Greater DAOR 4th Quarter Magazine

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Official publication of

DOWNEY ASSOCIATION OF REALTORS

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• Installation Luncheon & Realtor Awards

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• State of the iBuyer Footprint • NEW LAWS 2020 • 2020 BENEFITS

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IN THIS ISSUE:

Re Im a g i n .R’s e A m C.

Five elements of a great business plan

4th Quarter 2019 Volume 6 Issue 4

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GREATER DOWNEY 2019 LEADERSHIP OF GREATER DAOR Executive Directors: Daniel Nevarez, President Ruben Sarinana Jr, President-Elect Michael Berdelis, Vice President Maria Lilley, Treasurer Jeanette Baumann, Executive V.P. Directors: Jesus Guerra Maribel Chavez Jose Perez Remoun Said Luther Sanchez Esther Lee Carrie Uva Immediate Past President: Ericka Saenz

Greater DAOR Chaplain: Miriam Villanueva

C.A.R. State Directors:

Ericka Saenz, Mireya Ruiz, Michael Berdelis, Daniel Nevarez, Jose Perez, Ruben Sarinana, & Josue Barrios, Regional Chair

Greater DAOR Staff

Jeanette Baumann, EVP - evp@DAOR.com

Customer Care Department

Chris Galon, communications@DAOR.com Erica Ochoa, education@DAOR.com Selena Mendoza, customercare@DAOR.com Amanda Camarena, outreach@DAOR.com

Membership Department

Julie Sartor, julies@DAOR.com Violet Pantoja, bct@DAOR.com Kayla Baumann, membership@DAOR.com Sussie Gonzalez, cs@DAOR.com

REALTORS

12073 Paramount Blvd - Downey, CA 90242 Phone: (562) 861-0915 Fax: (562) 923-9995 www.DAOR.com Monday - Friday, 9am-5pm Saturday, 9am-1pm 24/7 text support :

Text DAOR (562) 659-6730 Volume 6 - Issue 3

This publication is printed quarterly, delivered March, June, September & December

Education Center

12069 Paramount Blvd Downey, CA 90242

Page 1 Five Elements of a Great Business Plan Page 2 Free Shred Day Event Page 3 Greater DAOR 2020 Benefits Page 4 iBuyer Footprint article 1

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Page 5 New Law 2020 Page 6 Annual Chili Cook off 2019 Page7-8 October Luncheon w/ Clint Pardoe Page 9 Reimagine Los Angeles Page 10 iBuyer Footprint Article 2 Page 11-13 Christmas Installation Luncheon Page 14 AIA Luncheon Page 15 New Laws 2020 Page 1 REALTOR Awards

2019 COMMITEES

Budget & Finance Committee Jason Cierpiszewski, Chairperson

Professional Standards Committee

Ernie Sifuentes, Chairperson

LCRC Trustees

Michael Berdelis, Chairperson

Oversight Committee

Vicki Spearman, Chairperson

Affiliates In Action Committee

Gloria Navarro, Chairperson

Scholarship Committee Roman Meza, Chairperson

Grievance Committee

Edwin Acevedo, Chairperson

Like and follow our Facebook and Instagram Membership/MLS Technology Committee

ON THE COVER

Lourdes Galvez, Chairperson

REALTORS Advocating for Political Progress

Jennifer Avellan, Chairperson

REALTOR Community Relations Committee

Ruben Sarinana Jr.

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Daniel Andrade, Chairperson

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This is an annual event that Greater DAOR schedules for you. It is a free event and can save you lots of money.

Please join us in 2020 PAGE | 2 2 DAOR

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By Brian Bair

T

he landscape of real estate today look increasing diversified as new, tech-driven companies are entering the market and offering additional services to home sellers and buyers. Now, there are multiple real estate tech players—some similar, some distinct— offering something that generally hadn’t been available in real estate before: a direct sale and simplified purchase.

estate tech impact that is taking shape nationwide.

OPERATING IN LIMITED MARKETS

Though this tends to be a big news topic to industry professionals and active home sellers and buyers, the reality is that iBuying companies are currently operating within a limited number of markets around the country and now command a relatively small portion of market share within those areas of the country. Last year, iBuyers accounted for less than 1% of home trans-actions These PropTech companies— in the United States. The reason such a referred to as iBuyers due to their relatively small-impacting move-ment specialties in near on-demand, is getting so much attention, how-ever, tech-enabled home buying—are is because the real estate industry has known for leveraging modern never experienced this kind of shift tech and connectivity to buy and before—the technological upgrade sell homes. These companies have many industries have already received. launched with significant public Many anticipate that this express awareness over the past five years; version of home selling will continue to as they grow in volume and their increase significantly in popularity and footprint in the industry widens, value to consumers over the coming their offerings continue to mature beyond the novelty they introduced years.

Most consumers are buying or selling consumers to direct home buying where iBuying capabilities are not for ease and convenience. yet available. But maybe the topic is gaining disproportionate traction A testament to their success, even industry-leading organizations like beyond the number of consumers they currently serve because it has the Kelle rWilliams, are joining the potential to scale and secure a more movement. Consumers, investors, like-minded companies, and others significant share of the national market.

The demand for the iBuyer solution is are taking notice and starting to proliferating. It’s already changing the get involved to leverage the real

way homes are sold and purchased– even among traditional organizations.

PHOENIX IS iBUYER HOTSPOT All the major players in this niche currently share the same 20 metro areas in the United States, where the iBuyer option is available today.

Of those markets, Phoenix has become known as the iBuyer hot spot. It is where iBuying began five years ago, and where consumers are most aware of this option. More than 5% of home transactions in 2018 were conducted by iBuyer companies there. Phoenix’s housing market could also be contributing to the greater iBuyer market share in the metro, as well as the type of buyer in the area, and many other factors. If time alone is the crucial element, we can expect other iBuyer markets to reach this level of popularity within the next few years.

Consumers may wonder why these companies are all competinvg in the same markets, while the majority of home sellers and buyers nationwide do not yet have them as an option. As the iBuyer niche is still being refined, these organizations tend to find that specific markets are best for their services and optimized capabilities.

To be Continued.. Pg.10 PAGE | 4 4 DAOR

New laws Courtside Real Estate Newsletter

The California legislature passed a series of new laws which Real Estate Broker and Agents should be aware of as the industry moves into the new-year. While a majority of the laws go into effect on January 1, 2020, some laws became active as recently as September 2019. Thus, it will be important to quickly assess your practices to determine if you are complying with the new laws.

Administrative regulations are sure to follow. These laws are briefly addressed here for purposes of providing an overview of some of the important laws for the coming year.

AB 1482 Rent Control As many know, California recently passed one of the most restrictive state-wide rent control laws in the nation. The purpose of the law is to provide additional protections for tenants through the limitation of rent increases and through the enactment of just cause evictions, subject to exceptions. Importantly, the rent control caps are retroactive to March 15, 2019.

Thus, property managers, owners, and Sublessors should independently research or contact legal counsel to determine the status of their property and applicability of rent control.

AB 5 Independent Contractors While AB 5 started out as a potential hurdle for the real estate community, PAGE | 5 5 DAOR

the codification of Dynamex ended in victory thanks to C.A.R. lobbying efforts, as the legislature carved out specific exceptions for real estate licensees, permitting them to selfdesignate as independent contractors under the provisions of the Business & Professions Code. Significantly, brokers under AB 5 are also provided with some clarity regarding the limits of their control in exercising their supervisory duties over licensees. Similar to the acts taken after the Dynamex holding, brokers will want to ensure that their licensees’ contracts comply with the Business & Professions Code.

Although the law provides some positive news for the real estate community, it also establishes that, by default, administrative and non-licensed workers are employees. Thus, it will be important to assess the status of administrative non-licensees as well when entering into the new-year.

AB 68, 670, 881 Accessory Dwelling Units In furtherance of the California legislature’s attempts to combat the housing crisis, the legislature passed AB 68, 670, and 881 to address Accessory Dwelling Units (“ADU”). Under the combination of bills, cities, subject to exceptions, must approve ADU applications, cannot require the owner to live on the property, cannot charge impact fees, and cannot prevent the concurrent development of an ADU at

the same time as the primary unit.

Similarly, the bills prevent Home Owners Associations (HOA’s) from preventing or disallowing the construction of ADUs within the Association. While these laws are subject to exceptions, cities and HOAs are effectively given the obligation to permit ADUs, including some garage conversions. If a client is considering adding an ADU, agents will want to assess the local ordinance, HOA rules, fire setbacks, and advise the client to seek legal counsel to ensure the building would otherwise comply with the law.

AB 1110 Rent Notice Increases In the event that AB 1482 does not Vapply to a particular property, the newly enacted AB 1110 requires a 90 day notice if the landlord of a monthto-month tenancy increases the rent by more than 10% of the rent charge to the tenant annually. The new noticing requirements will be important for property managers to keep in mind as they move through 2020 and beyond, and only applies for rental properties exempt from AB 1482.

To be Continued.. Pg.15

GREATER DAOR ANNUAL CHILI COOK OFF

First Place | Century 21 A Better Service Second Place | KW Pacific Estates La Mirada Third Place | Century 21 Peak Members Choice | KW Pacific Estates La Mirada Cutest Booth | Keller Williams SELA

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July LuncheonOCTOBER with

LUNCHEON

Clint Pardoe

Greater DAOR members got together for the third quarter Members Luncheon. The special guest speaker at this event was Clint Pardoe - A former Communication Professor turned Business Coach, Clint Pardoe is a Speaker and Coach to REALTORS. Clint has successfully spoken at the local, state, and national level at real estate companies, events, and associations throughout the United States. We were delighted and enlightened by Clint’s speach.

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Top Qtr producer award 3rd Top Producers Awards

“I would ask people who are high achievers and ask them what

motivated them to keep on going, and the number one response that I heard was “I write my goals down.”

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Greater DAOR was presented with $1000 to our chose of charity, The MaryVale Orphanage, which was received from CAR for being the #1 Influential Association in expo registrations.

Let’s Talk Today! Se Habla Español

Alex Ascencio Divisional Manager

NMLS#244230 | CA BRE: 01302752

O: 562-861-1414 | C: 562-413-1087 aascencio@afncorp.com www.alexascencio.afncorp.com

*Not available in all areas. American Financial Network, Inc. is not acting on behalf of or at the direction of HUD/FHA or the federal government. Borrowers must continue to make property tax, insurance, and other maintenance payments in order to avoid risk of default. American Financial Network, Inc. is licensed by the California Department of Business Oversight under the California Financing Law License (60DBO49916) and holds a CA Bureau of Real Estate, Real Estate Broker’s License (01317581) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 242234. Broker is performing acts for which a license is required. Loans made or arranged pursuant to California Financing Law. Refer to http://www.nmlsconsumeraccess.org/ and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (909) 606-3905 (NMLS ID#237341). This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR 1026.2(a)(2). This information is not intended for consumers and may not be duplicated or disseminated to the public.

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By Brian Bair

PHOENIX IS iBUYER HOTSPOT All the major players in this niche currently share the same 20 metro areas in the United States, where the iBuyer option is available today.

Of those markets, Phoenix has become known as the iBuyer hot spot. It is where iBuying began five years ago, and where consumers are most aware of this option. More than 5% of home transactions in 2018 were conducted by iBuyer companies there. Phoenix’s housing market could also be contribu-ting to the greater iBuyer market share in the metro, as well as the type of buyer in the area, and many other factors. If time alone is the crucial element, we can expect other iBuyer markets to reach this level of popularity within the next few years.

Consumers may wonder why these companies are all competing in the same markets, while the majority of home sellers and buyers nationwide do not yet have them as an option.

As the iBuyer niche is still being refined, these organizations tend to find that specific markets are best for their services and optimized capabilities.

ADVANCES IN iBUYING The iBuyer solution provides value to consumers when they can make competitive home offers quickly and efficiently. Algorithms, numerous data points, as well as real estate expertise, determine a

competitive offer. These home buyers issue competitive offers in as fast as 24 hours. When this technology was first developed, it was helpful that homes were in homogenous markets with little variety. Now that abilities in iBuying have expanded, the most successful businesses (now using local professional expertise to make home offers) can serve neighborhoods where homes are more diverse.

Still, we see that the iBuyer offering is most heavily available in the southern parts of the country. Generally, where companies offer the instant cash offer, there is a substantial volume of newer home inventory—places where homes are bought and sold frequently.

These home-buying companies tend to operate on small margins, so allocating resources in markets where they are likely to have high volume is imperative. A critical factor in the property purchase price for these companies is the data surrounding recent real estate activity in the area. It accounts for similar homes in the same neighborhood, as that information can be used in making competitive offers.

Currently, most compa¬nies offering the iBuyer solution purchase singlefamily homes built after 1960 with common sizes and features that are on lots no larger than an acre.

While the parameters may seem narrow, houses with these qualities represent the majority of homes people are buying and selling today. At least for now, the iBuyer solution is focused

on the most common properties to become available to as many people as possible in their markets. As this model and the capabilities of these companies have become more sophisticated, some are beginning to expand their product offerings to provide more for the general population of real estate consumers. iBUYER OPTION EXPANDING With the iBuyer option developing, and as participating companies continue to adapt and offer more of what consumers want, their footprints around the country will continue to grow. It’s only a matter of time before all home sellers and buyers have the option to use the innovative solutions from these real estate tech innovators, wherever they are, to enjoy more streamlined home sales and purchases that promise certainty and control.

Brian Bair, Offerpad founder and chief executive officer is one of the most successful residential real estate agents in the United States. In 2017, Brian was awarded the Most Innovative Real Estate Agent of the Year by Inman, and REAL Trends + Tom Ferry The Thousand, as advertised in The Wall Street Journal named him the second highest-performing real estate agent in 2014 and 2017. Brian previously served as co-founder and managing partner of Lexington Financial, LLC, and Bridgeport Financial Services LLC.

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Christmas

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Luncheon

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Leadership Installation December 18, 2019

2019 Leaders were uninstalled and thanked for their service and the 2020 Leaders, installed by Steve Roberson were: Michael Berdelis, President Elect; Jennifer Avellan, Vice President; Jose Perez, Treasurer; Directors Edwin Acevedo, Jesus Guerra, Maria Lilley, Mireya Ruiz, Carrie Uva, Tyler Wirth, Jeff Worthy and Immediate Past President Dan Nevarez

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AFFILIATEs IN ACTION

AIA

Our Awesome Affiliates in Action Celebrating the Holiday with each other and treating REALTORS to a thanksgiving luncheon.

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2020

By: John V. Giardinelli, Attorney at Law Cody J. Bellmeyer, Attorney At law

AB 2343 Unlawful Detainer and Notice Periods Similar to AB 1110, AB 2343 is another noticing law for property managers. However, AB 2343 is already effective. In summary, AB 2343 changes the way the notice period is calculated for purposes of notice periods and unlawful detainers. In effort to protect the tenants from creative landlords, the legislature passed AB 2343 to exclude judicial holidays, such as Saturday and Sunday, from the calculations for purposes of three (3) day notices as it relates to unlawful detainers.

SB 18 90 Day Notices The Senate bill acts to eliminate the previous sunset date of the notice law which requires tenants to be provided with at least 90 days’ notice before the termination of a tenancy if the property is foreclosed.

SB 329 Housing Discrimination

installation of a battery backup for the opener when a new door SB 329, in application, requires is installed or when the existing landlords to accept Section 8 housing opener is replaced. Agents will from an otherwise qualified tenant. want to keep this in mind as they The new Senate Bill aims to expand advise and counsel clients in the discrimination protections on the purchase or sale of homes. basis of source of income and aims to provide additional protection for REALTORS® should keep tenants who rely on assistance to an eye out in early December obtain housing. Under SB 329, a (approximately December 3rd) for landlord who discriminates against a C.A.R.’s new and revised forms tenant receiving housing assistance, to address some of these changes such as Section 8, will be subject to in the laws and ensure they are additional liability. Thus, landlords using the appropriate forms going and property managers should assess into January 2020. If you have any their policies to ensure compliance. questions relating to the potential application of any of the laws SB 969 Battery Backups for included above, please contact Garage Doors our office. In a year where the legislature passed hundreds of laws, SB 969 is unique in that it became legal counsel will be important as effective July 1, 2019. Thus, it is these laws often overlap already effective. Under SB 969, and relate in unpredictable automatic garage doors must include ways. Thus, legal counsel can be a battery backup to provide power beneficial as brokerages, property in the event of a power outage. It managers, and REALTORS® is important for homeowners and navigate through 2020. real estate agents as it requires the

Adriana Solis

President / Escrow Manager Telegraph Escrow Inc 9519 Telegraph Road, Suite G Pico Rivera, CA 90660 PAGE | 15 15 DAOR

Phone : 562-825-3000 Fax : 562-825-3002

GREATER DAOR

Michael Berdelis 24 Hr Real Estate Recipient of the Distinguished Service Award, DAOR Highest Award Given

Veronica Gutierrez Pacific Escrow 2019 Affiliate of the Year

Vicki Spearman Honorary Member for Life From the California AOR

Ericka Saenz C21 A better Service Volunteer of the Year

Receiving their 25 year REALTOR® pin Candy Capi & Vicki Holland

Mario Acevedo KWPELM Influencer of the Year 2019

Jesus Guerra C21 A Better Service Volunteer of the Year

Receiving their 30 REALTOR® Pin Lourdes Cotaya, Teresa Pulido, Dan Nevarez ,Sossi Gabriel and Ruben Sarinana Jr.

Monica Rivera KWSELA Tomorrow’s Leader Today Award Winner

Rob Marin KW Larchmont Community Volunteer of the Year 2019

Receiving their 20 REALTOR® Pin Karina Veliz , Karen Barradas, Michael Berdelis & Gil Legaspi

2019 DAOR Chairpersons Gloria Navarro-Affiliates in Action Daniel Andrade-Realtor Community Relations, Mirriam Villanueva-Association Chaplain, Jason Cierpiszewski-Budget and Finance, Tyler Wirth Local Government Relations,Lourdes Galvez-MembershipMLS, Edwin Acevedo-Grievance, Mireya Ruiz CAR State Director and Issues Chair, Roman Meza- Scholarship

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