AUGUST 2018 Vol. 05 | Issue 6
Bruce Marks CEO of NACA Fighting for the American dream Ten years after the financial crisis: Is this the right time to buy? Student debt and homeownership
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.
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magazine THE POWER IS NOW INC. Vol. 05 | Issue 6
Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 eric.frazier@thepowerisnow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow
EDITORIAL TEAM
Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Daniel Mungai Managing Editor (800) 401-8994 ext. 707 daniel.george@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com
CONTRIBUTORS The Power Is Now Research Team
The Power Is Now Magazine
August 2018
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online homebuyer’s seminar • Learn about the state of housing and the Wealth Gap • Learn about Zero Down Payment Home Loans on 1 to 4 units • Learn about Down Payment Assistance Programs with state, county and city • Learn about partnership strategies to buy your first home • Learn how to buy a 4 unit home as a first time home buyer Presented by: Eric Lawrence Frazier, MBA
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the power is now
magazine
table of contents 12.
The top threats to real estate
2019
16.
Why are homes in California
getting pricier?
20.
On the cover: Bruce Marks,
CEO of NACA. Fighting for the American dream
24.
Rising costs of housing
cited as a root of lagging
on the housing market
38.
Civil rights groups sue
HUD over the suspended implementation of affirmatively furthering fair housing rule
42.
Understanding the benefits
of the blockchain in real estate industry
homeownership rates among the young adults
28.
Ten years after the financial
buy? Mortgage rates near highest
average of the year
34.
The power of social media:
How to leverage social media
crisis: Is this the right time to
32.
46.
Student debts weight down
The Power Is Now Magazine
for agents
50.
How to build up your own
real estate portfolio
56.
Five ways to stop worrying
about homeownership August 2018
6
JUMBO LOAN PROGRAM
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Call me for details: ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com
Email: eric.frazier@thepowerisnow.com Mobile: (714) 475-8629 Office: (800) 401-8994 ext. 703 Fax: (800) 401-8994
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 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 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.
Editor’s Letter
T
o our esteemed readers
Summer is rapidly coming to an end and if you are like me you are haven’t taken a vacation yet. So where are you going to go? You have one month to get it done. Good luck. I have given up on taking a vacation. My wife might go on one without me. Such is the life of a Mortgage and Real Estate Broker who is doing too much. But I digress. Summer is coming to an end, so my recommendation is to stay in California and take your iPad, so you can read our magazine. This month on our cover we have the president and CEO of NACA, Bruce Marks. Bruce has spent more than 30 years as an activist and advocate. His objective is simple, but the path has been long and difficult. Making the cornerstone of the American Dream, home ownership, a reality for everyone possible has become a lifetime’s effort for Bruce Marks that has greatly influenced an important chapter in American history. Bruce for a long time now has been the champion of hope for most people; people who found themselves up against powerful banks that threatened take away the only place they felt safe – their home. Mark, from the looks is just an ordinary man, who rarely keeps off his boldly uniform of casual shirts emblazoned with a slogan of his organization “Financial Predators Beware!”, yet over the years, he has become the most feared man in the nation’s financial Corporate Boardrooms. Mark began his housing work over three decades ago, at a time when financial institutions were very selective about who to give and who to deny. Over the time, Mark succeeded in shaming the hosts of big banks into committing millions to NACA, making his organization responsible for writing reasonable loans for banks and getting more working class people all across the country into the ranks of homeownership. It’s a pleasure for The Power Is Now to feature him on this issue. We are also talking about interest rates which are still low but rising fast. Many would-be homebuyers are priced out at 4% interest rates. Can you believe it? It’s feeling like 2005 to 2007 all over again when the market bubble busted leading to the Great Financial Crisis, but it is just an illusion. The high prices are real and not a result of increase demand from fraudulent loans given to people who don’t qualify and have flooded the market to buy, creating artificial demand. This is not happening. There are qualified buyers that simply don’t make enough money and are forced to rent to stay close to work. Or they can move to the outskirts of town and have a 2-hour commute. That is what is happening. There are not enough homes for sale and there are not enough homes being built to sell. We are in a housing crisis. Home prices will keep on rising as long the supply remains low. We are 3 million units behind and may not achieve any buyer/seller equilibrium in our lifetime because of population growth, immigration and baby boomers and generation Xer’s not selling. If you don’t buy now you will not buy later. Don’t’ bank or bet on a market correction that is going to suddenly make the market affordable. It is not going to happen. Be smart and buy now. Partner up if you must. Our agents are stationed in every corner of our state to make sure that your Dream of Homeownership stays alive. Inside this issue we deal with the housing crisis and uncover the reason why California
The Power Is Now Magazine
August 2018
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homes keep getting pricier. This is a subject that I think will continue to spark heated debates all over the country because California real-estate market is hot in every aspect from home buying to renting. In addition to that, we also investigate the housing market with regards to student loans and the affect that student loan debt is having on millenniums. Also, the Department of Housing and Urban Development is involved in another scandal and this time, the Civil rights group are suing Carson’s department over the suspended implementation of the Affirmatively Furthering Fair Housing Rule. I didn’t see that coming. Uncle Ben is really living up to his name. Of course, we never like to leave the nuts and the bolts of real estate as we focus on the disruptive trends the real estate market is likely to face in 2019. We also preview Blockchain technology and how agents can leverage social media to move a step further in the market. Success in real estate is the desire of every agent and investor and therefore, this issue tackles one of the most important questions; how can one build a successful real-estate investment portfolio? I believe that wealth creation is a personal choice backed by one’s decisions. Learn more on this subject as well as many others every Tuesday on my Facebook Live. This month, I will be hosting a workshop at Shiloh Baptist Church where I will be talking more about the state of Housing in California on August 4th from 9:30 am – 12:30 pm. It is a workshop that you do not want to miss! Please come and join this amazing event hosted by Pastor Jesse Davis. Lastly, I want to thank you for your continued support. Our team is always dedicated to making sure we provide you with our best. Please take a moment and share this magazine. Knowledge is power and The Power Is Now.
Eric Lawrence Frazier, MBA CEO The Power Is Now Inc.
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ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243
Mobile: (714) 361-2105 Office: (800) 401-8994 ext. 703 Email: eric.frazier@thepowerisnow.com Website: www.thepowerisnow.com
IN REAL ESTATE
The top threats to real estate 2019
R
eal estate market is a dynamic market, and will keep changing from time to time and 2019 will see some ma jor changes with the top threats being rising mortgage rates and the general economy according to the Counselors of Real Estate (CRE). The counselors also broke down a list of some longer term issues to watch out into the foreseeable future.
Top threats in the real estate market Rising interest rates As the interest rates rise in the market, commercial and residential real estate markets will see some several changes. There is a great probability of decreasing demand of the commercial property and also higher home mortgage rates. The effect of increasing rates will be less affordable homes and limiting value appreciation for the commercial real estate market. The housing demand will be highly affected by the lack of wage growth for the large segment of the population.
Political uncertainty Real estate market will also be affected by state of the country’s politics. Tax reforms and policies focused at establishing a stable trade with other countries will have a significance impact on the jobs, incomes and both the commercial and the residential properties. “Congressional action to relax certain bank lending and asset management regulations was also among developing trends that may improve access to capital.� The report notes.
The Power Is Now Magazine
August 2018
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Housing affordability This is also a trend to watch out for in 2019, the lack of affordable homes across income brackets with the exclusion of the wealthiest is being fueled by the low wages and rising mortgage rates. Also, you will note that in the last two decades, there has been an underproduction of new housing units in most states, but mostly California. The effects of this will felt in 2019 going forward, meaning that most people will be priced out of the market.
Generational Changes The report notes that four distinct generations will be exerting pressure on commercial and residential real estate, mostly in the office design, the student and elder housing, social amenities and the location preferences.
E-commerce and logistics There will be a high volatility in the retail sector such as an increase in e-commerce activities leading to a growth in the warehouses.
Top longer term threats in real estate market Infrastructure Infrastructural growth such as roads, bridges, airports, water, sewer lines, electricity and public transit will rapidly deteriorate according to the report. By 2025, an estimated $4.5 trillion will be needed to improve the critical state of the infrastructural growth in the country. “The lack of serious effort by the U.S. to address its condition and much-needed revitalization leads the list of broader and emerging issues affecting real estate.� Technology Recently, there has been great advances in robotics manufacture and warehousing, driverless cars and trucks, smart building technology which enhances efficiency, global connectivity and automated business process. Every aspect of real estate is undergoing a dramatic change as these types of technology are adopted.
and also worsen the current skilled labor force in the U.S.
Immigration If immigration patterns by law are reduced, this will have a negative impact on the new housing constructions and impact the home purchases
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Sources: http://www.c21carioti.com/main/the-top-10-threats-to-realestate-in-2019/
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REALTOR BRE # 01987453 (800) 401-8994 x 753 (707) 494-2028 alexandra.trefry@thepowerisnow.com
w w w . t h e p o w e r i s no w . c o m
IN REAL ESTATE
Why Are Homes In California Getting Pricier?
H
omes in California keep getting pricier and surprisingly many people want to live here! California is attracting high income people who are creating more wealth, but for the middle and low income earners like the teachers are forced to move because housing has become extraordinarily expensive. Upshot recently took a look at how much housing costs in various cities in the United States in relation to how much economists think it should cost. Not surprisingly, coastal California tops the list of the country’s most overpriced places Facts and Numbers How many Californian families can afford an over $500,000 house? The New York Times says $ 800,000 is the average price for a standard house in the metropolitan areas such as San Francisco, San Jose and cities and counties in coastal Southern California in the year 2013. This means that very few Californians can afford a house at that price. According to Zillow, a real estate website, their data shows that since the housing market took off in 2012, the California median home price has risen to $539,000, a The Power Is Now Magazine
August 2018
compounded annual growth rate of nearly 10%. The median rent for a vacant apartment jumped an annual rate of nearly 5.5% to $2,507. To afford such housing rates in the market, one would need a yearly income of over $52,000, a figure that is still out of reach for most Californian people. The financial crisis of 2008 created the biggest disruption to the U.S. housing market since the Great Depression. From the top of the housing bubble roughly a decade ago until just recently, there’s been a five percentage-point increase in
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the number of renters to owners to 43.3% from 38.5%. Therefore, there has been a significant decline in home ownership. What could possibly be the problem? To many California families, the accelerating housing crisis has not just affected their budgets, but also their way of life. Every year over the past decade, the California State estimates that 100,000 fewer units of housing have been built than were needed to keep up with the demand. The result has been a sharp increase in house prices due to increased demand and in turn, a significant reduction in the number and size of families across the state.
High Land Cost High land costs and low density development has also made housing expensive in this state. Land prices especially on the California coast are among the highest in the country compared to land prices in inland California. According to American Housing Survey data of 2011, a residential land in an average U.S. metro was valued at around $20,000 per acre, compared with over $150,000 in California’s coastal metros. Land values were highest in San Francisco, where an acre of land was valued at nearly $400,000.
Constructions Costs Construction costs in California are increasingly higher than in the rest of the country. Aside from the land costs, developers have to consider other www.thepinmagazine.com
factors such as labor, materials and government fees. Construction labor is about 20 percent more expensive in California metros than in the rest of the country. California’s building codes and standards also are considered more comprehensive and prescriptive, often requiring more expensive materials and labor. Development fees levied on builders as a condition of development, are higher in California than the rest of the country. A 2012 national survey found that the average development fee levied by California local governments was just over $22,000 per single family home compared with about $6,000 per single family home in the rest of the country. In the California metros, the cost of building a typical single family home is most likely to be between $50,000 and $75,000 higher than in the rest of the country. There are plenty of reasons that help explain why California housings costs have gotten so out of control. The task of making California affordable again--or at least relatively affordable again--defies a simple silver-bullet solution.
References: https://www.bloomberg.com/view/articles/2018-02-26/ rent-in-california-is-even-higher-than-you-thought http://www.latimes.com/business/la-fi-housing-costseconomy-20180222-story.html https://www.nytimes.com/2017/02/15/us/california-todayhousing-costs.html https://www.ocregister.com/2017/06/25/how-much-longercan-home-prices-keep-going-up/
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Helping Families Make the Right Move!
Danon Burnside Cal DRE # 01835853
Real estate Agent
Realtor | San Bernardino O: (800) 401-8994 x 724 D: (951) 205-5796 danon.burnside@thepowerisnow.com www.thepowerisnow.com www.applytobuynow.com
ON THE COVER: BRUCE MARKS CEO of NACA
Fighting for the American Dream B ruce Marks has spent more than 30 years as an activist and advocate. His objective is simple, but the path has been long and difficult. Making the cornerstone of the American Dream, home ownership, a reality for everyone possible has become a lifetime’s effort for Bruce Marks that has greatly influenced an important chapter in American history. Starting with the Hotel Workers Union in Boston in 1988, Bruce Marks was responsible for historic changes in the Taft-Hartley Act that helped people live in the same area where they worked. He took on predatory lenders and won in a classic David vs. Goliath story that repeated itself numerous times, engaging in activism modeled after the Civil Rights movement and earning him the label of “non-violent bank terrorist”. It’s a label he wears proudly. He predicted and warned Congress in 2000 of the coming mortgage crisis long before anyone else. He established a revolutionary mortgage program to create affordable, r e s p o n s i b l e home ownership opportunities for low and moderate income families. In doing so he created a ground breaking web-based paperless mortgage application and processing system. In 2007 he was named Bostonian of the Year. After the housing bubble burst he designed and implemented the NACA Home Save Program, giving hundreds of thousands of homeowners across the country the opportunity to prevent foreclosure and restructure their unaffordable
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mortgages.
He launched the unprecedented Save the Dream Events, which saw tens of thousands of besieged homeowners in attendance seeking help, gaining national attention not just for NACA but to just how vast the mortgage crisis really was. To date, there have been more than 150 events, including the largest foreclosure prevention event in American history. With the exception of a pledge to nonviolence, as an activist Bruce Marks has had few boundaries, whether they be political, geographic or social. He has led protests at ma jor banks and government agencies. He has vigorously condemned politicians on both sides of the aisle. He has dumped furniture on the front lawns of predatory lenders’ CEO’s, and shut down operations at Chase, Countrywide, Fannie Mae and the CFPB to make his point clear. Moreover, he pursued scam artists operating phony mortgage modification services, stopping foreclosure prevention rip-offs and even recovering victims’ money. Then, even before the dust had settled on the mortgage crisis, he created a game-changing 15-year Freedom Loan, giving homebuyers an unprecedented opportunity to build personal wealth far more efficiently than with a 30-year mortgage loan, while maintaining affordability for the home buyer. And now, Section 8 recipients have the opportunity to break the cycle of poverty through another revolutionary program referred to as “HOT-PHA” that moves people from receiving benefits to owning their home free and clear in less than 15 years. New issues and new battles are in Bruce Marks’ sights as he continues to advocate, educate and innovate as the most successful housing activist in American history.
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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
IN MORTGAGE
Rising costs of housing cited as a root of lagging homeownership rates among the young adults Freddie Mac estimates that the Homeownership rates will likely trail the historical levels through 2025
T
here is no doubt the cost of housing in California is on an upward surge, which presents the biggest hurdle for the young prospective homebuyers to overcome, this is according to a research done by Freddie Mac. The trend is, home prices, not only in California, but the rest of the nation are rising much faster than the incomes and this trend is projected to continue until 2025. Freddie Mac also notes that financial Headwinds and the societal shifts such as the declining marriage and fertility rates have depressed the homeownership levels among the young adults. The homeownership rates among the people under 35 has significantly fallen to an upheaval 8% since their peak in 2004. Also, Freddie analysis shows that high home prices and rents are the primary reason for this decline in the young homeownership at 49% followed by the fertility and low marriage rates at 22% and a likely combination of the The Power Is Now Magazine
August 2018
student debt, a preference towards renting as option, borrowing constraints and other factors at 13%. Freddie Mac predictions examined the economic and the demographic trends from the year 2000 to 2016 to identify the causes behind the 8% decrease in the homeownership rates among the young adults. Based on the findings, Freddie Mac reveals that a more racially diverse population at 12% and the increased migration to the more densely populated metro areas, which of course are expensive and have a suppressed homeownership. In the last five years, the historically low mortgage rates and the increasingly favorable employment conditions in the country should have favored the young adults into purchasing homes but unfortunately home prices and the rent growth since the great recession have been too high 24
presenting a barrier for many would-be homebuyers. The condition presently in the market present a wealthy opportune for most of the homeowners but these weaker affordability conditions have led to a missed opportune for the interested homebuyers who are at most, priced out of the market. Since the financial crisis 2008, the homeownership rates for the young adults between 25-35 years old have fallen significantly and Freddie predicts this trends until 2025. Freddie also predicts that the people currently in that age group and those who will be in that segment in 2025 will remain below the historical averages for the homeownership. The forecast also shows that for those who will be 24-35 years old in 2025, the homeownership rates will be at 36.6%. The demographics, the housing preferences and the economic conditions will play a ma jor role in the direction that the homeownership will take in the coming years. Assuming that the economic conditions improves, the incomes and the entry-level housing supply increase in a meaningful way, the homeownership rates for young adults could fall out of bounds and exceed what Freddie Mac predicts. The analysis also show that about 700,000 young adults did not purchase a home between the years 2000-2016 citing inflationadjusted home prices and increased rents as the reasons behind the lag. In addition to that, the home price-to-income ratio has risen to newer heights which in the long run has depressed the homeownership rates. The effect of this is that, the ratio has increased more of the young adults than the overall population especially those in the metro areas.
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 http://freddiemac.mwnewsroom.com/press-releases/ rising-housing-costs-cited-as-root-cause-of-lagginotc-fmcc-gnw_2384556_001
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ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243 Phone: (800) 401-8994 ext. 703 Website: Direct: (714) 475-8629 eric.frazier@thepowerisnow.com www.thepowerisnow.com 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 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 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.
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1. We pay the Highest Compensation and Marketing � Teams are Welcome and Can Maximize Their Support Package for real estate agents than any Income with Competitive Commission Splits. other real estate firm in California. Our buyers’ agents can make up to 100% of the commission on 3. Free Marketing Support: their transactions. Here are additional benefits: � Social Media Management & Support � Promotional Interviews on BlogTalkRadio � Live Online Homebuyer Seminars & Homebuyer Events � Financial Support for Marketing � Free Listing Sign Post & Business Cards � Online TV & Video Productions 2. Territory Management - Exclusivity: � Live Homebuyer Seminars & Online Resources � Website IDX & CRM Management � Exclusive Areas/Territories for All Agents. � Professional Coaching & Business Planning � Exclusive Broker Management Opportunities & � Lead Management & Follow Up Support compensation. � Unmatched Compensation Model for Managers � Marketing & Branding Graphic Design Support and Directors.
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No Monthly Fees No Franchise Fee No Broker Admin Fee No Office Admin Fees No Nonsense, No Games, Whatsoever
Please call for more details: ERIC LAWRENCE FRAZIER, MBA President & CEO Direct: (714) 475-8629 Office: (800) 401-8994 ext. 701 eric.frazier@thepowerisnow.com www.thepowerisnow.com 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.
Ten Years after the Financial Crisis:
Is this the Right Time to Buy?
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en years ago, the country was hit by the worst crisis in modern history and the horror is far from over! History might repeat itself again if the government stays silent about this. Ten years ago, investment banks and financial institutions collapsed in dramatic way, but back then, in part, the chaos could be blamed to the reckless lending and risky investment that had tanked. The crisis began more than a decade ago, following a culmination of events that led to the market bursting finally in 2008. JP Morgan’s shocking deal that intended to rescue Bear Stearns for $2 per share after the investment bank suffered deep losses. As the first in the row, Bear led the fallout in the financial market. Others would latter follow. The 2008 wounds are still fresh! So engrossed in our current financial and economic DNA and you would think that the country has learned so many lessons from this horrific time. But have we? It is time to revisit the events and uncover the lessons we missed. Certainly, homeownership in most states is on a dramatic upward surge which calls for much attention; most first timers are wondering, is this the right time to buy a home? Since the great financial crisis, America remains strong. The corporate profits are at record highs, the unemployment rates in the country is at a 17 year low and the stocks market has been stronger in value since the recession period. By far, the country has seen much improvement but the question that most people do not want to face is, could the financial crisis happen again? In 2011, CNN conducted a poll, almost 50% of Americans participated and most of them thought the crisis would happen
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within a year. Fortunately, they were wrong. But, now most people are convinced that we are headed for a crisis, if we are not already in one. Take the homeownership rates for example, the only time we see a ma jor rise is in 2017 when a private equity investor group bought hundreds of thousands of the foreclosed homes and rented them back their former owners, but even so, many of them suffered bad credit that they could never buy again. Prices are rising by the day, mortgage rates are rising too, the market is hot and waiting any longer will do you more harm. If you haven’t bought yet, buy now! 2018 may be the best chance to get yourself a home. “The challenge for the buyers in the market haven’t changed that much from last year” said Keith Gumbinger, Vice President of Mortgage website HSH.com In addition to that, the mortgage loans for homes are expected to rise and get more expensive as we go forth. The supply for new housing units will be very tight. Normally, a balanced market tends to have about 6 months of constant housing supply but in December, the market had less than 3 months of supply and the homes were selling 5-6 times faster than the previous year. Competition is getting stiffer, the first time home buyers will struggle to find the home and as long as there will be an inventory shortage in the market, there will always be a bidding war. On the other hand, labor force participation rate hasn’t yet recovered. The blue collar jobs were particularly hit hard and are yet to bounce back. The recovery doesn’t
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come easy and so far it has deepened the geographical divide, with the tech giant hubs and cities endowed with natural resources booming. In terms of the incomes, most of the gains are going to the households in the top 10% of the wage scale. Since 1998, the median household net worth remains adamantly low, even as the households take more loans than never before. However, the good news is that home building is expected to be on the rise and increase with 10% this year. This is expected to feed the much needed 1.3 million new single family homes. To keep up with the population gains, the state needs to do more. Over the recent past, the home prices have exponentially risen and Experts believe that the home prices will at one time in the near future slow down. The prices can’t go up at the pace that have been in the markets forever, chances are, they affordability has been going down and will keep going down as long as the prices rise, sales will slow down pushing the prices to slow down. Until then, the prices are expected to rise higher, which only means that it is time to get into the home if you haven’t. Chances are, going forward, people will be priced out of the market leaving room for renting only, in which, and the rents are also climbing up. The Power Is Now Magazine
August 2018
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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
IN MORTGAGE
Mortgage rates near
highest Average of the year
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ortgage rates on June were rising steadily after weeks of decline and for the second time in a year, the rate reached its peak level. However, this month, we see mortgage rates on a steady decline offering a slight degree of relief to the wouldbe homebuyers. The 30- year fixed rate mortgage dropped to 4.52% from 4.55 percent a week earlier. In the five or six weeks that have passed, the mortgage rates for the 30year fixed rate mortgage has been on the decline but in vast contrast, the average rate has increased from a year ago when it was stagnating at 3.96 percent. The rise in the mortgage rates last in June followed a move by
the Federal Reserve vote which prospected to raise the federal fund rate by 25 basis points. The run-up in the mortgage rates during the start of the year represented not just a rise in the risk free borrowing costs, but an opportune for investors as well, the mortgage spread also rose back to a more normal levels by 20 basis points. This for the buyers is good news and over the short term, there is room for the mortgage to decline. Given that the economic expansion is its 10th year, you would expect that the residential single-family real estate would recover quickly, contrary to that, the recovery is slow and now, backed by demographics provided by the
millennials reaching the peak age to buy their first home, moving forward, we expect a quick turnaround, the market will have a room to expand and grow. The mortgage rates have declined as the investor in the United States bought the 10year U.S Tresury notes causing a decline on the yields. The yield peaked in May reaching 3.11 percent but since then, the rates yields have dipped to 2.33 percent. Despite the decline, long term loan rates will remain near their highest levels in 7 years. The average 30-year mortgage rate reached their high levels this year of 4.66 percent which was on May 24. The 15-year rate hit 4.15 percent.
Sources; https://www.nytimes.com/ aponline/2018/07/05/us/politics/apus-mortgage-rates.html http://freddiemac.mwnewsroom. com/press-releases/mortgage-ratescontinue-recent-decline-otc-fmccgnw_2390605_001 http://freddiemac.mwnewsroom. com/press-releases/mortgagerates-back-on-the-rise-otc-fmccgnw_2366662_001
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BUYING OR SELLING? MEET YOUR NEW REAL ESTATE NEIGHBOR! Lanise’s knowledge of the ever-changing real estate market and its technology will provide you with an enjoyable and hassle-free real estate process. She is committed to continuing to build her record of quality service and establish an honest, long-term relationship with each one of her clients.
LANISE SPANN Realtor DRE # 01800507 Office: (800) 401-8994 x 713 Direct: (707) 297-0398 Email: lanise.spann@thepowerisnow.com
IN LEGAL
Student debts weigh down
on the housing market S
tudent loan debts in the country have been a menace to most first time home buyers in the United States, who have to deal with the intricacies in the mortgage lending environment and the heavy debts flaunting on their portfolio, all of which seem to damper their American Dream of Homeownership. With the recent Independence Day celebration, you have to wonder when the country will ever achieve the true meaning of independence.
the white students. With the rising cost of tuition which as a matter of fact out paces inflation and wage growth in the country, many of the students are struggling to make it education wise. You will realize that about 44 million Americans owe over 1.48 trillion in student loan debt. Digging deeper into the student debts crisis, evidently, black and Hispanic students pay more when it comes to student loans, what does this mean for the American Homeownership dream?
The fact is, student loan debts weigh more heavily on the students of color more than their white counterparts. According to a study by National Center for Education Statistics (NCES), an estimated 86.8% of the Black Students borrow from the federal student loan to attend a four-year public college as opposed to the 59.9% of
Over the recent past, student loans are increasingly becoming an insurmountable burden which reduces home buying opportunities at a time when the American home market needs an input of the first time home buyers, to sustain the ongoing recovery. Not that most people cannot qualify for the mortgage
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needed to purchase a home but the student loans are doing significant damages to the homeownership. Student loans are generally incompatible with the mortgage financing as these loans (and any other kind of loan) affects the Homebuyer’s Debt-toIncome ratio (DTI). Data from College Board reveals that, more than 70% of the college graduates have taken out the students loans. Therefore, this means that most of the college educated clients have to weigh their home purchase with the college debts reflecting on their portfolios or their savings if they have already paid of their debts. Evidently, student loans are nowadays everywhere and cutting into the potential homebuyer’s clientele base, very quickly. There are 2 certain reason why student’s loans are creeping and cutting a slice of the homebuyers market; first, the cost of college education continues to increase quickly and the number of the individual attending college continues to grow. Let’s talk numbers, in 2006-2007, the average tuition fees for a 4 year public college or university was $4,549. Five years down the line, 2011-2012, the figures were almost twice that, at $9,022. From 2000 to 2010, the number of students attending 4-year public college or university in California grew by a shocking 16 percent. This is bad news for housing market and to be more specific, bad news for the minority groups since they are
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the largest partakers in the student debt crisis, while the numbers seem alarming in a general sense, the rising tide of the student debt presents a fiddly situation for the housing market. Education is important, there is no doubt about that, to obtain high paying job, higher education is subject out of discussion, the jobs are a big boon for the housing market. The decrease in the first time homebuyer trends corresponds with the swift rise in the student debts. We are not entirely to blame student loans for the decline in homeownership, you will note that the persistently high unemployment rates in the wake of 2008 recession and reduced savings, make up for the crisis in homeownership. Good news is that, since the decline in the number of student loan borrowers which began in 2013, homeownership rates in 2016-2017 began to make a comeback for the young adults. The first-time homebuyers are slowly making a comeback
into the market, what’s happening is that the loan balances are being paid off and the saving are being accumulated which means, more first time homebuyers will be pouring in. By the end of 2019, the employment picture will have improved enough to support the larger numbers of the first time home buyers. But as they make the comeback in a greater force, their numbers will continue to be undersized by the drag of the student debt.
Sources; https://nces.ed.gov/datalab/index.aspx h t t p s : //s t u d e n t l o a n h e r o . c o m / s tudent-loan-debt-s tatis tics/ https://www. mpama g.com/news/ jumbo/unpaid-school-loans-weighdown-on-housing-recovery-14519.aspx https://www.bostonglobe.com/lifestyle/ real-estate/2016/09/30/student-loandebt-causes-chain-reaction-housingmarket/p6DGy4f2px9vadMJnKr39O/ story.html
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Robin Davis Realtor | CalDRE # 01971982
Phone: (800) 401-8994 x 706 Direct: (925) 565-4848 robin.davis@thepowerisnow.com www.thepowerisnow.com
IN LEGAL
Civil rights groups Sue HUD over the Suspended Implementation of Affirmatively Furthering Fair Housing Rule
T
he National Fair Housing Alliance along with its affiliate members asked a federal court in Washington, D.C to order the U.S Department of Housing and Urban Development (HUD) to reinstate a federal Law that requires both the local and the state government address segregated housing patterns as a condition deemed to receive HUD funding. The group alleges that HUD unlawfully suspended the requirement in January 2018 which removed the civil rights oversight of as much as $5.5 billion per year until 2024 for almost 1,000 jurisdictions. HUD claims that the funding receipts revert to a fair housing planning process that itself and the Government Accountability Office (GAO) have found as effective. Since the Fair Housing Act was passed in 1968, the obligation to the Affirmatively Further Fair Housing (AFFH) has applied to all of the HUD funding, but this was not the case until July 2015 when HUD adopted the first effective set of the federal regulations. This was to guide compliance
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efforts of the local and the state recipients of the HUD’s block grant funds. The AFFH rule is a rule that was passed with a lot of considerations and consultation with the stakeholders and before finalizing it, HUD had to consider 1,000 formal comments. Suspension of the AFFH rule comes as a betrayal to most fair housing advocates around the country since most of these groups had to convince many local governments to espouse strategies that would completely eliminate the housing discriminations and promote residential integration. The need for the AFFH rule is evidently clear, without it, some municipalities will be affected and opportunities for millions of people be affected. Suspension of the AFFH rules means that some of the municipalities will receive the government funding with no accountability. The NFHA alleges that HUD’s attempt to dilute the AFFH rule violates the Administration Procedure Act, which outlines the procedural and the substantive requirements for the implementation and modification of the Federal Regulations. What’s even surprising is that HUD took action without first consulting with the advocate groups. In addition, NFHA also claims that HUD violates its own AFFH Duty. What NFHA wants is a court order requiring HUD to restart the implementation of the AFFH rule with immediate effect. What most people don’t know is that the AFFH rule has created a greatly improved system for the HUD grantees which includes the local governments, the states, territories and the public housing authorities and to
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fulfill their obligations to the AFFH. The AFFH Rule required the Assessment of the Fair Housing (AFH) is an in-depth, holistic planning process that leverages data and the robust community participation to notify the selection and the prioritization of the measures to overcome the entrenched barriers to the housing discrimination, residential integration and the access to opportunity. Under the new rule, HUD grantees are required to conduct AFHs on a regular basis by using the HUD approved tools. The Agency can either approve the AFHs or reject them after the review process. Contrast to what was there in 2015 where the jurisdictions were not required to submit their fair housing plans to the HUD. Government Accountability Office’s analysis found that many of the jurisdictions did not complete them. Instead, the jurisdiction were falsely certifying HUD that they were fulfilling their obligations to the affirmatively furthering fair housing when they were not actually doing it.
Sources; http://nationalfairhousing.org/2018/05/08/civil-rightsgroups-sue-hud-over-suspended-implementation-ofaffirmatively-furthering-fair-housing-rule/
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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
IN TECHNOLOGY
Understanding The Benefits Of The BLOCKCHAIN IN REAL ESTATE INDUSTRY
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ith the Blockchain growing its influence throughout various industries and spheres of life, lots of real estate professionals ponder on how this might affect them. The reality is that the new tech, just like the internet will better the way we do property business. The only difference is that it will do so by a more significant margin.
Understanding the Blockchain The blockchain is an innovative technology that changes the way we do things; cause them to be more transparent and fast. It uses a decentralized system and public ledger for its operation. For better understanding, imagine yourself before a crowd of witnesses, and before this said audience you exchange your Trimmer for a price from the buyer. This crowd of witnesses will bear record of the transaction and can at any time attest that the trade occurred. Hence, on a later date, The Power Is Now Magazine
August 2018
if you or any other person in the audience tries to say otherwise, the copy of the transaction in the public ledger across all the audience will show that their claims are false. Also, if you try to resell the same product to another buyer, the record will show that you no longer own the right to that commodity. Thereby, improving both transparency and security You may be worried about the security of the ledger? Can’t it be hacked? Well, Satoshi Nakamoto, the person or people behind the creation of bitcoin and the first to introduce the blockchain, created it to be hack proof. This means it is impossible for any hacker to pull the feat even if he or she tries to do so with a supercomputer. For someone to hijack the tech, he or she must overpower the thousands to millions of interconnected PCs (audience). As you must have noticed, in basic terms, the blockchain is the connection of thousands of remote computers, operated by users that share
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or keep records of events that run between any two or more PCs in the network. These events appear on the public ledger, and each witness (connected PC) owns a copy of this ledger. The tech encrypts each transaction or agreement in the public record so that no one can tamper with it. Another benefit of this technology is that it removes the need for intermediaries for your financial transaction. All these digital currencies like Bitcoin and Ethereum are all applications of the blockchain and a means of exchange for users.
Areas Where The Tech Is Essential For Us The blockchain can assist in any trade and sphere. From the medical field to the financial institution, there is a spot for the technology and services enhancement it brings. So long as you and your partners have an agreement or record to keep, the blockchain can keep it safe for eternity. Here are some ways the tech can improve things for us: • In voting and election • Smart contracts • Liquidity • Management of Supply chain • Property rights • Personal records including our credit history • Intellectual rights
homebuyers each year with its fraud prevention and transparency capabilities The real estate business will benefit from the tech in various impactful ways. For example, with the help of smart contract creation, we can carry out our property agreements quickly, transparently, securely, and without title companies and other intermediaries. With smart contract, you can speed up the process of things like property records and escrows rapidly. In fact, with the help of the blockchain, we can buy or sell properties by carrying out some few clicks. Once you are through with that, the tech transfers the deeds of the building to the Buyer and his cash to you the Seller through cryptocurrency. It will also place the record of the transaction into the public ledger for all to see. In the nearest feature, it will send a copy of the deal to the right public records office for physical data-keeping. For those wondering what will be the fate of the system or entities that advise, and guide professionals in the field, you don’t need to worry, they will still be in effect. However, anything that has to do with the transfer of finance, transaction process, and security the blockchain will competently handle it. In recent times, companies in the real-estate, digital marketing, and banking sector are joining hands together under the blockchain technology to improve business reach and services. Companies like IClick, iHouse, Silver Porter Capital, and Fundamental Interaction Inc. amongst others are one of them.
• Criminal records • And Medical records. References:
How The Real Estate Industry Tends To Benefit According to TechCrunch, the advantages of using Blockchain in the real estate market have been mostly ignored, even though the technology has the potential to affect millions of
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https://www.execrank.com/board-of-directors-articles/ blockchain-technology-in-the-real-estate-industry-are-thereany-benefits https://medium.com/blockimmo/blockchain-and-thefuture-of-real-estate-6b1fdfb06f56 https://www.forbes.com/sites/ forbestechcouncil/2018/03/02/how-blockchain-can-reallyimpact-real-estate-investing/
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Local and National Events September 2018 SUNDAY
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
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2
3
4
5
The Power Lunch Webinar -The Power Is Now FTHB Webinar
9
10
Elevate Mortgage Summit
16
23
11
12
The Power Lunch Webinar -The Power Is Now FTHB Webinar
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24
6
7
8
The Power Is Now Marketing Session
Realtor Seminar at IVAR
2018 National Convention at L’ATTITUDE
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14
15
The Power Is Now Marketing Session
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19
20
22
First Time Homebuyer Seminar at Dunbar Real Estate Group
First Time Homebuyer Seminar at Heart and Soul Center of Light Church
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The Power Lunch Webinar -The Power Is Now FTHB Webinar
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27
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The Power Lunch Webinar -The Power Is Now FTHB Webinar
The Power Is Now Marketing Session
IN TECHNOLOGY
The Power Of Social Media: How To Leverage Social Media For Agents
C
onsidering the spontaneous explosion of the internet as a means of marketing, this has given marketers, as well as business owners the opportunity of reaching their target market easily. Internet has provided a very powerful and precise means for niche marketing thus reaching your marketing goals. Social media is one of the most powerful means of promoting a business to attain a certain prospects and gain leads. With a good and active implementation of social media marketing technique and strategy, a remarkable success can be attain within a short range of time.
Leveraging the Social Media For Real Estate The effect of social media in generating leads is enormous, which if properly leveraged by agents, will provide more channels to reach new and existing clientele base, in addition to that, it also helps in the generation of new leads. With a good marketing strategy, agents can reach their goals by making use of the tools provided by some of this social media platform. Agents can get a professional photo that will be used across all the platform they intend working with can have a good effect on the traffic u generate to your page.
What Is Social Media Marketing (SMM)? Social media Marketing (SMM) is a type of marketing which involves selling of products and services by making and sharing contents through social media platform. Activities such as positing of images, videos, images and text updates and some other contents that can attract, captivate and engage your targeted audience. This, thus in turn helps in achieving your branding and marketing goals. Report says that more than 80% of business owners in 2014 uses social media as one of the most important part of their business. And that 133% increase in revenue was achieved by business retailers who make use of social media channel to promote their business.
The Power Is Now Magazine
August 2018
Things to Consider to Gain Leads on Social Media How often should one Post? Earlier, gaining traffic to your page usually used to be by the frequency of post. The more you post the more the traffic you generate to your page. But this has changed, the social media engine now monitor the rate of engagements your post receive and that will then be used to determine the how traffic can be generated to your page. When posting, one need to take in mind the targeted audience and their appeal towards what will be posted.
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What to Share? When it comes to sharing your contents, people don’t like what bores them. One way of attracting new prospects to your page is by making a good and attractive heading for what you want to post and the first two line of your post should be able to lure your audience in reading more. Also, your content should at least have one image that will captivate the mind of your audience attached to it. This will sure keep them coming.
Actively Connect with your Audience A research conducted by Texas Tech University, discovered that customers were more loyal to brands with an active social media profile. This is because their audience where more informed with happenings of the business and
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the ease of getting help without waiting for a longer time. With an active profile that could connect with your audience, customers feel valued as people and not as another source of revenue for the company. This will in turn help you to gain the attention of your competitors especially in highly competitive market.
Existing Competition Note that your competitors are already social and most of them are present on multiple social media channels. Report shows that 91% of retail shops own at least two to three social media page on different platforms but most of them are not doing it right. Taking time to develop your strategy for handling your page, posting what captivates your audience and responding to their message is the key to moving ahead your competitors.
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The Power Is Now Online Events Every Tuesday at 12:30 PM and 7:00 PM, along with every Thursday at 12:30 PM, we are live on Youtube!
Conclusion Social media possess the power to build you as an agent and seizing the opportunity now will improve the chances of success. Most people are on the internet in one way or another and tapping into the realm of social media increases your chances of succeeding. Using the internet for word of mouth in generating leads is a key to achieving a spontaneous market growth.
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.
References http://www.adweek.com/socialtimes/social-businesstrends-2014/498129 http://www.socialmediatoday.com/content/impactsocial-marketing-trends-digital-marketing http://www.adweek.com/socialtimes/yesmail-retailbrands-social-media-channels/622117 https://www.contentfac.com/9-reasons-social-mediamarketing-should-top-your-to-do-list/ http://www.quora.com/How-can-real-estate-agentsleverage-social-media
The Power Is Now Magazine
August 2018
See the weekly topics at: thepowerisnow.com/events/
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IN YOU
How to Build up Your Own Real Estate Portfolio
R
eal estate has long been considered an important source of wealth and growth. It is a great strategy to secure investments, as under normal circumstances equity is sure to raise the value of the property. Although it seem obvious, creating a real estate Portfolio will provide an important source of cash flow that can be easily turned into larger profits and bigger investments. As Billionaire investor, John Paulson said, “If you don’t own a home, buy one. If you own a home, buy another one. If you own two homes, buy a third.” As you seek to protect and increase your assets, understanding the steps to build up a real estate portfolio will provide you a guide to a comfortable retirement fund.
The Power Is Now Magazine
August 2018
1. What kind of portfolio you want, rental, or wholesaling. To build a successful portfolio, it is essential to plan the short and longterm goals you want for your assets, if you want to pursue a wholesaling or rental property strategy. Each one has its own benefits and drawbacks. Wholesaling, for instance provides quick returns with very little investment. In short, wholesaling consists in buying foreclosed property or any other kind found at a bargain and selling them to a cash buyer for a profit . Since wholesaling does not provide a stable source of passive income, anyone looking to create a portfolio will need to offer several pieces of property to secure a steady cash flow.
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On the other hand, rental property provides a steady source of passive income that can be turn into more properties. In its essence, it a form of longterm investment that, although it may not provide quick cash flow and it requires a heavier investment, the exponential growth and steady flow of cash makes having rental property highly desirable.
2. Understanding your numbers Once you have decided what kind you portfolio you are looking for, the next step is to look at the figures involved in acquisitions, development, and expansion of assets. Well-balanced and clear figures are more likely to attract more investors and secure more loans. Listing prices, downpayments, mortgage loan applications, tax deductions, profit margin, as well as, returns must all be carefully taken into account before any venture. It is also important to consider any possible liabilities and operation costs. In the case of wholesaling the amount of time, a home can stay in the market or the amount of risk the investor is willing to take .
3. Manage your prospect assets The third step to having a profitable real estate portfolio is understanding the market. The real estate world is a business deeply integrated to the community it serves, so it is of paramount importance to know well the local area. For instance, while it is well known that great location is the cornerstone of real estate, this may not be enough to have a great portfolio . Market might be oversaturated or competition too stiff leaving growth opportunities very limited. One way overcome this limitations is by diversifying the portfolio . In the end, having a mixture of commercial, residential and multipurpose property can help mediate market imbalances and protect your investment.
4. Management The final aspect for creating a successful portfolio is management. It is recommended not to manage your properties alone. As your portfolio grows, proper management becomes more complicated and important. Taxes must be paid at a regular basis, tennets have to be look after and contractors need to be hired and negotiated with. It is best to look for a firm or company to oversee your portfolio . There a plenty of professional property managers, whose experience may prove invaluable to keep the operation running smoothly. In summary, real estate portfolios can become a great source of income and growth opportunity. By following the steps above, you are on the right way to become a real estate mogul.
PUTTING OUR CUSTOMERS FIRST: Let Your Search End Here For a Professional Realtor
DRE: 01804551
We specialize Residential and Commercial Real Estate as well as Property Management. Serving the Inland Empire, Orange and Los Angeles counties. We have been in business for over ten years and as seasoned professionals, we are capable of addressing all of your real estate needs. We are ready to assist you with all of your real estate needs.
Our approach is customized for each of our clients; our solutions are never onesize-fits-all. When you are ready to schedule a free home buying or selling consultation please feel free to contact us
FRAZIER GROUP REALTY “Your Real Estate Navigator� 3739 Sixth Street Riverside, California 92501 (951) 686-5261 info@ fraziergrouprealty.com www.fraziergrouprealty.com
IN COMMUNITY
Five Ways to Stop Worrying about Homeownership
O
wning a home is one of the stepping-stones towards long-lasting prosperity. For many families, it represents the culmination of years of hard work and perhaps the largest investment they will make. Yet after the mid-2000’s market crash, many do not see homeownership as a safe investment it once was. Many have become wary of the expenses, responsibilities and risks owing a home can bring. Nonetheless, there are many reasons why owning a home be a matter of great distress.
1. Modular homes can be a solution for finding the perfect home For many new homeowners not finding the right home can be quite worrisome. There plenty of aspects to take into consideration such as location, affordability and size. High prices and low stock have made locating the perfect home particularly difficult, especially in overheated markets such as San Jose, CA. Yet despite
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payments and avoid any late fees.
3. Avoid being “house poor” Another great cause of anxiety is in being short in cash after purchasing a home. There many who find themselves in situation Investopedia calls “house poor”, which means that they are able to afford the mortgage, but cannot cover other expenses.
the difficulties, Reuters reported in April that home sales have increased across the US. For those looking for affordable options prefabricated homes can be a great solution. Companies such as Factory OS located in Vallejo, CA or Turkel Design in Boston, MA offer stylish modular homes at lower prices in much shorter time than a newly built property. These new type of property can be tailored to specific needs and are ideal for new homeowners.
2. Failing to pay the mortgage does not automatically leads to foreclosures Perhaps the biggest concern for homeowners is not being able to meet mortgage payments, especially if there is a financial strain in the family. However, some measures can be taken into account to prevent missed payments. The best solution is to save aside some money to cover one or two payments while the situation causing financial strain resolves. Having health insurance coverage is also particularly helpful as it can cover any unexpected medical bills that can take up a large amount of the homeowner’s income. Furthermore, if payment is not made on time, there will be no immediate risk of foreclosure. As Realtors® explained, ever since the 2008 crisis banks are wary of taking properties straightaway as it may represent a financial loss . Generally, it will take 90 days of missed payments before defaulting on a loan. Likewise, there is usually a grace period of 7 to 14 days to meet any
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While there can be many unexpected payments when purchasing home, homeowners should beware of not paying above 30% of their income. If this becomes impossible, there are several solutions. One option is to try to reduce non-essential expenses costs such a cable subscriptions or night outings. Homeowners should avoid taking lavish vacations or they can trade cars for ones with lower payments. If everything fails downsizing should not be completely discarded. Selling the property and finding a cheaper mortgage can help bring in much needed cash and allow improve financial situation.
4. Protect the property from natural disasters 2017 proved to be a difficult year for many homeowners who lost their homes due to natural disasters. An unusually high hurricane season caused billions of dollars in damage as territories such as Huston and Puerto Rico were struck by hurricanes Harvey and Irma respectively , while California experienced the costliest wildfires in record . Although natural disasters are unpredictable, there are several ways to decrease the likelihood of losing property. Aside from earthquakes and volcanic eruptions, scientist have become more precise in their predictions. They are able to track hurricanes and predict their landfalls, as well as, predict the wind patterns that spread wildfires. This is why it becomes of paramount importance to follow their indications and safeguard real estate. Moreover, if the homeowner lives in a high-risk
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area, getting proper home insurance is essential. Although it might seem as an extra expense, should anything happen, the homeowner might be able to recover from the loss and start anew.
5. Safeguard property value. During the heyday of the crisis, millions of Americans saw their homes drop their value to the point of being worth less than the mortgage. However, with the current real estate climate and new regulations another ma jor crisis is not at verge of happening. In fact, home shortages and lack of affordability means that those who were able to overcome the crisis have seen their homes appraise in value. While currently homes and real estate property is rising in value in most markets, it is always important to improve the equity of the property. Renovations and extra features can always jack
up the price and protect investments. While the real estate market can seem grim and with lack opportunities, the fact is that there are reasons to worry less and think more about a better future. By following some of the recommendations made in this article, homeowners might stop worrying for the homeownership and begin to think about increasing their portfolio. References: https://www.reuters.com/article/us-usa-economy/u-shome-sales-increase-strongly-inventory-remains-tightidUSKBN1HU1YM https://www.dwell.com/article/22-modern-prefabcompanies-that-every-homebuyer-can-rely-on-451c7f1f https://www.washingtonpost.com/lifestyle/magazine/ prefab-houses-were-once-the-holy-grail-of-design-so-whyarent-there-more-of-them/2018/06/11/2af7f14a-1011-11e88ea1-c1d91fcec3fe_story.html?utm_term=.ed39ee46f6fe https://www.investopedia.com/slide-show/5-real-estatefears/
ACHIEVE THE DREAM EVENT POMONA NACA FOUR-DAY HOME OWNERSHIP EVENT
THURS. AUGUST 2ND Through
SUN. AUGUST 5TH 8:00 AM TO 8:00 PM
Fairplex Building 9 1101 West McKinley Ave Pomona CA 91768 Attendees:
Homebuyers
Become Mortgage Pre-Approved During This Event ► Attend Homebuyer Workshops throughout the day. Go to www.naca.com to pre-register. Walk-ins are welcome. ► Meet with a housing counselor to be pre-approved for NACA’s Best in America Mortgage or other mortgage. ► Have NACA underwriters review your file for mortgage pre-approval or next steps.
Documents To Bring: Pay Stubs Most recent 30 days
W-2s Last two years
Tax Returns Last two years
Bank Statements Last 90 days for all accounts
Credit Card Statements Last 90 days
Self-Employed 12 Months of Bank statements
&
Homeowners
(with an unaffordable mortgage)
For More Information:
WALK-INS ARE WELCOME
Visit www.NACA.com
SPONSORED BY NACA (NMLS #4082) www, nmlsconsumeraccess.org NACA arranges loans with third party providers.
Call (425) 602-6222
homebuyer’s workshop Shiloh Baptist Church PASTOR JESSE DAVIS
HOST SHILOH BAPITIST CHURCH DIRECT: 5107834066 OFFICE: 5107839886 ADDRESS: 22582 SO. GARDEN AVE., HAYEARD, CA, 94541
ERIC LAWRENCE FRAZIER MBA SPEAKER | PRESIDENT & CEO CALBRE # 01143484 | NMLS # 461807 OFFICE: 800-401-8994 X 703 ERIC.FRAZIER@THEPOWERISNOW.COM
WWW.THEPOWERISNOW.COM
REGISTER AT: WWW.BUYHOMESEMINARS.COM
‣‣ 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
SATURDAY, AUGUST 4 9:30 AM - 12:30 PM SHILOH BAPTIST CHURCH
22582 South Garden Ave. Hayward, CA 94541 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.
19734 Park Hill Rd | Middletown 95467
$39,900
BRING YOUR PLANS, CAMP GEAR and GOLF CLUBS to build your lovely private estate w/ possible in-law unit! These combine lots (141-461-04 and 141-461-03, must be sold together) total .65 acres of never developed land in the exclusive community of Hidden Valley Lake. The land is situated centered on a short street with a panoramic view of Cobb Mountain and Mt. Saint Helena. Mature trees provide a canopy of shade.The community hosts lots of special features such as a community center, horse trails and a KOA campground. Located a short distance to the 18-hole golf course/ Pro Shop, shopping center and the historic community of Middletown, situated at the southern Gateway to Lake County. Hidden Valley Lake is a reasonable commute to the Bay Area, Napa and/or Sonoma Counties to the south or Colusa and Yolo Counties to the North. Soil analyses on file, water hookup, electricity, cable and phone are available.
APRIL HARRIS
CalBRE # 01988009 Phone: (800) 401-8994 x 717 Direct: (707) 814-5457 april.harris@thepowerisnow.com www.thepowerisnow.com
ALEXANDRA PHILLIPS
CalBRE # 01987453 Phone: (800) 401-8994 x 753 Direct: (707) 494-2028 alexandra.phillips@thepowerisnow.com www.thepowerisnow.com
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.
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