JULY 2017 Vol. 04 | Issue 7
the PIN magazine
THE FUTURE OF
MULT- UNIT PROPERTIES FINANCING OPTIONS TO CONSIDER
WHEN BUYING A HOME
WILL NEW CALIFORNIA LAWS
AFFECT REAL ESTATE 2017 TECHNOLOGY TRENDS
IN REAL ESTATE
INTERVIEW WITH BISHOP SMITH: THE GOAL BEHIND HIS PURPOSE CONFERENCE
This month, NAREB is having their 70th Annual Convention in New Orleans, LA!
July 28, 2017 - August 1, 2017 “Building Black wealth Through Homeownership”
the power is now will be there, will you? REALTISTS, get your tickets and full details here: http://www.nareb.com/events/70th-annual-nareb-convention/
Don’t Miss Out On
ANY OF OUR PREVIOUS ISSUES
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the PIN magazine THE POWER IS NOW INC. Vol. 04 | Issue 7
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 Goldy Ponce Arratia Managing Editor Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com Kim Collier Executive Director of Publishing (800) 401-8994 ext. 712 kim.collier@thepowerisnow.com
CONTRIBUTORS The Power Is Now Research Team
The PIN Magazine
July 2017
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the PIN magazine
CEO & Publisher Eric Lawrence Frazier, MBA 3739 6th Street, Riverside, CA 921506 Ph: (800) 401-8994 ext. 703
SALES National Sales Manager: Christina Kimble National Relationship Manager: Success Money
EDITORIAL Editor in Chief: Eric Lawrence Frazier MBA Managing Editor: Goldy Ponce
HEADQUATERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92506 Ph: (800) 401-8994 Fax: (800) 401-8994 Email: info@thepowerisnow.com www.thepowerisnow.com www.thepowerisnow.com/magazine
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STATEMENT OF COPYRIGHT: The PIN Magazine™ is owned and published electronically by The Power Is Now, Inc. Copyright 2013-2017 The Power Is Now Inc. All rights reserved. “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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TABLE OF CONTENTS
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52
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OUR COVER Independence Day
AI Devices on the Market Today
The PIN Magazine
July 2017
How to Pay off Your Mortgage Early
10
How to Thrive as a Green Realtor
12
Should You Invest in a Green Home?
16
The Future of Multi-Unit Properties
18
The Do’s and Don’ts of Investing in a Vacation Home
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When Should I Buy a Timeshare?
24
Financing Options to Consider When Buying a Home
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2017 Home Design Trend
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Are Rents Too High for American Millennials?
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Technology Trends in Real Estate in 2017
32
Mobile Technology is Revolutionizing the Real Estate Sector
36
Market Overview - San Diego Real Estate
38
The Top Five Best Cities to Buy a Home in Your 20s
44
Will New California Laws Affect Real Estate?
www.thepowerisnow.com
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INTERVIEW Bishop Smith
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Beating the Lender: What to Do When Your Home Is in Foreclosure
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Editor’s Letter...
D
ear Esteemed Readers,
I hope everyone is having a prosperous summer. As we all know, summer is the peak of real estate season, so now is the time to network and get to know your buyers. Here at The Power Is Now, we are riding the momentum of the summer buying season by adding four new agents to our team. Please help us welcome Charlene Neely, Robin Davis, Linda Quinn, and Anita Jones. All four agents bring unique qualities and strengths to our company and are located here in both southern and northern California. On our cover this month we celebrate Independence Day and talk about exactly what it means for real estate agents. Independence Day is not just a holiday to celebrate our country’s freedom and the sacrifices made by many heroes around the world; it is also a day for realtors to reflect on and actualize their dreams. For me personally, I love to use this day to spend with my family in gratitude as well as to plan for the rest of the year. Inside this issue, we delve into the future of multi-unit properties and the impact they can make on your finances in the long run. This is a subject that I educate so many people about, and it is a great way to build wealth. Wealth is not luck, but a choice backed by the decisions one makes with their life and towards their financial goals. You can learn more
The PIN Magazine
July 2017
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about this every Tuesday on my Facebook live at The Power Is Now Inc page. Also in this issue, we weigh the pros and cons of buying a vacation timeshare as well take as discuss the new laws signed by Governor Jerry Brown that could change the way we buy and sell real estate in California – two important elements you do not want to miss. Of course, we do not forget about the nuts and bolts of real estate, as we take a closer look into the advantages and disadvantages of paying off your mortgage early and questions that may arise when thinking about buying a green home. We also preview the latest technology, called the Supra e-Key, and how it is revolutionizing the way in which realtors can now access their homes. I am pleased to announce that this month I will be hosting a workshop at the Purpose Conference on July 19th-22nd at Zoe Christian Fellowship in Whittier, California. Please come and join this amazing conference hosted by Bishop Ed Smith. Besides myself, there will be several other speakers, including Frederick Price. This is an event you do not want to miss. To register for the four-day event or get more information about it, please visit their website at www.zoeassociation.org. Lastly, thank you for your continued support and readership. Our team is dedicated to you. We want the best from you, so we are dedicated to bringing the best of us. 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.
www.thepowerisnow.com
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IN GREEN
HOW TO THRIVE AS A
GREEN REALTOR
T
he last few years have been marked by a decisive shift toward clean energy. A 2015 study published by Nielsen on sustainability, cars, and consumer trends found that from a global pool of participants, 45% of responders said that they would choose a product based on its sustainability. The desire to be eco-friendly does not stop at transportation: the US saw growth of 29% in the use of solar power in 2016 (Vaughan). In order to keep up with current trends, the real estate industry has also been making strides in sustainability, and offers several green certifications to agents wishing to take their business to the next level.
The PIN Magazine
July 2017
What is “Going Green” “Going Green” is a term that is used to describe the mindset and practices focused on shrinking your carbon footprint and becoming more conscientious about conserving energy and helping the environment. This can mean installing solar panels in your home, using energy-efficient technology, or buying from companies that have high sustainability ratings.
How to Go Green If you are a realtor looking to go green or become an eco-friendly lifestyle real estate agent, there are several programs that offer the
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green designation. In general, these programs can be completed in less than a week and involve learning about the different aspects of green real estate through educational courses that cover topics such as marketing, clean energy, and the environment. The course material can include more technical aspects, like retrofitting older homes with new technology and training on how to better represent and advocate for buyers that are looking to go green.
Being a green realtor involves more than selling eco-friendly properties. As a green realtor, you can help prospective buyers identify the top-rated green brands for any appliance upgrades, complete energy audits, and advise clients on which energy-efficient enhancements they should incorporate or skip.
How to Succeed 1. Know your buzzwords: Words and marketing can have a significant impact on the choices we make, and the choice to buy a home is no exception. The National Association of Home Builders found in a 2015 study that consumers were more than twice as likely to find value in a home that was advertised as ‘eco-friendly,’ as opposed to ‘green.’ When communicating with buyers, it is imperative to connect with them on a personal level and use words that resonate with them. For example, using phrases like “lower bills” to discuss energy output places the phenomena that you are describing in the buyer’s terms and makes it more accessible to them.
2. Identify and avoid greenwashing: Many businesses practice greenwashing by claiming through extensive marketing campaigns that they are sustainable and environmentally friendly, when in reality they are not. This is a harmful practice that ultimately causes damage to the environment by enticing
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consumers to buy their products. Prospective buyers may not know the difference, but as a green designer, you can help guide them towards energy efficiency.
3. Be passionate: In being passionate about the environment and clean energy practices, you will attract like-minded clients that you can use as a network to build your business. Follow up with recent buyers to see how they are enjoying their new eco-friendly home and remember that being authentic with your buyers is an investment in your future.
Conclusion The time for going green is now. Our planet and resources are in danger, and it is up to us to take an active role in reversing this trend. With a green real estate designation, you will be in a position to make a significant positive impact not just on your clients, but also on your community and our planet.
• Nielsen Company, The (2015). “The Sustainability Imperative”. www.nielsen.com. Retrieved from http://www.nielsen.com/uk/ en/insights/reports/2015/the-sustainabilityimperative.html.
• Sichelman, L (2016). “Green Wordplay: What’s in a Name?”. The Housing Scene. Retrieved from http://www.uexpress.com/ housing-scene/2016/3/11/green-wordplaywhats-in-a-name
• Vaughan, A. (2016). “Solar Power Growth Leaps by 50% Thanks to US and China”. The Guardian. Retrieved from https://www. theguardian.com/environment/2017/mar/07/ solar-power-growth-worldwide-us-china-ukeurope.
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IN GREEN
SHOULD YOU INVEST IN A
GREEN HOME?
W
e have been given resources that sustain our health, homes, and environment. Accessibility to these resources will not last forever, so it is advised that we make a conscious effort to minimize our impact on them. Since the start of Industrial Revolution, populations have been increasing, vastly impacting the relationship between human beings, the earth, and ecology. The population grew to about 700 million people in the mid-1700s. The number of people in the world at that time and the rapid increase in human development
greatly affected the depletion of resources in our environment.
In the 21st century, there are activist groups, advocates, and organizations that spread awareness about being more eco-friendly and working towards a sustainable lifestyle. There are choices and cutbacks to be made in order for this to be a lifestyle. One way to start is by choosing the right kind of home to live in. A green home will make a great alternative and is good for the environment.
What is a Green Home? According to the EPA, “Green building is the practice of creating structures and using processes that are environmentally responsible and resource-efficient.� A green home is a dwelling structure that conserves energy, water, and other resources. It is a progressive effort towards a sustainable lifestyle. The materials used for green homes are nontoxic, making it suitable for anyone to live in the home.
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July 2017
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The Cost of Green Homes People may have a general interest in buying green homes. However, the cost of the green home tends to deter people from actually buying one. Building a green home does not have to be expensive. Just like building a regular house, the design, the size of the house, and the materials required all play a part in the expense of the green home. Essentially, the materials used for the green homes are recyclable and easier to replace. Money spent on maintenance and repairs should be spent wisely as energy and gas should be used minimally.
To cut back on costs, it is recommended to buy energy-saving appliances that conserve water, electricity, and gas. Installing solar panels is a good long-term solution for energy reliance. The sun release four million tons of energy every second! As humans, we use less than .0001% of that power. It generally costs between $500-$2,244 per year to maintain a green home if its sustainable materials are durable, good quality, and have optimal performance.
Why Should People Invest in Green Homes? A green home is a good investment for many reasons. There are many benefits for the homeowners, and of course also for the environment. The first reason to consider is the quality of life. Although air pollution can be a ma jor problem, living in a green home will reduce the toxins in the air, allowing homeowners to breathe fresh air. In addition to the quality of life, green homes have better ventilation because of the natural resources. Another reason to invest in a green home is to conserve our planet’s natural resources.
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In the construction of the green home, everything from the design plan to the construction should match sustainable and efficient qualifications and must be certified. Unfortunately, there are buildings in a fresh new phase that are being labeled as “green certified”, which is very misleading. Overall, owning a green home shows the advocacy of the sustainable future. The decision to invest in one can persuade others to do their research and see the benefits it has on the environment and for homeowners.
Although the Industrial Revolution contributed to the overuse of natural resources and the emission of fossil fuels and greenhouse gases, it is still possible to live a lifestyle that supports the environment. Investing in green homes saves money and resources, and increases value in the housing market. Green homes are durable, so they are a long-term investment. They contribute to the world by promoting sustainability, which is very important for our environment.
References • Lamb, E. (2011, September 18). The Ecological Impact of the Industrial Revolution Retrieved from http://www.ecology. com/2011/09/18/ecological-impact-industrialrevolution/
• Nally, B. (2016, November 29). 6 Tempting Reasons to Install Solar Panels. Retrieved from https://www.solarpowerauthority.com/mostappealing-reasons-to-install-solar-panels/
• Developer, L. (2017, March 30). Why Should You Invest in a Green Home? | Green Building Benefits. Retrieved, from http://lokaa. in/blog/invest-green-home-chennai/
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are you ready
to become a vip agent? Benefits:
• Increase your Brand on the Web & Social Media • Promote your Listings and Brand via Online Radio and Online TV • Promote your Listings and Brand in our national Online Magazines • Receive Lead Management support from inquiry to closing • Receive Social media management support on five online platforms • Co-brand our Online First Time Homebuyer Live Monthly Seminars • Received professionally produced Videos educating consumers and selling real estate • Received professional ghostwriting for your Blog and Magazines articles • Receive Business Coaching, Planning and Accountability support • Receive Business and Technology support for Websites, Landing Pages
GET STARTED TODAY! Eric Lawrence Frazier MBA Broker | President and CEO CA BRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243
www.thepowerisnow.com eric.frazier@thepowerisnow.com Mobile: 714-361-2105 Office: 800-401-8994 ext. 703 Fax: 800-401-8994
IN ECONOMICS
THE FUTURE OF
MULTI-UNIT PROPERTIES O
ne of the many ways that investors make money is through real estate. Many investors will tell you that investing in property, such as buying a house to live in, really is not investing. Grant Cardone, for example, says that “buying a house is for suckers.� Instead, the money is to be made by investing in multi-family apartments that will continue to be beneficial to an investor’s pockets over the years.
Multi-Unit Properties Will Continue to Grow Multi-units can be used by anyone. Those in retirement normally look to get out of the expense and upkeep of a home and into something that is easily maintained. This is where multi-unit properties come into the picture. They are perfect for someone in retirement. Over 75 million baby boomers are headed into retirement. That means that more multi-unit properties will be needed to accommodate their demands.
Now is a perfect time to invest. Also, many Millennials are not buying homes as well. Instead, they are renting, and multi-unit homes are generally more affordable to renters. Most college graduates are laden with student loan debt, making it nearly impossible for them to be able to afford or even get approved for
The PIN Magazine
July 2017
a mortgage. Instead, multi-unit apartments are an easy and affordable solution to their problems.
More and More Are Built According to a report by Bill Conerly, multifamily housing construction is doing extremely well. Forbes magazine says that housing units in buildings with five or more housing units comprise about 25% of all housing units constructed. In 2014, that figure was even higher, at 35%. Multi-family units are becoming more and more popular, which means that now is the time to invest in them.
Tips Every Investor Should Know Real-estate investing can give you the advantage of using debt to purchase a property. A building may have an asking price of $400,000, but can be purchased for 25% of that price. This means that you already control 4X the value of the property. Also, property values tend to increase as the net operating income of the property improves. This means that the better you manage and care for your property, the more you could be making from it.
There are also tax benefits and hedges on inflation. Buying bigger multi-unit properties 16
may actually help you make more money in the long run. If you have a 20-unit building, you can still make it if even a few units are vacant. However, if you have only a 5-unit building and you are missing renters, this could really affect your finances.
and more will continue to be built, and they will continue to be the best investing choice in terms of real-estate in the immediate future. If you are looking to invest your money in something, multi-unit properties appear to be the smartest option.
Location Is Important When investing in multi-unit properties, keep in mind that location will play a key role in finding potential renters. Cities, where employees can walk to work, with little commute time, will give your units an incentive to the renters. This is another reason why the future of multi-unit properties looks so bright: the ability to live so close to your job in the city. The more people choose to work in cities and live close by, the more of these buildings will be constructed. This then means that more of these buildings are available for investors to purchase and make a profit from.
Conclusion According to a 2015 article published in the New York Times, on average, 770,000 new rental households have emerged each year since 2004. Multi-unit properties are on the rise, and show no signs of slowing down. More
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References:
• Cardone, Grant (2016, Aug 16) An Investor who owns 4,000 apartments explains why multi-family real estate is the best investment he’s made. Retrieved from http:// www.businessinsider.com/an-investor-whoowns-4000-apartments-explains-why-multifamil y-real-estate-is-the-best-investmenthes-made-2016-7
• Conerly, Bill (2014, May 19) MultiFamily Real Estate Forecast: 2014-2020. Retrieved from https://www.forbes.com/sites/ billconerl y/2014/05/19/multi-famil y-realestate-forecast-2014-2020/
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IN ECONOMICS
THE DO’S AND DON’TS OF
INVESTING IN A VACATION HOME W
ith the passing of time, the American dream seems to have expanded to include a vacation house. Whether that is a cabin in the mountains or a beachfront bungalow, there is an undeniable appeal in having an accessible getaway. More recently, however, due in large part to a burgeoning desire to see new places and to venture into the unknown, investing in vacation properties has declined.
Between 2015 and 2016, there was a 21.6% decrease in vacation home sales, with only 721,000 vacation homes sold last year. Studies indicate that these properties are used primarily as vacation destinations, then as homes for future retirement, and then as investment properties. If you are thinking about purchasing a second property to use as
The PIN Magazine
July 2017
a vacation home, here is a list of considerations to keep in mind as you explore your options.
Do pick a place you enjoy If you want to purchase a second property as a vacation home, make sure that it is someplace that you actively look forward to going. This might sound self-explanatory, but some people buy vacation homes in places they think might be nice only to come to the realization that the ski lodge they purchased up in the mountains is not the best place to be if you don’t enjoy the snow. Additionally, it is a good idea to choose a vacation home that is accessible from your primary residence in order to get the most out of the investment. If it takes more than a few hours to get to your vacation house, the likelihood of you visiting diminishes.
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social media sites to rent out your property.
Do avoid buying a timeshare During the real estate boom of the 1960s, the number of timeshares and land developers multiplied at an astronomical rate. Because business was growing so quickly, legislation surrounding it could not keep up and the timeshare business saw a rise in fraudulent activity and scams. While that is no longer the case today, it can be difficult to get out of a timeshare agreement if you have a change in economic circumstances, as timeshares are notoriously difficult to sell.
Do not underestimate how much a vacation property will cost The costs to own a vacation home include repairs and maintenance while you are away. It is estimated that you should set aside between 1-2% of the total cost of the house for repairs in the event of unforeseeable circumstances, like a water pipe breaking or a hurricane if the property is near the ocean.
Do be practical If you are considering renting out the house when you are not there, be realistic about how much money you will make after paying for a caretaker and cleaner. When you rent the property out, your house becomes a microhotel, and it is important to be frank with yourself about the costs of operation. Annually, this might give you a little extra cash; but most likely you will be spending any profit on taxes, upkeep, and other expenses.
Do not forget about the Homeowner’s Association Annual dues need to be paid. In terms of renting out your vacation home, if you want to rent property, check with your local homeowner’s association. There may be restrictions on using
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Do your research Doing due diligence is especially important if you are looking at owning places outside of the United States. In many countries, property laws are much more opaque and open to interpretation. Some countries do not allow you to own the land of your property, while others are economically or politically unstable. Both of these scenarios could result in ma jor losses on your investment if the government wants to take the land back, or if there is a period of conflict. Always check the State Department’s country report before you travel or invest overseas.
Owning a vacation property can be a rewarding experience, but that does not mean that it will not take hard work and effort to make it so! It is important to manage your expectations of the financial return on the property, and it might be worthwhile to shift your perspective to view the house not only as a financial investment but as an emotional one as well. If you put in the time to make a second house a vacation home, then it is an investment that will pay off for you and for generations to come.
Reference: • Riggs, A (2017) “Vacation and Investment Home Sales: A Breakdown for 2017”. Economists’ Outlook Blog. Retrieved from http://economistsoutlook.blogs.realtor. org/2017/04/26/vacation-and-investmenthome-sales-a-breakdown-for-2017/
• Duling, T (2015) “5 Things No One Tells You About Owning Vacation Rentals”. Bigger Pockets. Retrieved from https://www. biggerpockets.com/renewsblog/2015/02/17/5things-no-one-tells-you-vacation-homerentals/ 21
IN FINANCES
WHEN SHOULD I BUY
A TIMESHARE? A
ccording to the American Resort Development Association (ARDA) timeshare, vacation plans generated $8.6 billion in annual sales in 2015. Traditionally, when you think of a timeshare you find yourself visualizing an elderly couple enjoying themselves at a quiet resort. However, this is no longer the case. The ARDA says that the median age for timeshare ownership today is 39, and nearly three-quarters of owners have college degrees. Timeshares are really for everyone: couples and families, old and young.
Should You Buy a Timeshare? There are a few things to consider before you go purchase a timeshare. For one, it is probably not the smartest choice for an investment. Timeshares are for those looking to get the most out of their future vacations. They are more of a luxury than anything else. So if you are looking to make great memories on your summer getaway each year, then a timeshare could be perfect for you. Also, make sure to shop around. Once you pick a timeshare, it is not always easy to change, and you cannot always trade locations. So make sure you are 100% sure before you sign the paperwork.
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July 2017
The Pros of Buying One of the benefits of buying a timeshare is that there is a ton of competition. This means you should never have to pay full price for your purchase. You have the leverage – use it. Timeshare companies tend to offer free gifts and trial rentals as well. So make sure you make the most out of your negotiations before you make your final decision.
But according to the timeshare industry, over a 20-year period, a family of four could save over $25,000 on accommodations by staying in a timeshare rather than spending money on hotels. Another benefit is that you may be able to trade times and locations with other timeshare owners. This means you can vacation at new places if you so choose. When you purchase a timeshare, you are only paying for what you use. In the long run, it could be a great way to save some money and enjoy a great vacation each year.
The Cons of Buying There are some negatives to buying into a timeshare as well. One of the main drawbacks is the annual fees and the lack of control you will have over their increase. According to Howard Nusbaum, the CEO
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and president of the ARDA, the average annual maintenance fee for a timeshare is $660. You will pay this fee whether you use the timeshare or not, and if you don’t pay them then the developer could foreclose on your timeshare.
like you are being pressured by a sales person to do so. Once you buy into a timeshare, it is not always easy to resell. You could be stuck with the expense for a long time.
Conclusion: There are also a ton of timeshare scams that you should be aware of. If you are trying to resell your timeshare, then beware: there are scams where the company claims to need certain fees for their services up front. However, they will never complete the sale of your timeshare. This means they took your money and stole from you. Timeshares can be a hard sell because the market is so competitive. Make sure you do not buy impulsively because you feel
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In the end, just make sure you do your research before you make such an expensive purchase on a timeshare. If you find yourself enjoying the predictability of a vacation in the same spot each year, then maybe it is right for you. Just remember, timeshares are an expense and a luxury, not an investment. Once you make the purchase, it becomes your responsibility – annual fees included. Be smart and shop around. Many people love their timeshare planned vacations, which is why the number of
sales generated each year by timeshares continues to grow. A timeshare might be perfect for you and your family to finally take the vacation you have always wanted.
References:
• Goldstein, Daniel (2016, Oct 31) 6 things to know before you buy a timeshare. Retrieved from http://www. marketwatch.com/s tory/6things-to-know-before-youbuy-a-timeshare-2015-02-17
• Kelemen, Ron (2014, Sept 16) Buying A Timeshare: The Pros and Cons. Retrieved from https://www.forbes.com/ sites/nextavenue/2014/09/16/ buying-a-timeshare-the-prosand-cons/#394d65f81098
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Help DPA Program is a grant
T
housands of people each year dream of becoming homeowners. The Help DPA Program may help that dream become reality.
This homebuyer assistance program currently provides lowto-moderate income families and individuals with a choice of a 3% to 4.5% Grant* that does not have to be repaid. The grant can be used towards down payment or closing costs. Many times this allows homebuyers to purchase a home much sooner than they thought possible. The Help DPA Program is available for the purchase of an owner-occupied single and duplex 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. *Grant approval is determine by many factors including your FICO Score. Minimum FICO score is 640.
PROGRAM FEATURES AT A GLANCE • • • • • •
Down payment assistance (Currently in the form of a 3% to 4.5% Grant)* For the purchase of primary residences in California New or existing properties are eligible Program is NOT limited to first-time homebuyers Income limits up to 140% of HUD Area Median Income
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 Video Chat: https://zoom.us/j/5443077305 Mobile: 714-361-2105 | 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 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.
ERIC LAWRENCE FRAZIER, MBA MORTGAGE SERVICES
APPLY ONLINE AT WWW.APPLYTOBUYNOW.COM OR CALL 800-261-1634 EXT. 703
Why Work with Eric Lawrence Frazier MBA?
Programs:
• 34 years of experience in helping buyers finance their home • BS in Business Administration and Management and a MBA in Finance • Real Estate Broker CALBRE # 1980407 • Experienced Business Consultant and Life Coach • Eric Frazier will counsel and guide you through the process. He will help you to make difficult decisions and support you until the loan is closed.
• • • • • • • • • •
• Obtain Preapproval online in 48 hours at www.applytobuynow.com • Join the Power Is Now Buyers Club for free at www.neverrentagain.com ERIC LAWRENCE FRAZIER MBA CA BRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com
Grant Funds for Down Payment Assistance 100% FHA Financing Programs Conventional Loans Government Loans Jumbo Loans None Prime Loans Commerical Loans Private Equity Loans Land Loans Note Loans Buy a Home 12 Months After Bankruptcy, Foreclosure and or Short-sale.
Email: eric.frazier@thepowerisnow.com Video Chat: https://zoom.us/j/5443077305 Mobile: 714-361-2105 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 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.
IN FINANCES
FINANCING OPTIONS TO CONSIDER WHEN BUYING A HOME C
redit markets in the US and across the globe have yet to recover fully from the 2008 subprime mortgage crisis. While mortgage rates have remained considerably low for over a decade, borrowers are still facing difficulties securing financing, especially for long-term projects such as buying a home. In 2016, the median credit score remained relatively high at 756, which is above the U.S. consumer average credit score of 695. The high credit score requirement means that
The PIN Magazine
July 2017
the average American is struggling to obtain financing to achieve the American dream of homeownership. The tight credit market has been blamed for the fall in housing inventory as builders shy away from constructing homes aimed at lower income Americans. As mortgage rates start to climb and the national housing inventory continues to decline, the average American is likely to find it becoming even harder to secure a mortgage. If you are one of those average Americans,
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here are five mortgage financing options that are friendly to low-income earners and that do not require a high credit score.
USDA home loan – zero down loan option This financing option enables you to buy a home without any down payment and at low-interest rates. It is sponsored by the US Department of Agriculture to foster development in rural areas. However, the rural development firms are not confined to the countryside; some of the areas funded through this program are suburban. Apart from location, other factors to be considered to determine eligibility for this loan include household income and credit history. Your credit score must be 640 or above to be automatically approved for the USDA home loan. However, for a manually underwritten loan, you can apply with a credit score below that.
HomeReady 3% down mortgage HomeReady mortgages are backed by Fannie Mae with the goal of helping minorities, millennials, and mixed families to achieve the American dream of homeownership. The program requires the homebuyer to make a 3% down payment and pay private mortgage insurance of as low as $160 per month. To get the best rates on this mortgage, you must have a credit score of at least 680. This is the lowest credit score requirement you can find on the market on a 3% down payment loan. The income limits on the HomeReady loan depends on locality with properties in lowincome census tracts having no income limit and those in high-minority areas depending 100% on the area’s median income. For instance, if you live in California, you can comfortably pay for a HomeReady mortgage with an income equal to California’s median income.
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The FHA loan program The FHA loan is sponsored by the government to help low-income households achieve the dream of homeownership. Under this program, buyers are required to make a 3.5% down payment and the seller is required to pay all or most of the closing costs. The minimum credit score for the FHA loan is 580, which is considerably low when compared to conventional loans. However, most lenders will not agree to finance you for this loan if your credit score is below 620. When it comes to mortgage rates, FHA loans are usually a bit cheaper. Under the FHA loan program, a borrower with a credit score of 660 usually pays the same rate as a conventional borrower with a credit score of 740.
The FHA 203K program The FHA 203k loan is similar to the FHA loan, only it comes with added benefits. This program allows the borrower to finance the purchase price plus rehabilitation costs into the same mortgage. The downside to all FHA loans is the insurance costs and paperwork involved. It is important that you shop around to identify lenders with the least costs. Consider other loan options if you do not have the patience to follow through with the paperwork.
Final word Having a low income or poor credit score should not lock you out of homeownership; there are numerous ways you can get financing – and with time, fully own a home. We recommend that you visit a housing counselor to help you evaluate your situation and offer advice on the best financing option. Follow The Power Is Now for more insights on homeownership.
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IN FINANCES
ARE RENTS TOO HIGH FOR AMERICAN MILLENNIALS? I
n 2016, a 25-year-old working for Yelp wrote an open letter to her boss expressing her difficulty living on a minimum wage of $8 per hour. The letter went viral immediately after publication, and a day later Talia received a termination letter from the company. While the letter received a lot of criticism from the public, it shed light on the plight of an ordinary Millennial living in an expensive region like the Bay Area. In the letter, Talia notes that 80% of her monthly wage goes to rent, leaving her with a little over $200 to divide among utility bills, groceries, fuel, entertainment, and other expenses. Instead of empathizing with her, critics believe that she is a typical example of a whining Millennial. Some argue that instead of taking it to social media and blaming her boss, she should have streamlined her finances by sharing a room, getting rid of her car, cutting her internet connection, or moving to a more affordable neighborhood.
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July 2017
But are Millennials facing unique challenges, or are they just more whiny than other generations? If you were to ask a Baby Boomer, they would tell you that Millennials are the most self-entitled, self-absorbed, lazy generation.
But this is far from the truth. Several studies show that unlike other generations, Millennials are facing myriad challenges – many of them created by the Baby Boomers. Take the college debt crisis, for instance. Is it not the Baby Boomers who created it by putting their children into debt even before they earned their first penny, inflating the cost of education, and creating meaningless college ma jors that cannot get them employment? Exacerbating the situation is the fact that there are fewer employment opportunities for Millennials today than there were back when Baby Boomers were in their 20s and early 30s.
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The housing nightmare Millennials, laden with debt and earning lower wages previous generations, are finding it hard to rent a home, let alone buy one. A study by Apartment List shows that between 1960 and 2014, inflation-adjusted rent prices have risen by 64%, while household income has increased by just 18%. This means that renting a home for millennials is much more expensive as a percentage of income than it was for baby boomers when they were at their age.
again. A study by the Harvard Joint Center for Housing Studies shows that at least 11 million Americans spend more than half of their income on rent. The crisis is even bigger in expensive cities such as San Francisco, New York, San Jose, and Honolulu, where rent is as high as $5,000 per month. Unfortunately, these are the cities with the highest employment opportunities for Millennials, meaning that their only options are to pay the exorbitant rent or commute daily.
The high homeownership and rental prices, coupled with high unemployment rate, low wages, and high debt are the key reasons a third of Millennials in America are living with their parents.
If they choose to commute daily, they are often left with nothing. Every Millennial looking to survive in today’s harsh economic conditions should invest in financial knowledge and grab opportunities as they present themselves.
Millennials are spending at least half of their income on rent
The Power Is Now offers insight into homeownership to ensure that you are prepared to identify and capitalize on opportunities as you come across them.
If you think that Talia’s plight of spending 80% of her income on rent is unheard off, think
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$399,900 - $415,900
This property will not last!
515 w. 58th street Los Angeles 90037 • • • • • • • •
3 bedrooms 2 Full baths Fenced yard, plenty of parking Very quiet street 2 minutes from 110 freeway 4.5 miles from Staple center 2.7 miles from USC 5.6 miles from The Forum
CHRISTINA KIMBLE Realtor
Cal BRE # 01395886 O: 800-401-8994 x 705 P: 714-709-1394 christina.kimble@thepowerisnow.com www.thepowerisnow.com
IN TECHNOLOGY
TECHNOLOGY TRENDS IN REAL ESTATE IN 2017 T
echnology is always developing, and 2017 has brought about some pretty amazing innovations for the commercial real estate tech industry.
Virtual Reality One of the biggest developments has come with virtual reality. It could give buyers a complete 360ยบ experience and bring a whole new viewpoint on property tours. It has been primarily used for high-end properties. However, now that the technology has become more affordable, you will see it grow more across the industry. Potential buyers will be able to preview real estate without having to travel to the location; this will give them the ability to save time and only look at the properties they are most interested in. If they are buying property that is not close to their current residence, this makes the process much easier for the buyer as well as for the real estate professional in charge of the sale.
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July 2017
Block Chain This is a new technology that you will be hearing a lot about in 2017. It will bring beneficial advancements to the real estate industry. It is said that it will be able to speed up the closing process and also cut cost as well. It is also able to reduce real estate fraud via increased security. With fraud becoming more and more of a problem, any technology that can help reduce that risk will help make potential buyers feel safer while dealing with the closing process. It is something to keep an eye out for as it becomes more developed.
Real Estate Apps If you are a real estate professional, real estate mobile apps have really made it easier to engage with clients. Now clients have more options and can find it easier to browse through different properties with mobile apps that they access to on their smartphones. With simple filters, it gives potential homeowners the ability to move through more properties.
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They can choose things such as the number of bedrooms, the number of bathrooms, the price range they are looking for, and location. Even those who are not seriously looking for a new home can keep an eye on the market in case a great offer comes along. This puts more eyes on the market, meaning there is a greater potential for sale opportunities.
Technology Available for Homes Voice-activated lighting or temperature controls used to be something that could only be found in the most luxurious of homes. However, as technology has advanced these are becoming more affordable and more common in homes. Now you can have all the smart appliances you want! Automatic locks are no longer just a thing of the future. So if you are looking into purchasing a new home, see what new technology the home has to offer; you might be surprised what you will find on the market this year.
Big Data Now that there are dashboards and analytics, real estate professionals are really upping their game. With the help of big data, professionals can now target certain consumers depending on sales, increasing the real estate professional’s revenue. These technology advances are really enhancing the ability of real estate professionals to market to clients. Knowing your target demographic not only saves real estate professionals time but also saves potential clients time as well.
“smart city”. This kind of advancement and improvement in an area will make it more desirable to potential real estate buyers.
As technology in the real estate industry becomes more and more developed, so does the ability for professionals to enhance their market. There are more options out there for buyers than ever before. This not only makes it a great time for people to start buying properties, it also means that it is a great time to become a real estate professional. Make sure you take advantage of all the upgrades in technology this year!
References:
• B. Sylvia (2017) Real Estate Technology Trends to Embrace 2017. Retrieved from https://snapprealestate.com/3-real-estatetechnology-trends-to-embrace-in-2017/
• (2017, Jan 16) 5 CRE Tech Trends to Watch in 2017. Retrieved from http:// real estatetechnews.com/blog/5-cre-techtrends-to-watch-in-2017
Smart Cities Cities around the world are taking steps to become more environmentally friendly. They are doing this with advancements in smart technology, such as traffic lights that use sensors and machine learning to improve traffic flow, and they are calling the result a
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IN TECHNOLOGY
MOBILE TECHNOLOGY IS REVOLUTIONIZING THE
REAL ESTATE SECTOR
The PIN Magazine
July 2017
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T
he growth of mobile technology is taking the world by a storm. From the banking industry to the real estate sector, new advancements are appearing at an exponential rate. Twenty years ago, the thought that there would come a time when real estate professionals would use mobile-controlled flying objects to record properties to afford clients a better look on properties would have seemed far-fetched. But today, some real estate professionals are already using drones to give clients a better look at high-acreage properties.
Richard Brosnan, a real estate agent in Queensland, has been using drones to take aerial photos of properties; according to him, it is the most efficient and effective technology he has witnessed in the recent past. Before the drones were introduced, aerial photos would only be taken from a helicopter, which is not only expensive but also takes a lot of time. Mobile technology is both allowing effective communication between different parties in the real estate sector and enhancing sales opportunities for real estate agents.
The Supra eKey Smartphone lock Have you ever heard of the Supra eKey? It is another of the most disruptive technologies in the real estate sector today. This technology ensures home accessibility through a smartphone-controlled lockbox system. Managed by the Real Estate Association and multiple listing services, the invention allows real estate agents to efficiently market and show listed homes. Through the Supra eKey system, authorized real estate agents can gain entry into listed homes. Data on each of the visits is collected and stored in both the lockbox and the secure SupraWEB database.
How the Supra system works The eKey is used on a Bluetooth box designed to receive a signal from an application installed in a compatible smartphone. Both the Bluetooth and the Basic lockbox can be opened by the
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eKey and the Active key. This means that if you prefer carrying the active key around instead of installing an app on your phone, you can still access homes locked with the eKey. However, to open an eKey lock using the Active key, you will need an additional device known as a Fob, which is purchased directly from Supra for $54.95. For the record, the Bluetooth box is an advancement of the Basic box, which has been on the market since 2002. One is required to point the Active key to the red spot on the lock box to unlock any of the lockboxes. If authorized, the lockbox will open, allowing access to the door key. When using the eKey, one is required to enable the Bluetooth device to allow the phone to communicate with the iBox. Bluetooth must also be enabled on the lock box by pushing up the key container on the bottom of the box until the red light on the lock box blinks to confirm that it is on.
What you need to get started The Supra eKey is one of the devices that every real estate agent who wants to remain competitive in today’s high-tech real estate must embrace. The basic eKey service goes for $15.23 per month plus a one-time payment of $50 for a new key service activation fee. Payments are automatic, meaning that you are required to provide your financial details upon registration. If you prefer using the Active key, you can lease it from Supra at the cost of $182 annually, plus the one-time $50 activation fee.
Bottom line Any real estate professional who wants to remain competitive in today’s high-tech environment must be ready to embrace innovation. Follow us for more updates on how technology is shaping the real estate industry. 35
IN REAL ESTATE
MARKET OVERVIEW
SAN DIEGO S
an tops the list of the hottest real estate markets in the US. However, the thinning housing inventory and skyrocketing home prices are locking out many potential buyers. If you are planning to buy a home here, consider yourself very lucky if you find a reasonably priced single-family or multi-family home. According to a report by the Real Estate Research Council of Southern California, residential building permits in San Diego have dropped by 37% since last year. The decline in the supply of new units has increased
The PIN Magazine
July 2017
demand, pushing prices up to unprecedented levels. A report by Zillow indicates the real estate market temperature of San Diego is “very hot�, with a median home value of $564,200. This is almost three times the national median home value of $198,000. Since 2016, the median home value has increased 6.4%, and Zillow estimates that it will rise by 2.6% within the next year. The median price of homes currently listed in San Diego is $659,000 which is almost
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three times the average price of homes listed nationally. The median rent price is no different, with the report showing it to be nearly twice the national median rent price.
Strong growth in the labor market Like all cities in California, it is not unusual for San Diego to have higher home prices than the rest of the nation. The robust labor market in San Diego has been attracting Millennials in droves, pushing up housing demand. According to a May 2017 report by the State of California Employment Development Department, the unemployment rate in San Diego County was 3.8% in April, which is lower than the national unemployment rate of 4.7%. The labor market is expected to maintain steady growth, therefore pushing the demand for housing further upward. While Trump rhetoric and anti-immigration policies have been negatively affecting the economy of San Diego, the future remains bright, with anticipated tax cuts and infrastructure improvement on the horizon. The city’s current investment in municipal infrastructure is another plus to both its economy and the housing market. San Diego’s population is expected to continue expanding, with the San Diego Association of Governments predicting that it will grow by nearly 1 million people by 2050.
An awakening construction sector? Even while the housing inventory in San Diego is still lean, there is evidence that the construction industry is gaining momentum. According to the San Diego Tribune, the
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number of homes currently under construction in this city is high, and will be even higher if the local authorities decrease construction regulation costs. It is estimated that the current regulatory costs amount to over 40% of the total construction costs. These costs have pushed the price of a new home in San Diego to over $1 million, locking out the ma jority of buyers. The housing market will, therefore, benefit if Trump succeeds in lessening regulations in the finance and construction industries. A cut in regulation costs is likely to boost the construction of new homes, therefore restoring a balance between demand and supply. However, under the current conditions, the San Diego housing market will remain a seller’s market as demand continues to rise, and housing inventory continues to decline.
Bottom line Given the promising economic conditions in San Diego, the housing market is likely to remain a hotbed in 2017 and beyond. The government should intervene and lessen the regulations to allow more constructions of new homes to cater for the expanding population. If you are planning to buy a home in San Diego, consider yourself very lucky if you find one at a reasonable price. Remember that with the current rate of demand, you have to act fast on every good opportunity in order to get it while it lasts. Follow The Power is Now for more insights on the latest developments in the California real estate industry.
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IN REAL ESTATE
THE TOP FIVE BEST CITIES TO BUY A HOME IN YOUR 20S
W
hile the decision on where to purchase a home largely depends on your personal preference, some cities are just well-suited to certain generations. For instance, a baby boomer looking forward to retirement may prefer to buy a home in an entirely different place than a Millennial who has just entered the job market. In regards to priorities, the two generations are likely to differ, with the former looking for a place to settle during retirement and the latter for a home that is affordable, close to work, and with the potential for equity gain on resale. For Millennials, other factors such as annual job growth rate, unemployment rate, availability of entry-level jobs, commuter friendliness, recreation ranking, and the number of leisure establishments in an area come into play when deciding the best place to buy a home.
Wallethub, a personal finance website, recently conducted an analysis of U.S. cities on the basis of the needs of Millennials to determine the 20 best cities for them to buy a home. Here are the top five cities in the list and the reasons why you should consider them if you are in your 20s and looking to buy a home.
Salt Lake City, UT Salt Lake City is the capital and most populous municipality of the state of Utah. The U.S. Bureau of Labor Statistics ranks the city
The PIN Magazine
July 2017
second in job creation among the nation’s largest metropolitan areas. Job growth in Salt Lake in 2016 was reported to increase by 3.4%, with 23,700 more jobs than the previous year. The median monthly starting salary in SLC is $2,451 and the median rent per month is $1,495. While the rent is a bit higher than the national average of $1,231, the employment opportunities and wage growth rate makes it a great city for individuals entering the job market.
Orlando, Florida Appearing second in Wallethub’s best cities to buy a home for individuals in their 20s, Orlando, Florida is the sixth largest metropolitan area in the Southern United States. According to the U.S. Census Bureau, the city had a population of
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Austin, Texas With an unemployment rate of 3.4%, a high number of entry-level jobs, and numerous entertainment spots, Austin is ranked third among the best cities in which to buy a home in your 20s. According to Zillow, the median home value in this city is $321,100, an 8% increase from last year. The median rent price is $1,650, and the monthly median starting salary is $3,005. In regards to quality of life, the city is ranked #1 by Wallethub.
Grand Rapids, MI Grand Rapids is the second largest city in Michigan. According to Trulia, this city is among the top cities where the generation Y is “winning at adulting.� The Millennials in this city are getting more high-paying jobs, buying more homes, and partying more than anywhere else in the United States. The median sales price for a home in Grand Rapids is $159,900, while the median rent price per month is $1,250. When it comes to employment, the city is among those leading in manufacturing jobs, with a 2016 study ranking it third in the nation for economic growth.
Tempe, AZ
2,387,138 as of March 2017. The low unemployment rates, considerable wages, easy access to public transportation, and variety of shopping and dining areas are some of the reasons this city is a top destination for young new home buyers. Buying a home in this city is also affordable, with an analysis by realtor.com showing that the average individual parts with only 34% of his or her monthly income for housing.
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With a population of 172,816 as of 2014, Tempe, Arizona is ranked number five by Wallethub in the best cities in which to buy a home for millennials. The median home value in this city is $257,300, and the median rent is $934. Other factors that make this city attractive to millennials include a high job growth rate, public transportation accessibility, and diverse restaurants and nightclubs, among other social amenities. Follow The Power Is Now to learn more about the best places to buy a home, among other homeownership tips.
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IN REAL ESTATE
HIGH PRICES AND A SHORTAGE OF HOUSES IN
CALIFORNIA C
alifornia’s mild climate, ease of travel from the beach to the mountains, and high minimum wage are just a few factors responsible for California’s nearuniversal appeal. There is a reason that so many bloggers are writing articles on why you should move to California, touting the myriad National Parks, sustainability of its energy sector, and distinct culture. For all of these positive qualities, California has a few drawbacks that anyone considering living there should take into account before making a big decision.
The Cost of Owning a Home As a first-time buyer, purchasing a house in California can be a daunting prospect, not aided by the fact that California is currently ranked as the toughest state in the U.S. for firsttime homeowners. Real estate in California is increasingly expensive, with the median home costing roughly $500,000 in 2017 as opposed to $460,000 in 2016. If, as experts suggest, you budget no more than 28% of your total monthly income towards your mortgage, finding a house in California in your price range would be difficult, as the California average for this
expense is over 35%. This means that the relative cost of owning a home in California is higher as a larger percentage of your gross income is going towards housing costs and expenditures. For this reason, many people choose not to buy homes and instead continue to rent properties, seeing no return on their investment.
Housing Crisis This trend in renting homes or apartments is partially due to the housing crisis that has spread for the past couple years despite California’s employment boom. Local zoning rules do not permit enough housing permits to be issued, and not enough houses are being built that can accommodate the budgets of California’s citizens, whose median household income is $60,000. Because of this, low- and middle-class workers are forced to leave the state to find affordable housing, while the technology sector continues to attract young minds with high salaries. The housing market has witnessed a rise in bidding wars as the supply of houses cannot keep up with the demand, driving prices upward.
Proposition 13 In 1978, Californians voted on Proposition 13, legislation that would put a ceiling on property taxes. The addition to the California Constitution that reduces property taxes on homes and businesses says that tax on property will not exceed 1%, and that tax inflation cannot increase by more than 2% per year.
While this is popular with homeowners, communities do not have the same amount of tax revenue as they did before the incorporation of this proposal into the constitution. To make up for this shortage of revenue, regular taxes have increased. Landowners are far more likely to build revenue-earning infrastructure on large plots of land and are less inclined to build houses. Thus Proposition 13 acts as a doubleedged sword that lowers property taxes but contributes to the housing crisis by making it harder for people to buy homes.
term, owning a house in California can be a rewarding experience full of opportunities to enjoy all that the Golden State has to offer.
References: • Doctor Housing Bubble (2009). 10 Reasons Why Buying a Home in Southern California
• Today is a Mistake. California Housing and Financial Market Analysis Produces no Green Shoots. Retrieved from http:// doctorhousingbubble.com/10-reasons-whybuying-a-home-in-southern-california-todayis-a-mistake-california-housing-and-financialmarket-analysis-produces-no-green-shoots/
• Mortgage News Daily (2017). Market Data Centre: California Mortgage Rates. Retrieved from o http://www.mortgagenewsdail y.com/ mortgage_rates/california.aspx .
Higher Mortgage Rates In California, the current average 30-year mortgage rate, or the amount of interest charged for your mortgage, is 4.06% according to Mortgage News Daily. This does not seem astronomical, yet the national average for the same mortgage duration is 3.89%. The historic average for mortgages is closer to 10%. Buying right now might seem like a good idea, but the current interest rates will not stay low forever. Experts predict that mortgages in the next couple of decades could increase towards the historic average, making it difficult to sell a house that you bought today in 15 years.
High mortgage rates combined with higher relative housing costs mean that it is harder to finance the investment that is buying a home, but that is not to say that it is impossible. With careful budgeting and the right mortgage
• Reese, P (2015). “See how much income you would need to afford a home in most o California cities”. The Sacramento Bee. Retrieved from http://www.sacbee.com/siteservices/databases/article13255952.html
• Smith, K (2016). “How housing prices are driving low, middle-income families out of o California”. Los Angeles Dailiy News. Retrieved from http://www.dailynews.com/ business/20160302/how-housing-prices-aredriving-low-middle-income-families-out-ofcalifornia
• Zillow (2017). California Home Prices and Values. Retrieved from o h tt p s : //w w w. z il l ow.co m /c a / h o m e values/.
IN REAL ESTATE
WILL NEW CALIFORNIA LAWS AFFECT REAL ESTATE? The PIN Magazine
July 2017
A
s of January 1st of this year, California welcomed a variety of new bills into effect. Governor Jerry Brown signed 898 bills into law, to be exact. How many will affect day-today life in California, and how will they affect the real estate market there?
Gender-Neutral Bathrooms California has now passed a law that all single-toilet bathrooms in businesses must now be gender-neutral. Genderneutral bathrooms were a sensitive topic in some states, such as North Carolina, which waged a war against them, but California plans to set an example for other states to follow.
Minimum Wages The minimum wage has risen to $10.50 an hour for businesses that have 26 employees or more. This was a $0.50 increase from the previous amount of $10. The minimum wage will continue to rise, and will be $15 dollars an hour by 2022. Another law passed made it illegal for an employer to pay women
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less than her male colleagues, regardless of what her salary was in previous jobs.
Rules of the Road In regards to child safety, it is now mandatory that all children under the age of two ride in a rear-facing child safety seat. Children that weigh 40 pounds or more or are 40 inches or taller are exempt from this law. Children under the age of 8 are already required to ride in the back seat and use a child safety seat, such as a booster seat.
committed in 2017 will no longer be subjected to the statute of limitations.
Prescription Drugs Doctors who recklessly prescribe psychiatric drugs are now being held accountable and could lose their medical license if found guilty. It is also now a law for there to be more transparency around and tracking of the mental health of foster children.
Gun Control Drivers are no longer allowed to hold their mobile devices while they drive. Texting driving was already illegal. Now it is also illegal to use your phone for anything while you drive unless you use your phone’s hands-free mode.
Alcohol Powdered alcohol is now illegal to possess, sell, or make. Beauty salons and barber shops can now offer their clients a small amount of wine or beer, as long as it is before 10 p.m. and the alcohol is free of charge.
Hunger and Homelessness It is now required that all community colleges with shower facilities allow homeless students to used them. Public and private colleges are also now required to participate in a statefunded program that provides meals to homeless students as well.
Sex Crimes The definition of rape has been broadened to include “all forms of nonconsensual sexual assault.� If you sexually assault someone who is unconscious, you now automatically receive a prison sentence. Rape and sexual assault
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Background checks will be required for the purchase of ammunition, and limits have been placed on lending guns to family members. California has also barred purchasing a semiautomatic, centerfire rifle or semi-automatic pistol that does not have a fixed magazine and has features such as a protruding pistol grip.
Earthquake Warnings There is now a statewide system that will send early warning alerts to help keep California residents and tourists safe at all times. The governor directed $10 million to the expansion of the existing ShakeAlert prototype.
These are just a handful of the new laws that have gone into effect as of January 1st, 2017. Most of the laws have been put into effect to help to whoever finds themselves in California safe. The state has also made advancements in equal opportunity laws and has taken a stand against discrimination. Because of many of the advancements that have been made, California has become even more of a favorite for potential homebuyers. These new laws have helped the real estate market by improving the quality of life and protection that the state of California offers to its residents. 45
References:
• To find the original documents of all of the laws that were passed you can find them at http://leginfo.legislature.ca.gov.
• Orange County Register (2017 Jan 3) 17 new California laws that will affect you in 2017. Retrieved from http://www.ocregister.com/2017/01/03/17-new-california-laws-that-will-affectyou-in-2017/
• Murphy, Katy (2016 Dec 23) California’s new laws in 2017: Drivers can’t hold phones, barbers can serve free beer. Retrieved from http://www.mercurynews.com/2016/12/23/californias-newlaws-in-2017-guns-gender-neutral-bathrooms-and-booze-in-beauty-salons/
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July 2017
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IN TERVIEW
BISHOP SMITH I
had the pleasure of sitting down with Bishop Smith of the Zoe Association Organization. Bishop Smith is doing tremendous things in our community to grow and nourish people of all walks of life when it comes to reaching their full potential.
Zoe Association was founded in 1991 by Bishop Frank L. Stewart in Los Angeles. In January 2016 Pastor Edward Smith became the presiding
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July 2017
Bishop of the Zoe Association.
TPIN: Bishop, can you please tell us the purpose behind your amazing association?
Bishop: Originally the association was composed of pastors of churches, what I implemented was a way to broaden our reach to include other non-church ministry leaders,
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and leaders who desire to impact this world for Christ’s Kingdom.
TPIN: Wow that is awesome. So you have a conference coming up in July. Can you tell our readers a little bit more about that?
Bishop: This conference is helping people to walk in the purpose they were designed to do. Our theme is healthy living. Including, healthy finances, relationships, clear vision and every aspect of your life. We want to help people align themselves to be the best they can be. Life a plant, needs soil, sunlight and care to grow and thrive as do people.
God created us, we didn’t create ourselves, and we help people to look inside to themselves to follow your dreams. God puts these desires into us to guide us to follow our dreams.
TPIN: This sounds like an event not to be missed.
Bishop: Not at all, we are going to have people attending from all over the world, places such as Africa, Costa Rica as well as neighboring states like Texas and Nevada.
simply reinvesting it into more property.
TPIN: Yes, I couldn’t agree with you more. Please tell our readers the exact date and times of the event. Bishop: The Purpose Conference is from July 19th- 22nd and if you go to www. zoeassociation.com you can obtain all the information regarding all the speakers, workshops and events taking place. There will be 16 workshops total that you can pick and chose from.
TPIN: And is there a cost for this conference?
Bishop: No, the bulk of the even is free, we do have a small fee for the Wednesday business lunch, but it is minimum and we are going to have amazing companies like Boeing there as well as a top real estate agents revealing their secrets to owning a home.
TPIN: This is definitely the conference of the year, and not to be missed. Bishop I want to thank you for taking time to sit down with me and talk about your association as well as the upcoming Purpose conference coming up July 19-22nd.
TPIN: Well The Power Is Now will definitely be there to talk about homeownership and the importance of owning our own home.
Bishop: It was my pleasure. We are a ministry to empower people to live their dreams that God has planted inside of them. So please come out and get your nourishment on July 19th.
Bishop: Yes, we all need to hear that, in my opinion buying a home is a personal and financial development opportunity. Buying property is a personal development opportunity. With a home you need to pay mortgage, pay taxes. It develops discipline as a person and helps build your future. This future that you are building in equity can help you in other aspects of your life as in paying off debt, going back to school or
TPIN: Well, thank you again and I am looking forward to this conference learn and share what I know with this community
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Kim Collier Executive Director of Publishing for TPIN
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IN COVER
Independence I
Day
ndependence Day is fast approaching. And as the calendar pages fly by, we get closer and closer to the big day. All across the country, people are going to spend the day celebrating the country’s freedom, remembering all the sacrifices made by heroes in the past so that we can enjoy what we have today. One thing is for sure: a sense of independence has always been at the heart of the American dream. July 4th is actually one of the most, most special days for many people – and especially for Realtors in the real estate industry.
What Independence Day means for Realtors We do not want to overrule the fact that there are so many holidays throughout the year, all of which have a significant impact on the real estate industry and marketing campaigns. However, Independence Day has a special feature for Realtors. It is a ray of opportunity that real estate agents cannot miss out on.
Independence Day for the real estate industry is a huge deal that is different from all other holidays. One of the traits that makes this day a special one is that it is a day for reflection: not only reflecting on the nation’s founding
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July 2017
and on how fast the the year has passed, time for Realtors to for the rest of the
first half of but also a make plans year.
It is a day where Realtors can actualize their dreams. The way I see Independence Day, it is a day or a week when Realtors get to measure their success and evaluate their goals for the rest of the year remaining. Therefore, as the day approaches, it is best to look at the success of your plans and take a break before digging in for the rest of the year.
Every day you are free counts Your freedom was fought for, and you should never take that for granted. Whether you are a real estate agent or an investor in real estate, this is an extra important day for you. As you celebrate your independence, it is important to remember that you could not have what you have today. For a moment, imagine you did not have the freedom to enjoy the home you live in, the business you are investing in and many other things that you are able to access now.
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Always take gratitude and appreciation as you enjoy the celebration alongside with some barbecue and beers. Remind others players in the field to just take the day from the ordinary perception and celebrate your freedom together as an industry and as a person. Every day you are in business, every day that you are in sales as a Realtor, is a day that has been paid for. Never forget.
This is your moment – seize it As a real estate agent, independence week presents a unique opportunity for you to be with your family. For the past week, you have been working tirelessly, having little to no time with your family. This is the time that you can spend time with the people you care about most.
Use your freedom and take a family day off. Also, you could utilize this moment effectively by making sure that you get to explore more and learn more about certain areas of your life that you feel need to be explored. During any other time of the year, this may not be possible. However, the only time that you can truly achieve this is by making use of your freedom on Independence Day.
It is all about helping others You have your freedom and you are enjoying it. Why can you not help other people find their
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freedom as well? The spirit of independence has to be far reaching; however, there are so many people out there who still have no sense of what it really means to be free. As a real estate agent, it is your primary responsibility to extend the spirit of independence to the people who have yet to find it.
But how exactly can you do this? For starters, you can begin by providing your customers with affordable renting. For experienced Realtors, extend the spirit by resorting to building houses for the less fortunate. This is a benefit to the whole nation as well. Actually, you will be contributing to homeownership. The reason why I personally put much weight on the issue of extending the spirit of independence is because you will be teaching people how to invest for themselves.
Most people need a light by which to walk. Be that light this Independence Day. If you teach people how to take care of themselves in the industry, what you will be doing is increasing their own capacity and their potential to even invest for more. That is the spirit that needs to be circulated this Independence Day. Nothing can be more important than realizing that you have a responsibility to yourself, to your nation and to the people around you. If that is what we as Realtors are campaigning for, then I believe we will realize the meaning of Independence Day.
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IN MORTGAGE
BEATING THE LENDER: WHAT TO DO WHEN YOUR HOME IS IN FORECLOSURE F
ollowing the 2008 subprime mortgage crisis, Harry Angel, a 79-year-old Texan, found himself struggling to meet his mortgage payments. His lender, JP Morgan, suggested that he refinance his loan and intentionally miss a payment in order to qualify for government relief. Unbeknownst to him, the lender was planning to use his late payment as a reason to proceed with a foreclosure on his property. Harry was in so much distress after receiving the eviction notice that he succumbed to a
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July 2017
heart attack a few days later. The man who had grown up an orphan and worked hard all his life to achieve the American dream of ownership died due to a system that does not care for the welfare of ordinary Americans.
Stand up for yourself If you are facing the nightmare of foreclosure today, this is not the time to panic and bury your head in the sand. Remember that many Americans have faced the same problem in
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the past and navigated it successfully. Just because your home has been put on a foreclosure notice does not mean it will happen; it all depends on how you approach the issue. In an article published in CNN Money, Doug Robinson of NeighborWorks America estimates that about two-thirds of foreclosure notices do not result in actual foreclosures. Even when a foreclosure is inevitable, knowing your rights as a borrower and engaging the lender in negotiations can lessen the blow by saving you money. However, you will need to engage an experienced attorney as soon as possible to negotiate with the lender on your behalf and to represent you in court when necessary. Below are some of the ways an experienced attorney can help you beat the lender and keep your home or minimize losses in an unavoidable foreclosure.
Negotiating a loan modification with the lender When engaged early enough, an experienced attorney can negotiate new terms for the loan, thus ending the foreclosure process. The foreclosure attorney should help you understand your legal rights, negotiate with the lender, and apply for the loan modification within the specified timeframe. For a mortgagor who cannot afford an attorney at this stage, free loan modification services can be accessed from a loan servicer or a nonprofit housing counseling agency. However, going the attorney route is recommended, especially when the foreclosure sale is within a few weeks. While there has been heated debate among bankers and lawyers on the importance of engaging a legal professional in the loan modification process, both seem to agree that an attorney comes in handy when the borrower has little time to follow up on the process.
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Filing for bankruptcy Another way to beat the mortgagee at their own game is to file for bankruptcy. This is especially effective when the foreclosure sale is scheduled to happen within the next few days. When a mortgagor facing foreclosure files for bankruptcy, an injunction known as an “automatic stay� goes into effect immediately. The order prohibits the lender from collecting their debt from the bankrupt mortgagor, thereby stopping the foreclosure sale. While in such a circumstance the lender is likely to file a motion for a relief from stay, at least the mortgagor will create some time to explore alternatives to foreclosure before the court grants the motion.
Making a case on unconscionable loan terms An experienced foreclosure attorney can help make a case for unfair loan terms by examining the details and structuring a convincing argument. Such an argument should be able to convince the judge that the objective terms of the contract are unfair. Under such circumstances, the court has the power to stop a foreclosure, giving the borrower an opportunity to renegotiate the terms and catch up on payments.
Bottom line When you are a mortgagor, anything can happen. That’s why you have to be mentally and financially prepared to stand up for yourself. Understanding your rights as a borrower and gathering information on the available alternatives to foreclosure should be the first steps you take when faced with a foreclosure. Follow The Power Is Now to learn more, or contact us for a consultation on how to go about a foreclosure.
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IN FINANCES
HOW TO PAY OFF YOUR MORTGAGE EARLY I
n today’s high-interest-rate and lowsaving-rates environment, it’s a nobrainer that paying off your mortgage early will save you money. However, you have to be careful when making early payments in order to avoid incurring extra costs. Here are some tips to help you avoid mistakes and get the most out of your early mortgage payment.
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Inquire if there is a penalty for early payments Before you start making early payments on your mortgage, it is important that you inquire from the mortgagee whether there are penalties for making early payments. Remember that the lender loses when you make an early mortgage payoff and is therefore likely to introduce a penalty to recover a portion the profits they would have made.
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You may be assuming that you are saving money through early mortgage payoff only to get hit with a penalty that exceeds the costs you would have incurred if you did not pay your mortgage off early.
Pay extra in each monthly payment The next step towards paying off your mortgage early is to come up with a plan that ensures you pay extra in each monthly payment. Bankrate recommends that you divide your monthly interest plus principle by twelve and add that amount to your monthly payment for a year. With this plan, you will be making thirteen payments in a year instead of twelve. In a 30-year mortgage of $200,000 at 4.5%, this approach should save you more than $27,000 in interest and help you pay off your mortgage 4.3 years earlier. However, before you start making the extra payments, make sure you contact the mortgage servicer and let them know of your plan. Most people assume that just by throwing in extra cash in their monthly payments, the mortgagee will figure out that it should go towards the principle payment and therefore streamline their books. However, without clarification, the mortgagee is likely to use the extra payments against interest for the next scheduled payment, thereby leaving the principle intact. It is therefore paramount to get clarifications to ensure that your additional payments are being properly applied.
Refinance for a more favorable rate If your credit rating was not good when you initially took the loan and it has now improved, you can negotiate to refinance to a lower rate. The interest savings from the refinancing can then be committed to the principal payments, therefore facilitating early payment.
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Alternatively, you can refinance with a shorter term mortgage. For instance, if you are on a 30-year fixed rate mortgage for $200,000 at 4.5% and have paid for the last five years, you can refinance to 15 years at 4%. According to Bankrate, the downside to this is that there are extra closing costs incurred and the process requires filling out an application, providing documentation, and having an appraiser visit. Unless the new rate is lower than the old one, there is no point in refinancing.
Make a lump sum payment Unless you have an investment plan that has a higher return than the cost of the loan, commit any extra cash you get to the mortgage payments. The extra money may be from a tax refund, a bonus, or from inheritance. For instance, making a $10,000 lump sum payment on the 30-year, $200,000 fixed rate mortgage at 4.5% saves you more than 19% of the total interest and reduces the time it would take to pay the loan by nearly 2.5 years.
Final word Paying off your mortgage early may seem like a straightforward decision and process, but it is not. Proper planning and consultation from an expert can save you money and help you achieve your dream of being debt free earlier. Before you start making the extra payments, always ensure that you have a clear picture of how much you will be saving. Follow The Power is Now for more tips on how to get the most out of your homeownership.
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IN REAL ESTATE
WHEN A HOMEBUYER SHOULD SEEK HOUSING COUNSELING I
f you are like most people, buying a home is the largest investment you will make in your lifetime. It is therefore prudent to plan and get all the facts straight before you jump into action. Housing counseling provides you with all the information you need when buying a home and can direct you towards the best choice in instances of multiple alternatives. For example, few first-time homebuyers know how to shop for alternative mortgagors until someone with experience informs them. According to a 2013 survey by the Consumer Financial Protection Bureau, the ma jority of new borrowers think that all lenders are the
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July 2017
same, and therefore neglect to shop around for the best rates. They are also less familiar with the mortgage process and are likely to rely on information from friends, relatives, co-workers, and real estate agents for decision-making. This means they receive biased or amateur information are therefore prone to making mistakes. In a home-buying transaction, a housing counselor’s sole purpose is to provide professional advice to a buyer or renter. A financial counselor works on your financial situation, goals, and objectives to identify the best options available to you. They are 58
usually sponsored by the U.S. Department of Housing and Urban Development, which means little or no charges are passed on to the buyer. While housing counseling is recommended for everyone looking to buy a home, there are instances when it is a necessity, not an option. Below are five situations when every homebuyer should consider housing counseling.
When you are not sure if you are ready to take a mortgage A housing counselor will evaluate your circumstance and discuss with you the finer details of the available options and your eligibility. They will tell you when you are likely to experience difficulties through the course of the mortgage and what you should do to prevent or circumvent them.
When your credit score is not good The housing counselor should advise you on various options available to help you boost your credit rating and therefore qualify for a cheaper mortgage. For instance, if you are looking for an FHA-insured home loan but do not qualify due to past credit problems, you can request credit counseling or first-time buyer counseling from the FHA to learn the various ways you can improve your credit score quickly to meet their requirements.
When you are experiencing difficulties meeting mortgage payments If you already have a mortgage but are experiencing difficulties making payments, a housing counselor will evaluate your situation and advise you on the best approach. You will be required to disclose all your financial details to the housing counselor to enable them to better understand your position and come up with a well-calculated solution.
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When you are facing a foreclosure With all the knowledge and experience that a financial counselor has, they are the best source of information when faced with a foreclosure. They will assess the situation thoroughly and advise you on what to do to avoid the foreclosure or to minimize losses where possible. A foreclosure counselor will help you assess current loan options, develop a budget, identify challenges, and communicate with the lender. They will advise you on loan modification and help negotiate with the lender to avoid foreclosure.
When you are planning for a reverse mortgage If you are 62+, you can request to convert a portion of your home equity into cash while you continue to live in the home. For this to happen, certain loan obligations must be met. Before you enter into a reverse mortgage agreement, a reverse mortgage counselor should evaluate the pros and cons with you and screen for public and private benefits that can help you cater for other needs. They will explain to you how a reverse mortgage works, along with its costs, tax implications, advantages, and disadvantages, and issue you with a certificate once you complete the mortgage counseling sessions. Most lenders require you to present this certificate upon loan application.
Bottom line Whether you are a new homebuyer or a repeat buyer, housing counseling is essential. Before you decide on a housing counselor to help you handle your case, always ensure that they are HUD-approved. Housing counseling will help you become a savvy buyer, hence avoiding difficulties making payments or foreclosure.
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Purchase your home with just 1% down ONE MONTH’S RENT COULD GET YOU INTO YOUR
DREAM HOME
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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 Website: www.thepowerisnow.com
Email: eric.frazier@thepowerisnow.com Mobile: 714-361-2105 Office: 800-401-8994 ext. 703 Fax: 800-401-8994
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.
IN COMMUNITY
AI DEVICES
ON THE MARKET TODAY V
oice Assistants, or Artificial Intelligence, is software used to offer services to people. The first modern voice assistant was featured on a smartphone in 2011. Its function serves as an aid to complete tasks. Now, voice assistants are found everywhere. Voice assistants are found in smartphones, computers, cars, and much more. They can assist us with everyday tasks. For example, a voice assistant can set a reminder for an important date or event in the near future. With the touch of a button, the reminder is set with the time, date, and
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location. These voice assistants can be seen as personal helpers for day-to-day operations.
What are the uses for AI voice-assisted devices? As mentioned above, one of the uses for voice assisted devices is scheduling. When speaking into the device, state the tasks that need to be completed or performed. “Set a reminder for my cousin’s wedding on August 21, 2017.” The voice assistant will open the calendar 62
or reminder and set the task as requested. If the email address is synchronized with the calendar on the phone, a reminder will also be emailed. The convenience of voice-assisted devices is hard to resist.
Other services that voice-assisted devices perform are sending messages, making phone calls, and answering calls. This happens via voice commands and voice-to-text. For example, “Call Mom” and the voice assistant will start a phone call to “Mom”. If a person is occupied and cannot tend to their phone, voice dictation allows the voice assistant to send a text to someone.
Why are businesses interested in voiceassisted devices? Voice-assisted devices are a great benefit to the business world because of the services they offer. Most tasks that can be done in an office no longer require sitting in front of a computer and doing them manually. In the business workplace, everything must be organized to be easier for the employee to navigate. Businesses are also interested in the voiceassisted device to create operations enabling the voice assistance to do more than it can now. In other words, businesses are looking to hire developers to launch voice-assisted programs to create new skills. Ma jor business companies invest in a developer’s kit to learn how to build new skills specifically for the company. This expands the voice assistant’s capabilities by applying the application and tools from the kit.
What does this mean about modern technology?
expected to see more voice-assisted devices in the near future. This year alone, about 25 million voice-assisted devices will be shipped. The devices will make an appearance in navigation systems, making everyday travels smoother; thermostats, to control the temperature at home and work; and even in lighting.
With a growing interest and an influx of voice-assisted devices hitting the marketplace, consumers are adapting to buying voiceassisted devices. Voice assistance helps us with day-to-day operations, making tasks less burdensome. From scheduling important events to making and answering calls, the advantages of voice-assisted devices surpass the disadvantages. Businesses are in support of this latest technology trend and incorporating it into their business operations. They are even taking this a step further, consulting developers to create new skills for voice-assisted devices. With the prediction of many new, improved devices to come, voice-assisted devices will not be short-lived; it is safe to say that there will be many new ideas that implement voice assistance in the near future.
References: • Murph, D. (2011, October 04). iPhone 4S hands-on! Retrieved from https://www. engadget.com/2011/10/04/iphone-4s-handson/
• Tracey, M. D. (2017, June 14). 5 Office Uses for AI Voice-Assist Devices. Retrieved June 14, 2017, from http://realtormag.realtor. org/for-brokers/network/article/2017/04/5office-uses-for-ai-voice-assist-devices
According to Realtor Mag, AI voice assistants are vastly growing in the technology market. Voice-assisted devices’ capacity to demonstrate advances in technology will continue to progress. With the combination of technology and artificial intelligence, it is
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IN COMMUNITY
HOME DESIGN TREND FOR 2017 The PIN Magazine
July 2017
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A
re you planning on doing some upgrades to your home this year? Maybe your kitchen needs a bit of a remodel, or perhaps you are looking to get the latest technology installed into your home. Check out the latest trends that are popular this year.
Keeping it Bright “Greenery” was named the 2017 Pantone color of the year. The color is meant to represent refreshment and revitalization, something we can all use in a complex social and political environment. So if you have plans to upgrade the paint color in one of your rooms, pick a green palate! It will really bring an earthy feel to the place.
What Rooms to Splurge On When you think of the room you want to splurge on when you are doing renovations, you might normally think of the kitchen. But the trend for 2017 says different. Instead, spending money on making your laundry room and entrance to your house more delightful can be more important. Homeowners are now finding it important to not miss remodeling rooms that traditionally wouldn’t get as much love.
According to the 2016 Houzz & Home Report, those remodeling a laundry room of 150 square feet or more will spend an average of $2,700. And we cannot forget about the entrance way when you enter a home – it is the first room that you see. Some also call this space a mud room. Sometimes it takes a simple small area with fun wallpaper and a place for shoes to really bring a new feel to walking in the front door.
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An Outdoor Feel
Butterflies
Bathrooms have always been a favorite room to remodel. The trend today is to give your bathroom showers an outdoorsy feel. Since you cannot simply put a shower outdoors, due to the weather not always being desirable, people are trying to bring the outdoors inside. This also means you can have more privacy! Keep the tones neutral and earthy, and you have yourself an outdoor oasis inside.
Mixed Patterns
It used to be unheard of to mix stripes with dots. however, this may not be the case anymore. Mixed patterns are the new thing. It was first spotted at the Fall 2016 New York Fashion Week. From there, the mixed pattern trend has taken off. People are loving the creative options it is giving them when designing the interior of their homes. Next time you go to pick out a new comforter for your bed, be bold and mix it up!
Butterflies are popping up more and more in home design trends this year. A design that is normally related to a children’s room is now found bringing grace and elegance to a room. If you are looking for a fun accent to a room, give butterflies a try!
Black is Out
Black is no longer the popular accent color in 2017. Navy blue has taken its place. So if you are picking a trim color for the kitchen and want to give it a modern feel, navy blue is your best choice. Navy will also keep the room from feeling smaller, something that black trim will often do.
So if you plan on doing some remodels, why not give a few of these new trends a try! 2017 is bringing on a whole new style for interior design.
References:
Fold it Up
This is the year we will see more of the foldup appliances trend. Designers are embracing appliances that can be tucked or folded away in order to preserve square footage. The big and bulky are out. It is now possible for almost entire kitchens to be folded up for the use of their space. Even rooms can be changed by how you fold and unfold the furniture and appliances in the room. Kitchens, living rooms, and bedrooms can now all be in one room. Simply fold up what you are not using and unfold what you need. The more room you have open and available to use, the more instyle your interior will be!
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• Parker, Mitchell (2017, Jan 6) Top 10 Home Design Trends to Expect in 2017. Retrieved from https://www.forbes.com/ sites/houzz/2017/01/06/top-10-home-designtrends-to-expect-in-2017/#4e77a8749028
• Kloss, Kelsey (2016, Dec 28) 10 Home Trends That Will Shape Your House in 2017. Retrieved from http://www.elledecor.com/ design-decorate/trends/news/g3429/interiordesign-trends-2017/?slide=7
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ALFONZO L. EDWARDS Realtor | Cal BRE # 01937296
Relationship Manager Office: 800-401-8994 ext. 732 Direct: 925-435-2557 alfonzo.edwards@thepowerisnow.com thepowerisnowrealestateservices.com/
IN EMPOWERING
5 WAYS TO INCREASE PRODUCTIVITY TO INCREASE YOUR SALES
L
ike everything else in life, productivity has its own ingredients. If you mix them well and in a systematic manner, they will give you the kind of results you want and increase your PRODUCTIVITY. It doesn’t matter where you will be working from. As long as you get the procedure – the set way of doing things – there is no doubt that your productivity will be boosted. However, you will find out early in your quest to satisfy your thirst of becoming more productive, that there are three elements to productivity. They are an integral part to becoming more productive. First, the activities that you do; secondly, your efficiency in doing things; and third, luck. The last of these you can never control, but the others you can.
a powerful art that can be used to overcome any hurdle in the market. It allows them to be more effective and efficient at delivering the necessary answers to their clients. You work really hard. But nothing shows up! You may start to wonder where in particular you are going wrong. As a matter of fact, so many realtors will quit. However, there is an important fact to always remember after you have worked and given your all. If you maintain a high level of efficiency, luck will certainly come rushing in. This is the absolute power that most of us never understand. All you have to do is dedicate yourself to the course and maintain consistency and efficiency. The result at the end of it all will be an increase in your productivity.
Ways to increase your productivity As mentioned above, you cannot control your luck in the real estate industry. However, activity and efficiency can be altered by you. The difference between successful realtors and those who are not is that the successful ones know the art of creating a specific system for every process in their businesses. This is
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Have time for your business In many cases we get caught up activities. But if you want to increase your productivity as a real estate agent, you have to start making time for your business. This is called prospecting. You need to start prospecting 68
and setting a definite schedule for time with your business. This is the most important time that you can have for your business. If it means that you have to stay at work for 20 hours doing matters crucial to the success of your business, then that is exactly what you should do. A lot of realtors get caught up in things and activities that divert their attention away from their business. Before they even realize it, they are already lost. That is usually the start of the internal conflict with self as well as conflict with the business. Another common problem is that many of the realtors start prospecting for their business when they have nothing else to do. This is a guarantee: You will never succeed by sidelining your business or not prospecting for it. Building an empire means that you are devoted to its course. Therefore, to attract productivity to your business, you need to schedule prospecting. In fact, it should be the first item on your list every day.
a definite plan guiding your operations. After setting time aside for your business, what could you be doing? This question can only be answered if you have a plan. Lacking a plan for your business is setting up a giant pitfall for it. A plan is a vital component of success, and when everything seem to be going downhill, a plan can restore your hope. Sometimes realtors feel demotivated, when success eludes them; at times they feel so overwhelmed as there are so many demands on them. Their business plan is what keeps them on track. A business plan acts like your mirror. Every time you need correction, just look at the business plan. The soundness of your plan is what motivates you to work even harder. And this will lead to an increase in your productivity. When your productivity shoots up, your sales shoot up too. That is the beauty of maintaining a great business plan. You will never be out of scope.
Your distractions: your great enemy Have a definite plan You need to have a plan; if you have none, you need to start looking for one. In every dimension of your business, there should be
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This is where it gets tough. One thing is for sure: If you want to increase your productivity, then personal social media must be eliminated. Much has been said about social media and
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how it has helped reach‌we all know that, but what do you call spending countless hours just gazing at your screen? Is that not a distraction? Most people would support the use of social media, but it is an example of a nice distraction, one that will lead you to ruin. If you spend countless hours just scrolling through your timeline as well other people’s timelines without even speaking to them about your products, I would call that a waste of time. That time could be spent doing something worthwhile. This is where many realtors really go wrong. To increase your productivity and hence boost your sales, you will need to define your time and space. Choose to close your windows to all the distractions and develop a definite list of the things that you are to do. After developing the list, you need to prioritize all your tasks and make sure that you get them done. In accomplishing your task, you can choose to use some of the productivity tools, but do not use too many. They can be a distraction too. Most
real
estate
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agents
July 2017
have nothing to show when it comes to their productivity and sales. The simple reason behind that is because they choose distractions to work for them. Social media, if not utilized well, can be a very good distraction.
Make sure your objectives are met This is another task that most people feel burdened by. Actually, most real estate agents want to work according to time and not according to a set objective. If you have an objective, make sure that a day never passes without trying to achieve that objective. It is a matter of selfdiscipline and self-control. Having set objectives is one way that you will be able to stay focused on your primary goal. This, in turn, does wonders. In the process of making sure that you hit your target, your productivity sets in and as you hit your target, it increases. As your productivity increases, so do sales. It is a very tight feedback loop. Thus, by making sure that your set objectives are met,
you are actually attracting success. This is the secret that most realtors wished they knew. Therefore, each day you have to have a set objective. Before you go to sleep, ensure that your object has been achieved in the best possible way. Before you even realize it, you will have already achieved your target.
Separate your personal life and your business life This is another common problem with many realtors. They mix their personal life with their business life. Therefore, their productivity becomes measured by the outcome of the two lives combined. Just because you are home, does not guarantee you can work on your business; and in the same manner, your workplace should be dedicated to work alone. Never mix the two. Following the five ways outlined above will help you increase your productivity. And as a result, your sales capacity will also increase, since productivity and sales are directly related.
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Helping Families Make the Right Move!
Willie Wilcox Cal BRE # 01396837 NMLS # 887943
Relationship Manager
Realtor | Northern California E-mail: willie.wilcox@thepowerisnow.com Website: www.thepowerisnow.com Office: 800-401-8994 x 728 Direct: 510-915-5107
IN EMPOWERING
HOW KEEPING AN ABUNDANT MINDSET
WILL HELP YOUR REAL ESTATE CAREER W
e live in a world of abundant opportunities. However, the way we view real estate, the world, and ourselves greatly influences how we perceive opportunities. Still, the same perception applies in determining whether
The PIN Magazine
July 2017
we’ll be successful or fail in real estate. One thing is clear: like any other serviceoriented business, real estate revolves around people. Relationships with people matters. Thus, it is not an industry focused on the production of things. That said, real estate 72
agents have to be people. People with unique characteristics and personalities. These two aspects are likely to have a large influence on the success or failure of any given agent. As a consequence, there is a need to keep an abundant mindset. Stephen R. Covey has talked much about the personalities of highly effective people in his book, “The 7 Habits of Highly Effective People”: “The Scarcity Mentality is the zero-sum paradigm of life. People with a Scarcity Mentality have a very difficult time sharing recognition and credit, power or profit- even with those who help in the production. They also have a very hard time being genuinely happy for the success of other people.”
You do not have to be perfect There is no such thing as being perfect. There are no perfect real estate agents. However, even though there are no perfect real estate agents, you should still strive for specific personality traits as an agent. Keeping an abundant mindset means believing at all times that you will succeed in what you choose to do. In real estate, you are allowed to make mistakes. However, the benchmark of your results should show aggressiveness or at least assertiveness – tenaciously going after the properties that you want to buy and sell. Of course, you also need to be approachable and very friendly. This will help you keep your customers at ease. Perfectionism is a result of scarcity mentality. People who sideline themselves by having a scarcity mentality are often the ones losing so many opportunities by putting much energy into the things that do not really matter. It is a negative mindset. Once you mess up, that will be the end of your success. Flip your personality from trying to be perfect. Simply, this means that the “perfect” mindset revolves around the subject that there is not enough to go around. Basically, it is a mindset that leads to agents focusing on
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short-term efforts and not making decisions that will affect his long term career. In fact, focusing too much on the short-term results blinds you to the long-term consequences of your actions.
Engagement with your customers Having a positive mindset means that you are able to perceive your own desires as well as those of your customers. As a real estate professional, much of your energy is focused on having and approaching your career with a positive mindset of abundance. This is crucial and very beneficial. Not only will it help you create new and innovative ways to approach success, but it is also a door that leads you to maintaining a positive, creative, and enthusiastic attitude. Appreciate your conversations with prospects. This unlocks many windows of opportunity. When talking to your prospects, family, and even friends, it is best to have an open mind. Try to focus on a number of things that you have in life. At the same time, having a positive mindset means that even as you engage, you are able to stay optimistic. As a real estate agent, you have to be open to your prospects. Discuss the positive things in their lives, how you can be of help. Try finding out their goals, and use that opportunity to achieve your objectives and help. A positive mindset is one that pushes you to be a believer in yourself. Engage with your customers and have a winner’s mentality. The sky is the limit, and the key thing to hitting your limit is by positively engaging with your customer. You don’t have to spend countless hours addressing your prospects through your computer screen. Let them hear you in person. You can only impact your customer by being there with them. Many realtors have lost big customers just because they were not there when they were needed. Do not be one of them. Cut your media consumption. Media consumption erodes your positive attitude towards your work. As a realtor, you have to 73
quit adding negative content to your life by consuming the media. Having an abundant mindset requires that much of your time be spent with your prospects, trying to analyze everything for them. This will help you build a career of abundance.
How you benefit Having an abundant mindset in your real estate career has a lot of benefits. At first, they may be very dim. But as you progress, they start to glow. One thing I have come to know about keeping a positive mindset is that it can help you get rid of the complainers in your career. You will never be able to eliminate everyone in your life. However, there is one important thing that you can do: you can keep only the people in your life who share your positive mindset and ambition. Having an abundant mindset can help you a lot in keeping your distance from negative people. Those that can drag you down very easily. It is a mindset that allows you to create a circle of people who you can trust, depend on and be confident around. There is nothing more powerful than having a solid list of people with whom you share a common identity of mind and ambition. An abundant mindset helps you create positive affirmations that get you into having a positive mindset. Having an abundant mindset encourages you to create smart goals and then use the goals to build singleline mantras that you can encourage yourself with. You wake every morning knowing that there is something out there for you, and that you have to seize it. Your goals have to be interlocked with your passions and desires. Having a negative attitude cannot help you create something that will work for you. Self-image and what you think go handin-hand. An abundant mindset will help you create and maintain a positive self-image. This will help you boost your confidence – not only with yourself, but also with the people
you are working with and working for. Positive self image is an important tool that will attract and amplify your view from your prospect’s perspective. Even when you are working, you will be confident of what you are doing. Your client will have confidence in you. Your service potential will also get a boost, giving you an edge in a competitive real estate market. Finally, an abundant mindset enables a clear picture of positivity in every loss. We all go through periods of success and failure. Having an abundant mindset enables you to see an opportunity of success in every loss. A negative person will most likely quit. An abundantminded person tries as much as possible to view every loss from a balanced perspective. Your career as a real estate agent is invaluable, and you cannot afford to lose it. Therefore, guarding it is your primary responsibility. Having a negative approach may affect the performance of your business, therefore realtors are advised to keep a positive mindset in everything. This will be a huge plus for the performance of their business as well as their personal life.
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We make the American Dream of Homeownership a Reality
We pay the Highest Commissions for Buyers agent than any other real estate firm in California. Our buyer’s agents keep 100% of the commission on transactions where the buyer has been preapproved and funded by the Power Is Now Mortgage Services[1]. In addition, there is no:
� No E&O fee � No admin fee � No processing fee � No desk fee � No monthly fee � No copy or print fee � No franchise fee � No transaction coordination � No nickel and dime fees � No gimmicks, no tricks, no games � Bring us the buyer. Keep the commissions
”
We are seeking LEADERS! Licensed Real Estate Agents who posses a winning spirit. At The Power Is Now Real Estate Services, YOU are a VIP and we treat you as such by offering you:
� Exclusive VIP Agent Marketing Package worth thousands of dollars.
� Exclusive Assigned Territory. � Full broker support from your local managing Broker.
� Free website with IDX technology. � Free CRM, cloud-based file management system, digital signature program.
� Lead and Lead Generation Sources. � The Freedom to run your business as you see fit.
Call me for details: ANITA JONES-CAYENNE Director of Real Estate Services Direct: 510-681-4147 Office: 800-401-8994 ext. 707 Email: anita.jones@thepowerisnow.com Website: www.thepowerisnowrealestateservices.com
CALL ME TODAY FOR AN INTERVIEW!
[1] Listing and buyer’s agent can only recommend The Power Is Now Mortgage Services to the buyer’s agents. Most buyer’s agent assists their buyers with finding financing and recommend lenders. Most buyers will follow their agent’s recommendation. If our agent’s buyer chooses to use another lender then a standard commission split will apply.
REAL ESTATE SERVICES - CA
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.
BUSINESS
Frazier Group Realty, Inc. As you venture into the World of Real Estate, we can help you put the pieces together and Naviagate you into Home Ownership
Ruby L. Frazier President License #01751773
Briana M. Frazier Broker License # 01751473
Jessica E. Frazier License # 01817312
Erica L. Frazier License# 01791095
Frazier Group Realty is the right place. Our Navigators are available to give you personalized service and answer any questions you may have. You can call, email or visit us and we will be there ready to help you every step of the way. Wether you are a first time home buyer or an experienced real estate investor, here at Frazier Group Realty you gain useful information about how to choose the “right” property, and everything involved in making an informed decision in today’s real estate market.
Making Clients for Life
3739 6th Street, Riverside, CA 92501 Office: (951) 686-5261 Fax: (951) 686-5264 www.fraziergrouprealty.com
Home Ownership 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.
By Eric Lawrence Frazier MBA CA BRE 01143484 | NMLS 461807
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