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U.S. ECONOMY CONTRACTS IN 2020 Page 12

NAVIGATING FORECLOSURES IN THE FACE OF THE PANDEMIC. Page 24

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APRIL 2021 Vol. 08 | Issue 4

MARCIA FUDGE

UNITED STATES SECRETARY OF HOUSING AND URBAN DEVELOPMENT Page 76

HAVE YOU READ OUR PAST ISSUES YET? the power is now

magazine CENTRAL EDITION Vol. 08 | Issue 4

Eric Lawrence Frazier, MBA Publisher Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 eric.frazier@thepowerisnow.com www.thepowerisnow.com EDITORIAL TEAM Sheila Gilmore Editor in Chief (800) 401-8994 ext. 711 sheila.gilmore@thepowerisnow.com Daniels George Managing Editor (800) 401-8994 ext. 712 daniels.george@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager goldy.ponce@thepowerisnow.com

CONTRIBUTORS The Power Is Now Research Team

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CONTENTS

APRIL 2021 Affordability Crisis In America: Homebuilders face rising costs and slower supply chains Due to Covid-19. Pg. 22. Why are Millions of homes underinsured against natural disasters as construction costs keep rising?

POWER LENDING Pg. 24. Navigating Foreclosures in the Face of a Pandemic. Pg. 26. It is still very hard to get a mortgage! But it’s getting easier

POWER TECHNOLOGY

POWER GREEN Pg. 8. Apparently, “Environmental racism” is a thing in America: how environmental racism leaves the vulnerable behind. Pg. 10. Now That Trump’s Assault on Environment is Over, can we get back to work now!

POWER ECONOMICS Pg. 12. U.S. economy contracts in 2020; worst performance since 194. Pg. 16. Biden takes steps to put the US on an ‘irreversible path’ to a net-zero economy by 2050.

POWER REAL ESTATE Pg. 20. Tracing the Disconnect in The 4

Pg. 30. The Buy The Block Movement: Building Black Communities While Fighting Gentrification! A Block At A Time. Pg. 32. ‘We The Culture” Facebook Accelerator Program to Support Black Content Creators.

IN OUR CENTRAL EDITION: Pg. 37. What you need to know when your property is in distress, by Steve Peterson. Pg. 41. 10 best Arlington suburbs & Neighborhoods, by Johnnie Morine.

IN OUR EAST COAST EDITION: Pg. 47. This is what you need to know before

buying a manufactured home in Maryland, by Emerick Peace. Pg. 51. 10 creative ways for realtors to reduce their tax bill, by Adriana Montes.

IN OUR WEST COAST EDITION: Pg. 57. The red flags to watch out for before hiring a home contractor, by Yvonne McFadden. Pg. 61. 5 reasons why you should never sell or buy a home without an agent, by Peggie Simons. Pg. 65. Best Neighborhoods in Corona for young homeowners, by Kamesha Keesee. Pg. 69. Fontana Real Estate Market trends: Appreciation rates and looking beyond the 2nd quarter, by Ameer Elahee. Pg. 73. First Time Homebuyer Guide: Preparing yourself for your first mortgage, by Ruby Frazier. Pg. 76. About Marcia Fudge: U.S. Secretary of Housing and Urban Development Pg. 81. Debunking real estate investment myths in Irvine, by Cornelius Jackson. Pg. 84. Deciding to rent or sell your home in Corona, CA, by Jenny Gonzalez. Pg. 88. Understanding what real estate COMPS are and how to easily find them in 2021, by Danon Burnside. Pg. 92. How to make a good offer on an overpriced home, by Denise Matthis. Pg. 95. 5 ways to prepare for selling during this spring season, by Kenneth Session. Pg. 98. Smart ways as a homeowner you could save on home insurance, by Robert Langston. Pg. 102. Black homeownership hurdles:

Student loan hurt millennials ability to save for a downpayment, by Briana Frazier. Pg. 106. Top 10 trends for the L.A. real estate market in 2021, by Adrian Bates. Pg. 109. Real estate sales activity in Southern California, by Success Money. Pg. 112. The top 5 tips for prepping your home in Richmond, CA.

POWER LEGAL Pg. 114. New report highlights housing insecurity and the need for aggressive action.

POWER MORTGAGE Pg. 118. Mortgage Rates Need to cool down Right Now and this is why. Pg. 120. FHFA Extends Forebearnace period to 18 months.

POWER HEALTH Pg. 122. About Autism Awareness Day. Pg. 126. As Need for Mental Health Care Surges, A Funding Program Remains Underused. l

FROM THE EDITOR

pril is here folks. The first quarter in 2021 is down now. Three more to go to wrap up the year. It feels too early to mention this. So far so good I’d say. But wait, what an eventful March. Let me draw your attention away from real estate for a while. Did you see our able Vice President, Kamala Harris walk right past the saluting military to board the Airforce One without giving them a salute back? Yes, it happened that Kamala skipped the military salute. The most rather fascinating thing is that it happened to the least-expected person. Anyway, we all make mistakes, don’t we? Moving on, March was also very interesting when it came to the real estate market across the country. The U.S. Census Bureau announced the other day that after a near 10-year high in January, new home sales in February dropped 18.2%, representing the sharpest month-over-month decline since 2013. Can you imagine that! On the other hand, buyer demand for new houses is still on the rise. Data from the US Census Bureau further showed that new home sales surged by 8.2% on a year-over-year basis. How about housing supply? With the current outlook of things, we would need approximately six months of housing supply to strike a more balanced real estate market between home buyers and new homes for sale. Elsewhere, the 10-year US Treasury yield decreased towards the last weeks of March. We all know what this means to the mortgage market. When the yield drops, so do the mortgage interest rates. Interest rates are still low, which means, you have a good opportunity to get a mortgage and get yourself and your family home. Moving on, I’m so excited April is finally here. We all know what this month means for the housing industry and especially for the minorities. April marks the National Fair Housing Month, which celebrates the passage of the Fair Housing Act in April 1968. This act prohibited discrimination in the sale, rental, and financing of housing based on race, color, national origin, religion, and gender, while California extends the protections to marital status, sexual orientation, ancestry, source of income, and for arbitrary characteristics such as age or occupation. 6

THE POWER IS NOW MAGAZINE | APRIL 2021

April is the month to remind everyone that the principle of fair housing is not only a state and national law but also a fundamental human concept and entitlement for all Americans.

New Jersey, Arizona, and the larger Inland Empire. You’ll also read more on how environmental racism is occurring in the US and how you can navigate foreclosures in the face of a pandemic.

There is an amazing lineup of events to mark Fair Housing Month, which I’m eagerly looking forward to.

Meanwhile, The Power Is Now Media, Inc. is a company focused on educating and providing information surrounding real estate including acquisition, management, and financing real estate. For consumers, we are a resource that will answer all your questions concerning real estate, while for real estate professionals, we’re a platform that will help you demonstrate your expertise and facilitate your brand growth.

On the cover of this month’s edition is the phenomenal woman Marcia Fudge, the current secretary of Housing and Urban Development, nominated by the President Joe Biden in December 2020 and approved on February 4, 2021, by the Senate Banking Committee. Fudge was sworn in to the office on March 10, and as the HUD secretary. You’ll find more about this great woman in the cover story. Moreover, this issue brings you useful insights, trends, and market predictions from various markets including Florida, Maryland,

WWW.THEPOWERISNOW.COM

ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.

APPARENTLY, “ENVIRONMENTAL RACISM” IS A THING IN AMERICA: HOW ENVIRONMENTAL RACISM LEAVES THE VULNERABLE BEHIND

In his book ‘Dumping in Dixie,’ Robert Bullard describes environmental racism as “any policy, practice or directive that differentially affects or disadvantages (where intended or unintended) individuals, groups or communities based on race.” In other words, environmental racism refers to how neighborhoods occupied by minority groups—often populated primarily by people of color and members of lowsocioeconomic backgrounds— are burdened with disproportionate numbers of hazards including toxic waste facilitates, garbage dumps, and other sources of environmental pollutions and foul odors that lower the quality of life, leading to different diseases and cancers. Due to this, as 8

the fight with climate change worsens, minority communities are disproportionately affected. In the richest country in the world, the U.S., racism seems to be rooted everywhere. From

unequal job opportunities to legal injustices, and now we’re talking about environmental racism. In the US, certain vulnerable communities— especially African-Americans and other indigenous groups—

THE POWER IS NOW MAGAZINE | APRIL 2021

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ost of us understand the environment as a force of nature that cannot favor or disfavor anyone or any groups of people. However, like all things on this planet, the environment is subject to human influences. Unfortunately, these influences often tend to lower their hands to the worsts of our society including racism and classism which ultimately creates environmental racism. What is environmental racism?

The health effects brought by the continuing environmental racism in the US are staggering. African-Americans are 75% more likely to reside in close proximity to oil and gas facilities which emit toxic pollutants in the air. As a result, these communities record higher rates of cancer and asthma. Research revealed that African-American children are twice as likely to develop asthma as their peers. According to 2016 data from Healthcare Research and Quality, out of every 100,000 kids admitted to the hospital for asthma that year, those of Asian and Whites origin were 47 each, 82 were Hispanic, while 223 were AfricanAmerican. There has long been a lack of political will WWW.THEPOWERISNOW.COM

to protect the communities most harmed by pollution – and the climate crisis could exacerbate these inequalities, as well as create new ones.

further contribute to the climate crisis – which in turn disproportionately will hurt the minority communities and lowerincome communities.

WHERE DID ENVIRONMENTAL JUSTICE COME FROM? According to environmental justice advocates, the inequalities caused by environmental racism are not coincidences. Instead, they stem from a long history of racist and discriminatory practices that gave a nod to industries to pollute with impunity in regions occupied by minority communities.

GETTING ENVIRONMENTAL JUSTICE BACK Environmental justice advocates are hoping to get some support from the Biden administration, which intends to deliver 40% of the benefits of federal investments in clean energy and infrastructure to the minority communities. As one of his first actions in office, Biden created two new environmental justice councils in the White House. The nomination of Deb Haaland, a New Mexico congresswoman and member of the Laguna Pueblo tribe, to lead the Department of the Interior could mean a radical transformation of US priorities concerning conservation and Indigenous rights.

For instance, in Brooklyn, the electric and gas utility National Grid is constructing a pipeline that will run through Bushwick, a heavily industrial neighborhood home to many Latinos, and Brownsville, a majority African-American neighborhood that also has the highest adult asthma rate in New York City. The construction of this pipeline poses a public health risk, and it will also

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have been fighting for the right to clean, safe, and healthy environments for decades. Generations of systemic racism mean that access to clean, air, clean water, and proper sanitization in the US are not guaranteed to the minorities.

Work cited. https://www.theguardian. com/us-news/2021/feb/11/ environmental-racism-americasdirty-divide. l

insideclimatenews.org

NOW THAT TRUMP’S ASSAULT ON THE ENVIRONMENT IS OVER, CAN WE GET BACK TO WORK!

Trump would cement “as many environmental attacks as possible to make it harder for the next president and other lawmakers to undo the damage.”

To exacerbate the matter, the Trump administration also undertook a series of anticonservation attacks that left profound damage on environmental conservation efforts started by the former administration. The most notable changes took place during the last days of Trump in office, where experts argued that

True to that, Trump did as predicted earlier. First, the Trump administration shook down and sold off the Arctic refuge to pave way for oil and gas drilling less than two weeks before the November 2020 election. Moreover, the Trump administration finalized changes that were meant to weaken the National Environmental Policy Act (NEPA), which would make it easier to keep the public in the dark about government projects and create more loopholes for certain activities to escape environmental review.

ith the Trump administration’s fouryear environmental protection and conservation assault vanished along with his presidency, the restoration process must now kick off. The world watched with dismay as laws, policies, science and the conservation of waters, air, wildlife, and public lands were systematically pulled down.

THE POWER IS NOW MAGAZINE | APRIL 2021

IS THE DAMAGE REVERSIBLE? While the damage may be profound, there is a big chance the new Biden administration can reverse all these harms, restart fundamental environmental policies and programs, and restore the government’s commitment to environmental protection, lands and waters conservation. But to achieve all this, there is one key thing needed— a restoration plan. Early last year, a team of diverse environmental leaders with government, nonprofit, private sector, and academic experience from across the country convened in a virtual meeting entitled The Restoration Project. After several months of studies, the team created a carefully researched and prioritized list of top 100 important actions to be undertaken to restore America’s environment. The plan was handed over to the Biden-Harris transition team in November 2020. As of today, some of the plan’s top priorities WWW.THEPOWERISNOW.COM

have already been achieved, including rejoining of the Paris Agreement (number 1 in the plan), issuing executive orders on meeting climate change goals (number 2), and halting the Keystone XL pipeline (number 25). However, other restorative actions could take longer to accomplish, especially where the former administration locked in changes with new federal regulations. One such instance is the issuance of final regulations by EPA that weakened fuel economy standards for cars and trucks from 54mpg to 40mpg by 2025, which is set to worsen the climate crisis. Moreover, EPA finalized the “transparency rule” that is set to restrict the agency from considering scientific studies that do not reveal raw data, including confidential or personal identifying information.

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Do you remember the forcing of a Utah highway through protected wildlife habitat and public lands orchestrated by the Trump Bureau of Land Management? Indeed, the Trump administration planned to force a highway through both the reserve and the Red Cliffs National Conservation Area; a project could disrupt habitat for the tortoises, whose numbers have declined by some 90 percent since the 1950s, and fragment popular trails used by thousands of people each year. Those are just a few of the numerous anticonservation attacks launched by Trump’s four-year rule.

These reversals were prioritized in the Restoration Project, where the team recommended either they be repealed by Congress or a new rule be promulgated, a process that will take several years. The Restoration Project also calls for a restoration of protection for special places that we all thought were legally protected from development and impact, including road building and logging in the Tongass national forest of Alaska, drilling in the Arctic national wildlife refuge, and oil and gas development adjacent to Chaco Culture national historical park. Work cited. https://www.theguardian.com/commentisfree/2021/ feb/01/trump-assault-on-the-environment-is-over-thisis-how-to-restore-it.

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U.S. ECONOMY CONTRACTS IN 2020; WORST PERFORMANCE SINCE 1946

he year 2020 will be remembered for many things. First 2020 will be remembered as the year when the United States of America had its first Vice President as a woman, Kamala Harris. But more than that, 2020 will be remembered as the worst year in the history of mankind. The year that saw a deadly virus swept the whole world indiscriminately, the year that saw millions of people lose their jobs and million others lose their lives to the pandemic. Indeed, 2020 has a special place in our history. The United States was also not spared from the pandemic. According to the commerce department, the U.S. economy contracted sharply at a steady pace hitting its rock bottom; the worst performance since World War II. The snapshot from the commerce department of the fourthquarter GDP shows the recovery from the effects of the pandemic losing steam. While the recovery is underway, momentum significantly slowed as the year 2020 wound up, ushering in a new 12

administration amid a resurgence in the COVID -19 cases and overwhelming exhaustion of early $3 trillion in relief money from the government. The prospects of recovery are much hinged on the vaccine that is already available. The president has already unveiled a plan that is going to cost us $1.9 trillion. In 2020 alone, the economy contracted 3.5%, following a 2.2% growth in 2019, and this decline was the first annual decline in GDP since the 2007-09 Great Recession. Looking back, the fourth quarter’s GDP increased at a 4.0% annualized rate as the virus and the lack of an additional spending package lopped consumer’s ability to spend, partially overshadowing the robust manufacturing and housing market. LOOKING FORWARD Surprisingly, the economy is performing much better now. Experts had predicted a slowdown in 2021, the cautiously positive outlook is based on THE POWER IS NOW MAGAZINE | APRIL 2021

their review of some key economic indicators including the GDP, Unemployment, and inflation rates. Perhaps part of this growth stems from the fresh influx of cash injected into the economy in the last quarter of 2020. The Manufacturing data Monday showed the sector is at its highest level since 2018. The report from the Institute for Supply Management confirms what most experts in economic matters projected, in that the output to start the year is far better than the low single-digit growth many had been predicting in late 2020. Even more shocking is data from the Atlanta Federal Reserve which tracks data in real-time and is estimating that changes in GDP are now at a 10% gain for the first three months of the year. Furthermore, another report shows that personal income surged 10% in January following the $600 stimulus checks from the government. The household wealth also increased nearly $2 trillion for the month of January while spending rose just 2.4%, or $340.9 billion. “The V-shaped recovery in real GDP will remain V-shaped during the first half of this year and probably through the end of the year,” Ed Yardeni of Yardeni Research wrote in his daily note Tuesday. “However, it will no longer be a ‘recovery’ beyond Q1 because real GDP will have fully recovered during the current quarter. Thereafter, GDP will be in an ‘expansion’ in record-high territory.” DEFYING THE ODDS BUT… Many economists had projected that the economy would regain its losses from the COVID-19 only until at least the second or third quarter of the year. However, a combination of a resilient system with stimulus injections into the economy has helped boost the recovery. “With strong federal fiscal support and continued progress on vaccination, GDP growth this year could be the strongest we’ve seen in decades,” New York Federal Reserve President John Williams said in a speech last week. What remains unclear at the moment is WWW.THEPOWERISNOW.COM

whether the $1.9 trillion spendings from the government is really necessary. What we are now experiencing is an economy that is poised to show the fastest annual growth since the 1980s, and additional expenditure seems isn’t that needed right now, especially when you consider the fact that the government ran into a $2.3 trillion deficit this year. While the economy is indeed going well, frailties remain and chief among them is the gap in unemployment, especially in the service sector. According to the U.S. Bureau of Labor Statistics as of January this year, there were 8.6 million fewer people employed than there were a year ago and since then, about 4.3 million people have left their work. That is not to say that the unemployment rate hasn’t changed since the pandemic hit. There has been a significant drop in the number of unemployed people from the highs of 14.8% at the height of the pandemic to 6.3%. Still, some sectors such as the hospitality sector have fallen by more than 3.8 million from a year ago, with the jobless rate stagnating at 15.9%. “The most glaring issue with where we stand now has to be the labor market. We still have [nearly] 10 million jobs which are just simply missing,” said Troy Ludtka, U.S. economist at Natixis. “You’re going to see a situation in the coming years, looking back to this moment, where official statistics on things like food insecurity, poverty, and inequality are going to reach generational highs.” “The good news is that we are very quickly rebounding, and that is a sign of great promise,” he said. “We’re going to see an economy back to pre-pandemic levels of output, we’re going to see a situation in which unnecessary economic insecurity is mitigated.” There is still some good news coming out of the job market. First, the job postings have rebounded and economists are speculating a pent-up demand that vaccinations and falling COVID-19 cases will bring about the needed job growth. l

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oon after his inauguration in January, Joe Biden began his tenure by signing a series of executive actions to combat climate change, promising to restore scientific integrity and evidencebased policy-making. Just a week into his presidency, the president called climate change an “existential threat” calling all stakeholders to rise up and take action. “We can’t wait any longer. We know what to do. We’ve just got to do it.” The president’s ambitious plans are to see the country meet its urgent demands for clean energy by 2050. The executive orders he signed into effect will tackle the climate crisis in America transitioning the country to a clean energy economy. the president’s plans also ensure that millions of Americans and business are empowered to lead the nation in a clean energy revolution that will achieve a carbon-free power grid by the year 2035, thus putting the country “on an irreversible path to a net-zero economy by 2050”, the White House said.

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“Today’s actions advance those goals and ensure that we are tapping into the talent, grit, and innovation of American workers, revitalizing the US energy sector, conserving our natural resources and leveraging them to help drive our nation toward a clean energy future, creating well-paying jobs with the opportunity to join a union, and delivering justice for communities who have been subjected to environmental harm,”- the White House. CAN JOE BIDEN MAKE GOOD ON HIS PROMISE? THIS REMAINS TO BE SEEN! Whether he will be able to achieve his climate agenda- which by the way is the most aggressive agenda to ever be put forward by a leading U.S. Presidentremains to be seen considering the fact that the president will be trending facing a powerful formidable Republican opposition in the congress. But so far, the actions he 16

BIDEN TAKES STEPS TO PUT THE US ON AN ‘IRREVERSIBLE PATH’ TO A NET-ZERO ECONOMY BY 2050

has taken, rolling back on the crisis that Trump’s administration left behind seem like a step in the right direction. However, most experts on climate matters concur that the president still has room to operate and materialize his agenda, including exerting his authority over government agencies, bending them to his will, or using a more subtle approach like appealing to the ‘good’ demeanor of both the parties in the Senate to push his legislature to the congress. According to Vicki Arroyo, the executive director of the Georgetown University’s Climate Center, President Joe Biden is really the first president in the history of the United States to take a lead on Climate. And while this is exciting, Vicki suggests exercising caution moving forward. Right now, we cannot say that the Capitol is fully on board with this agenda and global warming still remains a huge partisan issue, bringing out the deep divide in the house between the Republicans and Democrats. “That is going to limit what Biden can accomplish”. Vicki Arroyo. RE-ENTERING THE PARIS AGREEMENT Remember the drastic move by the Trump Administration to pull out of the Paris Agreement on November 4 last year? Well, it would seem that the Biden-Kamala administration came at such an opportune time to save the country and rid it the shame Trump put it through. Other players partaking in the Paris Agreement are already preparing to present their views, suggestions, and rounds of commitment during this year’s United Nations Climate Conference in Glasgow, UK. BUT WHAT IS THE PARIS AGREEMENT REALLY? The Paris Agreement is a landmark deal that was struck in 2015 and it aims to suppress global warming to “well below” 2°C above the preindustrial temperatures. Plans to back off from the deal were made clear in 2017 by Trumpremember, the United States is the second-largest greenhouse gas emitter and withdrawing from WWW.THEPOWERISNOW.COM

the agreement really curtails all efforts by global leaders to combat the harmful gas emissions. Re-entering the Paris Agreement sets the stage for Biden’s climate agenda as it gives an important boost to the negotiations in November. THE CONGRESS WILL BE BIDEN’S HAVEN During the recent presidential elections, the Democrats failed to wrest U.S. Senate control and while they managed to retain control by a small margin, Republicans still hold the majority seats in the Senate. Even though the Democrats won the January run-offs in Georgia it still didn’t change a thing. Congress today is narrowly divided between the two main parties, which makes it a challenge for Biden to pass any major bills. Just like Obama, Biden took his first opportunity to advance his agenda through Congress by introducing a stimulus bill. However, most experts argue that the bill isn’t really necessary as the economy is doing much better one year since the COVID-19 hit. Biden’s team has made the climate agenda a priority and a top agenda of his economic plan. this can only mean one thing; a stimulus package will be really necessary to increase investments in low carbon and green energy infrastructure. Let’s go back to Obama’s administration, soon after the stimulus package was introduced, the administration worked hand in hand with the congressional Democrats on legislation to curtail the greenhouse gas emissions by 2050, but the bill failed to pass the Senate in 2010. taking lessons from the past, Biden’s safest path would probably be to look for ways to advance a less sweeping climate measure. such a measure that would garner the support of various industry stakeholders would be one that sets the requirements for a cleaner-electricity generation. Right now, most utility companies have to contend with the many requirements for how they use or intend to use and implement renewable energy to meet consumer’s electricity needs, federal legislation that aims at simplifying things and may level the playing field for all would be a welcome for all people.

A BREAKTHROUGH? MAY BE… getting such a vigorous plan won’t be easy to pass the senate, but one of the biggest opportunities that the president has could be a bipartisan bill that aims at creating a carbon tax to reduce greenhouse gas emissions. This is an idea that already has backing from many conservatives and progressive business leaders who are deeply concerned about the climate. A proposal from the Climate Leadership Council based in Washington D.C. suggests that taking things slowly at first and progressing as we head into the future; that is, starting with a modest U.S. $40-per-tonne tax on carbon dioxide emissions and later increasing the amount over time. The proceeds would then be given back to the taxpayers. Since the Democrats have a strong footing in the Senate, following the Georgia runoffs, such legislation would not be impossible to pass the chamber. But, regardless of what happens in Congress, the president has the power to do as he wishes. He could exercise his executive power and enforce his climate agendas across the country’s agencies. Let’s take an example; if the president wishes, he could instruct the Department of Energy to raise the energy-efficiency standards for appliances or order the Interior Department to hasten the processing of the Federal permits to build any infrastructure that supports renewable energy. “There’s no need for Biden to wait,” says Tim Profeta, who leads Duke University’s Nicholas Institute for Environmental Policy Solutions in Durham, North Carolina. “There’s a lot the president can do using his own authority, starting from day one.” One of the most authoritative powers that the president has right now when it comes to the issue of climate change is regulating greenhouse gas emissions directly through the EPA. Since 2017, when President Trump took over the government most of the work that he did in regards to the EPA was to reverse most of the environmental regulations Including the Trio Obama-era climate policies that were aimed at curtailing emissions from vehicle power plants in oil and gas facilities. It seems that right now what Biden will do is immediately move to restore order and strengthen the efforts by EPA and starting over or maybe 18

making new rules similar to the rules of Trio Obama-era. Looking ahead it’s a positive thing that the Biden administration has already started implementing its climate agenda by integrating the country into the Paris climate agreement. LOOKING FORWARD Rejoining the Paris agreement seems to be the easy part, now what remains is Biden’s plan on his climate pledge which he’ll then present at this year’s conference in Glasgow. Remember under Obama’s administration, States had initially committed to cut the greenhouse gas emissions by at least 26% below the 2005 levels by the year 2025. The new challenge right now is making sure that the United States pledge is both strong and credible. This is according to Joseph Aldy, an economist at Harvard University Cambridge, Massachusetts. According to Joseph, the United States government has already lost credibility on many fronts as a result of the rollbacks from Trump’s administration. He adds that if Biden wants to take a leadership role in the Paris process and maybe persuade other countries to do the same he will need to do extra in terms of convincing the global community that any of his climate agenda will be effective and will not be easily reversed in maybe 4 to 8 years to come. “Our counterparts around the world will be looking very closely at what we are doing.” The Paris agreement is not the only thing that Biden has to worry about. Remember right now the country is so polarized and rallying this polarized population to be behind his climate agenda will not be an easy task. In short, Biden faces an uphill task. However, he is an experienced Negotiator which puts him in a very unique position to negotiate his way through the political aisle in the Senate. References; https://www.nature.com/articles/d41586-020-03250-z https://economictimes.indiatimes.com/news/international/ world-news/biden-takes-steps-to-put-us-on-irreversiblepath-to-net-zero-economy-by-2050/articleshow/80483828. cms?from=mdr

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TRACING THE DISCONNECT IN THE AFFORDABILITY CRISIS IN AMERICA: HOMEBUILDERS FACE RISING COSTS AND SLOWER SUPPLY CHAINS DUE TO COVID-19

he Coronavirus pandemic has not only affected the health of Americans but also their livelihoods. While primary sectors in the economy such as transportation, health, agriculture have been dealt a huge blow, the housing market has not been spared from the crisis. The pandemic has hit several citizens hard, making it difficult for them to pay up even the main bills such as utilities, rent, internet access, and other varieties.

Since homebuilders do not have the opportunity to build a house, there is a shortage in supply while demand multiplies. In the meantime, demand will exceed supply which will lead to a scarcity of rental homes. Frankly, this is the perfect time for landlords to make a fortune. It is simple economics: whenever demand exceeds supply, price steps up. Therefore homeowners will pass higher prices to the rentals, which will worsen the affordability crisis.

The measures against the spread of coronavirus in the USA have a far-reaching impact on the economy, which affects the housing market. Despite the high demand for houses and low-interest rates, it’s a watershed moment for homebuilders because of the low supply and rising cost of materials, unavailability of laborers, and inadequate supply of lumber and other building materials, which has added thousands of dollars to the construction of houses. These obstacles have deprived the homebuilders of the advantage of enjoying this spring home buying. Then how does this affect affordability?

Notable figures have commented on this crisis, and their comments are reported below.

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The head economist, Ali Wolf, at housing market data tracker Zonda Economics predicts that home sales will be 5% greater than the previous year (2020). That indicates a tremendous fall in the growth rate from the 20% increase carried forward from 2019. Ali Wolf later added that ”if more houses had been built, more home sales would have been possible.” That means that home sales are positively related to its availability.

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Robert Dietz, the head economist, National Association of Home Builders is yet to publish his housing forecast but expects the rise of home sales at a slower pace amid robust demand because of the inconveniences surrounding procuring a new home. Despite claiming that the housing market will grow, he stated that its growth would be relatively lower than in the previous year - since the house affordability problem has been aggravated by rising costs of housing materials. This inflation in the price of materials has caused the value of an average single-family home to rise by more than $24,000. ”Costs are rising, materials are showing up late, and particularly it’s acute in the lumber market,” he lamented. Carl Reichardt, a BTIG homebuilding analyst, said: ”Rapid home sales will continue unless there is an availability of land and materials.” Since the price of cement, lumber, and other construction materials are not predictable, the price instability has exacerbated over the previous year because of the pandemic, resulting in the inflation of construction materials and delay in the supply chain. According to the National Association of Realtors, the housing market bounced back last summer after hitting the rock in the spring during the pandemic outbreak. The sales of homes in the US reached their peak in the previous year since

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2006(more than a decade ago). Conclusion Although there is plenty of demand for houses accompanied by low-interest rates, buyers still face several issues with home buying. These issues arise due to high material costs and delays in the supply of lumber and other construction materials. While some homebuilders stopped purchasing land amid the uncertainty surrounding the pandemic and housing demand in the previous year, some took the courage to secure more land in anticipation of robust demand in the following year. However, homebuilders who have their materials ready will take advantage of this critical period than those that fail to take risks.

References https://www.mrt.com/business/article/Builders-grapple-withland-shortage-soaring-15979135.php https://africa.businessinsider.com/design/how-2020-brokethe-housing-market-so-many-homes-are-selling-that-we-couldrun-out-of/d550b45 https://ca.finance.yahoo.com/news/u-homebuildersconfidence-slips-january-150221659.html

WHY ARE MILLIONS OF HOMES UNDERINSURED AGAINST NATURAL DISASTERS AS CONSTRUCTION COSTS KEEP RISING? Despite the dangers attached to not getting a home insured against natural disasters, there are still up to millions of homes out there that do not have the luxury of this insurance. That is gradually becoming an issue of concern. These homes do not have any protection and so are vulnerable to extreme weather conditions that may lead to devastating damages, which include erosion, floods, wild-fire outbreaks, as well as hurricanes.

continue to be on the rise. That means that the expenses incurred while rebuilding or building a home continue to increase, which has been the case for the last three to four years. While all of these are happening, there is also the issue of unavailability or scarcity of labor. You can add new tariffs on materials to the list as well. This ever-growing list of factors plays a huge role in affecting the insurance status of THE POWER IS NOW MAGAZINE | APRIL 2021

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hese conditions continue to cause havoc and expose homes to risks of suffering damages, especially uninsured and underinsured ones. According to a recent study, over half of a country’s homes are underinsured. It is worrying because not only does it affect homeowners or home dwellers, the country’s housing stock market is also going to take a hit. Another not-so-friendly statistic is that despite the underinsurance hiatus, construction costs

homes. If a lot of money (which • is more expensive than usual) continues to be spent on either building a new home or rebuilding an already-existing one, reluctance to purchase insurance would come straight into the picture.

Inadequate Information/ Misinformation: Some homeowners do not get informed adequately on the plans from which they can choose. Many of them end up deciding on lower plans because they’re not well-informed and want to cut costs. Increased Cost Of Materials: Because the cost of construction materials keeps getting higher, it becomes harder for people to opt for standard insurance plans. Most people would choose to opt for less costly insurance coverage, which means that the property would be underinsured.

Also, the increasing cost of construction materials • would have a direct effect on insurance companies’ policies. That means that if an insurance company realizes that you are insuring a property built with expensive materials, they may have to inflate the cost of insurance on your property -compared with a home that was built with materials that are not so expensive. Conclusion Homeowners whose properties It will always be difficult for any homeowner who suffers a farare affected by natural

reaching loss or setback - in terms of getting their properties damaged by natural disasters to rise to their feet once again. However, though it may cost a lot, it is advisable to procure standard insurance coverage for your home, as that may go a long way in providing some form of indemnity against any unforeseen events. Also, with the insurance, you are promised rest of mind to a large extent compared to when you do not insure or expose your property to underinsurance. References https://www.cnbc.com/2019/05/03/ millions-of-homes-are-underinsuredagainst-natural-disasters.html https://lohduri.blogspot.com/2019/05/ millions-of-homes-are-underinsured.html https://www.lidoconsulting.com/risein-natural-disasters-leads-to-insurancedeficits/

disasters will suffer huge losses that they may not be able to recover from, depending on the gravity of damage(s) incurred. These owners will also stand the risk of not being able to meet up with their mortgage demands. So why are these homes left underinsured? Let us take a look at some reasons. •

Scarcity Of Labor: Because labor continues to be scarce, when people use more expensive alternatives to build or rebuild homes, it does not immediately occur to these people to opt for large insurance plans. That will mean that the home will be underinsured.

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NAVIGATING FORECLOSURES IN FACE OF A PANDEMIC: IT’S NOT AS BAD AS IT SEEMS!

ust 214,323 properties were foreclosed last year or at least were in some sort of foreclosure stage which is surprisingly low compared to the previous lows set in 2019. ATTOM Data Solutions’s study suggests that despite the recession in 2020, the U.S. housing market set the record for the lowest foreclosures ever. Another separate study from Black Knight, a mortgage data firm, shows that foreclosure starts dipped 67 percent from what was recorded in 2019, while the sales of the foreclosed properties dropped 70 percent compared to 2019. IT’S NOT ALL ROSY THOUGH! Well, the data from ATTOM may seem all rosy but 24

it’s not. In the face of the pandemic, about 2.15 million American homeowners were more than 90 days past due on their mortgages. This shows a 1.7 million rise during the pandemic compared to 2019. The numbers of foreclosed homes in 2020 fell sharply, not because the country was doing well economically, but because most lenders stopped taking back properties. Soon after the pandemic hit the country last March, the federal and states government took affirmative actions pausing the default filings by the lenders. Additionally, the CARES Act came as a saving grace to most people calling for mortgage forbearance, in an attempt to keep struggling homeowners out of the streets. THE POWER IS NOW MAGAZINE | APRIL 2021

skyrocket, beyond anything we’ve seen before. The Post COVID rounds of foreclosure might be a lot more mild compared to the pre-covid and the mortgage crisis of 2008 to 2010. “While it’s still highly unlikely that we’ll see another wave of foreclosures like the one we had during the Great Recession, we really won’t know how big that backlog is until after the government programs expire,” says Rick Sharga, an executive vice president at ATTOM Data Solutions. By far, this recession is different from the Great Recession which was marked by a frenzy of foolish lending, recklessness in the borrowing behavior, and over-speculation of the housing market, setting the housing market for a severe downfall. Ultimately, it was inevitable that millions of people would lose their homes. 2020’s recession, by contrast, had some of the tightest credit standards, and to add to that, the housing market was relatively very strong. A CUSHION AGAINST FORECLOSURES In the face of “evil” - that was the COVID-19 Pandemicsomething positive happened. The real estate market was performing relatively well with home prices rising steadily. While bad news to the desperate homebuyers, homeowners who find themselves unable to pay off their mortgages when the foreclosure moratorium ends, will likely sell their homes at a profit, rather than their homes sinking into foreclosures.

Once the foreclosure moratorium ends, the foreclosure rate will WWW.THEPOWERISNOW.COM

“If they have equity, they can always sell off the house and pay the mortgage,” says Ralph DeFranco, global chief economist at mortgage insurance company Arch Capital Services. “It’s not a great outcome, but it’s less terrible than letting the bank take it and sell it.” Today, it is agreeable that most lenders do not want a repeat of what happened during the great recession. Lenders are now using the soft approach, positioning themselves for a more cooperative, less punitive approach. References: https://www.bankrate.com/mortgages/foreclosures-fell-to-record-low-in2020/#:~:text=Properties%20with%20foreclosure%20filings%20in,was%20 2.23%20percent%2C%20in%202010. https://dsnews.com/daily-dose/01-29-2021/navigating-new-jerseyforeclosures-in-the-face-of-a-pandemic

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In January this year, the Federal Housing Finance Agency extended the foreclosure moratorium to Feb 28. While Joe Biden made a plea to the agency to further extend the halt on the foreclosures past February and to continue forbearance for the loans secured by the GSEs.

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IT IS STILL VERY HARD TO GET A MORTGAGE! BUT IT’S GETTING EASIER

efore the year 2020, no one thought that the mortgage rates steadily creeping towards 3% would be a bad thing. Fast forward, a year later, everything seems relative!

The rate for the 30-year mortgage plunging to 2.65% at the start of the year. As of early March, the rate was at 3.23% and seems to be steadily rising. It is safe to say that right now, we are trending in a rising rate environment. Even though the rates are ridiculously low, at some point, we all knew the ever-dropping rate would come to an end, we just didn’t know when!

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LET’S TALK ABOUT GETTING A MORTGAGE TODAY IT IS TOUGH!

Buying a home or simply refinancing in 2020 was getting tougher by the day, and most consumer advocates cautioned that the fallout from the pandemic could worsen everything, hurting the homeowners so badly. In the face of a pandemic, most big lenders in the country were already making changes in how they operate, raising further the bar for the borrowers. JPMorgan Chase raised its borrowing standards for mortgages, requiring that borrowers attain a 700 credit score and a 20 percent downpayment. A week later, Wells Fargo raised its bar to 720. “The large banks, including JPMorgan Chase, are moving significantly to looking at credit risk and looking at loan portfolios where they need to assess potential delinquencies and possible charge-offs,” said Ken Leon, director of equity research at CFRA Research. Data suggested that more lenders were putting strict measures like these into practice. There is perhaps a good reason for this, including cushioning against a housing crash. Mortgage Bankers Association reported that in March last year, the mortgage credit availability decreased sharply.

THE MORTGAGE LANDSCAPE IN 2021

Moving forward, we expect upward pressure on the rates. Right now we have a democratcontrolled congress following the win in Georgia. This effectively split the congress in a 50-50, but Vice President Kamala becomes the tiebreaker, which means congress will be democrat led by a very thin margin.

BUT WHAT DOES POLITICS HAVE TO DO WITH MORTGAGE RATES?

Everything! It is a big deal as a Democrat-led Congress will pass stimulus and other spending deals more easily, which is critical for the rates. Stimulus checks are not a bad thing, after all, it tends to lift the economy. When consumers spend more, businesses start hiring more people, unemployment rates drop but… at the risk of inflation rising. A hot economy may lead to inflation, which in turn is bad for the mortgage rates. Additionally, assuming the market recovers faster than expected-and all signs point to this, certainly, the FED will end the rate-reducing programs it launched post-COVID. In addition, when the government goes big on expenditure, this means larger bond issuance. The mortgage rates are tied to bond prices and if the government floods the market with bonds, their

Most lenders cited the big drop -16 percent- to liquidity as most investors in Jumbo mortgagebacked bonds pulled back. “There was a reduction in the availability of loans with lower credit scores and higher LTV ratios, and the largest pullback came from the jumbo and non-QM space,” said Joel Kan, an MBA economist. Non-QM is loans that fall outside the criteria for government purchase. “Lenders are making credit criteria changes to account for the increased likelihood of forbearance and defaults, as well as higher costs.”

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prices plummet and their interest rates rise. Simply put, the more the government spends, the higher the mortgage rates. Remember Biden’s $1.9 trillion plan…?

WHAT ABOUT THE VACCINE ROLLOUT?

Certainly, this is another factor that we have to consider as it has an effect on the mortgage rates. Most experts agree that the vaccines will be enough for every U.S. citizen adult by the summer of this year. When this happens, we reach a state called “herd immunity.”

markets to flee any mortgage that is backed by securities. This further means these investors have to be drawn back in by the higher yields. The higher rates are then passed on to the mortgage consumers. Right now, with all these factors at play, the rates have started rising and it is highly unlikely that they will go down to the mid-to-high-2s. This means at 3.23%, this might be the best ever rate we’ll see this year.

Also, the caseload from the virus has dropped significantly, from 250,000 new infections daily to about 60,000 in a day in mid-February. We are approaching a new confidence level where everything is seemingly returning pre-covid period. When this happens, we expect to see a spike in travels, gatherings, and people going back to their offices, which could, in turn, lead to a spike in more than a year’s worth of pent-up demand for all kinds of services and good that was rendered dormant. All these activities could lead to high inflation, and we know the effects of inflation on mortgage rates; these two are mortal enemies. What you need to know about the relationship therein between inflation and mortgage rate is that the bonds that usually back the mortgage rates are very sensitive to inflation. In an environment where inflation is high, the bonds lose their value. This causes investors in such

Data Sources: https://themortgagereports.com/32667/ mortgage-rates-forecast-fha-va-usdaconventional https://www.noradarealestate.com/blog/ housing-market-predictions/#:~:text=In%20 2021%2C%20mortgage%20rates%20 are,will%20average%203.3%25%20in%20 2021. https://www.housingwire.com/articles/2021means-new-challenges-for-mortgage-lending/ https://www.forbes.com/sites/ advisor/2020/07/21/lenders-are-makingit-harder-to-get-a-mortgage-hereshow-borrowers-can-improve-theirodds/?sh=5734bc776598

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I THE BUY THE BLOCK MOVEMENT: BUILDING BLACK COMMUNITIES WHILE FIGHTING GENTRIFICATION! A BLOCK AT A TIME

n the current age of growing wealth inequality, and gentrification in the US, it’s super easy for the minority communities to feel impotent in the face of rapid change. This was the case until someone eventually did something. In 2017, entrepreneur Lynn Smith opened doors for Buy The Block, a crowdfunding intermediary platform connecting real estate developers seeking to crowdfund any kind of property. The movement is the only African-American owned platform in the US that is dedicated to making group investments across the country more accessible. With the focus on the people of color across the country, the movement is currently on track to raise millions of dollars in funding for development projects in the minority communities, especially the communities of color. “Indeed, we have loads of challenges, but I am determined to educate our community and make this work… thanks to everyone out there, that united as one to embrace and support this unique concept,” stated Lynn Smith. Buy the Block is on a mission to change the face of crowd-investing real estate. The movement’s founder, Smith has invested in real estate since she was 21. This means that she has had firsthand encounters on how difficult it can be for small investors to get financing. She also witnessed the North Miami neighborhood where she grew up was drastically altered by development without the residents’ input. These represent some of the experiences that compelled her to create a solution— Buy The Block platform.

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“I wanted to be able to offer an alternative financing source for developers and allow the community to be the financiers for these deals,” Smith says. “As investors, we don’t always necessarily get access to these deals,” she adds. “XYZ developer that we’ve never seen or heard of before comes in and before you know it, the whole neighborhood gets turned around.” Buy The Block platform, she says “allows individuals to play a role in their community. They can actually see their money being put to work, and potentially get a return or interest.” The Buy The Block initiative offers every AfricanAmerican an opportunity to invest as little as $100 and get a chance to connect with other investors, without forgetting the added advantage of aiding every member to purchase a piece of their first block. “Even a single $100 or $500 investment in an apartment complex in Detroit, for example, can help to turn a block and a community around,” she says. “There is empowerment in it.” ABOUT BUT THE BLOCK To start Buy The Block, Smith raised about $110,000 from 455 sponsors who donated money to a crowdfunding campaign she ran on BBnomics, a donation crowdfunding site owned by her. The crowdfunding campaign urged Americans to “Buy

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the Block and stop gentrification.” The movement, which is headquartered in Denver got its FINRA approval and opened its doors in October 2017. The platform handles Regulation Crowdfunding offerings open to all investors, and offerings under Regulation D, an exemption limited to accredited investors that has no limits on how much money can be raised. While Buy The Block initiative may have had a modest start, being the first African-Americanowned crowdfunding platform gives it undeniable symbolic power and economic potential — especially in commercial real estate, which has been described as ‘the least diverse industry on the planet.’ Buy The Block initiative is open to any type of project as long as it comprises any real estate aspect— may it be residential, business or industrial projects. Having such initiatives amongst our communities plays a major role in improving the lives of the under-represented communities by helping them to slowly build their intergenerational wealth.

Work cited. https://www.blacknews.com/news/buy-the-block-first-blackowned-real-estate-crowd-investing-platform-raising-millionsfunding-property-development-black-communities/.

t the height of last summer’s Black Lives Matter protests, Facebook came out and pledged about $200 million towards Black-owned businesses, creators and communities in its effort to provide substantial support that had been missing for ages. Fast forward to this year, Facebook is taking it a step further to cultivate a wide-reaching creative community by introducing a program called “We the Culture” on February 16, 2020, which they supported with a $25 million investment. The program targets to amplify the voices of Black content creators and their work to celebrate their influential culture. The new We the Culture community was curated by a team of passionate Black Facebook employees in pursuit to help Black visionaries share their creations with the rest of the world, while also providing a launching point for their professional careers. “We The Culture celebrates Black creativity,” co-founder Michelle Mitchell said. “I’m a Black creative myself — I’m convinced that a part of my desire to create and express is driven by a need to render myself less invisible in a society that does not always value Black people or credit Black culture for its massive impact on the world we live in.” “As someone working amongst an amazing group of Black employees and allies that daily contribute their ideas, labor, love and support, I wanted to help build the kind of program worthy of our community. This program provides financial support to give folks room to see what truly happens when they can to focus solely on their creative endeavors and invest in their businesses, alongside a kindred community of folks who have the same desires,” she added. The program started off with an inaugural class of more than 120 creatives including Danielle Young, Lauren “Sitting Pretty Lolo’ Spencer, Cameron J. Henderson, and Nneka Irobunda. The initiative has also incorporated programming for Facebook Watch in partnership with production companies focused on Black creatives. Among the first shows are “Chop It Up” with actress Storm Reid, “Asking for a Friend” hosted 32

FACEBOOK ACCELERATOR PROGRAM TO SUPPORT BLACK CONTENT CREATORS by actress and entrepreneur Vanessa Simmons, and “Mastery of Comedy” with media host Angela Yee. Be it music, art, poetry, original programming, food, or social justice, the new community “serves as a launch point for Black creators” and spotlights “the beautiful, layered and expressive voices shaping black culture and driving it forward,” Facebook said in a statement. “We The Culture is a multi-faceted initiative with the goal of elevating Black creators to share their vision and voice with the world for a broader community and empower them to build successful, entertaining, and sustainable businesses [and enterprises] across all of our apps,” says Dan Reed, the VP of Global Media, Sports and Equity Partnerships at Facebook. Besides getting funding for their content, Black creators will also be provided with partner management support, access to educational and training resources, marketing support, and tools for audience development. According to Reed, the goal is to “fully empower this group of up-coming and emerging creators to be successful on our platforms for a very long time.” The activities behind the jumpstarting of this accelerator program was motivated by a desire step up for the Black creatives and provide a creator-driven platform that leveraged the best of what Facebook has to offer. “Working with an all-Black design and social team, we had so much fun exploring the brand essence — working with creators for feedback and truly developing an “if you build it, they will come”-type program,” Mitchell concluded. “It was a massive, cross-functional team that was intentional with every aspect of the program from start to finish.” Work cited. https://www.blackenterprise.com/facebook-unveils-acceleratorprogram-we-the-culture-to-fund-and-support-black-contentcreator/. https://afrotech.com/facebooks-newly-launched-acceleratorprogram-we-the-culture-is-championing-black-voices-creators.

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WHAT YOU NEED TO KNOW WHEN YOUR PROPERTY IS IN DISTRESS Steve Peterson A property at its optimal condition should fairly toggle between the market forces’ push and pull and fetch the most competitive price. Sometimes, however, a property’s condition can torpedo its value so that it sinks to the level of throw-away where it is offloaded at a price below its market value. There are various reasons why a property can be distressed.

One consequence of a foreclosure is that the lender will seek to sell the property through an auction. Failure to dispose of such a property via the auction will render it distressed and such properties are sold off through a discount. A property can also be distressed if an agency holds it due to repossession or in lien of owed funds. Finally, a property that is worn and generally in poor condition requiring massive repairs is also said to be distressed. WWW.THEPOWERISNOW.COM

When the pressure of distressed property piles, the other available option is a Short sale whereby the property’s current value is lower than the mortgage owed. This sale is a good deal for property buyers and realtors. Distressed properties are difficult to finance because of the difficulties involved in correctly attaching an appraised value to them. Hence the best deal is reached via auction or direct offers. It is essential to carefully weigh the Pros and Cons before embracing a distressed property as a buyer. The first merit of acquiring a distressed property is the low cost associated with them. If the seller is a banking institution, the buyer will get a good deal and a shallow interest rate while renovating it. l

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distressed property could refer to one that is at the brink of foreclosure or already in the hands of the lender as a consequence of a breach in credit financing agreements, notably the failure to submit one’s monthly mortgage repayments.

As a buyer, a distressed property can be a favorable opportunity to enter a new market and location or neighborhood you could not normally afford to penetrate. If the property is suitable, it can turn out very lucrative at the end of the renovation with a potential of extremely high profits. There are associated demerits of handling distressed properties. The first is the stiff competition involved in the auctions or sale. You can never be sure you have the property in your hands until the bid is finalized. There is every chance of being outbid. The property is offered on an as-is basis. There is no luxury to seek any concessions in such a sale. Hence, it isn’t easy to make any informed decision, especially if you need to do a thorough inspection to ascertain the extent of repairs required. Transferring distressed properties also has extremely annoying delays and can take months instead of the traditional few days.

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The process of acquiring distressed properties can either be a lucrative venture or a risky investment. Those who reap benefits out of it are veterans of the real estate businesses who know the pitfalls and forestall or evade them. They finally flip the property and reap high profits. Work cited. https://www.rocketmortgage.com/learn/distressed-property https://www.fool.com/millionacres/real-estate-investing/house-flipping/ how-find-distressed-properties-investors-guide/ https://corporatefinanceinstitute.com/resources/knowledge/other/ distressed-sale/

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THE 10 BEST ARLINGTON SUBURBS AND NEIGHBORHOODS As the morning sun kisses the restful waters of the Potomac River, the fierce tides of night subside and send a quiet breeze across South West banks into the quiet alleys of Arlington County of Virginia, the famous home of The Pentagon. As the day comes to high noon, Arlington’s beauty stands in full bloom and can be viewed as far away across the river to the Nation’s capital.

community amenities, and other considerations. Niche.com did the ranking for 2021, and the following neighborhood scooped the first ten slots for the Arlington areas;

Home is where the heart is at peace, and most of the selected areas were ranked by the satisfaction they brought to residents. The ranking was based on living standards, housing trends, absence of crime, cost of living, job availability, social and

BLUEMONT Bluemont offers a touch of family blended with the best a community can offer. The population is less than 6000, and the neighborhood has earned a top score in all significant categories except perhaps the cost of living. Whereas most residents own

rlington has an intriguing attraction to every visitor’s eye and an irresistible allure to every new resident. It is no wonder that its suburbs have consistently maintained the top slots as the best places to live in the State of Virginia.

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their homes, there is plenty of socialization in the parks, coffee bars, bars, and restaurants. RADNOR/FORT MYER HEIGHTS Radnor/Fort Myer heights are the melting pot of Arlington with its low-rising buildings and lively neighborhoods. It is populated by young professionals, primarily liberal, and who prefer to rent their abode. The winning attraction lies in the area’s public schools, nightlife, and diversity. BALLSTON/VIRGINIA SQUARE This area is populated by young professionals and graduates as well as young families with children. Days and nights are significantly safe with low crime rates, and the area is sufficiently served by the metro. Most residents are rent their homes, and the median is $2296 CLARENDON/COURTHOUSE With a population slightly above 11000, Clarendon is ranked 4th as the best suburb to live in Arlington. Over 75% of its residents rent their homes and pay a median rent value of $2307. It features topranking public schools, and getting to Washington DC is very quick and convenient. COLONIAL VILLAGE Colonial village has a population of slightly over 4697 residents who are primarily tenants. The median rent is $2092. The median home value is $526,986. The bulk of its dwellers are young professionals from diverse ethnic backgrounds.

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ARLINGTON FOREST Arlington forest has a very appropriate mix of homeowners and tenants within its population of 5713 residents. The median rent is $2299.

ARLINGTON CITY Arlington city has a higher population than the other nine top places in Arlington. It has a mix of urban and suburban life to offer its 233464 dwellers. The median rental income is $1970 WAYCROFT/WOODLAWN, Most dwellers of Waycroft/Woodlawn are homeowners, up to 90% of them. This fact has pushed the median rent to $3501 while the cost of owning a home is slightly above $920,525.

NORTH ROSSLYN Life in North Rosslyn is a fascinating mix of glitzy DC life and Georgetown. The nightlife is punctuated with activities, great restaurants, and beer gardens. There are also parks and jogging troupes along the Potomac River. It has a population of 3143 residents with an almost equal number of homeowners and tenants. NORTH HIGHLAND With a population of 4761 people, North Highland has a median rent price of $1816 and the median cost of buying a home at $627,012. Arlington has the best place for families and professionals. The preceding ranking included the cost of living, crime, transport and walkability, quality of healthcare quality, state and local tax rates, weather, local culture, diversity, and general well-being for citizens Work cited. https://www.niche.com/places-to-live/search/best-places-tolive/t/arlington-arlington-va/. https://wtop.com/virginia/2020/09/arlington-neighborhoodsrank-among-virginias-best-places-to-live-in-2020/.

YOU DESERVE TO LIVE SAFE FROM SEXUAL HARASSMENT.

Sexual harassment by a landlord or anyone related to your housing violates the Fair Housing Act. If you receive unwelcome sexual advances or are threatened with eviction because you refuse to provide sexual favors, you may file a fair housing complaint. To file a complaint, go to

hud.gov/fairhousing or call 1-800-669-9777 If you fear for your safety, call 911.

FAIR HOUSING IS YOUR RIGHT. USE IT. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

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EMERICK A. PEACE

#320004 240-882-0198 EmerickPeace@KW.com Your #1 Referral Source for Phenomenal Service in Washington, DC & Maryland

THIS IS WHAT YOU NEED TO KNOW BEFORE BUYING A MANUFACTURED HOME IN MARYLAND

hen you watch an amazon weaverbird fix its nest, you are impressed by the agility employed to arrive at the finished product. The art and craft involved in the weaverbird’s home building from scratch require massive toil and lengthy hours. However, every great act can be made greater. The thought of a readily woven nest for the weaverbird could be a mountain of fiction in the jungle, but the reality of a ‘manufactured home’ for humans is alive with us. A manufactured or mobile home is built and assembled in a factory before it is wheeled and installed at the chosen site.

determine the land ownership conditions and attendant procedures covenants and legal issues. A good example is that some neighborhoods in Maryland are age-restricted. Apart from zoning, it is important to consider septic, electrical and building permit regulations. The choice of location and soil valuation is significant because Maryland does permit individuals to turn manufactured homes into real property if they own the house and the parcel of land it sits on. Other important issues about location include transport network, available local amenities, utilities, septic and land appreciation potential in the chosen areas.

Whether in the suburbs of Baltimore, along the Chesapeake Bay urban watersheds or deep into the interior of Maryland in the woody and mountainous ranges, here is what you need to know before buying a manufactured home in Maryland.

Decide on the model and dealer

You require land or a home lot

Let’s momentarily rephrase the matter at hand. You have a manufactured home; where will you anchor or have it placed within Maryland? That is the home lot. Upon resolution, you must decide whether to buy the piece of land or enter a lease for it. Once the specific location is established, WWW.THEPOWERISNOW.COM

The desired home size is calculated in square feet and you can choose a vendor from a retailer, a real estate agent or the owner. Look out for the single, double and even triple floor plans and choose your preference. In most cases of a new manufactured home, the dealer should handle the required paperwork to ensure you have everything in order. The Manufactured Housing Institute of Maryland www.mhiofmd.com is the first stop for all licensed dealers’ information and a catalogue of all requirements and considerations. Manufacturers also offer warranties. You must study what it covers beyond the basic structure.

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Emerick A. Peace

The cost of a home

The ultimate cost of settling in a manufactured home will rise incrementally beyond any dealer’s basic price for the square feet structure. Hence, the budget should include the land purchase or lease, transport and installation, and other peripheral expenses such as local utilities and amenities within the host community. The cost of installation sometimes includes the construction of a permanent foundation.

Funding options

Most manufactured home dealers have a working relationship with a lender they can recommend to the home buyer. The other factors of creditworthiness will follow. It is worth noting that chattel loans, which are a leading source of funding for manufactured mobile homes, normally have higher interest rates. If you require normal mortgage loans, the manufactured home should have a permanent foundation.

Fixing the paperwork

When all is done and folded, make your manufactured home legal within the provisions of Maryland State. According to Maryland laws, such

homes if they are above 35 feet are not subject to the inspection, titling, or registration laws. However, they may be titled, and state retail sales tax must be paid. All the required documentation can be done at the nearest local DMV office. Manufacturers also offer warranties. You must study what it covers beyond the basic structure such as plumbing, electrical systems and the period. Get all the paperwork right. Voila! If you want to escape the rigorous labors of a weaver bird building a nest, the ‘manufactured home’ is the way to go. And now you know how to procure one, the Maryland way.

Work cited. https://mobilehomeliving.org/keep-mind-buying-mobile-homemaryland/ https://www.nerdwallet.com/article/mortgages/buying-amanufactured-home https://www.northroprealty.com/blog/what-to-know-beforebuying-land-in-maryland.html

Every Other Friday

10:00 AM - 11:00 AM

Promote Your Listings Online CALL ME FOR MORE INFORMATION ERIC LAWRENCE FRAZIER MBA (714) 361-2105 eric.frazier@fbol.com www.thepowerisnow.com

YOUR VOICE IS YOUR BRAND! INCREASE LEAD GENERATION, AND GIVE YOU THE POWER TO CLOSE MORE DEALS!

Adriana Montes

he burden of moving the wheels of real estate lies squarely on the shoulders of realtors. These are the agents who source, clinch and seal property sale deals. The realtor is the link between the property, the broker and the buyers. The realtor is nevertheless caught in precarious positions because failure to remit the appropriate tax amount could attract a severely punitive penalty. The best strategy ensures tax compliance while maintaining the lowest tax bills. The following ten ways can be used to reduce the tax bill significantly.

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10 CREATIVE WAYS FOR REALTORS TO REDUCE THEIR TAX BILL 1. OWN THE PROPERTY FOR MORE THAN A YEAR BEFORE RESALE

Holding a property for more than a year then reselling it is the surest way of escaping the dealer tag and having the profit on the sale subjected to tax. After a year, the tax on the held property will shift from being levied as income tax to capital gains tax which is significantly lower. The property can be rented during that year, hence earning an income while lowering the tax paid in the coming days.

2. AVOID DOUBLE FICA TAX PAYMENT

Avoiding the ‘dealer tag’ is crucial in avoiding paying the FICA tax as both an employee and an employer, which sums up to 15.3%. The first is to demonstrate that your whole intent is an investment, as earlier explained. Another way is to handle the properties through more than one legally registered Limited liability companies.

3. MAKE IT YOUR ADDRESS

If you live in a property for at least two years, you will be exempted from capital gains tax for up to the first $250,000 as a single person or $500,000 as a couple.

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4. 1031 EXCHANGE

Using section 1031 of the tax laws, you can avoid paying capital gain taxes by reinvesting proceeds of a property sale in buying another property of a similar kind, of similar value or higher. This process can go on and on by raising the value, or at a point, you can own the property for rental income purposes.

5. EMBRACE INSTALMENT SALES

Sometimes a one-off sale can raise a profit margin that can attract hefty income tax and even throw you into a higher bracket. However, this can be avoided if you accept a down payment and then receive the rest of the amount as installments staggered over time. Only the down payment will be taxed in such a case, and ultimately you can even get interested in the payment.

6. THE MORE THE DEDUCTIONS, THE LESS THE TAX BILL

By maximizing on the deductions, the total taxable income decreases, and so does the tax bill. These deductions include overhead business expenses such as software costs, legal fees, office management bills, advertising costs, travel, mortgage interest, among others.

presents an opportunity to deduct such depreciation from the total value. This amount is normally 1/27.5 of the value per annum.

9. BORROW INSTEAD OF SELLING

Having held a property for some time, selling it attracts the capital gains tax accrued on the property. You can avoid this by borrowing against the same property instead. Continued renting will ultimately pay off the borrowed amount too.

10. TILL DEATH DO US PART

By continuing the investing cycle, borrowing and reinvesting heavy tax burden can be avoided until one dies while still owning the properties. Upon demise, the estate will pass on to one’s heir without paying capital gains. The heir can sell the property and hold the amount gained tax-free.

Tax is the cost one has to pay to live in a civilized society. Reducing the tax bill using legitimate methods is the genius way of running a successful business.

7. EXPLOIT THE 20% THROUGH-PASS

The through-pass is a relief established in 2017 and permits smaller-income businesses to get a 20% reduction on their net gains.

8. DEPRECIATION HELPS

As the value of a property falls, it

Work cited. https://www.moneycrashers.com/lower-taxes-realestate-investor/ https://www.microsoft.com/en-us/microsoft-365/ business-insights-ideas/resources/real-estate-agenttaxes-commissions#:~:text=Because%20real%20 estate%20agents%20are,Social%20Security%20and%20 Medicare%20tax

THE POWER IS NOW MAGAZINE | APRIL 2021

Install smart home technology, upgrade your computers, put in a home theater, improve your home office and remote learning environment, set up a home security system... There’s no end to what you could do!

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HOME TECH UPGRADE? HOM E EQU ITY LI N E OF CR E DIT as low as

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ERIC LAWRENCE FRAZIER MBA [First Name] [Last Name] Vice President and Mortgage Advisor [Title] Office: (800) 261-1634 ext. 703 Branch Name Fax: (314) 264-0211 NMLS#: [XXXXXX] NMLS#461807 [(XXX)] [XXX-XXXX] eric.frazier@fbol.com

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*The Annual Percentage Rate (APR) is a variable rate based upon an index and a margin. The APR will vary with the Prime Rate (the index) as published in the Wall Street Journal. The variable rate APR will range from Prime + 0% to Prime + .425%, depending on the applicant’s credit score. This variable rate is based on auto-debit of payments from a First Bank checking account. If not auto-debiting payments from a First Bank checking account, add .75% to the rate. The APR may increase or decrease but will not exceed 18% nor will fall below 4.25% except during the 12 month promotional period. During the promotional period the rate will be based on applicant’s credit score with either Prime - 0.26% or Prime + 0.34% and both promotional rates requires auto-debit of payments from a First Bank checking account. As of September 1st, 2020, the APR ranges from 4.25% to 4.425% and the promotional rate is 2.99% or 3.59%. Rates are subject to change. This promotional rate is available only for consumer checking account clients of First Bank who do not have a HELOC with First Bank as of August 31st, 2020. Offer available for applications accepted during September 1st – September 30th 2020. No closing costs on lines up to $1,000,000 for standard documentation; third-party fees to be paid by borrower for loans over $1,000,000. Member FDIC

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MAGAZINE

WEST COAST EDITION

THE RED FLAGS TO WATCH OUT FOR BEFORE HIRING A HOME CONTRACTOR Yvonne Mcfadden

Finding a contractor isn’t hard, but hiring a good one can be frustrating and nervewracking. Would you like to hire an incompetent contractor that could turn your idea into a nightmare? If not, how do you identify the right one for your project from a plethora of contractors? If you seek an answer to the question, you are in the right place. This guide will show you the five basic red flags you need to consider when hiring a contractor.

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1. Authenticity of Information

To avoid falling into the mousetrap, verifying the contractor’s identity should be one of the key red flags for which to watch out. Before hiring a contractor, you need some information to confirm his identity. Information such as name(real/business name), office address, phone contact(that is registered with the business bureau), previous projects completed, e.t.c. will guide you to determine if the contractor is indeed competent or a mere imposter. Also (unlike the unverified contractor), if the contractor defaults, legal actions will be easily taken against him since his identity is known.

2. Poor Communication

Effective and timely communication is one of the characteristics of a good contractor. A good contractor communicates openly and honestly. S/ he gives clients insight into the advantages and disadvantages of a chosen solution to achieve the desired goal of the project. Whenever a contractor lacks this attribute, hiring such a contractor is like putting fire on the roof, he/she might turn your project into a nightmare(what you never wanted). l

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Because the success of your home-building and improvement projects significantly depends on the competence of your contractor, hiring the right contractor is necessary. If you’re reading this, you may either want to build a home from scratch or considering a home renovation.

In the name of trust and materials procurement, several construction companies demand an upfront payment. However, that doesn’t imply you pay every dime before the work begins. Only a certain percentage(preferably below average) should be paid upfront while the balance follows. But if the contractor requests the full payment or more than average, an explanation is necessary. You might consider another option if the reasons are made up. On the other hand, some construction companies can even trick you into getting your jobs by offering low bids initially. When the work then nears completion, some additional costs will be added that might even be more than the initial payment. Though their work may look professional and satisfactory, such red flags should be considered if you want a long-term relationship with the contractor.

4. Little or No Reviews

When was the last time you got a gadget without checking the reviews? Quite a while, right? The same applies when you want to hire a contractor. A trusted way of hiring a competent contractor is through recommendations from friends, neighbors, and previous people that have worked with him. Reviews serve as a measuring scale to filter out the good contractors. The more, the

better. Contractors with few or no reviews are not likely to have enough experience. Hiring such contractors might be risky, so you might want to stay away.

5. Low Estimate

Before contacting a construction company, try all you can to gather information about the market value of some of the materials you would use. If the contractor’s bid is lower than your estimates(market value of materials), it is time to ask some additional questions. Questions such as who bears the cost of the extra expenses should arise. Notwithstanding, it is advisable to choose a contractor whose bid is within your estimate. A proven means to know an incompetent contractor is through estimates. Beware of a contractor that provides quotations that are not reasonable.

Conclusion

Hunting for a competent contractor has never been easy. While there are a lot of Mr. Wrongs, there are few of Mr. Right. To save time and money, consider the above red flags whenever you want to hire a contractor.

References https://www.crddesignbuild.com/blog/red-flags-tolook-out-for-when-hiring-a-contractor

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3. Excessive Upfront Payment

THE POWER IS NOW MAGAZINE | APRIL 2021

5 REASONS WHY

YOU SHOULD NEVER SELL OR BUY A HOME WITHOUT AN AGENT Peggie Simmons

WWW.THEPOWERISNOW.COM

1. ADVICE FROM A TRAINED PROFESSIONAL Real estate agents have an educational background behind them that makes them real experts in the world of real estate. By joining forces with them, you will benefit from their significant expertise, which will allow you to ensure the smooth running of your project. So do not hesitate to seek advice from these professionals and ask them

all your questions. It is their job to demystify for you the world of real estate and all the aspects that make it a complex field. 2. SUPPORT THROUGHOUT YOUR PROJECT Agents offer a turnkey property sale or purchase service. Indeed, professionals in the real estate world are required to support you throughout your project, from planning to completion. To take care of the tedious administrative tasks involved in buying or selling a house, the broker will assist you in the following areas; l

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When looking for an apartment to buy or sell, it’s impossible to cut to the fateful question: should you call in a real estate agent or not? You are quickly tempted to do the work yourself, to peel the ads online, to call the sellers directly - in short, to do everything to save yourself the famous agency fees. But is it interesting for all that? Indeed, the role of the real estate agent is not simply to find the property of your dreams, but also to offer professional support and guarantees throughout the purchase/sales process.

Will you choose to hire a property buying and selling expert? This article has prepared a short guide that will help you to make an informed decision.

• • •

•

To plan your project according to your needs. Arrange for visits and find potential buyers, if necessary. Prepare your home for sale, if necessary, and suggest some minor work or modifications that could increase the price of your property. To negotiate the price of the house you want to sell or buy - according to your budget and always in line with your interests. In other words, the agent is an invaluable ally both in terms of negotiations and coordination of your project and in terms of administration.

3. A TRUE RIGHT HAND WHO WORKS IN YOUR INTERESTS. Agents, who are often motivated by their commission, benefit from teaming up with you for your interests. That is normal since it is the success of your project that will decide their final remuneration! The commission principle may perhaps set some consumers back. But the fact remains that this is a pledge of solidarity, which assures you that the professional you hire will work in the same direction as you, in concert with your goals.

The only way to experience the purchase or sale of a home without stress, fears, and anxieties is to rely on those who have made selling a profession. 5. GET IT RIGHT The real estate broker knows the real value of your home. He is aware of the market value of residences in the area where you live. He will be able to ignore the emotional sentiment that you would be tempted to give to your home, especially if you have lived there for many years and have raised your children there, for example. It will determine a fair sale price and let you know how long you have to wait reasonably to close your sale, depending on your neighborhood. CONCLUSION Before selling or buying a home, you will have to think about the various stages involved in accomplishing your project, as well as your ability to carry them out. Of course, hiring a real estate agent will require the disbursement of a certain sum. However, it is also an investment that will save you time and money. References http://blog.gohomeside.com/blog/5-reasons-why-youshouldnt-buy-or-sell-a-house-without-a-realtor https://www.realtor.com/advice/buy/why-you-should-userealtor/ https://www.redsign.com/5-reasons-you-shouldnt-sell-withoutan-agent/

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4. THE MANAGEMENT OF THE CONTRACT Let’s take, for example, the phase of the preliminary sales contract. This document must be drawn up in a format that the two parties undertake to sell and buy the property. Besides, being a legal document, it might contain several

terms that a lay-person might find confusing. Why risk getting bogged down in all of that?

THE POWER IS NOW MAGAZINE | APRIL 2021

Kamesha Keesee

BEST NEIGHBORHOODS IN CORONA FOR YOUNG HOMEOWNERS Corona, CA is the 13th best place to raise a young family in Riverside County, according to Niche.com. With a population of more than 163,000— an increase of 8.7% from 2010— living in Corona comes with a dense suburban feel that makes the place lovable. Another interesting thing about Corona is that most of the families and young professionals who reside tend to be liberals. While Corona has an overall grade of B, A- in public schools and A+ for diversity according to Niche.com, which are its best neighborhoods for young homeowners? Below is a list you should consider:

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Moreover, Sycamore Canyon Park real estate prices are 46% lower than the average home prices in Riverside, according to Areavibes.com. 2. RANCHO SANTA MARGARITA. According to Areavibes.com, Rancho Santa Margarita is 86% family friendly, 64% walkable to grocery stores, 93% pet friendly, 100% quiet

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1. SYCAMORE CANYON PARK. With an overall Livability Score of 87 out of 100— according to AreaVibes.com— Sycamore Canyon Park is among the best places for young homeowners to live in Corona. The neighborhood features crime rates 8% lower than the Riverside average, while its cost of living is 17% lower than the Riverside average.

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area, and has a 71% sense of community. The neighborhood has a population of about 49,000, from which 54% are kids below 18 years of age, while the area’s median age is 36.8. The neighborhood also comes with a livability score of 83, which is considered exceptional. Moreover, the cost of living in Rancho is 15% higher than the average in California, as its real estate prices is 43% higher than the average real estate prices in California. 3. MISSION VIEJO. With a population of about 96,000, and a median age of 44.2, Mission Viejo is also among the best places to live in Corona for young homeowners. The neighborhood also features a livability score of 79%, and a 18% higher cost of living compared to the average in California. Mission Viejo’s real estate prices are 49% higher while its rental prices are 54% higher compared to the average in California. The neighborhood is 1005 family friendly, 55% walkable to grocery stores, 91% pet friendly, and has a 64% sense of community, according to Areavibes.com. 4. VILLA PARK. Villa Park features a livability score of 79%, a crime rate 70% lower than the average in California, a 2.5% unemployment rate, and a cost of living 59% higher than the California average. Moreover, real estate prices in Villa 66

Park are 152% higher while rental prices are 125% higher than the average in California. Villa Park is also 100% family friendly, 100% walkable to grocery stores, 100% pet friendly, 100% walkable to restaurants, and 100% sense of community. 5. YORBA LINDA. With a B+ score in employment and a livability score of 80%, Yorba Linda is definitely an ideal place for young homeowners. Crime rates in the neighborhood are 65% lower than the average in California, while the cost of living is 26% above the average in California. The neighborhood is also 75% family friendly, 75% pet friendly, 83% quiet area, 75% sense of community, with 75% friendly neighbors. Real estate prices in the area are 78% higher than the average in California, while rental prices are 37% higher than the California average. Other excellent neighborhoods in Corona, CA that are also perfect for young homeowners include Newport Beach, Aliso Viejo, la Palma, Laguna Niguel, San Clemente, and El Cerrito. Work cited. https://www.areavibes.com/corona-ca/best-placesto-live/. THE POWER IS NOW MAGAZINE | APRIL 2021

Ameer Elahee

he 2021 Fontana real estate market continues to be a hot place. Three months into 2021, the Fontana real estate market is not so much different from what we saw in the 2020 market. Housing supply is still low, same as last year, home values are still on the rise, while demand is skyrocketing. According to Realtor.com, the February 2021 median list price of homes in Fontana was $490,000, representing an increase of 11.4% year-over-year. Moreover, the median listing price per square foot was $272 while the median sale price was $515,000. A seller’s market continued to dominate the Fontana real estate market in February 2021. This means that there were more people hunting for homes than the available homes for sale. According to Realtor.com, the February sale-to-list price ratio in Fontana was 101.96%. This means that homes in Fontana sold for 1.96% above the asking price on average in February 2021. Moving on, the median list price in Fontana surged by 6% from February to March 2021, according to Movoto. On the other hand, Fontana’s home resale inventories went up by 11% in March 2021, from the previous month. In terms of market competitiveness, Fontana attained a Redfin Compete Score of 82, which means that the

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FONTANA REAL ESTATE MARKET TRENDS: APPRECIATION RATES AND LOOKING BEYOND THE 2ND QUARTER

Fontana real estate market is very competitive. Elsewhere, Fontana has experienced some of the highest home appreciation rates of any market in the nation in the last 10 years. According to NeighborhoodScout, real estate appreciated by 107.33% over the last 10 years, representing an average annual home appreciation rate of 7.56%. This puts Fontana among the top 10% nationally for real estate appreciation.

Below is a Fontana market long-term forecast chart for years 2021-2027.

Moreover, data from NeighborhoodScout shows that Fontana’s appreciation rate was at 4.59% during the last 12 months; while in the last quarter, Fontana’s appreciation rate was 1.79%, which translates to a rate of 7.37% annually. Moving on, you might be wondering whether it’s worth investing in real estate in Fontana. According to WalletInvestor’s live forecasting system, buying a home in Fontana is a “not so good short-term (1 year) investment.” Based on WalletInvestor’s forecasts, a long-term increase in home prices is expected in Fontana. And if you’re looking for homes for sale with good flipping profit, the Fontana market can be a profitable property investment option.

Work cited. https://walletinvestor.com/real-estate-forecast/ca/sanbernardino/fontana-housing-market/. https://www.realtor.com/realestateandhomes-search/Fontana_ CA/overview.

Do you know

Peppermint Ridge? We provide a community of loving homes and empowering support services for individuals with intellectual and developmental disabilities.

support and encourage our residents to live their

lives and fulfill their dreams by fully embracing their indvidual abilities and interests. With 24-hour specialized care and staffing, we provide comfortable, secure homes and recognize that everyone feels a sense of belonging when they have familiar places in which to spend time with family and friends.

There

is a true sense of family at Peppermint Ridge. Of the 94 adults who

live at The Ridge, 38 have lived here for more than 20 years, with 10 of those calling The Ridge home for 40 years or more. Residents have the opportunity to flex their muscles of independence while developing rich lives of their own away from their loved ones. About 30% of our residents have no family, so other Ridgers and our staff have become their family.

Many

caring companies, organizations and individuals in

the community enjoy getting to know The Ridge by helping on small projects, hosting fundraisers, lending a hand at events, volunteering in our office, and assisting residents in activities such as arts and crafts, pool days, horseback riding, music and piano lessons, and exercise classes.

825 Magnolia Ave • Corona CA 92879 • 951.273.7320 www.PeppermintRidge.org • Tax ID: 95-2409851

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Ruby Frazier FIRST TIME HOMEBUYER GUIDE: PREPARING YOURSELF FOR YOUR FIRST MORTGAGE

uying a home is still a key aspect of achieving the American dream. However, buying a home can be a daunting task for a first-time homebuyer. With all the numerous steps, tasks, and requirements on credit scores, down payment, and mortgages, a first-time homebuyer could easily get overwhelmed. Like any other huge project or purchase, a successful home buying experience is all about getting the details right from the start, especially if you want to apply for a mortgage. For a first-time homebuyer, a mortgage is perhaps the largest loan they can ever take— and this alone can be overwhelming to think about. So, how do you prepare for your first mortgage as a first-time homebuyer? Below is a guide that will answer your what, when, and why questions of preparing for your first mortgage. The guide is divided into two phases with each phase representing what you’re supposed to do towards preparing for your first mortgage.

1. 9-12 months before purchase: Assessing and planning. Get a home buying mindset. The best place to start is by answering the ‘WHY’ question. Why do you want to buy a home? Is it due to a looming rent surge? Are you planning to grow your family? Are you trying to build equity? Or are you looking for a starter home, or a place to live forever? The manner in which you answer these questions will significantly affect the decisions you make throughout the process. WWW.THEPOWERISNOW.COM

CONSIDER YOUR BUDGET.

Being ready to buy a home is more than just the ability to make monthly payments. Will you afford unplanned home repairs, health care expenses, or other emergencies? Getting a sense of how much you can afford is a significant step for a first-time homebuyer. Otherwise, you will run the risk of having to take more debts, or worse facing foreclosure.

WHAT ARE LENDERS LOOKING FOR?

It becomes easy when you put yourself in the lenders’ shoes when looking for a mortgage. Lenders rate borrowers based on factors including assets, income, credit, and debt-to-income ratio. In other words, when a lender is weighing whether to give you a loan or not, they want to know whether you can pay now, or later, and if you can prove it.

2. 3-6 months before purchase: Get to know your options. Here, you’ve leaped from “planning to buy a home” to “hunting for a home in the coming months.” At this point, below are a few things you need to revisit: •

• • •

Your finances- this will give you a clear picture of what you’re working with and will help you determine a more accurate budget for your dream house. Your credit score. Recalculate your debt-to-income ratio to get a better sense of what you can afford. Start combining your down payment funds into one account so that your two-month bank statements and transaction history won’t raise any red flags when you start the mortgage process.

• • •

A fixed and adjustable-rate mortgage. Paying points or taking credits. And finally, how much you’ll put as down payment.

Start practicing your monthly mortgage payments. Before your purchase time arrives, consider practicing your mortgage payments to get a simulation of how becoming a homeowner will likely affect your monthly budget. If you estimate your mortgage payments will be more than your current rent, consider putting aside the extra amount every month to replicate making your mortgage payments. If your budget doesn’t feel comfortable after the simulation, maybe it’s time to re-think how much you can afford.

TRY TO STAY AWAY FROM NEW CREDIT INQUIRIES AND JOB CHANGES.

The main secret to reducing paperwork in the mortgage application process is to give lenders less to investigate your finances. Similar to consolidating your down payment funds in one account early, avoiding new credit inquiries is also a good idea as it may impact your credit score. Ensure you avoid applying for things such as car loans, or credit cards as much as possible, at least until after your mortgage has been approved. The same goes for changing jobs since lenders will need to look for any employment gaps or dips in income. If a job switch is unavoidable, reach out to your lender as soon as possible to help you with additional paperwork. Having prepared yourself in the ways discussed above, you can be assured of a seamless application process for your first mortgage as a first-time homebuyer.

KNOW YOUR FINANCING OPTIONS.

When deciding your financing path, there are a few key decisions you’ll need to make first. You’ll need to choose between:

Work cited https://better.com/content/first-time-homebuyers-guidepreparing-for-your-first-mortgage/.

ONLINE REALTOR SEMINAR www.first.bank

CLOSE MORE DEALS

APRIL 20, 2021 9:00 AM

with Little to No Money Down

DAY 1

Introductions: 9:00 to 9:30 AM Golden State: 9:30 TO 10:30 AM • Learn about Golden State Finance Agency DPA and Closing Cost programs up to 5% Q&A: 10:30 AM to 10:45 AM CalHFA 10:45 to 11:45AM • Learn about the State of California Housing Finance Agency DPA 3.5% Closing Cost 3% Assistance Q&A: 11:45 to 12:00 PM Final Remarks - End of Meeting 12:00 PM to 12:10 PM

SPEAKERS: ERIC L. FRAZIER MBA

NMLS ID: 461807 Vice President and Mortgage Advisor First Bank

CAROLYN SUNSERI Director of Marketing Golden State FinanceAuthority

JOE CAGNO

NMLS ID: 322348 Senior Vice President Mortgage Regional Manager First Bank

ONLINE REALTOR SEMINAR www.first.bank

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APRIL 21, 2021 9:00 AM

with First Bank Portfolio Lending

DAY 2

Introductions: 9:00 AM to 9:30 AM FB Professional Loans 09:30 AM to 10:00 AM • Learn about Loan programs for Doctors, CPA, Ph.D.’s, Attorneys Q&A: 10:00 AM to 10:10 AM

SPEAKERS: ERIC L. FRAZIER MBA NMLS ID: 461807 Vice President and Mortgage Advisor First Bank

FB Construction Loans 10:10 AM. To 10:50 AM • Learn about construction program guidelines and underwriting Q&A: 10:50 AM to 11:00 AM

JOE CAGNO

FB Portfolio Loan Programs 11:00 AM to 11:20 PM • Learn about FB Portfolio Alternative Income Doc and Interest Only Loan 5/1 7/1, 10/1 and 15/1 Q&A: 11:20 AM to 11:30 AM

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Final Remarks End of Meeting 11:30 AM to 11:50 AM

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ONLINE REALTOR SEMINAR www.first.bank

CLOSE MORE DEALS with Government | Conventional & Home Equity Loans & Lines of Credit DAY 3

Introduction: 9:00 AM to 9:30 AM FHA/VA/USDA: 9:30 AM to 10:15 AM • Learn about underwriting requirements for FHA/VA/USDA, • Learn about underwriting requirements for Conforming and High balance FNMA/FHLMC • Learn how to buy a 4 Unit Apartment Building as a First Time Homebuyer Q&A: 10:15 AM to 10:25 AM FB HEL/HELOC and Credit Builder Program 10:25 AM to 10:50 AM • Learn about First Banks’s Home Equity Loans and Lines of Credit, • Learn about First Bank’s Credit Builder Program and saving secure loans Q&A: 10:50 AM to 11:00 AM Seminar Panel Discussion with Speakers on all Products and Programs 11:00 AM to 11:50 AM Final Comments 11:50 AM to 12:00 PM

APRIL 22, 2021 9:00 AM Register at https://bit.ly/3cX2GtV SPEAKERS: ERIC L. FRAZIER MBA NMLS ID: 461807 Vice President and Mortgage Advisor First Bank

CAROLYN SUNSERI Director of Marketing Golden State FinanceAuthority

JOE CAGNO

NMLS ID: 322348 Senior Vice President

Mortgage Regional Manager

First Bank

ANTHONY WHITE

Underwriting Manager First Bank

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About Marcia Fudge United States Secretary of Housing and Urban Development

he Biden administration has come prosecutor’s office as Director of Budget in with notable inclusivity, and the and Finance. She also worked as an auditor housing sector wasn’t excluded. for the county’s estate tax department The administration has named several and served as a visiting judge and as a women, people of color, to its cabinet, chief reference for arbitration on many some of whom have already been approved occasions. by the Senate. The Ohio Democratic Representative, Marcia Fudge, the Marcia Fudge also served as mayor of incumbent secretary of Housing and Urban Warrensville Heights, Ohio, from 2000 to Development (HUD), is among those 2008. This was also another case who the Senate has approved where Fudge broke the barriers after being confirmed with 66to become the first female and 34 votes on March 10, 2021. first African-American mayor. “My first priority as This makes Fudge the first secretary would be to Black woman to lead the Fudge also once served alleviate that crisis and agency in more than 40 as chief of staff under get people the support years since Patricia Roberts U.S Rep. Stephanie Tubbs they need to come back Harris left the position in Jones during Stephanie’s from the edge,” 1979. So, who is this iconic first term in Congress. After woman, Marcia Fudge? We Stephanie’s death in 2008, a shall discuss her in detail. committee of local Democratic leaders picked Fudge as her EARLY LIFE AND EDUCATION. replacement on the November 2008 Marcia Louise Fudge was born on October ballot, a move that virtually guaranteed her 29, 1952, in Cleveland, Ohio. She went to election in the heavily Democratic, blackschool and graduated from the Shaker dominated district. Since then, Fudge has Heights High School in 1971 before earning been in the position up to date. her Bachelor of Science in Business from the Ohio State University in 1975. Later on, After the 2018 midterms, Fudge was she earned a Juris Doctor from Cleveland planning to run for Speaker of the House State University Cleveland-Marshall College in the 2019 election, a bid she abandoned of Law in 1983. later and rallied behind Nancy Pelosi.

EARLY POLITICAL CAREER.

After she was through with her college studies, Fudge briefly worked as a law clerk as she studied legal research. She also worked in the Cuyahoga County

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After the 2020 U.S presidential election, the then-president-elect Joe Biden nominated Fudge as Secretary of HUD on December 10, 2020. Her nomination was then advanced

Fudge resigned from the House of Representatives after being approved by the Senate as HUD Secretary on March 10. A special election to replace her will be held on August 3, 2021, as per Ohio law.

WHAT WE SHOULD EXPECT FROM FUDGE AS THE HUD SECRETARY.

As Fudge reports to her new workplace at the HUD Brutalist headquarters in Southwest D.C.— a structure her predecessor Ben Carlos described as the “ugliest building” in the city— she is taking over an agency embattled with challenges of America’s housing crisis that the COVID-19 pandemic has exacerbated. With what is in front of her, you could be wondering, is she up to the task? 80

“My first priority as secretary would be to alleviate that crisis and get people the support they need to come back from the edge,” Fudge expressed during her Senate confirmation hearing in January, arguing that Americans need more than an extension of the eviction moratorium, and Congress’s provision of $25 billion in rental assistance. “The past year has reminded us just how important it is to have a safe and stable place to call home. But, right now — for millions of Americans — that sense of security and peace of mind is out of reach,” Fudge said in a video statement released after she was sworn in. Fudge also pledged to accomplish the Biden promise to construct 1.5 million energyefficient and affordable housing units and vowed to take on the homelessness crisis with “compassion and resolve,”

as she called for an end to discriminatory practices in the housing sector. Fudge also stressed that she looks forward to helping families struggling to pay rent and mortgages, helping more Americans achieve their dreams of homeownership, and breaking down the “barriers of injustice.” The 68-year-old HUD secretary is also expected to reinstate a 2013 rule aimed at blocking the housing industry from enacting policies that are seemingly race-neutral but have adverse impacts on the minorities such as African-Americans and LatinoAmericans. With HUD under the tough Fudge, it can be arguably declared that there is light at the end of the tunnel. Work cited. https://www.washingtonpost.com/ business/2021/03/10/hud-secretarymarcia-fudge-confirmation/. https://www.investopedia.com/who-ismarcia-fudge-5112822#citation-4.

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by the U.S Senate Committee of Banking, Housing, and Urban Affairs by a vote of 17-7 on February 4, 2021, before she was confirmed by the U.S Senate on March 10 and virtually sworn in on the same day by Vice President Kamala Harris.

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Cornelius Jackson DEBUNKING REAL ESTATE INVESTMENT MYTHS IN IRVINE: IRVINE IS AN EXPENSIVE PLACE TO BUY REAL ESTATE

Like any other market across the country, the Irvine real estate market is experiencing so much volatility. Home values are shooting up all over the country, and Irvine is not an exception.

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Similar to other markets, the Irvine housing market is experiencing a massive shortage of homes for sale while the market is flooded with homebuyers chasing the few homes available. According to Realtor.com, the February 2021 median listing price for homes in Irvine was $984,000, flat year-over-year, while the median listing home price per square foot was $516. On the other hand, the median sale home price was $899,000. Since the onset of the pandemic through to 2021, most housing markets across the US have been seller’s markets, Irvine included. Realtor.com also indicates that homes in Irvine sold for “approximately the asking price on average” in February with its sale-to-list price ratio standing at 99.54%.

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nvesting in the Irvine real estate market is not a new concept. Thousands of real estate investors flock the Irvine market each year looking to invest in it. And some of these investors, especially the new ones, come with a lot of misconceptions which may give people the wrong idea about Irvine real estate investments, and consequently, triggering some to hold back from walking towards the great path of financial independence. One such huge and common misconception is that “Irvine is an expensive place to buy real estate.” Well, while some might be proponents of this claim, it clearly has no basis.

1. SAFETY.

Irvine is ranked number 2 in the US as the safest city in the country. This can be majorly attributed to its professional housing planned developments built and managed by one of the country’s reputable companies known as Irvine Company. Irvine also features several gated communities and professionally-managed homeowner’s associations that offer a secure living space.

2. EDUCATIONAL SYSTEM.

Irvine ranks among the elite educational systems in the country with its public schools and the Irvine Unified School District being among the highest ranking in the country. Irvine is also home to the University of California (UCI), California State and Irvine Valley College, and Concordia University, and about 22 award winning top ranked elementary schools.

3. STRONG AND GROWING HOUSING VALUES.

Irvine housing market has continually appreciated in value and held strong during the last two recessions like no other city or

community in the US. This has made Irvine reasonably high in demand and financially sound to home buyers, renters, and investors. Consequently, the Irvine housing market continues to improve across all communities in the Irvine area.

4. A WIDE RANGE OF HOUSING AFFORDABILITY.

For those arguing that the Irvine housing market is an expensive place, they’re probably missing out on one thing— the Irvine market features a wide range of housing affordability. This means that you can afford to buy a house in Irvine no matter what your budget is. And the beauty of this is that even if you buy a house for as low as $300,000, you’ll still get to enjoy all the great living benefits and amenities offered by Irvine to its residents.

If you were looking to buy real estate in the Irvine market, don’t let some myths come between you and your aim of achieving financial independence and living the American dream.

Work cited. https://www.realtor.com/realestateandhomes-search/ Irvine_CA/overview. http://www.irvinerealestate.com/.

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Considering the home prices given above, some could argue that Irvine is indeed an expensive place to buy real estate. But, is it really all about prices? It’s definitely not all about home prices. Reasons why Irvine housing market is the best place to buy real estate.

Jenny Gonzalez

eciding on whether to sell or rent your home in Corona, CA can be an overwhelming decision, especially with the risk of making the wrong financial move. So, how do you make the right call? Below are some factors to consider.

DECIDING TO RENT OR SELL YOUR HOME IN CORONA, CA.

1. WILL THE PROPERTY CASH FLOW?

When you find yourself in this dilemma situation in Corona, CA or anywhere else, the first thing to consider is the math and ask the right questions. Will the property have positive cash flow? In other words, determine whether the property will produce a monthly profit or loss when it’s rented out and you deduct all the expenses associated with it such as mortgage, taxes, insurance, repairs, and HOA, among others. If it reflects a loss, it’s not worth renting, consider selling.

2. WHAT COULD BE THE RETURN ON INVESTMENT?

If selling the house would be profitable, consider your return on investment. For example, if you would make $100,000 in profit by selling the house, while on the

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Next, determine how much profit you’d get after selling the property. While on this, remember to factor in other sales expenses including around 10% agent fees and closing costs. If your profit is amounting to little or nothing, it’s not worth selling. It would be best to keep the property for a while, as you wait on the market to improve over time.

other hand you would only achieve $1000 per year in cash flow, that represents a 1% ROI. It would be wise to take that $100,000 profit and invest it somewhere else with a higher ROI. 3. WHAT DOES THE FUTURE LOOK LIKE? Putting on your crystal balls and gazing into the future is another important factor to consider when deciding whether to sell or rent your home in Corona, CA or anywhere else. What does the next 5, 10, or 15 years look like for the location of your home? Do things look like they’re improving? Is your neighborhood set to decline in value? Of course, we don’t have crystal balls and can’t know with 100% certainty but analyzing the current trends in your market can help you make a more informed decision. Look at the growth of your city, in this case Corona; is it moving away or towards you? Are new businesses moving into your area? These are some of the factors to help you gauge how the future will look like. If things do not look good, consider selling your home now to avoid difficulties later.

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4. CONSIDER THE SITUATION SURROUNDING THE MOVE

Are you going away for a few years and looking to come back to the area later? Renting your house may be cheaper rather than incurring sales commissions to sell it and purchase another one when you return. The same should apply to when you get a temporary job transfer and are planning to come back to the area once done with the job. What if you’re moving far away and not planning to come back to your current area? In such a case, you should remember that managing a remote rental is a whole new different story. Travelling often to visit your rental can be costly. It’s best to hire a property manager to deal with the day-to-day issues and potential emergencies at your property— of course without forgetting that this comes at a cost. So, before you settle for this, make sure you’ll be able to pay all your expenses and still make a substantial profit from your rental property. If not, selling is the best option.

Work cited. https://www.forbes.com/sites/ brandonturner/2016/10/04/should-you-sell-yourhouse-or-rent-it-out/?sh=7a1a66db5a2b.

UNDERSTANDING WHAT REAL ESTATE COMPS ARE AND HOW TO EASILY FIND THEM IN 2021 Danon Burnside

very trade has its tools and practices that are peculiar and which define interactions amongst its leading players. In real estate, COMPS is a tool that both buyers and sellers regularly use to get optimal value from any existing market niche. Comps is a shortened version of the term, Comparable Sales. Comps refer to the information and conclusions reached by comparing similar properties located in the same locality and having similar characteristics such as size, condition, and features. By comparing similar properties with the ones to be sold or bought, one can develop the ideal and most competitive price or offer in a current situation. All the players in real estate use comps: property sellers, property buyers, appraisers, and real estate agents. The main issues to weigh in comps are:

1. LOCATION

The best and optimal comps for any property are as close as possible. Location is of top priority when valuing a property. Location can be as close as less than a mile depending on the locality (rural or urban), and it can be widened incrementally until the ideal is achieved.

2. SIZE

Size is the measure of the property and the land (lot) in square feet units. The value of any property depends on the location, but when all other conditions remain constant, the greater the size, the greater the value. The size of internal features such as bedrooms and bathrooms also matter in Comps.

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3. CONDITION

Condition refers to the physical condition of the property and its attendant features. A good example is a distressed building as opposed to a newly renovated one.

helpful because of its empowering value. Here are four ways of finding Comps in the year 2021. •

4. AGE AND STYLE

Newer homes have a higher value than aged ones despite their location and size. Some uniquely styled properties may stand out of their class. The style could be a value attached to their architecture or added features.

5. FEATURES AND AMENITIES

These include swimming pools, solar or green energy installations, walk-in closets, exquisite finishes, and specially designed interiors. All these push the value upwards.

•

6. NEIGHBORHOOD

The locality characterizes issues such as access to transport services, walkability, crime rates, views such as seafronts and mountains.

7. PROPERTY TYPE

A mansion is different from a holiday villa, a condo, an apartment, a single-family house, a bungalow. All these will be evaluated differently. Whether you are an investor or a realtor, buyer or seller, Comps information is exceedingly

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•

Checking public records by establishing contact with county departments and offices that are custodians of such records. These can be accessed online or, in many cases, by a physical visit. Working with a realtor. The best way to learn the real estate business’s ropes is to collaborate and work with people with vast experience in the field. Employ real estate software. As the industry embraces information management tools and technology, there are currently highly developed computer and mobile applications that can access a vast collection of Comps information at a click of a button. Employ the services of a home appraiser experienced in the art and craft of home appraisals and has excellent knowledge of the locality.

Work cited. https://www.mashvisor.com/blog/how-to-find-real-estatecomps-2021/ https://www.zillow.com/blog/what-are-comps-179631/ https://www.bankrate.com/real-estate/how-to-find-real-estatecomps/

Denise Matthis

HOW TO MAKE A GOOD OFFER ON AN OVERPRICED HOME

MAKE YOUR FINDINGS OF SIMILAR HOUSES IN THAT LOCALITY. We know that sometimes the seller’s asking price can be ludicrous, but don’t back away too fast because of the amount. First, make your comparison with other houses in the area. Your 94

agent can be in charge of making those inquiries. They will get you the exact statistics needed to decide if the home is worth the amount on the table. For instance, if the house you want is priced at $700,000 and similar houses in the area have sold for $550,000 - $650,000, you can use that as an opening point when making your bargain.

CHECK HOW LONG THE HOUSE HAS BEEN ON THE MARKET.

If a house is overpriced, it is more likely that it will be in the market for a lengthier period than expected. That is a great way to know if a house is overpriced before moving in with your offer. The only situation in which that will not be the case will be if the owner luckily finds a buyer with more money on their hands at the time. Naturally, people will do their homework, and because they deserve to get equal value for their coins, they’ll pass on such offers. That can turn out in THE POWER IS NOW MAGAZINE | APRIL 2021

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wning a home in recent times can be considered a remarkable feat. Without question, shelter is a basic necessity of life. This need to feel safe under a secure roof is second to none. However, procuring a home is not all smooth sails due to the high cost of living in our world today. So perhaps you have found the house of your dreams, or you need a comfortable place to settle in, but you think that the selling price is way higher than it ought to be? You are in the right place! In this article, we would be looking at some guidelines you can follow so that you can make a financially prudent offer for that overpriced home.

DO NOT SHOW TOO MUCH INTEREST.

This aspect is a well-known purchasing trick particularly in the world of real estate. For something as sensitive and essential as a house, you have to be careful not to let your emotions get the better of you in the seller’s presence. If the seller knows they have you booked, there is a slim chance of getting a good offer on your part. The trick is to seem not too interested and, with this attitude, check the house and neighborhood thoroughly. This way, the seller knows that they cannot get you on your emotions and will be willing to negotiate further with you on your terms.

BE PATIENT AND CONVINCING WITH YOUR OFFER.

When moving in to make an offer for your potential new home, you have to be patient because the seller will most likely not accept your offer at the first meet. Doing your background research with the pointers listed above may take some time, but it will give you a high chance of getting that house. You may WWW.THEPOWERISNOW.COM

need to go back and forth on pricing with the seller until you both agree. Remember, many people back out of such deals because they do not wish to offend the seller - but do not hesitate to negotiate your price with the seller if yours is fair enough, and you can convince the seller that you are the best fit for that house. Sometimes it goes beyond just the asking price. Other factors can contribute to getting an initially overpriced home for a great amount, and you just might be one of those lucky people if you play your cards right.

CONCLUSION

So there you have it: four ways you can trump that seller with a bloated house price-tag. Remember to do your research on what similar houses in that area are sold for, find out how long the house has been for sale, use the feigning disinterest trick, and be convincing. And patient!

References https://www.sandypetermann.com/how-to-put-in-anoffer-on-a-home-thats-overpriced/ https://www.rochesterrealestateblog.com/make-offeroverpriced-home/

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your favor because if the property has been on the market for longer, then the seller’s determination will begin to wane, and they will become more open to considering your offer at the very least.

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Kenneth Session 5 WAYS TO PREPARE FOR SELLING DURING THIS SPRING SEASON

he Spring season is the herald of new beginnings. With plants blooming, flowers blossoming, and temperatures warming, Mother Nature comes to life again after the chilly winter months. That has made spring a powerful poetic symbol across various cultures. Nonetheless, in Real Estate, springtime has its own meaning: the busiest home selling/buying season. Springtime launches an influx of buyers into the real estate market more than any other time in the year, meaning that sellers - whether homeowners or agents - can sell at significantly higher prices and achieve more success at closing their sales.

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That said, it is quite essential to prepare for the spring selling season this year. As this season is a great time to sell, several persons would put up their houses for sale, which means more competition. And of course, you have to beat the competition. Besides, it would be a sorry affair to miss out on opportunities provided by this market trend because of poor preparation. These reasons are why we would be taking you through some ways you can set the pace for the selling season this year.

1. SPRING UP THE HOME.

Take a cue from Mother Nature and renew your house, or rather, renovate and make repairs! Your living room and kitchens need not showcase the 1960s. Your plumbing, interior appliances, electricals should also be in working order. Again, you could try applying fresh paint to your walls - primarily paints with neutral colors, or you could use elegant wallpapers instead. Asides from giving the home you want to sell a new look plus a better appeal to buyers, renovations/repairs ensure you make better returns on your investment. For instance, l

replacing a garage door will cost about $3,600 but will result in an ROI of about 97%. However, be prudent with your renovation expenses. Spending too much might still cut profits.

2. PREPARE TO MAKE A FIRST IMPRESSION WITH YOUR EXTERIORS.

Your home exteriors are all you have to make a first impression on prospective home-buyers. Some buyers even decide on the spot whether or not to buy a house based on the exteriors. So it is necessary to ensure that your exteriors are in excellent order: gardens and flower-beds should be wellmanicured and attractive, the yard should be cleared out, patios and porches should be given an extra touch if needed. Entryways might also need to be refurbished or repainted. By all means, aim at achieving a wow look with your exteriors.

3. DO SOME DEEP CLEANING AND DECLUTTERING. Deep cleaning and clearing up of clutter in the home you want to sell is not only common sense; it is also business sense. No buyer would be roped in by an array of shoes at corridors or windows that beg to be cleaned. Ensure that all the floors, windows, and living areas are properly cleaned up. Dust tables and chairs. Vacuum-clean rugs and carpets. Clear out items you might no longer need - you

could even arrange a garage sale for that. Again, before a prospective buyer comes to inspect the home, try to tidy up every area - from the living room to the kitchen. In place of clutter, you can add touches of warm interior deco like freshly cut flowers to reflect the spring season.

4. DON’T UNDERESTIMATE THE POWER OF A BEAUTIFUL FRAGRANCE.

Elizabeth Taylor once declared that the beauty of fragrance is that it speaks to your heart, and hopefully someone else’s. Heartwarming fragrances are not only useful for making you attractive and classy, but they also have the same effect on your houses. Sour smells like the smell of cooked food, damp rugs, or cigarettes can ruin a home sale. Making your home smell wonderful is really not difficult. You could add essential oils which are lightscented to your air filter. Then clear out your garbage disposal, of course. Dust

your carpets with baking soda. You could even put vanilla in your oven! And like with personal fragrance, subtle and soft is more.

5. LET THE LIGHTS IN!

It would be great to make the most of the spring weather by opening your windows and letting sunlight into your home. This simple act goes a long way in making your home feel alive as the spring and vibrant. Besides, brighter rooms do not only look better - they seem bigger - which is always a plus.

So there you have it - five ways you can prepare for selling this spring. Try out these tips this time, and you would be sure to see significant positive results. References https://www.forbes.com/sites/ brendarichardson/2019/02/03/6-waysto-get-your-home-ready-for-a-springsale/ https://www.fortunebuilders.com/ spring-selling-season/ https://www.wheredoyoudwell.com/5reasons-why-spring-is-best-for-sellingyour-home/

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SMART WAYS AS A HOMEOWNER YOU CAN SAVE ON HOME INSURANCE

Robert Langston Here’s the list:

aving cost on your home insurance comes with one of the best feelings ever. The mere fact that you can cover your home insurance costs and still have some money to cover other unavoidable expenses is a source of relief. Have you always wanted to find ways to cut these costs but have not yet figured out how? You need not worry. This article compiles a list of ways you can successfully beat these costs and cater to other expenditures.

1. Provide more security for your home 2. Source for more information on less popular discounts 3. Increase your deductible 4. Create your credit score 5. Be accountable for your home-improvement 6. Forego high-risk options While it is not everyone that subscribes to the idea of purchasing a home insurance policy, it is highly essential (if you’re a homeowner) that you find out whether or not you’re spending more than you should on your home insurance. Knowing this will help go a long way in cutting costs, and you would be glad you did. Now let’s take a closer look at these seven ways you could reduce your costs in insuring your home.

• Provide More Security For Your Home

This provision is practically one of the best ways to save money. Do well to strengthen your home

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security so that security breaches become less rampant. Then you would not have to spend so much on getting it insured. You can fix a smoke detector in your home, some deadbolt locks, and even a burglar alarm system. Doing any of these would surely save you as much as 5% of what you would spend on insurance.

• Source For More Information On Less Popular Discounts

You can’t always expect the insurance company agent(s) to tell you about every discount package they’re going to offer you. There are other discount options for some special people, and you should ask if there are any. If you qualify for any less popular discount option, then why not? That’s a big plus on your part.

• Increase Your Deductible

That is another one of the best ways you can bring down your insurance expenses. If you get your insurance deductible increased, there’s a certain amount of money you would be saving monthly compared to when you don’t.

• Create Your Credit Score

Not many people know this, but one’s credit score can have a specific effect on their home insurance policy. Here’s how it happens: in some states, creditbased insurance policies are used to ascertain what rates would be used for you. A small credit score will attract higher rate payments and vice versa.

• Be Accountable For Your Home Improvements Giving your home some extra touches is not - and can’t ever be -

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a bad idea. That is especially so if there are some necessary changes or adjustments that need to be made. It is always advisable that you have your home improved or upgraded because there are some insurance-related discounts attached to it. Improvements such as window shutters, better roofing, electrical system upgrades, and plumbing adjustments will make your home easier to attract these discounts because by then, it would become less vulnerable to damage.

• Forego High-risk Options

A lot of the time, we are attracted to spending money on something we may not need. Just because something is very attractive does not mean we should go ahead and spend big on it if we’re not going to need it. For instance, if all your kids are all grown up, you may not need to have a trampoline on your property. Having a trampoline would add more to your insurance plan, and that would cost extra money. Also, if you won’t be needing a pool, you should not entertain the idea of having one because it also attracts charges.

Final Words

Always remember that even if you can maintain high-end insurance costs, you could always cut these costs so that you can cover some other expenses. When you follow the steps listed above, you would surely get better at having more money aside for other things. References https://www.nerdwallet.com/article/insurance/ save-on-homeowners-insurance

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Briana Frazier BLACK HOMEOWNERSHIP HURDLES:

t is no news that Blacks in the United States have historically faced varied forms of racism and discrimination, from the slavery era to the days of the Jim Crow laws. Sadly, it continues today where black men still die unjustly by the weapons of police officers supposed to protect them. That has led to inequalities in several sectors, and the real estate industry is not left out. Discrimination in blacks’ access to owning homes continued to remain institutionalized till the Fair Housing Act of 1968. Additionally, lower incomes and employment rates of black people have ensured that there has been a persistently enormous gap in the rates of homeownership between Blacks and Whites. For instance, the rate of homeownership for Black families was about 44.1% in the fourth quarter of 104

2020. That is not much different from what had been in 1968 and is more than thirty percentage points lower than that of Whites. Nonetheless, blacks born between 1981 and 1996 seem to be the likeliest generation to reduce the ownership gap. That is because they are the generation that is better educated, earns higher incomes, and is more financially stable overall. Thus, though the COVID-19 pandemic has exposed many black households - Millenials included - to financial hardship, economic experts have spotted a silver lining. Homeownership rates are growing across all racial groups, and a surge in the number of black Millenials who buy houses has contributed to that. THE POWER IS NOW MAGAZINE | APRIL 2021

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Student Loans Hurt Millennial’s Ability to Save for a Down Payment

Nevertheless, Millenials remain the yet-tobe-tapped market in real estate, with the lowest but fastest-growing homeownership rates of about 43%. The blacks among this group face unique hurdles in owning homes, with the lack of parental wealth and lower employment rates. But perhaps the mammoth hurdle black Millenials face to becoming homeowners is one which they share with their white counterparts: student loans. HOW STUDENT LOANS AFFECT BLACK MILLENIALS’ ABILITY TO SAVE FOR A DOWN PAYMENT It is paradoxical to think that higher education can affect the generation’s ability to own homes since increased education gives better chances of earning higher incomes and reduces unemployment rates. Unfortunately, that is the case. This analysis finds that debts Millenials generally incur from student loans decrease the possibility that they will own homes. A thousand-dollar increment in debt leads to a drop in the homeownership rate by 1-2 percentage points. Also, the overall surge in student loan debt between 2005 and 2014 led to a plummet in the rates of homeownership among young Americans by two percentage points. And in this, black Millenials are affected disproportionately. According to the Center for Responsible Lending in 2019, about 85% of black bachelor-degree graduates in 2016 were weighed down by student debt - in contrast with 69% of whites. Besides, a black student borrower owes about $34,000 on average, $4000 less than an average white student borrower. Not only does student loan debt affect black Millennials’ ability to save for down payment, but it also hurts their ability to qualify for a mortgage. HOW CAN THIS SITUATION BE IMPROVED? Because the existing racial inequalities in the

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housing sector of the country are worsened by student loan debts, it is necessary to consider ways the hurdle can be leveled. • Favorable Policy Response About 1.5 trillion dollars is owed to the federal government by students - especially in college - policymakers should consider programs to forgive student debt or achieve a more sustainable repayment plan. With the Biden-led administration promising to address inequalities existing in the country, that should be a priority. Moving forward, more serious consideration should be given to making colleges more affordable, particularly for those who are more disadvantaged. •

Also, there should be increased advocacy programs for black Millenials to seek to build wealth through homeownership.

Conclusion

The millennial generation in the United States has a lucrative potential for the real estate industry, having the largest demographic size with about seventy million people. For the black minority among the number, it is indeed critical that the potential is tapped - given that they represent the greatest hope of closing the historical gap in homeownership rates.

References https://www.washingtonpost.com/realestate/formany-black-millennials-student-debt-is-biggest-hurdlein-homeownership/2019/ https://abcnews.go.com/amp/US/black-millennialhomeownership-emerges-silver-lining-pandemiceconomy/ https://www.insidehighered.com/ quicktakes/2019/01/17/more-student-debt-anddeclining-home-ownership https://www.americanprogress.org/issues/educationpostsecondary/reports/2019/06/12/470893/ addressing-1-5-trillion-federal-student-loan-debt/ https://www.apartmentlist.com/research/ homeownership-by-generation

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TOP 10 TRENDS FOR THE L.A. REAL ESTATE MARKET IN 2021

Adrian Bates

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os Angeles is one of the most well1. INCREASED DEMAND FOR LA HOMES known cities in the United States, with L. A is the second-largest city in the United States, after the buzz and celebrities of Hollywood New York. As more people continue to relocate into this and Silicon Valley. The result, of course, is city of fame, the demand for homes is on the rise. The that each year the demand for houses in C.A.R. reported that over 480,000 family homes were this part of the country increases. sold in January alone - indicating that the demand is experiencing a boom. The California Association of Realtors (C.A.R) reported massive sales in the 2. A RISE IN HOME VALUE number of houses in December 2020. It is expected that this year will be no different from last year when it comes to the appreciating value of homes These sales have since extended into in L. A. In January alone, it was reported that the median January 2021, hitting double figures in the sales of homes in L. A. clocked about $700,000. That was process. over 21 percent from the figure of January 2020. To better inform your real estate deals The reason for these increments is not alien. Every year, and decisions in L. A, this article will new people move into L.A to seek permanent residence address the top trends in the city’s real while existing home-owners in L.A are craving for more estate market.

space. Though the demand is high, the supply doesn’t level with it; thus, taking the value of homes in L.A to exponential rates.

3. REDUCED UNSOLD INDEX

Because of the high demand for Los Angeles homes, sellers can sell their homes more quickly than before. The C.R.A. reports that the time from listing to selling experienced a massive reduction, slashing the unsold inventory index to 1.5 months, 1.9 months short of the previous figure of 3.4.

4. THE REAL ESTATE MARKET HAS GONE VIRTUAL

The Covid-19 pandemic came alongside it an increased necessity for doing business online. That has necessitated a change in approach to basically all forms of industry, the real estate business not excluded. L.A. home sellers are now more inclined to list their homes online. As a result, most realtor agents insist that the potential seller hires a professional real estate photographer to take attention-grabbing photos of the home. Photography has become such a key feature, to the extent that many home-owners go as far as staging their homes and carrying out minor renovations to make the home appealing to the buyer.

5. MORTGAGE APPLICATIONS ON THE RISE

With Los Angeles experiencing a reduced amount of interest rates on mortgage, applications are on the rise. In January alone the Mortgage Bankers Association reported a massive surge in the number of mortgage applications. This figure rose to the highest since March 2020, further pointing that many people are going all out to procure homes this period.

6. HIGH NUMBER OF HOME LISTINGS

Surveys by the C.R.A. suggest that many people are expected to sell their homes. 46% of realtor agents agree that in the coming weeks, the numbers of home listings are bound to increase. As the city continues to step out of the pandemic with vaccination measures put

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in place, many people are expected to sell their homes.

7. INCREASED DESIRE FOR SPACIOUS HOMES Most buyers, especially repeat buyers are bending towards spacious homes. People working from home are particularly on the lookout for homes with spacious surroundings. Listings of spacious homes are therefore bound to experience an increased number of sales.

8. SALES OF LUXURY HOMES ON THE RISE

Many people are on the lookout to purchase a luxury home, be it by the beachside or at a place where one can get a pretty view of the city. Los Angeles is an affluent city, and a great way to show off that affluence is through the home in which a person lives. However, while some may go for the outright buying of a luxury home, others may choose to rent instead.

9. CONDO SALES ARE EQUALLY INCREASING

The sales of condo homes are also on the rise. Condo homes recorded massive double-digit sales over the past year. The listing price rose to a figure of about $485,000. This figure has since seen enormous growth in 2021, and the median price of condo houses has risen to $500,000.

10. A COMPETITIVE BUYERS MARKET

The buyers market in L.A real estate is a very competitive one. The increased demand and the tight supply haven’t helped one bit. There could be further competition in the market in 2021, so buyers wishing to procure L.A homes should take quick and decisive actions so as not to be left wishing for a home already bought by another person.

References https://managecasa.com/articles/california-housing-marketreport/ https://www.noradarealestate.com/blog/los-angeles-realestate-market/ https://www.noradarealestate.com/blog/california-housingmarket/ https://www.google.com/amp/s/www.quickenloans.com/blog/ real-estate-trends-watch/amp l

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REAL ESTATE SALES ACTIVITY IN SOUTHERN CALIFORNIA

Success Money

In January 2021, Southern California home prices and sales jumped by double digits compared to the same time last year. This can be greatly attributed to the rush by prospective buyers to take advantage of the plummeting mortgage rates. According to February

22 data released by DQNews, Southern California’s January median price surged by 13% from January 2020, to $599,500, while sales rose by 13.5%. According to the data, January 2021 marks the 5th consecutive month in which sales shot up by double digits, while it was the 6th consecutive month where the median price increased by a double digit. Moreover, data by DQNews reveals pieces and sales rose in all six Southern California counties in January 2021 by the margins shown below:

• In Los Angeles County, the median price rose 12.6% to $690,000, while sales climbed 14.3%. • In Orange County, the median price rose 6.7% to $799,000, while sales climbed 22%. • In Riverside County, the median price rose 17.1% to $455,364, while sales climbed 10.1%. • In San Bernardino County, the median price rose 11.8% to $402,500, while sales climbed 20.7%. • In San Diego County, the median price rose 9.4% to $640,000, while sales climbed 1.8%. • In Ventura County, the median price rose 11.2% to $655,000, while sales climbed 16%. Experts have attributed several factors to the competitive market amid the

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pandemic. The first one is the plunge in the cost to borrow as the average rate on a 30-year fixed mortgage plummeted below 3% for the first time ever. This has encouraged more prospective home buyers to purchase homes using mortgage loans. The increased competition in the Southern California market could also be due to the trend of more people spending more time at home thus realizing the need for a bigger space. Those who haven’t experienced a plunge in their incomes are taking the action to move to bigger spaces. MOVING ON, WHAT DOES THE FUTURE LOOK LIKE? Some experts predict that home prices will rise at a slower rate in 2021 than last year citing home values can only get so high. On the other hand, few market watchers are predicting a looming price drop citing low mortgage rates and hopes of a recovering economy. In terms of sales, homes sales activities are expected to increase in Southern California this year as more millennials are reaching their prime home-buying years as they look to settle down. Work cited. https://www.latimes.com/business/story/2021-02-22/ southern-california-january-home-prices-jump.

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he pandemic rush in Southern California’s real estate market continued this year with no signs of slowing down. Home prices and sales continued hiking this year as more homebuyers continue to compete for the few homes available for sale in the Southern California housing market. This demonstrates that despite the unique challenges presented by the recession experienced in 2020, many homebuyers merely delayed their purchases last year, rather than cancelling them altogether.

THE TOP 5 TIPS FOR PREPPING YOUR HOME IN RICHMOND, CA Joe L. Fisher

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repping your home in Richmond, either for sale or any other objective, might at first suggestion seem a daunting task. However, your home must be given the tender care it deserves so it could blend perfectly with the beauty of the surroundings, and catch the eye of prospective buyers in the event of a sale.

You’ll need to “dress up” your home in such a way that it’d be the pick of buyers and a sight to behold for neighbors and strangers alike. Prepping up your Richmond home doesn’t necessarily translate into spending mammoth sums of money. It’ll surprise you to know that shoring up your home to standard wouldn’t cost as much as you imagine.

It’s always said that the first impression matters. While this phrase has been used countless times, it’s still as veritable as when it was first used. Imagine going for a top executives meeting dressed in worn-out jeans and oversized boots? Guess that would be a colossal disaster. That analogy applies to homes as well.

Most times, people think of prepping homes as making massive renovations. While massive renovations are not bad, your renovations don’t have to be that massive for your home to look all breath-taking again. And yes - you need that look to secure your sale from the get-go!

In this article, we shall be giving out 5 top tips to prep that Richmond home of yours.

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1. LANDSCAPING Most people will most likely gravitate towards a home that continually reminds them of how beautiful nature is. Landscaping your Richmond home doesn’t necessarily mean planting new trees or plants. While these might seem like fantastic ideas, they shouldn’t be the first thing that comes to your mind. You could start your landscaping duties by mowing your lawn, trimming down shrubs, and removing unwanted plants. You can also replace dying flowers, sweep the drive-way, and make sure that no piece of waste material is found around the home. 2. STAGING Staging a home refers to inviting a home stager to walk through the house and figure out its strengths and weaknesses. The stager then works out angles to ensure that the beautiful elements of a house are highlighted and that its flaws are completely hidden. That may be through rearrangement of furniture, repainting the front doors, and other similar structures.

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You can also depersonalize your home in the case whereby you need to put it up for sale. That is done by taking away the family pictures, some personal items, and other junk stuff. 3. HOME CLEANING While this may be a less talked about area in home prepping, it is essential. Your dwelling, from the exterior view to the interior, should not be dusty and disorganized. Messy and cluttered homes certainly put neighbors off from visiting your house, let alone potential buyers, should you have interests in selling your home. Cleaning should be in-depth and thorough. From the kitchen sink down to the glass window, everything needs to sparkle.

In case you might think of deep cleaning as a tedious task to do, you can employ the services of a professional cleaner for not more than $200. 4. MINOR REPAIRS You definitely wouldn’t want a potential buyer to see a crack in the wall of your home or your toilet leaking out because of faulty plumbing works. You certainly wouldn’t want your ceiling leaking out water in your sitting room or bedroom or your doorknob missing from the front door. Instead of going for en masse renovations of your house, you could fix the minor issues in your home by seeking the services of a handyman. Fixing minor faults would go a long way to promote the general view and appeal of your home. 5. LIGHTING AND ELECTRICITY One of the most important things people are looking out for in homes is the lighting and the working conditions of the home electrical appliances. The kitchen should be devoid of broken-down blenders and faulty cookers. Lighting is also very key. The brightness of a house suggests how cozy or spacious the house would seem to be. No one would want to settle in a house looking glumly and dull; therefore, you should seek to resolve any lighting issues that it may have. Replace every burnt bulb and another faulty piece of lighting with new ones, thus attracting people to your home. Brighten up the house and yes, make sure you give it an adequate dose of sunlight too. There are other things you can do to prep your home, but these five stand out. One of the perks of prepping your home this way is that you could do it even with a low budget. References https://www.richmondamerican.com/blog/prepping-yourhome-for-a-real-estate-photographer/ https://ruckartre.com/6-ways-to-make-your-richmond-homemore-attractive-to-buyers/

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NEW REPORT HIGHLIGHTS HOUSING INSECURITY AND THE NEED FOR AGGRESSIVE ACTION

n just a few months from now, over 11 million people, nearly 10 percent of the U.S. households, risk their homes through evictions and foreclosures. According to the Consumer Financial Protection Bureau (CFPB), an analysis of the impacts of the pandemic on housing shows that the positive actions that were enforced by both the public and private sectors have so far, prevented people from losing their homes during the public health crisis. But, the analysis still shows that over 11 million people are still at some sort of risk. Simply put, the time to act is now because the country has less time to prevent this huge number of people from losing their homes. Housing is the family’s basic foundation. Stable housing facilities provide the roots for people to grow, financially and otherwise. When we have stable homes, stable neighborhoods spring to life thus forming stable communities. When people lose their homes, their lives, their health and so much more are disrupted. This becomes even worse to the families of color and the Hispanic community who are yet to recover from the last recession. These communities have been and are still facing disproportionate access to financial and health resources pre and post-COVID. 116

PREPARING FOR THE WORST

The foreclosure moratorium keeps getting extended time and time again and this is putting more people at risk. The more the government extends these moratoriums, the more people feel safe and secure, hence enter into a relaxation mode. The mass of evictions and foreclosures looming in the housing market will put millions of families into the streets and when this happens, it will have dire repercussions throughout the housing market and economy at large. CFPB was created following the crisis of 2007-08, and congress made it possible for the agency to address issues such as the current looming housing crisis. CFPB steps in and uses its authority to keep people in their homes by coordinating public and private efforts to save homes. “And in those unfortunate instances where families can no longer stay in their homes, we will do everything we can to ensure that people are treated with dignity, families are able to preserve as much of their equity as possible, and everyone can make a smooth transition to other safe, secure, and affordable housing.” - Dave Uejio Dave also notes that while the CFPB is doing everything in its power to protect homeowners and renters, mortgage servicers and landlords are also working hard to keep people in their homes. He says that the many lenders the agency has spoken to understand that the last housing chaos wasn’t good and therefore, most are already working to engage with the homeowners THE POWER IS NOW MAGAZINE | APRIL 2021

in forbearance and the many who are still struggling to make payments. “We all need to work together to respond to and recover from the pandemic. All of us will benefit from a solution that keeps people in their homes during this crisis and ensures a smooth path forward for everyone when life and our economy return to normal.” He added.

WHAT WE NEED TO DO

The first step that the government needs to do is to protect its most vulnerable citizens. Dave Uejio says that he has directed the policy teams at the CFPB to consider all of CFPB’s available tools in order to preserve the people’s homes and also protect them from unncessasry foreclosure. He also affirms that the agency is continuing to work hand in hand with other government agencies and partners including the U.S. Department of Housing and Urban Development, Agriculture, and the Veterans Affairs as well as the Federal Housing Finance Agency (FHFA) on several measures that will ensure homeowners receive the necessary assistance they need in order to avoid unnecessary foreclosures. “We want families to keep their homes

where that makes sense and, where it doesn’t, that families have a chance to explore other options that let them preserve as much of their investment as possible.”

WHAT IF A FAMILY IS UNABLE TO MAINTAIN THEIR HOMEOWNERSHIP STATUS? Dave affirms that teams at the CFPB will work to establish an orderly, human, and equitable outcome for all families. Families need to be allowed the time to find the best buyers for their homes, time to find and secure alternative housing which is safe, and the time to pack and move. All this cannot be achieved while they are being harassed. “No family should be forced through foreclosure without a chance to explore options, including the opportunity to sell their home for fair market value. At a time when many homeowners have accumulated wealth and equity in their homes, making sure families have a chance to recover and grow their investment is particularly important.”

AVAIL EVERY TOOL TO HOMEOWNERS AND RENTERS NOW!

More often than not, homeowners and renters struggle to understand the options they have at their

disposal and usually do not really know who to trust. As such, the CFPB in close collaboration with other federal agencies is providing homeowners and renters with the resources they need now. This includes education programs that will help homeowners and renters understand their rights and protections, making them aware of the scams, and helping them learn the best ways to request forbearance or mortgage assistance. “We know that many people haven’t requested the relief for which they may be eligible. For example, roughly 263,000 families are at least 90 days behind on their mortgage and not in forbearance. The CFPB will engage with homeowners to help them know they have options, including sharing information with our most vulnerable consumers and communities. We will continue to share updates as we expand our work in this area.”

BOTTOM LINE

We are still not safe. The report from CFPB shows that more groundwork is needed and thus sets the stage for CFPB to develop more options to head of the national foreclosures and eviction crisis. Dave confirms that more work is being done at the agency level.

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Data Sources: https://www.consumerfinance.gov/ about-us/blog/new-report-highlightshousing-insecurity-and-the-need-foraggressive-action/

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MORTGAGE RATES NEED TO COOL DOWN RIGHT NOW AND HERE’S WHY

he debate on whether mortgage rates should go lower or higher has raged on for a lengthy period, perhaps since mortgage rates existed. On one side, there have been continued calls for mortgage rates to get even lower, yet there is every reason to support that motion given the current situation of affairs around the world. Several factors come into the picture in terms of

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the determinants of mortgage rates. But regulators should not place these determining factors above the need for flexibility for consumers - especially those consumers whose finances have been affected by the coronavirus pandemic. In the early days of May last year (2020), a piece of good news broke out that mortgage rates had been reduced by a

wide margin and also came to an all-time low. It was enough to be jubilant about because 2020 was notably a tough year - one of the toughest ever - and it felt good to note that the wellbeing of consumers was duly considered toward the arrival of that decision. What that development meant was that a new 30-year fixed mortgage now has its interest

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Despite the plummet in the rates, experts in the industry still believed that there could have been more reductions made to it than what was initiated. The global financial crisis also ensured that there would be a change in the US ten-year Treasury yields, which sat at 0.6%. The plain reason for these changes was that there was no fluid communication between demand and supply. The chain

then turned to a weak link and was no longer as effective as was earlier imagined and predicted. This fluctuation also led to an increase in the number of refinancing applications because of how rapidly the interest rates were falling. Even the refinance applicants began to find it very challenging to meet the application criteria due to the social and economic impact caused by the lockdown. The lockdown made it difficult for some applicants to meet deadlines for the closure of deals, and other applicants struggled to meet the financial demands of their applications. WHY DO MORTGAGE RATES NEED TO GET LOWER? Quite plain: lower mortgage rates are in themselves more consumer-friendly. And at this time, that is essential. For consumers, lower mortgage rates mean that they would be able to pay less for mortgages. The amount which they will have to pay per month is significantly reduced. Also, it means that the cost of interest would lessen over a period. And besides, when mortgage rates plummet, consumers can maximize their housing budget and might then have more to afford the house. One reason why mortgage rates go high is that interest rates will keep dropping. When this continues to happen, it will surely be slightly difficult for the mortgage rates to not be on the increase. The factors responsible for inflicting inflation on mortgage rates need to be

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tamed and controlled. There should be a unanimous policy that allows for mortgage rates to maintain a healthy balance so that consumers don’t have to go through a lot trying to get their mortgages covered. Not many people would comfortably afford high mortgage rates; that is understandable because there has been an economic downturn in the last months which has knocked not only last-end consumers but also companies. Until balance is restored, there will continue to be a significant problem for struggling consumers to keep up with these mortgage rates. Once the rates are reduced, there would be a surge in the number of people who can afford them, making life less grueling and more comfortable. FINAL WORDS Although it will be a hard call for mortgage agencies to insert much lower rates than they have already done, it would be a significant and timely boost for consumers. And making consumers happy might not yield short-term benefits, but it would definitely do so in the long run.

References http://ft.com/content/a183170b-39204b74-b4be-641d35c7b256 https://www.housingwire.com/articles/ hey-home-shoppers-heres-whathistorically-low-mortgage-rates-meanfor-you/

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rate set at 3.23%, which is so low a rate, an all-time low, to be precise. It became the lowest since Freddie Mac, a mortgage agency, began collecting such data half a century ago.

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FHFA EXTENDS FORBEARANCE PERIOD TO 18 MONTHS

n what would come as great news to consumers, there has been an extension to the forbearance period, according to an announcement made by the Federal Housing Finance Agency. This extension would raise the forbearance period to eighteen months. It comes on the heels of repeated requests by consumers for the FHFA to extend the deadline, which the agency announced on Thursday, the 25th of February 2021. The disclosure also meant goodnews to households under 122

the arrangement as it contained information regarding family foreclosures. The statement read that both the Fannie Mae and Freddie Mac moratorium on all single-family foreclosures would be extended to the 30th of June, 2021, from the previous 31st of March. Also, all moratorium on evictions would have an adjustment in the dates, with the extension now moved to the 30th of June this year. However, in the announcement, it was not stated whether there could be any

evictions from those properties that are multi-family owned under a Freddie Mac or Fannie Mae loan. The extensions are in line with the recent extension announcement on the evictions and foreclosure moratorium, which will run until the 30th of June, 2021. This novel foreclosure moratorium adheres to the policies of the United States Department of Agriculture (USDA), the Federal Housing Administration (FHA), and the United States Department of Veterans Affairs (USDVA) regarding single-family home

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loan borrowers. The Federal Housing Administration also added that there would be a further extension of the forbearance period due to the Covid-19 pandemic to 18 months. The stipulated period was formerly fixed at 15 months; this new extension will spark some excitement among consumers who will see it as an opportunity to get back to their feet after being affected financially by the pandemic. The new forbearance policy now states that the people interested in the Covid-19 forbearance package or plan would have the luxury to enjoy the novel benefits from the 28th of February, 2021. According to the Federal Housing Administration in the same statement, those borrowers who are under the Freddie Mac and Fannie Mae Covid-19 payment deferrals now have the liberty to oversee up to 18 months of outstanding or missed payments. WHAT FANNIE MAE AND FREDDIE MAC HAD TO SAY Deducing from a statement released by Fannie Mae, there have been adjustments made due to the recent updates regarding the new policies. Freddie Mac was also not left out of the equation. It released a statement in a Bulletin post about how and when the new regulations would be implemented, following the official announcement made by the Federal Housing Finance Agency. Both Freddie Mac and Fannie Mae advised borrowers that they should be aware that the WWW.THEPOWERISNOW.COM

new foreclosure moratorium will not include properties that have been confirmed to be either abandoned or vacant. Real estate-owned properties are also under the new policies and will also observe the latest evictions notice from the 30th of June. It joins the list already filled in by single-family mortgages, and those that are backed by enterprises. The new Covid-19 Payment Deferral is made available for borrowers whose mortgages are backed by enterprises so they can still cover up for the payments they have missed for up to 18 months. The Payment Deferral will make it easier for borrowers to make their missed payments when their mortgage matures, their home is refinanced, or where their home is sold.

Renters and homeowners can get updates and information by visiting Consumer Finance and Housing website. The site contains every necessary information regarding deadlines, protections, and various relief options as well. FINAL WORDS It is heart-warming to see that the interest of renters and homeowners has been afforded reasonable consideration. The Covid-19 pandemic has affected incomes in no small measure, so this latest news is much welcome as it will give borrowers more time to make up for their missed payments. References http://news.cuna.org/articles/119110fhfa-extends-forbearance-foreclosureand-reo-eviction-moratoriums

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ABOUT AUTISM AWARENESS DAY To break this down further; 1 in 34 boys was diagnosed with ASD. And 1 in 144 girls was diagnosed with ASD. This shows that boys are four times more likely to be diagnosed with Autism than girls. While in most cases diagnosis of Autism occurs after 4 years, children can be a screen for this disease as early as when they are 2 years old.

ENOUGH WITH THE STATISTICS, LET’S LEARN WHAT AUTISM IS AND WHAT WE CAN DO ABOUT IT. April 2 will be the day the world will come together to observe World Autism Day. a time when people from all over the world join hands together and share as one the colors of blue, red, yellow, and purple that reflect the uniqueness and complexity of the Autism spectrum. Surprisingly, not many people know about this condition, or how to cope with it whenever they come across an autistic kid or adult. Therefore, there is no better way to celebrate this year’s World Autism Day than becoming aware of the characteristics portrayed by autistic people. This way, we can all partake in the process and do better to increase our knowledge and promote kindness.

31 % of children that have been diagnosed with ASD have an intellectual disability where their IQ is less than 70, while 25% of these children fall on the borderline. 44% of the diagnosed children have an IQ score in the average of more than 85.

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id you know? In 2020 alone, CDC approximated that 1 in 54 children in the country was diagnosed with Autism Spectrum Disorder (ASD)

A child with Autism tends to grow with the disorder into adolescence and adulthood. In most cases, children start showing signs of Autism during the first 5 years of their lives. Usually, autistic children also exhibit other co-occurring conditions including epilepsy, depression, anxiety, and attention deficit hyperactivity disorder (ADHD). And like we mentioned before, the level of intellectual capacity varies significantly extending from profound impairment to superior levels.

and genetic factors. There is no evidence suggesting any childhood vaccine may increase the risk of ASD. some studies that had been conducted before showed there was a causal association between measles, mumps, and rubella Vaccine and ASD, but these studies were nullified as they were filled with methodological flaws. In the early formative years of a child, it is crucial to promote the right environment for the optimal development and well-being of an autistic child. Constant monitoring of the development of these children is a part of the routine. Once an ASD child has been identified, it is important to offer the necessary support systems, with a special emphasis on the child’s primary care; parents.

They must be offered relevant information, services, referrals, and practical support each according to their individual needs. Till now, there’s no known cure for ASD. but, a child could largely benefit from evidence-based psychological interventions such as behavioral treatment and skill development training for both the child and its primary caregivers. Doing this consistently will help reduce difficulties in communication and social behavior. The health care needs for autistic people are complex and require a range of integrated services. This will ultimately include health promotion, care, rehabilitation services, and collaboration with other sectors such as education, employment, and social care.

CAUSES AND CARE FOR AUTISTIC PEOPLE Most of the studies that have been conducted on this subject point to many factors that cause ASD including environmental WWW.THEPOWERISNOW.COM

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WHAT IS AUTISM Autism Spectrum Disorder, better known as ASD does not refer to a single disease or disorder per se. Rather, ASD is a range of conditions. These conditions share some commonalities, such as some degree of impairment in the social behavioral interactions, communication, and language skills, and also, a narrow range of interests and activities both unique to the individual.

AUTISM IN ADULTHOOD In the next decade, an estimate 707,000 to 1,116,000 teenagers will enter adulthood and will age out of school-based autism services. Most adults with autism do not receive any healthcare support for years after they stop seeing a pediatrician. More than half of young adults who suffer from ASD tend to remain unemployed and unenrolled in higher education in the two years after high school. According to data from Autismspeaks.org, of nearly 18,000 people who have been diagnosed with ASD and who use the state-funded vocational rehabilitation programs in 2014, only about 60 percent left the program with a job. Of the 60 percent, 80 percent worked part-time earning a median-weekly rate of $160, which meant, most of them were well below the poverty level. “Nearly half of 25-year-olds with autism have never held a paying job. Research demonstrates that job activities that encourage independence to reduce autism symptoms and increase daily living skills.”Website, AutismSpeak.org OBSERVING WORLD AUTISM DAY Go out on April 2nd and share some information online about this great day. Today, even though many people have access to the internet, not so 126

many people are aware of Worl Autism Day. on April 2nd, why don’t you become an ambassador? Share information about Autism or Autistic children and educate the masses. Another way you could be a part of this day is by getting involved with autism associations. There are so many people who either have a family member with autism and are part of a communitywide, nation-wide, or even global-wide association. Reach out to them and get involved in the activities they have planned for this day. Show kindness to autistic people. This is a perfect time to have a good time with your friends who have been diagnosed with autism.

Data Sources; https://nationaltoday.com/world-autism-awareness-day/ https://www.un.org/en/observances/autism-day/ background#:~:text=The%20United%20Nations%20 General%20Assembly,an%20integral%20part%20of%20society. https://www.autismspeaks.org/autism-statisticsasd#:~:text=In%202020%2C%20the%20CDC%20reported, https://www.who.int/news-room/fact-sheets/detail/autismspectrum-disorders https://www.autism-society.org/what-is/facts-and-statistics/

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AS NEED FOR MENTAL HEALTH CARE SURGES, A FUNDING PROGRAM REMAINS UNDERUSED Here’s some saddening statistics for you; •

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Today, 1 in 5 American adults suffer from a mental illness. This translates to about 51.5 million Americans according to a 2019 study by the National Institute of Mental Health (NIMH). 1 in 20 U.S. adults experiences serious mental health in a year and 1 in 6 U.S. youth will experience mental health disorders each year.

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hese are the sad statistics that we have to grapple with each year, and one case of mental health means one lost soul! Another source confirms that 46 percent of Americans meet the criteria set for a diagnosable mental health condition at some point in their life and by the age of 14, most people will begin showing signs of mental illness.

county administrators and medics, especially those contracted to deal with mental health issues, they have to document their time in 15-minute increments and match it to the specific categories. It doesn’t stop at that, they then have to fill up a bunch of paperwork and deal with audit inquiries from the state agency that is charged with disbursing the Medicaid funds.

The Coronavirus pandemic makes it even worse! The need for mental health services in the counties has surged putting upward pressure on California’s scrambling health system. Yet, for more than a year now, the one source of funding that counties could tap into for financing remains seriously underused.

It sure seems like a lot of work, but if you are determined enough, it comes with a lot of benefits as in the case of Alex Briscoe who between 2004 and 2014 was able to amplify the Mental Health Medi-Cal Administrative Activities fund to $17 million from $3 million annually.

MENTAL HEALTH MEDI-CAL ADMINISTRATIVE ACTIVITIES These are funds usually for administrative activities related to the provision of mental health care to the people already enrolled in Medi-Cal (California’s low-income health program). What most health practitioners and people do not know about these funds is that they can be reimbursed for expenses such as referring people experiencing mental health crisis to services, program administration, planning work, policy development, and helping people apply for Medi-Cal benefits. A drawback to these funds however is that they are not easy to obtain. For WWW.THEPOWERISNOW.COM

Alex says that he and his team combined this money with other Medicaid money and established over 200 mental health programs and 29 health clinics in local schools. “We were able to use those tools to expand access to care to 10,000 children,” Briscoe said. A CLOT IN THE SYSTEM More than a third of Californians are enrolled in Medi-Cal. If counties collectively claim the administrative funding, this could potentially raise their mental health budgets by millions of dollars, freeing up other money that could be injected directly into mental health care.

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The sad thing is that very few counties participate in this program. An analysis by the California Health Report shows that at a time when a third of the state’s population is relying on a governmentsponsored health care system, counties are failing to apply to this funding that could potentially revolutionize access to mental health programs. Additionally, data from the California Department of Health Care services show that only a handful of counties apply for Mental Health Medi-Cal Administrative Activities. Those that do it receive an insignificant amount that fades in comparison to their population. In a year, California counties shut their doors to more than $100 million provided by the federal government for their mental health program. Of the 58 California counties, only 15 claimed the Mental Health Medi-Cal Administrative Activities in the 201920 fiscal year. And among the counties that did claim this fund, most received just a tiny fraction of the total statewide reimbursement of $41.7 million. SO, WHY ARE COUNTIES NOT APPLYING? It does not make any sense to walk away from such money, especially right now when many people are suffering. But, according to some county officials contacted by the California Health Report, claiming reimbursement is too complex and time-consuming! Additionally, most were concerned about the increased risk of auditing from the state. A good number also claimed that the program was inapplicable and irrelevant “Not only is it very burdensome to claim … but the state has tightened rules around claiming, increasing the burden around claiming and the audit risk,” said Jeffrey Nagel, Orange County’s deputy agency director of Behavioral Health Services, in an email. “There are other strategies

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to increase revenues that result in greater revenue with the less administrative burden and less audit risk.” Additionally, some counties that do not use this reimbursement fund use another one where they claim reimbursement for the administrative costs as part of the county’s overall Medi-cal Mental spending. This they claim is an easier and simpler process that allows counties to claim up to 15 percent of the amount spent on mental health for administrative expenses. Take Riverside for instance which has been historically known to operate well under the 15 percent administrative claim. This is why the county hasn’t applied for the MH MAA funds according to Thomas Peterson, County Spokesperson. “Our understanding is that the MH MAA reimbursement program may be utilized when a county exceeds the administrative reimbursement cap and not all costs are eligible for reimbursement as a result,” Peterson wrote in an email. Briscoe says that claiming the fund right now is particularly important as the pandemic underscored its importance. Right now, there is a dire need to squeeze every dollar and streamline it to mental health services. Local governments have to do everything in their power to meet this need. Compared to 2019, symptoms for anxiety and depressive disorders have rapidly increased according to a report by the CDC. Data Sources: https://www.calhealthreport.org/2021/02/09/ as-need-for-mental-health-care-surges-a-fundingprogram-remains-underused/ https://www.calhealthreport.org/2019/10/03/ millions-gone-unclaimed-behind-californiastroubled-mental-health-care-funding-system/ https://www.nimh.nih.gov/health/statistics/mentalillness.shtml#:~:text=Mental%20illnesses%20are%20 common%20in,(51.5%20million%20in%202019).

THE POWER IS NOW MAGAZINE | APRIL 2021

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THE POWER IS NOW MAGAZINE | APRIL 2021

It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections

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