FEBRUARY 2022 Vol. 09 | Issue 2
KEN L. HARRIS, PH.D. President & CEO The National Business League pg. 42
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magazine CENTRAL EDITION Vol. 09 | Issue 1
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
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CONTENTS
FEBRUARY 2022 FROM OUR VIP AGENTS:
POWER GREEN Pg. 8. Escaping The Fossils: How Much Will Electric Cars Save The Environment Through Cleaner Air
POWER ECONOMICS Pg. 12. Many Americans Arent Optimistic About Their Finances and Here Are Some of the Reasons
POWER REAL ESTATE Pg. 14. Here’s What To Do If You Are Struggling To Pay Your Mortgage.
POWER LENDING Pg. 16. FHFA Hikes Fees For High Balance And Second Home Mortgage. What Does This Mean for The Lending Industry?
POWER TECHNOLOGY Pg. 18. Will PropTech Change The Homebuying Experience in 2022? 4
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Pg. 21. Which mortgage is right for you? Part Five: How do I decide which mortgage lender to use?, by Sharon Bartlett. Pg. 27. Maryland Housing Market: 2022 Real Estate Market Appreciation and Housing Market Trends, by Emerick Peace. Pg. 29. Orlando Housing Market: Price | Trends | Forecast for Q1, 2022, by Adriana Montes. Pg. 33. Maybe it’s time to rethink refinancing in Arizona. Here are your options, by Yvonne McFadden. Pg. 39. Local Insights About Riverside Real Estate Market, by Ruby Frazier. Pg. 42. Ken L. Harris, Ph.D. The President & CEO The National Business League Pg. 51. How is the Corona Real Estate Market?, by Jenny Gonzalez. Pg. 55. Long Beach Real Estate Trends for Q1, 2022, by Kate Nash. Pg. 57. Are Student Loans Upending Homebuying in Riverside, by Briana Frazier.
CELEBRATING BLACK HISTORY MONTH!
POWER LEGAL Pg. 60. CFPB: The Big Three Credit Bureaus Failed Consumers By Not Fully Responding to Consumers With Errors
POWER MORTGAGE Pg. 62. Will Mortgage Rates Increase in 2022?
POWER AGENT Pg. 64. Here are 5 tips to beat burnouts in 2022
POWER HEALTH Pg. 66. America Heart Month: Let’s Take Up A Heart-Healthy Habit in 2022
POWER HISTORY Pg. 68. Black History Month: The Slave Experience for Families
SPECIAL FEATURE Pg. 70. Becoming A Landlord Is the best Way you Can Sheild Yourself from Inflation.
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February 2022 FROM THE EDITOR
F
ebruary is one of the most important months to our community as it is the month where we celebrate Black History Month. It is also the month where we remember our heroes, Martin Luther King, like Frederick Douglass, Abraham Lincoln, and Malcolm X, for their fight against slavery and discrimination. Even though Black History Month is an annual celebration, I would love to remind you that celebrating who we are has to be a daily routine. So many things have changed, and many more will continue to change, but it is disheartening that, as a community, some of the challenges we are facing today are still the challenges we faced decades ago. Not to discredit the numerous strides we have made in terms of economic progress, looking back, I feel proud being an African American; truly, we are coming from afar. But despite the progress, we still have so many things to accomplish. Look, for instance, at the housing industry, African American community is so far behind (30+ percent behind), but I do not want to dwell on housing. We have talked about that for so long. This month, I want to focus on something we’ve never actually looked at before, at least not in a deep context. Isn’t it surprising that African Americans are heavily underrepresented in corporate governance? Workplace diversity isn’t something we have to negotiate in the 21st century, but here we are. The underrepresentation of African American professionals is rampant, especially in the highest levels of governance in corporate America. And even though several reports are citing an increasing workplace diversity, 37% of S&P 500 firms do not have any black board members. In the Russell 3000, blacks constituted just 4.1%. In light of the past tragedies of George Floyd, Breonna Taylor, Ahmaud Arbery, Rayshard Brooks, and many others, one positive outcome of the tragedies was the renewed focus on the systemic racism where pressure is now mounting on corporate leaders to consider their position on rectifying the racial injustices happening. Black History Month was designated in 1915 by Carter G. Woodson and other African American leaders to celebrate the progress and contributions of Black Americans to history, society, and business. Since the tragedies happened, especially 6 | FEBRUARY 2022
with George Floyd, we’ve seen a significant number of African Americans getting promoted to corporate boards.
As we celebrate Black History Month, let us focus on these pertinent issues. It shouldn’t just be a celebration. It should be a time to re-focus on the issues that affect us as a community.
I am pleased to say that this is one of the most resourceful magazines you will ever find. Here, you will find valuable information as a buyer that will help you in your journey to homeownership, and as an investor, we will help you build wealth in real estate. As such, please take a moment to read and share our current issue. Like us on Facebook and follow us on Twitter and let us continue to support each other in all our undertakings. Through all the real estate industry’s challenges, we need to be flexible and adaptable to remain relevant and competitive. So it is with this note I send you sunshine, warmth, and summer fun for your entire family. Remember, “we are at our best, and we maximize our success when we act now.” The Power Is Now!
In light of the Black History month celebrations and keeping the month alive, we feature Ken L. Harris, the president of the current president of the National Business League (NBL). We have gone into depth with Ken’s story, from his childhood in Detroit to becoming the president of NBL.
ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.
One other area that needs to be looked at is how much African Americans are earning compared to others. For example, African American workers earn just 75 cents for every dollar earned by the whites. In addition, the median black household income continues to lag at just $30,000 below the white household median.
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FEBRUARY 2022 | 7
POWER GREEN
Escaping The Fossils: How Much Will Electric Cars Save The Environment Through Cleaner Air Last month, an incident happened that made me so reflective of how much pollution we release in oceans and air and then expect clean air. I was driving home, I can’t remember the time well, but what I do know is it was a chilled evening. So I’m driving 50Mph and suddenly I see black smoke ahead of me, I thought well, it must’ve been an accident because there’s no way such a vehicle would be allowed on the road. To my surprise, as we pull up to the traffic lights, I notice there wasn’t an accident, it was actually a vehicle on the road! It made me think, what about there were ten or even 20 trucks like that… imagine the damage we are putting out! One study by the America Lung Association revealed that billions could be saved once we make a transition from fossil fuels. Even without looking at the monetary gain of doing the right thing, imagine how many lives would be saved.
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The study continues to say that thousands of premature deaths could be averted and health care costs significantly reduced. The report “The Road to Clean Air” is a national report that highlights the potential for major public health benefits that would accrue to the nation as a result of widespread electrification of the transportation sector especially if this transition happens along with a similar move to have renewable energy power to homes and businesses. Prior to this report, there was another study that found that nearly half of Americans are living with and breathing unclean air and there are direct traces of this unhealthy air in the transportation sector. More so, this huge industry has been linked to climate change and massive air pollution. “America stands to benefit from cleaner air through a transition to electric vehicles,’’ said American Lung Association CEO and president Harold Wimmer. “Electric vehicles mean zero emissions from cars, buses, and trucks, translating to cleaner air and better health for all Americans.’’ speaking of electric cars, did you know that a decade ago there was only a handful of these, in fact, less than one-
PHOTO FROM 123RF
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am quite sure that you weren’t aware that cleaner air from zero-emission vehicles could save hundreds of thousands of lives.
Among the many barriers towards the adoption of fully electric vehicles, one of them stands out and that is the lack of access to public charging stations. Many drivers feel anxiety fearing that they could be stranded on the road without access to fuel. As such, to support the transition to electric vehicles, the country needs to increase the buildout of charging stations all across the country. Before the current administration, Environment America published a report where it outlined the need for increased charging infrastructure both at the state and national levels to support the transition to electric vehicles. After Biden took office, he promised to do that. In March last year, the president set a vigorous goal to build a network of 500,000 public EV charging Stations by 2030 as part of his wider American Jobs Plan.
quarter of one percent of the total U.S. car sales. After the U.S. House of Representatives passed the Bipartisan Infrastructure Investment and Jobs Act, the country is on track to install thousands of electric charging stations all across the country. This matters a lot and I loved that the federal government took an active role in this. In our country, the transport sector contributes the most to climate warming gases with the majority of these emissions coming from the cars and trucks that we use every day. Recognizing this fact, Environment America has been working to increase the adoption of clean, emission-free electric vehicles and has also called for a 100% of car sales to be fully electric by 2035. Getting it isn’t easy, but it’s doable, and to that end, we need three things; 1. to make electric vehicles cheaper and easier for people to buy. 2. strengthen regulation standards for all emissions. 3. layout and build infrastructure necessary to support electric cars.
The Bipartisan Bill raised $7.5 Billion which is more than enough to get the country halfway to Biden’s goal. It will also provide critical access to chargers for millions across the country. While people will be able to access their own driveway chargers, the public chargers are necessary for the many that don’t have access to off-street parking. In addition, the plan will see to it that the hard-to-reach areas that currently have little access to EV chargers are prioritized. These EV chargers will be extremely essential for long-distance travel. The support from both the Republicans and Democrats is overwhelming. The bill passed with overwhelming support at the senate with 19 republicans voting for the bill in addition to all the Democrat senators. The developments happening in an effort to combat climate change can’t come fast enough. Last year’s summer saw one in three Americans being impacted by a climate-related disaster. Scientists are in agreement that moving forward, the disaster might be far more severe and faster than previously expected. While the EV’s alone can’t do that much to combat climate disasters, they are a huge start towards creating a future powered by clean, electric transportation.
FEBRUARY 2022 | 9
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POWER ECONOMICS
Many Americans Aren’t Optimistic About Their Finances Here are some reasons
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B ankrate survey last year revealed that about two-thirds of Americans were pessimistic about their finances improving during this year. More than half of the respondents blamed inflation as a major factor affecting their finances and rightfully so. In fact, prices are rising so fast that many people are getting concerned about their financial futures.
To break it down for you, energy costs have risen 33.3% and shelter as outlined in the CPI has risen 3.8% which is the highest since 2007. In the meantime, food prices have risen 6.1%. Factoring all these increases, if you keep a budget, it will be disrupted quite significantly. If you have a mortgage or maybe pay any sort of debt or just trying to save, the rise in prices will be a much obstacle to your progress.
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Inflation began last year in November surging 6.8% from a year ago. It should be noted that this is the fastest prices have risen since 1982 according to the Department of Labor. This
year, it looks as if people will be paying more for everything from food, health care costs to the gas they use for their everyday commute.
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To that end, about 26% of Americans believe that their financial footing will be much worse this year and of those, 70% believe that inflation is the biggest barrier to their success.
About 42% believe that their financial life will remain uninterrupted, with 44% of those respondents claiming inflation as the reason for the stagnation. BUT, FOR HOW LONG CAN WE LIVE WITH INFLATION?
combat the rising prices. Part of its plan is to reduce the monthly bond purchases and then start raising the interest rates which is expected to begin in late winter or early spring. When the Central Bank raises the interest rates, it does so to slow the economy and also bring inflation down.
Well, not long! The Fed has on several occasions hinted that inflation will be temporary as it is being driven by covid-19 supply chain and demand issues. Additionally, the Central Bank December announced a series of moves to
Many people need to start tracking down their spending and looking for ways and opportunities to take full advantage of sales, coupons, and customer loyalty programs. FEBRUARY 2022 | 13
POWER REAL ESTATE
HERE’S WHAT TO DO
If You Are Struggling to Pay Your Mortgage
REACH OUT AND ASK FOR HELP One thing you need to understand is that failing to pay your mortgage will damage your credit score, which is especially worse during a financial crisis. The lower your credit score will get, the more difficult it will be for you to borrow money in case of an emergency. In addition, failure to pay off your mortgage means you become too delinquent on your mortgage thus you will be exposed to the risk of getting foreclosed. One you notice that you are struggling to pay off your mortgage, the first step for you to take is reach out to your mortgage lender right away and ask for leniency. The best thing is that many mortgage lenders understand that circumstances happen and they are willing to help you through your financial hardships. In many cases, I have seen borrowers deferring on their mortgage payments for a number of months during a crisis and even 14 | FEBRUARY 2022
though interest on the loans (may) still accrues, the payments will not be regarded as delinquent which means your lender will not report them to the credit bureaus. When you call your mortgage lender, be ready to explain some few details including; • • •
•
Why you are unable to make payments. Whether your situation is temporary or permanent. Details about your income, expenses and any other assets you may be having, like cash in bank. If you are a service member and have received permanent change of station (PCS) orders. (This is important to mention, because you may qualify for loss mitigation options because of your military move.)
GO FOR COUNSELING You may opt for a HUD approved housing counselor who can; • Review your situation with you and determine whether you qualify for any programs or are in need of additional help. • Help you to get a better understanding of your loss mitigation options your services offers and the best options that will work the best for you. • Offer guidance through the process of
PHOTOS FROM 123RF
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re you struggling to pay off your mortgage? Most people especially now are behind on their payments because of the Covid-19, it is making people not just sick but lose their incomes due to shutdowns. If you are struggling to pay off your debts, more so your mortgage, here are some steps to avoid a foreclosure.
working with the servicers and/or any programs and paperwork that may be required. •
Help you with your budgeting, credit card debt, financial management during this time all issues that can impact your mortgage payment.
You can use the CFPB’s “Find a Counselor” tool to get a list of housing counseling agencies in your area that are HUD-approved. You can also call the HOPE™ Hotline, open 24 hours a day, seven days a week, at (888) 995-HOPE (4673). SO WHAT OPTIONS ARE AVAILABLE TO YOU? There are a few options including; •
Refinancing.
•
Loan modification.
•
Work out a repayment plan.
•
Get forbearance.
•
Short sell your home.
•
Give your home back to your lender through a “deed-in-lieu of foreclosure”
WHAT HAPPENS WHEN THE LENDER
WON’T ACCEPT YOUR OFFER? There are instances where the lender might not accept what you are offering them. In such a case, you should continue paying as much as you can. But, if you think the lender hasn’t handled your case well as they should have, discuss it again with them, but you can still make a formal complaint and the lender has up to five days to acknowledge your complaints. If the lender threatens to take legal action, remember it is never too late to come into terms with the lender. Supposing you are facing a legal action for repossession, you might need help to negotiate, but you need to be prepared as this process can be extremely stressful. This is critical, and in such a case, you should proceed with caution because if you cannot make an arrangement with the lender, you could lose your home. WORST CASE SCENARIO… If you do not have enough money to continue paying off your mortgage, or any debt, you might decide selling the home but you should never do this without proper financial advice. While selling your home might seem a little extreme, sometimes it may be the best way out.
FEBRUARY 2022 | 15
POWER LENDING
PHOTOS FROM 123RF
FHFA HIKES FEES FOR HIGH BALANCE AND SECOND HOME MORTGAGE What Does This Mean for The Lending Industry?
Planning to buy a vacation home? Hold that though.
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t’s 2022 and in case you haven’t noticed, everything is getting so expensive, and that includes homes, but I bet you already knew that. After all, the prices of homes have been surging since 2010. The Federal Housing Finance Agency recently introduced new upfront fees for some highbalance and second home loans. The fees will increases between 1.125% and 3.875%, also tiered by the loan to value ratio. The changes to the fees are expected to go into effect beginning April 1, 2022. 16 | FEBRUARY 2022
So what does this mean? If you are trying to secure a loan above the conforming loan limits or buying a vacation home, you need to act sooner to save some extra cash. This pricing increases targets consumers who are applying for the conventional high balance loans and those who want second properties. Just to paint a picture for your perspective, conventional loans in the country make up about 64% of home purchase loans according to the National Association of Realtors. On the other hand, high balance mortgages are those that have a balance above the conforming loan limits which is set at $647,200 for 2022. After two years, and probably this will be the third year being terrorized by the pandemic, you
may wonder, why has FHFA taken such a drastic measure? The decision by FHFA to raise the fees is a concerted effort to facilitate “equitable and sustainable access to homeownership” while also improving the GSEs “regulatory capital position over time,” FHFA Acting Director Sandra L. Thompson said. SIMPLY, FHFA RAISED THE FEES IN ORDER TO BOOST ITS CASH RESERVES. In addition, this increase will help the Agency facilitate homeownership to first time buyers and also reach many low-to-moderate income earners. Furthermore, the agency intends to help these classes of buyers get easy access to credit. The first time buyers in high value zip codes or those living in areas with incomes at or below their area median income will be exempted from the fees. This new fees also means that the GSEs will lower their fees that many times restrict first time buyers and the low to moderate income earners become homeowners. To ensure that there’s availability of affordable house, this new fee increase does not apply to certain programs by
the GSEs such as HomeReady, Home Possible, HFA Preferred, and HFA Advantage. HOW MUCH ARE THE NEW CONFORMING LOAN FEES This all depends on the loan-to-value ratio. However, the upfront fees for the high balance loans bought by the GSEs will increase on a tiered scale between 0.25% and 0.75%. For the second homes, the loans fees will increase between 1.125% and 3.85% and also largely depends on the LTV and will be tiered to it. In addition, how much of new fees that the lenders are willing to take and how much they are willing to pass on to the borrower depends on the lender, and there is a danger to this where it is highly probable that the lenders will inflate the mortgage rates that they offer on these types of loans to offset their new incurred costs. And obviously, new incremental fees means higher rates, even without the lenders in play.
ACTION PLAN Do you want a new second home? Or are looking to get a high value loan this year? Well, apply now before the costs rise. Experts predict that interest rates will be rising quite significantly this year, now imagine that coupled with inflation. Also you need to understand that getting in right now before the fees take effect will come down to individual characteristics and how long it would take from the application of the loan to delivery. “If it’s a purchase transaction, consumers should be very conscious of the contract settlement date,” said Allied Mortgage Group COO Kyle Manseau. “And ideally, the industry and lenders need a little bit of buffer from the time a loan funds, to post-close, to prep it for delivery to the GSEs — generally a week or so. Realistically, we’re looking at 30 to 40 days.” Knowing the deadline is April 1, submitting you application two months prior will allow enough time for the regular processing time. Giving your lender as much lead time as possible will help everyone. There’s no better opportunity than now!
FEBRUARY 2022 | 17
POWER TECHNOLOGY
Will PropTech Change the Homebuying Experience in 2022?
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f anything, the pandemic highlighted, is how much the real estate industry needed new technologies to make things more flexible.
Property Technology (proptech) is one of the tech trends slowly permeating into real esttae business model. While there were remarkable advances that were already being made in this area, the pandemic induced shutdowns changed the way people interacted and lived leading to some rapid advancements designed to change the consumer’s perspectives and needs. Going into 2022, it is likely that more investments will be happening around oftware surrounding the construction and how property is managed. I think these are the two sectors that remain unexplored and were actually the areas that stood out for investment within proptech in 2021. In addition, it is highly likely that we’ll be seeing more consolidation in the industry more companies reach maturity while others are looking for exits and not to forget many of which will be looking to rejuvenate their models to accommodate progressive technologies. In order for proptech to flourish, there are multiple factors in the macroeconomic environment that must co-exist harmoniously including the shift in institutional investors buying single family homes. One of the trend we are seeing is renting is becoming more common, and with a good reason. Many people 18 | FEBRUARY 2022
cannot afford homes and inflation is on the rise. The more people are renting homes from certain institutions like Blackstone, this makes it possible for investment in different types of technologies. The fact that interest rates are also so low, this makes real estate investment as an asset class that many investors can get a decent yield on.
“Institutions are interested in real estate, and that means that technology will have to follow,” according to Lauren Weston, an associate at Thomvest Ventures. CONSTRUCTION INDUSTRY within the construction industry, tech mainly is embedded in finance, project management tech (software) and home improvement (smart homes etc.) advancements in this area are likely to gain momentum and become potential areas for investment this year. The venturebacked construction tech startups were able to raise more than $3.8 billion in funding last year according to data by Crunchbase. When looking at these areas of investment individually, you begin to uncover a web of potentiality for the real estate industry. For instance, embedded in finance, the technology that allows ease of payments (online and offline), we see a big theme where fintech is already taking roots within the braod spectrum of Proptech. This year, Fintech will dominate construction tech especially when you begin
looking at the lending industry. And just to highlight, startups like Lendflow are making it simpler for software companies to streamline their lending services into their products. In project management, technology is looking for ways to replace the ordinary things that we are used to like spreadsheets and emails. Many investors are looking for a way to digitize their operations like the pre-construction, workflows and financial management.
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“I think proptech is big and broad and, particularly within residential proptech where I focus, there are so many tailwinds in the space,” Weston said. Basically, when looking at technology and how it will influence the sphere of construction industry, generally, we see a new wave of companies coming up that are looking to combine design, offsite construction and new materials and these are the companies that will be key leading the investment and tech charge during the year. PROJECT MANAGEMENT We have to also acknowledge one fact that not so many people are talking about, Gen-Zers are becoming of age and are being absorbed in the renting space. This is a critical factor that we have to consider as an emerging theme that will affect all areas of proptech. One thing you have to remember is that Gen-Z are probably the most tech savvy generation and therefore, they are looking for properties that incorporate smart technology. Basically, this is a generation that
wants to control everything from their phone! To that end, the industry will experience a rise in demand to digitize processes and systems from how rent are being paid, how to tour properties virtually to signing agreements which will be done virtually also. “We re seeing a lot of stuff around digital tours, being able to virtually tour an apartment from online, being able to get a digital key and do a self-guided tour,” Fatima Dicko, founder and CEO of Sugar, a proptech startup that connects members of residential communities. This is a tech that was induced and accelerated by the pandemic to a point where there is a normalization of virtual tours and signings. This provides a unique opportunity for investors to invest in a technology that appeals to the Gen-Z and younger millennials. Crunchbase data reveals that there were about 125 venture-backed companies in the real estate industry group were acquired in 2021, the highest amount in the pat five years. This consoldation will last through 2022.
“There s probably going to be more consolidation between these traditional hardware companies and these residential engagement or software companies,” Dicko said.
FEBRUARY 2022 | 19
By Sharon Bartlett
Which mortgage is right for you? Part V How do I decide which mortgage lender to use?
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s finding the right mortgage lender all about finding the lowest rates? Well, that’s probably true, but do not forget that it is also important to make sure that you are comfortable with the lender you trust to originate the loan.
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Even though many companies or lenders use the same lending processes and infrastructures, many differences can affect the fees charged on the services you are receiving from the lenders. And speaking about services, you should consider the quality of services you are getting. When it comes to getting the best mortgage lender, I’d advise you to shop around. It pays to shop around and talk to at least three or four lenders before making any commitments. This will give you a sense of the person you’ll be dealing with for the next 15 or 30 years. Also, you will be able to compare the interest rates offered by the companies, the terms and conditions of the loan, and so much more. So do not settle for the first lender you come across.
It is also important to ask your agent for recommendations; remember, agents are experienced in this field; they are the boots on the ground and present a wealth of experience, but it is best to do your research. Finally, ask a friend or a family member, or better yet, reach out to me today for the best recommendation on who to work within Texas or countrywide. WHERE TO GET MORTGAGE LOANS In the last four segments of this series, we’ve mostly covered the basics of mortgage lending, where I talked mostly about the FHA Loans and Conventional loans and their differences. What I have not touched is where you can get the mortgage loans. There are so many companies and institutions that will help you get a mortgage loan; local banks, online lenders, or even mortgage brokers work with lenders.
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It is important to note that once a lender accepts your application, leading you through the whole process to closing are originating the loan. Once you close on the mortgage, the loan might be sold to another company charged with the responsibility of collecting the payments from you. CONVENTIONAL BANKS banks offer loans to their customers as part of their portfolio of services and provide other products such as savings and checking accounts. You can apply for a mortgage via two means, inperson and online, and be assigned a loan officer. Conventional banks work best for people who already have accounts and want to get personalized services from the bank. CREDIT UNIONS in the United States, there are more than 5,100 federally insured credit unions ranging from small lenders to very large corporations. And just like the banks, they have a variety of financial services that they offer to their customers, including savings and a checking account. More than half of the loans they offer are mortgages.
conventional loan such as an FHA loan. MORTGAGE BROKERS Working with mortgage brokers is by far one of the greatest benefits you can bring to yourself during this process. Mortgage brokers are well connected, and if you want someone to bring you multiple lenders and come up with the best of them all, working with the mortgage broker might be your best bet. They will review offers from a network of lenders and advise you on the best loan offer. In addition, they act as your intermediary with the lender by helping gather your documents and providing them to the underwriter. However, working with the mortgage broker might be costly as brokers often earn a fee and/or commission that you will have to pay at closing. PREPARING FOR THE PROCESS before you start your application process to seek a mortgage pre-approval, make sure that you are financially ready to take on the loan and get the best possible rates. Here are some of the things you need;
•
Getting a mortgage from a credit union is quite simple because all you need is to be a member, which means you have to have a “common bond” with other members. One of the reasons why many people opt for a credit union is because of their service and the memberonly deals that they offer. NON-MORTGAGE LENDERS these are mostly companies that offer services exclusively online. They might specialize in just mortgage loans or even offer a few types of loans in addition to the main service offering, which is mortgage loans. One of the main advantages of working with non-mortgage lenders is how they process your requests. And you might not think this is a non-issue, but some of the largest online mortgage companies have built their brands on fast turnarounds. Some of the reasons you might consider working with a non-mortgage lender are if you have blemishes on your credit or need a non22 | FEBRUARY 2022
•
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Improve your credit score: you need to check your credit score for at least several months before applying for the mortgage. If it’s bad, you need to work on improving it. Make sure also to pay any outstanding credit card balances and make sure that your payments are done on time. Save for your down payment. Even though many lenders say they need a downpayment of 20% or more, you can get as low as 3% down as long as you can effectively cover the monthly payments. Ensure that your income is stable: most lenders will want to see that you have enough income to afford the monthly payments now and also in the future.
After that, you are ready to start the process to become a homeowner. But, before settling on a winner, it’s best to first compare the interest rates that they are offering, the fees each is offering, and also, make sure what you are getting is the best deal.
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MARYLAND HOUSING MARKET:
2022 Real Estate Market Appreciation and Housing Market Trends By Emerick Peace
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he first quarter of the year has seen little change in the Maryland housing market from the previous month. If you’re considering buying or selling a home in Maryland, these Maryland housing forecasts and statistics might assist you in making an informed decision. The average price of a home according to Redfin is $ 380,430, up 8.6 percent from a year ago. Simultaneously, the number of homes sold has fallen by 8.2 percent, while the number of properties for sale has dropped by 21.2 percent to 8,499. The average price of a home is $590 less than the year before. Last week, the daily number of new listings added to the market in Maryland was 63.5 percent higher. Similarly, the number of new pending listings is 77.4 percent more than last year.
will not rise any time soon thus little chance of a market shift.
Homes in Maryland spend an average of 41 days on the market once they are listed, with a 0.7-month supply of inventory. Maryland is a seller’s market due to more buyer demand than available residences for sale. When there are 4 to 6 months of house inventory in a market, it is said to be balanced. A monthly home inventory of less than four is considered a seller’s market, while an inventory of more than six is considered a buyer’s market. Maryland’s monthly inventory
Maryland market is now neutral, with most houses selling at or slightly below their value. Expect prices in the Maryland housing market to continue growing, as inventory remains constrained, although the significant monthto-month increase has slowed. Although many expected Covid 19 to destabilize the real estate market and trigger another bubble like the Great Recession, the pandemic has enhanced housing values.
Mortgage rates, which are still historically low at 2.92 percent for a 30-year mortgage, are also linked to the increased prices. As a result, buyers are taking advantage of the situation and applying for home loans. The average rent for a studio apartment in Maryland is $1249, down 6 percent from the previous year. The average rent for a one-bedroom apartment stayed unchanged at $1,350, while the average rent for a two-bedroom apartment fell by 2 percent month over month and 5 percent year over year. The average monthly rent for a three-bedroom apartment is $1,600, up 7 percent from the previous year.
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Orlando Housing Market: Price, Trends and Forecast for Q1, 2022. By Adriana Montes
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rlando’s property market is booming, and residents and investors from all over the country are flocking to the city. Once again, Orlando has shown to be one of the top cities in Florida to invest in real estate. Orlando is proving to be a safe real estate investment location for both local and foreign investors, thanks to its gorgeous surroundings, steadily rising quality of life, growing population, and flourishing economy. In comparison to other cities with hot real estate markets, Orlando is considered a hot seller’s market by the Zillow Buyer-Seller Index (BSI). Because there is a limited supply of homes in Orlando, purchasers have to compete, which leads to higher prices and faster sales favoring sellers. According to Orlando Region Realtor Association, the median property price in Orlando is currently $328,854. According to NeighborhoodScout, home values have increased by 118.90 percent
over the last ten years, resulting in an average annual home appreciation rate of 8.15 percent, higher than the national average. This places Orlando in the top 10% of all cities in terms of real estate appreciation. The appreciation rate in Orlando over the last twelve months was roughly 9.54 percent. Homes in Orlando sell after 14 days on the market on average, down from 18 days last year. Homes typically sell for approximately list price and go pending in 12 days. Hot houses can sell for 2% above the asking price and go pending in as little as five days. Over the last year, rents in Orlando have risen by 23%. In addition, the percentage of renters in Orlando has risen to 65.2 percent, indicating a higher demand for rental properties. The reason for this is that, according to Advisor Smith statistics, Orlando has a greater job growth rate. Approximately 60% of the units are available for rent for $1,500 or less per month, 26% between
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$1,501-$2,000 per month, and 8% for $2,000 or more per month. According to Zumper Reports, the average rent for a one-bedroom apartment in Orlando is $1,665, up 37% over last year. The average two-bedroom apartment rent is $2,000, up 43% year over year, while a three-bedroom apartment rent is $2,570, up 24% year over year. With rents under $1,200 per month, Spring Pines, Carver Shores, and Rosemont North are among Orlando’s most affordable communities. In contrast, North Orange, and South Eola, are among the most costly neighborhoods to rent, with average monthly prices reaching $3,888. The city was ranked one of the best areas to buy a rental property in 2021, based on important investment characteristics such as cash flow, job market, and a growing population. As a result of these factors, the trend of rising rental costs is anticipated to continue this year. In the next twelve months, prices will rise due to a lack of supply and increased demand for property from first-time homebuyers. Low mortgage rates will continue to support the housing sector and drive up property prices. This suggests that the housing market in Orlando will continue to be a 30 | FEBRUARY 2022
seller’s market. According to Forbes, Orlando is the second-fastest-growing city in the states, because of its proximity to Walt Disney World and its high population as a metropolitan area and an industrial attraction. With all of these characteristics, Orlando is unquestionably one of the most exciting real estate markets in which to invest. Now is the moment for sellers to list their Orlando homes because prices are at an all-time high. For sellers, now is the best time to place their Orlando property on the market because home prices are rising higher and are more appealing to them at this time. On the contrary, the most common blunder made by buyers is waiting for sale prices to drop while their potential mortgage payment drops. Don’t make this mistake as a buyer! Seizing this opportunity and taking the biggest step of financial achievement of being a homeowner, is the best decision you can make this year. This is only possible if you contact The Power Is Now Media Inc. an all-time dependable real estate partner. Reach out to Adriana Montes, Our Orlando VIP agent, and get informed of your Orlando real estate market.
It may be time to rethink refinancing in Arizona Here are your options By Yvonne McFadden
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l ot goes into deciding whether to refinance or not. Among the factors that you should consider are interest rates, monthly mortgage payments, length of the mortgage, refinancing fees, cashing out equity, and opportunity cost.
And there couldn’t be a more perfect time to refinance than when interest rates are low. For two years straight, mortgage rates had fallen to 2.65 percent in January 2021, the lowest level since July 2016. There are numerous reasons to refinance, including the desire to lower your monthly payment, take advantage of low-interest rates, or gain some financial breathing room in difficult financial situations. Despite these low mortgage rates persisting through 2021, the vast majority of mortgage borrowers have yet to refinance. But as mortgage rates begin to rise, as economists had predicted, the opportunity to refinance seems well out of reach. But all hope is not lost; here are a few options that you can explore this year amid rising interest rates: HOME EQUITY LINE OF CREDIT (HELOC) If your finances are tight or you have significant expenses on the horizon, a (HELOC) or home equity loan can provide you with a source of ready money as needed. A HELOC is a mortgage loan that is secured by your home. To qualify for such a loan, you must have some equity on the house. Equity defines the difference between what is owed on the mortgage loan and the home’s current market value. In simpler homes, you must have paid down your mortgage loan to a point where that WWW.THEPINMAGAZINE.COM
amount exceeds the outstanding loan balance. ELOC contracts typically require only small, interest-only payments during the draw period, though you may have the option to pay more and have it applied to the principal. It may be challenging to obtain a HELOC right now, especially if you have less-than-perfect credit or little equity in your home. Still, it’s an option worth considering if you want to access your home equity for immediate cash. l
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RECASTING This is an option that gives you not two but three benefits. First, when you recast, you will enjoy reduced monthly payments, less interest paid over the loan’s life, and a constant interest rate. So what is recasting? Recasting, also known as a loan recast, occurs when you make a significant, lump-sum payment towards the principal balance of your mortgage, and the lender amortizes the loan. As a result, the loan balance will be reduced to reflect the new balance.
However, if you recast your mortgage for $50,000, plus a $250 recasting fee, you’ll save nearly $35,000 in interest payments and about $300 per month in mortgage payments. The downside of this method is that the money you put into the recast house will not be accessible for making investments or other purposes.
The lender typically requires at least $5,000 to recast a mortgage with this option. Besides that, you should be aware that there are associated fees with recasting. Fees vary by lender, but they rarely go over a few hundred dollars. It is important to remember that though your loan amount will decrease, the terms of your mortgage will remain unchanged.
With every option, those mentioned above and refinancing included, you should cautiously read through the pros and cons of each and conduct a cost-benefit analysis. Then, before considering recasting, check with your lender to see if they offer recasting – many don’t. It’s also not widely advertised, but most major banks provide it, such as Chase, Bank of America, and Wells Fargo. Furthermore, not all mortgages are eligible for recasting; some loans cannot be recast, such as FHA and VA loans.
For example, if one’s 30-year mortgage has a principal amount of $200,000 and an interest rate of 5%, you could pay $1,200 per month.
If you need further information, consider speaking with any of our real estate agents at The Power Is Now Media.
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Local Insights About Riverside Real Estate Market By Ruby Frazier
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he Riverside real estate market for the better part of 2022 has been nothing but hot, growing even hotter as 2021 drew to a close. If there are things that stood out the past year, it is double digits’ price appreciation, tight inventory, and bidding wars. In addition, the market saw an influx of new home buyers, prompted by low-interest rates. If you didn’t manage to buy your dream home in 2021, you might be wondering if 2022 will be it. Before taking the plunge, here are a few local insights into the Riverside real estate market: INVENTORY As of January 5, 2022, according to the California Regional Multiple Listing Service (CRMLS), Riverside, CA, currently has 136 single-family residence homes for sale. They are priced between $350,000 and $2,650,000. In the first week, there were currently 354 homes in escrow in Riverside, California, which are either pending or accepting backup offers. Riverside’s tight inventory is expected to rise slightly in 2022 as the buying frenzy of 2021 subsidies and forbearance programs expire, adding to the multiple listing service (MLS) inventories. HOME SALE Home sales in Riverside, California, have remained level through the pandemic and economic recession, and according to Firsttuesday.com, that is indicative of a recession-proof housing market.
According to homes sales data from the third quarter of 2021, homes sales went up 23% compared to the same period in 2019—an increase that firsttueday attributes to increased buyer purchase power and the fear of missing out (FOMO). With interest rates beginning to creep back up in 2022, homes sales are projected to drop slightly. That being the case because home affordability will drop. Housing affordability is expected to fall to 23% next year, down from a projected 26% in 2021. Homes sales data from December already show a home sales declines. According to Redfin.com, 352 homes were sold in December 2021, down from 405 the previous year. MORTGAGES Besides home affordability declining, there will be a lot of distressed homes sales as households struggle to keep up with their differed mortgages. According to the Mortgage Bankers Association (MBA), purchase mortgages will reach a new high of $1.61 trillion this year. This is a $0.1 trillion increase over the previous mortgage record set in 2005. In addition, new mortgage originations for home purchases are expected to total $2.32 trillion, which is less than the $2.63 trillion purchased in 2020 but still the thirdhighest total in US history. HOME PRICES Ed Pinto, director of the American Enterprise Institute’s Housing Center and former chief credit officer at Fannie Mae, predicts that home prices will continue to rise in the double digits by 2022. Managecasa.com predicts that any price increases will likely encourage some owners to hold onto their properties in anticipation of further price increases. Home sales have outpaced new listings, indicating that prices may rise further. Supply in the Bay Area fell precipitously (-42 percent), as did supply in Southern California (-24 percent). Reduced-priced listings are declining as more sellers realize they can get their asking price. After the 2020 recession, home sales volume in Riverside will begin to stabilize around 2023-2024, at which point firsttime Gen Y and Gen Z homebuyers, as well as Baby Boomer retirees, will converge to drive up sales volume and prices. Interest rates are still considerably low by all standards, and it is still an excellent time to buy your dream home. Home prices will continue to creep up, and demand for Riverside properties will increase as people escape the Los Angeles price heat. FEBRUARY 2022 | 39
COVER STORY
KEN L. HARRIS Ph.D. PRESIDENT & CEO OF THE NATIONAL BUSINESS LEAGUE
Men come... Walk the face of the earth… and then leave. Unfortunately, such is the fate for many people!
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ut great men leave an impact, something never to be forgotten for thousands of generations. Think about Moses and his exodus through the red sea… think about Albert Einstein… or, let me bring 42 | FEBRUARY 2022
you closer and let’s focus on Martin Luther King or Malcolm X… All great men who left a mark in the books of history. And to be fair, let’s also not forget about Mama Teresa, a devout nun and missionary who impacted thousands of lives, or Shirin Ebadi for being Iran’s first female judge and founder of Defenders of Human Rights Center in Iran.
CE PICTURE SOUR
Remember, the person who can bend the will of the past holds much power to influence the future…. And he who wills the ability to control the present controls the past. The legend we cover during the national freedom month is Ken L. Harris, the president and CEO of The National Business League, a historian, an Economist, a Black Business Influencer… a list that could go on and on! Indeed, Ken qualifies to be on my list of great men. THE BACKGROUND ABOUT KEN L. HARRIS Growing up on the west side of Detroit, in the Russell Woods area, Harris excelled in sports. He was offered a scholarship to play basketball at Clark Atlanta University (CAU), a Historically Black College/University, where he also found time to serve as student government president and president of Psi Chi, the international honor society in psychology CAU. He completed an undergraduate degree in psychology and a master’s degree in counseling psychology and returned to Michigan.
Before I begin writing about the great man we are featuring on this issue, I would love to quote the words of Milan Kundera, The Book of Laughter and Forgetting.
“The first step in liquidating a people is to erase its memory. Destroy its books, its culture, and its history. Then have someone write new books, manufacture a new culture, invent a new history. Before long, the nation will begin to forget what it is and what it was.”
Harris went to work for the City of Southfield, serving as the first African American chief of staff in the Mayor’s office. After leaving that position, he founded the International Detroit Black Expo, an economic empowerment agent for African American businesses in Michigan that has continued to grow to more than 1,000 Black exhibitor business members across the country and internationally, and more than 300,000 consumers a year. He obtained an educational specialist degree in educational leadership and policy studies from Wayne State University while working at the Michigan Minority Business Development Council (MMBDC) as its executive vice president of business development and strategic initiatives. During that time, Harris was elected to the Detroit Charter Commission in a city-wide election.
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He wanted to participate in a process that impacts how the Detroit city government interacts with entrepreneurs, the private sector, nonprofits, and neighborhood organizations. When asked what he learned from the experience, he said, “Service is the rent we pay for the space we occupy.” What he hadn’t yet learned how to do was slow down. Shortly after his term began, and while still working at the MMBDC, Harris decided he wanted a Ph.D. It was important for Harris to intertwine the professional knowledge he built early in his career when he enrolled in MSU’s highly regarded African American and African Studies program to pursue his doctorate. In addition, he wanted to include business, entrepreneurship, and economic perspectives to add dimension to his doctoral studies. “Dr. Rita Kiki Edozie was the program director at that time, and she was instrumental in helping me put together an interdisciplinary curriculum experience that was a dual degree with African studies, business, and entrepreneurship. I wasn’t a traditional student, but she had this amazing ability to link students, faculty, staff, and community in a field of
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Left to Right: Shenai Jackson, Wayne State University; Forrest “Sam” Carter, Michigan State University; James D. Smith, Grand Valley State University; and Ken L. Harris, National Business League. https://engagedscholar.msu.edu/magazine/volume14/harris.aspx
study that has a tremendous impact in the Black community,” said Harris. “Dr. Edozie helped me integrate economics into my program studies. She connected me to Dr. Forrest S. (Sam) Carter at the Broad College of Business, and he ended up serving as my advisor and chairing my dissertation committee. “When Dr. Carter agreed to participate, I applied and was accepted into the Broad College of Business. He had to set up a curriculum that met MSU doctoral guidelines since I was the first to blend the two disciplines. He was also excited about setting up a pipeline for future students who wanted something similar to what I wanted. I’m grateful because he accepted the challenge of working with me, along with looking forward to helping future students. “Everything started to align, but I had to break serious barriers. What did a Ph.D. in African and African American Studies look like with a business and economic background?
“I had people on my committee that had blazed their trail in multiple disciplines, and I’ve been grateful for their support. In addition to Rita Kiki Edozie and Sam Carter, I had Lisa Cook (MSU professor of economics and international relations), Ernest Betts (MSU assistant dean for multicultural studies), and Juliet Walker (professor, Department of History at the University of Texas at Austin). I benefited from their backgrounds and the things they had done.” When Harris talks about his MSU education, he emphasizes why he selected “this program” with “this university.” “Partnerships and multi-disciplinary research are essential to community work. In addition, the land-grant history, and the university’s commitment to diversity, economic inclusion, and equity, are essential to the future. I was looking for a way to put my research experience and doctoral studies to good use and do more to bridge the gap between entrepreneurship and the community,” said Harris. “Not only is MSU serious about community, as noted in their leading study abroad initiatives, but the university puts its money where its mouth is by investing in urban areas, such as their Detroit Center in the heart of the city.”
CREATING THE LARGEST EXPO IN THE US AND BECOMING THE PRESIDENT OF NBL Dr. Harris started the International Detroit Black Expo, Inc. (IDBE), which hosted more than 1,000 exhibitors from around the globe and reached 300,000 consumers, becoming one of the largest expositions in the entire country in 5 years. He was then elected to the Detroit Charter Commission by 40,149 votes in a highly contested citywide race featuring 54 candidates before serving as the President/CEO of Michigan Black Chamber of Commerce, which became the largest Black chamber in the country with more than 3,200 members. The National Negro Business League was founded in 1900 because Booker T. Washington believed that economic power contributed to progress for Blacks and their communities. In addition, he emphasized education, entrepreneurship, and networking, which are components that still resonate today with Harris. The NNBL was reincorporated in 1966 and renamed the National Business League (NBL). In 2017, the Michigan Black Chamber of Commerce merged with the NBL and announced Harris as the League’s 12th president.
The NBL’s chief focus is the economic empowerment of Black communities. With the merger, NBL has access to 2.9 million Black-owned businesses across the U.S. through 365 local leagues. “It provides the Black economic agenda with a national platform, along with 100-plus years of history and global foundation,” said Harris. Along with national and international economic waves of change, Detroit’s history has brought a range of entrepreneurial opportunities. Unfortunately, people of African descent have often felt these impacts in the extreme. Growing up, Harris saw lots of firsts that came out of Detroit. “I saw Black success and Black excellence, and it gave me a different lens and different confidence. A Black middle class thrived because the automotive industry and suppliers hired locals. Entire neighborhoods were built with Black-owned businesses and customers. We owned every aspect of products, goods, and services necessary for the community. In a way, they had to because it was pre-desegregation,” he said.
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core tenets of the League are named in Seven Principles to Prosperity, including holistic entrepreneurship, access to commerce opportunities, membership and certification development, community reinvestment and inclusion, development of political policy and advocacy, resource deployment, and technical assistance, and talent placement and acquisition.
Ken L. Harris is the president and CEO of the National Business League, the nation’s oldest voice for Black businesses, entrepreneurs, and innovators. https://engagedscholar.msu.edu/magazine/volume14/harris. aspx
Today, Harris is in charge of an organization that believes empowering an intergenerational economic shift towards wealth building will revolutionize the marketplace. He and other members of the NBL are aware of the growing technology-dependent way of doing things, especially as it pertains to doing business. “So much is changing, and I want to make sure our members have the resources they need to be competitive or innovative. The internet has opened so many new ways of doing business, from reaching customers to locating products and services. And then there’s that whole thing about what they say about your business. With social media, businesses have experienced wild successes and monumental failures. So it’s the reality that we have to figure out how to operate those tools,” Harris explained. “I always say the revolution will not be televised; it will be digitized,” he says, smiling. “That’s because we have to do things differently and participate differently than in the past.” One of the first things Harris did as the NBL president was lower the dues to encourage people to join. He wanted to increase membership and introduce members to all of their opportunities. Picking up the leadership mantle has caused Harris to work and collaborate with a far-reaching network of supporters. The 46 | FEBRUARY 2022
It means that they support business owners and innovators in multiple ways with an ambitious calendar of programs, events, and networking opportunities. “I believe we still have not reached the apex of economic and entrepreneurial development that is essential to our communities revitalizing themselves and building sustainability,” Harris said. RETURNING DETROIT AS AN EPICENTER FOR BLACK ENTREPRENEURSHIP Putting his resume and credentials aside, Harris hopes that this will be the year where NBLs works along with the member it serves will be seen and valued. The success of black businesses should matter to society too. “We have to create a conscious culture and cooperative mindset in supporting Black businesses
because the opportunity is here to return Detroit as one of the more preeminent epicenters for Black entrepreneurship in the country,” Harris said emphatically. “And that would be extremely important to our overall economic recovery and revitalization as a city.”
Development Agency, Stellantis, Comerica Bank, General Motors, and American Express) so that the organization could at least stand in the trenches for Black businesses.”
I love that Harris’s arguments are always backed by data; when explaining the importance of black businesses to Detroit, he notes, “Most people wouldn’t believe this, but 80% of the roughly 62,000 (2019 census data) businesses operated in Detroit are Black-owned. But most of those businesses don’t have any additional employees beyond the owner,” Harris said. “We should be viewing those businesses as untapped potential for growth because if those businesses were to add one, two, three, or four more people, we could quadruple our economy. It’s simple math.”
We have to acknowledge that the virus devastated black businesses, creating not only a health crisis but also an economic crisis. In Detroit, black businesses make up about 80% of the 62,000 businesses going to the data provided by the 2012 census. And despite these businesses keeping the city’s economy afloat, black residents and black businesses are being left behind to suffer through the crisis.
He also added that corporations and entrepreneurs needed to support NBL, especially in light of the organization’s recent track record. For example, he notes that in the earlier stages of the COVID-19 pandemic, the organization generated more than $20 million to assist rebuilding and innovation for national and Detroit businesses. “In October of 2019, when the experts began talking about this potentially deadly disease, our leadership, led by National Chairman Thomas W. Dortch Jr., began thinking about how we could best support Black businesses in the event of this economic crisis,” said Harris, whose organization sells tier-level memberships to businesses and corporate partners. “And then January (2020) it hit the fan. And in March (2020), we had statewide shutdowns. But the NBL had already been partnering with government agencies and companies (including the U.S. Department of Commerce Minority Business
ENSURING RACIAL JUSTICE AND EQUITY IN THE COVID-19 ECONOMIC RECOVERY
“The virus has decimated Black businesses in the city,” said Harris. “More than 40% of Black businesses have closed their doors permanently or are on their way to closure.” Some of the recent racial unrest the country has witnessed is a culmination of the systemic oppression that the Black community face, and Harris note that society cannot erase racism that defines our societal fabric until; 1) we recognize that there is a problem in how we treat the African Americans and the other minorities; 2) The problem of the Black race has been repaired and; 3) Equitable solutions toward the Black problem have been implemented. Harris has called for a solution revolution as an excellent counterresponse to how the systemic issues are amplified, especially when we have a pandemic. He explains that measurable, databased accountability and improvement would rid the nation of the shame created by
the unfair treatment of minorities. This makes a lot of sense because there hasn’t been so much improvement when looking back on the perceived black progress (economic-wise) since the Civil Rights Movement. As such, critically looking at how resources are being distributed in terms of who gets what and from where, we can pinpoint areas of significant disparities and how we can correct them. Harris gives an example where he notes the unfair distribution of the CARES Act and Paycheck Protection Program funding wherein the first round of the CARES Act investing missed small businesses and the $60 billion allocated for minority businesses in the second round had large sums left even weeks later. Again, this indicates a large disconnect between financial institutions and these business communities. “It’s not about the dispersion of cash; it’s about barriers to entry,” said Harris. People and minority businesses need guidance on the application process, direct outreach, and support in upgrading technology which are three core steps in breaking down the systemic barriers crippling Blacks and Small business communities’ access to capital. In addition, the fact that these funding disparities exist points to the need for more sustainable approaches to
funding black businesses and developing their equity within the mainstream economy. Also, recognize that the temporal and charitable approach to funding for the black businesses does more harm than good for the longevity and success of these businesses. Instead, investing more in the improvement in education and employment training and putting policies that support black entrepreneurs is essential to this effort. Harris also believes that the roadmap for black entrepreneurship success begins with health and self-care.
“It’s holistic entrepreneurship; there can be no wealth without health— mind, body, soul, and spirit,” Harris told the Detroit Free Press. “I make a concerted effort to prioritize self-care, just as the pursuit of Black economic freedom is my life’s purpose, design, and contribution during this lifetime and probably the next. It all ties in together as a lifestyle, channeling balance and alignment of the right frequency, positive energy, and high vibrational activity daily, which is a part of ancient African traditions.”
Note: This article draws a large reference from a 2019 article published in the Engaged Scholar magazine by Carla Hills, the Michigan State University Outreach and Engagement.
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How is the Corona Real Estate Market? By Jenny Gonzalez
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he Corona housing market will remain highly competitive for most of this year. It will continue to be primarily a seller’s market, with price appreciation in the double digits. However, the high demand for housing will not be met by the limited supply. Homes have received multiple offers, with most experiencing bidding wars and people eager to own homes willing to pay well above the list price. Here’s what you should know if you’re thinking about buying a home in Corona.
PHOTO FROM 123RF
PRICES The home median list price in Corona, California, is currently $797 000. It represents an increase of over 25,000 from the last week of December. The average per square foot is currently at $317 per sq. ft. The average median list price hasn’t changed much from last month but remains very high. Twenty-five percent of the listings in the MLS and Corona had price decreases in the second week of January. The price decrease is a result of sellers overpricing their homes. DAYS ON THE MARKET Into 2022 and the Corona housing market is still very competitive. Compared to a couple of weeks ago, the days on the market for Corona homes
went up from zero to seven days. The current median days on the market have risen from 18 days to 45 days. INVENTORY If you thought it impossible for the Corona inventory to drop further, then you are in for a rude awakening this 2022. Inventory is super tight and is down to 170 units of single-family units for sale. MEDIAN RENT Compared to other cities, the median rent in Corona is very high. The current median rent in Corona is $3100. For that price, we recommend homeownership because you can get a house payment. While the rates are still considerably low, we recommend that you consider getting into homeownership, as it is expected for these rates to trend up. This is also the time to sell because you need to take the equity on your home and put it into another house. The rates you had for the previous home will remain constant, but if you wait for the rates to go up, you may get more for your home, but you will be paying more for your home than the rate you purchased. Although supply constraints may ease later this year with new constructions continuing to materialize, COVID will continue to pose a threat to public health in the short term. FEBRUARY 2022 | 51
Long Beach Real Estate Trends for Q1, 2022 By Kate Nash
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he Long Beach housing market has been a popular real estate investment destination, and this does not appear to be changing anytime soon. The market for some time has been hotter than the national market, due to home prices, low mortgage rates, and low inventory. With the new year, the market has depicted only a few changes from the latest fourth quarter. It has been a seller’s market owning this situation to the pandemic outbreak.
HOME INVENTORY Single-family homes have seen closed sales drop by 12.0 percent to 190 homes, while on the other hand, condos have recorded a 27.0 percent decrease with only 92 closed sales. New home listings for SFH have dropped by 13.4 to 116 homes. As for condos, new active homes are 52 depicting a 41.6 percent decline. The high rate of decline in these numbers is due to fewer home construction activities. HOUSING PRICES The single-family homes’ median price is up by 20.3 percent costing $907,500 while for condos the median price is $481,000 which
is a 4.9 percent increase from the previous year. Typically, the median listing price for both single and condos homes have increased to $2,042,500 and $379,999 respectively. As mortgage rates and inventory are inversely linked to home prices, low mortgage rates and inventory have fueled the high prices. Despite the high prices, buyers have a lot of buying power because of the low mortgage rates. MORTGAGE RATE Like the rest of the real estate market, the Los Angeles mortgage rate is at a historic low of 3 percent. This is especially with the common 30 years fixed mortgage. The rates are predicted to slightly rise by the end of the year, implying that prices would likely slightly fall. The market may be stabilizing, but it will continue to grow in the months ahead. While housing supply continues to outpace demand, mortgage rates remain historically low. This is a perfect time for a potential buyer or seller in Long Beach, in my opinion. All you need is the appropriate real estate partner. The best partner you can get is The Power Is Now Media Inc. Contact our professional VIP agent Kate Nash today for more.
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123rf.com
MONTHLY INVENTORY SUPPLY Long Beach Month supply inventory is at 0.8 months. The days in the market for SFH are 52 and 122 days for condominium homes which are both a decrease. The average time properties are on the market is 95 days a decrease of 9.1 percent indicating that demand for property in San Diego is still outpacing supply. San Diego is unquestionably a seller’s market, with no signs of a change soon. In Q4, inventories are likely to rise as more homeowners list their houses and new listings arrive.
Are Student’s Loans Upending Homebuying in Riverside? By Briana Frazier
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very young person’s dream is to graduate from high school and live a good and affluent life. Owning a home is the main financial step that school graduates aspire to take, however, due to student loan debt, this goal is shattered. As a result, most millennials prefer to rent or live with their parents. According to research by Jain Family Institute, rising student debt has become a serious impediment to homeownership, particularly among relatively high-income young borrowers. The research raises the question, “What is the value of a college degree?” In each year of the 10-year analysis, higher student debt is associated with decreased homeownership among young adults earning $100,000 or more. The rate of homeownership among student borrowers aged 18 to 35 has plummeted by 24 percent over the last decade indicated by the research. For most Americans, homeownership has long played an essential part in establishing financial stability. Published by the Federal Reserve 2021 Survey of Consumer Finances, homeowners had a median net worth of $255,000, compared to $6,300 for renters. A study by Eduard Nilaj proves that, as the number of Americans going to college grows, the average student borrower becomes poorer. As the cost of higher education has risen, so has the cost of student loans. For a decade, student debtors’ median estimated income fell from $82,765 to $67,364. At the same time, the proportion of those having a $25,000 or more outstanding student loan balance has increased. The pandemic may have had some positive consequences, since the government’s moratorium on student-loan payments, just extended for another three months, has allowed some middle- and highincome student-loan borrowers to purchase a home, nevertheless, the rise in property prices, on the other hand, has been a deterrent, and only debt
cancellation or a significant fall in interest rates are likely to have an impact on homeownership. It is said that, instead of paying a mortgage for a home, young people incur student-loan obligations that are similar to mortgage loans in terms of the payment schedule and outstanding balance. According to a poll conducted by apartment listings, the absence of a down payment is the biggest barrier to buying a home for 62 percent of millennial renters. Only 4.4 percent of the 89.4% of potential first-time homeowners predicted it would happen in the next year, while 30.4 predicted it would happen in the following five years or longer. According to the study, “We estimate that 23 percent of college graduates without student debt can save enough for a down payment within the next five years. Compared to just 12 percent of college graduates who are currently paying off student’s debt.” The National Association of Realtors and American Student Assistance reported that 55 percent of people with student loans have put off buying a home and are not even considering homeownership. Riverside Millenials are in for some good news! Homeownership does not have to be a pipe dream. Wondering why? Simply because you can buy a home even if you have a student loan burden. You don’t have to put off your dream of becoming a homeowner since Riverside homebuilders have convinced you that you can buy a home with as little as a 5% down payment. With all of the various home program loans, all you need is a professional realtor to guide you through the process. You’ve come to the right place! Allow The Power Is Now Media Inc. to be your top realtor from beginning to end. You are assured of achieving your homeownership goal with one of our best, Brianna Frazier, a VIP agent situated in Riverside, even if you have student loan debt. FEBRUARY 2022 | 57
Frazier Group Realty Inc. 3739 Sixth Street Riverside, CA 92501
“Your Real Estate Navigator” www.fraziergrouprealty.com rubyfrazier@fraziergrouprealty.com F: (714) 908-7298 Lic# 01751773
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POWER LEGAL
CFPB: The Big Three Credit Bureaus Failed Consumers By Not Fully Responding to Consumers With Errors
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think the problems in the American Housing industry stem from the way the credit bureaus handle everything in the lending space. And I like the Biden Idea of creating a public reporting agency (CRA) that will compete with the credit oligopoly in the country and ultimately replace them. If Equifax, Experian, and TransUnion are disbanded, I am sure over 80 percent of the housing problem in the country will be eliminated. This push by Biden to create a public credit reporting agency is a part of his bigger Jobs and economic recovery plan.
The reason why the
credit oligopoly needs to be disbanded is quite obvious, just recently, a new analysis by the Consumer Financial Protection Bureau (CFPB) reveals how changes in complaint responses provided by nationwide consumer reporting companies resulted in fewer meaningful responses and less consumer relief. In 2021, Equifax, Experian, and TransUnion together reported relief in response to less than 2% of covered complaints, down from nearly 25% of covered complaints in 2019. 60 | FEBRUARY 2022
“America’s credit reporting oligopoly has little incentive to treat consumers fairly when their credit reports have errors,” said CFPB Director Rohit Chopra. “Today’s report is further evidence of the serious harms stemming from their faulty financial surveillance business model.” Credit reporting plays a critical role in consumers’ lives and has an enormous reach beyond consumer financial services. More than 200 million Americans have credit files, and lenders rely on this information to decide whether to approve loans and on what terms. Consumer reporting also informs decisions about employment, insurance, housing, and even essential utilities. For consumers, inaccuracies in credit reports drive up the cost of credit and severely limit opportunities, such as starting a small business or buying a new home. Consumers submitted more than 700,000 complaints to
the CFPB regarding Equifax, Experian, and TransUnion from January 2020 through September 2021, which represented more than 50% of all complaints received by the agency for that period. Consumers submit more complaints about inaccurate information on their credit and consumer reports than about any other problem. Consumers most frequently assert that the inaccurate information belongs to someone else, and consumers often describe being victims of identity theft. The CFPB found the three companies often failed to provide substantive responses, especially when they alleged the complaints were sent in by third parties. However, consumers can authorize thirdparty representatives to submit complaints on their behalf. EQUIFAX, EXPERIAN, AND TRANSUNION FAIL TO MEET STATUTORY OBLIGATIONS The Fair Credit Reporting Act (FCRA) requires Equifax, Experian, and TransUnion to conduct a review of complaints sent to them through the CFPB where consumers allege there
is incomplete or inaccurate information in their consumer reports and the consumer appears to have previously attempted to fix the problem with the company. The companies must then report their determinations and actions for these covered complaints to the CFPB. Today’s report shows: •
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Equifax most often promised to open investigations and send the results to the consumers at later dates, but it would fail to provide the CFPB with the outcomes of the investigations. TransUnion made similar promises and frequently failed to provide the outcomes of investigations to the CFPB. It often stated it would take no action on complaints because it believed the complaints were submitted by third parties. For many complaints, Experian frequently stated it would take no action because it believed the complaints were submitted by third parties, however, it did respond to the remaining complaints with substantive responses.
MEDICAL DEBT MISTAKES One of the main sources of consumer debt that can lead to consumer reporting inaccuracies and mistakes is medical bills. Consumers find that opaque pricing, the complex system of insurance coverage, and frequent delays in consumers finally receiving bills create an unnavigable quagmire and can make it harder to resolve billing errors. Accordingly, the CFPB’s previous
research shows consumers often struggle to even determine whether the debt belongs to them, and, if it does, whether the amount is accurate. Medical billing is just one example, but it highlights the ease with which errors, mistakes, and inaccuracies can occur, along with the financial consequences that follow. KEY FINDINGS Overall, consumers describe a consumer reporting system that is not working for them and the serious consequences that follow when inaccurate information is—and remains—on their consumer reports. Other key findings from today’s report include: •
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Equifax, Experian, and TransUnion relied heavily on template complaint responses instead of providing meaningful and thorough responses to consumers, despite having up to 60 calendar days to respond. Beginning in early 2020, Experian and TransUnion stopped providing substantive responses to consumers’ complaints if they suspected that a third party was involved in submitting a complaint. In many instances, Equifax and TransUnion promised to investigate but failed to provide the outcomes of their investigations to the CFPB and instead stated that they would forward the complaints to their “dispute channel.”
Federal law requires Equifax, Experian, and TransUnion to conduct a review of certain complaints sent to them by the CFPB to determine whether all of their legal obligations have been met with respect to the subject matter of the complaint and then to report their determinations and actions to the CFPB. However, more than 50% of these complaints did not receive this review, based in part on their suspicions that the complaints were submitted by third parties. As a result, many consumers did not receive meaningful responses to complaints submitted through the CFPB complaint process. Overall, consumers describe feeling frustrated and stressed when the nationwide consumer reporting companies’ automated processes for correcting inaccuracies do not work or when they do not get responses to their concerns. Consumers report that they spend time, energy, and money to try to correct inaccuracies. This analysis has been provided by the CFPB to read more about the Annual report of credit and consumer reporting complaints. FEBRUARY 2022 | 61
Will Mortgage Rates Increase in 2022?
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nformation about the rise of mortgage rates is spreading in the United States as inflation puts pressure on interest rates while the US economy is recovering from the Covid recession. We can only predict how high mortgage rates will get in 2022. 2021 witnessed the growth of the average 30-year fixed mortgage rate by 0.5%. Experts predict that the 30year rates will increase by 3% high to 4% low level in 2022. According to housing marketing analysts, mortgage rates will gradually increase in 2022. While there are predictions that the rise will be gradual as the year proceeds, there is no clear consensus on how much it will rise and when. Some of the reasons that will cause the rise will be the possibility of new COVI-19 variants, which continue to negatively impact the country’s economic progress. Other factors that play a significant role in the rise are; inflation, shortage of labor, material, energy supply, and the government’s increasing interference in the housing market. THE ROLE OF THE FEDERAL RESERVES The Federal Reserves has changed its plans of keeping the federal funds rate low for years due to the COVID-19 recession, which began in 2022. However, in its last meeting in December, the Federal reserves signaled three moves that will result in upward pressure on mortgage rates. Despite announcing 62 | FEBRUARY 2022
earlier in 2021 that there will be no increases in 2022. The recent announcement made by the federal reserves has placed pressure on mortgage rates. Federal reserves announced its plans to raise short-term interest rates three times in 2022 and will also speed up the unwinding of the bond market. Both of these actions are expected to help rates tick higher. The increasing government interference will play a significant role in the increase as inflation emerges as a threat to the economy and the need of the Fed to combat inflation aggressively, and one of the primary ways is enforcing higher rates. The mortgage rates may go up by 0.25% to 0.5% in the first few months of 2022. While the federal funds rate doesn’t directly affect mortgage rates, there is a strong correlation between the rate on 10-year Treasury bonds and the 30-year mortgage. That spread widened in the spring and summer. The typical gap between the 10-year government bond and the 30-year fixed-rate mortgage is 1.5 to 2 percentage points. During the scary early days of the COVID-19 pandemic, that spread rose as high as 2.7 percent. The gap has since returned to normal. Generally, an improving economy correlates to rising mortgage rates. Economists and investors think the U.S. economy will maintain the high rates even after a rebound. However, housing economists say it’s unlikely that mortgage rates will soar. Mike Frantantoni, a Chief Economist, stated that Mortgage rates will rise to 4 percent by the end of 2022 and can be more volatile as the Fed backs away from the market. While the increased mortgage rates will lead to a drop in refinances, everyone looks forward to a strong economy that will increase home sales in 2022. While mortgage rates will rise enough to discourage refinancing, they’ll remain low enough to make homebuying attractive. There will also be a recordbreaking purchase mortgage volume in 2022 and 2023. We can also look forward to moderate home price growth and a solid housing market. If you have always wanted to be a homeowner but haven’t gotten a house yet, our agents will guide you through the process. All you have to do is reach out to Eric Lawrence Frazier to access our housing programs.
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POWER MORTGAGE
POWER AGENT
5 Tips To Beat Burnouts In 2022
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any adults are suffering from burnout, a severe stress condition that has resulted in exhaustion physically, mentally, and emotionally. Do you see yourself feeling unmotivated in the morning? Is it challenging for you to deal with stress or handle your daily responsibilities? There is a lot you need to know about burnouts, its signs, and how to beat it in 2022.
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EXHAUSTION: If you are always feeling exhausted both physically and emotionally, you might have burnout, especially if you are also experiencing headaches, stomachaches, and changes in appetite or sleep. ISOLATION: Burnout causes people to feel overwhelmed. As a result, individuals may withdraw from social situations and confide in friends, family, and coworkers. Also, you may see yourself feeling dissatisfied with your never-ending working lifestyle. Your inability to handle your emotions without using drugs, alcohol, or food. IRRITABILITY. People who are burned out are more likely to lose their cool with acquaintances, coworkers, and family members. Dealing with everyday concerns like preparing for a work meeting, driving kids to school, and taking care of domestic chores can get overwhelming.
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Burnout is different from normal stress you would have after a hectic day at work. People suffering from burnout feel unmotivated and may withdraw from important activities because they feel they have nothing left to give. Their beliefs, attitudes, and approach toward life tend to be pessimistic and as a feeling of hopelessness. When untreated, burnout can result in lifethreatening psychological and physical illnesses like depression, heart disease, and diabetes.
Here are signs that you have burnout;
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3 Maintain your health
The Tips
1 Engage in self-care
Practice an intentional self-care routine to help you get started for the day. Don’t be hard on yourself, appreciate your achievements, and don’t let your losses take a toll on your mind. You may feel like others are doing better than you or think that they have gotten their lives together than you, these are signs of burnout. Stay motivated and work at your pace. Whatever sector you find yourself in, learn how to support yourself and be self-compassionate. Take a break from anything that stresses you to take care of your health.
Suppose you’re all too good at looking after others but not so good at looking after yourself. You may believe your demands to be minor or insignificant. Maintaining your physical, emotional, and psychological energy levels is essential for building resilience. The following are some examples of things you should do; spending time with family and friends, listening to music that you enjoy, doing something fun outdoors, seeing a movie, or reading a book.
4 Add moments of
tranquility into your daily routine Set aside some time each day to recharge yourself, whether it’s through peaceful meditation, a short stroll, or simply scheduling a pause. Even brief periods of quiet can improve your ability to cope with all of life’s stressors. They might even help you get more done in a day.
2 Give yourself credit
5 Overcome the feeling
Most people tend to forget about themselves when working. Instead of stressing over challenges you have no control over, focus on your mental health. Build resilience and give yourself credit for your strengths and accomplishments. You can start by making a list of things you need to do and be calm as you work towards achieving them. Don’t pressure yourself.
The Imposter Syndrome affects a majority of people. Almost all doctors have the feeling of being imposters. The Imposter Syndrome is a crippling illness that erodes self-esteem, causes excessive ruminating, and adds to burnout tiredness. Realizing that I.S. can be conquered is one step towards overcoming it.
of being an imposter
Making self-care a part of your daily practice might help you avoid burnout. Even if you’re working long hours, studying for exams, or caring for little children, remember to bring a little fun into your day. Try going for a stroll, conversing with a friend, or watching a fun television show. Small acts of self-care, such as these, can prevent stress from escalating into something more serious, such as burnout.
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POWER HEALTH
AMERICAN HEART MONTH: Let’s Take Up A Heart-Healthy Habit In 2022
American heart month is fast approaching and it reminds us of the need to take care of our heart and health. It is important to check the health habits that are hindering us from achieving improved heart health. Having a clear understanding of the risk factors for heart disease and how to lessen them will help people lead healthy lives. We are raising awareness on the significance of a healthy and strong heart and also encouraging healthy habits that help reduce the chances of heart disease.
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he rate of heart disease is increasing in the U.S. and it doesn’t exclude anyone. So, it is important to make up a heart-healthy habits such as staying active, eating healthy, and watching our weight are all important parts of maintaining a healthy cardiovascular system. Pick a new heart-healthy habit like jogging or substituting sodas with water and try to stick to it for a whole month. Educating oneself about the risk factors for heart disease, ways to prevent them, and how to stay healthy is essential. PRACTICE THESE HEALTH-HEALTHY HABITS IN 2022 •
Make an effort to consume lean protein We all know that fish and seafood are excellent sources of protein for your heart, and research suggests that reducing your intake of animal protein will significantly improve your heart health. In any case, avoiding processed meats in favor of plant protein, seafood, and lean meat cuts can help you maintain a healthy heart. Reduce cholesterol levels by eating a healthy diet: Monitor your levels and consult with your doctor if lifestyle and dietary changes aren’t enough to bring them down to a safe level.
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Exercise Speaking of getting into full swing, five or more times a week of aerobic exercise that boosts the heart rate above its normal rate for at least 15-20 minutes helps to keep the heart muscles fit and powerful. There are many low- and no-impact activities that
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will strengthen your heart while reducing the chance of injury or aggravation of other health problems. While making sure you are exercising, keep tabs on your blood pressure and make sure it stays within the healthy range. Lose excess weight to improve your heart health. •
Quit Smoking As the nicotine level drops, blood circulation improves within 30 minutes to two hours of quitting smoking. Within 12 hours, carbon monoxide levels in the blood drop, and oxygen levels rise. Within a year, the risk of a heart attack and heart disease is reduced to half that of a smoker. Within 15 years, the chance and danger of these and other heart problems are reduced to non-smoker levels.
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Limit Stress Get enough sleep, about 8-10 hours per night. Interacting with people can also help you reduce stress, so don’t self-isolate. Allow yourself to relax because stress harms the heart. Giving yourself time to enjoy the things that relax you can make a significant impact, whether you have a pet who helps you relax or a walking path that helps you clear your thoughts. If you’re seeking a relaxing pastime to incorporate into your daily routine, try meditating.
These are effective heart-healthy habits you should keep to in 2022. However, be more practical by developing an achievable plan for improving your habits and adjusting your schedule so you can stick to your plan. If you’re worried you might be at risk for heart disease, ask your doctor to perform a simple cholesterol test to let you know if you’re at risk and should make adjustments to your diet. Take an active role in reducing the risks for heart disease by being intentional about what you eat and managing your cholesterol and blood pressure. FEBRUARY 2022 | 67
POWER HISTORY
Families before the abolition of slavery experienced separation and reunion. Slaves were separated from their families and were sold to liquidate estates, settle debts, and sometimes given away as wedding presents. Over 19% of all slave marriages were forced to separate. Males were mainly taken away from their families as often. There was a preference for young slaves as analysis showed that slaveowners removed 7 percent of slave children within the eight to eleven age cohort from their families. Another 14 percent of slave children aged twelve to fourteen were sold, and children in the eight to fourteen age cohort were involved in 25 percent of all sales.
Black History Month: The Slave Experience For Families FAMILIES WITHIN THE SYSTEM OF SLAVERY Slaves and masters had varied perspectives on the concept of family. Masters had complete control over their slaves, including the authority to sell family members on the spur of the moment. Slave masters also believed they acted in the slave family’s best interests. Slaveholders sold their slaves for economic reasons, and no laws prohibited the dissolution of any slave family. Husbands and wives were separated, and mothers were separated from their children. Slaves were often threatened to be separated from their family members by their masters. Slaves formed extended ties by integrating close relatives into the family bond due to the constant threat of separation. To extend connection and memory, slaves frequently named their offspring after close relatives. They dreaded the auction block and the potential of losing themselves or 68 | FEBRUARY 2022
a family member, perhaps to the Deep South, never to be seen again. Slaves, contrary to their owners’ beliefs, had a strong bond with their families, and this affection extended to close relatives within the extended family. Evidence of slave family separations became more apparent as the Civil War (1861–1865) concluded. In 1863, the U.S. Congress created the Freedmen’s Inquiry Commission to hear the experiencesForced of slave families. Testifying before the commission was Solomon Bradley, a former slave from South Carolina who had enlisted in the South Carolina Colored Created in March 1865, the Bureau of Refugees, Freedmen, and Abandoned Lands, commonly known as the Freedmen’s Bureau, became the first federal social welfare agency. Although the agency was not tasked with finding and reuniting ex-slave families, the overwhelming demand
“Noon at the Primary School for Freedmen, Vicksburg, Mississippi”, Slavery Images: A Visual Record of the African Slave Trade and Slave Life in the Early African Diaspora, accessed February 3, 2022, http://www.slaveryimages.org/s/ slaveryimages/item/658
for reunions led agents to send telegrams, write letters, provide transportation vouchers, and, wherever possible, work to reunite ex-slave families. In some cases, ex-slaves who joined the Union army reported that masters sold their family members as retribution for enlistment. A Freedmen’s Bureau agent in St. Louis complained that he received daily reports from field officers who had black soldiers requesting protection for their families. forced off plantations and became destitute. On other occasions, the Union army caused black family separations by recruiting black men and using other ex-slaves as laborers. Poignant testimony from Freedmen’s Bureau records attests to the separation and reunion of countless black families during slavery and their efforts, along with that of the Bureau agents, to find and reunite family members. Although bureau records do not always indicate if attempts at the family reunions were successful, these and countless more examples illustrate how ex-
“Black Family, Beaufort, South Carolina, 1862”, Slavery Images: A Visual Record of the African Slave Trade and Slave Life in the Early African Diaspora, accessed February 3, 2022, http://www.slaveryimages.org/s/ slaveryimages/item/638
slaves often turned to the Freedmen’s Bureau for assistance. Bureau agents reunited Charity Cox, an eighty-year-old former slave, with her family by providing transportation. She traveled from Charlottesville, Virginia, to Shelbyville, Tennessee. The bureau issued transportation vouchers to a family of nine ex-slaves who journeyed from Mecklenburg County, Virginia, to join relatives in Washington County, Mississippi. In Richmond, Virginia, Bureau agents transported Richard Jones to Petersburg, Virginia, reuniting a son with his mother. Jones had had both legs amputated at a Richmond hospital and needed his mother’s assistance experiences forced. Overall, although many ex-slaves turned to the Freedmen’s Bureau for assistance in relocating family members, most were unsuccessful in finding their loved ones. Time and distance operated against many ex-slaves seeking family reunions. Without modern communication, slavery broke the bonds between families. FEBRUARY 2022 | 69
SPECIAL FEATURE
Becoming a Landlord is the Best Way you can Shield Yourself from Inflation If you are a follower of news headlines, you must have realized that everyone seems to be talking about inflation nowadays. And it is worrying! For the past ten years, we have been experiencing the full force of inflation in 2022, making the situation extremely volatile. So, why now? Why is inflation such a big deal today, and are you safe from inflation as a landlord?
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irst off, no one is safe from inflation; it cuts across the board from the rich, and the poorest suffer even more!
Today’s economy seems to be doing so much better. It might remain that way for a while, driven by monetary and fiscal stimulus programs, record levels of job growth, robust consumer spending, a robust housing market, and the successful rollout and vaccination of the Covid-19. In addition, just recently, the president signed a $1.2 trillion bipartisan infrastructure package, while another proposed $1.7trillion “Build Back Better Act” is still in negotiations at the congress. BUT IS IT NOT TOO EARLY TO SPECULATE A GOOD YEAR? Indeed. Remember, the pandemic is far from over, and new variants keep emerging; there have been spikes of new cases each day which ultimately might disrupt the global economic 70 | FEBRUARY 2022
recovery. And in its response to the high inflation, the Fed began to taper, and it will likely raise the federal fund’s target rate in 2022, further discouraging spending and borrowing by the consumer. HOW IS THE REAL ESTATE MARKET PERFORMING UNDER THESE CIRCUMSTANCES? We all have heard that real estate is a good hedge against inflation. Well, that is true, at least partially. However, you need to understand that as a landlord, you will have the ability to raise the rents under certain economic conditions, which will increase the property value. Another fact you must understand is that many real estate leases usually come with contractual rent bumps, which are generally directly linked to the annual inflation rates. The third fact, when inflation starts rising, that means even the replacement costs will increase too, including the costs of
construction materials, labor costs, and land parcels. One of the ways that you can use real estate as a hedge against inflation is by investing in a multi-family property. Unlike most commercial properties, which usually have multi-year business leases, individual rental units usually renew leases annually. Therefore, the more units a building has, the more opportunities to adjust rents accordingly. Furthermore, multi-family properties like apartment complexes are unique asset classes in that they are always in demand. While that is true, they also receive a high turnover rate of 47.5%. When there is a shortage of building materials and labor, home prices have significantly risen, which has, in turn, created an increase in rental rates and property values. Together, these two factors equal a property that will likely be always be occupied. I would love to highlight that expense reimbursement, which is a component of the lease, is another way real estate can pace inflation. Understand that leases pass through some form of property’s operating expenses to the tenants regardless of the type of building structure. For example, the triple net lease property holds the tenant 100% responsible for the property-related expenses. Therefore, in short, when utility costs and maintenance fees rise, the landlord is shielded, at least partially from the effects on the property cash flow. FEBRUARY 2022 | 71
Home Ownership by Eric Lawrence Frazier MBA Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever.
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Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.
It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections
Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.