January February 2015 OC Realtist Magazine Prototype

e

yp

ot

ot

pr

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

facebook.com/realogy

CONTENTS: Mission and Vision of the PIN Magazine ................................................(page 5)

FINANCIAL How Lender Mandated Credit

THE POWER IS NOW INC.

Overlays the Mission of GSEs.................................................................(page 10)

Vol. 02 | Issue 9

Discount Brokerages................................................................................(page 12)

Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 Eric.Frazier@ThePowerIsNow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow

EDITORIAL TEAM Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Diane Ting General Manager (800) 401-8994 ext. 707 diane.ting@thepowerisnow.com Dori Pinkerton Managing Editor (800) 401-8994 ext. 707 dori.pinkerton@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com

CONTRIBUTORS Darren Johnson, Eric Lawrence Frazier, The Power is Now Research Team

Real Estate Market Trends: Property Purchase by Foreigners Continue to Set the Trend .......................................................................(page 16) The Possibility of Another Financial Crisis...........................................(page 18)

REAL ESTATE October 2014 Purchase Applications......................................................(page 26)

THE CEO CENTERFOLD Keith Murray............................................................................................(page 30)

COMMUNITY Using Renewable Energy Resources.......................................................(page 32)

BUSINESS The Falling Unemployment Rate............................................................(page 36) Jobless Claims for October 2014.............................................................(page 40) HOA Foreclosures and Effects on First Mortgages...............................(page 42)

TECHNOLOGY Technology Used in Real Estate .............................................................(page 44) How Social Media Has Changed the Face of Buying and Selling Mentality.....................................................(page 48) Software Real Estate Agents Can Use ...................................................(page 50)

PERSONAL DEVELOPMENT Goal Setting Versus Goal Achievement..................................................(page 54)

The Orange County Realtist Magazine is an Online and eZine publication of the Orange County Realtist a Chapter of The National Association of Real Estate BrokersÂŽ (NAREB).

The magazine is published and distributed by The Publishing division of The Power Is Now Inc. and has ten sections focused on the real estate market, economics in Orange County and the Realtist members that serve the community. The mission of the OC Realtist Magazine is to educate consumers and real estate professionals about the opportunities to buy or sell real estate in Orange County and to spotlight professional real estate agents who are Realtist.

to non-profit organizations, and community organization who are supporting the welfare of the citizens of Orange County and are affiliates of the OC Realtist.

The Digital Online subscription will launch in April and will provide the best of the Orange County Realtist Magazine in an all-digital format.

With the Orange County Realtist Magazine, readers can have access to archived back issues as well as brand new content online. Videos, online radio, webinars and other events provided by the OC Realtist will be available to empower its readers with information to achieve the American Dream. We go go digital with the Orange County The magazine is free and is distributed by Realtist Magazine in April email and online to members of our local chapter and NAREB chapters nationwide, over 30 The OC REALTIST MAGAZINE - The thousands real estate professionals in Orange American Dream County, our state, federal and local city political representatives in each of the 34 cities in Orange The Orange County Realtist Magazine features County, non-profit housing organizations, church articles about real estate in Orange County and leaders in Orange County, and many affiliates of informational interviews with local and national our chapter: OC NAACP, OC Black Chamber, community leaders, real estate agents, banking OC 100 BMOC and others will receive the and investment professionals, and community. magazine.

The Orange County Realtist Magazine also provides consumer focus content about buying In addition, our own email list of consumers and or investing in real estate, financing real is growing every day because of our community estate and maintaining and protecting real estate outreach. The list will continue to grow because as an assets for years to come. The magazines of the importance of home ownership and the focus is on all aspect of buying or selling real strong support we have in the community to help estate from a consumer’s perspective because it others achieve it. We want the magazine to be a is still the American Dream. tremendous value to our members, a great resource for our community, and tremendous value to our advertisers as an affordable advertising strategy to a target market interested in real estate as a home or investment. The Orange County Realtist magazine will also provide free advertising

january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

4

Mission The mission of the Orange County Realtist is to provide support and education for its members to grow and expand their businesses while assisting the community to achieve the American dream of homeownership

Vision The vision of the OC Realtist is to become the largest Chapter of NAREB in the United States of successful Realtist速 whose businesses are thriving from the support they receive from the chapter and the networking opportunities that exist by their affiliation with National Association of Real Estate Brokers

Departments 1. OC Real Estate Market 2. OC Real Estate Resources 3. OC Real Estate Investing 4. OC Realtist Spotlight 5. OC Real Estate Financing 6. National Association of Real Estate Brokers News 7. California Association of Real Estate Brokers News 8. OC Realtist President message 9. OC Real Estate Business and Economic 10. OC Real estate laws and legislation

Cover and Feature story profiles: The OC Realtist Cover will never be sale as it will be our way of recognizing Realtist in Orange County and all over the United States who exemplify the Realtist spirit. The Online magazine and eZine will have 10 sections for various articles under the OC Realtist theme: OC Real Estate Market, OC Real Estate Resources, OC Real Estate Investing, OC Realtist Spotlight, OC Real Estate Financing, National Association of Real Estate Brokers News, California Association of Real Estate Brokers News, OC Realtist President message, OC Business and Economic, OC Real estate laws and legislation. The writers for each department will be industry professionals who are practitioners in their field of expertise. We are bringing the best practitioners in the industry to share their knowledge and experience in their field of expertise. They are industry professionals who can provide advice, and information to make decisions that will enable consumers to achieve the American Dream.

5

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

Magazine General Information

Orange County Realtist Magazine All deadlines are non-negotiable and OC Real Estate Magazine is not responsible for incorrect artwork submissions or missed deadlines. Contribution of an article does not commit OC Real Estate Magazine to publication or acceptance and contributions will be assessed on a case-by-case basis.

Deadlines Space reservation and materials are required one month prior to publication in OC Real Estate Magazine. OC Real Estate Magazinedeadlines are based upon contract terms and artwork approval.

Cancellation Cancellation of any portion of a contract voids all rate and position protection. OC Real Estate Magazine reserves the right to repeat the last standing ad or charge for the space reserved if an acceptable copy and design are not received by deadline. Cancellations, by written communication, are permitted only before space-reservation deadline. Cancellations made afterward will be billed at full rate.

Submitting Materials Please send all ad submissions and questions to info@thepowerisnow.com or goldy.ponce@thepowerisnow.com OC Real Estate Magazine reserves the right to change all editorial and subject matter.

january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

6

Magazine General Information

Production charges: Chargeable items include: conversion of digital files, resizing of an ad to meet our specifications, deletions, typography, retouching, color separations, and any handwork necessitated in order to meet our quality standards. Materials once received will not be released before the on sale date for that issue. All work done by our production department will be billed to advertisers at prevailing rates.

Are you an expert? Would like to contribute with an article in any of the following departments?

Departments: 1. OC Real Estate Market 2. OC Real Estate Resources 3. OC Real Estate Investing 4. OC Realtist Spotlight 5. OC Real Estate Financing 6. National Association of Real Estate Brokers News 7. California Association of Real Estate Brokers News 8. OC Realtist President message 9. OC Business and Economic 10. OC Politics and Real estate laws and legislation Email us to eric.frazier@thepowerisnow.com or eric.frazier@ocrealtist.org

7

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

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 General Manager: Diane Ting Managing Editor: Doreen Pinkerton ONLINE Web Designer: Abhinav Raj DESIGN Art Director & Design Manager: Goldy Ponce Graphic Artist: Mario Lujan ADMINISTRATIVE Administrative Assistant: Rachel Bacol

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/onlinemagazine www.thepowerisnow.com/ezine PUBLICATION AND SERVICES The Orange County Realtist Magazine The PIN Magazine The Power Is Now Radio The Power Is Now Publications 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 OC Realtist Magazine TM is owned and published electronically by The Power Is Now Inc. The Power Is Now Inc. has entered into joint venture with the OC Realtist for the design, publication and distribution of the Magazine.

Copyright 2013-2015 The Power Is Now Inc. All rights reserved. The name Orange County Realtist is a trademark of the Orange County Realtist Inc. A chapter of the National Association of Real Estate Brokers.

“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

FINANCIAL

How Lender-Mandated Credit Overlays Undermine the Mission of the GSEs Imagine that you’re a borrower with a credit score of 580 or worst yet no credit at all. You have what the Lenders call alternative credit (rent, utilities, cable & phone bill and etc.). You are employed with a qualified debt to income ratio and have saved a down payment of at least 3.5% and maybe some of your closing cost.

On paper, you seem like a perfect candidate for an FHA loan. However, your lender denies your loan application because of your low FICO score or because you do not have a FICO score. Even though you have met the U.S. government’s requirements for getting an FHA loan, your lender declines to approve your loan because of their credit overlays. This scenario is being played out every single day at all the major banks, credit unions and many mortgage banks. Who is in charge of the guidelines and parameters by which banks can lend? Are the additional credit requirements legal or discriminatory based on federal law? I believe that credit overlays are discriminatory and possibly illegal.

What Is a Credit Overlay?

Lender credit overlay requirements demand that borrowers have higher credit scores than what the federal government requires. In other words, bank requirements for credit scores exceed what a government-sponsored enterprise (GSE) like Freddie Mac or Fannie Mae or HUD mandates for mortgage loans. While some lenders defend their right to focus on a credit score as evidence that a borrower can repay a mortgage, HUD challenges banks to examine january | february 2015 issue

the totality of a borrower’s qualifications beyond just the credit score.

Credit overlays charged by lenders often disqualify borrowers from receiving mortgages.

The National Community Reinvestment Coalition has filed a complaint with HUD alleging that at least 22 lenders that administer FHA loans violate the terms of the Community Reinvestment Act, the Fair Housing Act and the Equal Credit Opportunity Act. Critics allege that credit overlays disproportionately deny AfricanAmerican and Latino borrowers access to FHA mortgages.

How Borrowers Can Fight Back?

Some organizations, like e21 (Economic Policies for the 21st Century) have demanded that Freddie Mac and Fannie Mae transition from GSEs into private organizations. In this new role, the two mortgage backers would purchase conforming mortgages and then bundle them into securities that would become eligible for government backing. As GSEs, Freddie Mac and Fannie Mae have pursued private profit while backed by the full faith and credit of the U.S. government. GSE standing allowed Freddie Mac and Fannie Mae to take excessive risks.

On one hand, Freddie Mac and Fannie Mae pump secondary liquidity into the mortgage market, making it possible for many Americans to receive home loans. On the other hand, Freddie Mac and Fannie Mae receive minimal government scrutiny, and they fail to deliver benefits to American families that need the most help. Instead of imposing strict credit

The ORANGE COUNTY Realtist Magazine

10

FINANCIAL

score requirements, lenders that work with Freddie and Fannie should consider the factors that contribute to lower credit scores. Lenders should also consider other factors including debt-to-income ratios and future job stability.

Recent changes in the HUD guidelines are a step in the right direction, but will lenders adopt these changes in their underwriting guidelines?

Lenders need to decide if they want to be intermediaries of the GSEs & HUD and if they are prepared to have the reserves necessary for delinquencies, repurchases and foreclosure.

It is a part of the business that is never going away and not every Lender is prepared or able to manage the risk. Lenders that are prepared should get all the business and those who are not should consider getting out of the business of securitized lending and relying on government guarantees and liquidity.

There is private equity market waiting for lenders who want to make up their own rules. It is called Private Banking or Private Equity and is already a business channel in most banks. It is not fair to American people for banks to change rules mandated by congress and the GSEs. If a bank changes the rules, the bank should not be able to leverage the good faith and credit of the American taxpayer who pays for the guarantees and the GSEs that create the liquidity and the secondary market. Either makes loans according the guidelines set forth by FNMA, FHLMC, HUD, and GINNIE MAE or move into the private banking and equity market where you belong and make up your own rules.

It is clear to me that credit overlays that include fico scores are just as unreliable as the credit ratings by Standard and Poor’s, Fitch and other credit rating agencies. A closer examination of the risky loans that banks and the secondary market originated because of a high fico scores and were sold in the bond market because of Triple A ratings by Credit Agencies should give us all reason to pause. These ratings represent an opinion that was baseless and blew up the secondary market. At least it was human

11

error and fraud. Why hasn’t FICO been hauled in before congress and ordered to open up the black box and tell the American people why their FICO is worth more than the paper it is written on? Why should the entire US Lending and Banking system rely on it when it has failed us so miserably in the past? No one is asking the question. We need to go back to the basics when FICOs didn’t exist and rating agencies actually reviewed most of the loans that made up the bonds instead of getting paid for Triple A ratings.

The corruption, zero oversight, greed and fraud that existed during this time between the rating agencies, banks and investment banks was on a level of a third world country being ran by drug and gang lords in three piece suits. A new kind of gangster that no one thought was possible emerged. This is now common knowledge and nothing has been done about it. No one has gone to jail over this incredible secondary market Ponzi scheme wear nothing was real except the families in the homes foreclosed on. This was truly gangster activity at the highest levels of business and it is how real gangster rolls. Real gangsters rarely see the inside of a jail cell.

Whitepaper Coming Soon

To learn more about credit overlays and how they undermine the government’s mission to enable low and middle-income Americans to purchase housing, read the whitepaper I am writing that will help real estate and lending professionals address this issue with their representatives in congress and mortgage banking executives. The whitepaper will be release in the next two weeks.

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

FINANCIAL

Discount Brokerages

The Real Estate Industry May Be Doomed!

Have you seen this article in Housing Wire? If this keeps up we are all doomed. Discount Real Estate Brokerages are the Evil in our midst. The mortgage industry has these discount players too unfortunately. I am so happy I am in the 4th quarter in my career because the future is not bright. I am not sure if loan consultants or real estate agents will be able to make a living full time in this industry.

There are lenders who have established discount shops to essentially eliminate the need for a loan consultant.

All they need is a processor and underwriter. They pay

january | february 2015 issue

them very little money and charge the borrowers a flat fee. They make their money on the service release premium and ancillary services. It is a volume strategy that will fail when the volume stops and the cost remains the same or keeps rising. They will be out of business or working out of their homes soon. But in the mean time the competition they bring is making it tough for everyone to make a living. In the end we all lose, the industry is marginalized and no one can make a living.

The real estate industry is being decimated by 1% brokers and wholesale shops. They are The ORANGE COUNTY Realtist Magazine

popping up every day. I know there are some 1% brokers who are going to read this blog and be angry but it is the truth and I would like to hear from them. They are destroying the Retail Real Estate Industry and eventually we will see a mass exodus of talented agents from the industry. Many have already left and more are leaving because the competition discount brokers bring is driven by the commission rate as if there is no value in anything else but the commission rate.

The income is not worthy of the time and effort required at 1% unless you are willing to work 6 times as hard for

12

FINANCIAL

significantly less money. This has been happening for years and no one is doing anything about it. Where is NAR on this issue? There are people in the Real Estate industry who do not believe in real estate as a profession like medicine or law or accounting. Doctors or Lawyers or CPAs are not dealing with these issues in their idustry at the same level as agents are in the real estate industry. There are real estate industry entrepenuers, like the company in this article, that have very little respect for agents and brokers. They also think to many real estate professionals are people who can’t do anything else but sell real estate so why not pay them a token commission on an 1% brokerage fee. Are agents

really not worth much more than that?

What profession can you think of that is under attacked by its own industry and consumers? Agents are constantly asked to reduce their commissions or waive commissions all the time.

Discount brokerages are starting everyday and are trying to appeal to the consumer about saving money while at the save time marginalizing the value of real estate agents and destroying the industry.

Agents are being circumvented by sellers and sometimes their own family members and friends. Too many people in our industry see a house as just another widget, or commodity that requires little time, effort or skill so why not

sell it at 1%. I believe you get what you pay for but this movement is gaining ground.

Many consumer are naive and are falling for these diabolical schemes. In the end the house doesn’t sell any faster unless the price of the home is discounted also. It probably takes longer to sell because who is really going to work very hard for 1%? I don’t have the data to know if discount brokerages sell properties faster than traditional brokerages, but I am going to find out.

Does anyone have the answer?

Please tell me what you think?

Dive deeper and discover a complete list of solutions at PEMCO-Limited.com

Sample Services Premarket Services Compliance Oversight Due Diligence Vendor Management Closing Facilitation and Management Program and Inventory Marketing Services Sales and Homebuyer Education Property Preservation Property Management Real Estate Sales Facilities Maintenance

FINANCIAL

Gross Domestic

Product and Corporate Profit Report for

The Bureau of Economic Analysis reports corporate profits quarterly. This report provides summary information about the income of corporations listed on the national income and product accounts. The summary information includes reports on several different measures of profit that includes: • Economic or the operating profits derived from current production; includes inventory valuation and capital consumption adjustments for differences in depreciation allowances for accounting and income tax reasons

january | february 2015 issue

• Book profits or the operating profits minus any inventory valuation or capital consumption adjustments • Net profits or the profits after taxes This report provides important insights for investors and for economic performance because when corporate profits are strong, capital spending increases. Generally, when corporate profits are strong and healthy, it indicates a favorable environment for investors. Investors watch the corporate profit reports as an indicator of corporate activity, stability, and liquidity.

They also look for potential signs of inflationary

The ORANGE COUNTY Realtist Magazine

14

FINANCIAL

pressures, which can occur when investment spending increases.

In the November 25 BEA report, corporate profits with inventory valuation adjustment and capital consumption adjustment grew by $43.8 billion during the third quarter.

The value of the production of goods and services in the U.S.grew at an annualized rate of 3.9% according to the second estimate by the Bureau of Economic Analysis. This figure represents a decrease from the second quarter rate of 4.6.

During the third quarter personal consumption spending and non-residential fixed investments increased more than estimated. Private inventory investments decreased, but less than estimated in the October report. Exports increased less than previously estimate while imports decreased.

PCE, nonresidential fixed investments, federal government spending, exports, residential fixed investment, and state and local government spending all contributed positively to the increase in real GDP. The price index for gross domestic product purchases measures how much people pay for products. This index gained 1.4% during the third quarter, a slow down the 2% increase observed during the second

15

quarter.

The gross national product or the total value of all the goods and services produced by labor and property supplied

by U.S. residents went up 3.8% during the third quarter.

Gross domestic income is a measurement of the value of goods and services in the U.S. in terms of the costs incurred to produce the goods or service and the income earned on that production. This index saw a gain of 4.5% during the third quarter over the 4% figure reported for the second quarter.

Domestic financial corporation profits increased by $20. 3 billion in the third quarter which was a decrease from second quarter performance of $33.3 billion. Profits for domestic nonfinancial corporations rose $22.5 billion as compared to an increase of $134.3 billion in the second quarter.

During the third quarter, taxes dropped $4.8 billion on corporate income. This is astark contrast to a second quarter increase of $45.7 billion. The after tax profitsgrew by $48.6 billion. Dividends decreased $3.9 billion during the third quarter while undistributed profits rose $52.5 billion. Net cash flow or the amount of internal funds available to corporations for investment increased a mere $25.1 billion this third quarter as opposed to a second quarter increase of

The ORANGE COUNTY Realtist Magazine

$133.4 billion.

Pretax corporate earnings climbed 2.1% and were up 0.4% from the same period last year. There was more good news on business investment.

Business investments increased at an annualized rate of 6.2%, rather than the previously estimated annualized rate of 4.7%. This improvement reflected increased spending on new equipment.

Overall, Pennsylvania corporations appear to have performed well, most reporting increases in corporate profits for the third quarter.

Pennsylvania corporations like Royal Bank America are following the general corporate profits being seen across the nation. Steady increases in earnings, net income, interest margins, and declines in expenses are fundamental to helping Pennsylvania businesses create sustainable growth and continual improvements in financial results.

Despite a generally shrinking workforce, employment is improving and salaries continue to increase, which in turn bolsters Pennsylvania consumer confidence and spending. This helps Pennsylvania stay in step with national corporate earnings trends. Hopes remain high for a solid fourth quarter performance based on increases in retail sales for the holiday season.

www.OCREALTIST.org

FINANCIAL

REAL ESTATE MARKET TRENDS: Florida, Texas, Arizona, and California account for 55% of the total number of reported real estate purchases by foreign buyers. The industry’s adage states that all real estate is local, however, the current real estate report released by the National Association of Realtors (NAR) indicates that a notable amount of home purchases are made by people residing outside the U.S. The total international sale estimates for the period April 2013 – March 2014 were $92.2 billion, an increment from $68.2 billion from the previous corresponding period.

About 60% of the reported international transactions in 2014 were entirely cash, compared to 1/3 of

january | february 2015 issue

domestic purchases.

This is according to NAR 2014 Profile of International Home Buying Activity.

Steve Brown, NAR President and co-owner of Irongate, Inc. Realtors in Dayton, Ohio reported in a statement that the reason why foreign buyers are attracted to U.S. real estate is what they acknowledge as economic stability, irresistible process, and astounding investment opportunity for their future.

The top five cities with the most number of searches online by international buyers are New York City, Las Vegas, Orlando, Los Angeles, and Miami, according to Realtor. com.

International buyers

The ORANGE COUNTY Realtist Magazine

originate from all parts of the world.

The United Kingdom, China, India, Mexico, and Canada accounted for 54% of foreign sales as stated in NAR’s report.

Canada retains the largest share of purchases with a drop from 23% in the year 2013 to 19% in the year 2014.

Nonetheless, China grasped the forefront in dollar volume buying approximately $22 billion with a median sale cost of $590,826.

The report finds that European buyers are usually attracted to states with warmer climates while Indian buyers gravitate towards states that have large information technology companies such as North Carolina, New

16

FINANCIAL

Property Purchase by Foreigners Continue to Set the Trend York, and California.

In the year 2013, New York and London were the top performing luxury markets as stated in the most current International Real Estate Report

by Christie. The extension in the luxury sector has been steered on three fronts by millennials, foreign investors, and locals, with most buyers focusing on cities.

Affordable home prices, suitable exchange rates, and expanding wealth abroad continue to spearhead international buyers to the U.S. to purchase homes and conduct real estate investments. Approximately 28% of Realtors are reported to be working with international clients this year. International sales are usually handled by specialists. Only 4% of those reported to have international clients had 11 or more international transactions in 12 months. Approximately 54% of those reported to have international clients recorded that their international transactions accounted for 1% - 10% which is a decline from 2013, but still at par with last year’s levels.

In comparison to domestic buyers, international buyers are more likely to make all-cash purchases. A major problem for international clients is mortgage financing due to lack of a Social Security number, lack of a U.S.based credit history, challenges in documenting financial profiles, and mortgage requirements that vary from those usually received from domestic residents by financial institutions.

International buyers who prefer to work with a Realtor have a significant advantage. This is

17

in part because Realtors who have concluded the Certified International Property Specialist classification have acquired specialized training and are well equipped to aid clients with the distinctive challenges of being an international buyer. Designees of CIPS comprehend the difficulties buyers are faced with when buying property in the U.S. and have the expertise and experience to aid them helm the multiplex, overwhelming and time-consuming world of international real estate.

Realtor.com being NAR’s official property website enhances exposure of U.S. properties to the global market, which may have greatly contributed to the increased numbers of international buyers in the U.S. In addition, it has aided Realtors expand their business globally.

NAR’s ‘The Voice for Real Estate’ is the largest trade association in America, representing 1 million members included in all areas of commercial and residential real estate industries.

References http://millionairecorner.com/Content_Free/Real-estate-markettrends.aspx http://www.realtor.org/news-releases/2014/07/internationalhome-buyers-continue-to-invest-in-profitable-us-marketrealtors-report https://www.linkedin.com/today/post/article/2014071013423829153009-real-estate-market-trends-international-homebuyers-cashing-in-on-u-s-market http://www.luxurydaily.com/canada-china-drive-foreigninvestment-in-us-real-estate-report/

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

FINANCIAL

The Possibility of Another

Financial Crisis The New York company that foresaw the 1929 stock market crash is now predicting there is a 65% probability of a worldwide recession by the end of next year. The Jerome Levy Forecasting Center told clients in an October 23 monthly forecasting report that the most recent global news suggests we are moving toward a 2015 economic downturn.

Why is Levy worried? He says the US and many other advanced economies still have excesses on their balance sheets that expose them to a renewed financial crisis. He goes on to state that there is limited room for policy makers to reverse any slump, and low inflation risks are tipping into deflation in many parts of the world.

Even though the US is maintaining, Levy worries that with the gross domestic product at 13%, US exports will represent the largest share ever. American companies are getting historically large proportions of their earnings from abroad, and households have a ratio of stocks to disposable income that is higher than any point other than the turn of the century. That makes the US more vulnerable to any type of bear market.

Although the Levy forecasting Center has

january | february 2015 issue

been on target with most of their forecasts, there have been some mistakes. In September of 2010, Levy told Bloomberg Television that he saw a 60% chance of another US recession, but instead the US economy gained strength.

The International Monetary Fund also holds concern about a period of prolonged ultra-low interest rates and feels that it poses a threat for a new financial crisis by providing an environment that encourages excessive risk-taking on global markets.

The IMF says that more than six years of borrowing costs near zero has bolstered speculation rather than a pick-up in investment, as the feds had hoped. Risks to economic stability no longer center on traditional banks, but on the shadow banking system, in which hedge funds, money market funds, and investment banks do not take public deposits.

Traditional banks are much safer now thanks to new international banking regulations requiring additional capital, however, these traditional banks are not strong enough to support economic recovery. A concern is that the increasing market and liquidity risks tied to the shadow banking system could compromise

The ORANGE COUNTY Realtist Magazine

18

Speed, Accuracy and the LRES Way.

For bulletproof Valuation and REO Services, call on the LRES Team.

From Los Angeles to New York, LRES people leap in where others fear to tread. Behind their mild-mannered appearance beats the heart of a superhero—one that can solve even the most formidable valuation and asset management challenges with superhuman speed and accuracy.

For an unassailable real estate services partner you can count on nationwide, contact one of the superheroes from the LRES Team: 800.531.5737 or email sales@LRES.com.

765 The City Drive South ∆ Suite 300 ∆ Orange, CA 92868 800.531.LRES (5737) ∆ www.LRES.com

FINALCIAL

global financial stability if they are not addressed.

acknowledges that the UK and the US among a few other Although the stability countries are seeing more report states low interest economic benefits, it also rates are “critical� to support warned against market and the economy because they encourage consumers to spend, liquidity risks.

According to Arturo Bris, loose monetary policies have a professor of finance at IMD led to high-yield, risky assets.

This urges investors to take on Competitiveness Center, there bigger bets. There is significant are eight possible reasons why concern over this because many we could see another financial crisis. of the high-risk investments He cites a potential stock are taking place in emerging market bubble due to excess markets and that leaves them liquidity and a lack of vulnerable to increasing US investment alternatives. The interest rates. gap between stock prices The IMF focused on and corporate earnings is the trade-off that happens between the positive economic now larger than it was in any previous pre-crisis period such benefits of low interest rates as 2000 and 2007. If markets and the process of creating return to their normal earnings money known as quantitative levels, the average stock market easing and financial stability around the world would fall by risks. Although the report

january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

about 30%.

Other areas of concern are geopolitical repercussions, long-term battles against income inequality, geopolitical events that can trigger a world financial crisis, and a new real estate bubble developing in the US, the UAE and Switzerland.

Fundamentally, there is reason for concern over another financial crisis. Globally, everyone needs to take to heart the lessons of the last financial crisis and focus on ways to increase economic growth.

Throwing paper money at the problem only makes it worse and makes another financial crisis inevitable. Focusing on social entitlements and taxation lie at the core of truly stimulating the economy.

20

Message From the President

W

elcome Realtist to 2015. May God bless you to have a prosperous year and that He provides you all that you need to achieve your goals this year. God has blessed many of us to see 2015 and I am grateful that he has kept me and my family safe, healthy and prosperous in 2014. The Frazer Family gives Him all the credit. I am also thankful to have celebrated 33 years of marriage. I am truly blessed and hope to have a wonderful and prosperous 2015.

I am also grateful for the people God placed in my life as result of my participation in the real estate and lending business and most significantly NAREB and the Orange county Chapter. Having been the President of our chapter since its inception has not been easy but I would do it all over again if asked. I am the founding President of the Orange Chapter and the President again this year.

Hopefully this will be my last year because someone will step up to lead us in 2016.

As we begin a new year as a Chapter I want to pay a special tribute to Henry Currie, III our NAREB Regional Vice President for Region 15 who passed away last year. Henry was my friend. He was a highly intelligent man, great organizer and leader, sharp dresser and had a charismatic personality and smile that was contagious. You could help but be positive around Henry Currie. He was my confidant and advisor during the most difficult times in running the chapter, my mentor and leader in NAREB. Henry played a major role in establishing the NAREB Orange County Chapter and had been committed to NAREB mission and vision from the very beginning of his involvement in NAREB. He was instrumental in establishing many chapter in California and has been recognized

by State Association and National Association for his commitment and hard work.

The Orange County Chapter would not exist it if were not for Henry Currie’s assistance and leadership. May God Bless Henry Currie III and his wonderful wife and family.

Realtist, we have been bless to see another year. So what are we going to do

january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

22

with it? Please review the OC Realtist Business Plan for 2015 and get all the details. It is available on the website home page under Event Presentations. Please attend our General meetings which are available online and by teleconference. You do not have to leave your office or home to attend an OC Realtist Meeting. Check the website for the latest dates and times.

One of the most important events and traditions we have as a Realtist Chapter is our Prayer Breakfast.

The Prayer Breakfast has been going on since our inception as a chapter on August 4, 2010. We begin every year with a Prayer Breakfast asking for God’s help and we end the year thanking him for His help and provisions all year long. Our local chapter, state chapter and National Organization membership consist mostly of Christians and we are unashamedly unapologetic about our Christian Faith. We are not a church but we recognize God and begin all of our meetings in prayer. We are community organization focus on homeownership and we respect and honor all religions and faiths and we embrace all ethnicities and races.

On January 23rd we had our annual Prayer Breakfast to kick off the new year at the Celebrity Soul Food Cafe in Lake Forest, CA. Our theme for the Prayer Breakfast is the same every year: Purpose, Passion, Peace and Prosperity. The details are on the website at www.ocrealtist.org. It was a wonderful event that included installing our 2015 officers of the chapter.

Please join us also on February 25th from 11:00 AM to 1:00 PM for our Black History Luncheon from 11:00 AM to 1:00 PM at the Celebrity Soul Food Cafe in Lake Forest and on March 19th from 6:00 PM to 8:00 PM for a Networking Mixer with with Nancy West, HUD Outreach Coordinator who will provide a HUD update and Ray Warda BLB Outreach Director who will provide an update on Selling HUD Home. The location has not been determined but time and date is confirmed.

In addition, we are scheduling financial literacy seminars, and first time home buyer seminars at churches and community centers in Orange County. As soon as the dates are set we will let you know.

Below are some important events happening nationally:

NAREB www.NAREB.org

NAHREP www.NAHREP.org

• Please plan to attend the NAREB Mid Winter Conference in Florida at the Grand Hyatt Tampa Bay February 19th to 21st. 2015.

• Realtist Week April 12, 2015 — April 18, 2015. All Day All Chapters nationwide • National Conference August 17, 2015 — August 21, 2015 OMNI Houston Hotel

23

• 2015 Housing Policy & Hispanic Lending Conference from March 30 - April 1, 2015 at the Fairmont Hotel Washington, DC Georgetown.

• 2015 NAHREP National Convention & Latin Music Festival Chicago Hilton. September 20 September 20 - 22, 2015

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

AREAA www.AREAA.org

CAR www.car.org

• Annual Global Luxury Summit in Chicago IL April 19th 2015 to April 21st.

• Hong Kong & Macau Trade Mission, March 9, 2015 to March 15, 2015.

• National Policy Conference.

May 11, 2015 to May 13, 2015 Washington, DC. • 2015 National Conference October 22, 2015 to October 24, 2015. San Francisco, CA.

• CALIFORNIA REALTOR® EXPO is the premier trade show for California’s real estate industry.

Our next event will take place October 6-8, 2015 in San Jose, CA.

FIVE STAR www.thefivestar.com/#/home NAACP www.naacp.og • 11TH ANNUAL NAACP LEADERSHIP 500 May 21-24, 2015. Rosen Shingle Creek Hotel 9939 Universal Blvd., Orlando, FL • ANNUAL CONVENTION 106th Convention Philadelphia, Pennsylvania July 11-15, 2015 • IMAGE AWARDS Pasadena Civic Auditorium 300 E. Green Street Pasadena, CA 91101 Date LIVE! Friday, February 6, 2015 on TV One

• The 2015 Five Star Conference and Expo. September 16-18, 2015.

Dallas, Texas

INMAN NEWS www.inman.com • Real Estate Connect New York City January 27 to 30, 2015

Make sure to mark your calendars for these events and visit the respective websites to register as soon as possible to save money on registration and hotel cost. Finally, please renew your membership in OC Realtist Chapter. The opportunities to grow your business by joining us are increasing steadily each year. If you are not a member please visit our website at www.ocareb.org/joinnow and join us today.

May God richly bless you in 2015.

january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

24

REAL ESTATE

October 2014

PURCHASE Applications D

espite quickly falling interest rates over the past several weeks, the mortgage application rate or purchase index fell 5.0 percent from the previous week for the second straight decline. The falling interest rates did provide a lift to the refinancing index that rose 23.0 percent during the week of October 17th. Yet despite the fact that mortgage rates have decreased almost 30 basis points over the last month and 10 basis points during the latest month there is a decided lack of activity in the purchase index. This lack of activity translates into a lack of demand and traffic in the housing sector. 1 On a seasonally adjusted basis from the previous week the measure of mortgage loan application volume went up 11.6% according to the Market Composite Index. The purchase index was down 9% compared with the same week a year earlier spurring concern about the economy.

“Continuing concerns about weak economic growth in Europe and a few US economic indicators that came in below january | february 2015 issue

expectations caused a flight to quality into US treasuries last week, leading sharp drops in interest rates. The average loan balance for refinance applications increased to $306,400, the highest level in the survey’s history” according to Mike Fratantoni, MBA Chief Economist.

Refinancing applications represented 65% of the total number of purchase applications. Adjustable rate mortgage applications also increased to a total of 9.4% of the total applications representing the highest level since June of 2008. FHA purchase applications fell to 8.3% from 9.5% the previous week and the VA share of purchase applications increased to 9.6% up from the previous week’s level of 8.8%. USDA applications fell to 0.8% during this week.

loans.

For 30-year jumbo fixed mortgages rates decreased to 4.03% for 80% LTV Loans and points, including origination fee, rose from 0.10 to 0.20.

FHA backed 80% LTV loans saw an average contract interest rate decrease to 3.81% with a decrease in points from 0.08 to 0.07 including the origination fee.

The 15-year fixed mortgage average contract rate decreased from 3.41% to 3.28% with a decrease in points to 0.22 from 0.28 including origination fees on 80% LTV loans.

For 5/1ARMs the average contract interest rate also decreased to 2.94% from 3.05%. Points decreased along with the interest rate from 0.38 including origination fee to 0.37 for 80% LTV loans. 2 The drop in interest rates coupled with increases in the number and the amount Mortgage Rates of money being requested 30-year fixed-rate mortgages in refinancing applications for conforming loan balances of indicates that it is the wealthiest $417,000 or less went down to homeowners that are receiving 4.10% while points, including the greatest benefits from origination fee, increased from interest rate drops.

0.17 to 0.21 for 80% LTV The ORANGE COUNTY Realtist Magazine

26

As you Venture out into the World of Real Estate

We can help you put the pieces together and Navigate you into Home Ownership

Making Clients for Life 3739 6th Street, Riverside, CA 92501 Office: (951) 686-5261 Fax: (951) 686-5264 www.fraziergroup realty.com

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. Whether 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.

REAL ESTATE

Even though the sales of existing homes increased by 2 percent in September over August, the National Association of realtors reminds us that sales are weaker than a year ago when there were more distressed homes on the market.

Mortgage rates do not represent the greatest barrier to new home purchases. Rates are still low, even when they exceed 4%. The real problem lies with the availability of credit.

Banks have been required to tighten credit requirements with higher credit scores, strict limitations on debt and full documentation because of the mortgage debacle that has left millions of homeowners upside down on their mortgages and millions of others with short sales or foreclosures. Banks are protecting themselves against default.

Even so, there are positive signs in the mortgage industry. People who previous short sold homes are receiving new mortgages and according to Mel Watt, director of the Federal Housing Finance Agency “We have started to move mortgage finance back to a responsible state of normalcy-one that encourages responsible lending to creditworthy borrowers while maintaining safety and soundness of the enterprises.� The problem is that the loosening of credit that federal regulators are promising has yet to reach the consumer. 3 Another pressure on the real estate market and a reason there are fewer new home loan applications is a continuing inventory problem in many parts of the country. With fewer distressed properties available and many homeowners still underwater on mortgages there is a decided lack of available existing housing units for sale. Of those units that are available, the high demand is continuing to force up prices making it harder for some buyers to meet credit requirements.

The demand for single-family homes is continuing to push new home construction higher but the confidence of U.S. homebuilders took a dive in October due to rising prices to cover higher costs to acquire land and labor. Builders are still optimistic but all three components of the National Association 29

of Home Builders/Wells Fargo Housing Market Index fell. This included current sales conditions, future sales and the traffic of prospective buyers.

No doubt much attention will be focused on the mortgage application numbers for the coming weeks especially as lending reforms begin to loosen up credit in the hopes of boosting new home mortgage applications and sales.

General sentiment among realtors based on all economic reports is that the housing sector will probably remain wobbly for some time to come.

The issues of credit availability, inventory levels and mortgage rates make the market uncertain.

Great mortgage rates are not translating into gains in actual sales at this point. Most of the activity remains focused on refinancing. What the next weeks bring will further clarify the direction of new home sales through the end of the year.

The MBA purchase application survey includes 75 percent of U.S. retail residential mortgage applications and is an important indicator for single-family home sales and new home construction as well as economic momentum.

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

THE CEO CENTERFOLD

KEITH Murray

Keith Murray, President and CEO of PVC Murcor and VRM Mortgage Services, is a real estate industry veteran with over 33 years of experience in real estate consultation, valuation, and analysis. He also holds a California Real Estate Broker license, which is just the beginning of his commitment to education and the mastery of all aspects of the real estate field.

Keith Murray graduated from California University, Northridge with a Bachelor of Science degree in business administration, with an emphasis in finance. Other notable achievements and certifications include: the MAI designation of the Appraisal Institute, the IFAS designation of the National Association of Independent Fee Appraisers, and the ASA designation of the American Society of Appraisers. These designations represent the highest standard of achievement and excellence in the appraisal field.

In a radio interview with Keith in 2012, he told me about an event that transpired on a Friday—while he was working as a bank teller— that led to his decision start his own appraisal company. Keith was 22 years old and behind the counter helping customers when armed robbers walked in the bank, pointed a gun in his face,

january | february 2015 issue

and asked for cash. When the terrifying ordeal was over, Murray quit his job the following Monday and started an appraisal firm which today is known as PCV Murcor.

Founded in 1981, PVC Murcor—providing the highest quality valuations and consulting services—became one of the largest real estate appraisal management firms in Southern California, and eventually laid the foundation for the creation of VRM Mortgage Services to become a nationwide firm dedicated towards providing a wide range of real estate services across the United States.

As the founder of VRM Mortgage Services in 2006, Mr. Murray developed his company to be one of the best providers of nationwide mortgage-related services. The company offers solutions directed toward helping lenders, servicers, government agencies, and investors to become more compliant and self-sufficient. In addition, VRM helps with improving origination and servicing returns, and aids in decreasing loss severity. The company also offers help in reducing operational and reputational risks.

The ORANGE COUNTY Realtist Magazine

30

THE CEO CENTERFOLD

VRM ACCOMPLISHMENTS As the president and CEO of VRM, Keith Murray has seen his company blossom over the years. Since 2007, the mortgage service company has been able to list, manage, and sell over 500,000 assets. The company has become much more than just the largest mortgage REO outsourcer company in the industry. Under Murray’s management, the company has dedicated itself to offering solutions to some of the industry’s toughest challenges, post-financial crisis.

VRM’s commitment to borrower outreach and pre-foreclosure retention solutions is setting new standards for the industry. VRM’s property preservation, disposition, eviction, and rental management services are recognized as leading default service operations among its peers.

Through its training division, VRM University, the company also provides cutting edge sales, compliance, professional development and best practices training for real estate professionals online and at national real estate conferences throughout the country.

In 2014, VRM Mortgage Services and PCV Murcor were honored with being rated in the top 500 African-American owned businesses and the top 500 diversity owned businesses in America by one of the nation’s leading multicultural social media sites - DiversityBusiness.com. Mr. Murray was one of the entrepreneurs honored for their commitment to diversity. This prestigious award recognizes and honors specific individuals who have established themselves as world-class entrepreneurs who stop at nothing to change the lives of people and push the economy forward.

MURRAY’S ACHIEVEMENTS Mr. Murray has been able to use his knowledge and skills to analyze and supervise the analysis and valuation of different types of real estate in California. His vast knowledge of real estate industry has allowed him to work extensively and successfully with government and quasi-governmental agencies including: Freddie Mac and Fannie Mae, RTC, the Veterans Administration, and HUD. He has also contributed to the private sector and has shared his experience with a number of financial institutions, pension funds, insurance companies, and asset managers.

As the CEO of The Power Is Now and host of The Power Is Now Radio, I have had the privilege to meet and interview many important people in the real estate industry. I can count on one hand the number of people who have made a lifetime impression on me, and Keith Murray is one of those people. Mr. Murray is an inspiration to me, and has inspired thousands of people along his meteoric rise to the top of his profession, and has inspired thousands at conferences where he has spoken. He is the epitome of success in business and in life. His commitment to his business success is secondary only to his unapologetic confession of his faith in Christ, and his commitment to his wife and family. Mr. Murray understands the importance of God, family and business and has achieved the proverbial balance life that so many of us have been unable to do. I am humbled by his unmoving standards and his soft spoken nature.

I am inspired by the talent he attracts to his organization and how he is revered among his employees as a strong leader. Lastly, I am in awe of what he has built in PVC Murcor and VRM. I believe Mr. Murray is just getting started.

Eric Lawrence Frazier, CEO The Power Is Now Inc.

january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

32

COMMUNITY

Using Renewable

energy

Resources The world relies heavily on fossil fuels to generate energy, but the tide is changing. Higher energy costs, the damage that fossil fuels cause to the environment and the decreasing supply of fossil fuels are all converging. According to British Petroleum and Royal Dutch Shell, onethird of the world’s energy needs to be obtained from renewable resources by 2050.

The majority of renewable energy is derived directly or indirectly from the sun. The sun’s energy can be used directly for heating and lighting, for generating electricity for heating water, and for providing solar cooling. The heat of the sun is also responsible for driving winds.

Most people consider wind a separate category of renewable energy, but the two are inextricably connected.

We use wind turbines to capture the power of the wind. The wind turbines produce electrical power. More and more wind farms are being built that have hundreds of individual wind turbines that generate electricity to feed into the grid. Wind energy can also be used for offgrid locations where it is difficult to bring in electrical transmission and distribution lines.

january | february 2015 issue

The sun causes water to evaporate. When the water vapor is transformed into rain or snow, it flows downhill into rivers and steams. This provides the third type of renewable energyhydroelectric power. Water is used to turn turbines that capture the energy of the flowing water to generate electricity.

There are other types of renewable energy.

Bioenergy or a plant’s organic matter can be used to produce electricity, fuels, and chemicals.

Geothermal energy uses the earth’s internal heat to generate electricity, and to heat and cool.

Even the ocean provides us with renewable energy sources including the energy contained in the tides and in waves. With the sun’s help to warm the surface of the oceans, more than the ocean depths the temperature difference itself can be used as an energy source.

Why Is It Important To Use Renewable Energy?

Using renewable energy is important for the benefits it provides. Population growth and human activities are causing excessive carbon dioxide to build up in the atmosphere and those

The ORANGE COUNTY Realtist Magazine

34

emissions trap heat that drives up the planet’s temperature.

The higher temperatures are causing global warming as well as significant and potentially harmful impacts not only on the environment but on our health and the climate. The generation of electricity alone is responsible for one-third of all U.S. global warming emissions. This is because 25% of all U.S. electrical generation is produced using coal-fired power plants. Gas-fired power plants account for another 6%.

Renewable energy is much cleaner than using fossil fuels to generate electricity. This means they have a much lower impact on the environment than fossil fuels or non-renewable resources. The benefits of using renewable energy extend farther than simply using the energy source itself.

According to data collected by the International Panel on Climate Change, there are additional benefits to using renewable energy associated with the overall life-cycle of renewable energy 35

technology. This includes the installation, maintenance, operation, dismantling, and decommissioning of equipment. With renewable energy technology,lifetime global warming emissions are minimal. Increasing the use of renewable energy allows the replacement of carbonintensive energy sources that can significantly reduce U.S. and worldwide global warming emissions.

Using renewable energy sources also benefits public health by reducing water and air pollutants emitted by coal and natural gas plants that have been directly linked to breathing problems, neurological damage, heat attacks, and cancer.

Also, renewable energy will not run out. Unlike fossil fuels, the sun, wind, internal temperature of the earth, and our oceans will not be depleted like fossil fuels. It is estimated that there are 1.3 trillion barrels confirmedoil reserves left in the world’s major oil fields. At present rates of consumption, the supply will run out in 40 years. By 2040 the world’s population is expected to double, so our consumption will double as well because more of the world will be industrialized.

Another often-overlooked benefit of renewable energy is safety. As fossil fuels become harder to find, it becomes more dangerous to harvest them.

The ORANGE COUNTY Realtist Magazine

With the development of better technologies, renewable energy is becoming easier and safer to harness and control.

Another benefit of renewable energy are the jobs generated by investments in renewable energy technology. The dollars you pay are invested locally, statewide, and across the U.S. to create jobs that power local economies as well as the national economy.

Conclusion

Using renewable energy sources like solar, hydro, geothermal, and biomass are an important step in helping countries become energy independent and healing our environment. Furthermore, the development of renewable energy technologies is providing the fastest growing segment of jobs not only in the U.S. but globally. To make a real difference in the world, you can begin by using renewable energy sources to power your car, heat your home, and supply your energy.

More jobs will be created and the country can be more energy independent. You will personally benefit from safer, healthier electrical generation, lower energy costs and a healthier environment.

www.OCREALTIST.org

BUSINESS

The F alling Unemployment Rate

The U.S. economy managed to create 214,000 jobs during October 2014, helping the national unemployment rate to creep down to its lowest level in six years. The national unemployment rate stands at 5.8% after a decline of 0.8% since the beginning of the year.

The number of longterm unemployed, or those without a job for 27 weeks or longer, remained mostly unchanged at 2.9 million.

This group represents 32% of all unemployed persons.

The number of long-term unemployed has decreased by 1.1 million over the previous 12 months.

The employment-population ration increased to 59.2percent in October, but the civilian labor force participation rate saw only minimal change to 62.8 percent in October from 62.7 in September’s report. This number has remained predominantly flat since April.

january | february 2015 issue

October saw the average workweek for all employees on private nonfarm payrolls move up by 0.1hour to 34.6 hours and the average hourly earnings rose by 3 cents to $24.57 in October.

New Jersey According to estimates made by the United States Bureau of Labor and Employment, New Jersey employment increased in October but revised September estimates showed a much larger increase in employment than was originally reported.

October employment figures reveal that nonfarm wage and salary employment was down by 4,500 jobs to a seasonally adjusted figure of 3,951,700.

The Bureau of Labor Statistics uses a monthly survey of employers to determine this figure. The revised figures for September show a gain of 3,000 nonfarm jobs instead of a gain of 600 nonfarm jobs as previously reported.

The ORANGE COUNTY Realtist Magazine

October Bureau estimates from the employer survey show declines in private employment of 2,400 jobs and public sector employment of 2,100 jobs.

Also, there were 21,200 more New Jersey residents employed in October than there were in September. This jump in employment is the fourth highest increase in the state’s history.

New Jersey private sector employment has increased by 146,000 jobs since its lowest point in February of 2010.

Four of the nine major private industry sectors reported gains while five sectors recorded losses. Gains were recorded for education and health services, financial activities, trade, transportation, utilities and leisure and hospitality while industries that recorded losses included construction, professional and business services, other services, information and manufacturing.

36

BUSINESS

New Jersey is lagging behind other states when it comes to job creation and increasing employment. The October report puts the New Jersey unemployment rate at 6.6%, which represents an increase of 0.1%.

Unfortunately, New York and New Jersey were two of only five states that saw increases in their unemployment rates.

Nevada reported the largest job loss with a decline of 7,300 jobs.

Jersey City is continuing to see improvements in their unemployment rates. In August, it had the lowest unemployment rate of any large city in New Jersey. The current city administration under Jersey City Mayor Steve Fulop has focused on growing job opportunities, expanding job training, and providing expanded access to employers for all residents. They have also been able to convince several firms to relocate to Jersey City including JP Morgan

37

Chase, RBC, Forbes, Imperial Bag, Nautica and Ahold, as well as the construction of several new hotels creating hundreds of new jobs.

The Regent Atlantic New Jersey Wealth Index (RANJWI) is a proprietary index developed to measure the health of the wealth in New Jersey. The index is based on four components: employment, home values, personal income, and stock performance. The index’s value for the second quarter of 2014 is 42, indicating that the environment in the state has been close to average for creating wealth.

The financial crisis and associated recession from 2007-2009 resulted in record lows for the RANWI index because dropping home prices, a weak stock market, a high unemployment, and slow income growth adversely affected the New Jersey environment for wealth creation.

The ORANGE COUNTY Realtist Magazine

The recovery to 42 from 17 in 2012 predicts a potential turnaround in New Jersey fortunes.

The trends so far this year indicate a balanced mix of growth. In the 12 months that ended on June 30, personal income grew by 3.1%, faster than the overall inflation rate of 2.1%. New Jersey had been lagging behind the nation in employment over the course of the recovery, but not in this last quarter. New Jersey registered one of the largest drops in the unemployment rate during the past 12 months, falling to 6.5% statewide. Home prices are also trending upwards gaining about 2.6% in New Jersey. This significant gain boosts wealth statewide.

Although employment news is mixed, the combined reports indicate slow but steady progress and a generally positive outlook as we head into 2015.

www.OCREALTIST.org

BUSINESS

JOBLESS CLAIMS For October 2014 For the sixth straight week U.S. new jobless claims for October remained below 300,000 indicating that the labor market was weathering concerns over the slowing global economy.

The current jobless trends remain positive although initial jobless claims rose during the week of October 18 by 17,000 brining the total claims to 283,000. The 4-week average reached a 14-year low at 281,000 down 3,000 from September.

When comparing the numbers against the sameSeptember survey period employment reports show little change. The most recent week rose 2,000 from the September 13 week, for a small rise, while the 4-week average rose slightly higher by 1,250.The unemployment rate for insured workers remained steady at 1.8 percent. 1 There is some evidence that weaker growth in China and Europe is affecting the manufacturing sector. Data released on Thursday showed factory activity dropped to a three month low at the beginning of the month although the manufacturing

january | february 2015 issue

sector continued to move forward at an encouraging pace.

The Labor department reported that for the week ending October 18, state unemployment claims rose 17,000 for a seasonally adjusted rate of 283.000. This came after three straight weeks of dipping numbers.

A more accurate measure of labor market trends is the four week moving average of claims because it smooth’s out the week-to-week volatility. This index also dropped to its lowest level since May 2000.

The new claims four-week average fell 18,750 during September and October survey times. This data suggest another month of reasonably strong employment growth and new job creation.

Another promising sign could be found in the number of people continuing to receive benefits after an initial week of help dropped by 38,000 to 2.35 million for the week that ended October 11. This number was the lowest recorded since December of 2000 signaling that the jobless rate could continue to fall even more.

The rate fell below 6% in

The ORANGE COUNTY Realtist Magazine

September. This was the first drop to the 6% level since July of 2008. 2 The good news according to Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York is “There is no sign in these very timely data of weaker global growth or turmoil in the markets causing U.S. growth to falter.”

Data obtained from Markits U.S. manufacturing purchasing managers index dropped to 56.2 during October from a September reading of 57.5. If an index reading is above 50 it indicates economic activity is expanding.

New export sales slowed quite sharply as well as new order growth despite job growth remaining relatively strong. It appears that the weakening economic growth in key global markets including Europe and China and other emerging markets is affecting export performance according to Chris Williamson, chief economist at Markit in London.

The slowing growth in Europe and China has also caused some upheaval on global financial markets over the past several weeks. U.S. activity, on the other hand, continues to expand at a solid rate with third quarter growth expected to reach or exceed an annual pace of 3 percent in spite of increased global health concerns. 3

40

BUSINESS

Looking at different labor groups initial claims by former Federal civilian employees totaled 2,012 for the week ending October 11, which is an increase of 473 over the previous week. Newly discharged veterans filed 2,385 initial claims, a drop of 206 over the week before.

Insured unemployment rates for the week ending October 4 were highest in Puerto Rico (3.2), Alaska (2.8), New Jersey (2.7), Virgin Islands (2.7), California (2.3), Connecticut (2.3), Nevada (2.2), Massachusetts (2.1), Pennsylvania (2.1), and Rhode Island.

The largest increases in initial claims for the week ending October 11 were in Pennsylvania where new claims rose by 4,013 and Michigan which showed an increase in first time claims of 3,210.

Other states with increases in first time jobless claims include Texas, Washington and Maryland. States that showed the greatest decreases in first

41

time jobless claims included Iowa (-1,229), Florida (-781), New York (-600), Oregon (-407), and Ohio (-394). No state triggered “on� for the Extended Benefits program for the week ending October 4. 4 The sharp declines in initial unemployment claims for early October are thought to be somewhat skewed by the Columbus Day holiday that closed down government offices around the country.

Even so, the four-week average report that takes into account holiday volatility still showed a drop of 3,000 indicating job creation is still healthy and doing well overall.

There is little question that most companies are continuing to operate lean, mean companies. After the many rounds of job cuts during and following the recession of 2007-2009 companies are finally beginning to add jobs but they are still being extremely careful about who gets hired.

The market seems unaffected

The ORANGE COUNTY Realtist Magazine

by the rise in jobless claims because it is still low under 300,000 because they up from a very low level. Based on the numbers there is not a lot of job cutting or firing going on.

Analysts say that the growth outlook remains stable for the economy at around 3 percent.

New Jersey and Pennsylvania are continuing their campaigns to create new jobs and get folks back into the labor market with their special job portals, incentives and job fairs.

Though still lagging behind other states they have been seeing some positive signs such as increases in job postings and placements.

All in all the October jobs report contains nothing alarming in terms of the U.S. economy or the U.S. labor market. Everything appears to be relatively stable even with the slight increase in jobless claims. This report in conjunction with other leading economic indicators reinforces the outlook for continued economic growth.

www.OCREALTIST.org

BUSINESS

HOA Foreclosures and Effects on First Mortgages

H

istorically, there has always been tension between lenders and condominium and homeowner associations when problems arise with delinquent association fees or assessment charges. Most HOA Covenants, Conditions and Restrictions permit an association to foreclose on a property if it has a lien on a homeowner’s property. In a recent ruling by the District of Columbia Court of Appeals, there is renewed focus and concern about the position of HOA liens concerning both position and payment issues as they relate to a lender’s mortgage lien. The new ruling can have significant impacts on both mortgage lenders and homeowner associations.

BACKGROUND INFORMATION HOA, First and Second Mortgages

HOA Liens are often recorded against a property after a first mortgage. When this occurs, the HOA lien is “junior” in priority to the mortgage.In the case of a foreclosure, the first mortgage lien remains on the property after the HOA forecloses. When the property goes up for auction, the HOA or another purchaser buys the property subject to the first mortgage lien. Even when the HOA lien is recorded prior to the first mortgage, most Covenants, Conditions and Restrictions contain a clause that makes the HOA lien subordinate to any first mortgage. Generally, this makes it easier for people considering

january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

42

BUSINESS

the purchase of a unit in HOA community to get financing because most lenders require their mortgage to be in the senior lien position. Any second mortgage on a HOA Property is eliminated by the foreclosure of the senior HOA lien. In the event that the second

mortgage was recorded before the HOA Lien, it would stay on the property after any HOA foreclosure just like a first mortgage lien.

Super Liens

Roughly 20 states give HOA liens a special status known as a “super lien” under very specific situations. The conditions vary by state.

For example, Colorado law gives HOAs a super lien with priority over a first mortgage when a homeowner becomes six months delinquent on assessments. When a HOA forecloses a super lien, it eliminates the first mortgage along with all other junior liens on the property. Because a super lien can eliminate a first mortgage, most mortgage lenders want to maintain their first position. If they are able

43

to do so, they will pay off the super lien amount so that the property does not end up in foreclosure.

Recent Changes

The recent Court of Appeals ruling in the Chase Plaza Condominium Association vs.

Chase Bank, N.A. made on August 28, 2014 determined that an association’s statutory “super-priority lien” for unpaid assessments took the senior position, not just for payment priority, but also over the lender’s mortgage lien.

The issue in the Chase case concerns the aftereffects of the association when it forecloses its assessment lien.

The question then arises, is the association’s lien only a priority of payment, or a true priority lien, whicheliminates the lender’s mortgage lien?

The Court of Appeals disagreed with the trial court and held that the foreclosure of the association’s assessment lien took senior position for both payment and as a priority lien extinguishing the first mortgage or deed of trust on the property.

The Uniform Laws Commission has recently amended Section 3-116 of UCIOA to resolve the ambiguity around super lien status, recognizing that the most recent decision is causing a lot of anxiety for lenders and associations alike.

The ORANGE COUNTY Realtist Magazine

Outcome

The Chase decision has significant effects for both lenders and associations. This decision giving HOA Liens true priority means they will have a much more powerful tool to use to collect delinquent assessments. For lenders, the decision will complicate how banks can enforce current loans. This also may mean making more modifications to underwriting requirements and loan document escrow provisions for HOA properties.

Another possible effect is that there will be new secondary mortgage requirements for condominium documents to require waivers, notices, and opportunities for lenders to satisfy the HOA Lien in order to protect their collateral.

Conclusion

In light of the recent mortgage meltdown, this is not welcome news for mortgage lenders or homeowners.

If a HOA foreclosure sale price is unreasonably low, lenders will be left with an enormous unsecured debt and a homeowner will be left with a huge deficiency judgment to the lender. This could all ultimately result in less available financing for HOA properties on the market because the ruling makes it risky for mortgage lenders to take on these types of property without a good way to protect their collateral.

www.OCREALTIST.org

TECHNOLOGY

Technology

Used in Real Estate Technology has been able to transform the entire real estate industry over the last 10 to20 years. The fact that the industry demands the provision of all inclusive services and requires the coverage of numerous territories makes the industry dependant of technology.

This has made the real estate industry one of the most techsavvy industries in the world.

With a dependency on technology, it is easy to understand why both real estate buyers and sellers are always looking to familiarize themselves with the latest technologies in the industry.

The ultimate effect has been for real estate companies to continue to build better and more efficient real estate technology.

Technology such as the Internet, social media, and the use of mobile phones have had the greatest impact in the real estate industry. Kathy Connelly, the senior vice president of corporate services for Prudential Georgia Realty, acknowledged this by saying, “The Internet has reshaped how real estate is delivered to

january | february 2015 issue

the consumer and how we as consumers manage our daily lives. The next iteration of use of online technology will be in mobile access and utilization of mobile devices. It may be as impactful as the Internet itself.’’

We’ll try to look at these and other top technologies that are currently being used by both real estate buyers and sellers. a) Online retailing Online retailing had the

The ORANGE COUNTY Realtist Magazine

biggest effect on the industry resulting to a reduced demand for space, according to Alan Billingsley, head of research at RREEF Real Estate in San Francisco. The effect is expected to continue. Research once conducted by RREEF once revealed that online purchases contribute about 5% of all sales. The Internet has played a huge part in helping both the buyers and the sellers meet one another. Through this advanced technology, elaborate

44

TECHNOLOGY

delivery systems have been established. The same concept has been adapted in the real estate industry where property sellers can just post their ad via the Internet and allow the buyers to sample them.

It has also been revealed that 88% of all the home buyers begin their property search through the internet before seeking assistance from a realtor. This does not mean that Realtors are being ignored 87% of buyers have been identified to rely on the knowledge and expertise of the experts.

some quick price comparison and even locate hotels.

b) Smartphones and tablets The introduction of smartphones has had a huge impact on the hotel industry.

Today, most hotels are getting into the habit of installing iPads in rooms so that their customers can get real time news. In addition to this, customers get to look at the room service menus, get full control of the air conditioning and do so much more. With smartphones, individuals get to gain access to different apps which are available either freely or at a substantial cost. The apps allow the user to book rooms, do

d) Customer relationship management software This is also a very popular software that is being used today in the real estate market.

The proprietary tool allows the brokers to keep private information as confidential as possible and only allows them to share the same when it is necessary. The standout feature about the application is that it gives the user instant access to the contacts and also gives them a history about the details of the last time they communicated.

january | february 2015 issue

c) Google Earth Today, Google Earth has become a very popular real estate device amongst professionals. According to Brenda Dohring Hicks, the technology works in such a way that it allows the user to pull up a certain locations that they have been talking about on the phone. The property identified is then vividly seen on Google Earth.

The ORANGE COUNTY Realtist Magazine

e) Social media Did you know that online advertising is 20 times more likely to sell a house than regular ads posted in newspapers? Statistics show that online ads accounted for about 40% of the all the homes sold as compared to 2% through newspaper ads. In as far as marketing is concerned; social media has had such a great impact on how real estate is marketed, acquired or even how customers are retained. Today, social sites such as Facebook, Twitter, YouTube and LinkedIn have continued to provide real estate property buyers and sellers with information. In addition to this, we also have rating sites such as Yelp and TripAdvisor that have played a huge role in impacting the real estate market.

If these tools can be used effectively in the real estate market, chances are that it would benefit the realtors, buyers and even the sellers.

The secret lies with knowing about their existence and how to use them effectively to your advantage.

46

TECHNOLOGY

How Social Media Has Changed

THE FACE OF BUYING AND SELLING MENTALITY

The likes of Facebook and Twitter Likely the next frontier in the digital space, social media holds a great opportunity for brokers and agents to interact with their target markets. The CENTURY 21 System sustains a strong existence in standard sharing and social sites such as Twitter, YouTube, and Facebook, among others.

The world as we know it is in the midpoint of change.

The new social media tools have redesigned social activism. With the likes of Twitter and Facebook, the customary relationship between popular will and political authority has been inverted, making it simpler for the helpless to coordinate, collaborate, and january | february 2015 issue

The ORANGE COUNTY Realtist Magazine

give their concerns voice.

The impact of social media for salespeople Imagine if you were the CEO of a midsized company fielding calls from important vendors. Frustrated at their pushiness, you take some questions to your Twitter account. Soon after, someone else in the business sees your tweet and helps you figure out solutions to help deal with pushy vendors and clients.

This is just one way that social media can prove successful in business.

Social media is regarded as a substantial communication tool and communication is always the key to selling. In other words, using social media to sell automatically increases your profits.

48

TECHNOLOGY

Social selling, which is selling via social channels, is the closest thing to having a poster on a billboard.

Social media such as Twitter, Facebook, LinkedIn, YouTube, and others provides information that is almost unattainable via conventional means. Presently, leads are so much more than a business card from an event, call from a friend, or a chance meeting on a bus or flight.

It is like the phrase, “Go where your clients are.� It applies in real life because your prospects and clients use social media, as well as their employees, fans, and detractors. This babble is information the best and most enlightened sales professionals are using to acquire qualified leads and increase revenue.

Salespeople are currently using social selling to be where their clients are.

Social media has indeed changed buying and selling for years. Today, buyers spend a huge part of their time researching and going through the purchase process

49

before they attract vendors.

Most of the buyer’s journey is supported by social media. Social selling enables sales people to captivate buyers much earlier in their expedition.

Hungry, driven salespeople have traditionally relied on the cold calling approach.

However, according to upto-date findings, a study by InsideView indicates that more than 90% of CEOs never respond to cold calls or emails.

The cold calling return is drastically declining now.

Buyers are now more receptive to social media messages regarding relevant topics started by the buyer or sales person. Also, the indication of leads has changed as well; if a potential client complains of being frustrated, they will most likely engage with a salesperson who replies to their frustration as opposed to a cold call pitching their products or services.

Clients, on the other hand, are also changing the way they purchase goods. They tend to

The ORANGE COUNTY Realtist Magazine

engage vendors much later in the cycle of sales and they have access to more information than they did before. The client conversations, frustrations, thoughts, and concerns have become increasingly more public and unconcealed.

Customers get to express their concerns, frustrations, and thoughts publicly, all these changing how sales are conducted and how quota is met.

In order to take part in this environment and have access to this information, it means that salespeople need to adopt social selling. This means that they should have a social media account or participate in a group on sites such as Facebook, LinkedIn, and Twitter. Additionally, a blog such as Tumblr may be helpful.

www.OCREALTIST.org

TECHNOLOGY

Software Real Estate Agents Can Use

Real estate agents differ from real estate brokers in that the brokers are licensed and given the responsibility of managing their own individual businesses. With agents, this does not apply. Real estate agents in most cases work under brokers and combine their expertise to assist the clients sell and buy their homes. In the recent past, these jobs have grown in popularity and according to the Bureau of Labour Statistics, they project an 11.1% job growth in the sector by the end of 2022.

The real estate industry is a very demanding sector. For these kinds of industries to succeed, they require a huge technology investment.

Technology has played a huge role in transforming the industry and affecting how business is carried. Today, more that 50% of high income earning realtors invest more than $2,500 of their earnings each year in technology.

There is some specific real estate software specifically designed to meet the needs of a

january | february 2015 issue

real estate agent. Designed to assist them in all aspects of the industry, this software is necessary and useful. This piece will look at some of the most common software used by real estate agents.

a) CRM Software

The line of work of real estate agents always demands them to obtain leads and contacts from their clients. This is a good way a real estate agent can use to enhance their marketing efforts.

Reliable and efficient CMR software will do a lot more for you than just act as a database for keeping names and other contact information.

It is available in different types including: Contactually, Boss, Insightly, IXACT Contact and PlanPlus Online. Here is a list of some of the functions performed by a modern CRM software system:

The ORANGE COUNTY Realtist Magazine

50

TECHNOLOGY

The tool is intuitive – the software is quick and efficient, and allows you to easily navigate.

You can make the most of the cloud – effective CRM software allows you to store files, photos, and even your sales documents online.

Is easily accessible –CRM tools are easily available for iOS, Android, and Windows devices.

Ability of automating your marketing and sales tasks – with this application, you will no longer have to manually send emails or publish other marketing collaterals.

c) WinREO

The software is a creation of WinREO and is designed as an effective tool that helps the user to manage both traditional and REO real estate transactions. The web-based tool automatically assigns tasks to your team so that you can assign yourself other important things. It also comes with a new dashboard that allows you to monitor all that is going on. The only downside to this software is the expansive learning curve, including setup time.

d) iRealty b) Base

The Base is a sales tracking software that is perfectly designed for real estate agents. This application allows you to be both proactive and productive as it has the ability of effectively managing a number of customers and projects at the same time. The software can track a customer’s activities and avail them on a dashboard. For the dashboard, you can look at the specific details you want. This tool is equipped with that ability of allowing the user to prioritize workloads, set reminders, or even share information with other team members.

Used properly, this software is likely to improve sales and customer relationships.

january | february 2015 issue

iRealty was created by WorksForWeb. The software has been designed as an SEO-friendly PHP classified software having multi-language abilities. The dream script software comes equipped with advanced features including: ability to make money, multi-language support, and editable source code.

e) PCHomes by Estates IT

PCHomes is available as both desktop and cloud software. It performs as a fully integrated letting, property management, and sales software that is very popular with real estate agents. The software is easy to operate and has excellent customer support.

Each of the aforementioned software is designed with a specific functionality. Your personal choices will heavily depend on what you need for your business.

The ORANGE COUNTY Realtist Magazine

52

PERSONAL DEVELOPMENT

Goal Setting versus Goal Achievement Lately I have been spending a lot of time selling on the phone and I realize the tremendous disadvantage it represents to sales professionals versus selling face to face. I love selling face to face. I am always reading and learning about sales techniques to help myself and others and the following blog is a compilation of what I have learned about face to face sales:If you are like me you prefer face to face meetings over phone conversations. One major advantage you have in a face to face meeting verses the phone is being able to see your client’s facial expressions and body language. Even being able to see how they dress will give you an ideal of their personality type.

We all know that personality types will ultimately dictate how you greet the person and deliver the information. Personality types are a very important area of study for sales people and will be a blog for another day.

When you meet with a client there are 5 key questions you need to know before setting foot in the door.

1. What does this person care about?

All too often, people walk into the room and completely ignore the first step of any conversation: to connect with others on a human level.

Prospects are people with feelings, and emotions and many interest and they, like most people, want to connect with another human being.

This is axiom of human nature.

We are all made to connect with one another. Prospects appreciate great manners, and they value being asked about

january | february 2015 issue

their life outside of being a first time homebuyer, seller or investor. Don’t take it too far.

Be sincere. Ask a simple open ended question to get them to talk about themselves and the rest will take care of itself, if you are sincerely interested in the other person.

2. How will I start the conversation?

Much like any presentation or the latest episode of your favorite TV-series, how you start predicts (mostly) how

The ORANGE COUNTY Realtist Magazine

you’ll end up. You must have a pre-meeting process, a strategy to start the presentation and a goal of what you want to accomplish – the ultimate goal is getting the listing if you are a listing agent. Think about the first thing you will bring up during the meeting and when it’s time to talk business.

Which question will you ask first? What issue will you bring up? What unexpected facts or insights will you deliver?

Be natural, and guide them through questions and answers like a counselor whom they

54

PERSONAL DEVELOPMENT

conversation?

In “7 Rules for Meetings with Top Executives” on Inc. com, Geoffrey James’ last point is “Close on a next step”.

Unless you have a clear idea of how you would like to end 3. What value will I bring? the conversation, one of three Sales people will create things is likely to happen: value in every interaction. Why 4. What new ideas will I • Nothing (happens because people buy people. You introduce? surprisingly often) are the value in the transaction.

According to RAIN Group’s It is your responsibility as a • They will advance their latest research on “What Sales sales person to deliver massive Winners Do (Differently)”, agenda value in the relationship where the #1 factor that buyers cite • You will advance your you are the oblivious choice sale when asked why they bought and the deciding factor in the from firm A versus firm B was When closing the sell it’s transaction. Warren Buffet “they educated me with new often a great idea to ask the said “Price is what you pay ideas and perspectives”. We’re seller what they would like to but value is what you get.” talking NEW ideas here. Not do next and to present them Personal value is how you old ones. Not popular ones. with 2–3 scenarios to pick become a personal advisor and Not generally accepted ones. from. They may come up with develop trust. Value is not just In others words, prospects a 4th one that remixes elements about delivering new insights. buy from those who “tell from the 3 you mentioned. This It comes in many forms: them something they didn’t is a clearly approval to move Performance value, Financial already know”. What new ideas forward. They’re on board, value, Value exchanged for can you introduce? What they’re invested and you time, Value in ideas and Value counterintuitive wisdom know exactly what’s in information. But relationship can you share? How going to happen value trumps them all because can you back up next – listing the people buy you before they your claims? Don’t property. buy anything you have to sell. spend time talking Try it out for One way to get them to buy about what every yourself.

You you is to keep asking them why agent coming to see may be amazed at questions that will uncover them will talk about. the results you’ll root objections, that are just Differentiate yourself get. Remember the waiting to come out, and that with your information.

Power Is Now. If you will give you opportunity are interested in learning at the right time to present more please call me. Your 5. How will I end the solutions. Before you walk into success is my success. the meeting, ask yourself three simple questions: • What kind(s) of value will I add in this trust and they will allow you to lead them to a decision to seek your help. Be prepared and be impressive with market knowledge and information.

55

conversation?

• How will I personally deliver value to this person?

• In what ways can we create shared value together?

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org

Our board of directors

Successs Money

SECOND VICE PRESIDENT success.money@ocrealtist.org 800-790-0941 ext. 737

Eric Lawrence Frazier PRESIDENT

Kym Thompson

DIRECTOR AND ASSISTANT TO THE PRESIDENT kym.thompson@ocrealtist.org 714-293-2098

Christina Kimble

Ivery Summers

R. Ann Ellis Hall

FIRST VICE PRESIDENT ivery.sells@verizon.net 310-920-3455

january | february 2015 issue

THIRD VICE PRESIDENT christina.kimble@ocrealtist.org 800-790-0941 ext. 705

SECRETARY ann.annellis@gmail.com 626-864-4127

The ORANGE COUNTY Realtist Magazine

56

Edilma Friesen

EXECUTIVE VICE PRESIDENT Edilman.Friesen@ocrealtist.org 949-209-7708 657-900-2066

La Toya James

VICE PRESIDENT OF AFFILIATE latoyajamesrealestate@gmail.com 323-767-6933

Mary Ann Epstein

VICE PRESIDENT OF TECHNOLOGY maryann@realpro.la 909-539-7196

Felsia Dailey

DIRECTOR OF MARKETING fdailey@ocregister.com 714-856-1743

For information about membership and upcoming events please go to www.ocrealtist.org

57

The ORANGE COUNTY Realtist Magazine

www.OCREALTIST.org