The OC Realtist Magazine November 2018 by The Power Is Now Media Inc.

Novem ber 2 018 Vol. 04 | Iss ue 9

THE ECONOMY OF THE INLAND EMPIRE CONTINUES TO GROW

ROBERT V. “BOBBY” MCDONALD HOUSING AFFORDABILITY ISSUES ACCELERATING IN ORANGE COUNTY

homebuyer’s workshop dunbar real estate group DON DUNBAR, REALTOR ® HOST CALBRE # 01113224 (510) 472-3861 DONDUNBAR322@GMAIL.COM

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ERIC LAWRENCE FRAZIER MBA

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California Learn about the Wealth Gap for Minorities Learn about State of California Housing Finance Agency Programs Learn about Zero Down Payment Programs Learn about buying land & building a home with zero to low down payment Government financing Learn how to buy a 4 unit apartment building as a first time home buyer Learn about partnership strategies to buy your first home with friends and family. Learn about special financing programs for teachers and HUD Home for Sale

WEDNESDAY, NOVEMBER 14

6:00 PM - 8:30 PM

FUSION REAL ESTATE NETWORK

1709 International Blvd # 209 Oakland, CA 94606

The Power Is Now Inc., is a Mortgage Brokerage Licensed by the State of California CALBRE License #1980407 and is not affiliated with any state or federal agency. Go to www2.dre.ca.gov for verification. The Power Is Now Inc., is also licensed by the NMLS License #1435243. Go to www.nmlsconsumeraccess.org for verification. The Power Is Now Inc., is an equal housing lender. Our corporate office is located at: 379 6th Street Riverside, CA 92501. Telephone and Fax: 800-401-8994. Eric Lawrence Frazier, MBA is a California Licensed Loan Originator NMLS# 461807. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. © Copyright 2018 The Power Is Now Mortgage Services A Division of The Power Is Now Inc.

CONTENTS: Residential Real Estate Developments The real estate market is finally getting back to normal? (pg. 8)

THE POWER IS NOW INC. Vol. 04 | Issue 9

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

Housing affordability issues are accelerating in Orange County (pg. 12)

Commercial real estate PCCP funs $128 million for the Orange County office portolio purchase (pg. 16) Is less more in retail investment? (pg. 20) Investment updates: 4th quarter retails investments ins and outs (pg. 28)

On the cover

EDITORIAL TEAM

Robert V. “Bobby” McDonald (pg. 24)

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

Economic Outlook

Daniels George Managing Editor Executive Director of Publishing (800) 401-8994 ext. 712 kim.collier@thepowerisnow.com

The economy of the Inland Empire continues to grow (pg. 32)

Going Green Green in office: Yay or Nay? (pg. 36)

Technology This is what the industrial owners need to know about the IOT (pg. 40)

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

Industry Insights Commercial Bank names new OC president (pg. 44) VIZIO pays $17 million for spying on consumers (pg. 46)

On The Ballots

CONTRIBUTORS Orange County Realtist Research Team

Strong rent control may spread all across the state (pg. 48)

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. The magazine is free and is distributed by email and online to members of our local chapter and NAREB chapters nationwide. Over 30 thousands real estate professionals in Orange County, our state, federal and local city political representatives in each of the 34 cities in Orange County, non-profit housing organizations, church leaders in Orange County, and many affiliates of our chapter -OC NAACP, OC Black Chamber, OC 100 BMOC-and others will receive the magazine. In addition, our own email list of consumers is growing daily through our community outreach. The list will continue to grow due to 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-profit organizations, and community organization that support the welfare of the citizens of Orange County and are affiliates of the OC Realtist.

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The Digital Online subscription launched April and continually provides the best of the Orange County Realtist Magazine in an alldigital 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 American Dream The Orange County Realtist Magazine features articles about real estate in Orange County and informational interviews with local and national community leaders, real estate agents, banking and investment professionals, and community. The Orange County Realtist Magazine also provides consumer focus content about buying and/or investing in real estate, financing real estate and maintaining and protecting real estate as an asset for years to come. The magazine’s focus is on all aspects of buying and/or selling real estate from a consumer’s perspective because it is still the American Dream.

The ORANGE COUNTY Realtist Magazine

Departments 1. 2. 3. 4. 5. 6.

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 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.

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 2013-2017 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

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Editor’s Letter

ear Esteemed Readers,

Thanksgiving is finally here, and Christmas is nipping at our heels. Here at The Power Is Now, we have a lot to be thankful for, mostly your cooperation and support throughout the year. We are excited for what the future holds. I love the holiday season and look forward to spending quality time with my family and friends. Each year around this time, I reflect on all the blessings that I have received in my life and the people who have made 2018 a great year one for us. For a decade now, The Power Is Now is work product of tremendous effort by an awesome team and loyal clients. THANK YOU! The OC Realtist is the official name of the Orange County Chapter of NAREB and we are committed to making sure that the American Dream of homeownership comes true for African Americans. It has been our continuous goal to promote democracy in housing and the dream of Homeownership lives on. Our official sponsor is The Power Is Now, a company that began in 2009 with only one goal: to make the American dream of homeownership a reality for minorities. G Check out the many program the company offers, and if you haven’t signed up for the any one of the company’s many homebuyers workshop, you are missing alot. The design of these workshop has the First Time Homebuyer in mind and therefore, each event The Power Is Now holds or even sponsors, you can be sure that the First Time Buyer will be the focus. Come out and learn much about the down payment assistance program, building credit, budgeting, and so much more. We are excited to bring you another copy of the OC Realtist Magazine, a one of the kind magazine where you will learn alot about Orange County from an African American perspective. In this issue we cover what has been happening in the county from Economic news, to any grassroots movements in the communities. Our cover this month is an extraordinary man, perhaps you’ve heard of him; Robert ‘Bobby’ McDonald, who is the President and Executive Director of the Black Chamber of Commerce Orange County. Mr. McDonald is a Military Veteran champion and also a founding member of the Orange County Sport Hall of Fame. Get to learn more about Mr. McDonald our hero in this issue. Is real estate market getting back to normal after more than a decade of soaring prices? Well, most experts have not had a conclusive answer to this question, but we think the market is be cooling down, which is good news at

november 2018 issue

The ORANGE COUNTY Realtist Magazine

last at last for low to moderate income buyers.! However, what remains in the news is that affordability is still an issue in Orange County. Demand is still high and inventory is still low. The result is that prices are still rising just not at the same pace they were a year ago. With most residents of the county being middle class, housing affordability has affected most of them. In fact, if the issue is not resolved, then we will be accelerating the growing homelessness crisis that current exist in Orange County. Our neighboring county San Bernardino/The Inland Empire has been in the ma jor news become job growth. In the issue we will examine the countyâ&#x20AC;&#x2122;s ecommerce employment growth. Going Green? thatâ&#x20AC;&#x2122;s the question that we delve deeper in this month. With all the healthy benefits and its aesthetic nature, we tell you why going green in the office might be good for your productivity. There is a lot in this issue that you want to read, including the election where we tell you why California landlords and tenants are stuck in a tag of war! There is a little bit of everything in this issue to entertain, educate and to get you on the road to success. The OC Realtist and The Power Is Now would like to take this moment and thank you all for your continued support and readership. Take a moment and share this magazine because there is power in knowledge and The Power Is Now. Have a Prosperous month.

Christina Kimble CEO Orange county Realtist

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RESIDENTIAL REAL ESTATE DEVELOPMENTS

The real estate market is finally getting back to normal?

november 2018 issue

here are two new developments that indicate we are returning to a normal market

LISTING SUPPLY IS INCREASING Both existing and new construction inventory is on the rise after thirty seven consecutive months of declining inventory. Building permits are also increasing meaning new construction is underway after 10 years of new construction at 50 to 60% of normal construction output resulting in the current housing shortage. Housing prices rise and fall on supply and demand. Asthe housing supply increases relative to demand price appreciation slows down. Rising prices and modestly increase mortgage rates have reduced affordability, specifically for the first time home buyers who re discouraged and struggling to buy with so little on sale. What his means is that the sellersâ&#x20AC;&#x2122; market is coming to an end. Bidding wars are unlikely unless the property is in an exclusive market. Sellers have started reducing prices and the buyer pool has started to shrink. The further for sellers is bleak but qualified buyers should get ready because their day is coming and in many markets is already here.

The ORANGE COUNTY Realtist Magazine

BUYERS DEMAND IS SOFTENING Things could change very quickly as rising prices and stagnant wages could make it very difficult for sellers and first time home buyers. The greatest hurdle in the path of buyers is increasing mortgage rates that have increased to the mid 5% to 6% depending on the program significantly higherfrom the previous mid 3% to 4%. The Power Is Now is predicting that we will see 7% interest rates in the 1st Quarter of 1019. . Higher interest rate may stop buyers from buying at all and increase the risk of the economy heading into a recession.

IS ANOTHER HOUSING BUBBLE ABOUT TO POP? Could lower price appreciation, an increase in inventory,price cuts on individual homes and rising interest rates cause a disaster for the U.S real estate. Most housing experts are not worried since there are more checks and balancesin place but we are in unfamiliar territory and no one really knows what is going to happen. If history is going to repeat itself

then we are headed to a recession.

BOTTOM LINE Housing is the largest expense in in the typical household. Our goal is to manage our finances and build wealth. If you were looking to improve he budget at a company you owned, you wouldnâ&#x20AC;&#x2122;t do it by trying to trim the small expenses but by tackling the largest expenses first. The housing market is not falling apart, we are returning to normal market which in the long run and coming years will be much better and easier for you whether you are a buyer or seller. So get ready! Do not become complacent or depressed about your real estate goals. Take action now.

References https://www.keepingcurrentmatters.com https://www.cnbc.com https://www.investopedia.com https://www.realtor.com

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homebuyer’s workshop liberty tax service ERIKAH HENLEY

HOST OWNER OF TAX PREPARATION SERVICES D/B/A LIBERTY TAX SERVICE (415) 361-8588 ERIKAH_HENLEY@LIBERTYTAX.COM

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ERIC LAWRENCE FRAZIER MBA

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SPEAKER | PRESIDENT & CEO CALBRE # 01143484 | NMLS # 461807 OFFICE: 800-401-8994 X 703 WWW.THEPOWERISNOW.COM

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THURSDAY, NOVEMBER 15

6:00 PM - 8:00 PM

LIBERTY TAX SERVICE 131 SUNSET AVENUE, SUITE A2 SUISUN CITY, CA 94585

homebuyer’s workshop CHURCH OF ALL FAITHS CHARLENE NEELY

HOST / BROKER CALBRE # 01235710 MOBILE: 510-435-0648

WITH PASTOR, JEFFREY M. PARKER SR.

ERIC LAWRENCE FRAZIER MBA

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REGISTRATION: WWW.BUYHOMESEMINARS.COM

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SUNDAY, NOVEMBER 18

2:00 PM - 4:00 PM

CHURCH OF ALL FAITHS 2100 5TH AVENUE OAKLAND, CA. 94606

RESIDENTIAL REAL ESTATE DEVELOPMENTS

HOUSING AFFORDABILITY ISSUES ARE ACCELERATING

IN ORANGE COUNTY

he high cost of housing in Orange County might be the biggest problem, as one of three residents move out of the county. Home affordability is at its lowest level. California has many features that attracts residents and Orange County in particular is known for its beautiful state of the art houses, and its population has increased by about 6 million. A disconnect between housing price appreciation and income growth has been the primary drive of affordability issues across the country.

A housing crisis, Why? The median home value in Orange County is $721,200 indicating a upsurge in the home value by 5% over the past year and will rise by 4.1% as Zillow predicts. The median home price currently in Orange County is $785,000 while the median price of homes sold is $710,000. Foreclosures will be a factor affecting the home values in the coming years.

november 2018 issue

Will this be a threat to residents and businesses? Orange County’s top officials are warning that lack of affordable housing threatens the quality of life and upward growth of residents putting the county’s future economy at risk. Orange County residents pay more of their income towards housing, to be more precise 44 percent, according to the statewide housing assessment last year by the State’s housing department. Business leaders, economist and advocates for low-income people have attributed the growing housing shortage to demand for housing much faster than construction. New projects are known to face fallbacks hence directly affecting businesses and residents. The county’s new declaration on housing states clearly that Orange County is experiencing a shortage in housing, creating a negative impact on household budget and quality of life diminishing the country’s workforce. This declaration was adopted on March 13th by the board of supervisors.

Let’s talk hope for the California’s housing Hope you may ask, after the sky scraping prices on the housing, yes! Just may be, there is still some hope left. New ideas can be used to help solve the affordability issue in Orange County.

The ORANGE COUNTY Realtist Magazine

Rent to own: New mortgage products need to be developed to create more paths to home ownership, Galante said. She also said that federal housing finance system should find new ways to increase lending to nontraditional buyers. National renter’s credit: Mortgage interest deduction provided by the federal government to subsidize homeownership has nothing for renters. Galante proposed that the federal government embed in the tax code a credit for renters to certain income level and certain rent level. Streamline approval process: West Hollywood developer Mouchly said affordable housing costs about 33% more to build than the market rate housing due to complexity in financing the houses. New revenue source: Schwartz said that the $75 fee per transaction for record deeds, mortgages and other documents should be resurrected to support affordable housing.

FINAL SAY Affordable housing changes lives, it is essential to help families stabilize their lives, get an education, find better jobs and move up the economy ladder.

THE POWER IS NOW LIVE EVENTS

HOMEBUYER SEMINARS Are you on the path to homeownership? Learn all about our Homebuyer programs at our monthly seminars! • Learn about the Housing Crisis in California • Learn about the Wealth Gap for Minorities • Learn about State of California Housing Finance Agency Programs • Learn about Zero Down Payment Programs • Learn about buying land & building a home with zero to low down payment Government financing • Learn how to buy a 4 unit apartment building as a first time home buyer • Learn about partnership strategies to buy your first home with friends and family • Learn about special financing programs for teachers and HUD Home for Sale

Sources: https://www.globest.com https://www.zillow.com https://www.ocregister.com https://www.voiceofoc.org

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Helping you achieve the American dream of homeownership!

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CALL ME FOR DETAILS ERIC LAWRENCE FRAZIER MBA

CA BRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243

The Power is Now, Inc. is a nationwide, real estate professional, and community-based multimedia and education company founded in 2009 by Eric L. Frazier, MBA, headquartered in Riverside, California. The Online Radio Talk Show, Magazine, TV and events are supported by numerous national and state real estate associations and provides weekly real estate related content to millions of real estate agents and consumers throughout the United States online and by teleconference. The Power Is Now Inc., is also an mortgage brokerage licensed by the state of California, CAL BRE MLO/NMLS License #1435243, and a real estate broketage CAL BRE 01980407 and is not affiliated with any state or federal agency. The Power Is Now Inc., corporate office is located at 3739 6th Street Riverside, CA 92501. Telephone/Fax: 800401-8994. Eric Frazier, is California Licensed Loan Originator NMLS# 461807, and a Real Estate Broker #O1148434.

We have a membership for everyone. From the Buyer and Seller to the Professional Agent and Broker. Website: www.thepowerisnow.com Email: eric.frazier@thepowerisnow.com Mobile: 714-361-2105 Office: 800-401-8994 ext. 703

The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

COMMERCIAL REAL ESTATE DEVELOPMENTS

PCCP funds $128 million for the Orange County Office portfolio purchase

acific Coast Capital Partners LLC (PCCP) is a commercial debt provider and equity capital in the U.S since 1998. It is an established investment organization that invests in capital markets from joint ventures equity to ma jor debts all the while seeking and identifying the best risk-adjusted returns and profits to their investors. This company also invests equity capital in joint ventures and also involves third-parties real estate operators and interested investors. The opportunities in investment include: rehabilitation and redevelopment, physical repositioning, recapitalizing financial structures

november 2018 issue

with impairedness, complex situations and selecting of development opportunities. PCCP also deals with debt financing which include mezzanine and senior loans secured for commercial real estate and these loans fund value -add business plans which may include lease-up loans, loans for construction, vacant buildings loans, loans on repositioned properties in the market. They also deal with discounted payoff loans and discounted note acquisitions among other services. They also deal with permanent loans on stabilized properties in the market.

The ORANGE COUNTY Realtist Magazine

PCCP has recently funded the purchase of an office portfolio in Orange County worth one hundred and twenty-eight U.S dollars($128m). The loan is a joint venture of Lincoln Property Co. and Angelo Gordon for the acquisition of properties which are four in number which are about 540,000 square feet in total. The properties are located in Newport Beach and Irvine, Calif. The properties are two building Redstone plaza which is approximately 181,000 square feet, two-building Newport Summit which is approximately 112,000 square feet, 1201 Dove St. which is approximately 83,000 square foot and three-building Inwood Park which is 163,000 square feet. The two-building Redstone Plaza and 1201 Dove St. are assets located in Newport Beach and the other two are in Irvine, California.

of Eastdil Secured and J.P LeVeque. No more information was acquired from PCCP or Angelo Gordon and Lincoln Property. PCCP was unable to provide more information about the loan and the purchase of the office portfolio while Lincoln Property Co. did not respond to a request for additional information. Angelo Gordon declined to comment or even shed more light about the purchase of the office portfolio or even about the joint venture transaction. Orange County suffers from low unemployment rate and stable net absorption although the office space pipeline is more than enough mostly the properties in Irvine. The average overall vacancy made a rise to about 13.9 percent. This information is according to a Marcus & Millichap second-quarter report.

To take the advantage of the leasing and rent growth in the submarket the partnership is planning to do a capital improvement plan and lease up the remaining vacancy. The portfolio in Orange Countyâ&#x20AC;&#x2122;s John Wayne Airport submarket is occupied by marketing, finance, legal, real estate industries, technology and healthcare tenants. According to Orange County Business Journal, Equity Office Management LLC was the seller and they received $160 million for all the building and this transaction is the biggest office deal in Orange County so far this year. The portfolio is almost eighty-two percent occupied already according to the publication. The financing was arranged by Jonathan Firestone, Greg Stanley

References https://www.cpexecutive.com/post/pccp-funds-128m-foroc-office-portfolio-purchase/ https://pccpllc.com/ http://rebusinessonline.com/pccp-provides-128m acquisition-loan-for-540000-sf-office-portfolio-insouthern-california/

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THE REALTIST YOU CAN TRUST! Serving the city of Vallejo and surrounding areas.

LANISE SPANN CalBRE# 01800507 Direct: 707 297-0398 Office: 800-401-8994 ext 713 E-mail: lanise.spann@thepowerisnow.com

MOVING ON TO YOUR IDEAL PROPERTY?

CALL ME ! U O Y P L E H N I CA NICOLE BURNS Realtor BRE # 01359705 Office: 800-401-8994 x 712 Direct: 323-385-8940 Email: nicole.burns@thepowerisnow.com Website: www.thepowerisnow.com

COMMERCIAL REAL ESTATE DEVELOPMENTS

IS LESS MORE IN W RETAIL INVESTMENT?

november 2018 issue

hen it comes to retail real estate investment it focuses more on quality than quantity hence less is more is sometimes adopted. It is more evident that smaller parcels with more usable space generates more and higher rents in the long run. More investors are shifting their focus to stamina rather than size leading to retail asset disposition late in the economic cycle hence boosting the yields and cap rates. According to Maclellan who is a senior managing partner at Faris Lee Investments which is an Orange County real estate advisory team states that pricing movements are a result of retail investment retreat which is from non- strategic big-box power spaces in secondary markets.

The ORANGE COUNTY Realtist Magazine

foot pad that will be housing some of the best and top QSRs in California. Good things come in small parcels or packages and many people are avoiding big-box retail which has short-term leases compared to smaller retail properties that has longterm leases. Many are willing to buy long-term leases for tenants or smaller which are well-located retail. Real Estate Investment Trust and other big institutions selling their assets are having to incentivize a limited number of investors or wait and pull off the market for better results. Private investors are preferring to invest in favor of security of new smaller construction with corner pads and strong service tenants and food operators. With time, people have moved from trying to maximize the value of land by including much retail gross leasable space as possible into shoppingCentre developments and constructions. For example: in Orange County an owner of a 16,000 square foot vacant building demolished it and built a smaller building that could generate three times the interest compared to the other building and twice as much lease than the 16,000 square foot building. The owner will be soon opening an 8,200 square

There are a number of many older sites that need to be re-tenanted and rethought and taking a hard look at the property and the available competition in the surrounding area. One should look whether the surrounding is too saturated in certain levels or if the area is undeserved. There are many opportunities to create and add value to the property and sometimes it may mean for one to create value one has to start over and come up with a new and different strategy. If the interest is available then the owner can take the risk

The ORANGE COUNTY Realtist Magazine

when a new strategy is lined up. Retail downsizing has been practiced before and it is not a new trend in the market and MacLellan sees e-commerce as making retail more efficient and agile rather than wrecking and destroying retail. The advantages of retail downsizing are way higher compared to a large retail. Retailers realize that they can utilize clicks and bricks and can be more efficient and when the circumstances are right and certain they can develop a right size footprint. With volume decrease there will be an opportunity for investors who understand retail investment better to have expert boots on the ground that really understand the markets they are dealing with and through this they can actually benefit in the longrun. Hence less retail space and high quantity is key when it comes to retail investment and the sooner most retailers figure this the better they can make more in the market.

References http://kiddermathews.com/ articles/2018-09-27-what-qualitymeans-for-western-retail-investment. php https://www.globest.com/sites/ carrierossenfeld/2017/04/26/ rethinking-retail-space-less-ismore/?slreturn=20180926064414 https://www.globest.com/2018/10/02/ is-less-more-in-retail-investment/?slr eturn=20180926064412

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Ready to buy or sell?

Let me help you! LEON TOWNSEND III MBA, Green and Notary Public DRE # 01979416 Phone: (800) 401-8994 x 733 Direct: (626) 372-9374 Email: leon.townsend@thepowerisnow.com Website: www.thepowerisnow.com

WANT TO BUY OR SELL?

IF YOU WANT A REALTOR WHO WILL GO ABOVE AND BEYOND FOR YOU WHETHER YOU’RE A BUYER OR SELLER LOOK NO FURTHER. I WORK HARD SO YOU DON’T HAVE TO!

Alexandra Trefry

REALTOR BRE # 01987453 (800) 401-8994 x 753 (707) 494-2028 alexandra.trefry@thepowerisnow.com

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ON THE COVER:

ROBERT V. “BOBBY” MCDONALD

ROBERT V. “BOBBY” MCDONALD Bobby McDonald is the President and the Executive Director of the Black Chamber of Commerce of Orange County. He is also a founder of the Orange County President’s Council and a Pioneering member of the Orange County Sport Hall of Fame.

LEADERSHIP AT BLACK CHAMBER OF COMMERCE Under his leadership at the Black Chamber of Commerce of Orange County, Bobby has helped organization partner consistently with minority business associations, local chambers an legislators to provide for the county’s many small business owners. Bobby is an effective, personable, business and community leader, accomplished sales marketing and promotional forerunner and a notable speaker, writer, author and historian.

PIONEERING EDUCATIONAL PROGRAMS McDonald developed the Chamber’s educational outreach programs, including the Bricks and Bridges Program and the Martin Luther King Jr. Scholarship Program with the Christ Our Redeemer AME Church in Irvine, Alpha Phi Alpha Fraternity, Inc. and the Volunteer Center of Orange County. The main objective of the program is to provide guidance and educational programs and scholarship to youth of Orange County in order to achieve academic and vocational successes; and to develop and provide educational and scholarship needs for military veterans, with support to achieve academic and vocational successes along with career technical education and business and workforce investment assistance opportunities. The education foundation started by Bobby works with the community leaders and corporate partners to create economic opportunities that build strong nation that embrace diversity, equity and opportunity. Currently, McDonald is a member of the PBS SoCal Board of Trustees. Here, McDonald has assisted with the Historic African American PBS Presentations such as “The March at 50” and “The African Americans, Many Rivers To Cross.”

HIS HONORS AND ACHIEVEMENTS Since his arrival in Orange County, over three decades ago, Bobby has been committed to the values of personal integrity and opportunity. For this, he has

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been recognized and awarded with many honors which include the Human Relations Leadership Award from the Orange County Humans Relations Commission. He has also been named as the Dr. Martin Luther King Jr. Millennial Man of the year and the distinguished Alumnus Award from the Cal State Fullerton, where he has been President of the CSUF Alumni Association.

fellow Board Member and Veteran, created the California Community College Veterans Summit, designed to share information and the best practices for the faculty, administration and staff who work with student veterans on California Community College, California State University, and University of California Campuses.

Mr. McDonald would later serve as the President of the CSU Statewide Alumni Council. He has also been recognized as one of the CSU’s Statewide Outstanding African American Alumni and one of the Cal State Fullerton’s 50th Anniversary prominent alumnus.

CHAMPION TO OTHER VETERANS ADVOCACY EFFORTS

Between 1984 and 1998, Mr. McDonald enjoyed success in the highly competitive sportsmerchandising field. Mr. McDonald’s leadership extends beyond his professionals life. In April 2004, the then-Governor, Mr. Schwarzenegger appointed Bobby to the California Cultural and Historical Endowment Board. And since 2005, Bobby has been on the PBS SoCal Board of Trustees.

ADVOCACY FOR VETERANS McDonald served the country faithfully in the U.S. Navy during the Vietnam War. for this, Bobby has been actively involved in advocacy for the veterans and Small Business Owners for so many years. Mr. McDonald is a member of the Orange County Veterans Advisory Council, appointed by the Supervisor Todd Spitzer. Mr. McDonald has also supported the legislative and regulatory action designed to help many small businesses and through his efforts, he managed to convene an Orange County Veterans Advisory Council ad hoc committee and meeting with local California Disabled Veteran Business Enterprise Alliance members and personnel from the County of Orange Procurement Office regarding Disabled Veterans Business Enterprise (DVBE) procurement opportunities. In 2000, Mr. McDonald and Manuel Baca, a

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He has also contributed to other efforts in veterans community including the implementation of the 211 Orange County veteran Portal, the establishment of the Orange County Veterans and military Families Collaborative, and is on the board of the foundation for the Orange County Fairgrounds Hall of Heroes. For these efforts and many others, Mr. McDonald was recognized to receive the 2016 Veteran Small Business Champion of the Year at the Local Small Business Week Awards program among many other awards.

BLACK BUSINESS AND VETERAN INVOLVEMENT He has improved awareness among veterans’ groups of opportunities in small business ownership through his participation as a motivational speaker, a panelist at the Irvine Valley College Women Veteran Leadership Summit. Previously, McDonald joined Ma jor General (Ret.) Peter Gravett, Secretary, California Department of Veterans Affairs, to headline California’s first Black Veterans Summit Co-hosted by the California Department of Veterans Affairs and the Black Chamber of Commerce of Orange County. Mr. McDonald is also a supporter of the Veterans Business Network of Greater Los Angeles which has hosted several networking events designed to help connect younger veterans seeking to enter business community with other veterans currently in business.

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MOVING ON TO YOUR IDEAL PROPERTY?

CALL ME I CAN HELP YOU! TIANA OWENS Realtor CalDRE # 01998032 Office: (800) 401-8994 x 704 Direct: (949) 393-8020 Email: tiana.owens@thepowerisnow.com Website: www.thepowerisnow.com

COMMERCIAL REAL ESTATE DEVELOPMENTS

INVESTMENT UPDATES: 4TH QUARTER RETAIL INVESTMENTS INS AND OUTS

s retailers enact more downsizing and rightsizing measures, malls and power centers are filled with uncertainties. Some segments of retailers were stable and doing well while others were closing. Due to this, the capital in the retail market has scaled back. This is according to a senior managing director of Faris Lee Investments Jay Quinn.

More rigorous underwriting process as 4th quarter begins The overall retail investment mood as the 4th quarter begins is that the market is inspecting thoroughly more deals available as opposed to what was happening earlier, with investors looking for charter tenants and credit tenants and not taking a risk with their investments due to the market performance at the moment. As investors take a deal in the market, underwriting is getting more rigorous and rigid hence the need of a complete package. Life insurance companiesâ&#x20AC;&#x2122; allocations are starting to underperform and dry up since itâ&#x20AC;&#x2122;s a little late in the year while capital sources are still active and even looking for more new deals in the market. Financial institutions mostly the banks are still loaning but they are looking for deals in a more conservative way with lower loan to value ratio of 60% or maybe 70% while Commercial mortgage backed securities (CMBS) is at 75% loan to value (LTV) maximum. South American money and European money are very little while Canadian interest in United

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States assets is still strong. Chinese interest in the assets is low and their capital has backed off.

little returns for compressed cap rates investment Grocery anchored assets at this time of the year are doing perfectly well, as they are still in demand from buyers, also the capital markets is doing favorably well. With big-box power centers being underwritten they are doing not so well in the market. It is more difficult to get returns that the sponsors want with cap rates compression. These are retail assets are whereby the buyers are coming in in large numbers but the returns are poor.

The economy is headed for greatness! Multifamily buyers are selling their assets and venturing into retails because retails are earning more returns compared too multifamily assets. They can get better buys and returns from retails than they could gain in multifamily assets. At the moment, the economy is performing really well with the low unemployment, four percent GDP and the quarterly numbers being really good. With the corporate debt high, with time the economy can recover fully with time. Office vacancy rates have increased in

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Orange County due to the increase in office space which was introduced to the market leading to vacancy rates rising and absorption remaining flat according to a research done by Newmark Knight Frank. This is mostly due to labor shortages and high prices for the construction materials. Trade tariffs dealing with steel and lumber are adding more pressure on the construction costs. The developers can do little to nothing regarding these prices implementation of materials management technology can be used as a way to offset these high costs.

References: https://www.globest.com/2018/10/25/ how-to-mitigate-rising-constructionmaterials-costs/ https://www.globest. com/2018/10/08/4th-quarter-retailinvestment-update-ins-outs-andcrossovers/

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Linda Larson Cal BRE # 01183012

Real estate Agent

Realtor | Clearlake O: 800-401-8994 x 7202 D: 707-257-1288 danon.burnside@thepowerisnow.com www.thepowerisnow.com www.applytobuynow.com november 2018 issue

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Online Real Estate

Marketing

Session EVERY THURSDAY

FROM 12:30 PM TO 1:30 PM PDT

• Facebook Live enables us to target buyers specifically and specific geography.

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• Online Radio provides more time to promote your listings.

• Millions of consumers are online and listen to Online Radio and Video.

emotion about your listings.

• Consumers can listen to online radio and Facebook Live 24/7.

• The human voice adds immeasurable value to selling Real Estate, as opposed to relying on a simple flyer.

• Facebook Live has no advertising

clutter and provides immediate feeback about your listing.

Click Here for More Information! The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

ECONOMIC OUTLOOK

he Inland Empire is one of the fastest growing areas in Southern California. Drawn by the incredible affordable housing prices compared to nearby cities of LA and San Diego, thousands of people have flocked to the region, which is now home to almost 4 million residents. While in the past this meant long commutes to and from Los Angeles and the Orange County, the expanding local transportation and warehouse industry is sure to create more high paying jobs in the area, improving the live quality of many residents. According to a recent report published by CBRE, the T&W industry has created more than 41,300 jobs in the last five years or 48.6 percent difference compared to 2013. There are two main factors, the ecommerce industry and affordable housing, driving these incredible numbers. The inland Empire has built an accumulated 100 million square feet of industrial facilities in since 2013 and

more infrastructure is needed. For instance, vacancy remains at as low as 3.7% and although 20 million square feet were delivered in 2017. This is even more surprising considering that 46 percent of properties over million square feet had pre-lease contracts . In other words, the demand is quickly catching up the current available facilities. The business activity in the Inland Empire has even surpassed the US economy growth rate. By analyzing the numbers from the second quarter of 2017 all the way to the second of 2018, the business activity grew in the region by 4%, while the USA grew by 2.8% . Almost double compared to rest of the country. The business activity is expected further growth of 3% by the end of the third quarter of 2018. Location has also contribute heavily to the local economy as well as the expansion of the transportation and warehouse industry. While Los Angeles and the Orange County also count with

THE ECONOMY OF THE INLAND EMPIRE CONTINUES TO GROW november 2018 issue

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leading T&W jobs growth, to Kurt Strasmann, executive managing director at CBRE, “The biggest difference centers around housing cost. The Inland Empire is superior to Orange County and L.A. in its affordability”. Compared to coastal communities, housing in Riverside and San Bernardino counties are more affordable, which means that residents working in the communities can have a better life quality as they receive more benefits for their money. In the words of Strassmann “If you live in

the Inland Empire, the ability to work here and eliminate or reduce the commute into L.A. or Orange County is a huge life style benefit,” says Strasmann. “In some cases this will cut out up to 2 hours each way drive time. This combination has allowed the T&W sector in the Inland Empire to recruit from other industries and thrive”

The Inland Empire has definitely experience and expansion in its local industry. As ecommerce becomes more prevalent and people continue, making purchasing from the

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convenience of their homes more jobs will be created in the area. Its amazing location, between the ports of LA and OC the rest of the country makes it the ideal place to settle down.

References https://www.globest.com/2018/10/01/ inland-empire-leads-for-ecommerceemployment-growth/ https://www.hfflp.com/blog/2018/ may/inland-empire-industrialmarket.html https://inlandempire.us/the-inlandempires-business-activity-expandsagain/

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OUR 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.

OUR VISION: The vision of the OC Realtist is to become a center of influence and a chapter of successful realtists in Orange County whose businesses are thriving from the support they receive and the networking opportunities that exist by their affiliation with National Association of Real Estate Brokers.

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NAREB was founded in 1947 and is the Oldest African American Real Estate Trade Association in the United States. The Orange County Realtist Chapter was founded in October 4, 2009 by Eric Frazier in Orange County.

Email: info@ocareb.org Phone: 800-790-0941

GOING GREEN

GREEN IN OFFICE: YAY OR NAY? G

oing green is something that many agree with in principle but struggle with in practice. Will it be efficient and maintain productivity? Can it be implemented with minimal disruption to daily tasks? This especially applies to the workplace. It can seem like a daunting task to partake in, but in reality it’s a lot easier than you might think. From employees to employers, everyone has questions about how this green movement will affect their business and livelihood.

What is “Going Green”? Going green means to take stock of your actions and how they affect the planet and then use that knowledge to make changes that positively impact the world you live in. It means taking the time to work toward solutions that will prove better for the earth. It requires showing responsibility for one’s actions and their impact. While it takes consideration and dedication, it is an entirely feasible course of action for anyone willing to put in the effort.

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Why Should I Go Green? Did you know going green, while the ethically conscious thing to do, is also good for business? It may seem like a bit of a stretch, but sustainability has been shown to provide many advantages. According to the HuffPost, 67% of respondents said sustainability is necessary to compete in a domestic and global market. It also shows that green work is more important, now than ever, to executives and leaders in the workforce.

What are The Benefits? Going Green has many benefits that are often overlooked because people assume it will be an expensive or tiring change to make. In reality, green work environments improve the way the job operates and functions overall. Business News Daily says, that employees at companies using eco-friendly methods of operation are 16% more productive than their counterparts. Going green has been shown to save money and provide workers with a sense of confidence and self-achievement

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Ways to Go Green Still want to try but can’t think of any ways to be more conscious of your environmental impact? Here are some:

Use reusable containers for things like lunches and beverages. Not only is it convenient, but it also provides less waste than plastic or throw away items. Carpool or take public transport. This is a monumental step in decreasing carbon emissions. If you live close to a coworker you know than consider carpooling the trip. It can also save the average traveler hundreds of dollars in commuting costs. Public transport is also another way to have the same lasting influence. Buses and trains are shown to produce 20-25% less air pollution per passenger than they would when riding in an automobile. Use paper sparingly. From printing to signing to reading, paper is one of our most used materials in work environments. Be careful with your usage, try not to needlessly print when it can be avoided, and recycle when given the chance. If your company does not have a recycling program, consider implementing one yourself or talking to someone about doing so.

How Do I Start? Going green doesn’t have to be a big leap at once. It can mean small actions that gradually grow into bigger ones. The key is to take that first step toward a better and greener future. Some tips for getting started:

Make plans of how you and your business/place of employment can work to become more environmentally ethical. Then stick to them. Put those plans into action. Getting started is half the battle and once you’ve done that you’ve concurred the biggest hurdle. Invite your co-workers and/or employees to take part in the effort. This should be a goal everyone in the company can work toward.

Conclusion Going green is something everyone can partake in no matter where they are or who they’re with. It’s a responsibility everyone should consider. No matter what steps you decide to take, if any, you can now keep in mind all the information provided and make your own decisions about the issue and what works best for you.

References www.cpexecutive.com/post/going-green-at-the-officeyay-or-nay/ https://www.huffingtonpost.com/steven-cohen/ sustainability-by-the-num_b_2158104.html https://sites.psu.edu/mfsblog/2015/04/30/corporatesustainability/ http://foodilosophy.dudaone.com/library

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HOME SECURE DOWN PAYMENT ASSISTANCE PROGRAM

Thousands of people each year dream of becoming homeowners. The Home Secure Down Payment Assistance Program may help that dream become reality.

• This homebuyer assistance program currently provides low to- moderate income families and individuals with a 3.5% Grant* that does not have to be repaid. The grant can be used towards down payment or closing costs. If their income exceeds 115% of the HUD Area Median Income then a silent second loan will be made instead of a grant that can be forgiven if payments on the 1st mortgage are made on time for 3 years. *Grant approval is determine by many factors including your FICO Score. Minimum FICO score is 620. Silent second loan forgiveness subject to 3 years of on time payments and other program guidelines/ limitations.

• Many times this allows homebuyers to purchase a home much sooner than they thought possible. The Home Secure DPA Program is available for the purchase of an owner-occupied single, duplex, triplex or fourplex family residence, approved condominium, or planned unit development located in the state of California. • The program is available for purchases of both new and existing homes and is NOT limited to first-time homebuyers.

Contact me for more information: ERIC LAWRENCE FRAZIER MBA CA DRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com Email: eric.frazier@thepowerisnow.com Mobile: (714) 361-2105 | Office: (800) 401-8994 ext. 703 The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Department of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Department of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Department of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

STILL

LOOKING LET ME HELP YOU

BUY OR SELL!

SYLVIA YOUNG BROKER DRE # 01039092 O: (800) 401-8994 X 734 | D: (510) 821-2599 SYLVIA.YOUNG@THEPOWERISNOW.COM WWW.THEPOWERISNOW.COM

TECHNOLOGY

ver the years, weâ&#x20AC;&#x2122;ve heard about the selfdriving cars and the much complicated smart home automation systems. Many industries are adopting automation and technology into their business and real estate is no exception, however, many have a lot of questions about the best systems and facilities to accommodate technology integration. However, the tip in the IoT world is to look for an open architecture, which is the key to integrate a wide range of technology throughout an industrial space and to integrate the technology with other systems. In todayâ&#x20AC;&#x2122;s world, technology has become quite integral part of our everyday lives. Technology affects everyone and therefore, everybody should embrace it. Real estate industry is one of the most affected industry by the technological changes. Before the generation of computers and smartphones, realtors were the resource for the homebuyer. In as short as

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10 years, this role has undergone a ma jor transformation. No longer are agents the primary information source for the buyers and sellers. The mobile apps are becoming ever more popular in todayâ&#x20AC;&#x2122;s world and almost 57% of the home buyers are saying that they use a mobile app in their search. The rates are increasing each year as more and more millennials enter the housing market. The savvy realtors nowadays know that a yard sign is not enough, however, not by far. Real estate agents must be able to make a connection with the potential clients online and on their devices. The biggest challenge of real estate is keeping up with the pace of technology. As the Big Data, Analytics, Machine Learning and Artificial Intelligence become mainstream, the term IoT evolved and has now become part of our everyday conversations. Nowadays, most realtors and agents know what

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technology is and how it has been influencing the industry. More so, some of them have already gained commendable exposure in the world of technology.

Application of IoT in Real Estate IoT in real estate has come a long way since the idea of connecting a range of devices with some sensors and software started making waves. Real estate industry is one of the industry where discussions surrounding the IoT and technological opportunities span numerous impacts.

Predictive maintenance This may be one of the most frustrating scenarios that could happen to a homeowner, but with the predictive maintenance, a homeowner could avoid such scenarios. IoT predictive analytics will enable the homeowners to identify the system failures and address them before they happen. With Applied Energy Partnersâ&#x20AC;&#x2122; SiteWatch, a platform that offers a breakthrough in Operations and Energy Management. Basically, SiteWatch is an inexpensive monitoring and management service which lets you view your equipment operations and energy consumption continuously. By using the sensors and the real time energy monitoring, SiteWatch can keep track of any irregularities which may occur on the equipment and alert you whenever there are maintenance issues. Based on the energy consumption, the platform can predict maintenance schedules.

THIS IS WHAT THE

INDUSTRIAL OWNERS

NEED TO KNOW ABOUT THE IOT

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Ease and fast decision making There are many platforms on the market that will help you with fast decision making in IoT but HouseCanary has an interesting take on the predictive analytics. This platform allows the lenders and the investors to get an in-depth analysis of the homes they want before making a purchase. With a platform like HouseCanary and many like it, the prospective homebuyers will have everything they need to understand about the home valuations and thus making them make informed decisions about their property buying.

The Power Is Now Online Events

Energy Efficiency in homes

Every Tuesday at 12:30 PM and 7:00 PM, along with every Thursday at 12:30 PM, we are live on Youtube!

Real time energy monitoring can be used to predict the maintenance patterns, also, it can be used to create smarter and energy efficient spaces based on the ownerâ&#x20AC;&#x2122;s schedule. Think of how useful a WI-FI enabled smart water heater can be. You can reduce the energy costs significantly by controlling when and how long you need your water heater to run through the day.

We educate our friends and followers about all of the latest mortgage programs, interview industry leaders and professionals, and give agents an opportunity to showcase their listings on our platform.

With a platform like Aquanta, you can perform this task for just a small cost, rather than using almost $1,500 on a new water tank. The platform uses sensors, one of the sensor attached to the T&P valve and the other sensor connected to the cold water pipe, this will measure changes in temperatures and monitor the user patterns. It is very clear that in a few years, IoT in real estate will change the industry in numerous way. With all the predictive analytics, buying, selling and owning a home is becoming more accessible than ever and not only will IoT help the homeowners become more aware of the homeâ&#x20AC;&#x2122;s functionalities, it will generate more market value for the home.

References: https://aquanta.io/ https://www.appenergy.com/sitewatch/ https://www.iotforall.com/iot-applications-real-estate/ https://www.beaconsage.com/blog/real-estate-and-theinternet-of-things/ https://propmodo.com/how-sensors-and-the-iot-areimpacting-real-estate-operations/ november 2018 issue

See the weekly topics at: thepowerisnow.com/events/

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Purchase your home with just 1% down ONE MONTHâ&#x20AC;&#x2122;S RENT COULD GET YOU INTO YOUR

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You put down 1%, your lender contributes 2%*, giving you 3% equity at closing Great low rates | Close in 30 days or less | Available with no monthly mortgage insurance *2% lender contrbution may only be applied to down payment

CALL TODAY FOR THE CONVENTIONAL 1% DOWN WITH EQUITY BOOST PROGRAM

Call me for details: ERIC LAWRENCE FRAZIER MBA CA BRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com

Email: eric.frazier@thepowerisnow.com Mobile: 714-361-2105 Office: 800-401-8994 ext. 703 Fax: 800-401-8994

INDUSTRY INSIGHTS

COMMERCIAL BANK NAMES NEW OC PRESIDENT T

he Commercial Bank of California has recently appointed its new Orange County and Los Angeles market presidents in the persons of Michael J. Helmuth and Claudia Bodan. This is another milestone for the institution and a sign of continued growth.

Getting to Know the New Presidents Michael J. Helmuth Prior to being assigned his new post, the man served as the regional president of the Community Bank for four years. He was in charge of 11 branch offices out of 16. Helmuth also worked at the Southern California Financial Institutions. This includes the following: • American Security Bank •

The City National Bank

•

Citizens’ Business Bank

He graduated with a degree of Bachelor of Science in Marketing at the University of Oregon. While there, he was also a member of the Phi Kappa Psi Fraternity as well as the El Niguel Country Club from 1976 to 1980. Helmuth also took up higher education at the Pacific Coast Banking School from 1990 to 1993. This further proves how competent this newly appointed president is when it comes to commercial banking and finance.

Claudia Bodan Similarly, his friend and close colleague Claudia Bodan was also named Market President in the Los Angeles branch of the CBC. Prior to this, this accomplished lady worked as a market manager and senior vice president at the Bank of America Corporation. She held this precision

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for more than 13 years. The woman also previously served as a vice president and commercial loan officer at Wells Fargo and Company. Furthermore, she took up a Bachelor of Science degree in Corporate Finance from 1998 to 2001 at the University Of Southern California - Marshall School Of Business.

increased because of the aforementioned success of the CBC. According to a recent statement by company insiders, the institution had recently hired at least 35 employees in the south alone.

Continued Success and Expected Positive Projections

It is the hope of the CBC and its staff that the ushering of this new administration led by Mr. Hellmuth and Ms. Bodan would spell the continued success of this financial institution. With all their superb qualifications and skills, it is also hoped that the two newly appointed officials live up to their predecessors’ legacy with ease.

In connection with the appointments, Ash Patel, Chief Executive at the CBC stated that last year has been one of the most productive years for the establishment.

This can certainly happen with proper professional guidance and help which the bank is ready to provide every step of the way.

“This year has been one of tremendous growth for CBC,” said Ash Patel, chief executive of Commercial Bank of California.

With the credentials mentioned above, it is no surprise why these two friends had been chosen to lead the charge in the world of banking and finance. They definitely stood out among the rest.

The CBC has grown approximately 8.4% in terms of assets. Network loans have also increased by 6.6%. Bank hiring in Southern California have also

This being said let us hope that the aforementioned growth and steady financial improvements within this institution does indeed continue with the new administration for the further betterment of the American economy down the line.

References https://www.ocbj.com/news/2018/oct/05/commercialbank-names-new-oc-president/ https://chess-db.com/public/pinfo.jsp?id=3012828976 https://www.linkedin.com/in/claudia-bodan-83526b8 https://newschamber.com/california/greater-losangeles/1707924/commercial-bank-namesnew-oc-president.html

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INDUSTRY INSIGHTS

cents to $ 4.76 from each TV, n the payment amount becomes more signicant. As one of the six original plaintiff‘s expert explained, the settlement “greatly exceed the maximum value of actual harm per consumer, per TV.”

PAYS $17 MILLION FOR SPYING ON CONSUMERS

rvine based company, Vizio, Inc. has reached settlement of $ 17 million class action suit filed in Santa Ana in 2016 for allegedly spying on consumers. The company tracked the viewing habits and demographics of almost 16 million Vizio Smart TV buyers from Feb. 1, 2014 and Feb. 6, 2017 and sold the data to other companies. According to the lawsuit, Vizio Smart TV would collect information regarding gender, age, income, education level, homeownership, household size, and viewing habits. This also included what programs they were watching, the viewing time and location. The company then sold the data to advertising agencies who would use the information to show targeted advertising on phones and local devises. Vizio agreed to create a $17 million fund to be divided among anyone who files a complaint. A percentage of the fund will be used to pay court-approved expenses, attorney fees and service awards for the six original victims that filled the complain. These payments cannot exceed over 33% of the total fund, $5.6 million approximately. If all the 16 million buyers were to file a claim, they would receive up to 62 cents each with 50 cents more from injunctive reliefs for total of $1.12. However, if only 5 percent of the victims do so, they could receive a nearly $13. Taking into account that Vizio only benefitted from 78

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Aside from monetary compensation, the company also agreed to delete all the data it had tracked and it will modify its Quick Start Guides by asking buyers if they want their data to be collected when setting up the TV. This is not the first time Vizio has had to disclose money for collecting data as the company already paid the Federal Trade Commission $2.2 million in fines in 2017. Nevertheless, the company said that “While it enabled detection of content displayed on VIZIO Smart TVs and information unique to the unit including IP address, it never connected such information to an individual’s name, address or similar identifying information.” In other words, individual names and households cannot be identified. Vizio was founded in 2002 by Taiwanese-American, William Wang, and it is the second largest private-owned company by a minority in the OC, as well as the fifth largest consumer electronics producer in the region.

References https://www.ocbj.com/news/2018/oct/05/vizio-reaches17m-settlement-tv-spying-lawsuit/ https://www.manatt.com/Insights/Newsletters/ Advertising-Law/Vizio-Settles-Smart-TV-Suit-for-17M https://www.tomsguide.com/us/vizio-tv-spyingsettlement,news-28237.html

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ON THE BALLOTS

STRONG RENT CONTROL MAY SPREAD

ALL ACROSS THE STATE C

alifornia voters will once again return to the ballots, on November 6 to vote on initiatives that would allow California Cities and counties in the state to adopt stronger, stringent rent control laws which would limit the amount by which the landlords are allowed to raise the rents each year. The initiative comes under Proposition 10 and the backers have garnered enough signatures to qualify the initiative for the upcoming ballot. Proponent behind the proposition seem ready enough to push the initiative to the ballots, Christina Livingston, a tenant rights activist and a strong proponent of the initiative said; “Low-income people and working class communities are experiencing it, not just in coastal cities but in the Central Valley — everywhere in California.”

november 2018 issue

The ORANGE COUNTY Realtist Magazine

What the initiative will do The initiative is aimed at repealing a 23year old state law which sets tighter limits on all forms of rent control all across the state of California. The Costa-Hawkins Rent Housing Act of 1995 said that any regulation passed after February 1995 would not apply to large amounts of housing stocks, which included the new apartments buildings occupied after that date, single family homes, duplexes and condominiums. If the local housing authorities were to, in any way increase rent for the tenants, they would only do so for the building built before that year. However, many citizens across the state of California, from Santa Monica to Los Angeles and San Francisco had already, in the 70s and 80s adopted the local rent control regulations. What the Costa-Hawkins rule did is that it froze all the rules in place and prevented them from being changed. A repeal of the law would only mean that cities and the counties seeking to adopt the new rent control measures would be able to apply limits on rent increases to any housing of their choice. Moreover, a repeal of the law would allow the counties to change or strengthen the existing local rent control laws. What the Costa-Hawkins law did is that it gave the landlords more power over what they could charge for their rentals. The law dictates that after a tenant vacates a rent-controlled apartment, the landlord is allowed to adjust the rent to the market prices, setting a new price for the next tenant. A repeal of the law would allow the state to change that practice and enforce more restrictive policies.

Costa-Hawkins into law Coming into law, this new regulation, to some cities was indeed a backlash since they had already adopted the rent control laws as a response to the alarming rate by which

housing grew at the time. The law was also tied to Proposition 13 whose proponents argued that rents would fail if the homeowners and the landlords paid less in property taxes. However, as the rents continued to climb, the taxpayer advocates and the landlords saw the movement for rent control spreading. 1n 1995, Jim Costa, a then-Democratic state senator from Central Valley and Phil Hawkins, a Republican assemblyman from Orange County joined forces to author the state law seeking to brusque rent control movement. Currently, 15 cities have adopted some form of rent control, but a vast ma jority of laws of this kind were adopted more than a decade ago. But as the housing market continues to grow, a new generation of housing and tenantsâ&#x20AC;&#x2122; rights groups have come up to bring a new wave of revolution. In 2016, some cities in Bay Area, Richmond and Mountain View became the first to pass new rent control acts. Efforts by three other cities failed amid opposition from the California Apartment Association.

Will Proposition 10 ease Housing situation in California? No one knows for sure. The cost of living in California is rising higher by the day. This has made it difficult in some parts of the state for the employers to recruit and even retain the skilled workforce. Rising housing cost has led to a loss of 1 million, since people are moving out of California into other states. The rent control proponents make a strong argument saying that stronger tenant protections will help the low income earners and the moderate income earners will be able to afford housing to continue staying in the county. But opponents, including the California Apartment Association and California

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Association of Realtors and other industry representatives argue that stronger rent control will interfere with the new housing construction and lead to a less tax revenues to pay for the schools and other public services. â&#x20AC;&#x153;The heart and soul of our argument is something this radical pours gasoline on our housing crisis and makes it worse,â&#x20AC;? said Steve Maviglio, a spokesman for the opposition campaign called Californians for Responsible Housing.

developers of the rental housing may chose not to build. Rent control limits the future increases in rent, however, it doesnâ&#x20AC;&#x2122;t roll back the rents that are already out of reach. There is a possible probability of Prop 10 pressuring the rents upwards, if the rent control takes rental units off the market, or if it discourages more constructions.

The state legislative further found that a repeal of the law would likely lead to more rent control, lower rents and increased stability for the tenants, however, the economic rift in the county would be far much wider. Construction of new rental houses could decline, property owners would be forced to remove their units from the market making the value of house decline. This would further lead to a decline in property taxes. If the proposition passes, the incentive to build or even retain housing will be diminished. Prospective november 2018 issue

References https://lao.ca.gov/BallotAnalysis/Initiative/2017-041 https://www.bisnow.com/los-angeles/news/multifamily/ los-angeles-apartment-association-launches-no-onprop-10-campaign-90772 https://www.sacbee.com/news/politics-government/ capitol-alert/article213328069.html

The ORANGE COUNTY Realtist Magazine

Home Ownership By Eric Lawrence Frazier MBA

Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever. Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life. It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.

november 2018 issue

The ORANGE COUNTY Realtist Magazine

Our board of directors

Christina Kimble PRESIDENT

R. Ann Ellis Hall SECRETARY ann.annellis@gmail.com 626-864-4127

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

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

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

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

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

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

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

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

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