September 2019 Willamette Valley Real producers

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W I L L A M E T T E VA L L E Y

C O N N E C T I N G .

E L E VAT I N G .

I N S P I R I N G .

TOP PRODUCER HECTOR GARCIA REMAX INTEGRITY

INDUSTRY EXPERT DEREK LOWE REALTOR® SAFETY MONTH

COVER STORY

CATHERINE

ULREY

KELLER WILLIAMS CAPITAL CITY Cover Photo by: Pamela Hagedoorn of SilverDream Photography

COMMERCIAL CORNER GABE JOHANSEN SMI COMMERCIAL REAL ESTATE, LLC

PREFERRED VENDOR SPOTLIGHT 1-DAY SIGNS

SEPTEMBER 2019


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2 • September 2019

Ben Nelson

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TAB LE OF

MEET THE

CONTENTS

WILLAMETTE VA L L E Y

09

10

14

Publisher’s Note

Top Producers: Hector Garcia

Cover Story: Catherine Ulrey

18

19

22

Working With Clients Shopping For Equestrian Property

Mark Your Calendars NOW

26

32

Gabe Johansen, SMI Commercial Real Estate

REAL PRODUCERS TEAM

Industry Expert: REALTOR® Safety

Sabrina Dikeman Publisher

Allison Blakely

Pamela Hagedoorn SilverDream Photography

Client Relations

Publisher’s Assistant/ Photographer

Partner Spotlight: 1-Day Signs

36

Event Re-Cap: MVAR BBQ pictures

Stephen Dikeman

Kathryn Davidson Photos by Orion

Editor

Rick Osborn Writer

Katrina Albers Writer

Photographer

If you are interested in contributing or nomination REALTORS® for certain stories, please email us at sabrina.dikeman@realproducersmag.com. DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily reflect the views of N2 Publishing but remain solely those of the author(s). The paid advertisements contained within the Real Producers magazine are not endorsed or recommended by N2 Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher may be held liable or responsible for business practices of these companies. NOTE: When community events take place, photographers may be present to take photos for that event and they may be used in this publication.

Dana McCarty Writer

Jennifer White Writer

David Giglio Skyline Video

Videographer and Media

4 • September 2019

www.realproducersmag.com • 5


PREFERRED PARTNERS

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6 • September 2019

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PROPERTY MANAGEMENT/SALES Centurion Real Estate Management LLC 1365 Commercial St. SE, Salem, OR 97302 (503) 588-0940 www.c-rem.com ROOFING AND ROOF REPAIR Anytime Roofing (503) 446-0918 www.anytimeroofingllc.com SIGNS AND GRAPHICS 1 Day Signs (503) 371-1329 1010 Commercial St. SE, Salem, OR 97302 www.1-daysigns.com TITLE AND ESCROW Fidelity National Title Company 500 Liberty St. SE, Suite 200 Salem, OR 97301-3496 (503) 585-7219 www.fidelitytitleoregon.com VIDEO PRODUCTIONS AND WEBSITEDESIGN Skyline Video Productions (503) 979-2141 www.skylinevp.com

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www.realproducersmag.com • 7


publisher’s note

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“You can’t escape the responsibility of tomorrow by evading it today.” – Abraham Lincoln I never intend to, but somehow I find myself trending this way. I wonder… how many opportunities have past me by due to evading responsibility today. But, isn’t there always tomorrow, Monday, next week, etc.? Am I the only one who struggles with procrastinating progress? I feel like for the most part, my intentions are good – they are meaningful and deliberate. I come up with a plan in my mind (typically in the shower or behind the wheel), a wellthought-out, written check list of what I will strive to accomplish in a day’s time, but yet, I seemingly end most days with a lot of responsibility rolling over into my tomorrow.

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So I stop for a moment (literally one moment): I breathe, and I truly contemplate Honest Abe’s poignant words. No, I can’t escape the responsibility of tomorrow, assuming there is a tomorrow, but I can take today in stride and be mindful that even though I believe I can do anything, I certainly should not expect myself to do everything.

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Lately, I am all too aware of my responsibilities. As my 10-yearold son ponders his next big sleep-over, my 13-year-old son asks for yet another video game, and my 19-year-old son has just graduated and is preparing for the college path he is eager to begin. I am just as eager for him – that is, to guide him and steer him toward his goal of finding the right school that will mold him and equip him for the career he chooses. All the while, I continue to painstakingly juggle a full-time business, company leadership responsibilities, manage my home, maintain friendships, community involvement and making sure my 4 dogs and a litter of 10 puppies are fed. I haven’t even mentioned the unexpected events that require attention, navigation and resolution. What?? So many hats. So many responsibilities.

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Well, I guess I would be remiss not to consider, “What if tomorrow never comes?” Who will take care of all of my responsibilities I “escaped” today?

Creating and producing our 18th issue of Willamette Valley Real Producers is both a joy and challenge. I can’t believe it’s officially a year and a half since we launched. My vision has come together, issue by issue, as you will see throughout the pages each month and on the covers, with much thanks to my talented photographers and writers. I’ve managed to pull together over 60 inspiring REALTORS® that made up these past 18 issues. I’ve also aligned Real Producers with more than 30 of the very best affiliate companies that make up our current Preferred Vendors referral list. Do I pat myself on the back? Well, no, because I know this was not me. This was a conjoined effort of my staff, the photographers, the vendors and all these esteemed REALTORS® sharing their time with us. And at the heart of it is the responsibility of inspiring others. I hope you find “connection, elevation or inspiration among the pages of WV Real Producers. I thank you for supporting us as we shared with you the multitude of remarkable REALTORS®, business partners, and industry experts who combine the responsibilities of today with a vision of tomorrow. As we each tend to our responsibilities today (and perhaps evade a few until tomorrow), don’t forget to enjoy all the moments along the way – and don’t forget to feed the dogs! God bless! Sabrina Dikeman

We are proud to welcome our newest Preferred Vendors: Angie Stanley and her team with US Bank Home Mortgage for your clients home loan needs.

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Andrea McCann • 503-581-8257 www.realproducersmag.com • 9


top producer

JOURNEY IT’S ALL ABOUT THE

Written by Rick Osborn, Photography by Kathryn Davidson, Photos by Orion

HECTOR L. GARCIA’S Keys To Success Are Education, Industry Knowledge

10 • September 2019

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For Hector L. Garcia, it’s all about product knowledge and expertise. The John L. Scott Real Estate broker holds a series of credentials that help him better serve his clients, but he also got a head start by entering the real estate business with a background in home construction and lending. In fact, for two years before he became a licensed broker, he previously worked for a mortgage lender. One day a gentleman, who happened to work as a real estate broker, told him he’d be good at it. So he jumped in and never looked back. His past experience with the lending side gives Garcia a unique perspective. Before that, Garcia worked as a purchasing agent in the building industry. “As a purchasing agent you’re talking to people on the phone and little did I know I was learning everything I needed to do for being a REALTOR®,” Garcia said. “I ordered every item that it took to build a house and so that gave me a lot of product knowledge.

12 • September 2019

We really shouldn’t be order takers, and you really should know the product you’re selling.” Garcia didn’t rest on his laurels and continued pursuing professional accreditations to continue bolstering his knowledge base. He earned his Principal Broker license, in addition to becoming an Accredited Buyers Representative, Graduate of REALTOR® Institute, Military Relocation Professional and National Association of REALTORS® Green Designation recipient. During his nearly 13 years as a broker, Garcia has continued to grow every step of the way, but he’s always been at home in the John L. Scott Real Estate office in Salem. Even though he has earned his own Principal Broker license and is qualified to run his own office, Garcia enjoys the mentorship, camaraderie and professional experience of working with the owner of the firm where he works, Principal Managing Broker Pam McCarthy. “The minute I got into this business, I jumped into this office and I’ve stayed here,” Garcia said. “I’ve been with John L. Scott since the beginning. It’s the people in this place, and people is the reason for this business. It’s the relationships I’ve built with the people that have been here. There are people who have been here since as long as I’ve been here. In looking back on it, it’s not about the money. It’s about the people.” Garcia has deep roots in the Salem community. Born at the old Salem Memorial Hospital in 1966, Garcia describes himself as a true webfoot. He grew up south of Independence out in the country. “I was a country boy,” he said, recalling a much different time and place than what the local region looks like today. “I grew up hunting and fishing, sneaking guns out of my dad’s closet at 7 years old.”

After graduating from Central High School in Independence in 1984, Garcia went down the road to Oregon State University to study forest engineering. He joined a fraternity and confesses maybe he wasn’t disciplined enough at that point in his life. He married at 19 years old and by 21 he owned his first home. That led to the necessity to work where he could find it. And his work led him to real estate. Garcia credits much of his success to growing up a middle child and having to work for everything he’s got. He worked hard as a child. His parents also worked hard, sometimes with multiple jobs, to support the family and seek out the American dream of home ownership and stability. “As a middle child, we’re problem solvers by nature,” he said. “Hence, this business suits me well. We want peace and amicability and, I guess, ultimately resolution.” Those same values of family, community, hard work and problem-solving led Garcia to a life of service to his profession. He’s involved in the Mid-Valley Association of REALTORS®. He’s served as president of that group, as well as been named REALTOR® of the Year. He’s served as chair of several different committees with the group. “Part of my business comes from other committees I’ve served on while getting these accreditations,” he said. “You get as much out of this business as you put into it. Selling houses and being a pretty face is easy, but getting involved is important.” These days, Garcia has been diving in more at the state level, serving on committees with the Oregon Association of REALTORS®. At the state level, he’ll be serving as the Chairman of the Professional Standards Committee and Vice Chairman of the Diversity Committee. He’s served several years on the Board of Directors, as well as

earned distinctions at the state level as REALTOR® of the Year and Distinguished Service Award Winner. Aside from the accolades, Garcia likes to have fun in the business. He added his middle initial, “L,” which stands for Louise, on his business card to differentiate himself. He is careful about his reputation and doing the best work he can for his clients with honesty and integrity. “We all want to be liked and we all want to be valuable to some extent, and to be able to feel that way because of your natural integrity and natural abilities that you’re doing the right thing,” he said. “There is a statement that you can work 30 years for your career and your reputation but it only takes 30 seconds to destroy it. Your name is everything in this business.” It’s probably fair to say that Garcia is a proud person. But the people he’s most proud of are his family. It all starts with his wife of 22 years, Cindy E. Garcia. She’s the manager of the print plant in the Oregon Department of Administrative Services. His son Levi E. Garcia is 25 years old and attending Portland State University working toward a degree to become a nutritionist. His younger son, 20-year-old Xavier A. Garcia, is completing his real estate licensing course and in September will become Hector L. Garcia’s assistant. “I’m very proud of my wife and what she’s done working where she has,” Garcia said. “She’s a manager with the State of Oregon and she’ll probably inevitably end up running the print department at DAS one of these days.” In his spare time, Garcia is still an outdoorsman. He enjoys warmwater fishing, outdoor photography, kayaking in the Willamette River, golfing, gold-panning and mining. He owns 100 acres in Siskiyou County, Calif., and 400 acres of mining rights down there. He also enjoys turning a

wrench, working on his two Volkswagens and three motorcycles. “When we fix something, we feel successful,” Garcia said, “and when we feel successful, we build confidence.” Garcia has built his professional confidence through pursuing specialized education and credentials in the industry, involvement and hard work. He believes it’s important to be a genuine person instead of a salesman. He stands by that philosophy and encour-

ages anyone entering the business to follow that path. Hard work is the key to success. “I thought as a child growing up we were poor, but I didn’t realize my parents were buying their house,” he said. “We were growing up on an acre and a half. I grew up rich in the sense that I grew up hunting and fishing in the farmers’ ponds and bucking hay. I know what hard work is. Work ethic is everything for me.” www.realproducersmag.com • 13


cover story Writen By Sabrina Dikeman, Photography by Pamela Hagedoorn - SilverDream Photography

CATHERINE

ULREY A PA S T A N D A HEART FOR ACREAGE, FARM AND EQUESTRIAN PROPERTIES

14 • September 2019

www.realproducersmag.com • 15


It was a neighbor back in the 90’s that planted the seed and suggested Catherine Ulrey consider being a REALTOR®. She took the challenge test, passed and was on her way with a new career. When Catherine started real estate in 1997, she wondered how she could differential herself and standout as a REALTOR®. She soon discovered that she already had a nitch and how she was different was

intrinsically connected to her sole; her past and heart for acreage, farm and equestrian properties. Catherine has been with Keller Williams since 2008. After reading The Millionaire Real Estate Agent by Gary Keller And Jay Papasan, she knew she had to be apart of Keller Williams. The closest office was one hour away, but that didn't stop her. She hung her license with KW and worked from home. Thanks to technology and a shifting market, it worked. The industry was shifting from large, stuffy offices with a corporate attitude that advertised in the newspaper, to focus on the agent growing their unique business online. 60-65% of her clients are acreage seekers, looking for properties from small acreage to huge properties, pastures, boarding stables and riding facilities. If a person’s dream is equestrian property, a mini ranch, a boarding facility, or just a quiet rural setting, Catherine can be their guiding light.

16 • September 2019

Catherine feels as though she is among the lucky few. Her specialty real estate focus permits her to help clients match their lifestyle with their dreams. There isn’t a day that goes by that she doesn’t appreciate the challenges, rewards and enjoyment her clients bring. While her focus is horse farms, she says we are experiencing a stirring evolution in our market; one that not only includes selling equestrian facilities, but also selling lifestyles. This new expanded focus takes on many faces; all of which require acreage and a dream. “I can see it in my mind’s eye – a cozy four-stall barn bordered by white post-and-rail fences and fronted by lush, green pasture with (best of all) my mare happily grazing...all just outside my back door. And I bet I’m not alone. How many horse owners don’t dream about having their own property? Let’s face it – you’d be hard-pressed to find a horse owner who won’t admit to fantasizing about owning their own acreage. I get to make their dreams their reality.” Living on 20 acres in Linn County, farming and horses are Catherine's past and passion. Because of this, she can expose her clients to a variety of properties that they might not have found on their own, provide invaluable

insight into the current market, and help them negotiate and help them negotiate the contract. Catherine is an avenue, or “horse trail,” who uses her expertise to help her clients end up with a property that suits their budget and needs. Buyers are diverse and have a variety of lifestyle goals in mind when looking for their right property with acreage. That objective may simply be a search for privacy or an opportunity to live a more natural or organic lifestyle through hobby farming, gardening or raising livestock. Equestrian customers continue to be drawn to the Pacific Northwest-based on weather, ease of travel, cost of living, ambiance and the many advantages of the area. Sometimes she helps customers that are seeking a family compound, private retreat or weekend getaway; a place for family and friends; a place to have pets; or a home to raise children in a more wholesome environment. Catherine has the right industry contacts, such as builders, contractors, fence and arena footing installers, should their property need any extras added on. She knows to refer clients to the local municipalities to check on zoning regulations to make sure the client can use the property as intended, or build in the proper

LET’S FACE IT – YOU’D BE HARD-PRESSED TO FIND A HORSE OWNER WHO WON’T ADMIT TO FA N TA S I Z I N G A B O U T OWNING THEIR OWN ACREAGE. I GET TO MAKE THEIR DREAMS T H E I R R E A L I T Y.”

contingencies in an offer to protect them. An equestrian client’s needs and wants can be fully understood and looked after by Catherine because she lives their lifestyle and has the same passion they do. Catherine is patient with rural property buyers. It is a very different niche, because you are not just looking for the right house to fit your style, or how new and updated the home is. Rural property buyers are also considering other factors such as well water, land use, driveway access for trailers, outbuildings, easements, and distance to the freeway or trail head. Because there are more criteria to meet, it can take a lot longer for a buyer to find the right property. Catherine's community involvement includes supporting local equine events, such as horse shows, 4H

Clubs and the Mustang Challenge where a teen is assigned a BLM Mustang to train and care for 90 days and then compete with. She has also been involved with the local chapter of the 40 Something Cowgirls, a social club for ladies who ride and attend a variety of events. She runs the Facebook page "Willamette Valley Horse Owners," an online community of over 2600 horse owners. She also served on the board of Oregon Horse Council for 4 year, an organization dedicated to the promotion of the equine industry in Oregon. Catherine spent most of 2009 (you know, during the big market crash, there wasn't much else to do) in a real estate course that helped agent develop a niche website. She attributes most of her success to this site. "It's the way I stand out. Buyers and sellers will Google "Horse property

for sale in Oregon" or "selling horse property in Oregon" or some other variation, and they usually find me above Zillow or Realtor.com." On the personal front, Catherine and her husband Justin have a 26-yearold daughter, Kavika. Her horse is a 13-year-old Frisian horse named Violet, 2 donkeys, Daisy (8) & Rocky (11), 3 cats, a 7-year-old Doberman named Titus, a 5-month-old puppy named Cella, and a flock of chickens! She loves tending to her flower gardens, vegetables, fruittrees and animals. I can understand why she says her vacations are few and far between! When asked what her favorite closing gift has been, Catherine perked up, smiled big and said, ‘I gave a baby goat and a baby pig to a client who was 60 years old, who, for her entire life, dreamed of owning a farm and it finally happened!'

www.realproducersmag.com • 17


WORKING WITH CLIENTS SHOPPING FOR

EQUESTRIAN PROPERTY KNOW WHAT THEY WANT IN A PROPERTY. Do they want a property with trails to ride, or is it more important to have a facility for their horses? How many horses do they have? Will they be doing any boarding or breeding? Will they need a private or commercial facility? Know their wants and needs prior to doing anything else. 1. Make sure that you, as their real estate agent, knows the local rules and regulations when it comes to environmental issues, property use restrictions, how many animals are allowed per acre on the property, etc. 2. Is the location, acreage and zoning correct for their specific use? 3. If you’ve worked with other clients that bought or sold equestrian property, ask them for testimonials. They go a long way in this niche industry. 4. Make sure you have a relationship with a lender that specializes in financing rural, farm and/ or equestrian properties, “because it’s very different from financing a house in town in terms of rules and regulations. It’s a lot tougher to get financing on a rural property than it is in town 5. Help your client plan ahead. As you start to look at specific properties, help your client think of their future or long-term needs. If 18 • September 2019

they plan on expanding later, make sure they have the acreage to do so. 6. Do they need to be close to horse-friendly trails, or maybe they are looking for a property with their own trails? 7. Pay attention to how far the location is from their work if they work outside of the home. They can always make changes to the property or add on/remodel, but they cannot ever change the locality so make sure they LOVE the location. 8. Walk the property so you know the quality of the soil. Make sure it is good soil for their horses to graze. 9. Check the water supply on the property and make sure the water access is good to get the water to the trough for their horses. Water is always a crucial factor, adequate water supply becomes even more important for horse properties. Good well water supply with at least 10 gal-

lons per minute (gpm) and/or city water supply is important. Also, look at where the water access points are. Hauling buckets of water manually to fill the water trough in the field that’s out of hose reach from the barn is a lot of work and time. 10. Don’t rush the process. “All acreages are unique, buyers can get fatigued when they can’t find exactly what they want and compromise, only to regret it later. It may prove difficult to find the perfect land, perfect home AND perfect barn, so ask your client to decide what is most important and tweak the rest as they are able to. “It’s very rare that you’re going to find THE house and THE facility all in one package. It is less expensive to build a barn than to build a house but there can be more regulations associated with building a barn because you’re dealing with animal housing units and all the environmental issues that go along with that. For the true horse people, the barn is usually more important. They can always renovate the home if it isn’t perfect.

Mark Your Calendar

NOW OCTOBER 24TH, 2019 We are less than 2 months away from our Fall Willamette Valley Real Producers social. Please join Top Producers and our Preferred Partners for a night of friends, connections and fun.

DON'T MISS THE NEXT BIG EVENT The Real Producers Realtor® Round Up

Highlights of the event

Location: Plumli Farms / Oak Knoll Golf Course 335 HWY 22 in west Salem Our event will be inside the brand new Plumli Farms Concert Series tent at their harvestfest property. Right next to the Oak Knoll Golf Course.

• • • • • • • • •

Assorted heavy appetizers w/ amazing desserts Free Wine Tasting (guest wineries TBA) Red Carpet Photos Commemorative Wine Glass gift Non-host full bar Live Music (band TBA) Free tour through the Field of Fear Corn Maze (if you dare) Bonfires outside the tented area with S'mores kits Door Prizes - lots of door prizes!

Time: 5:30 - 8:30 / Stop in for a bit or stay for the whole time

Watch for info coming your way. MARK YOUR CALENDAR NOW! You will NOT want to miss this one! If you know anyone of a unique venue for a future event, we are always on the lookout for amazing event spaces.

www.realproducersmag.com • 19


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industry expert

Safety By Derek Lowe

REALTOR®

MONTH

The world can be a dangerous place The world can be a dangerous place. As REALTORS®, we are constantly reminded of the hidden dangers in our day to day lives. With a predominately mobile workplace, our days take us all over the Willamette Valley, always visiting new locations. During this time of year, as the nights are longer and start sooner, crime rate naturally increases. Knowing how to properly defend yourself from predators is generally viewed as optional. Fortunately, most crimes can be easily prevented and deterred if the individual has the knowledge and reactionary response to act. Derek is not only a retired Corrections Lieutenant with 30 years in the industry, but is also currently a Department of Corrections instructor at the departments Professional Development Unit, and teaches/lectures on Personal Safety. He is also and private fitness trainer who a local gym named ChalkBox Training. Derek has volunteered to offer his advice to help local REALTORS® protect themselves from being victims. According to Derek, there are two different components to self-defense.

22 • September 2019

First and most important is the action/mindset you take prior to the event taking place, and second is the action/mindset you take while the event is happening. Before the event transpires, the potential victim has to consciously make choices that help prevent them from getting into the situation. The first step is “Situational Awareness.” Imagine for a moment you are driving to meet family or friends at a favorite restaurant near your home for a birthday celebration. While at a stop sign, a car bumps into you from behind. You glance into the rearview mirror and see two people occupying the driver and passenger side of the vehicle—there may be someone in the back seat, but you cannot be sure. You then exit the car to assess the damage. The other driver exits his car to meet you, and you are both relieved to discover minimal damage. While focused on exchanging insurance information, however, you hear commotion from the other car and realize another individual is rapidly approaching you. They are armed with a gun and tell you to hand over your wallet and car keys. You comply. The individual with the gun gets into

your vehicle, the other driver returns to their car and both drive away. The preceding example is an extreme, yet realistic, mental exercise when beginning to understand the importance of situational awareness. If this did happen to you, what would you do? How would you react? Could events have played out differently? Developing a practice of educating oneself on environmental surroundings, known or unknown, is the best way to circumvent preventable threats to you or others. “Knowledge is power,” so the saying goes, and it could not be more true than when considering situational awareness. What is Situational Awareness? At its core, situational awareness is about personal safety and keeping yourself safe at all times through preparation. Situational awareness can be understood as: • A collection of skills needed to set limits in situations that make us uncomfortable or are possibly dangerous. • An awareness of the environment and basic understanding of how to avoid potentially dangerous situations. • Aspects of how we feel about ourselves (ex: self-esteem and confidence), how we relate to our bodies and how to trust our instincts. It is important to listen to the cues and instincts of your body. Turns of phrase like “I feel it in my bones” or “I have a gut feeling” are applicable here, a kind of “sixth sense” to let us know we may be in a dangerous situation. A physical sense of danger is sometimes enough to understand that something is wrong. Ultimately, it is awareness that is key to understanding personal safety. Awareness allows for an individual to know not only his or her environment, but also his or her own capabilities and limitations. John Dean “Jeff” Cooper, a United States Marine, is

responsible for Cooper’s Colors, a set of criteria by which to gauge the level of danger within a given scenario. Cooper’s Colors are: WHITE· Unaware, unprepared and

unconcerned. This is the normal state of mind when you are in the safety of your home, for instance. YELLOW· Attentive but relaxed. This is the normal state of mind when out in public, such as when you are running errands or visiting the grocery store. While this keeps threats remote to your person, it facilitates a distance that allows you to notice the nice things in life without immediate cause for concern. ORANGE· Your focus becomes direct-

ed at a potential threat. Now you must start planning a strategy in case the potential threat become concrete and imminent. Ideally, you will avoid the situation altogether. RED· Imminent danger exists and immediate action is needed. You must make the decision to run, hide/take cover or fight. BLACK· You are actively applying an

appropriate level of justifiable force— firearm, pepper spray or improvised weapon—to neutralize an imminent threat to life and limb. If you are actively being robbed or hurt, then you may need to comply with demands. (It is crucial a firearm never be used unless you are extensively trained to ensure proficiency, familiar with state laws and prepared to kill someone to defend your own life.) Here are suggested guidelines: Research your client before meeting them for the first time: As salespeople, we tend to get excited about a new sales opportunity. We also tend to take what our clients tell us at face value. Before you go and have a spontaneous meeting with a potential client, do some research and look them up on social media to get an

idea of who they are and what type of lifestyle they lead. Social media can be the window into better understanding one’s background. The best and most effective measure is to meet the client in a public place for your initial meeting. Limit your exposure: As REALTORS®, we have the unique circumstance of having to heavily self-promote. Some REALTORS® have become victims of predators due to having their picture within their marketing. Getting to know your clients first will help you gauge your comfort level, but will also limit your exposure helping to prevent situations from occurring. Be smart about how you promote yourself.

Bring another person with you: A client won’t know that this individual doesn’t normally accompany you. If the client does have malicious intentions, adding another individual will help prevent them from taking action. Always remember that the predator wants an easy target; two people are more difficult to manage than one. Preview the house you are showing prior to meeting the client: Take some extra time and go to the house early. By unlocking the front door before they arrive, you don’t have to concentrate on that task with the client right in front of you. Make sure you tour the property beforehand, so you know the layout of the property; this will help you be aware of the most effective exit strategy.

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Let the client lead the way into the house/room: As real estate professionals, we are always trying to make the process as quick as possible. At times we fall into the trap of leading the client through the home, ultimately turning our backs on them. When we do this, it takes the client out of our line of sight and effectively “traps” us in rooms. Instead, have the client walk ahead, which will allow them to feel as if they have more control “exploring” the home, and it allows you to keep the path open to the exit if necessary. Make sure you are always between the client and the nearest exit. Don’t “trap” your-

home, always have a plan for a quick exit. Take note of any exits including windows. In our earlier mental exercise, the driver could have had the other car follow him to a public place, for instance, or the nearest police station, where they would then report the accident and exchange pertinent information.

to fight back hard. Here are some tips for what to do during an attack.

Quick tips: Make sure your keys are on you, not at the bottom of your pocketbook or jacket. Hitting the panic button will cause the predator to think twice. Have your cell phone readily available and know how to use the SOS function on your phone.

Aim for sensitive areas: Go for sensitive areas such as the eyes, nose, throat and groin. The solar plexus is also a sensitive area but requires a decent blow to be effective. Hitting, punching, and scratching are all fair game — your life could depend on it.

Regular self-defense courses: When it comes to self-defense, repetition is key. Taking a two-hour class is not enough; in fact, a one-time self-defense course may give you a false sense of security, thus doing more harm than good. If any establishment offers you a self-defense class and begins by teaching you how to punch or kick in the first 20 seconds, run far far away and go seek a professional instruction at a reputable gym. Your body and mind need to repeat a motion countless times in order to create muscle memory. Taking regular self-defense classes creates the appropriate muscle memory so that in time of need, you can react. Taking cardio kickboxing is not the same as a real self-defense course.

self into a room. A simple gesture of moving your hand forward and saying “after you” is a polite way of getting this done. Always have an exit strategy: This strategy starts by always parking on the road, with your vehicle facing the direction you want to go; avoid pointing toward a dead end. If you park on the street, you can’t get blocked in. This places your vehicle in the public eye, helping to deter predatory action. Furthermore, when in the

24 • September 2019

After utilizing the above-mentioned measures, the next part is being able to defend yourself if an attack occurs. We can try to do everything in our power to prevent something from happening; however, in the event those measures don’t work, we need to be able to defend ourselves. It is difficult to know what the purpose of an attack is. It could be robbery, assault or worse. At the beginning of the event, you must always assume the worst-case scenario. Once someone attacks you it is imperative

Fight hard: Most predators like easy prey. It is easy to discourage an attacker quickly by fighting fiercely and creating a lot of noise. Screaming and fighting back fiercely is your best chance of survival.

Escape and gain attention: Make your way into the public as quickly as possible, press the panic button on your car keys to draw attention then call 9-1-1. Also gain the attention of neighbors and passersby. A predator’s two biggest fears are getting caught and getting hurt; by making lots of noise you are tapping into one of those fears. If they no longer feel in control of the situation, they will flee. By fighting back, being loud and gaining attention, the likelihood of them being caught significantly rises. This is the key to true self-defense. Common Sense Tips. Robberies and assaults are crimes of opportunity; do not make yourself an obvious target! Learn to trust your instincts; if something does not “feel right,” there is likely something wrong. Choose safety over politeness; you can always apologize later. Finally, recognize your own personal triggers; be sensible about situations that may make you uncomfortable, and practice a stronger sense of situational awareness during these times. It’s unfortunate that we need to discuss the different ways to keep us safe in the workplace; nonetheless, it’s an important conversation to have. As imperative that preventative measures are, it is important to seek out legitimate self-defense training.

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commercial corner By Gabe Johansen

How Does

RENT CONTROL Affect The Value Of

MULTIFAMILY PROPERTY? Over the last few months, you have undoubtedly read numerous articles about rent control. With the passage of SB 608, Oregon has become the first state in the nation to introduce a form of statewide rent control which was passed under the guise of rent “stabilization.” While the new changes for landlords are many, there is one question on a lot of minds that has not been answered. How does rent control affect the value of multifamily property?

26 • September 2019

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The answer to this question is multifaceted. There are many factors that weigh on the value of real estate, especially when considering the income-generating nature of multifamily real estate. With rent control now in place for 2019, rent increases can no longer exceed 7% plus the West Region Consumer Pricing Index (currently 3.1%). For the average property owner, this is not an onerous restriction. In most cases, managers do not increase rents by more than 10% in any given year because landlords prefer to keep their current tenancy in place and avoid costly turnover expense and vacancy loss. But what happens if one decides to sell or refinance their property? Let’s take a look at three factors that affect the value of rental property.

units being developed and a further increase in the demand. For investors, this is good news in regards to the value of their multifamily holdings because it limits competition from new properties that are coming online. An artificially low inventory will drive rents higher and thus continue to push the value of multifamily properties to greater heights. As long as the demand from renters remains, multifamily property will appreciate as a result of higher yields albeit at the cost of Oregon families, many of whom are already struggling to make ends meet. The Market

Supply and demand will drive the market to value property based on scarcity. In 2019 Q2, Oregon saw a 38% decline in multifamily transactions and out of state investment dropped to nearly zero.

Income Approach

Prior to the passage of SB 608 on February 28th, 2019, the common practice of listing brokers was to price properties based on pro forma rents. In a seller’s market when rents are on the rise, buyers are lined up and willing to pay top dollar for an income stream that does not yet fully exist. It is then the job of the buyer to increase rents as quickly as possible in order to make their investment cash flow. If a property’s rent roll is already near market levels, the value of the property can be based on current income. However, if there are tenants currently paying below market rents, the new rent control laws are going to make repositioning the asset a much longer process. This is already having a negative effect on the values of underperforming properties. Sophisticated buyers are not willing underwrite the value of a property based on rents that will not be achieved within the first year or two of ownership. Since the passage of statewide rent control in Oregon, multifamily brokers have begun to take a new approach to pricing. Brokers are now arriving at listing prices based on the income that a property will produce after its initial round of rent increases within the guidelines of SB 608. This means that if a property’s rent roll is trailing the market by more than 10%, it will be difficult to maximize its appraised value in the event of a sale or refinance, thus bringing the market value of the property down. Supply and Demand

While the legislature is currently working on ways to increase the supply of housing, historical data shows that rent control slows development, creating a greater shortage. If this holds true for Oregon, we will see a decline in the number of multifamily 28 • September 2019

Full Roof Replacements (Single, composition or metal) Roofing Repairs • Gutter Installation & Cleaning • Moss Removal Much of this could be due to the pipeline shadow of 2019 Q1 that had many investors scared to make a move, not knowing what the new rent control laws may look like. This may be a boon for local buyers because it will reduce acquisition competition, but the value of multifamily property could decline due to a decrease in overall buyer demand. Now that the dust has settled, investors are coming back to the market. Some owners have decided to sell because they no longer wish to deal with the tightening landlord-tenant laws and other owners have decided it is a good time to reposition their portfolios and are now more aggressively pursuing 1031 tax-deferred exchanges. Listings are going live at a pace we have not seen for some time which creates a different form of competition and can place downward pressure on prices. With more sellers and less buyers, we are beginning to see equilibrium in the marketplace and while property values will continue to improve over time due to supply and demand, the days of explosive growth are probably over for now. Gabe Johansen is the Willamette Valley’s #1 Apartment Broker and the Principal Broker and Owner of SMI Commercial Real Estate, LLC.

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OAR - Principal Broker Academy September 26, 2019: It’s the Law: Risk Management September 27, 2019: Set Your Path: Business Operational Decisions, Policies, and Procedures October 24, 2019: Contracting and Financing Protocol: Best Practices to Reduce Vicarious Liability October 25, 2019: Management and Leadership Strategies: Fine-tune Your Coaching, Communication and Conflict Management Skills OAR is excited to offer a new resource just for Principal Brokers! This comprehensive program is like no other. It is designed to provide professional development for any Principal Broker, whether new, seasoned, or aspiring. This course will be a blended learning experience with both in-person and online session. This program features 4 full days of classroom-style learning, with additional online pre-learning. Registration price includes breakfast and lunch on all four days. This academy qualifies for 21 hours of Continuing Education. Space is limited to the first 20 registrants only. This academy will be facilitated again in 2020.

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sponsor spotlight

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he awesome husband and wife team, Mark and Kristine Klar, and their staff at 1-Day Signs know how to accommodate everyone’s sign needs in a quick and timely matter. They will get you noticed! Let’s learn about them. Kristine grew up in Southern Oregon in the Glendale area. She moved to Portland Oregon in 2002 to attend Portland State University. This is where she met Mark who was commuting to Salem from Portland every day. They were married in August 2013 and bought a home in Salem in 2015. About a year ago they moved to Dallas Oregon where they now have a mini-farm. Their family consists of lots of fur and feathers. Kristine loves pets, “I’m known as the crazy animal lady,” she laughs. They have three dogs, two miniature donkeys, two cats, and five chickens.

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32 • September 2019

with them and give them advice on their designs. We educate them on making sure their images, colors, and materials chosen are the most appropriate for their needs. We offer high quality and focus on building relationships. We have many clients who have continued to come back to us year after year.” They offer special pricing to REALTORS® through package deals. There are various price breaks depending on the quantity ordered. Re-ordering is also easy because they keep all files, logos, and designs on hand. They also offer a wide variety of promotional products. REALTORS® love their name tags. They also offer table cloths (great for shows), flags, magnets, window graphics, pens, stickers and much more. Another unique service offered by 1-Day Signs, is they will try their best to have the signs ready within a day or two. Of course,

They purchased 1-Day Signs from Mark’s parents, Bill and Terry, in May 2016. Mark, who had been working with his dad at the company since high school couldn’t see doing anything else and wanted to keep it in the family. “I love signs and I love what we do,” Mark adds. Originally opening in 1990, his parents bought the business in 1999. They currently have 6 staff members with 5 being full time and 1 part-time. They take a lot of pride in helping their community thrive. They want to provide the best service and quality possible with that added personal touch of a family-owned business. This is something you just can’t find with those large online sign retailers. Some REALTORS® may think it’s convenient to order from online businesses, however they’ve had many come to them because they were not happy with the quality of those signs. They often had to have their signs redone. Kristine says, “We help REALTORS® and all our clients through every step of the process. We are honest

it all depends on the project, the design, and if proofs are needed, but they have a quick turn around so you don’t have to worry that you don’t have a sign for that brand new listing. “We have many clients who come to us frustrated about how long it takes other companies to get their signs and products done. We don’t want that for our clients. Their happiness is our top priority,” Kristine says. If you’re looking to make an impression, great customer service, and quick turn around time for your signs and promotional products, contact Mark and Kristine to see how they can help you.

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Company info: 1-Day Signs 1010 Commercial St. SE Salem, OR 97302 1-daysigns.com info@1-daysigns.com 503.371.1329

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