Ju ne 2017 Vo l. 04 | Is s ue 6
Happy Father’s Day from the Frazier Family
WHERE AFRICAN AMERICANS ARE DOING BEST ECONOMICALLY JUNETEENTH – WHOSE HOLIDAY IS IT? FATHER’S DAY SHOULD BE A FEDERAL HOLIDAY
OUR MISSION:
OUR VISION:
The mission of the Orange County Realtist is to provide support and education for its members to grow and expand their businesses while assisting the community to achieve the American dream of homeownership
The vision of the OC Realtist is to become a center of influence and a chapter of successful realtists in Orange County whose businesses are thriving from the support they receive and the networking opportunities that exist by their affiliation with National Association of Real Estate Brokers
NAREB was founded in 1947 and is the Oldest African American Real Estate Trade Association in the United States. The Orange County Realtist Chapter was founded in October 4, 2009 by Eric Frazier in Orange County.
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ANY OF OUR the PIN magazine THE POWER IS NOW INC. Vol. 04 | Issue 6
Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 Eric.Frazier@ThePowerIsNow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow
PREVIOUS ISSUES THE PIN MAGAZINE YOUR RESOURCE FOR
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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
CONTRIBUTIORS Verta Guynes Eric Lawrence Frazier The Power Is Now Research Team
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CEO & Publisher Eric Lawrence Frazier, MBA 3739 6th Street, Riverside, CA 921506 Ph: (800) 401-8994 ext. 703 EDITORIAL Editor in Chief: Eric Lawrence Frazier MBA Managing Editor: Goldy Ponce ONLINE Web Designer: Himanshu Haiswal
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5
In This
Issue... FINANCES 10. 5 Things millennials need to know about
12.
closing costs Is paying off your mortgage early beneficial?
ECONOMY 16. Employment surge and its implications
20.
on California housing market Cities where african american are doing the best economically
REAL ESTATE 24. Real estate market in San Diego,
26. 28.
California Summer is the peak of real estate buying Fannie Mae assisting homeowners struggling with student debt
LEGAL 32. Federal laws that affect real estate
36. 38.
closing How to change mortgage companies How to remove the co-owner from a property deed in California
MORTGAGE 40. Ready to refinance your home? What
44.
you need to know The good, the bad and the ugly of reverse mortgages
The PIN Magazine | June 2017
6
GREEN 46. Going green: Marketing tips for real
50.
estate agents Futuristic concrete heals itself with built-in bacteria
COMMUNITY 52. Father’s day should be a federal holiday 58. Building homes and hope for the future 60. The Juneteenth holiday is here: it is time
64. 66.
to rethink the true meaning of freedom How to spend the first day of summer Effort underway to increase diversity in homeownership
YOU 70. Saving for your first home 74. Why credit is important even if you pay
cash?
TECHNOLOGY 78. What brokerage companies can learm
82.
from tech companies Can social media help boost real estate sales?
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Editor’s Letter...
D
ear Esteemed Readers,
Happy Father’s Day to all the fathers in the world. Father’s Day is a day set aside to honor and celebrate fathers and their contributions to society. It is celebrated in over 40 countries worldwide, and we here at The Power Is Now would like to acknowledge each and every one of the father out there.. If you are a dad, like me, I encourage you to take time to be celebrated as well as celebrate the father who made you the man you are today. The Father’s Day celebration has given families the chance to honour and recognise their fathers and father-figures for decades. So make sure you mark the date of this year’s Father’s Day celebration in order to not miss out on an opportunity to celebrate and honour fathers. This June issue is a very special one for me, as I reflect on my role as a father to my wonderful children and grandchildren. On the cover is yours truly alongside my beloved family–or as I like to call us, “The First Family of Real Estate”. In this issue, I open up about how being a father has blessed me and vice versa, as well as honouring my late father, who passed away in 2015. I discuss and offer my opinion on how Father’s Day and Mother’s Day should be Federal holidays; you do not want to miss that. We examine the historical holiday named “Juneteeth”, and the true meaning of freedom behind it. Of course, we do not forget about the nuts and bolts of real estate
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as we take a closer look into credit and why it is important even if you are paying for your home with cash. We will be answering all your real estate questions when it comes to mortgages, employment in California, saving for your first home, and much more. Mark your calendar. You will not want to miss our Realtor Seminars scheduled for the month of June. On June 30th, The Power Is Now is hosting the San Diego Realtor Seminar. Click the blue link to register for this free seminar: Register today! Our seminars are filled with PROVEN LOW-COST MARKETING SYSTEMS designed for new and experienced agents. Come out and let’s make 2017 your best year ever! This is a FREE event you do not want to miss. 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 CEO The Power Is Now Inc.
Happy Father’s Day! www.thepowerisnow.com
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FINANCES
5 Things Millennials Need to Know about
CLOSING COSTS
T
he home buying process can be an intimidating affair, especially to firsttime buyers with little or no know-how on the workings of the industry. According to a 2017 report by Nerd Wallet, 42% of American homeowners report the home buying process to be stressful, 32% find it complicated, and 21% perceive it to be intimidating.
Closing costs, which refer to the charges paid when a real estate transaction closes and the title of the property is transferred to the buyer, continue to be a shocking surprise to many millennial homebuyers.
According to a 2017 study by ClosingCorp, two out of three Millennials planning to be homebuyers do not know what closing costs are. The survey With analysts predicting that Millennials will be found that 17% of first time homebuyers were the driving factor of housing in 2017 and beyond, surprised that there were such costs, while 35% how much they know about the mortgage process knew that they existed but did not expect them to has become of absolute importance. According be that high. to a 2015 survey by RBS, 40% of Millennials between ages 21-30 do not know how much they The top five closing costs that surprised most need to pay for a mortgage deposit, let alone other buyers include mortgage insurance, bank fee/ complicated details. points, taxes, title insurance, and an appraisal fee. In a bid to help Millennials make informed For Millennials who have gone through the home decisions in the home buying process, we have buying process before, 57% regret their decisions compiled five things that every buyer should know and say they would do things differently the next about closing costs. time around.
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1. Closing costs are indicated in the Loan Estimate and Closing Disclosure forms. Closing cost details are usually disclosed on the Loan Estimate and the Closing Disclosure documents issued during the application of a mortgage. Reading these documents carefully and comparing the costs between different lenders can save you a great deal of money on your mortgage.
Bankrate, some lenders will give fees a wide variety of names to confuse buyers. For instance, a lender can advertise that they do not charge an “application fee” upfront, but make that up by charging a “document preparation” or “commitment fee.”
4. There are instances when the lender can offer to pay your closing costs.
Remember that when shopping for a mortgage, you need to look at all the components of a loan price, including rates, points, and fees. A mortgage lender can charge slightly lower than average interest rates, but make it up by inflating closing costs.
There are instances when the lender can offer to pay your closing costs in exchange for you paying a slightly higher interest rate on your mortgage. While this does not reduce the amount you pay for the loan, it allows you to pay the costs over time rather than upfront.
2. On average, homebuyers will pay between 2 and 5 percent of the purchase price on closing costs.
Another advantage of a no-closing-costs mortgage is that it helps you make a larger down payment for your home hence saving you on interest.
Even though closing costs differ with states and lenders, the average amount a buyer in the U.S. should expect to pay is between 2 to 5 percent of the home purchase price. This makes them an important component of the mortgage that every homebuyer should consider.
5. Closing cost discounts do exist.
3. You will need to do your homework to understand the closing costs on your mortgage. To be on the safe side, do not take as the whole truth whatever closing costs your lender discloses to you. According to
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If you are looking to lower your closing costs, you might consider looking for lenders offering closing cost discounts. However, you have to do your homework well to ensure that there are no hidden charges to cover for the discounts. Follow The Power Is Now to learn more on how to lower your closing costs for your new home.
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FINANCES
Is paying off your mortgage early beneficial?
burden of paying interest that comes with the extended payments. This means that you end up paying less for your home than you would have paid if you extended your mortgage payments to maturity.
The downside of paying off your mortgage early is that you use the capital that could have otherwise been invested to generate higher returns. In a rising interest rate environment, homebuyers with locked low-interest rates on their mortgages should keep ne of the questions that many homebuyers making periodic payments rather than paying a lump grapple with is whether to pay off their sum amount. mortgage early or make the periodic payments to maturity. This question is usually driven In 2017, mortgage rates are rising at an exponential by two motives, the first being to make savings on rate, and therefore it is only prudent for homebuyers homeownership, and the other being to acquire the who locked their rates in in 2016 or before to take social benefits attached to full homeownership. advantage and enjoy savings on their mortgage instead of taking the less beneficial lump sum To help homebuyers make informed decisions on payment. mortgage payments, we have compiled the pros and cons of paying off a mortgage early from both a Case in point: a homebuyer with a $600,000, fivefinancial and a social perspective. year adjustable rate mortgage at a locked rate of 2.5% Save on interest versus invest the excess taken in 2016 is currently making monthly payments of $1,975, while the one that took the same mortgage capital this year at 3.25% is paying $2,176 per month. The borrower with a five year, 2.5% locked ARM should Paying off your mortgage early removes the take advantage of the $201 per month difference and save the amount until the mortgage is adjusted.
O
Over five years, the savings will be around $12,060, an amount that can be used to make a lump sum payment, if the buyer’s plan is to refinance, or pocket if their plan is to sell the home. Alternatively, they can decide to throw caution to the wind and invest the savings in a balanced fund of high-yield bonds and stocks or stocks alone. If things go as planned, the proceeds generated by the investments can be used to make the principle payment.
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While millennials should weigh options between investing in stocks and bonds and making an early mortgage payoff, Elizabeth Grahsl, a CFP and a By paying off a mortgage early, you avoid paying vice president at Prosperity Bank, recommends closing costs but miss out on the tax benefits people who are nearing retirement to pay off their mortgages early. associated with holding a mortgage.
Take advantage of mortgage interest tax deduction versus save on closing costs
However, mortgage interest tax deductions are nothing compared to closing costs, and it is not worth it to skip paying a lump sum just to enjoy the tax benefits.
The reason for this is the peace of mind that comes with the full ownership of a home. However, the decision should depend on the financial situation of the retiree and what they plan to do with the home after paying off the mortgage.
If interest rates are low and you have an option to invest the excess funds in an investment vehicle that Again, paying off a mortgage earlier is a good option generates a higher return, then you can count the for people who are not disciplined enough to save and invest. It may also be a good option for individuals mortgage tax deductions as an added advantage. looking to revisit their investment portfolio and As a rule of thumb, you should compare the costs of allocate more funds to more risky investments, such making periodic payments to the return that can be as stocks. By paying off their mortgage early, such generated by investing the available capital before people acquire the confidence to take bigger risks, making a decision on whether or not to pay off your since with their mortgages fully paid off they will not be forced into bankruptcy if the stock market mortgage. collapses.
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ECONOMY
Employment Surge and Its Implications on California Housing Market
L
ike all tech cities across the US, the California job market is on a surge as millennial graduates continue to flock to tech hubs in lieu of Wall Street. U.S. tech sector employment rose by 2.7%, from 6.9M workers in 2015 to 7.3M workers in 2016, according to a new report released by CompTIA.
subsequent increase in housing prices. Even with the rising mortgage rates, the favorable economic conditions coupled with the lean housing inventory has done nothing but push home prices to unaffordable levels for the majority of Californians. According to a report by the Legislative Analyst’s Office, housing is more In 2017, California will experience an expensive in California than just about even higher job growth rate, with the anywhere else. The median price for Bay Area recording the highest levels a home in California is $493,800, of economic boom. This is according to which is almost three times the median a report by UCLA Anderson Forecast national average. released March of this year. When it comes to renting, California The robust employment growth in the tops the list of the most expensive tech sector creates a multiplier effect, rentals, with a median rent price of with a new report by Bay Area Council $2,500, according to Zillow. This is Economic Institute showing that 4.3 almost twice the national median rent jobs are created for each job created in price of $1,550. the high-tech sector. These additional new jobs are from local goods and Even with high rates of employment, service industries across all income the rising housing prices coupled groups, including dentists, lawyers, with stagnant wages continue to fuel teachers, retail clerks, cooks, and many the housing crisis in the state. The others. few Californians working in highend jobs may find housing affordable The report by Bay Area Council predicts at the current rates, but for the that the demand for high-tech jobs will majority of middle-class Californians, remain considerably stronger than for homeownership is out of reach. other jobs at least through 2020. Renting is also an expensive affair for Rising employment rates means the low-income Californians with a a strengthening economy and a new report by California Department The PIN Magazine | June 2017
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have pushed the majority of Californians below the poverty line. According to California’s Department of Housing and Community Development, California is producing less than half the new homes it needs to meet demand. The primary reason behind this is that it has become too expensive to build low-income housing in the state.
Bottom line
of Housing and Community Development showing that at least a third of low-income earners spend half of their income on rental payments.
What it means to be low income in California If you earn six figures in California, there are is a chance you are in the low-income bracket. According to the U.S Department of Housing and Urban Development 2017 Income Limits Report, a sixfigure income in some cities in California falls under the lowincome bracket.
San Mateo, a family of four with an annual income of $105,350 is considered to be “low income.” In the same cities, an annual income of $65,800 for a family of the same size is considered “very low” while that of $39,500 is considered “extremely low.” The income limits report is used to determine who can qualify for affordable and subsidized housing programs, such as Section 8 vouchers.
The scarcity of low-income housing
The solution to California’s housing crisis lies in the hands of policymakers. According to Jerry Brown, the governor of California, the housing crisis can be solved through new laws that lower the cost of developing low-income housing and provide monetary incentives for cities that meet housing production goals. If Trump succeeds in cutting red tape in the housing and financial industry, there are high chances that the housing market in California will turn around. The Power Is Now offers you insights on the latest developments in the housing market in California to help you make informed decisions on homeownership. Follow The Power Is Now for more information on how employment in California may affect your real estate decisions.
The lean housing inventory is For instance, in San Francisco and the prime reason housing prices
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ORANGE COUNTY 3rd ANNUAL JUNETEENTH CELEBRATION June 17th, 2017 10 a.m. to 4 p.m. Central Park 18100 Goldenwest Street Huntington Beach, Ca
Trust One Band Song Stress Hosted By: Santa Ana Black Historical Society Orange County Learning Black History Orange County NAACP Entertainment on Stage Throughout the Day! Jazz - Gospel singing - R&B - African Dancers & Drummers More To Come!! Something for Everyone! Vendors: Clothing - Jewelry - Authors - Health Booths - Historical Info Great Foods of All Types Available for Purchase Face Pain�ng & Children's Games by Heart Full of Hope.
The Capitan Conspire Jazz
CMC Digital Publications Santa Ana, Ca. 92703
THE POWER IS NOW VIP AGENT
STEVE PETERSON, CCIM Office: 510-879-7542 Mobile: 408-509-0700 Email: peterson.infinity@gmail.com Website: http://www.infinityinvestments.net/
ECONOMY
Cities Where African Americans Are Doing the Best Economically
S
ince the beginning of the American nation, African Americans have been treated severely unfairly. When they took their first step in this country, they were put to work immediately for the white man as slaves. But times have changed, and African Americans can now actually make a comfortable living. According to an article by the Atlanta Journal Constitution, these are the cities where African Americans are the best economically.
seem to be doing great for themselves. And with 17.1% rate of self-employment, it’s no wonder African Americans flock to Atlanta. The city is home to a rich culture of art and music. It sounds like a really great place to live.
Raleigh, North Carolina
Raleigh, North Carolina is another great city for African Americans with great economic growth. Atlanta They have a median yearly gross of $42,285. Their homeownership rate is at 46.7%, and 12.8% of them With a median yearly gross of $41,803, Atlanta is are self-employed. It is also home to the African reported by Forbes magazine as the number one American heritage. With a wealth of museums on the city where African Americans are doing the best history of African Americans, this is a great city in economically. With homeownership at 46.9%, they which to brush up on your historical education. The The PIN Magazine | June 2017
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Americans. The nation’s capital, with all of its rich history, is a great place to live. It is home to many people who work for the U.S. Government who can earn higher wages than in most other jobs. Also, there are many great schools that apply the thinking threshold for younger minds. Charlotte, North Carolina and Baltimore, Maryland These two cities tied on this list, so it is fitting that we talk about Charlotte, North Carolina and Baltimore, Maryland together. Charlotte has a median yearly gross of $36,522, whereas Baltimore earns a higher median yearly gross at $47,898. Baltimore also edges out Charlotte with homeownership at 46.2%, whereas the latter is at 43.9%. Even the rate of self-employment is higher in Baltimore at 15%, and with Charlotte at 13.6%. Raleigh, N.C. African American Cultural Center is a place where visitors can enhance learning through an on-site library, and they can also see exhibits by prominent Africans and African Americans.
Washington, D.C
Florida In the tropics of Orlando, Florida is another city where African Americans thrive. They have a median yearly gross of $36,749 per household. Their homeownership is at 44.9%, and their self-employment rate stands at 11%.
Washington, D.C. is where the money is at, but it ranks at Richmond, Virginia number three on this list. The median yearly gross is $64,896, This is truly a place for African with 49.2% homeownership and Americans to have fun. With 15.1% self-employed African www.thepowerisnow.com
many beaches and theme parks like Universal Studios and Walt Disney World, who would not want to live in this beautiful state? Richmond, Virginia ties with Orlando as being one of the best cities for African Americans. They have a median yearly gross of $38,899. They also edge out Orlando with a homeownership rate of 47.8%, as well as selfemployment of 12.7%.
Times have changed Times have changed since America became a country. African Americans are afforded more opportunities to do well for themselves. They now have the freedom to choose the path they want to proceed on. The cities listed above are most likely the best way for them to reach their goals in life.
Conclusions: These cities offer some of the best education opportunities and culture that African Americans can feel comfortable in. These cities have so much to offer, from rich history to arts to music. These cities are ideal for African Americans who want to life full lives. The numbers do tell it all. These are the cities where anyone one can make it in the world. So do your research before embarking on this world, and make sure where you are living sets you up for success.
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REAL ESTATE
REAL ESTATE MARKET IN SAN DIEGO, CALIFORNIA by Lorraine Santirosa
Overview They used to call it “The Fortune.” It is the City of San Diego, CA, one of the best markets in the real estate industry and one of the top U.S. destinations for international real estate investment. But what makes San Diego a highranked real estate market today? Some people claim it is because it is a neighborhood of Los Angeles and gets a lot of attention. San Diego’s real estate market continues to break records on speed as total equity gains at the national average–sometimes even double or triple. Figures show that total equity gains for the real estate market in San Diego are the highest in the nation and are growing every day. In San Diego, median sales prices are increasing by 8% every year. Also, the rent per month is rising by 3% on average.
Home Prices and Values Some real estate market studies say that the total value of homes in San Diego in 2016 was nearly $596 billion. The average home value in San Diego is $555,700. Home values are up 5.6% over the last year, and statistics predict that there will be an increase of 1.5% next year. The biggest impact in the next several years will be the foreclosures, since 0.7% of homes in San Diego are foreclosed, which is 1.4% lower than national value. The foreclosure process is happening because of mortgage delinquency, which happens when homeowners cannot make a mortgage payment.
Single-family homes The value of single-family homes in San Diego has risen from 2% to 7% in just a month. It was $559,950, and now is nearly $570,000. Throughout the
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state, the average sale of a house was $478,790, or 2.2 % less than the previous month, and 7.6% higher than last year during the same period.
or townhouses, the average price was $385,000 in February, which is 1% more than in January and 10% more than last February. Also, the sales of condos have decreased when compared with last year. There The number of sold homes in San Diego decreased were 700 condos this month, or 8 fewer than last in February by 4.7% compared to January, but it is month and 115 fewer than this time last year. higher than last February by 4.8%. Spring is here, and that means this is the time when most people Conclusion are interested in buying a house. Some experts predict that we will see a small increase in listings. As we can see, San Diego is one of the “hottest� Other statistics show a decrease in the number of markets in the real estate industry, especially now in new listings by around 14% from last year at the February with a large number of available listings. same time, the largest decline since May 2013. The Most of the top market is in the Golden State, but average time to sell a house takes approximately San Diego is only one market in California. While four months. summer, known as the most popular time to buy a house, is about to start, people expect to see inventory Sales that will move fast and the highest home prices ever seen. As a result, this year is expected to be more Single-family home prices are 8% higher than last successful for the seller’s market than last year. year. Nearly 1,400 houses were sold last month, which is higher than in January but less than in February 2016. When it comes to condominiums
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REAL ESTATE
SUMMER IS THE PEAK OF REAL ESTATE BUYING
T
here are definitely many factors that contribute to buying and selling of real estate, and the season of the year is a major contributor. Statistics show that there are more sales during spring and summer. Most people just want to be out sunbathing, and if you can have the best swimming pool in your yard, a beautiful exterior, good air conditioning, the house will be just perfect for sale and buying. According to a National Bureau of Economic Research paper from 2012, the weather contributes a lot to the psyche to buying houses and signing contracts. It proceeds to suggest that if the house has a swimming pool and air conditioning, it easily plays with the mind of the buyer and they can see themselves enjoying the pool and they become quick to buy. Fannie Mae’s Home Purchasing Sentiments Index indicates that people’s feelings towards buying and selling houses is affected by the seasons of the year too. Qiang Chai says it is easier buying and selling houses during spring and summer than it is during winter. It’s important to note that timing the buying is a factor to consider as well as the location, nationally, houses are bought and sold during warmer weather.
Points of consideration for housing trade during summer There are definitely best and worst times to buy anything. The National Association of Realtors says that new listings are 15% greater in the
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warmer months than in the colder ones. If your dream home has many things you desire, it might be a good time to check for houses because there will be many houses to choose from. The biggest disadvantage, however, is that the prices may go higher because the potential buyers could be many.
Prices in relation to the seasons
There is much evidence that the selling and buying of houses happens during spring and summer. this affects house prices negatively, in that the houses are better priced at this time of the year than in colder seasons. Even though the real estate business makes Once you have bought your house and want to move great business at this time, buyers are expected to get in, it is preferable to move during hot days rather than good quality houses but at very high prices, making freezing days. Packing is easier, and cooling your it not such a good time to buy. body down is much easier than warming yourself. It’s further easier to move during summer holidays with your school-going children than it is to move during winter or spring break.
What are some of the points to consider when buying during the summer? Examine the inside and The heated time of the year Ensure summer competition outside of the houses can reveal house problems does not affect you It’s easy to get carried away during this time by the kind of finishing done on the exterior of the house, the aim of which is to attract you, the buyer. Remember to keenly examine the inside for all the things you wanted in your dream house.
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There are places in the houses that would never reveal to you the problems that the house has at other times of the year. When you get into the house, check the windows to see if they have cracks, and check the central air to ensure that it is in proper condition. You can also check the lawn to ensure irrigation works and the grass is not dying.
You may find your dream house, but also find that the price is outrageous. Look for a cheaper house rather than fall victim to stiff competition. Houses are a great investment. Even though there are many major factors to consider when you want to buy a house, you must understand that the seasons of the year have great impacts on your decision. For example, during summer–and specifically warmer weather–most sellers show their best houses. On a keen search, you may just land your dream house, but potential buyers are also many at this time of the year, which affects the prices due to competition. This makes winter a good time to buy at a low price, even though there are never many offers on show.
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REAL ESTATE
Fannie Mae Assisting Homeowners Struggling with Student Debt
F
annie Mae is providing some relief for homeowners who are struggling with debt from student loans. Many people with student debt say that their student loans are a big reason they have not taken any steps towards buying a home of their own. Fannie Mae, which is the largest purchaser of mortgages in the US, recently announced three big changes to their policy that can make it a lot easier for those with outstanding student loans to qualify for a mortgage. These three changes, all of which are effective immediately, will greatly help people struggling with student debt in the process of becoming homeowners.
Repayment Plans This first change helps to simplify the calculation of the monthly student loan payment, and is very beneficial to those using income-driven repayment plans. Many people with student debt have what are called negatively amortizing loans, meaning that the monthly payment is less than the interest building The PIN Magazine | June 2017
every month. This results in an outstanding balance that is growing every month, even though payments are going towards it. This situation is actually fairly common for those using income-driven repayment plans, because these plans allow you to put only a very small percentage of monthly income towards paying off student debt. Although these programs are helpful for many people since they can greatly decrease a monthly debt payment, they come with a trade-off. The longer amount of time that payments are stretched out over, the more interest accrues, meaning that while these plans seem easier for the time being, you can end up paying a lot more in the long run. Under Fannie Mae’s new guidelines, those struggling with student debt can use the payment information on their credit report to figure out their debt-to-income ratio, or DTI. Those that have income-driven repayment plans can now calculate their DTI using the payment information from that plan.
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Debts Being Paid by Others
of using home equity to pay off student loans. A cash-out refinance option has always been available for those with home equity, but previously if the cash-out amount was higher than the amount of the mortgage, it would often come with more fees or a higher interest rate. With this new policy, the interest rate being used to pay off student debt will be the same as the mortgage. Since most mortgage interest rates are cheaper than rates on private student loans, this will ease the burden for people with student debt. This change does, however, come with a few rules. In order to be eligible for the payoff, at least one student loan must be paid in full directly to the loan holder at the time of the transaction. This transaction can also only be used for student loans that the mortgage borrower is personally legally responsible for.
Another piece of good news for those with student debt is if someone else is making payments on that debt–like a parent, employer, or other benefactor– those payments can be excluded from the calculation of the mortgage. Oftentimes, parents cover the student loan payments for their children until the student is financially able to take on the payments themselves. On top of that, more and more employers are adding student loan repayment to the benefits they offer their employees. Under the old policy, the debt-to-income calculation did not take into account the possibility of student debt being paid off by a parent, employer, or other third party. However, under these new guidelines, debt payments made by someone else can be excluded from their calculated mortgage. All this requires is official documentation that a third party is making payments to the student When looking into homeownership and mortgages, it is important for everyone to do their homework– debt. especially those with outstanding student loans. It is important to keep in mind the best option for both Cash-Out Option the present day and in the long term. Obtaining a This third policy change by Fannie Mae introduces mortgage is still a challenge for those with student a cash-out refinance option for those with student loans, but that does not mean it is not an option. loans. This is a very beneficial and cost-effective Many people today are struggling with student alternative, especially to those with private student debt, but that should not stop them from becoming loans rather than federal ones. This feature now homeowners. gives people struggling with student debt the option www.thepowerisnow.com
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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
LEGAL
Federal Laws That Affect
REAL ESTATE CLOSING
I
n closing a real estate transaction, both the seller and the buyer must comply with a number of federal laws that have been enacted to protect the buyer as well as the government. Normally state and local laws regulate mortgage flipping, amortization regulations, and prepayment penalties in all aspects of home mortgages. Congress enacts these laws to prevent unfair lending. This allows the buyer to review all the terms and interest rates of the mortgage offer before closing. As a result, they may make informed decisions. These laws also protect the health of the ordinary consumer as well as their financial interests. As for the government, there are also laws that assist the Internal Revenue Service with information on real estate financial transactions. Lenders must comply with these limitations on rates on mortgage loans; specific information on rates must be disclosed to the buyer before settling or closing the mortgage transactions. The federal government has provided measures to protect consumers during the home buying process.
Fair Housing Act – enacted Truth-in-Lending Act in 1968 enacted in 1968 Enforced by the Department of Housing and Urban Development, this law protects consumers against any form of discrimination, be it on the basis of race, gender, handicap, religion, age or family status. Under this law, lenders cannot deny a consumer a mortgage loan on the grounds of any of the above factors. A lender may not change the mortgage terms, alter or decline appraisals, or withhold any information from the consumer.
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The borrower is protected by this law by ensuring that all terms and costs of credit are laid on the table. With this knowledge, they can shop around and choose the best loan terms. There is also a provision to cancel the loan process within a stipulated timeframe. This law requires the lenders to disclose all details that come with home mortgage loans, including the Annual Percentage Rate (APR), the exact amount of the loan, all the financial charges, the total price inclusive of down
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payment, and the total amount the buyer is required to pay throughout the life of the loan, including the interest. Borrowers are also allowed a period of three days to decline the mortgage loan offer.
Real Estate Settlement Procedures Act (RESPA) – enacted in 1975 In this regulation, certain documents must be made available to consumers during the application time or within three days of application. A Good Faith Estimate is a special
information booklet together Servicing Disclosure statements.
with
Mortgage
There is also a document known as the HUD-i statement that shows the actual costs as compared to the Good Faith Estimate, and also the Affiliated Business Arrangement (AfBA) Disclosure. In cases where it is necessary, the lender must also provide an Initial and Annual Escrow statement together with the Service Transfer statement.
Home Ownership and Equity Protection Act (HOEPA) – passed in 1994 by Congress This law was passed to prevent mortgage loan lenders from applying fraudulent tactics or any other predatory means in loans. These crude practices prevented the buyer from realising the equity in their homes, hence making foreclosure a high probability.
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This law covers 1st and 2nd high-cost loans that are required to be repaid within fixed terms. Certain disclosure requirements are put in place for the lenders to follow when extending these high cost loans to borrowers. Limitations are also laid out to which lenders must comply. In addition to regulating high-cost loans, HOEPA also authorises the Federal Reserve Board to act towards preventing fraudulent practices in regard to all types of mortgage loans.
Lead-based paint disclosure Sellers of residential buildings built in 1978 or later are required to report any known presence of paint that is lead-based. Both the seller and the buyer must sign a disclosure showing that both parties acknowledge compliance with the lead-based paint disclosure.
A buyer may carry out an inspection of the premises within 10 days after signing the Internal Revenue Service (IRS) settlement agreement. A government-approved pamphlet carrying information about the Mortgage loan agents must report the implications of lead-based paint in a house is amount of sale proceeds to the IRS. This is, made available to the buyer. however, only applicable for certain real estate settlements. Generally, transactions dealing Conclusion with residential home sales must be reported to this body if the sellers have not lived at the As prospective homebuyers, you can make property in question for two of the preceding an informed decision on real estate mortgage five years. loans. There are laws put in place to protect you and make your settlement smooth sailing.
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LEGAL
HOW TO CHANGE MORTGAGE COMPANIES
Y
ou may be considering changing your How to change your mortgage company mortgage company to get a lower interest rate (which means a better mortgage payment), • Determine if you are eligible. to reduce your mortgage term, to change from an • R equest your mortgage appraisal and other adjustable-rate mortgage to a fixed-rate mortgage, or credit reports for the past few years to ensure because their services just no longer suit your needs. you have no late payments on your mortgage or other accounts, which is an indication of an Whatever your reasons for wanting to change your improvement on your credit score. This will mortgage company, it can lead to a lot of savings improve your chances of getting better mortgage for you. Since most mortgage companies will not offers from companies.[1] want you to take their business to another company, • Search for mortgage companies and contact it is best for you to discuss your desire for a better them yourself or hire a mortgage broker to do it mortgage rate and/or terms and conditions with your for you. A mortgage broker can also assist you current lender. If your current lender will not offer through the process. you better rates and terms, then you can consider • Request a Good-Faith estimate of loan changing your mortgage company. origination fees, monthly payments, and a list of closing fees and total loan cost from each of You can choose to change your mortgage company: the companies. With the annual percentage rate in mind, compare their offers and decide which • when your mortgage term comes up for renewal company best suit your needs. • partway through your mortgage term • Submit a loan or mortgage application together with whatever documents your new lender might have requested. You will have to go through an
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approval process similar to the one that you went through with your first mortgage. • Your new mortgage company will consider your income and assets, credit score, other debts, the current value of the property, etc. If your credit score has improved, you may be able to get a mortgage at a lower interest rate. On the other hand, if your credit score is lower now than when you got your current mortgage, you may have to pay a higher interest rate on a new loan. • Meet with your new mortgage company representative to sign all documents. • Make sure you seek professional advice. You may be requested to pay several fees, including an application fee (cost range = $75-$300), appraisal fee (cost range = $300-$700), points (cost range = 0%-3% of the loan principal), loan origination fee (cost range = 0%-1.5% of the loan principal ), inspection fee (cost range = $175-$350 ), attorney review/closing fee (cost range = $500-$1,000 ), etc.
When changing your mortgage company is a bad idea 1. When you have had your mortgage for a long time. The amortization chart below shows that the proportion of your payment that is credited to the principal of your loan increases each year, while the proportion credited to the interest decreases each year. In the later years of your mortgage, more of your payment is credited to principal and helps build equity. By changing mortgage companies after many years of payments, you will simply be restarting the amortization process, and most of your monthly payment will be credited to paying interest again and not to building equity.
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Amortization Chart courtesy: https://www.federalreserve.gov/pubs/refinancings/default.htm
2. When your current mortgage payment has a penalty Some mortgage companies request a prepayment penalty. That is a fee that lenders might charge if you pay off your mortgage loan early, including when you want to change companies. Paying a prepayment penalty will increase the cost of changing mortgage companies. This is one reason it is advisable to discuss with your current lender for a better offer before deciding to change. So you should carefully weigh the costs of any prepayment penalty against the savings you expect to gain from changing mortgage companies. If you intend to move from your home in the next few years, changing your mortgage company is a bad idea, as this will increase the break-even period. So carefully consider the entire cost of changing your mortgage company before taking the leap.
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LEGAL
How to Remove the Co-Owner from a Property Deed in California
A
deed conveys official ownership of property. When co-owning a home is no longer viable, it is possible to remove one party from the deed. However, this can only be done when the relinquishing party concedes. Removing a name from a deed by “force” is a tough thing to do, and is often ensued by lawsuits. Whether it is due to death, divorce, or change of circumstances in your personal life, there is a process that needs to be followed in order to achieve separation of names on a deed.
history or chain of title. The owner leaving the co-ownership agreement gives this document to the remaining owner. There are two common deeds of conveyance: a quitclaim deed and a warranty deed. For example, your spouse may convey the deed of conveyance, surrendering their homeownership rights over to you.
In California, these deeds are only valid if they are properly executed. This proper execution involves a couple of factors. For instance, the deed must contain ownership conveyance words such as “I This process varies depending on the city hereby grant.” It also must contain the and county. It is generally paramount that signature of the conceding party or the you have your paperwork reviewed by an person conveying the deed. Validation is attorney. also assured when the remaining owner accepts the deed. Notarization is required This is how it is done in California prior to validation. Whereas recording of these deeds is paramount in case of future First, obtain a deed of conveyance or disputes, it is not imperative for validation. transfer Second, complete the quitclaim deed This is commonly the way to go when This document can easily be obtained removing a name from a deed and its from a stationery store, your county
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recorders, or the public law library. In case of of a Notary Public. Notary services are also downloading, it is important to ensure that you offered by many banks free of charge. follow specific guidelines on, for example, the • You are required to fill out a preliminary size of paper used in printing. The wrong size Change of Ownership. The law library or of paper could cost you more when paying the country recorder are good resources for this regular recording fee. particular document. During recording, you have to fill out this part of the ownership • Fill in the names, keeping in mind that transfer. It is a simple one-page questionnaire the grantor is the person relinquishing necessary to have in case of a tax assessment. ownership. • Record the quitclaim deed as well as the • Fill out the legal description. This can be preliminary change of ownership. The copied from the current deed. If the deed is recording office is where you carry out the not with you, it can easily be obtained from recording. There is a recording fee that will the registrar of deeds. be charged to you. This process will ensure • In the tax assessor’s number docket, get the that you retain a copy of the deed for your identification number from the current deed record. or a tax bill. • The special clauses section entails the Involuntary deed removal reasons and condition of the transfer. In case of divorce, as you write your statement, This is the process of removing a person’s name refer to the dissolution of marriage, which is from the deed without their approval. It is a very normally granted by one spouse to another. difficult task to undertake. It involves partition • Next, indicate the consideration. This is the lawsuits that are expensive and tiresome. Such price paid for the property. If you bought the partitions are, however, not allowed when owner’s share, the amount you paid the co- divorce-related disputes are involved. Most owner is the consideration price. judges will rule on the sale of the property and • The indicated consideration price is what the splitting of the proceeds among the owners. governs the transfer taxes. This is the amount on which you will calculate the tax. When our personal circumstances change and • However, there is some exempt transfer we no longer think it necessary to co-own under the Revenue and Taxation code. You property, it is okay to have the co-owner’s name will need to check with your tax assessor to removed from the deed. When done in the right know the amount you are required to pay. manner, both parties win and there is sustained • Obtain the grantor’s signature in the presence peace and harmony.
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MORTGAGE
READY TO REFINANCE YOUR HOME:
WHAT YOU NEED TO KNOW?
R
efinancing is the replacement of existing debt or debts. Terms and conditions differ depending on the regulations of a country, province, or state. Factors such as inherent and projected risk, a nation’s political and currency stability, bank regulations, credit appraisal of the borrower, and a nation’s credit rating should be considered. Replacement of debt can be caused by a number of factors: • • • •
inancial distress and the need to consolidate debt. F To take advantage of lower interest rates. To reduce the monthly payment amount. To reduce or alter risk, for instance opt for a fixed-rate loan as opposed to a variable-rate loan. • To free up cash. This may help borrowers in financial difficulty to reduce monthly repayments. • In a personal financial scenario, it is easier to manage consolidated debt rather than multiple debts.
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When should you refinance your home?
credit history is used by the bank to determine how much to lend you. The appraisal is used to protect the bank in a case where a foreclosure occurs. The bank has to be able to resell your property and recover its loan. This also prevents the bank from over-lending. Benefits of refinancing
When mortgage rates drop, it may be logical to consider refinancing your home, whether you have lived in it for two years or for more than a decade. Have you ever refinanced you home before? If your answer is no, then there are a few things you need to Your overall financial plan should be the determining know before making that crucial decision. factor as to whether or not to refinance. The majority For instance, let’s assume you have been faithful in of people decide to take the refinancing step when your monthly mortgage loan repayments and over interest rates drop. This is in order for them to pay time your income has escalated considerably. This is less and also to lower their monthly payments. good, but it’s not an automatic plus when it comes to Others refinance when their equity has risen. They getting that refinancing loan. You will have to apply want cash from the property. They use this for home for a new loan. You may use the same lender or opt improvements or to pay off the ever-escalating for a different one, but you will have to go through interest on credit card debts. the same drill you went through when obtaining the first loan. To add to this, you need an appraisal of the Process of refinancing property that you are refinancing. Once you are ready to refinance, you must: This includes having to fill out all the necessary paperwork, verification of your income, assets, • Complete the application for the refinance, credit profile, and your job history and debt-to- • Provide your consent to carry out the transaction, • Make available the required documents (i.e., income ratio. signed disclosures, pay stubs, W-2s, bank statements, details of your employment, tax What is home appraisal? returns, etc.), • Have your home appraised, Whenever you apply for a refinancing loan, the bank sends a person to value your property and give • Get an estimate of the loan, an appraisal which then determines whether you • Receive a final decision, and qualify for the loan or not. The appraiser is a 3rd • Finally close the deal! party who has no personal or official interest in this process. There is no “catch” for him, even if you Conclusion get this loan. A home visit is made by the appraiser. He/she then measures its dimensions, evaluates and Refinancing is a good decision, as you can reduce examines its amenities, and records its interior and your overall repayment from 30 years to 20, 15, or exterior conditions. He then takes photos of both the even 10 years. Keep in mind that the repayment rates inside and outside, making sure to include all the will go higher since the repayment period has been rooms of the house. Further, he will also examine reduced. This is a huge burden off your shoulders. the records of the neighboring home properties that Refinancing will also free up some cash for you once are similar to yours. He pays closer attention to the you consolidate your debts. This will allow you to undertake future projects or repay interest on your properties that have sold most recently. credit card debt. Refinancing will generally improve This information will guide him into making a your financial situation. Just ensure you make the recommendation to the bank. A professional opinion decision in accordance with the financial plan you from him will help the bank make the final decision. have laid out for yourself. This value, along with your income, assets, and
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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
MORTGAGE
The Good, The Bad and The Ugly
OF REVERSE MORTGAGES
I
f you’re a retiree concerned about your finances program and you own a home with equity, taking out a • Have a home that meets FHA property Reverse Mortgage loan can be a good option. standards Just as in taking any other form of loan, it is best • Maintain their home with needed repairs, pay to carefully consider the Reverse Mortgage loan home taxes and pay insurance requirements to determine if it is worth it. • Let’s take a deep dive beyond the appealing commercials to consider the good and bad Reverse mortgages are a type of home loan sides and pitfalls of Reverse Mortgages. for seniors who own a home. In regular home • Advantages or benefits of a Reverse Mortgage mortgages, you buy your home over time by • Most people living in retirement might find paying your lender every month. But in a Reverse themselves needing to downsize or just get Mortgage, you are the one being paid by the by on a monthly basis. A reverse mortgage lenders. It is simply an easy way to get extra cash is a great way to get the financial means to by tapping into the equity you have built up in enhance your lifestyle and do the things you your home. Instead of outright selling your home have always dreamed of doing in retirement. for cash, a Reverse Mortgage loan allows you to • The payments you get from a Reverse convert part of your home equity into cash. Mortgage are not taxable, hence you do not pay taxes on them. It is a way to get tax-free The amount of Reverse Mortgage loan one can money that can be used to settle debts and pay get depends on several factors, such as the age off other recurring payments. of the youngest borrower, current interest rates, • A Reverse Mortgage loan will generally and the lesser of the appraised value or the FHA not affect your Social Security or Medicare insurance limit. You do not have to repay the loan benefits. This is a great source of extra income as long as you live in your home. Repayment is to supplement retirement plans without deferred until the borrower dies, decides to sell downsizing or moving. the home, or moves out of the home. You can • The value of the home is used to determine choose to get the money in a lump sum payment, eligibility, not the homeowner’s current as a monthly payment, or as a credit line. income. • Reverse Mortgage interest rates are either How to know if you are qualified for a fixed or adjustable. Most are adjustable. Reverse Mortgage • Homeowners can keep their homes until they move, sell, reach the end of their loan term, or Depending on the requirements of the lender, all pass on. borrowers must:
Disadvantages of a reverse mortgage
• B e at least 62 years of age • Own a home and currently live in it • The borrower must continue to live in the • Participate in an information counselling home. He risks foreclosure on the home if he
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•
•
• • •
lives somewhere else for more than 12 months. Because borrowers do not make monthly payments on a Reverse Mortgage, the interest on the loan are added to the remaining balance of the loan each month, and your loan balance may eventually exceed the value of your home. The borrower must continue to pay all property taxes and insurance. If a borrower fails to meet this requirement, the lender can foreclose and the borrower could lose their home. The borrower risks losing his home if he does not keep the home in good repair. If the last surviving owner/borrower passes on, the loan must be repaid before the home title can be transferred to the borrower’s heir. Interest compounded on a Reverse Mortgage cannot be deducted from income taxes until it is
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repaid. • In most cases, the home must be sold to pay back the Reverse Mortgage loan, and there may not be any money left for the borrower’s heirs. • Usually, interest rates and upfront costs are higher for a Reverse Mortgage than for a regular mortgage or for other equity loans. • Borrowers will need to pay interest on insurance premiums, broker’s fees, closing costs, and service fees. Before deciding to tap into your home equity, do intensive research and consult with a legal adviser and a counsellor from a government-approved agency. You would do well to also speak with your family about your plans.
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GREEN
GOING GREEN: Marketing Tips for Real Estate Agents
A
re you passionate about real estate? Or maybe you are just starting out as a realtor and you are confused about the dynamics of the real estate world. One of the many factors that throws off new real estate agents is lack of proper information. The key is to understand that information is the fuel that will drive you from building castles in the air to actually growing a successful firm.
What it takes to be successful in real estate Just like any other business out there, knowing when and how to act is all it takes for you to be successful in the real estate business. Marketing yourself is one of the killer factors that will help you hit the ground running and make something out of nothing. Some people will make you think that succeeding as a real estate agent is just as simple as going out to the prospects and making sales; while that may be true, the process is not what it seems like on the surface. There is so much that goes on in and out of the real estate world, and thus you need to be equipped with the right tools and to strategically position yourself in your target market; but again, a question arises: how will you be able to do this? Simply put: marketing.
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Marketing yourself as a real estate agent Marketing for any organization is a powerful tool, one that differentiates between a successful real estate agent and a complete failure. As such, what are you using to market yourself and put yourself in the front row seat when it comes to your prospects? Different techniques lead to success; different people prefer different methods. The level of success you experience, putting into consideration all other factors, will depend on how well you have marketed yourself as an agent. Therefore, here are some killer tips that will help you market yourself as an agent insofar as going green is concerned.
Green movements: be a member Maybe you have realized this, but most home hunters are looking for eco-friendly homes. Therefore, as an agent, you will want to bring yourself up to speed in knowing what green living is all about. Joining a green movement will help you understand the specifics in eco-friendly environs to increase your clientele satisfaction. Also, it presents a better
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chance for you to know what works and what does not. Green movements are all over, providing useful tips and training of agents who want to know more about incorporating sound environmental principles into real estate. This is also an opportunity where you may opt to specialize as a Green Real Estate Specialist.
Work with the best real estate company Best to you may vary. One of the key considerations to look for in a company is their take on environmental concerns. As a beginner in real estate, you do not have that much reputation. Therefore you need to attach yourself to a big body for shelter. But in so doing, you need to look at the company’s core concepts insomuch as services to consumers are concerned. If the company is embracing the green revolution as part of their services, then that is a good place to start. Remember, you want to work with what works. If the company is really not into the green revolution, then this may point to the fact that the company has not yet evolved to accommodate new technology, which may do damage to your reputation as an agent.
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Your market: what they really want
Do your research
Marketing involves you as an agent going out there and figuring out what the market wants. Then after so doing, you develop your services around the market’s needs. You need to know where your prospects source information on their purchases. With this kind of information, you can make good choices on how to market yourself.
Research almost carries half of the credit of your success. You need to constantly research your market, since from time to time your market will change. Being conscious about your market will help you in marketing yourself.
Also, it is imperative that you have a specific niche that you are addressing. Generalizing is not a bad One key element in analysis of the market’s needs thing, but having one specific area will help a lot in and wants is asking yourself “What is the market putting yourself on the success map. looking for?” After that, come up with a list of how to specifically address the concerns of the market. Marketing does not involve much as long as you have a specified route. Then, getting to success becomes a lot easier and more attainable. It is something that may take time, but once you have developed your skills in marketing yourself as an agent, all you have to do is watch as everything aligns itself for you.
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THE POWER IS NOW MORTGAGE SERVICES
A Division of The Power Is Now Inc.
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 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.
GREEN
FUTURISTIC CONCRETE HEALS ITSELF WITH BUILT-IN BACTERIA Concrete is one of the most durable building materials. It is widely used for construction and in different types of buildings and roads as it provides better fire resistance than wooden construction and it is relatively inexpensive compared to other building materials. The biggest downside of building with concrete is its tendency to develop internal damage over time, which can greatly reduce the structure’s service life, increase maintenance costs and raise many environmental issues.
The concrete
ancient structures surviving to the present day undoubtedly prove that as well. Since Roman times, two important changes have been made to concrete: today it is a homogenous mix, which can be easily poured and molded, while in Roman times it was much coarser material that had to be layered by hand; second, Roman concrete depended purely on its own strength, while modern concrete is reinforced and thus more durable.
Concrete is composed of coarse aggregate, such as gravel and crushed rocks (limestone or granite), along with fine elements, such as sand, bound together with a fluid cement. It starts as a fluid mixture, which is easily poured and molded into shape and through a chemical reaction with water, cement and the other ingredients gradually harden and form a sturdy and durable material. To add strength to the structure, reinforcing materials such as steel bars, are often However, reinforcement of the concrete does not resolve all the issues with its durability. Generally, imbedded in it. all materials degrade over time due to wear and The earliest recorded usage of concrete goes back tear or environmental conditions. The elasticity of thousands of years ago, but it was used only at a concrete is relatively constant at low stress levels but small-scale until the Ancient Egyptian and Roman decreases as the stress level increases. It has a very civilizations. In fact, the word concrete comes from low coefficient of thermal expansion, meaning it the Latin word “concretus�, meaning compact or does not expand much as temperatures increase, and condensed. The Romans used concrete extensively tends to shrink as it matures. When subjected to longfor over seven centuries, which helped them duration forces, concrete develops internal damage, revolutionize architecture previously limited by which shows as cracks at microscopic levels. The to stone and brick material. Scientific tests have micro-scale cracks have been shown to change the shown that Roman concrete had as much strength thermal, electrical, and acoustical properties of the as modern Portland-cement concrete, and many materials, and their propagation can lead to eventual material failure.
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Nature-inspired solutions Microscopic cracks are hard–often impossible–to detect through manual inspection, unless they have developed into macroscopic flaws in the structure. When there are cracks in concrete, water and gasses come through them, dissolving the material and corroding the steel bar reinforcement. Because of that, it is important to control crack width and to repair it as soon as possible, before the whole structure collapses. The conventional solution is to manually repair damage once it is discovered through inspection, but in addition to being costly, this method also does not restore the structure’s original integrity. As always, nature provides us with the best solutions. It often builds with materials which can repair themselves–plants and animals have the ability to seal and heal their own wounds by mechanisms from within the organism. Inspired by these properties, scientists have been looking for a solution to concrete weaknesses. The idea was to develop a self-healing material, with a built-in ability to automatically repair damage to itself without any external diagnosis of the problem or any other human intervention. Henk Jonkers, a microbiologist at Deft University of Technology in the Netherlands, has designed a new type of concrete that is able to fix its own
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cracks–it heals itself using the power of amazing bacillus bacteria. These bacteria can survive without food, water, or oxygen for years in the alkaline environment of the concrete. They are placed inside biodegradable plastic capsules and mixed in with the wet concrete, where they can remain dormant for decades. When the micro cracks start to develop and water eventually seeps in, they are activated and start producing limestone sealant to close up the cracks. Other researchers in the U.K. are working on a very similar concrete project with the idea of using bacteria as glue or plaster rather than building it into the concrete itself. However, Jonker’s solution is the only one that has been tested in the field, with a selfhealing lifeguard station that is already beginning to show signs of self-repair. In an era of growing environmental protection awareness, self-repairing materials are a revolutionary new idea that we should all look forward to. Self-repairing technology will lower the repairing costs and make the concrete more durable, and the property to instantly correct damage caused by normal usage will also make the concrete building more sustainable. While we often forget that we are a part of the nature that surrounds us, this is a unique way to redeem ourselves and tie nature and our building environment together.
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COMMUNITY
Father’s Day should be
a Federal Holiday by Eric Lawrence Frazier MBA
H
appy Father’s Day to all the fathers in the world! Your role in the family and your position in society are more important today than it has ever been before. I know this because I am a Father and have experienced the joys and challenges of being a father for 33 years. As children, we grow up wanting to be like our fathers, but then realize at some point in our lives that fathers are not superhuman after all but only human. They have the seemingly insurmountable job of parenting, providing, leading, nurturing and protecting the family. I am grateful to my beautiful wife Ruby who made fatherhood a reality for me, and for my father who transitioned to heaven on April 15, 2005. I only wish he were here, so that I could tell him often how very much I appreciate him for making me into the man I am today. Father’s Day should be a federal holiday, because it is really Parent’s day and it should be celebrated as such. Parenting is more than just raising a child. When “parenting” is defined as shaping a child’s
The PIN Magazine | June 2017
attitude, character, behavior and associations, opening channels in their lives where God’s grace can flow in, then I could not be the father they need without their mother Ruby, and she could not be the mother they need without me. Ruby and I have raised four incredible daughters that we love very much. I didn’t think it was possible to produce offspring that would be as intelligent and accomplished as they are at such a young age. I am very proud of each one of them and their accomplishments. Ruby and I are also very grateful for the honor of being grandparents and for the parenting of their mother and father, Briana and Virgil. I am two years in the game and still can’t believe that we are grandparents. Our grandchildren, Carrah and Chole are so adorable that we can’t help but spoil them every chance we get. Thank God for parents who give a more balanced spectrum of parenting and can compensate for the grandparents’ indulgence of spoiling them.
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importance and contribution in society and the world.
The sheer courage, perseverance, and tenacity it takes to be a father is deserving of recognition, whether or not girls or boys are being raised. I am proud to be a father of four girls, which may be considered easier than a father of boys. I am the oldest of seven
children, five of whom are boys. My parents raised seven awesome children who are all doing very well, and I am baffled and amazed at how they accomplished it. We were blessed to have such great parents. I am blessed and eternally grateful for an early start at marriage to my wife Ruby and for bringing our children (Jessica, Briana, Erica and Raela) into this world. Ruby and I just achieved a new milestone of 35 years of marriage. Life is good and being a Father is awesome! We all know that Father’s Day is not a federal holiday, but the question is why not? Having now been a Father for so long, I am fully convinced that not only should Father’s Day be recognized as a federal holiday but Mother’s Day as well. How did that not happen? Who’s in charge of the holiday committee at the federal level? I say close everything down on Father’s Day and Mother’s Day and let’s all celebrate their mutual
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I appreciate public holiday recognition of fathers and mothers. However, let’s make it more than an honorable mention and give federal recognition for the parents of all children. The challenges parents face today are unprecedented considering the state of affairs in our world – from the intrusive and predatory nature of the internet and social media, to the legalization and moral decline regarding decency, drugs, education, and the imbalance of the justice system for minority men of non-violent crimes. An insatiable appetite for money, fame and power in the entertainment industry has produced an all-out assault on the influence of parenting through the production of violence and the unrestrained sexualization seen in television, movies, and hear on radio. Parents are faced for the first time in history with what seems to be an epidemic of children who are in crisis over their identity and sexual orientation. The divorce rate is the highest it has ever been in our history, and; children are being raised by single parents at a historically high rate. How do fathers and mothers raise children in today’s world? How do single parents sustain a home with the social, cultural, and financial pressures they face in today
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economic climate?
opportunity. It is never too late to make a difference whether you are a father or the remaining offspring How did my parents do it? They would say “by the of one. grace of God.” They had similar influences in the community from which to shield and protect their Being a father can be a thankless job as many go children, but it was nothing like what parents are unnoticed for their incredible sacrifice and impact dealing with today. I am thankful that my children on their families. What better way to hold dear the are all grown up, and have not been adversely contributions of fathers who have made our nation affected by most of today’s issues. However, I am great than federal recognition? What better way very concerned for my grandchildren and the world to hold dear the values and virtues of fathers who they are going to inherit. The traditional family have produced leaders that stand strong and triumph is under attack. What is normal is now abnormal. in adversity? Fathers and Mothers are making What has been valued, honored and esteemed more presidents of nations, civil right leaders and by our forefathers is now devalued, dishonored, explorers. They could not do this without mothers. and irrelevant. What is offensive, absent of any Yet, they keep changing the world by continuing boundaries, or moral compass and obscene is now to be who they are. That alone deserves a federal normal and just self-expression. holiday. Fathers are being marginalized and replaced by a sexual and gender revolution that is diminishing their role in raising children, and their calling as a member of the traditional family. A father is more than a tool for procreation. He plays an integral role in the development of a child’s understanding of their identity and role in society. The interaction between mother and father is a divine model for children and provides the foundation for their development and worldview. If your memory of one or both of your parents is negative and tainted, then consider the gift of what they have produced, which is you and your
The PIN Magazine | June 2017
The first-time Father’s Day was held in June was in 1910, but it was not officially recognized as a holiday in 1972 by President Nixon. Perhaps this was because of the Watergate scandal and President Nixon who, although was a father, didn’t have the moral standing to make the case. Consequently, there was no push to make Father’s Day a federal Holiday. I would be willing to wager my last dollar that if President Ronald Reagan had recognized Father’s Day during his Presidency, it would be federal holiday today. Everybody loved Ronnie!
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Now, you may ask, “What is the big deal?” Why am I pleasing this case? Federal holiday recognition is reserve for people and events that have made an indelible imprint on the world. It’s ironic that most federal holiday honorees are fathers:
I propose that all federal and state operations, all organizations, all businesses, and stores shut down for a day, so that we can all get together to celebrate and commemorate our fathers and mothers. The only exception I would make for businesses would be hotels and restaurants that have great Father’s Day and Mother’s Day Brunches with all the fixings. After all, it’s hard to celebrate without great food.
• M artin Luther King, Jr.: father of four – honored on January 16 • George Washington: step-father and surrogate father of many – honored on February 20 To all the fathers in the world who are earthen • Christopher Columbus: father of two – honored vessel made by God and endowed with a divinely on October 9 instinctive desire to protect, provide and developed their children, I say thank you. You are instruments Although Columbus’ claim of discovering America of righteousness, the very hand and feet of God who remains debatable and laughable to the American carry us, run to us, fight for us and love us until death Indians, he shares with the other fathers a federal do us part. You are man and woman creators, makers holiday. Given the fact that they are fathers and of leaders and thinkers. You are needed, loved, their impact on the world, shouldn’t Father’s Day respected, and honored, for who you are and what have a more substantive recognition by the federal you represent to children and to the world. Happy government as a federal holiday instead of a just Father’s Day! I am honored and proud to be one of public holiday? I think so. you.
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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/
COMMUNITY
Building Homes and Hope for the Future
J
oin us for our 1st Annual Community Development Music Series and Cultural Marketplace Fundraiser. Nabahood Community Development and Covenant Realty Family present this inspiring fundraiser. Our goal is to help to change lives by raising funds to build Affordable Housing and Increase Home Ownership for LowTo-Moderate Income Families. Affordable Housing is a countrywide problem that nearly every community in the nation is trying to address. Many Low-To-Moderate Income households are spending more on housing and earning less. We believe all hardworking individuals and families should be able to live in safe, decent housing and still have enough money for groceries and other basic necessities. With increasing housing costs and stagnant wage growth, many households are grappling with housing needs and require assistance with affording housing. The Riverside Metropolitan Statistical Area (RMSA), which includes Riverside and San Bernardino Counties, was one of the hardest
The PIN Magazine | June May 2017
hit foreclosure areas in the state of California and the nation following the epic housing crisis of 2008. The subprime mortgage crisis ushered in a tsunami economic rollercoaster that was unprecedented in modern times. As a result of shared economic development concerns, Selena Lindsey of Nabahood Community Development and Verta Guynes, principal Broker of Covenant Realty Family have joined a coalition to come together to unit their efforts to bring a solution to create more affordable housing for Low-To-Moderate Income Families. Nabahood Community Development is an established nonprofit organization that helps build communities, and cultivates and educates communities in the area of economic development and community revitalization. As the owner of different food bank organizations, FREE food will be distributed to families at the event. Covenant Realty Family is a reputable real estate brokerage located in Riverside County that specializes in working with first time
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home buyers, and assisted a multitude of families during the 2008 mortgage crisis through facilitating short sales, implementing strategies and providing counseling to families devastated by the economic downturn, while Verta juggled the loss of her own home in the interim, but was able to rebound successfully. Come be a part of building a BRIDGE to a better life, and become a partner in the community where everyone benefits. Festivities include live music, circus in the park, sports celebrity meet and greet, home buying breakout sessions that discuss How to Buy a Home With Little Money Down, Credit Repair, Special Mortgage Assistance Programs, Becoming
a 1st Time Home Owner, and State of the Housing Address. Event includes celebrity book reading and autographs for children, raffle drawing for a 3-day vacation, food vendors, special VIP pavilion for corporate sponsors and more! The event is scheduled for October 21st and 22nd at Guasti Park located at 800 N. Archibald Avenue, Ontario, CA. Event starts at 10am and runs until 6pm both days. The ticket price is $35.00 per person. Ticket allows for one adult with entry and pass. But not to restricted entertainment areas. The first 300 children are FREE! Children must be accompanied by an adult. Also, the first 300 families will receive FREE food as well! (Dry goods only).
Don’t miss out on being a part of creating a Dream Home Reality! Proceeds From The Fundraiser Are Used To Build Affordable Housing Subdivisions For Low-To-Moderate Income Families.
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De Bobak Ha’Eri - Trabajo propio, CC BY 3.0 https://commons.wikimedia.org/w/index.php?curid=7497856
THE JUNETEENTH HOLIDAY IS HERE it is time to rethink the true meaning of freedom
O
n the cold morning of June 19th, 1865, a force of two thousand Union soldiers under the command of Major General Gordon Granger arrived in Galveston, Texas with great news for slaves.
heretofore existing between them becomes that between employer and hired labor. The freedmen are advised to remain quietly at their present homes and work for wages. They are informed that they will not be allowed to collect at military posts and that they will not be supported in The news is captured in the excerpt below idleness either there or elsewhere.” – General quoted from Texas State Library and Archives Orders, Number 3; Headquarters District of Commission. Texas, Galveston, June 19, 1865 “The people of Texas are informed that, in accordance with a proclamation from the Executive of the United States, all slaves are free. This involves an absolute equality of personal rights and rights of property between former masters and slaves, and the connection
The order came two and a half years after President Lincoln issued the Emancipation Proclamation, granting freedom to slaves in Confederate states. However, it was not until 1865 that the slaves in Galveston received word that they were free.
Following the order, African Americans of Galveston began an annual commemoration of the day, marking it as the Juneteenth holiday. As years went by, the holiday gained popularity across African Americans communities in Louisiana, Arkansas, and Oklahoma. Today, the Juneteenth holiday is acknowledged as a celebration of freedom, African American culture, and achievement. The holiday is observed in 41 states in the U.S.
The true meaning of freedom As we celebrate the Juneteenth holiday, it is important that we contemplate the true meaning of freedom and whether or not we are living to enjoy the fruits of the struggles of our ancestors. While the Emancipation Proclamation of 1863 ended slavery in its literal meaning, the African American community continues to experience oppression from a predominantly white society. Even though we are much freer today, there are still many areas that we do not have the freedom we deserve. Our people continue to experience police brutality under the watch of a political system that does not care; we lag behind in almost everything, including education, income, employment, and homeownership. The American dream is not for us if we do not keep up the fight for equal opportunity, especially in education, employment, and property ownership. We have to rise against institutional racism and work hard towards ‘owning’ rather than being ‘owned.’ Let us advocate for equal education opportunities for our young people and encourage them to work hard and build wealth. It is through consistent hard work and determination that we can have a voice in the American system.
Property ownership should be our first goal Did you know that the five largest landowners in America, all white, own more rural land than all African Americans combined? According to a report by the United States Department of Agriculture, these five individuals own more than 9 million acres, while the African American population of over 40 million people owns just 8 million acres. When it comes to homeownership, a report by NAREB shows
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a 27.3 percent gap between African American and white households. Racial discrimination by creditoffering financial institutions is one of the key reasons we have been left behind in homeownership. According to a report by Virginia Commonwealth University, African Americans and Hispanics are twice as likely as Caucasians to be denied a home mortgage loan. African Americans are also the target of predatory lending, with various reports indicating that we were the hardest hit by the 2008 financial crisis.
market before it became a financial district.
The Power Is Now As we celebrate the Juneteenth holiday, let us remember that we still have a long way to go. The future is ours if we work hard and consistently speak up about our rights. Our financial freedom lies in the decisions we make today regarding saving, spending, and investing. Let us always strive to improve our financial literacy and standing.
Today, the biggest number of underwater mortgages Follow The Power Is Now for first-hand information is held by minorities. We are the least represented on real estate and insights into homeownership. on Wall Street, an industry that has been taking Happy Juneteenth holiday! advantage of our homeownership plight to exploit us. Let us not forget that Wall Street was a slave
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COMMUNITY
How To Spend the First Day of Summer
T
here’s no denying that the first day of summer is an exciting time. Kids have been anxiously counting down for weeks–months, even–to hear that final bell ring and to finally leave school behind. Of course, kids love summer in its entirety; it is a time to hang out with friends, go on vacations with family, and just relax without having to worry about school. But there is something extra special about that first day. The thought of school is completely gone, there are a million fun things to do, places to go, and people to see.
The Social Butterfly
Everyone knows one of these kids, because these kids know everyone! The ultimate people-person, social butterflies thrive off of being around friends and family, and feel right at home in the middle of a big gathering! So matching that personality, it only makes sense to have the first day of summer be full of social interaction! For some, that might mean getting a group of friends together and going to celebrate freedom at the mall for the day. For the non-shopper type, it could mean getting the gang But where to start? Sleep in, or get an early start? together for dinner and the newest, flick of the Go splash around at the local pool, or plop down summer. Or, for those just wanting to get out and see in front of the TV? Call up your best friend to plan people while also beating the summer heat, it could the first summer hangout session, or spend time by mean going down to the local pool to have fun with yourself? Of course, every kid is different. Some friends–and get a jump on their summertime tan! have a tradition of spending day one of summer the same way year after year, while others have no idea The Bookworm how they’re going to spend the day until they wake up that morning. Some children spend the first day Quite possibly the antithesis of the social butterfly, of summer packing their bags and looking forward the bookworm is the quiet, maybe shy child that loves to seeing their summer camp buddies again. With finding a cozy spot to enjoy time to themselves–and this glorious day fast approaching, here are a few a good story! For these kids, a great way to begin ideas for on how to spend the first day of summer the summer is by making a list of all the stories they this year. are going to read over the next few months. That
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might mean going down to the local library (where they will surely be greeted by name by the librarian) and writing down the names of the books that catch their attention. It could also mean finding their new favorite reading spot–maybe the treehouse in the backyard, a cozy corner of their bedroom, or a shady spot in the green grass under the trees.
The Outdoorsy Adventurer These kids are the real “doers” of any circle. They cannot sit still in front of a TV too long, and even the summer heat cannot keep them inside! Summertime means time for adventure! These kids will love spending the first day of summer finding all the new experiences they can have. For animal-lovers, that might mean going to see that cool new exhibit at the zoo, or following that trail through the local park to see what they can find. For some, this means planning everything they are going to see and do on the upcoming family vacation. For some, this could be as simple as exploring their own backyard–as long as it can get their hands dirty and imaginations working, they’re up for it!
whether that means watching the newest episode of the shows they follow, or playing the newest video game. There’s no doubt that these kids can spend their first day of summer making a list of all the new movies coming out that they can’t miss out on, or planning which video games they’re going to play through and in what order. Summertime means screen time for these kids!
Last Thoughts Summertime is something every kid loves, and it’s a time many adults reflect on very nostalgically. A lot of people’s favorite childhood memories took place during the summer. Every kid loves it for their own reason, but one thing’s for sure–no one wants to waste these precious months of freedom!
The Screen Fanatic This kid loves summer because it’s a great time to catch up on their favorite movies, TV shows, and video games! Kids like this love being in front of screens,
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COMMUNITY
Effort Underway to Increase Diversity in Homeownership
W
hen a family owns a home, they gain home equity. Gradually, this equity contributes greatly to the wealth of homeowners. However, when it comes to homeownership in the U.S., the disparity between the white majority and the African American is evident. There are large homeownership segregations that come with race differences.
diversity of homeownership, such as residential segregation, education standards, access to loans, and job quality.
The suburbs have traditionally been primarily white populations, while the majority of urban inner city populations have traditionally been composed of racial minorities. When these groups are separated, there is an obvious the advantaged group. The Ibarra and Rodriguez state that home equity is 61% minority group dwells on disadvantages, because of the net worth of Hispanic homeowners, 38.5% they only have access to a mediocre standard of of the net worth of white homeowners, and 63% of living. These differences in living standards produces the net worth of African-American homeowners. diversity in access to quality education, and in turn According to the U.S. Census Bureau, by 2024, 75% quality jobs. of the expected 14 million new households in the U.S. will be diverse. Which are the ongoing efforts in place?
Indiana - A case in point
This diversity has brought an outcry from several quarters to galvanize the people as well as the A good example of this disparity is in Indiana, where authorities regarding these underlying concerns. only 45% of African-Americans own homes, in Three such groups are the NAACP, the National comparison to 71% of the whites. These statistics Urban League, and the National Association of Real have been brought about by residential segregation, Estate Brokers. which is physical separation of residential locations between two groups. The Fair Housing Act of 1968 enabled more people to be able to purchase real estate, and in the decades Differences in rates of homeownership and housing since then homeownership for black increased to value accrual may lead to lower net worth in the 46% (according to Ron Cooper, the president of the parental generation, which disadvantages the next. NAACP). There are many factors that contribute to this
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Cooper also noted that the ownership rate has now declined to 41 percent, indicating a dangerous downward trend. He also said that the organization was on an advocacy mission to sensitize people on the importance of building communities as well as building wealth.
executive Vice President and head of housing policy, puts the blame on the mark timing wages in the middle class which affects access to credit that result to lack of generational wealth.
Brad explains that this action will not only cause people to invest in their home, but also to take pride Wells Fargo has not been left behind in advocating in their community as well. Why? Because there will for a bridging in these huge disparities. They are be better schools. This will improve the economy for committed, as of this year, to reverse this trend the larger community. in minority homeownership. Brad Blackwell, the
Doing a good thing Cooper says that it is not easy for people of color to access loans. He says the National Association of Real Estate Brokers was formed because African American soldiers were denied equal opportunities in obtaining V.A. loans when they returned from World War II. It is a sad fact that renting puts a family behind because they spend a huge amount of their income on rent.
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home equity and garnering sufficient wealth to obtain a These disturbing disparities of quality education. This will in turn homeownership can be bridged open the doors to better incomeby making it easier for African earning opportunities, resulting in Americans to access mortgage better living standards. loans. It is also important for policymakers to be in support of It may take time for these groups the efforts of lobby groups like to reverse the trend of declining Cooper’s NAACP. This will widen homeownership for minority the scope by which they can reach peoples in the U.S., but the effort they put in will not be put a larger geographical area. to waste. They are changing the Once there is indiscriminate lives of minorities one person at access to mortgage loans, minority a time, one family at a time, and peoples can start accumulating one community at a time.
Conclusion
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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
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www.thepowerisnow.com eric.frazier@thepowerisnow.com Mobile: 714-361-2105 Office: 800-401-8994 ext. 703 Fax: 800-401-8994
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
YOU
Saving For Your
FIRST HOME
E
verybody longs for a place that he can call his own–if not now, then somewhere in the future. You are young and full of vitality and all that keeps playing in your head is saving for your dream house. But the problem is how do you save? Millennials are encouraged to save for their dream houses in the future and the many changes that are witnessed now can help pave the way for the future. For most, having the burden of taking care of their student loans or saving for a future purchase seems like a huge financial challenge. Getting into the property market requires more than just financial strength. It also needs your willingness to take on a huge responsibility. There are a number
The PIN Magazine | June 2017
of tools, services, and grants that are designed to make it easier for “Buying a home is one of the you to save for your future dream largest purchases you are ever house. going to make, so you need to make sure you are prepared.” – Start saving now Rachel Cruze, Financial Expert It is imperative that you get started now for a better dream house in the future. However, before you can begin, you should make sure that your finances are in order to start your savings plan. This will go a long way towards helping you make your initial deposit. The homeownership path is not an easy path, and somewhere along the road, you will be tempted to quit. But with a savings account right now, everything will streamline itself. On the surface, the task may seem daunting, especially if you know the source of your funds is a little tight.
Guard your account
savings
Saving can be a tough call. Therefore, depending on your circumstances and ability, you need to shelter your savings plan using what you can easily achieve. Most of the financial experts will agree that as you are starting to save for your future home, you should go for the optimum standards where you will neither strain funding the account nor give the account an insufficient amount.
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“Without taking the proper steps, a home can quickly turn from a blessing into a curse.” – Rachel Cruze When saving, go for a plan that you will be comfortable with. As a matter of fact, you should keep padding your savings account regularly. According to the National Association of Realtors, 61% of homebuyers are using their saving to make a down payment for their dream house. Therefore, it is never a bad thing to always make sure that your account is well funded. That is what it means to guard your savings account.
Why start saving now?
have your stockpile overnight. That only happens in an ideal world. “Obviously, saving money takes time, so it’s never too early to start.”– Brian Koss The problem with most people is that they have the opportunity to start saving now but they want to wait until there is no more time. These are the people who you will find still stuck in rentals others their age have settled down in their own homes.
“If you are young and thinking about buying a home Why can’t it be after employment? Or some other someday, don’t wait to save–start now.”– Brian time in the future? Well, time is changing so rapidly Koss, Mortgage Network and people have come to the realization that they want a place to call their own. The global population In addition to your savings… is growing at a rapid rate, so having your own space Most people will want to save money and then use the is important. fund as their initial down payment. This, according A stockpile of money takes time, and time is an asset to most financial experts, is a mistake. When saving that you may not have in the future. Do not be fooled to purchase a home in the future, most people will that if you consider saving in the future, you will only concentrate on the down payment, forgetting
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that there is something extra they ought to do.
Saving process
According to Rachel Cruze, a person saving for his or her future home should also consider saving an additional three to six months’ worth of emergency funding. This will not only help you cover for any additional expenses: “in doing so, you are building a solid foundation for your finances,”
Finally, you are ready to get things started and you are excited to save for your dream house. The saving process is simple. First, you have to prepare a budget and stick to the budget. A mistake most Millennials make is spending on nonessential items and impulse buying. This kind of spending will only limit your dream of owning a house.
“Conventional wisdom holds that individuals need to save six to nine months’ worth of living expenses in an emergency fund. This is in addition to saving specifically for your home,” – Kevin Gallegos, Freedom Financial Network Extended savings for young savers will help them to cover the savings fund in case something goes wrong with the purchase they make. More often than not, most people, especially young when getting into a new home they have purchased, will enter poor because they only considered saving for the down payment.
The PIN Magazine | June 2017
“The biggest obstacle to saving money is changing your habits.” “Sometimes sticking to a major goal is easier when you include family, friends and workmates in the challenge, because they can hold you accountable. Another tool is to keep pictures of your dream home in your wallet, on the fridge and next to your computer, so that you are reminded of your goal any time you’re about to spend money elsewhere.”– Brian Koss One way to be committed to your budget plan is to ensure that once all the nondiscretionary expenses are paid, you should deposit what is left of it in the
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savings account.
on your future purchasing power. Millennials who want to save According to Susan Chong, what for their homeownership should most people should do and what know what their credit score is. she recommends is starting the savings process by creating a Most lender [mortgage] credit timeline for the most ideal time card companies and employers to buy the house. She further will be concerned with your credit argues that people should take profile. the money saved specifically for the home and subtract 20%–the “One in five Americans has errors down payment, what is left of the on their credit report–errors that money should be divided by the could cost you a higher interest number of months you have until rate on your credit cards, a you want to buy, hit the target home mortgage or even your car each month. insurance. If you want to buy a home, get fiscally fit. Time will Your credit score is integral be your friend if you start early.” to your saving – Edward Carroll, senior loan officer It is important that Millennials have an acute awareness of their Remember that you determine credit score status. A credit score what comes your way. Thus, is a number that has great impact take control of your credit by www.thepowerisnow.com
keeping the usage at around 35% of the available credit. Also, more importantly, make sure that your bills are paid on time.
The bottom line Be knowledgeable. Buying a home is one of the most important things that will ever happen in your life, and if you are not conscious about it or have little information about it, it may cost you a lot of time and money. Therefore, when planning to save for your first home, accrue knowledge. As a smart Millennial, record and analyze your monthly expenditure to determine the where you can save money. That way, you will have no problem saving for your first home.
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YOU
Why CREDIT Is Important EVEN IF YOU PAY CASH
I
t would not be wrong to say that our world is built on credit. Whether you want a mortgage loan for your house or a student loan to pay for your college expenses, or even a small house item, you can do that through the credit cards.
Most of companies have now realized the importance of credit integration with people’s lives, and have started to extend credit services to most areas. This means that nowadays, it is possible to do almost anything with no cash at all.
What is credit? Credit is your financial power in today’s world. In short, good credit is what determines whether you will qualify for a loan, a mortgage, or a student loan. On the other hand, bad credit may inhibit you from achieving many things, including getting a credit card with a low
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interest rate, thus making it more difficult for you to get any money for any purpose. Most financial experts advise regarding the importance of making sure that your credit reflects positively on you, and according to Liz Pulliam Weston, even if you are not in the market for a loan, good credit can have a major impact.
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“Your credit information can be a factor in whether or not you can rent a nice apartment, how much you pay for insurance or whether or not you can get a job.” – Liz Pulliam Westom, Author of Your Credit Score One major impact of credit is that in most cases, employers, mortgage lenders, and credit card companies will use your credit information to determine how reliable and trustworthy you are. Therefore, credit score doesn’t only apply to loans; it is a part of your financial life.
Credit card versus cash payments
for shoppers, allowing them to make more frequent purchases. Shoppers can go out and buy items as soon as they need they need them. Cash may run out, but never with the credit facility.
Why credit is important Good credit is a superpower in terms of your finances. Many aspects of our lives are affected by our credit card rating, even if we are not using cash as payment. Conversely, a cash payment does not determine how well we qualify for loans; credit determines that. Therefore, having a good credit mix is very important. A credit rating may determine whether a lender approves a new loan or not. If your credit mix is in question, or is in doubt, then qualifying for a loan, which may be a home loan, a student loan, or even a credit card itself, may be difficult. Therefore, you need to be concerned with your credit, even if you use cash as your only payment method.
When it comes to interest rates, your credit rating may affect them adversely or positively. A bad credit rating would give high interest rates on available It is safer to use credit cards than cash. Security is loans, such as student loans. Other fees may also be now a factor that spenders have to take so seriously. affected if you have a negative credit rating. If you look at the security when using a credit card compared to using a cash payment, the cards are In the job industry, your credit rating may also affect very secure. With a credit card, there is increased spending. Statistics indicate that the average cash purchase is about $17, which is a big difference compared to the average credit card purchase. Credit cards stretch the average spending of a person to $66 per purchase, which is 2 1/2 more money than for cash users. This has enabled most people access to so many services, such as making food purchases and other simple tasks. With a credit card, there is a high degree of flexibility
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your employer review. Having a bad credit rating may do you considerable damage. One thing you should understand about credit is that it determines your reliability in the employer’s eyes; and if it reflects negatively, then it may be hard for you to get a job. In the home industry, your credit rating is crucial. Landlords will check it in determining whether or not to allow you to rent a house. Thus, just because most of your transactions are paid in cash does not mean that your credit eligibility is stellar. You have to constantly make sure it is in balance.
Good and bad credit Having good credit means that your bills are fully accounted for at the right time. That is, you must make regular payments on each of your accounts until the balance is fully paid. To improve bad credit to good credit, you have to start paying your bills regularly and on time. Alternatively, you can make sure that the balances reflected on your credit cards are low, and monitor
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your credit reports to make sure that no mistakes are made.
The bottom line Cash payments are important for minimal daily transactions that may be inevitable, but what if you do not have the necessary cash? That’s where credit comes into play. Credit applies when you do not have cash to make the payments; then, it is your saving grace. But even so, this does not mean you should overuse on your credit, as that may do you significant financial damage. Therefore, learn how to achieve and maintain excellent credit.
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TECHNOLOGY
What Brokerage Companies Can Learn from Tech Companies “Software is eating the world.� Soon enough, you will start hearing people joking about this; but in reality, what most of them do not know is that it is completely true. Most of the things that were difficult to do ten years ago or perceived impossible, nowadays through the help of technology can be done with so much ease. This further sheds a light on the fact that companies both small and the large have to adopt some level of technology, or at least have a taste for technology. Technology has now become a tool for evaluating how competitive a company can be. Most developing companies are using high tech as leverage to compete against already established companies.
What are brokerage companies? That said, we can now take a look at what brokerage companies are and what they usually do. A brokerage is a financial institution that normally facilitates the buying The PIN Magazine | June 2017
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and selling of financial securities between the buyer and the seller. A broker–whether a single person or the firm itself–is mandated the responsibility of the legal framework, obtaining the necessary signatures, and collecting money from the purchasers on behalf of the sellers. Therefore, the brokerage firm gets paid since the buyers and the sellers are employing it to cut the deal and complete it. However, depending on the terms of agreement, the firm may obtain payments from one party or both. In many investment options, you are required to negotiate your trades through a broker. In simple terms, a broker is the person between you and the investment world. Therefore, there are two key tasks that a brokerage firm can take pride in: • O ffering advice to players in the investment bubble. • Offering limited banking services. Access to information is advanced and not like in These are the two core tasks that brokerage firms the old world. Brokerage firms have a better chance can do for players in the industry. Brokers can to know more about the prospects and research offer features like interest-bearing accounts and on where to direct much of their energy. If you check writing as banks do. compare the old world to what is there today, you will notice a big difference in that information in What technology has changed in the the past was a little bit shaky, but nowadays with brokerage industry? technology, brokerage firms are confident about their client sources. Everything in the brokerage industry has changed in the past decade. The way of doing things in Most industries have been able to utilize technology the brokerage sector hasn’t changed that much, to forecast the future economic situation. but every other aspect in the industry has been Brokerage firms have not been left out from this revolutionized. This has been made possible by list; with technology, brokers can tell when to technology. expect a boom and when to expect a bust. Thus, there is readiness in every situation, something Nowadays, there are electronic trading systems that has been made possible by technology. This is that enable easy, fast trading. Electronic trading completely unlike the old days, when the industry allowed the trading volumes and liquidity to faced blow after another blow due to uncertainty increase dramatically. When you consider the cost and lack of awareness. of intermediation, technology has enabled it to be pulled down and further broadened access to the market.
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Problems still in the industry Though tech companies are continually adding to and improving their services, there are some problems still facing the industry. But more importantly, most of the problems facing brokerage firms have been resolved. Most brokerage firms use different software, which is confusing. You may want to compare results only to find a great deflection comparing two results from two brokerage firms. This is a software problem by the tech companies. If only the software could be built to harmonize the result when used in different situations, then the problem of having different results could be eliminated. Most brokerage firms are spending so much on technology with the hope that the results that they get will be better, forgetting that a brokerage requires a personal touch and presence. Human most of them is missing, and that integration into the brokerage presents a huge problem in the process is becoming more and brokerage firm. more scarce. Even though we are living in a digital age, it is important to remember that quite a high percentage of the potential prospects never knew how to navigate the spectrum of technology. Therefore, little information on how to operate for
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The bottom line
brokerage companies to make these developments. Therefore, even as we look into the future, there is so much technology can do for brokerages.
There is so much to learn. Brokers have to constantly seek fresh knowledge on how to navigate the technological world, know what works and what does not. There is so much to achieve, and there is enough room for
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TECHNOLOGY
Can Social Media Help Boost Real Estate Sales?
T
he real estate business is a business that requires an in-depth personal connection. But when the issue of social media comes into play, which may scare many realtors. Nevertheless, that does not mean that there is no need to cultivate the social media presence of many realtors. As a matter of fact, social media is a powerful tool that will help you increase the odds of connecting with others more than you ever could in person.
concentrated in one area. Social media can also act as an analysis tool for you to view your progress in content reachability to the consumer. If you have your brand, you can use social media platforms to advertise it. Depending on the social response rate, you can be able to tell how the product is likely to perform once on the market.
Proper implementation and usage of social media Quite to the contrary of what most realtors think platforms could lead to enormous success in terms about social media, social media can help you forge of product reach. Also, social media has a unique connections by helping to establish a strong online characteristic in that it presents a unique opportunity presence, thus making the bond between you and for you to interact with potential prospects 24/7. your clients even stronger. Therefore, taking advantage of the opportunity afforded by social media can help you boost your Importance of social media to realtors sales. Given that some social platforms have the capability Real estate and social media industry to bring the whole world together, as a realtor this interactions give you a great way to effectively reach your target market. One of the things that makes social media In the past few years, social media has become platforms important is the fact that the market is one of the key tools for realtors, businessmen, and
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entrepreneurs to compete and succeed in the marketplace. The real estate industry has taken a deep interest in learning and adapting to social media resources at a relatively high level compared to most other industries. The statistics below indicate how well realtors were satisfied using the social media resources for their services. On the other hand, if you look at the industry’s potential to focus on the key networks that amount to the accomplishment of the set objectives, there is a tremendous improvement. Most of the agents have gone a step further to improve their marketing exposure through using a few specific social media platforms. Overall, social media has shown a great capacity to help realtors develop and gain a strong market hold. Also, social media platforms have enable the real estate industry to gain a competitive edge against other industries.
Add personality to your content
will want to engage with it.
Add useful and relevant imagery Social media platforms like to the content Pinterest and Facebook allow the user to post listings on their According to the National page. It is important that you Association of Realtors, 90% take advantage of this window of of homebuyers are likely to find opportunity. Many realtors have their property online. As such, it used this feature to showcase is crucial to use relevant images to market your properties on social some of their properties. media platforms. However well you are doing it, content without personality has a Images have shown a great great chance to fail. Therefore, as potential to attract consumers, you add your content, it is better since before making the purchase; to impart a sense of personal the prospects need to see what touch. It is better to have a few they are purchasing with proper followers who are engaged with imagery of not only the home, but your content than a thousand also the neighborhood. who do not really care about your When using a social media content. platform, images are not only Therefore, whenever you are going to help your content get posting to the social media noticed. Research conducted by platform, make sure that your MIT showed that people are likely potential clients can identify with to engage with content that has your writing, appreciate it, and imagery with it.
How to use social media to boost sales Many realtors have realized that using social media platforms provides access to a better market, making the sales process easy. Therefore, it is true that social media can help to boost sales at any given time if used correctly. Below are a few ways you can use different social media platforms to your advantage.
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Much to your advantage, you can use the images to them why the area is great and why they should post about your listings online or as a testimonial of consider buying. happy clients. This will again help you boost your sales. Use social media to tell the clients about some nearby attractions as well as to discuss the great Add information about the location and things known about the community. Any event that neighborhood the neighborhood celebrates is likely to give you a competitive edge. One thing that social media platforms got right is the fact that you can post a large piece of great Bottom line content in bits. Using this strategy, you can reach out to potential prospects and tell them more about the Social media has proven to be a valuable tool for the neighborhood as well as the location of the home. industry and a key tool for realtors and sales agents. Agents can boost their sales and increase their It is important that you get to show off your listing’s visibility by implementing some technical resources neighborhood. This strategy will help you market in marketing. Since so many prospective clients your area to prospective residents, as well as show will be located in one area, it is best that the agents your knowledge and passion of the area you are research the needs of each market and specifically intending to make the sales in. target those needs. Listings will tell the clients more about the specific home and not about the location. One way you are going to increase your buyer’s interest is by telling
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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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