The PIN Magazine November 2016

N o v em ber 2 0 1 6 Vo l . 0 3 | I s s u e 1 1

IN THIS ISSUE: • UNEMPLOYMENT CRISIS AND JOB CREATION IN CALIFORNIA • GO FROM RENTER TO HOME OWNER IN RIALTO CAREB ANNUAL STATE CONFERENCE “STATE OF HOUSING IN BLACK CALIFORNIA” NOVEMBER 16TH - 19TH, 2016

We proudly welcome ZipRealty™ and its innovative technology platform to our family of real estate brands!

facebook.com/realogy

Don’t Miss Out On

ANY OF OUR the PIN magazine THE POWER IS NOW INC. Vol. 03 | Issue 11

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

REAL ESTATE

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 Andrej Jovanovic Graphic Designer (800) 401-8994 ext. 713 andrej.jovanovic@thepowerisnow.com Shubhaum Gupta Director of Technology (800) 401-8994 ext. 727 technology.support@thepowerisnow.com Scocrates Ayala Online Radio & Media Manager (800) 401-8994 ext. 709 socrates.ayala@thepowerisnow.com

november 2016

The Power Is Now MAGAZINE | 4

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: Shubhaum Gupta

SALES National Sales Manager: Christina Kimble National Relationship Manager: Success Money HEADQUATERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92506 Ph: (800) 401-8994 Fax: (800) 401-8994 Email: info@thepowerisnow.com www.thepowerisnow.com www.thepowerisnow.com/magazine

DESIGN Art Director & Design Manager: Goldy Ponce, PUBLICATION AND SERVICES Andrej Jovanovic The PIN Magazine The Power Is Now Radio ADMINISTRATIVE The Power Is Now Publications Administrative Assistant: Kendra Gedeon The Power Is Now Radio Guide The Power Is Now VIP Agent Program The Power Is Now Power Consulting/Coaching The Power Is Now Association Management The Power Is Now Event Management STATEMENT OF COPYRIGHT: The PIN Magazine™ is owned and published electronically by The Power Is Now, Inc. Copyright 2013-2016 The Power Is Now Inc. All rights reserved.

“The PIN Magazine” and distinctive logo are trademarks owned by The Power Is Now, Inc. “ThePINMagazine.com”, is a trademark of The Power Is Now, Inc. “Magazine.thepowerisnow.com”, is a trademark of The Power Is Now, Inc. “Thepowerisnow.com”, is a trademark of The Power Is Now, Inc. “The Power Is Now Event Management”, is a trademark of The Power Is Now, Inc. “The Power Is Now Radio”, is a trademark of The Power Is Now, Inc. “The Power Is Now Publications”, is a trademark of The Power Is Now, Inc. “The Power Is Now Radio Guide”, is a trademark of The Power Is Now, Inc. “The Power Is Now VIP Agent Program”, is a trademark of The Power Is Now, Inc. “The Power IS Now Power Consulting/Coaching”, is a trademark of The Power Is Now, Inc. “The Power Is Now Association Management”, is a trademark of The Power Is Now, Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now, Inc. Requests for permission should be directed to: info@thepowerisnow.com The Power Is Now MAGAZINE | 5

www.thepowerisnow.com

In This

Issue...

REAL ESTATE 14. Buyers Pay Less Then What You Think

18.

at Closing for Real Estate in Fontana, CA Go From Renter to Home Owner With Real Estate in Rialto

FINANCIAL 20. Employment Crisis and Jobs Creation in

24.

30.

30.

California Understanding Both Commercial and Real Estate Investment in California Factors you Should Consider When Investing in Real Estate Why Real Estate Investment Good for Old Investors

MORTGAGE 40. FHA Mortgage Options After Natural Disasters

TECHNOLOGY 44.

50.

The New Face of Real Estate: Technological Disruptors and Their Effect in Real Estate Industry Major Consruction Industry Trends 2016-2017

COMMUNITY 54. Tips to Being a Good Neighbor november 2016

The Power Is Now MAGAZINE | 6

ON THE COVER

From the Editor...

Dear readers, It’s the beginning of November and we are ready to face the “dramatic” election of one of the most powerful people in the world. I cannot avoid talking about the Presidential Elections for the last time as the big day is just around the corner and the whole world will have the eyes on the United States expecting to know the winner of this breathe taking race. We will soon know it and all I expect, and I am sure every American does too, is to have the promised words translated into actions. May God bless America.

Right after the elections are over and while America is still celebrating, or not, the relase of our new president, on the 11th of this month we will be celebrating a memorable event, the Veteran’s Day, a very special day to honor anyone who has served the in the United States military. Do your best to attend to a Veteran Event in your area. Roy Rogers said, “We can’t all be heroes; someone has to sit on the curb and clap as they go by.” So, celebrate this day not only with your family or friends, but also honoring veterans in any special and exclusive event for the date. Do you know anyone who has served?

Ask them about their service, how, when did they start. Be supportive and thankful for they are still alive and of course for setting us free.

As it is usual for The PIN Magazine, we have brought in this November issue themes of your interest, like the unemployment crisis and job creation in California, a situation that will hopefully be improving in the

november 2016

The Power Is Now MAGAZINE | 8

upcoming months; we will analyze the difference between commercial and real estate investment, and will know why the real estate investment is good for old investors. We ended October with the sad news about Hurricane Matthew which damaged California, causing several homeowners suffer the losses caused by the flooding; we want to let these people know there are FHA mortgage options for those who are victims of natural disasters. Are you a good neighbor? learn some tips that might improve your relationship with those living nextdoor, and lear abot Real Estate on Fontana and Rialto. Also, we are talking about the major construction industry trends in California Association of Real Estate Broker CAREB Annu al State Conf s erence 2016-2017 and some technological disruptors and their effect in real estate industry.

“State of Ho

us

ing in Black (2 Million Ne California” w Black Ho meowners in 5 Years) November 16th thru 19 th, 2016 San Diego Mis 8757 Rio San Die sion Valley Marriott go Drive, San Die go, CA 92108

Last but not least I want to mention the upcoming California Association of Real Estate Brokers CAREB - Annual State Conference “State of Housing in Black California” that will take place on November 16th- 19th , 2016. Find more information about it on pages 57-63, I really hope you can participate.

Hosted by San Die

go Realtist for Dem

ocracy in Housing

Opening Ses sion “State of Housing in Black America

” General Ses sions rsify Your Busines s, Minority Busines s Owner Certifica & Politically Corr ect?” Community tion & Access to Reinvestment Act Capital & Fair Lending/ Fair Housing/Fa n “Show Me ir Employment Prac The Money” Acce tices ss to Mortgage Capital Closing Ses sion “Focus and Fini sh” Survival, Succ ess, Significance Educational n FTHB Cert Break Out ification Part 1 Sessions “Master the Mar n FTHB Cert ket” ification Part 2 n Employer-As “Be the Go to Age sistant Housing n “Look Like nt” a Pro” with Com Certification n Paperless prehensive Data, Professional “Tra Powerful Analytic nsactio s, and Client-friend n Are You BRE Compliant? - How n too Close” ly Reports in 5 Minutes to Audit Proof You r Brok erag n The Probate e Process (Certific n Chapter Bes ation Available t Practices Panel with test and Add itional Fee) n Mastering the Residential Purcha n Pre-Confere nce Hands On Tech se Contract Online Registrat nology ion: Mem n How to Dive

n What’s Fair

ber Registrat Non Member Regi ion $149 stration $349 Register on or

I will always be expecting that you find each of our issues helpful and of course I am ready to assist you when you need it. Please reach me at eric. frazier@thepowerisnow.com and I’ll get back to you.

Thank you for your dedicated readership and always keep in mind, The Power Is Now!

before October Take advanta 31, 2016 ge of Register: CAREBCo Early Bird Registration Now ! nference 2016.Eventbrite.c

om

Sponsorship & Contact CAREB PresVendor Opportunities Available : ident Derrick Luck ett 619-825-956 0 or Conference Chai rperson Conference Room Denise Matthis 619-335-556 4 Rate $159 Expires https://resweb.p asskey.com/go/R 10-12-16 EBNov2016

Eric Lawrence Frazier MBA Editor-In-Chief

The Power Is Now MAGAZINE | 9

www.thepowerisnow.com

From our followers...

Thank you for your wonderful feedback on the website and blog. Reach me anytime at eric.frazier@thepowerisnow.com

Great quote and very true! To make anything happen, you have to prepare, plan and execute. Hoping for the best and counting on luck doesn’t always work.

- Shuchi Agrawal, via ActiveRain

There’s no substitute for Hand Work and a Clearly Defined Plan ...If Hope and Luck decide to jump in, I’ll take them along for the ride!.

- Maria Sapio, via ActiveRain

Many people hope luck will come their way. I find the harder I work the luckier I get.

- William Feela, via ActiveRain

This post reminds me of one of my favorites quotes Never, Never, ever give up. Thanks for sharing the positive I hope you have a great afternoon.

- Pat Champion, via ActiveRain

november 2016

The Power Is Now MAGAZINE | 10

Willie Wilcox Cal BRE # 01396837 NMLS # 887943

SPECIALIZING IN: • Real Estate Sales • Lending & Financing

Helping Families Make the Right Move 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

REAL ESTATE

Buyers Pay Less Than You Think at Closing

for Real Estate in Fontana, CA

M

aking the switch from renter to homeowner can be intimidating.

You’ve worked hard. You’ve made sacrifices, saved a down payment and cleaned up your credit. Now you’re ready to take the leap, but

november 2016

you want to reduce your real estate closing costs and not be hit with any unexpected surprises.

You want to sit at the negotiating table armed with the knowledge to have the best interests of your wallet and your family at heart. You trust

The Power Is Now MAGAZINE | 14

and considerations to make you feel confident enough to take the next step.

• Buyers have a larger list of items to pay for but pay less overall.

• The seller will pay more money overall, because they have to pay real estate commission • Most buyer costs come from the loan itself, so get a “loan estimate form” upfront.

• This form will itemize and outline all of the loan fees.

• Use the loan estimate form to shop for different lenders to get the best deal.

• You can prorate property tax and homeowner association fees (if applicable).

• You can negotiate and ask the seller to pay some of the closing costs if they’re firm with the purchase price.

• If sellers are motivated or eager, you may even be able to get cash back at closing.

• You can estimate the closing costs of each side based on your loan amount to help you budget.

• As the time gets nearer to the closing date, you should pretty much be able to know your exact costs, give or take a few dollars.

your real estate professional in Fontana, CA but you need education so they don’t take advantage of you when it comes time to make your move.

Like the best chess players, you need a winning strategy. There’s a lot at stake, but we’re here to help you win. Here are some demystified truths

Overall, it is rare for a buyer to show up on the day the deal is due to be finalized and discover there are new costs in the contract. Rest assured that you as the buyer, the seller and your respective representatives will have outlined and arranged for everything in advance. That’s why it is key to have real estate professionals in Fontana, CA you can trust on your side. Always review your contracts thoroughly, and we’re here to help you confidently sign on the dotted line.

The Power Is Now MAGAZINE | 15

www.thepowerisnow.com

Socorro Garcia REALTOR

Cal BRE # 01377130

SPECIALIZING IN: • Residential Real Estate • Commercial Properties • REO Management & BPO • Short Sale Services • Property management

The Realtor you can trust!

Relationship Manager

Broker Manager | Fontana California Office: 800-401-8994 ext. 736 Direct: 909-206-7458 E-mail: socorro.garcia@thepowerisnow.com Website: thepowerisnowrealestateservices.com/

REAL ESTATE

GO FROM RENTER TO HOME OWNER

WITH REAL ESTATE IN RIALTO

A

re you tired of renting and feeling like you’re getting nowhere? Or maybe you’re dreaming of a place where your friends and family can spend the holidays. Your place could be the one where everyone gathers around the table for dinner. Perhaps you need more space and want a backyard so your kids can play outside. You work hard for every dollar you earn, so consider yourself a worthwhile investment and be a first-time home-buyer with real estate in Rialto.

savings! What could you do with an extra $500 per month? Keep in mind; these payments are towards property ownership. Home prices may seem high. However, if you made the same $1,500 per month rent payment for an apartment, after ten years, you would have paid $180,000.

Will you be close to having a paid off home ten years from now?

Plus, here’s the bonus. Homes appreciated nearly 25% in Rialto last year. When home values rise, so does the equity in your home. This increased property value can put money in your pocket should you decide to sell. Or when life happens, and expenses arise, you may need to borrow against your new home’s value. By owning a home, you have an asset of value. As a renter, when you decide to move out of your apartment, you’re not going to make any money. In fact, it is going to cost you, and you’ll probably hope that the landlord decides to give you the full amount of your deposit back.

Owning real estate in Rialto is one of the best investments you could ever make and making the transition is easier than you think. Do you know that often with today’s low interest rates, that your current rent payment is probably higher than a mortgage? With the average rent payment of $1,500 per month for a 3-bedroom apartment, in one year you would have paid over $18,000 in rent towards real estate in Rialto that you will never own. In fact, you are paying the landlord’s mortgage! You could use the same money you paid in rent as a nice down-payment towards The facts are clear, you home ownership of real estate in Rialto. just cannot afford to remain a renter and At today’s interest rates, and with the average not invest in real home price of $225,000, your mortgage payment estate in Rialto. for this real estate would be approximately $1,000 per month. That’s a $500 per month november 2016

The Power Is Now MAGAZINE | 18

Israel Garcia REALTOR

Cal BRE # 01929446

SPECIALIZING IN: • Residential Real Estate • Commercial Properties • REO Management & BPO • Short Sale Services • Property Management

Want to Buy, Sell or Rent a Property?

Relationship Manager

Realtor | Rialto California Office: 800-401-8994 ext. 735 Direct: 90-938-4202 E-mail: israel.garcia@thepowerisnow.com Website: thepowerisnowrealestateservices.com/

FINANCES

november 2016

The Power Is Now MAGAZINE | 20

The Power Is Now MAGAZINE | 21

www.thepowerisnow.com

FINANCES

november 2016

The Power Is Now MAGAZINE | 24

The Power Is Now MAGAZINE | 25

www.thepowerisnow.com

november 2016

The Power Is Now MAGAZINE | 26

The Power Is Now MAGAZINE | 27

www.thepowerisnow.com

BUSINESS

Frazier Group Realty, Inc. As you venture into the World of Real Estate, we can help you put the pieces together and Naviagate you into Home Ownership

Ruby L. Frazier President License #01751773

Briana M. Frazier Broker License # 01751473

Jessica E. Frazier License # 01817312

Erica L. Frazier License# 01791095

Frazier Group Realty is the right place. Our Navigators are available to give you personalized service and answer any questions you may have. You can call, email or visit us and we will be there ready to help you every step of the way. Wether you are a first time home buyer or an experienced real estate investor, here at Frazier Group Realty you gain useful information about how to choose the “right” property, and everything involved in making an informed decision in today’s real estate market.

Making Clients for Life

3739 6th Street, Riverside, CA 92501 Office: (951) 686-5261 Fax: (951) 686-5264 www.fraziergrouprealty.com

Home Ownership Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own.

Real Estate you own is not like cars that decay over time and you have to replace them.

Real Estate you own is not like clothes that go out of style and you have to buy new ones.

Real Estate you own is not like expensive vacations or experiences that only last a moment in time.

Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable.

Real Estate you own is not like staying at your parents house where you know can’t stay forever.

Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family.

Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned.

Home ownership is the place you build memories that can never be taken from you.

Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand.

Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.

It’s the height markers on your first child’s bedroom wall.

It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen.

It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire.

It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it.

It’s more than the payments you make to own it.

It’s more than the appreciation that comes with keeping it over time.

It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.

By Eric Lawrence Frazier MBA CA BRE 01143484 | NMLS 461807

FINANCES

FACTORS You SHOULD CONSIDER WHEN INVESTING IN REAL ESTATE The world of real estate investments is a very complex place to be in. To the average individual, it just involves purchasing buying a piece of land or building and making use of it to earn some form of profit. Unfortunately for the average individual, this is far from the truth.

What is certain about the real estate market is that it can be a very profitable source of revenue for an investor over a certain period.

purchasing and acquiring of landed properties (apartments, houses) so as to make financial investments with the sole purpose of receiving monetary gain.

Advantages of being a real estate investor

1. Investing in real estate mostly leads to a lucrative end, more importantly; it is a form of investment which is physical.

A lot goes into investing in the real estate This is an investment that an investor can market; factors have to be considered to achieve always see, even touch. This always gives a successful result. However, before going any an investor a form of psychological boost. further into these factors, it is best to understand as much as possible about investing in real estate. 2. Real estate investments usually go up; it is The art of real estate investing involves the an investment that frequently rises. This rise

november 2016

The Power Is Now MAGAZINE | 30

does not come immediately as it can come after a decade of the initial investment.

3. Unlike other investments where the investor has no control over what occurs, this investment gives the investor full control of what transpires at all times.

there will be a lack of cash flow. This can create an environment where an investor can have rent issues from tenants. The possibility of long-term contracts which can affect an owner/landlord, because there will not be any opportunities for rent increase until the contract expires, leaving the owner at a loss.

Factors to consider when investing in real estate • Interest Rates: The cost of interest rates will • Statistics: This is an important aspect that

should be considered when investing in real estate. It is important for an investor to check necessary aspects which are usually attached to any property. These statistics can correlate to religion, age, gender, and race. Knowing these statistics can be a critical factor for any investor if profit is the final goal.

These statistics can affect the value of any property over a period, and can even create depreciation. Before any real estate investor decides to make any investment, there needs to be an understanding of these statistics and to question if the behavioral trends of potential clients will suit these statistics.

affect the influx and outflux of customers in the real estate market. In any economy, if the interest rates are on the low then the mortgage of buildings will also below. On the other hand, if the interest rates are on a high, then the mortgage payments will also be high. These low-interest rates will lead to an increase of customers and potential investor to the real estate market.

Before making any investments, knowing and understanding these factors is a valuable key to success in the real estate market. Investing in the real estate market can be a very complex form of business, but understanding the market and how it changes can be a big help. Also making a proper plan and creating targets, helps to keep • Economic Conditions: The economic situation the investor focused at all times. Adhering to of any country plays an important role when these factors will undoubtedly lead to better it comes to the real estate market. This can investing opportunities in real estate. be related to the county’s GDP, inflation and even the possibility of a recession.

The complex affairs of an economy can interfere with the real estate market. For example, an economy going through recession will be a problem for an investor, because

The Power Is Now MAGAZINE | 31

www.thepowerisnow.com

JUMBO LOANS WITH 10% DOWN

NEW!

FREE mortgage app for your cell phone!

Click Here

• • • •

GREAT RATES! CLOSE FAST!

Loan Amounts up to $3 Million! * No monthly PMI Fixed-rate and ARM options are available Eligible for primary, secondary and investment properties

Name: Eric Lawrence Frazier MBA CA BRE # 01143484 | NMLS # 461807 Website: www.thepowerisnow.com Call me for details: Website: www.thepowerisnow.com Email: eric.frazier@thepowerisnow.com E-mail: eric.frazier@thepowerisnow.com Video Chat: https://zoom.us/j/5443077305 ERIC LAWRENCE FRAZIER MBA Mobile: 714-361-2105 CA BRE: 01143484 | NMLS 461807 Direct: 714-475-8629 Office: 800-401-8994 ext. 703 The Power Is Now Inc.O: 800-261-1634 x 703 Fax: 800-401-8994 CA BRE: 1980407 | NMLS 1435243 F: 800-261-1634

* Restrictions may apply.

The Power Is Now Inc., is a Mortgage Brokerage Licensed by the State of California CALBRE License #1980407 and is not affiliatedwith any state or federal agency.

Go toiswww2.dre.ca.gov verification.

The Power NowofInc., is also01143484 licensed by Licensewith #1435243. www.

Frazier, Eric, Lawrence a CA Mortgage for Brokerage Licensed by the Is State CA BRE andthe is NMLS not affiliated any stateGoortofederal nmlsconsumeraccess.org for verification.

The Power Is Now Inc., is- an equal housing lender. Our corporate officeLawrence is locatedisat: Street agency. Frazier, Eric Lawrence is also licensed

by NMLS# 1273606 www.nmlsconsumeraccess.org.

Frazier, Eric, an 379 equal6th housing Riverside, 92501. office Telephone and Fax: 800-401-8994.

Eric Lawrence Frazier, MBA is aand California Licensed Loan lender. OurCA corporate is located at: 3739 6th Street Riverside, CA 92501.

Telephone Fax: 800-261-1634 EricOriginator Lawrence NMLS# Frazier, 461807.

MBA is This is not aLoan commitment toNMLS# lend or extend may apply.toInformation and/or data is subject may to change notice.

All loans a Licensed Originator 461807.credit.

ThisRestrictions is not a commitment lend or extend credit.

Restrictions apply.without Information and/or data are subjecttotochange credit without approval.

Not all products available in all Not states. is subject notice.

Allloans loansorare subject are to credit approval. all loans or products are available in all states.

FINANCES

Why Real Estate Investment Is

Good For Older Investors

There’s an old adage that says a penny saved is a penny earned. However, it is a little more complicated that when it comes to saving for retirement.

can protect what they have earned while allowing it to keep growing. If you play your cards right, an indeed, a well-located unit can earn you $200 to $1,000 per month, according to Bankrate.com.

While you’re collecting rent, you’re paying off a property adds value to your investments.

In a recent study released by the RealtyTrac, an online database of foreclosed properties in the U.S., 30 percent of real estate investing is done by those 65 or older.

When it comes to that daunting goal, it’s a bit more like a penny invested is a penny earned.

And while those nearing retirement age often want their funds to be low risk, it’s important to keep investing. As inflation raises, if a serious illness or another emergency happens, low-risk, consistently yielding investments can keep you Low-risk diversification afloat.

It’s all about diversification. And while that’s That’s why more and older investors, those the magic word in investing, when it comes to nearing or in retirement age, are turning to real retirement, diversification can boost a stretched estate to supplement their income. Ari Rastegar income. writes Interest rates are still relatively low across the “One of the most important goals for generating nation, while rents continue to rise, making it retirement income is lowering risk while the perfect time to consider adding a renter’s protecting your invested capital,” property to the portfolio. And they’ve proved a With research and thoughtfulness, older investors reliable investment over the years: The historic

november 2016

The Power Is Now MAGAZINE | 34

ROI (return on investment) is about 7 percent, How to get started? according to Investopedia.com.

Here are a few things to keep in mind, according A single-family home or one bedroom condo is to Money.usnews.com. a safe bet if you’re nervous about taking on a rental property, according to “6 tips for investing 1. The most important thing is to do you in real estate.” research. Neighborhood, taxes, fees, other rental costs in the area, will all affect how Keep it simple, sugar much you can charge and whether you will make any money.

Moreover, it does not have to be complicated. 2. Think about whom you want your renter Some services will take care of the “hands-on” to be: A young family? A college student? An parts of the job — finding reliable and clean older couple? These questions will inform tenants, upkeep and maintenance, or three a.m. where you buy property, what updates you phone calls when a pipe breaks or the heat goes do and even things like liability and renters out. insurance.

3. Only pay what you can earn back in rent.

In general, this type of services charge between A good rule of thumb is to buy a property for 7 and 10 percent of your monthly rent, but this 12 times the amount of its annual rent, but keeps the passive investment income, allowing with today’s market, you can often get that you to focus on your other investments, your down to nine or 10 percent the annual rent. day job or retirement.

4. Buy local. When you know the neighborhood, it’s easier to research a property, do Moreover, while the unknown of the stock maintenance and keep an eye on it. market can be scary, there are concrete things a property owner can do to boost its value, stuff In a nutshell for those nearing or at retirement like updates, repairs, and furnishings, states age, looking to expand their portfolio in a Forbes.com, which called investing in real estate trustworthy and low-risk way, investing in real the “Holy Grail for retirees.” estate might be the answer. With a 7 percent historic return rate in a buyer’s market, maybe it’s time to do the research on your town.

There might just be a two family duplex with your name on it.

The Power Is Now MAGAZINE | 37

www.thepowerisnow.com

november 2016

The Power Is Now MAGAZINE | 38

FINANCES

fha MORTGAGE OPTIONS aFTER nAURAL dISASTERS A nyone who has been through a natural disaster knows all too well the damage that is caused. Trying to pick up the pieces after a sudden and devastating event can be an extremely stressful process. The last thing anyone who has lost a home in a natural disaster wants to think about is how they are going to

november 2016

make mortgage payments. The good news is that there are trained professionals ready and willing to contribute to making life a little easier for those who have lost so much. With the recent Hurricane Matthew that affected North Carolina, South Carolina, Georgia, and Florida, the President has issued a disaster declaration. The US Department

The Power Is Now MAGAZINE | 40

of Housing and Urban Development has responded to assist residences who have been affected. If your mortgage is a traditional one, then you must contact your lender immediately for solutions. If your mortgage is FHA-insured, then below are the following options that may help you.

The official FHA website states that “HUD has instructed FHA lenders to use reasonable judgment in determining who is an ‘affected borrower.” This means that if your house was damaged, and your mortgage payments were up to date before the disaster, but you are now unable to make the coming month’s payment, your lender may be able to waive the late fees. Additionally, they will speak with you about other available options that fit your specific needs. You may be required to provide supporting documentation to confirm your situation was a result of the disaster. Your lender will assist you in finding loss prevention measures, or come up with a plan to help you retain your property known as forbearance. If your home is unsalvageable, then your lender may accept the deed to the home instead of foreclosing on the property that would affect your credit score.

Immediate foreclosure relief

If You Were Behind in Your Mortgage Payments

If your home has suffered damage from the disaster, you have no resources (i.e. insurance) to meet your mortgage obligations, and you have already missed a mortgage payment, then you are protected under a Foreclosure Moratorium.

This means your lender cannot foreclose on your home for the next 90 days.

By the FHA website, if your home was damaged and you were behind in your payments before the disaster, you may be eligible for a foreclosure moratorium. This means that you could be given a 90-day pause in payments. If you reside within the limits of the declared natural disaster, you automatically receive a 90-day moratorium.

If your financial standing has been affected by the disaster, rendering you unable to submit immediate payments, you will also be granted a 90-day postponement of fees. And finally, if a member of your household was announced “deceased, missing, or injured” as a result of the disaster, you are also eligible for a moratorium.

If you have not defaulted on your loan, then you are obligated to continue servicing your mortgage loan. However, if you foresee difficulty in meeting your next payment as a result of the disaster, then you need to contact your lender, in which case they may waive any late fines that typically apply.

The Power Is Now MAGAZINE | 41

www.thepowerisnow.com

MORTGAGE

along with non-financeable monthly premiums that is added to your mortgage payments. Note This program applies for general renovation and that there is a limit to the amount extended on not just as a result of a disaster. If you bought this program. a home that requires renovations, then you can apply for this program that will wrap the costs Although dealing with the aftermath of a natural with your mortgage as one regularly serviced disaster is a painful procedure, there are helpful payment. The 203(k) program is also applicable options that are readily available. By getting in to repairs or renovations greater than $5000 to contact with you FHA lender, you will be able to access the options available to you and let currently owned property. the FHA ease your burden. The first step is to Mortgage Insurance for Disaster Victims program contact your lender and insurance agent to find out which of the above options could help you.

If you are rebuilding or repurchasing another If your agent is not able to help you, and you home due to the disaster, you could qualify for the are a victim of Hurricane Matthew, then you can 203(h) program whether your home was partially contact me for counseling service at damaged or destroyed. This program allows you www.thepowerisnow.com or email me at to purchase a home with no down payment, but eric.frazier@thepowerisnow.com. you will have to pay a financeable upfront fee

Rehabilitation Mortgage Insurance program

TECHNOLOGY

The new face of Real Estate Technological disruptors and their

effect in real estate industry

T

echnology continues to be a vital organ in the development of major business industry. It acts like a catalyst catapulting all areas of the business industry. If you look at the world today, especially the real estate industry, you will notice greater advancement in terms of the mobility of information and workers.

Technology in this industry has made workers linked, a trend that was never there before.

Technology dynamical forces are becoming stronger and stronger everyday forcing the industry to try and keep up with these dynamics something that has not yet ben achievable. though there have been significant changes in the real estate world as far as technology is concerned, much has been left out since the industry cannot keep the pace with which technology is advancing. But that is to change in the near future. The industry is making huge steps to make sure that technologically it grows.

in the real estate industry. Data handling and management is now easy and effective to both the brokers and the landlords. Traditionally, handling paperwork was a little tiresome but with the cloud-base data management, data can now be handled more effectively and efficiently.

Access to data is now at personalized level, the way the landlords and the brokers and also the consumers are accessing data on real estate industry is at a personal level, no hustles or bustles. Earlier, consumers had to go on site to see the projects and access other vital information but with some few clicks-on-links nowadays you can get to view more than what you would expect.

Technology in real estate Real estate is changing and transforming with a great jump. Some changes have made it possible for the impossibilities in the industry. Nowadays, at the tap of your phone, you are getting things done in a faster and an efficient way.

Transactions, updates, searches and many other things are possible within no time and this is a positive change november 2016

The Power Is Now MAGAZINE | 44

Positive disruptors in the real estate industry

We are in the middle of a complete sea change in terms of how technology is transforming how we access data and how we as professionals get access to data and lower the cost of that access

Technology has made quite a significant change in the real estate industry, here is what Brandon Weber, the CEO, Hightower has to say about the access to information on real estate: “we are in the middle of a complete sea change in terms of how technology is transforming how we access data and how we as professionals get access to data and lower the cost of that access�

Technology has lowered every aspect of data and informational system access in the real estate business. Configuration and reconfiguration of some major aspects in the real estate like property management and research can now be done easily and much faster nowadays applying the latest technology.

of the day, shared services across companies is now made possible by the wind of the uprising technology.

How technology will eventually shape real estate With what is going on, as far as real estate market is concerned, a lot is expected to happen. Major changes are anticipated from the management to supervisory levels in the world of real estate.

Technology is something that you can control and therefore, the best thing that you can do is only to adapt and to make sure that you are in step with its dynamics. The real estate world is not an exception and as a result, as brokers and landlords try to adapt to the changes, some factors and influences that used to be there before are changing with a great speed.

There has been a rise in the mobile apps that are now aiding in the research, analytics and listing of the top and trending topics in the real estate business, as a consumer, you are now able to make informed judgement on what you really need.

The challenge is that, the environment under which traditional commercial real estate offices Residential and commercial lending is now were operating is now changing. Cabling and possible and much simpler thanks to the new other infrastructural development is now calling technology. This basket of the latest technology for a shift from what was there previously to a has so much than we could expect to find. Areas high modernized office. where the real estate business have matured at a higher rate, like New York, the rents due The role played by most of the brokers in the to technology may have max out. The trend real estate industry will eventually change from is changing such that the landlords are now brokers to advisors. Technologically, real estate lowering the rents to attract more tenants. data can now be consolidated into the web and

thus engagement between the client and the For smaller companies, co-location and sharing owners will be done as an online service. of the available space could become the rule The Power Is Now MAGAZINE | 45

www.thepowerisnow.com

TECHNOLOGY

Development of major software has its share in shaping real estate business as we currently know it. Cloud-based system software that enable handling of more sophisticated data for landlords and the brokers. Technically speaking, these softwares enable the landlords to analyze, track and even manage real estate projects remotely and in real time, thanks to technology.

Major stakeholder in the industry can now be able manage their projects, track the performance of these projects, run a financial analysis among other features. All these can be done while incorporating with the landlord’s property management system.

May be you have noticed this, drones in real estate. Managers are becoming more and more busy and finding time to be on site is almost becoming impossible. Development of large building like the prefab building requires more time to navigate through the site. This takes time, this is however changing with the use of the drones which navigate through the site taking photos and videos. Landlords and

november 2016

other stakeholders can now be able to remotely supervise some of these sites.

These are among major changes that are happening to the real estate industry. The old is now fading away, it is time that real estate stakeholders get to appreciate the changes that are now happening and shaping the market.

With some of these changes, real estate business could contribute an unfathomable change in the economy. Letting technology play its role in real estate could mean a lot. Therefore, as a real estate stakeholder, be keen on the changes happening to the environment surrounding real estate market.

In a few years to come, this industry will have fully evolved to something greater, only if we allow these major disruptors have their effects on the way we want to shape real estate.

The Power Is Now MAGAZINE | 46

Lynetta Cornelius BROKER

Cal BRE # 01362142

SPECIALIZING IN: • Residential Real Estate • Commercial Properties • Lending & Financing

Want to Buy, Sell or Rent a Property?

Director of Real Estate Sales & Operations

Office: 800-401-8994 ext. 705 Direct: 714-709-1394 E-mail: lynetta.cornelius@thepowerisnow.com Website: thepowerisnowrealestateservices.com/

ALFONZO L. EDWARDS Realtor | Cal BRE # 01937296 Relationship Manager Office: 800-401-8994 ext. 732 Direct: 925-435-2557 E-mail: alfonzo.edwards@thepowerisnow.com Website: thepowerisnowrealestateservices.com

FINANCES

MAJOR CONSTRUCTION INDUSTRY TRENDS 2016-2017

L

ast year, the industry had its drawbacks and cutbacks but nevertheless, construction industry continues to rank among the highest in terms of economy diversification. Focusing on the year just ended, it is evident enough that the industry had some major challenges but all that is now gone. It was predicted that this year alone would see the construction industry sector rising by 6 percent which is significant to the country’s economy.

influence the construction industry.

Construction building overview from the previous year

Experts in the construction field agree that in 2016 and 2017, the construction industry will rise significantly compared to what was witnessed in the previous year. Construction building had been on the rise in 2015 and this trend has continued to prevail in most of the Construction industry in the country is still U.S states. Commercial, single and multi-family on the verge of rising and analysts earlier had housing are still registering decent percentage their prediction in the outcomes of this year’s growth rate this year. performance of the industry. Major economic influences that led to a high prediction in the “The economy continues and will continue to be construction value in the 2016 alone included led by the consumer spending growth” Anirban factors such as the rise in new technology, Basu. This shows that the expected trend will the workforce concerns and the homebuyer’s continue to be on the rise as the consumer preferences. All in one are expected to greatly spending growth rate still increases. november 2016

The Power Is Now MAGAZINE | 50

The labor market improvement in relation to hope for most contractors struggling to keep up construction industry development their jobs against the current dodge of technology and shortage of labor. Major emerging trends in One of the key drivers in development of the the construction industry have been remarked construction industry is the labor. The labor and points to the following; market contributes greatly to the development of the construction industry. As it is today, a lot of Skilled labor shortage young adults continue to flock the city states and improving their welfare in terms of remuneration As pointed out earlier, during the recession and addition of new jobs in the market improves period, quite a significant portion of the to a greater extent the housing market since employees left to never return. This left quite a most of them will be looking to form their own huge scar in the construction industry. household. This in turns translates to growth in the construction industry.

Shortage of the skilled labor in the construction industry is not a new thing and experts argue However, during the recession period, a lot that the problem will continue to be in existence of young people were laid down bringing the this year and even beyond. construction industry down significantly.

Finding the right people for the job and people Construction companies rejected the entrance of responsible enough to fill in the spaces for new younger employees in the field and now this the new and oncoming project will still be a is causing a problematic situation in the labor milestone. market today.

Therefore, as much as we would want to ignore Still as a contributing factor to the headache this fact, it is a trend that will be on the rise this about the labor shortage crisis, slow immigration year and years to come. has had its share being a part of this crisis.

1

2

Single-family and multi-family residential buildings

During the recession period, a lot of workers returned to their countries, immigration control measures have tied most of them up such that With about 17 percent rise in the singleaccessing the country becomes even tougher. family residential buildings, experts argue that Still better jobs in their countries have caused this is a slow growth rate trend or it is a recovery. most of them not to return making this labor shortage a pandemic.

The multi-family residential buildings have come out greatly with a high kick start. However, Trends in the construction field the trend in the multi-family residential building is expected to go down again in 2017.

Though challenges are still very many, there is

The Power Is Now MAGAZINE | 51

www.thepowerisnow.com

FINANCES

3

General outcome of store and commercial centers

A great rise had been anticipated for the stores and commercial centers this year. However, going by the current trend, mergers and some significant closure of this stores have affected the turnout expectation during this year.

This trend is expected to fall down from the current rise of 3% to 0% in 2017.

4

Offsite construction trend

Prefabricated construction method or the modular construction is expected to gain momentum with a high rate since it is considered one of the best construction method that offers much more benefits in terms of construction time reduction.

5

Establishment of net-zero building

In an effort to promote sustainability, the contractors will be expected to embrace this concept by making sure that they recycle materials and that there will be the repurposing of the materials. As an effort to keep the industry still in the rising glory, stakeholders advise the contractors to make sure that they are able to effectively and efficiently use the renewable energy sources.

6

Using the latest technology in construction

As a new trend that is on the rise, use of the latest technology that includes the smartphones, the drones and all that to monitor construction progress could mean reduction in the overall cost incurred. This are used to maintain a close tie between the project construction members Comparing it with other methods that are and making sure that they are informed of the common and that most of the company stick to, latest developments in the ongoing project. certainty is guaranteed and including in the list of the benefits that come with this method is that From what is going on, construction industry it minimizes the waste and cuts cost. is on the process of full recovery from the last full blow of economic recession. However, great Therefore, taking into account all the benefits advancement in the industry are still coming in realized with the prefab method, this is one of this year and 2017 is expected to spearhead the the trends seen making greater efforts this year overall performance of the industry. Therefore, and it will continue to be on the rise the coming there is still hope in this industry to even make year mostly in the health sector. greater steps in the future.

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.

FINANCES

november 2016

The Power Is Now MAGAZINE | 54

The Power Is Now MAGAZINE | 55

www.thepowerisnow.com

California Association of Real Estate Brokers CAREB Annual State Conference “State of Housing in Black California”

(2 Million New Black Homeowners in 5 Years)

November 16th thru 19th, 2016 San Diego Mission Valley Marriott 8757 Rio San Diego Drive, San Diego, CA 92108

Hosted by San Diego Realtist for Democracy in Housing Opening Session “State of Housing in Black America” General Sessions n How to Diversify Your Business, Minority Business Owner Certification & Access to Capital n What’s Fair & Politically Correct?” Community Reinvestment Act & Fair Lending/Fair Housing/Fair Employment Practices n “Show Me The Money” Access to Mortgage Capital

Closing Session “Focus and Finish” Survival, Success, Significance Educational Break Out Sessions n FTHB Certification Part 1 “Master the Market” n Employer-Assistant Housing Certification n FTHB Certification Part 2 “Be the Go to Agent” n Paperless Professional “Transaction too Close” n “Look Like a Pro” with Comprehensive Data, n Are You BRE Compliant? - How to Audit Proof Powerful Analytics, and Client-friendly Reports Your Brokerage in 5 Minutes n Chapter Best Practices Panel n The Probate Process (Certification Available n Mastering the Residential Purchase Contract with test and Additional Fee) n Pre-Conference Hands On Technology Online Registration: Member Registration $149 Non Member Registration $349 Register on or before October 31, 2016

Take advantage of Early Bird Registration Now!

Register: CAREBConference2016.Eventbrite.com

Sponsorship & Vendor Opportunities Available: Contact CAREB President Derrick Luckett 619-825-9560 or Conference Chairperson Denise Matthis 619-335-5564 Conference Room Rate $159 Expires 10-12-16 https://resweb.passkey.com/go/REBNov2016

The Power Is Now MAGAZINE | 57

www.thepowerisnow.com

november 2016

The Power Is Now MAGAZINE | 58

The Power Is Now MAGAZINE | 59

www.thepowerisnow.com

november 2016

The Power Is Now MAGAZINE | 60

The Power Is Now MAGAZINE | 61

www.thepowerisnow.com

november 2016

The Power Is Now MAGAZINE | 62

The Power Is Now MAGAZINE | 63

www.thepowerisnow.com