will cut usage by 35 percent and those retailers who consume below 60 gallons will

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have to cut consumption by 10 percent. The districts in Orange County that are in need of immediate drought strategy include the Serrano Water District -supplier of Villa Park, the East Orange County Water District, the Golden State Water Company -- Cowan Heights, the Newport Beach, La Habra and the Yorba Linda Water District. All these districts would be facing a 35 percent cutback. Only Seal Beach utilizes below 60 gallons of water per capita per day and will have to cut 10 percent consumption. The mandate is expected to reduce usage of urban water by at least 25 percent statewide by February 2016. February of this year witnessed 2.4 percent inflation in the consumption rate of urban water in Orange County cities, some even surpassing the 30 percent mark. According to Felicia Marcus, the Chairwoman of the State Water Resources Control Board, it is high time for California residents to step up as the conditions of this yearâ&#x20AC;&#x2122;s

FEATURE

drought are worse than before. Many areas in Orange County consume at least ten times more water as compared to the other regions. For instance, a sloping landscape in North Tustin houses expanded homes with an average of above seven rooms in each home. Among these, at least 95 percent of the dwellings are homes to single families. On the contrary, Seal Beach contains more than 50 percent houses as multi-family apartments. The rest of the housing stock consists of tightly pack communities. An average of four rooms constitutes every Seal Beach house. The inhabitants used 45 gallons per capita per day and the latter area’s residents utilized 577 gallons. This stark contrast highlights the reason behind a water consumption cutback of 10 percent for the area’s retailers. North Tustin’s retailer, Golden State Water Co.’s Cowan Heights District has been ordered by the state to make a steep cutback of 35 percent on water usage. The utilization rate for multi-family apartments is comparatively lower than the consumption contributed by housing units for single families where each property has landscapes. For instance, Villa Park in Orange County is the only city that consists of a sole unit for each property. At about 45 percent of homes for single families, the city of Seal Beach is next to the lowest percentage. The position of least rate is held by the Laguna Woods, which is mainly made up of the Laguna Woods Village Retirement Community. If an individual utilizes at least 50 gallons on a daily basis, then that water is meant for outdoor activities like gardening, filling and refilling of swimming pools and other maintenance requirements rather than food preparation, drinking and hygiene necessities.

The cities in Orange County that have large districts with high density style apartments and tightly packed neighborhoods along with large lot communities usually nullify the effects of the latter. However, some of the districts in Anaheim, North Tustin and Villa Park have been under constant criticisms for their unusually high rates in water consumption. At about 400 to 550 gallons per capita per day, these districts hold the record as the biggest water consumer in the county. In East Orange County Water District, there are about 30 high density and multi-family units and the entirety of the remaining residences have been constructed on land plots and areas of at least half an acre or more. In a district, an acre can hold up to three or even four people. The lot may consist of trees, gardens, fruits and vegetable patches or pastures. The same area of land may have been utilized for building multi-storied units or apartments for better opportunities in water consumption for all. In order to eradicate drought, the fight does not have to start on a higher level, rather consider a basic level, like oneself. All sums up to a simple rule - the lesser the land utilized, the lesser would there be water shortage issues. OC

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LEGAL

California Supreme Court

Tackles Affordability in the Housing Market On April 8, 2015, the Supreme Court of California heard oral arguments in the case, California Building Association. v. the City of San Jose, S212072. The case states that builders would have to include budget-friendly developments in the housing market. As in the case of most California communities, during the construction of new market value housing, San Jose also defined the requirement of industry groups to include affordable units. However, developers have challenged and sued this law, stating the rule as unconstitutional. The ongoing legal battle affects all those areas and managements who have “inclusionary housing” laws including San Jose, Berkeley, San Francisco and an approximate of at least 170 local governments. The high court of California held arguments in Los Angeles in a case that grades the policy tools presently in effect in areas between Napa and Santa Monica. The test was held as a challenge to the San Jose law case. The

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“inclusionary housing” rule has been on standby for the past five years as it was sued to block by the industry groups. The legal challenge specific to the San Jose law case rules out the requirement for builders to list affordable and market valued housing that is lower than the normal market price on any new projects that are to be carried out in the city. As estimated by the League of California Cities and California State Association of Counties, about 170 local governments have given their support to San Jose in the case. They have also brought to the forefront different versions of the law in effect to promote a wave of improvement in the state’s present shortage of opportunities in affordable housing. This is specifically regarded as an extremely problematic issue in the Silicon Valley and the region surrounding the Bay Area. These local governments and advocates have cheered the law, viewing it as a silver lining towards adoption of new

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or possible increments in the current requirements devoid of any legal limitations. According to Richard Doyle, the City Attorney of San Jose, as an assumption, it was always regarded that these housing options were legal until the San Jose law case. He also highlighted the requirement for affordability in housing. However, the tools like the development money that they were provided with have been removed. The last and also the best hope and path to betterment were these ordinances. The California Association of Realtors has nodded in agreement with the state construction industry which defines that, in the long run, the current ever-increasing housing values would escalate at an even higher pace and legislation as such will only prove as a catalyst. According to the California Association of Realtors, developers will be forced to give the units at subsidized below the original market values to the

LEGAL

new homebuyers. The building industry specifically points out that the San Jose law “takes” the property in an unconstitutional manner and the city has not balanced or even connected the issues of constructing a new housing and the affordability in housing. The industry argues that cities build the case in pushing developers for acquiring payments to hide the effects of latest developments in housing on various aspects such as the city schools and parks; and nothing of the sort has been carried out for affordable housing opportunities. Anthony Francois, a lawyer in the Pacific Legal Foundation and who is also challenging the law, stated that the main point was not if the affordability in housing is something vital to provide to the city, rather it was more about how the city can act from a legal angle.

According to the so called “inclusionary housing” law of San Jose, developers would be required to give 15 percent of units in latest buildings of 20 or above buildings at values lower than the effective market prices. Developers have the option of quitting the construction of affordability units by submitting a fee for the same, which, as quoted by the housing industry, would be rated at $122,000 for every dwelling. Over the years, the law has received different reviews, including the 2012 invalidation of the ordinance by a Santa Clara County judge. However, after a year in appeals court upheld the case therefore causing an intervention by the California Supreme Court. At many points in the past, Napa’s law has been withheld and the Supreme

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Court has issued limitations in reference to their manner of enforcement as a challenge to Palo Alto’s. Affordable housing advocates have warned extreme results if the San Jose’s ordinance is stroked down by the state’s Supreme Court. The Court of Appeals stated that in light of rationality and not serious scrutiny, the exaction of the law holds chances of sustaining as the law was made with the aim of promoting development of budget friendly housing units and not for the mitigation of the market valued housing affects. An ideal spot for these laws, California has been designed to promote below-market housing options on a larger scale of crosssectioned neighborhoods. OC

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LEGAL

What CFPBâ&#x20AC;&#x2122;s Contentious Policy Means to Banks and How It Can Affect You On March 19, 2015, the Consumer Financial Protection Bureau (CFPB) released a policy that will allow customers to post a complaint publicly against any company, product, service or bank. Consumer complaints have been accepted by the CFPB since 2011. However, only a specific portion of required content regarding a complaint and the response was provided by the Consumer Complaint Database. Since its inception, the CFPB has looked over more than 559,000 complaints of which mortgage and debt collection issues hold the majority. The rationale behind this policy is that the narrative may motivate companies to improve their product and service qualities and compete over better customer service with enthusiasm. According to Richard Cordray, the Director of CFPB, consumer narratives assist in highlighting the complete perspective of a consumer behind a complaint. Narratives help in personalizing the many issues faced by consumers in the marketplace.

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He also stated that the new policy will provide empowerment to consumer by advising them on making logical and informal decisions and also by helping them track the latest and authentic trends in the financial and consumer market.

Understanding the Consumer Complaint Narrative Policy The final Consumer Complaint Policy by the CFPB announces the required proceedings and safeguarding steps that are essential in order to publish narratives in the database. If a customer submits a complaint to the bureau, certain fields of information are to be filled out, for instance - who the complaint is to be submitted against, who the consumer is and the time of occurrence as related to the narrative. Consumers are also provided with a text box in which they have to give a description of the event and are allowed to attach documents to their complaint. Once this step is completed, the narrative is then forwarded

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by the CFPB to the bank or company for further response. The consumer is constantly kept updated on the status. They can also track the complaint using a number originated by the CFPB. According to this contentious policy, along with the submission of the complaint to the CFBP, consumers are given an option to check a box and select it for sharing their narration and description. For organizations or companies to learn about the policy, the narration will be refrained from any form of publication for a minimum of 90 days after the publishing of the policy in the Federal Register.

What Does this New Policy Mean to the Consumer? It is a must for consumers to opt-in to be able to share their narration. No complaint narrative lacking informed consent would be published. The CFPB is released from all accountability in these cases. Currently, only online submission of narratives is

LEGAL

available. If a consumer submits a complaint using the website, www.consumerfinance.gov, it is essential to check a consent box as this informs the bureau they have permission to proceed with the publication of the narrative.

Consumers are not obliged to stay until the end, where a resolution may or may not be reached. They have the ability of opting out. If a consumer wishes to cancel the proceedings halfway through in the Consumer Complaint Database, then he is The bureau will remove all personal information allowed to do so. from the complaint. Reasonable steps would be taken to reduce the risk of any link that may Complaints have to fulfill specific criteria to attain result directly or indirectly in disclosure of the position for narrative publication. There are identification. All details referring to names, certain qualifications as required by the bureau contact numbers, emails, account numbers and for publishing a complaint such as: social security information would be thoroughly wiped off. • Submission of the complaint is to be done only via the CFPB website. A list of structured responses will be provided • The complaint should not be a duplicate. to the company. From among these, the public • The consumer and the company should have a facing response has to be selected by addressing confirmed bond. the consumer’s complaint. However, companies will not be pressed for a public response. The All these aforementioned are deemed vital in the timeframe of 180 days will be given to select proceedings. If in case, a single element is not their option as the response. met, the complaint would not be published. OC

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LEADERSHIP SPOTLIGHT

Rusty Bailey T

he 17th Mayor of Riverside is an interesting man: he is the kind of person who is not only widely loved by people, but is also someone who makes an indelible impact on people wherever he goes. There is nothing Rusty Bailey values more than his family, his hometown, and his campaign to make the city a better place to live in and this makes the 42-year-old – amongst the youngest of all mayors of the city – an unstoppable force that could make Riverside one of the best cities of California. Despite being relatively young, Mayor Bailey has some commendable achievements to his name: after having graduated from West Point in 1994 with a degree in Political Science, Rusty Bailey served various public service positions, along with serving time in the U.S. Army, during which he served as a helicopter pilot, a platoon leader, and the Company Executive Officer. His work with the U.S. Department of Housing and Urban Development adds a feather to his already full cap. He also had a brief career in politics while acting as legislative aid for Riverside County Supervisor John F. Tavaglione, while at the same time pursuing his Master’s in Public Policy from UCLA,

after which, upon receiving the Presidential Management Fellowship he worked in the Executive Office of the President. Mayor Bailey was elected into office in 2012. Mayor Rusty Bailey, in serving Riverside, is carrying forth a family legacy of service, with his great-grandfather moving to Riverside in 1914, and building a foundation on farming in a citrus and nut grove. Mayor Bailey’s grandfather – an educator – served in the Navy in World War II, returned to Riverside to teach students, and introduced the audio-visual component in education. But it was Bailey’s father – a judge in the town – with whom Bailey attended public functions, who encouraged him to pursue a career in the public service. Rusty Bailey ran for office the first time while he was in seventh grade, and won, and again in eighth grade, moving on to similar successes wherever he went – be it in Poly High, or in the Army, or now, as Mayor of his hometown. His friendliness and the camaraderie he establishes with people, along with his flair for leadership is his trademark, and something that he seems to have passed on to his daughters.

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LEADERSHIP SPOTLIGHT

During his term, Mayor Bailey has initiated and come up with several ideas to enhance and establish Riverside’s status as the City of Arts and Innovation. In a special interview with The Power Is Now, the Mayor talked about the wireless network system of Riverside, which, with the speedy growth of technology, became redundant within a few years of its installation. In order to make up for that, the city plans on introducing a networking system using fiber optics, thus, making Riverside a more techfriendly and convenient space for the residents. Mayor Bailey’s term in Riverside saw the construction of a state-of-the-art convention center, along with Fox Theater in the city, which now attracts headliners. Moreover, there

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are talks about construction of a sports arena near the convention center, which will allow for more involvement in sports among the residents. The Mayor himself is someone who is interested and involved in sports, being a soccer aficionado himself - a side of his that is evident from the highly promising Mayor’s Cup Soccer Challenge that was his brainchild. It is set to be held in Riverside, with the primary motive being to attract the attention of the residents and gain momentum in the community, and something that could, with proper measures being taken, rise to a global magnitude. Focused on making Riverside a safe and friendly neighborhood for the people, Rusty Bailey is committed towards identifying and efficiently solving the problems that Riverside faces. The Mayor discussed his plans about the measures being taken in order to eradicate homelessness in the city, especially among war veterans. Having been part of the Army himself, the Mayor is sensitive and aware of the problems that the veterans in Riverside face, especially the homeless

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veterans, and aims to provide them with homes by actively involving the residents of the city. Under Mayor Bailey’s guidance, the city of Riverside has responded fairly well to the housing shortage now prevalent in California, with several new projects being either in the stage of pre-development, or pre-construction, and therefore, effectively tackling the issues that rose out of the housing shortage. Showcasing his support for fair housing, the Mayor gave the opening address at the recently concluded Fair Housing Conference at Riverside. Talking about fair housing, the Mayor believes that everybody deserves a place to call home, and a safe place to sleep at night – a belief which is the driving force behind his extensive campaign to eradicate homelessness in the city. From facing a massive financial crisis to having widespread unemployment amongst residents, Riverside has now grown to become a city that is doing its best for job creation among citizens,

LEADERSHIP SPOTLIGHT

while at the same time, making housing affordable for the public, both causes that the Mayor is devoutly committed to. Mayor Bailey has had an incredible effect on Riverside, and his contributions towards making the city a better place to live in earned him a mention in a speech that Michelle Obama made lately – something that the Mayor takes pride in. term. According to Rusty Bailey, “The Power Is Now” translates into a person’s power to make things happen now – something that he wishes to be known for – as the mayor who made things happen, and as part of his five-year term, Rusty Bailey has done just that. He believes that regardless of your profession or your circumstances, a person can make things happen now, and with a year to go, and further plans to run for Mayor’s office again in the future, the Mayor of Riverside has stayed true to his “power is now” statement thus far. One thing he is particularly proud of is the title of the Coolest City in California that was conferred upon Riverside during his

For 42-year-old Rusty Bailey, this is the highest office he will aim for, and, according to him, the best thing that could ever be: he insists that it doesn’t get better than being the Mayor of your hometown – the perks of which include the time it allows for him to spend time with his family. The Mayor is quite the family man: he enjoys spending time with his daughters Elizabeth and Julia, and wife Judy.

towards others, a characteristic that is rather uncommon, Mayor Bailey has brought about changes in Riverside, helping the city, as well as its people grow. Currently in his last year of service, the Mayor plans to run for office again next year, and continue serving his hometown in the same efficient and smart way that is characteristic of him, and here at The Power is Now, he has our absolute support. OC

Rusty Bailey is a man who believes in the potential of his hometown, and to him, the power of leadership – although sometimes strenuous – is something he values and believes in. Aided by a sensitivity and empathy

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BUSINESS

The Millennial

Home Buyer

he Millennials, or the “Generation Y”, are the youngest generation of home buyers. Born during the early 1980s to the late 1990s, they acknowledge that homeownership also represents an essential portion of the American Dream. 2015 has been predicted as the year of maximum purchases by the Millennials. Towards the end of the year, this generation will overtake Generation X, those between the ages of 35 to 55, in occupying the position of the “largest group of buyers”. According to a survey, 43 percent of Millennials said that within next six years, they wish to purchase a home. On the contrary, only 32 percent of Gen X stated the same. However, the present scenario of the millennia depicts a deficiency of home purchasing activities. Some might say due to a lack of interest in homeownership, but the real reason is the delay in marriages and having children. These two are the main aspects that would delay younger Americans

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to purchase that first home. As they mature, they would become leaders with a force to be reckoned with. Reflecting economic profits, the households owned by this generation would experience significant growth. Over the next three to five years, at least two-thirds of household developments will be headed by the millennials. In addition to this, in 2016, approximately 2.75 million jobs would be added and household developments would experience an escalation. These two aspects would be the key drivers for first time buyers and house sales. Over the decades, a majority of all the proceedings by a real estate agent have taken place through the humble telephone. But with the advent of technology, the new era of home buyers have changed their tool of trade. They now prefer to “text” rather than talk. In the contemporary world, most things rely on science. This is where internet comes in. According to the National Association of Realtors, approximately 50 to 65 percent of

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BUSINESS

the younger generation browse for housing service, instant and valid answers to their opportunities via their smartphones. From queries. this category, at least 30 percent finalize their decision to purchase a home they might 5. Mobile Apps have come across. One of the first question they would ask Mobile traffic to real estate applications has would be, â&#x20AC;&#x153;Is there an app for that?â&#x20AC;? They overpowered desktop traffic to websites. survive on their smartphones and instant However, this mode of communication has information on their fingertips. proved a great challenge for Generation X which is older and more experienced. As a 6. Gathering Recommendations result, many alterations are being made and traditional practices are being revisited. Many younger homebuyers approach their How Are Millennials Changing The Real parents for opinions on real estate agents. Estate Trends? Also, they research online, view testimonials and read recent client reviews prior to 1. Call for Call, Text for Text contacting the agent. Communication via an agreed portal is fast and accurate; it may be texting, emailing or calling. It is vital to establish an agentcustomer relationship for better results. To develop an easy and approachable atmosphere, the mode of communication should be clarified upfront. 2. One Step Ahead

The younger buyers approach agents after doing their homework. Usually researching, selecting and listing down their preferences, they control information. Agents only have to interpret that information.

7. Active Social Networking

For todayâ&#x20AC;&#x2122;s generation, a simple social media page with listings will not do. Millennials expect a partnership with constant activity via social media. It is something that would keep them engaged and interested, which also gives them a feel of inclusion in the business. 8. A Broad Minded Horizon

As far as Gen Y is concerned, they would not mind providing any necessary personal information. Unlike older buyers, the millennials would straight away text or 3. No Hidden Terms email their certificates, bank statements, qualifications and other verifications Millennials do not like surprises and wish required in the approval procedure. all aspects to be clear from the first step. They want to be prepared for expectations 9. Affordability at any point and at any time. They prefer to understand the proceedings through Searching for a residence, especially in cities checklists, charts and timelines. according to their budget within the location they prefer, may pose as a challenge. Due 4. Immediate Service to this factor, many younger buyers are adopting the sharing trend by opting for Generation Y expects a parallel partnership rental units. OC in searching a home with quick customer 49

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WHAT IS PROPERTY PRESERVATION?

o the novice real estate professional, they may not understand fully the meaning of certain terms but to the experienced property marketer in the U.S., these terms are used often and have been mastered to some amazing levels. You need to understand the full meaning of the common terms to avoid getting duped or incur unwarranted losses because you did not understand different scenarios under which the terms are used. With the market growing steadily, what may be common today might change in a short while, therefore you need to constantly equip yourself with the required knowledge on any merging terms to have an edge in a competitive real estate market. Property preservation is a term used in reference to a service offered by various companies aimed at securing vacant properties to ensure top notch safety and ascertain they are well-maintained. Companies that deal with property preservation

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aim at ensuring that the property they are maintaining meets the guidelines stipulated in a loan under which a property acts as collateral and that the property complies with the local legislation. These preservation companies focus on providing maintenance and cleaning services on behalf of financial institutions and other lenders for any foreclosed properties. The major reason why many lenders and financial institutions, especially banks, outsource for property preservation companies is because they do not deal with property management. The number of foreclosed properties in the U.S. has been rising and this has increased the demand for property preservation businesses. The services provided by these businesses may vary, including snow removal, securing properties, lawn maintenance and convey maintenance. These services may likewise include some repair and remodeling, mold removal, rehabilitation,

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debris removal and janitorial services. The costs also differ, depending on the range of services to be included in a property preservation package, such as property size and condition. Banks and other financial institutions focus on outsourcing to companies look to be able to keep the properties in a marketable condition. Many banks and financial institutions understand that any property they hold after foreclosure can only remain in sellable condition if they seek for quality preservation businesses to handle the task. When it comes to the current U.S. real estate market, fast turnaround in the case of foreclosed properties is important. The longer a certain property continues to sit in the market, the bigger the additional costs it may accrue and it is not a positive trend for the real-estate market.

There is a need for banks, realtors and financial institutions, who are the major players in an ever-changing real estate market, to outsource for property preservation services to ascertain a fast turnaround on the condition of their property. Property preservation makes the said properties attractive and marketable. A quick search through the internet can help one in coming up with a list of reputable property preservation companies in the U.S. The best way to get live feedback on such companies is by visiting real estate forums. You can never go wrong with such forums. There are various opinions based on services received by lenders, banks and realtors from any property preservation companies. OC

Dive deeper and discover a complete list of solutions at PEMCO-Limited.com

Sample Services Premarket Services Compliance Oversight Due Diligence Vendor Management Closing Facilitation and Management Program and Inventory Marketing Services Sales and Homebuyer Education Property Preservation Property Management Real Estate Sales Facilities Maintenance

OC REALTIST SPOTLIGHT

Mickelin Burnes-Browne L

ooking for some trusted names in real estate? Mickelin Burnes-Browne is one of the few names you must know. Currently working with the Veterans community as a Senior Real Estate Specialist (SRES), she already has quite a lot of feathers to her cap and has almost 23 years of experience in the real estate business. Mickelin believes that the commission she earns as a certified real estate broker comes second to the requirements of her clients. What a noble attitude in the highly competitive world of realtors!

Science degree in Home Economics, emphasis in Housing & Community Services from San Francisco State University. Before working full time in real estate, she used to work as a customer service representative with a subsidiary of Johnson and Johnson. As she was looking for a something that could offer her the joy of relating to people while spending time with her loving family and children, she found a part-time job in a real estate mortgage company. It is where the journey began in the year 1991. It was not long before she exceeded the expectations, not just of the company, but Mickelin Burnes-Browne is the founder of the also of her customers. She worked full time in real estate brokerage and investment firm MBB sales with Century 21 in the spring of 1998. Real Estate and Investment Services, Inc. located in the Berryessa area of San Jose, California. In an exclusive interview for The Power Is Now Her firm serves the greater metropolitan area of Radio, she puts it, San Jose. MBB is a specialist firm representing real estate sellers and buyers in such areas like I progressed to the sales side after talking to Silicon Valley and major hub communities in my broker who owned a Century 21 franchise and around Santa Clara. Besides that, the firm and a loan company. I wanted to continue also services the senior market and honorably working in the mortgage side of the business, discharged veterans. Mickelin always had the ability to connect well with people. She holds a Master of

but he encouraged me to do sales because of my personality, he thought it was a good fit.

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Isnâ&#x20AC;&#x2122;t that impressive?

Mickelin has come a long way since then. She has specialized in several areas of real estate sales. She had a successful tenure as a listing agent dealing with first-time buyers to stepup buyers. She worked for Premiere Asset Management for seven years as an REO broker.

A part of Mickelinâ&#x20AC;&#x2122;s marketing activities involves doing marketing in her church. She conducts citizen outreach programs into the community surrounding her church as well. In her church, she serves and volunteers doing classes in Home Preservation and Financial Literacy and Education. In this context she has been quoted as saying,

Mickelin Burnes-Brown is a licensed agent with the Santa Clara County Association of Realtors, I think the tech tools that our industry the California Association of Realtors and the provides to make us more efficient are great, but National Association of Realtors. As a Realtist there is nothing like one-on-one communication member she is a charter member, founder and to demonstrate love for others and receiving it past President of the San Jose Association of Realtist, famously called SJAOR. SJAOR is back. I have found that the more you give, the a local chapter of NAREB. She is currently a more you get in return. My church members are member of the core committee of NAREB. She like family members and they carry my flag. So is also serving as the Regional Vice President I have a wonderful referral network within my for the Northern California division of the church community. California Association of Real Estate Brokers (CAREB). One of her most recent initiative is Probate sales. This latest market niche of hers allows Mickelin is a certified professional to work her to work all over the state of California where in senior housing scenarios, where she holds she assists with the disposition of real estate to a designation of SRES (Senior Real Estate qualified buyers, sellers and investors. Mickelin Housing Specialist). She also has the Housing is certified with the designation of CPRES Counselling certification from USA Cares to (Certified Probate Real Estate Specialist) and work with the veteran community and she is is listed nationally with USProbateServices. proud of the job she is doing. She not only helps org. She was nominated and selected by her veterans in getting loans for housing but also peers to be the broker of the month for The provides after-sales service. She claims to have Broker magazine, a professional industry trade the most rewarding and personally fulfilling magazine. experience working with the veterans. She considers herself to have been honored to serve those who have served this country so well and brought the freedom to do what we do.

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OC REALTIST SPOTLIGHT

nn To have a family-owned and operated business is one of Mickelin’s goals. Her daughter not only helps her design the graphics for the business but also virtually shadows her in some of the daily business activities. While she considers herself an independent broker, she welcomes service-oriented agents to help her in the business.

Her business philosophy, as she claims, is to stand up to the needs and expectations of her clients with professionalism and integrity as they deserve nothing less. It is the benchmark of her business as reflected completely on her website and all promotional activities. When it comes to the peer competition, she clearly stands out because of her vision. Instead of the usual commercial self-proclamations of being the top agent, she expects to earn that title from her clients through dedication, love and hard work. Despite being a busy person, she adheres to high ethical standards.

negative press for unethical conduct and I challenge myself always to raise the bar for myself and the industry as a whole. I pride myself in working longer and harder than anyone out there to earn your trust and confidence, and your business, not just one time but each time you call on me. I love referrals, therefore, my good name is my business card.

The clarity, honesty and customer obsession that Mickelin Burnes-Browne puts into her business can be witnessed through the mission statement on her website,

“Professionalism, Integrity and Seamless Transactions, You deserve Nothing Less.”

While answering a question about what reason would she give someone who may be looking to buy or sell real estate in her area to call her, her reply was earnest and direct,

My goal is not to be the #1 agent as you see in many of my peers’ advertisements, but rather I want your view of me as YOUR no. 1 real estate professional for buying or selling real estate. I listen to your needs, treating you as though you are my only client - delivering then exceeding your expectations. Recently, in my opinion our industry has received a lot of

This article also appears on our sister magazine, The PIN Magazine, at www.thepowerisnow.com

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FINANCE

FINANCES OF ORANGE COUNTY LEADERS Santa Ana is the primary spot for all Board Meetings where executive discussions are carried out. The supervisors of Orange County are advantaged with an elite lifestyle and numerous remunerative investment opportunities. Starting from a posh neighborhood to gas fabrication and automobile manufacturing, they enjoy a rich array of diversity in amenities, comfort and activities. According to a recently provided report, one member also operates a company that specializes in the manufacture of party cups. In addition to these aspects, some of the members have rewarding incomes via operating various agencies in the investment sector and law firms.

lected by the voters of their respective districts, the five Supervisors of the Board hold an office for a timeframe of four years. They are expected to supervise over proceedings of the government in effect in Orange County and along with specific personnel; they legislatively preside over legal matters in closed sessions at public meetings. The Hall of Administration in

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All the associates representing the Orange County Board of Supervisors are expected to submit their economic choices at the beginning of their office term and also on an annual basis as long as they remain in office. Todd Spitzer, the Board Chairman, elected from the 3rd District and Shawn Nelson, elected from the 4th District, recently provided their annual statements which specified their provincial choices, therefore giving the first clear picture of their interests since these most recent members were elected as supervisors -- Lisa A. Bartlett, holding position as the Vice Chairwoman and elected from the 5th District; Andrew Do, elected from the 1st District; and

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Michelle Steel, elected from the 2nd District.

manufacturing agencies. A salary of above one million dollars was listed from her spouse’s Seal The annual statements display a wide range of Beach law firm. economic interests that would assist in maintaining a source of salary for supervisors. This income Todd Spitzer listed his source of income as the will continue even after they have settled in their Big Bear Lake house that is rented for vacations respective offices at the Hall of Administration for $1,000 to $10,000. He also has investments in at Santa Ana, where they earn an income of Intel, Microsoft, Covideo PLC SHS and a contract $145,000 on an annual basis. Apart from this, with Anaheim located company, Centaurus these Board associates are also advantaged with Financial. He also earned as the Director of a car allowance of $9,180 and excellent health Strategic Realty Trust located in San Mateo, and retirement benefits. The economic filings in the Nicholas Holdings Inc., $500 to $1,000 of current Supervisors Todd Spitzer and Shawn through the Work Comp Central and as a Director Nelson depicted that they had both individually of Legal Affairs for Marsy’s Law. earned above $100,000, courtesy of their dealings in their law firms in 2014. Shawn Nelson has two residences in Santa Ana. The combined worth of these houses is above one Pat Bates, a former Board Supervisor listed her million dollars and they have earned him a rental income anywhere from $10,000 to $100,000. of $10,000 to $100,000. This salary was earned from her spouse’s land planning and architectural firm located in Laguna Andrew Do, current Supervisor listed the Hills, their combined property management Fitzgerald Yap and Kreditor as his income source organization and stocks sold by her through the which is below $100,000. Do also has two Ameriprise Financial and the American Express. residences, a Santa Ana home to which he holds Presently, Bates has investments in eight different ownership since 2002 and a year-old Westminster stocks, such as the General Electric, the Northwest house. Natural Gas, the Citigroup Inc., the Abbott Labs, Johnson & Johnson and the Bank of America. Lisa A. Barlett, present Supervisor listed her real estate agency in Dana Point, namely Blue Water Michelle Steel, current Supervisor and former Realty & Investments as her source of income of representative of the Board of Equalization below $100,000. She also shares ownership of the listed her earnings of up to $10,000 courtesy of party cups company, Etch-It Party; and for 2013, her interest royalty in eight different gas and oil Barlett reported her salary below $499. OC

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The

g n i t t e s of G

s e n i s u B d

e v o r p p Pre-A

and

For a large percentage of people, buying a house is one of the biggest transactions we make in our lifetime, if not the only big transaction. The process of home buying is quite intimidating but can be made easy by following a few simple steps. One of these simple steps is pre-approval and will immensely help you in your quest to purchase a home. Getting pre-approved will even put you ahead of your competition whenever you are ready to make an offer. In some competitive environments, sellers will not consider your offer unless you present to them a pre-approval letter. Being pre-approved for a mortgage shows that a lender or a bank has thoroughly examined your credit history and concluded that you are suitable for a mortgage. The pre-approval letter shows that a lender is willing to give you money. Being pre-approved shows a seller that you are serious about purchasing the house and your proposal should be treated as such. What Getting Pre-Approved Involves

The process of getting pre-approved is quite lengthy, however, the good thing about it is that once the whole process is completed you get to find out whether you have the ability to purchase a house or not. When you approach the financial institution from which you expect to be lent money from, you will have to produce all your financial documents which include tax returns, pay stubs, current credit reports and bank statements which are attached to the mortgage application form.

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d e fi i l a u Pre-Q

The financial institution will then conduct a thorough examination into your finances for them to determine the exact amount they are able and willing to loan you. Once the pre-approval process is over, the financial institution will be able to give you a more solid figure they will loan you. You can then source for homes within this loan amount. The stated amount also enables you to calculate the amount of interest the loan will attract. Getting pre-approved enables you to quickly move into a house once it is identified since the seller will be paid directly by your bank. Pre-Qualification vs. Pre-Approval

Most people tend to think that pre-approval is similar to pre-qualification, however, this is not always the case. They appear similar and can be used for the same purpose, but they are two different things. Pre-qualification involves having a sit-down with a financial institution representative or a lender so that you get an insight on how much money you may be loaned; it is only informational. For pre-qualification, you have to give the financial institution your data, such as assets, debts and income from which they will be able to work out your loan amount and the various mortgage types available to you. Pre-approval holds more weight in the eyes of the sellers as it is based on verified information, is underwritten and requires a credit pull as opposed to a pre-qualification that only relies on estimates. OC

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FINANCE

The Federal Reserve Rate Hike

hrough sure calculations, the Federal Reserve may have to raise its benchmark interest. Peter Boockvar, a chief analyst, discovered that unemployment rates are getting no better and neither is inflation. The unemployment rate and lack of inflation are not the only reasons for this Federal Reserve hike in interest. The economy itself is getting smaller by the day. Annually, the economy is only growing by 2 percent. Even if there were a turnaround, the prediction of growth according to analysts would only be 5 percent. In addition to this, individuals and businesses are not investing like normal. Of course, this is because businesses and investors know the economy is not getting any better. In this yearâ&#x20AC;&#x2122;s second quarter, analysts were sure consumers were going to spend money and thereby cause inflation. The analysts were proven inaccurate. Consumers have not been spending. The economy is going downhill in a perfect spiral. This

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second quarter is going to be the worst in years and maybe even the worst ever. Even with the labor department providing the creation of almost three hundred thousand jobs in April, the overall unemployment rate is on its way to 8 percent. Representatives from the Federal Reserve spoke out and said all they are paying attention to is the unemployment rate rather than the number of jobs being created in a particular month.

The World Weighs In On This Matter There was a recent interview conducted with Michelle Girard, chief economist of the Royal Bank of Scotland. She stated that the Federal Reserve has the right to be cautious when the unemployment rate is as high as we have it. This is because itâ&#x20AC;&#x2122;s hard to get that number down in a decent period of time. It is also possible that the number will not come down at all. Girard also stated that the United States

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central banks should not complain because the Federal Reserve will not raise rates higher than two percent. Not to mention, the interest rate has been at zero for a long period of time. In defense of the central banks, Michelle Girard also gave a good word: with the Federal Reserve raising interest rates, central banks will have no choice but to raise interest rates. This means it will be harder to get a loan, and more people will be foreclosing on their home. Overall, the economy will not get better at all; it could be similar to The Great Depression, but this is the worst case scenario.

However, Roger Altman, of Evercore Partners, has another idea on this matter. He believes the Federal Reserve should wait before raising the interest rate. This is because several states will soon raise the amount of minimum wage. In addition to this, the Labor Department is predicting the creation of many more jobs within the next few months. Roger Altman concluded by stating that investors are going to be sorry they did not invest in the U.S. economy because the economy is due for a change. Many people, especially economists, have agreed with Girard rather than Altman. However, only time will tell in the end.

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Numbers In Favor Of Central Banks

In Summation

NBC recently spoke with Jeffrey Gundlach, founder of Doubleline Capitol. Jeffrey had numbers for NBC, which show that the Federal Reserve will most likely keep the interest rate at zero. Before getting into the numbers, however, Jeffrey described how this interest rate affects everyone. If interest rates do not rise, that is bad for bonds. This is because the rate of bonds will not tighten. Keeping the interest rate at zero, however, will be great for stocks. Stocks will always benefit for a policy that is loose.

There are two sides to this story. Bankers everywhere agree that both sides are correct, to a respect. There are pros and cons to everything, and this includes an economy as well. There are pros with the Federal Reserve raising the interest rate, which have been proven. There are also cons with the Federal Reserve raising the interest rate, which have also been proven. People all over the globe, even those that do not understand the life of the economy, are paying attention to this situation. This is because all of these individuals know this situation will affect their future in one way or another. This situation will affect the entire world in oneway or the other.

Concerning the numbers, corporate investing companies will have to invest more money if the Federal Reserve raises the interest rate. These companies recently had to invest another 0.2%. Although this does not sound like a lot, it raises a general 10-year treasury note up almost ten points, which is around ten percent. Going further, even if corporate companies agree to invest, they could possibly be setting themselves up for failure because nothing is a guarantee even in a perfect economy. This will make corporate companies not want to invest in the U.S. anymore. Jeffrey concluded his interview by stating that it might not be a terrible thing if the Federal Reserve raises the interest rate. Though his numbers are probably correct, Jeffrey wanted to remind the central banks of the old adage be careful what you wish for. In the end, banks might have wished the Federal Reserve did raise the interest rate, at least to one percent.

Economists everywhere are encouraging people not to panic and not to believe everything they hear. This is not something that will happen tomorrow, although it is something that can happen in the near future. Economists are encouraging people to go about their lives and not to worry about this situation because it is something that is out of their hands. Whatever happens will happen, and no one will be able to stop it. One last note: economy analysts have been wrong in the past. With that being said, the economy could sway in a way that no one ever expected, and this could be either good or bad for everyone. TPIN

HOMEOWNERSHIP

The

A r t of STAGIN G If you are planning to sell your house, here are a few tips on how to remove all the red flags, woo your property buyer and get your home sold for the stated selling price - fast. To a potential home buyer, you will basically be selling your home three times: * Once - when they view your advertisement, * Once - when they decide to pass by, * Once - If they like the exterior, then when they enter your home. If you desire a quick procedure and top dollar, a new coat of paint and cleaning may not do the job - and this is where home staging comes in. According to a survey done by The Real Estate Staging Association - a home that has been staged is the one that sells faster. 1. The Entrance This is where you introduce a potential buyer to your home. The welcome porch will form the basis of their first impression through which they would determine the remaining interior of the house. The size of your porch matters least. Make it inviting and attractive by placing a few flower pots and a clean doormat. If there is enough space, place a couple of porch furniture. As evening arrives, switch the porch lights on, in case prospective home buyers pass by. If a potential client is scheduled to visit after sunset, you can use solar lights to illuminate the front walk.

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HOMEOWNERSHIP

2. Enhance Appeal

Master Bedroom: Remove all unnecessary and personal items. The bedroom should give Prior to visiting, most potential buyers prefer to a gender-neutral vibe with clean, neat linens, do a quick pass-by first, usually determining there pleasant artwork and a folded blanket at the end and then whether they should have a look inside of the bed to complete the look. or not. You can try these tips to boost curb appeal: Extra Rooms: Utilize a spare room wisely. Since • Hang house numbers that can be viewed from each room must represent a purpose, reflect on afar. your potential buyer’s choice and turn the room • Mow your lawn or reseed, as needed. into an office, a kid’s room or a guest room. • Add and plant flowers. • Power wash the walkways, front windows 5. Keep the Closets Open and sideways. • Repaint and clean the porch. Clean and arrange the closets. Oftentimes, buyers and visitors would peek inside, so make sure to 3. Cleaning and Clearing leave at least 30 percent space vacant in the closet. This step is the key to a successful staging. Make sure every surface sparkles - from the floor and windows, the closets and cupboards, to the counters and grout. Make more space by removing all the clutter. You may require offsite storage. More space equals more chance of a clean, spacious and shining impression of your home on the potential buyer. However, to maintain a balance you may want to leave a few appealing items like a bowl of lemons near the sink or vases of short flowers.

6. Toys

Dining Room: Avoid keeping a large dining table bare. Make it inviting by creatively styling to enhance the appeal. Down the center of the table, place decorative small vessels in a line.

If your residence is located in a quiet area, place a hammock in the backyard. On the balcony, decorate chairs and a table with a small tray of dishes or flowers on it. Change the settings according to the prevailing season. In summer, add a pool and during spring, keep the plants in beautiful shape in the garden. During autumn and winter, ignite the fireplace for a warm, inviting appeal. OC

Even families with children want to start afresh and placing numerous toys in the kids’ rooms may not be the best option. 7. Bathroom

To make your bathroom appear bigger, swap the cabinet style sink for a simple pedestal sink. See your bathroom from a visitor’s eye. You may want to hang a fluffy, clean white bathrobe instead of Clean the floors properly, steam the carpets and, if darker ones. Ensure the soaps are new, towels are in poor condition, get the wood floors refurnished. spotless and the waste basket is empty. 4. Rooms’ Makeover 8. Staging the Outdoors

Living Room: You may want to place the furniture symmetrically. Avoid pushing the sofas or chairs to the walls. To create an atmosphere of conversation, use furniture in pairs. Use sophisticated and neutral colors like beige or mocha with white to create a rich mid-tone background that would give a neat and inviting look. 67

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H O U S I N G RIGHTS OF ORANGE COUNTY RESIDE N T S AS M A N DAT E D BY

THE FAIR H O U S I N G C O U N C I L O F O R A N G E C O UNTY

ormed in 1965, the Fair Housing Council of Orange Council (FHCOC) collaborates as a private nonprofit agency. Following the Civil Rights Acts of 1964, a consequence of the civil rights movement, the incorporation of the Council was held in 1968. It was the year in which Congress adopted the Fair Housing Act including the extension of civil rights protections to the housing sector. An active and operating member of the National Fair Housing Alliance, the Council is under the governance of a volunteer board of directors along with a fourteen member paid staff.

Laws. The FHCOC works towards fostering richness in culture, diversity and literacy via mediation, comprehensive study options and affordable advocacy. All these aspects are guaranteed to erase all chances of discrimination in housing and to provide services and

those rights to people that can benefit their freedom of choice in housing. The Fair Housing Council has contracted to support all the local governments within Orange County itself to impart justified and equal housing opportunities

Reflecting its mission, the aim of the organization is to value the standard of life in Orange County through fair methods, unhindered opportunities and respectful access to housing, diversity, dignity and human rights by ensuring equal educational choices and enforcing federal as well as state Fair Housing

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HOMEOWNERSHIP

to the inhabitants. The Council presides over more than 250 cases of housing discrimination on an annual basis and also provides fair counseling for landlords, tenants and home buyer HUD which comprises of seminars for first-time homeowners. Other services offered by the Fair Housing Council include equal housing enforcement, default and reverse mortgage counseling.

Federal and State Laws against housing discrimination have been active for the last 35 years which offer protection from such illegal activities if the injustice has been carried out based on specific personal characteristics such as color, creed, nationality, race, gender, faith, religion, handicap and familial status (children). Along with these aspects, the Unruh Civil Rights Act and Fair Employment and Housing Act list the Currently, from all the disputes that arrive in front characteristics as ancestral lines, marital status, of the agency, at least 80 percent of the whole age, source of income and sexual preference. is resolved by the Fair Housing Council which indirectly assists many Orange County tax debtors Housing injustice under the law basically lists, from paying huge amounts during court time but does not limit, various types of activities per annum. In addition to this factor, thousands carried out based on the above points such as of inhabitants are helped to maintain or acquire denial to rent housing; refusing to sell housing; a secure, decent and hygienic residence. The denial to negotiations; providing altered terms United States Department of Housing & Urban and conditions; changed treatment of facilities, Development, the United States Department of amenities and services; treating clients partially Justice and the California Department of Fair for housing; treating residents partially in Employment and Housing along with numerous reference to terms and conditions; giving untrue private attorneys in court, state and federal and fake knowledge regarding the availability of administrative proceedings, have utilized the dwelling for sale or rent; harassing, blackmailing evidence of justified housing violations by the or coercing anyone who is enjoying their rights Fair Housing Council of Orange County. Under under the act; coaxing people for personal gains the governance of the management in effect, all by informing them that people from a certain race those fair housing cases in which the Council was or religion prefer the region, area or neighborhood listed as a party, the organization successfully in which the housing is located; demanding varied prevailed. terms for debts to buy, build, improve, remedy, maintain or repair the residence or impose loans In order to present comprehensive literature to the which are secured by housing; refusing to work community and extend the mission of eradicating with real estate agents or services. and eliminating discriminations meted out in housing, the Fair Housing Council aims to The Fair Housing Act also supports disabled distribute this information for better outlook people. A person who holds a record of any and education on this vital topic. Any kind of physical or mental impairment or has been injustice in the housing sector has been strictly considered to suffer from the same falls under prohibited by the law. Unfortunately, despite the the Act. Disabilities may include AIDS, brain rules, many communities are still encountering disorders, vision and hearing impairments, the issue. However, an individual can become paralysis, etc. OC better informed and spread information to others regarding the laws and ways to reply in case faced by housing injustice by enforcing their rights and improving the quality of life.

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TECHNOLOGY

Could Ezflix Be The Real Estate Agentâ&#x20AC;&#x2122;s

NEW BEST FRIEND?

eleased in September 2014, Ezflix was initially available only on Google Play Store via Android mobiles. On February 4, 2015, RealBiz Media Group announced that this unique mobile application was also accessible via iOS devices on the App Store. Now present on both platforms, Ezflix mobile application advantages its users with an array of functionalities.

sites. Thus, advertising is made easy, quick and efficient. Agents can now post their information on diverse syndication points with the best quality enhancement and streamlining. Ezflix offers vast assistance in video features for distinguishing and marketing purposes to brokers and agents on a budget-friendly and reliable ground. It is the only smartphone app that helps in pre-integrating listings of various properties from MLS. Real estate agents are benefitted with the opportunity to customize and create their preferences based on videos, commercial, neighborhood event clips and other digital content, to provide the best service to potential home buyers.

Rea Biz Media Group, Ezflix was constructed when the company discovered how dejected real estate agents had become due to the fact that most portals and their automated evaluation models would usually present each estate like a commodity. With the help of Ezflix, these agents would now be able to present a visual story with an improved comprehension, bringing into focus all the listings along with the environment and community. In this way, agents can provide a greater presentation and the prospective home buyers receive context supporting the listingâ&#x20AC;&#x2122;s value.

Real estate agents can create videos, share them with a larger level of portals and social networking sites, as well as add information to listings. All this is possible from the convenience of their smartphones. In just With a promise to bring about three basic steps, brokers and a new wave of change in agents are allowed to publish, real estate marketing, Ezflix add and edit any content gives real estate agents the to their Facebook account, power and control to depict Zillow, YouTube channel, According to Steve Marques, a property by following a MLS, Trulia and many other the President and CRO of simple and safe procedure.

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The ORANGE COUNTY Realtist Magazine

TECHNOLOGY

Real estate agents can manage the whole story with just a few clicks and scrolls with their thumb. Ezflix can be used: • for addition of videos to all the agent’s listings; • for enhancement of any listing, through inclusion of small commercials; • for surrounding the listing with videos of local events and neighborhood tours; and, • for publishing the complete digital media to a number of other websites which are utilized by agents for marketing their listings. The Broker Solution in the mobile app can be used by brokerage firms to unlock all the features of Ezflix. Summing it all, a broker can access a variety of opportunities for listings and creation of content players. In addition to this, an escalation in organic Search Engine Optimization is experienced for the office through the app’s streamline of significant digital media that includes itself into the broker’s URL. This advanced feature allows a rich and enhanced authority of domain over time. Ezflix helps in creating a stronger agent and buyer relationship by awarding points to the agents for their successful property marketing skills presentations. A recent survey stated that at least 85 percent of sellers and buyers may want to contact an agent again, but most of them fail to remember the agent’s details, even the name. The Home and Away Club solves this issue by creating significant customer loyalty.

Enterprise clients can also benefit from the powerful Ezflix tool by accepting the opportunity to empower their brokers and agents to improve their listing inventory. It likewise encourages workforce for development of essential and traffic source content either by photography or videos. The videos that have been automatically generated are HD capable. They arrive with a built-in system of a natural human voice. These videos can be generated for more than one million listings. Agents who have downloaded the updated version of the Ezflix app enjoy significantly rewarding enhancement abilities for their listings along with creative videos, upgraded audio and photography. For instance, the special feature that allows inclusion of personal voiceover. OC

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

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

june / july 2015 issue

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

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

The ORANGE COUNTY Realtist Magazine

Edilma Friesen

EXECUTIVE VICE PRESIDENT Edilman.Friesen@ocrealtist.org 949-209-7708 657-900-2066

La Toya James

VICE PRESIDENT OF AFFILIATE latoyajamesrealestate@gmail.com 323-767-6933

Mary Ann Epstein

VICE PRESIDENT OF TECHNOLOGY maryann@realpro.la 909-539-7196

Felsia Dailey

DIRECTOR OF MARKETING fdailey@ocregister.com 714-856-1743

For information about membership and upcoming events please go to www.ocrealtist.org

The ORANGE COUNTY Realtist Magazine