JANUARY 2019 Vol. 06 | Issue 1
The Golden state faces hurdles
as it tries to go green by 2045
2019 AREAA
Global & Luxury Summit Update
How a
‘segregation tax’ is costing black American homeowners $156 Billion
Former U.S President
George W. Bush
HOME SECURE DOWN PAYMENT ASSISTANCE PROGRAM
Thousands of people each year dream of becoming homeowners. The Home Secure Down Payment Assistance Program may help that dream become reality. • This homebuyer assistance program currently provides low to- moderate income families and individuals with a 3.5% Grant* that does not have to be repaid. The grant can be used towards down payment or closing costs. If their income exceeds 115% of the HUD Area Median Income then a silent second loan will be made instead of a grant that can be forgiven if payments on the 1st mortgage are made on time for 3 years. *Grant approval is determine by many factors including your FICO Score. Minimum FICO score is 620. Silent second loan forgiveness subject to 3 years of on time payments and other program guidelines/ limitations.
• Many times this allows homebuyers to purchase a home much sooner than they thought possible. The Home Secure DPA Program is available for the purchase of an owner-occupied single, duplex, triplex or fourplex family residence, approved condominium, or planned unit development located in the state of California. • The program is available for purchases of both new and existing homes and is NOT limited to first-time homebuyers.
Contact me for more information: ERIC LAWRENCE FRAZIER MBA CA DRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com Email: eric.frazier@thepowerisnow.com Mobile: (714) 361-2105 | Office: (800) 401-8994 ext. 703 The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Department of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Department of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Department of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.
HAVE YOU READ OUR PAST ISSUES YET? the power is now
magazine THE POWER IS NOW INC. Vol. 06 | Issue 01
Eric Lawrence Frazier, MBA President and CEO Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 eric.frazier@thepowerisnow.com www.thepowerisnow.com www.blogtalkradio.com/thepowerisnow
EDITORIAL TEAM
Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Kim Collier Managing Editor (800) 401-8994 ext. 712 kim.collier@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com
CONTRIBUTORS The Power Is Now Research Team
4
The Power Is Now Magazine | Januray 2019
HEADQUARTERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92501 Ph: (800) 401-8994 | Fax: (800) 401-8994 info@thepowerisnow.com www.thepowerisnow.com www.thepinmagazine.com
the power is now
magazine STATEMENT OF COPYRIGHT: The PIN Magazine™ is owned and published electronically by The Power Is Now, Inc. Copyright 2013-2018 The Power Is Now Inc. All rights reserved. “The PIN Magazine” and distinctive logo are trademarks owned by The Power Is Now, Inc. “ThePINMagazine.com”, is a trademark of The Power Is Now, Inc. “Magazine.thepowerisnow.com”, is a trademark of The Power Is Now, Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now, Inc. Requests for permission should be directed to: info@thepowerisnow.com
CONTENTS
the power is now
magazine
12. The golden state faces hurdles al it tries to go green by 2045 16. Federal Reserves: More homebuyer refinancing applications are being rejected 18. Over half of homebuyers put less than 20% down in 2018 22. Loan officers: Tricks for using Facebook Pixels 26. Los Angeles: Housing market indicators 28. The California housing market is in serious trouble 32. Freddie MAC brings conventional financingn
to a new generation of manufactured homes 36. George H.W. Busch 42. Reverse mortgages drop to a 14-year low as David Stevens receives severe criticism 46. The power of online closing: Success guide for mortgage lenders in California 52. How a “Segregation Tax” is costing black Americans $156 Billion 56. 2019 AREAA global and luxury summit update 58. Decline in California’s uninsured rate among kids has stagnated
FROM THE EDITOR D
ear esteemed readers
Happy New Year! I cannot believe we are already in 2019, my how times flies, but in a good way. We are excited for what the future holds here at The Power Is Now. As January unfolds before us, I like to take this time to refine my game plan and goals for the next 12 months ahead. I am looking forward to the possibilities of 2019. I challenge everyone to take action and live your best life by pursuing your life’s passion, because this is not a dress rehearsal. Let’s claim 2019 as our best year yet! One of our continuous goals here at The Power Is Now is to make homeownership a dream come true for you and your clients. With that said, if you haven’t signed up for one of our many homebuyers’ workshops you are truly missing out. These workshops are created for the homebuyer in mind. At each event you will learn about down payment assistance, building credit, budgeting, and more. Rents are on the rise! Now is the time to own a
8
The Power Is Now Magazine | Januray 2019
home. Check out this link Homebuyer Seminars to see when we are in your city! I am also excited to bring you another issue of the TPIN magazine. This month on our cover we have the 41st President George H. W. Bush. President Bush served as our leader from 1989-1993. His passing brought great sorrow around the world as we celebrated the great service he gave to our country. In 1988 Bush defeated Democratic opponent Michael Dukakis, becoming the first incumbent vice president to be elected president in 152 years. You can read all about his accomplishments in this months issue. Also in this months issue we give you tips on how to leverage smart home equity options for more profitable lending. We examine the severity of the California housing market as well as why more homeowners are getting their REFI applications rejected. There is a little bit of everything in this issue to entertain, educate and get you on the road to success as an agent or broker. So dive on in folks. Lastly, The Power Is Now continues to grow and this month we are welcoming new members to the power team. You can get to know each and every member of our power team by clicking this link – https://thepowerisnow.com/the-power-team/ Thank you for your continued support and readership. Our team is dedicated to you. We want the best from you, so we are dedicated to bringing the best of us. Please take a moment and share this magazine. Knowledge is power, and The Power Is Now. Have an awesome and prosperous month.
Eric Lawrence Frazier, MBA CEO The Power Is Now Inc.
Access The Power Is Now, Inc, Anytime, Any Place
Facebook @thepowerisnow
www.thepinmagazine.com
Twitter @thepowerisnow
Linkedin @thepowerisnow
Instagram @thepowerisnow
9
NEW MARKETING SESSIONS
Your voice is your brand! Increase lead generation, and give you the POWER to close more deals!
Every Thursday 12:30 PM - 1:30 PM
Promote Your Listings Online
• Streamed live on Facebook, and are • These sessions provide real estate agents rebroadcast on BlogTalkRadio which is and brokers a powerful marketing syndicated to iTunes, TuneIn and many opportunity to access The Power Is Now other online radio platforms. During the Network of Agents nationwide and our show each agent and their listings are audience of prospective buyers and sellers featured for approximately five minutes that is 1 million strong and growing. to discuss why buyers should consider buying their listing(s). In addition, each agent will be given a post-show opportunity to launch a customized marketing campaign to get additional exposure.
ERIC LAWRENCE FRAZIER MBA CalDRE: 01143484 | NMLS 461807 The Power Is Now Inc. CalDRE: 1980407 | NMLS 1435243
Mobile: (714) 361-2105 Office: (800) 401-8994 ext. 703 Email: eric.frazier@thepowerisnow.com Website: www.thepowerisnow.com
[POWER GREEN]
The Golden State Faces Hurdles as It Tries to Go Green by 2045
T
he state of California has been one of the strongest adopters of the Paris Agreement. Governor Edmund G. Brown Jr. signed SB100, a bill that mandates all of the state’s energy to come from carbon-free sources by 2045. This is another step in support of the governor’s advocacy of a green economy. However, the Golden State has been facing challenges in ensuring its “Go Green” project is successful by 2045. Some of the hurdles the state will need to surpass are listed below.
12
White House Opposition United States President Donald Trump and the Republican party were reported not to be in support of the Paris Agreement. The president was quoted as saying: “This agreement is less about the climate and more about other countries gaining a financial advantage over the United States.” He has tried to withdraw the nation from the agreement unless a renegotiation can be agreed upon. When Governor Brown issued an executive
The Power Is Now Magazine | Januray 2019
order to ensure the state would reduce its use of cars and trucks using carbon-based fuel, the idea was received with contempt by the White House. This infuriated the Governor, and he said that the use of more carbon-based cars will destroy the nation’s efforts to build new industries around electric and other carbon-free vehicles.
Increase in Expenses Most green products available today are more expensive than the alternatives. This is another hurdle the state of California is facing to get its citizens to comply with the Paris Agreement. Green compliant building, for instance, is expected to conserve at least
“If Trump succeeds, he will destroy the American car industry and China will be the dominant car-maker because they are putting tens of billions into that.... [Trump] is killing our own companies, by subsidizing fossil fuel and these old, clunky engines. In five years, the electric car will compete with the combustion car,” he said.
Lack of Technical Expertise As much as the state has vowed to ensure all buildings comply with the Green Building Code, it lacks the required expertise to enforce and assess the compliance of builders. The use of carbon-free energy is easier to assess using the available samples around such as solar and wind-powered power sources. It is arguable that this hurdle will be easily maneuvered by the state, judging by its successful health and energy enforcement policy.
Confused Market System The citizens of California are getting confused at comparing almost everything they pay for. “Which is better, the greencompliant or this?” “Why should I choose this or that?” and dozens of other questions are running through citizens’ heads. The state needs to always remind its citizens of the advantages of green-compliant products over the others.
www.thepinmagazine.com
20% more water than conventional buildings. The required facilities to ensure this, such as flow faucets, cost extra.
Compliance Is Not Guaranteed Although the use of green compliance in cars and trucks is advocated in California, this has in no way reduced its percentage of emission from their use. Research conducted by Next 10’s new California Green Innovation Index revealed that the 41 percent of California’s emission from transportation has not diminished – instead, it has increased by 2 percent.
Sources: https://www.forbes.com/sites/trevornace/2017/08/01/ california-goes-all-in-100-percent-renewable-energyby-2045/ https://www.pressherald.com/2018/09/13/obstacles-ascalif-tries-to-go-green-by-2045/
13
WANT TO BUY OR SELL?
IF YOU WANT A REALTOR WHO WILL GO ABOVE AND BEYOND FOR YOU WHETHER YOU’RE A BUYER OR SELLER LOOK NO FURTHER. I WORK HARD SO YOU DON’T HAVE TO!
Alexandra Trefry
REALTOR BRE # 01987453 (800) 401-8994 x 753 (707) 494-2028 alexandra.trefry@thepowerisnow.com
w w w . t h e p o w e r i s no w . c o m
Linda Larson Cal BRE # 01183012
Real estate Agent
Realtor | Clearlake O: 800-401-8994 x 7202 D: 707-257-1288 danon.burnside@thepowerisnow.com www.thepowerisnow.com www.applytobuynow.com
[POWER ECONOMICS]
Federal Reserves:
More Homebuyer Refinancing Applications Are Being Rejected
A
recently concluded survey report by the Federal Reserve Bank of New York’s Center for Microeconomic Data found that more homeowners refinancing applications are being rejected, even though the number of applications is less than that of last year. The wide-ranging data, research, and analysis produced by CMD researchers provide insight into individual-level financial and nonfinancial economic conditions, expectations, and behavior in the United States. The SCE Credit Access Survey is conducted every four months to assess respondents’ experiences with and expectations of applying for and obtaining credit. In the recent October report the refinance application rate was 47.8% – about 1.2% less than that of last year
16
The Power Is Now Magazine | Januray 2019
(49%). The data revealed an increased rate of rejection by 5.5% – from 15.7% in 2017 to 21.2% this year. There was also an increase in the number of reported cases of lenders closing customers’ accounts, most notably credit cards.
The Fed reported: “The October rejection rate on mortgage refinance applications of 34.3% is the highest reading since the start of the SCE Credit Access Survey in October 2013. For 2018 overall, rejection rates for credit cards and credit card limit extensions and for mortgage refinancing exceeded those in 2017.” With the increasing interest rates, borrowers are getting discouraged, with many saying they are not ready to apply for any loan in the next 12 months. Only 6.8% of respondents said they might consider applying over the next 12 months. That number has fallen from 8.2% last year. The Mortgage Bankers Association (MBA) reported a 0.1% reduction in total mortgage application in just a week, accruing to a 22% reduction compared to last year. The refinance loan application decreased to about 40% compared to a year ago. “Every single data point is now extending to ‘what does this mean for the Fed,’ and rate-hike… continue to shrink,” said Peter Boockvar, Bleakley Advisory Group chief investment
www.thepinmagazine.com
officer. On the starker side, blacks who applied for refinancing home were reported to be rejected 39% of the time, Hispanic whites 30.2% of the time, Asians 24.8% of the time, and non-Hispanic whites 22.9% of the time. Not only is there a great disparity in the rejection rate, but the interest rate is also higher for blacks – about 1.5% higher than the average prime offer rate. According to Kenneth R. Harney, a contract reporter, “Lenders insist the disparity is in no way evidence of illegal discrimination but instead a reflection of long-term economic and wealth disparities among racial groups and differing rates of disqualifying issues in applications.” In defense of the loan disparity, the chief economist for the Mortgage Bankers Association, Michael Fratantoni, says, “The vast majority of lenders are interested in making as many high-quality loans as they possibly can and work with any borrower who comes in the door.” Irrespective of race or increased interest rate, it is evident homebuyers are getting their refinance applications rejected at an increasingly high rate.
Sources: https://www.housingwire.com/ articles/47609-federal-reserve-morehomeowners-are-getting-their-refiapplications-rejected
17
[POWER LENDING]
Over Half of Homebuyers Put Less Than 20% Down in 2018
O
wning a home is a ma jor part of the American Dream, and unlike previous generations, millennial homebuyers have lots of funding sources to sponsor their home purchase. However, as opposed to the conventional 20 percent down payment expected from anyone willing to buy a house, most homebuyers today put less than 20 percent down payment. In a survey conducted by the National Association of Realtors (NAR), more than 70% non-cash first-time home buyers did not put down 20%. More than 54% of total buyers since 2012 put down less than 20 percent, while 60% of firsttime homebuyers put down an average of 60% or less. In a similar survey conducted by Zillow Group and published in the Consumer Housing Trends Report, the same trend was observed – only the percentage is dependent on the area. Nationally, 24.4% of buyers were estimated to put down 5% or less; in Atlanta, 44.5%; and in Phoenix, 36.9%. The effect of this new trend of buyers putting less than 20 percent as a down payment for their new homes and none for funds from sponsors like the VA would be determined by the individuals. According to Zillow research, it takes more than seven years for a typical American would-be home homeowner to save up a 20 percent down payment, and more than 18 years in areas like San Francisco.
“Saving up for a down payment can be tough and requires good budgeting and long-term planning, especially when for many of us the cost of rent and everyday life outpaces what we’re able to put in the bank,” said Aaron Terrazas, Senior Economist for Zillow. 18
The Power Is Now Magazine | Januray 2019
There are many options for paying a lower or zero down payment for a home – homebuyers decide on the most suitable option for them. However, it requires some careful analysis to avoid hurting themselves in the long run, according to Mr. Terrazas. “Many mortgage options require less than 20% down, but buyers should be careful that they don’t set themsel ves up to be underwater.”
down 20% or more may also qualify for a better mortgage interest rate and a lower monthly payment. Experts advise homebuyers to consult a mortgage professional to determine what type of financing and down payment plan is best for them.
When homebuyers discover a good fit, it could allow them to do other things such as investing with the rest of the cash, which would have been impossible if they had paid the 20 percent down payment, as stated by Trulia, an online residential real estate site. On the other hand, the disadvantages of this method could include a requirement for private mortgage insurance (PMI) by most lenders to offset risk and a mortgage insurance premium (MIP) for FHA loans. According to personal finance website NerdWallet, buyers who put
www.thepinmagazine.com
Sources: http://zillow.mediaroom.com/2018-12-14-Millennial-HomeBuyers-Most-Likely-to-Put-Less-Than-20-Down http://journal.firsttuesday.us/over-half-of-homebuyers-putless-than-20-down-in-2018/65693/
19
LEADERS WANTED!
“
We make the American Dream of Homeownership a Reality
1. We pay the Highest Compensation and Marketing � Teams are Welcome and Can Maximize Their Support Package for real estate agents than any Income with Competitive Commission Splits. other real estate firm in California. Our buyers’ agents can make up to 100% of the commission on 3. Free Marketing Support: their transactions. Here are additional benefits: � Social Media Management & Support � Promotional Interviews on BlogTalkRadio � Live Online Homebuyer Seminars & Homebuyer Events � Financial Support for Marketing � Free Listing Sign Post & Business Cards � Online TV & Video Productions 2. Territory Management - Exclusivity: � Live Homebuyer Seminars & Online Resources � Website IDX & CRM Management � Exclusive Areas/Territories for All Agents. � Professional Coaching & Business Planning � Exclusive Broker Management Opportunities & � Lead Management & Follow Up Support compensation. � Unmatched Compensation Model for Managers � Marketing & Branding Graphic Design Support and Directors.
� � � � �
No Monthly Fees No Franchise Fee No Broker Admin Fee No Office Admin Fees No Nonsense, No Games, Whatsoever
Please call for more details: ERIC LAWRENCE FRAZIER, MBA President & CEO Direct: (714) 475-8629 Office: (800) 401-8994 ext. 701 eric.frazier@thepowerisnow.com www.thepowerisnow.com The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender. Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information presented is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.
?
STILL
LOOKING LET ME HELP YOU
BUY OR SELL!
SYLVIA YOUNG BROKER DRE # 01039092 O: (800) 401-8994 X 734 | D: (510) 821-2599 SYLVIA.YOUNG@THEPOWERISNOW.COM WWW.THEPOWERISNOW.COM
[POWER TECHNOLOGY]
Loan Officers: Tricks for Using Facebook Pixels A
Facebook Pixel is a snippet of JavaScript code that helps in making the most out of your ad campaigns. It is a powerful tool that helps business managers identify which advertisements lead to the most actions. Facebook Pixels help your website deliver better leads for your real estate business by delivering adverts to your target audience. In addition, loan officers can create custom audiences for Facebook to ads, driving traffic and conversions. Here are some great insights for loan officers that will go a long way in ensuring success while using Facebook Pixels.
Generating Leads Facebook Pixels are instrumental in increasing target audience sizes. Pixel takes matching website visitors to Facebook pages, enabling loan managers to measure, optimize and build audiences for your ad campaigns. Pixel helps in penetrating specific demographics such as veterans, law enforcement personnel or even single families. A great tip is utilizing both manual matching
22
and automatic matching. By using manual matching, you capture hashed customer data (e.g., name, email or phone number). Manual matching helps by expanding your reach and matching people visiting your website with people on Facebook. Automatic advanced matching helps better measure the efficacy of your ad campaigns by capturing more attributed conversions. As a loan officer, you can place ads that will help clients find the type of loan that works best for them. This will enable you to continually widen your reach and take advantage of the online marketing options available.
The Power Is Now Magazine | Januray 2019
Tracking ROI Facebook Pixel can help track which Facebook ads yield the best bang for your buck. Track your conversion value back so that you can calculate exactly how much your return on investment was. If $250 worth of ads generates 50 leads, you can work out your exact return on investment. Pixel will also provide more detailed information on how your Facebook adverts are working for you. For example, you can track how many loan products you’ve sold in a specific duration of time.
Ads Optimization The trick here is utilizing your resources to reap maximum benefit. For instance, if your website’s goal is generating as many leads as possible, try optimizing an already existing, higher-volume action first.
Tracking Delivery A Facebook Pixel can help measures the results of your ads in an effort to enhance the relevance and usefulness of the ads. The Facebook Pixel will start sending more contextual information from your website to help you better understand and categorize the actions that people take on your site to optimize ads for delivery. The additional information sent through Pixel will include actions on your page, such as “signin” or “calculate mortgage” clicks, and will also include information from your page’s structure to better understand the context associated with these actions.
www.thepinmagazine.com
This could be in the form of remarketing to people who liked your ads but did not follow up by submitting the loans form. This will help your more qualified remarketing funnel, which in turn drives more conversions.
Sources: https://www.housingwire.com/blogs/1-rewired/post/47366loan-officers-heres-how-to-use-facebook-pixel-to-retargetleads-increase-conversions https://www.facebook.com/business/m/pixel-set-up-step-3
23
BUYING OR SELLING? MEET YOUR NEW REAL ESTATE NEIGHBOR! Lanise’s knowledge of the ever-changing real estate market and its technology will provide you with an enjoyable and hassle-free real estate process. She is committed to continuing to build her record of quality service and establish an honest, long-term relationship with each one of her clients.
LANISE SPANN Realtor DRE # 01800507 Office: (800) 401-8994 x 713 Direct: (707) 297-0398 Email: lanise.spann@thepowerisnow.com
[REAL ESTATE MARKET FOCUS]
Los Angeles Housing Market Indicators T
he housing market in Los Angeles County has still not fully recovered in terms of home sales volume and construction. Sales are slow, interest rates are high and buyers are reluctant to purchase new homes. But Los Angeles has gone through rougher times, and it always comes out stronger on the other side. The population has spiked by 5% in the last decade, with more people moving in thanks to a resurgence in the job market.
Home Sales Volume Los Angeles County home sales volume remains low, driven by a shortage in supply and increase in
26
interest rates. This year saw sales volume reach 75,500, compared to 2017’s volume of 82,000 and 2016’s volume of 81,000. Currently, home sales volume for 2018 has Los Angeles on track to be 8% below 2017’s performance in the county.
Homeownership Percentage LA has had one of the lowest homeownership rates in California, with most residents opting to rent out of convenience. California has a state-wide median homeownership rate of 55%. Homeownership rates in Los Angeles stood at 47.3% at the end of Q3 2018. The rate stood at 46.6% in the same period last year.
The Power Is Now Magazine | Januray 2019
Median Rent per Month The median rent per month for apartments in Los Angeles for November to December 2018 was $2,265. Median studio apartment rent is $1,622 a month, one-bedrooms average $2,068, and two-bedroom apartments average $2,782 per month.
Median Sales Price Demand for homes has soured in the last couple of years, especially in the greater Los Angeles area. Most single-family homes for sale average $750,000, and are anywhere from $1.8-3 million for a full-size family home. The median sales price for homes in Los Angeles from July 18 to October 17 was $802,750, based on 2,392 home sales. The median to sales price for all homes, irrespective of size, in 2018 was $686,500.
www.thepinmagazine.com
Price per Square Ft. The average apartment size in Los Angeles is around 790 square feet. Studio apartments average 502 square feet, one-bedrooms average 704 square feet, and two-bedroom apartments average 998 square feet. The average price per square foot for Los Angeles was $517, an increase of 8% compared to the same period last year.
Sources: http://journal.firsttuesday.us/los-angeles-housingindicators-2/29229/ https://www.trulia.com/real_estate/Los_Angeles-California/ market-trends/ https://www.trulia.com/real_estate/Los_Angeles-California/
27
[REAL ESTATE MARKET FOCUS]
The California Housing Market Is in serious trouble
M
ore than a decade after the worst housing crisis in the history of the United States, the housing market has gone through a ma jor resurgence, with California leading the charge. Counties across the state have in the recent past experienced a booming housing market. Silicon Valley sellers’ average profit was $426,488, San Francisco-Oakland was $318,000; Santa Cruz-Watsonville was $250,188; Napa was $209,375, and Santa Rosa was $207,813. A decrease in supply created an alarming housing shortage, which has caused prices to go through the roof. Back in June 2018, California hit a new decade home median sales record of $600,860, up 2.8% from April 2018 and 9.2% from May 2017. Meanwhile, the sales volume for homes under $250,000 have crumbled over the past two years as California faces a housing shortage.
High Prices Pushing Down Sales The steady appreciation in home prices is putting off homebuyers, leading to a consequent decrease in prices. According to Zillow, the median home value in California as of December is $557,900. California home values have gone up 5.6% over the past year, and Zillow predicts they will rise 7.6% within the next year. Buyers are reluctant to make purchases at the prevailing market rates, shifting their interests to other affordable markets. Sales have dipped significantly toward the end of 2018 across the state, with home sales facing the largest decline since 2014. The CAR anticipates that existing home sales will be down 3.2% in 2018 compared to 2017, then fall another 3.3% in 2019.
28
The Power Is Now Magazine | Januray 2019
1. Sales dropped double-digits on a yearover-year basis in the San Francisco Bay Area, the Central Coast, and the Southern California regions, while the Central Valley region experienced a relatively small sales dip of 3.9%. 2. 41 of the 51 counties reported by CAR posted a sales decline in November, with an average year-over-year sales decline of 16.8%. Twenty-six counties recorded a double-digit sales drop on an annual basis. 3. Sales for the San Francisco Bay Area as a whole fell 11.5% from a year ago. All nine Bay Area counties recorded annual sales decreases, with Marin, San Francisco, San Mateo, and Sonoma counties posting double-digit annual declines. 4. The Los Angeles Metro region posted a year-over-year sales drop of 10.1%, as home sales fell 11.2% in Los Angeles County and 14.4% in Orange County. 5. Home sales in the Inland Empire decreased 6.7% from a year ago as Riverside and San Bernardino counties posted annual sales declines of 9.0% and 3.2%, respectively.
Rising Interest Rates California’s new tax reform law has hit buyers hard as interest rates have gone up. This has led to a deterioration of the housing market with experts predicting a downward trend. “The housing market continued to deteriorate and the decline in sales worsened as interest rates remained on an upward trend,” explained CAR president Steve White. “Tax reform, which increases the cost of homeownership, also is contributing to the decline, especially in highcost areas such as the San Francisco Bay Area and Orange County.”
www.thepinmagazine.com
“Interest rates are shifting up and it causes the market to pause,” said Christopher Thornberg, the founding partner of Beacon Economics, who predicted the 2008 housing market bust. “This is how it always works.”
Dim forecast for 2019 Housing affordability is expected to dominate the California housing market in 2019. Homebuyers will be priced out of most prime areas. CAR estimates that 28% of homebuyers moved out of their current counties in 2018m compared to 21% in 2017. The downward trend shows no signs of coming to a halt, indicating a weaker housing market in 2019. During the release of the 2019 CAR forecast, Senior Vice President and Chief Economist Leslie Appleton-Young said: “The surge in home prices over the past few years due to the housing supply shortage has finally taken a toll on the market.”
“Despite an improvement in supply conditions, there is a high level of uncertainty about the direction of the market that is affecting homebuying decisions. This psychological effect is creating a mismatch in price expectations between buyers and sellers and will limit price growth in the upcoming year,” she said. “Buyers can’t afford and don’t want to pay those prices, so they’re sitting on the sidelines, waiting.” Sources: https://wolfstreet.com/2018/12/04/california-housingmarket-in-for-serious-trouble-foreign-home-buyers/
29
LINDA LARSON
MLS # 01183012 Phone: (800) 401-8994 x 702 Direct: (707) 461-4271 linda.larson@thepowerisnow.com www.thepowerisnow.com
About 1552 Oak Wood Court Ct, Lakeport 95453 Price: $ $385,000 Lot Acres: 2,716 $/Acre: $141.75 Garage: 2/Detached
Prior owner had excesses as reflected in what she did or not do to house, but nothing like Sarah Winchester. A side from certain oddities this home has striking features expected of a custom built home. A ll exterior doors except for two are french doors all nicely trimmed out as well as the windows. Hardwood flooring throughout further accentuates the wood used to trim the windows, and doors. Vaulted ceiling in kitchen, living room, and eating area are tongue, and groove pine wood adding to the use of natural materials creating a rustic elegance. Front of the house is met with cement ramp leading onto a large covered cement patio the dimensions similar in size to the main floor of house without the kitchen footprint. Located on 20 acres which border Burger Lake where the water level rises or falls depending on time of year. Majestic Madrone trees only add to the magic of this private reserve setting. A mazing you can feel so far away, but minutes to Lakeport.
Preferred Lender
ERIC LAWRENCE FRAZIER, MBA CA BRE: 01143484 | NMLS 461807 Phone: (800) 401-8994 x 703 Direct: (714) 475-8629 eric.frazier@thepowerisnow.com www.thepowerisnow.com
[POWER LEGAL]
Freddie Mac Brings Conventional Financing
to a New Generation of Manufactured Homes
B
ack in the 90s, most of the things were very standardized. Two decades later, everything has changed fast and so is the perception in people’s mind. Most of the tools used in the 90s were very much simple and straightforward, fast forward to the 21st century, everything has become so complex, thanks to the power of technology and education. Even so, it is very important and useful to make a second thought or take a second look at a product and see what transformation it has undergone through to be what it is today. One rapid transformation is in the housing market, Freddie Mac announced ChoiceHomesm conventional financing for the manufactured homes which is streamlined to help increase the availability of quality and affordable homes that the buyers want. The U.S. state of housing is currently on a meltdown, a tailspin that seems to be never-ending and has so many people questioning the direction that the country is headed. With ChoiceHomesm the lenders will be able to give the borrower with innovative financing options that they need.
The need for manufactured homes Millions of America’s families are reliant on the manufactured homes, especially the people living in rural areas. Statistically, it
32
has been proven that 22 million Americans live in manufactured housing and the need for the manufactured homes is expected to rise exponentially. According to the U.S. Census Bureau, as of the first quarter of 2018, 321,000 new manufactured homes were shipped by manufacturers into the U.S. Through ChoiceHomesm Freddie Mac designed an innovative way that would see an increment in liquidity of the manufactured homes. The program hopes to increase and provide a scalable opportunity that would bring together a variety of industry players who support manufactured housing as high-quality, affordable housing stock.
Manufactured homes may be the answer we hope for With the construction of new housing fronts taking ages to complete, today’s manufactured homes seem to be a feasible solution as they can deliver outstanding quality at a price that is up to 50 percent less per square foot than conventional site-built homes. Manufactured housing can help more Americans save to own their own homes and help in bridging the everwidening gap in housing affordability. “Finding a home is more difficult than ever because of the ongoing housing supply shortage in many parts of the country, especially when looking for a home at
The Power Is Now Magazine | Januray 2019
a lower price point,” said Mike Dawson, vice president of Single-Family Affordable Lending Strategy and Policy at Freddie Mac. “Currently there are more than 22 million families living in factory-built housing, and with that number expected to grow, there’s an opportunity for factory-built homes to address the housing supply shortage and quality housing overall. This new generation of manufactured housing might just be the best option for first-time homebuyers, Millennials, and empty-nesters looking to downsize.”
ChoiceHomesm pilot program Freddie Mac has initiated this pilot program during which it will treat the loans it purchases on manufactured housing titled as real property in the same manner as it does the Single-family homes. The program will run for two years and will help bring conventional loaning option to
www.thepinmagazine.com
the manufactured homes. These homes have features such as permanent foundations and pitched roofs. Many of these homes come with several advanced additions like energy saving features like the Energy Star Qualified Low-E Windows, programmable thermostats and minimum insulation values. This pilot program will help ease access to conventional financing that would eliminate various stringent requirements presenting a true win-win situation for both the sellers and buyers. Both the lender the borrower will benefit in the long term a more streamlined mortgage experience that is faster and less expensive.
Eligibility for the ChoiceHomesm program Freddie Mac promises to treat the loans secured by ChoiceHome like any loan
33
with the mortgage industry, non-profits, and all the levels of government and other dedicated organizations with one purpose only-to make a difference for the very low, low and moderate-income households. secured by Single-Family built homes. If the manufactured homes meet certain criteria, then it will be granted a ChoiceHome certification and thus eligible for ChoiceHome financing. The financing options may include Freddie Mac conventional loan products which include but not limited to HomeOne and Home PossibleÂŽ mortgages. The appraisers will be able to use the site-built housing as a comparison tool for valuation. In addition, manufacturers and lenders have to follow a specific HUD-Code guideline for the home construction and siting of the home in order to meet the ChoiceHome eligibility. On the other hand, the lender will be required to follow the local and the state guidelines for the manufactured housing titled as real property.
It is our Duty to Serve ChoiceHomesm is part of the Freddie Mac Duty to Serve plan. A plan that focuses on supporting the underserved markets by financing more rural and manufactured housing thus preserving more affordable housing for the homebuyers and renters nationwide. The plan includes intensified market research, increased loan purchases in the underserved neighborhoods and expanded consumer education. Freddie Mac is committed to working
34
Conclusion As of 2018, there are more than 22 million people living in the manufactured homes and the number is expected to grow. On the other hand, the population is growing fast and construction of the SFRs and MFRs stalling. Bringing the manufactured housing into the mix seems the appropriate action to address the issue of housing supply shortage and quality of housing overall. “This new generation of manufactured housing might just be the best option for first-time homebuyers, Millennials, and empty-nesters looking to downsize.� Mike Dawson, Vice President of Single Family Affordable Lending Strategy and Policy at Freddie Mac. For a consultation about the property market and mortgage, feel free to book an appointment with me, or email me at eric. frazier@thepowerisnow.com or by telephone at 800-401-8994 Ext. 703.
Sources https://www.housingwire.com/articles/47581-freddie-macwill-now-allow-conventional-financing-for-manufacturedhousing http://freddiemac.gcs-web.com/news-releases/newsrelease-details/freddie-mac-brings-conventionalfinancing-new-generation
The Power Is Now Magazine | Januray 2019
www.thepinmagazine.com
35
George H. W. Bush
Early Life of George Bush George Halbert Walker Bush was born on June 12, 1924, in Milton Massachusetts. His father Preston Sheldon Bush was an investment banker and his mother, Dorothy Walker Bush. After his birth, the Bush family moved from Milton to Greenwich Connecticut, and his childhood was mostly in Greenwich. He began his studies at Greenwich County Day school, and afterward, he joined Phillips Academy located in Massachusetts in 1938. While there, he held various positions including being the secretary to student council, the president of the senior class among other positions.
World war II After Bush graduated from Phillips Academy, he got enlisted in the U.S Army on his 18th birthday. There he took classes for aircraft carrier operations abroad USS sable, becoming a naval aviator. The training was duration of ten month in which after the completion of the course, he was commissioned in the Naval Reserve as an ensign. This commissioning was just three days after he was 19 years of age making him one of the youngest aviators in the navy. In addition, Bush was assigned as a photographic officer to Torpedo Squadron 51(VT-51). On August 1, 1944, he was promoted to lieutenant and operations against the Japanese where he began serving in Bonin Islands. Bush served in the Navy until September 1945, he was discharged just one month after Japan surrendered.
www.thepinmagazine.com
Marriage and college education During his time served in the Navy, Bush met and married his wife, Barbara Pierce. The two wed on January 6, 1945 in Rye, New York. They were blessed with six children. Their marriage, which lasted from 1945 until his death in 2018, marks the longest presidential marriage in the year 2000. Their marriage had surpassed the 54-year (1764-1818) marriage of John and Abigail Adams. After Bush’s honorary discharge from the navy, he enrolled in Yale University. Graduating in just two and half years due to an accelerated program. Bush earned an undergraduate degree in economic in 1948. Bush was an active member of the Delta Kappa Epsilon Fraternity, an organization affiliated to elite and royal families, where later he would be elected as the president of the Fraternity. He was also elected president of Phi Beta Kappa and was also initiated into Skull and Bones secret society following the footsteps of his father, Prescott Bush.
37
Business and career After he graduated from Yale, he joined Dresser Industries, an oil business, and his family moved to West Texas. While he was working at Dresser Industries, his family lived in different places, which included: Odessa, Texas; Ventura, Bakersfield; Compton, California and Midland, Texas. Bush then started his own oil company; Bush-Overbey Oil Development in 1951and cofounded the Zapata Petroleum Corporation in 1953. He became the president of the Zapata Offshore Company in 1954. Bush became an agent of the United States Central Intelligence Agency in 1960. He continued to be the president to the company until 1964. He later became the chairman until he won the election in 1966 to the U.S House of Representatives.
Congressional Years. (1967-1971) His political career begun in 1963 when he became the chairman of the Harris County, Texas Republican party. He ran for the U.S Senate race in 1964 against incumbent Democrat Ralph W. Yarborough. Although he lost the election, Bush won the U.S House of Representatives in 1966 from the 7th District of Texas by 57% of the ballots cast. He was then appointed to the U.S Committee on Ways and Means and abolished the military draft. He was elected in 1968 for a second term. Bush served as an ambassador to the United Nations between 1971 and 1973. He was also the chairman of the Republican National Committee between 1973 and 1974. Between 1974 and 1975 he was the head of U.S Liaison Office in China. He was the Director of Central Intelligence in 1976 to 1977. Between 1977 and 1980 he held other senior positions in the government. Bush campaigned for the U.S presidency in 1980 and lost, but Reagan made a last -minute decision and selected Bush to be his Vicepresidential nominee.
Vice Presidency. (1981-1985). Ronald Reagan won the elections in 1981 making Bush the reigning vice president. Bush did an excellent job as the head of the Senate by keeping the president informed of all the activities that concerned the senate. Reagan and Bush ran for a second term and won, which began in 1985 to 1989. After their second term, Bush decided to run for the president of the United States; he won the election in 1989.
38
The Power Is Now Magazine | Januray 2019
second term but lost due to lack of a unified front in his party. Despite his loss, Brush’s term in office was voted as the most positive era giving him a favorable ranking amongst past presidents.
Death Presidency. (1989-1993) Bush was inaugurated on January 20, 1989, and succeeded Ronald Reagan. He was involved in many changes of the United States that included the economy, education among other significant contributions. He created the Daily Point of Light Award in 1989 to recognize all the ordinary Americans to solve community problems. He also made judicial appointments between 1990 and 1991. He received many awards and honors from various institutions. After the end of Bush’s first term, he ran for a
www.thepinmagazine.com
George H.W Bush passed on November 30, 2018, due to vascular Parkinsonism. He was 94 years old. His legacy still is fresh in our memories and will always be remembered for all his contributions in the United States politics. May his soul rest in eternal peace.
References https://www.britannica.com/place/United-States/The-late20th-century#ref613310 https://www.biography.com/people/george-hwbush-38066 https://en.wikipedia.org/wiki/George_H._W._Bush
39
MOVING ON TO YOUR IDEAL PROPERTY?
CALL ME ! U O Y P L E H N I CA APRIL HARRIS City Manager - Wine Country, CA BRE # 01988009 Office: 800-401-8994 x 717 Direct: 707-814-5457 Email: april.harris@thepowerisnow.com Website: www.thepowerisnow.com
[POWER MORTGAGE]
Reverse Mortgages Drop to a 14-Year Low
as David Stevens Receives Severe Criticism
T
he head of the Federal Housing Administration and the Mortgage Bankers Association, David Stevens, made some hurtful statements concerning reverse mortgages. His statements caused a lot of outrage among affiliates in the industry. David Stevens commented on what he believed to have been an “outrageous profit” and a “predatory sales approach” in a current LinkedIn post which was directed towards HECM lenders. He claimed to being kept awake at night due to this issue all through his tenure as FHA commissioner. Furthermore, he detailed his post in an article for Housing Wire, specifying his problems and views concerning the product, with a few
42
suggested solutions. David said, “Commissioner Montgomery has added supportive amendments, but I would suggest additional ones.” His suggestions included: • Capping lender profits • Launching a reserve for home maintenance • Necessitating borrower criterion and minimum credit scores • Prohibiting older partners or spouses from being the lone borrower so as to obtain more funds • Getting rid of the complete draw and only dispersing payments over time
The Power Is Now Magazine | Januray 2019
David never held himself back from voicing his opinion. Concerning his post on LinkedIn, he had several individuals who supported his view – but also had other strongly contradicting his points. Now, these suggestions made by David Stevens have garnered the rage of experts in the reverse mortgage space. Many individuals have concluded that his comments did not succeed in recognizing the program modifications that have already happened. Some have claimed that his assessment of the situation is archaic and illinformed. An individual that goes by the name “Mark Browning,” a long-time member in the reverse mortgage space, announced that “David Stevens’ observations concerning the financial sustainability of HECM is the first main concern, but is a method of approach that is quite old-fashioned.” After David Stevens’s retirement from the position in 2011, having held the position as FHA commissioner starting in 2009, several crucial program modifications have been introduced. “David Stevens view in regards to inhibiting spouses has
www.thepinmagazine.com
been forwarded through two mortgage letters which were handed out in 2014 and 2015, and to the effect, primary HECM proceeds must be established on the youngest borrower or the non-borrowing spouse,” Dan Hultquist commented. “Every individual who is a member of the industry understands that the term “full-draw” implies a 100% use of the entire 50%-principal limit. But even this has been constrained since 2013.” “In order to pull in new business, individuals that lend are competing for more than they used to, particularly with endorsement level being down,” the president of Reverse Focus Shannon Hicks, added.
References: https://www.housingwire.com/ articles/47615-reverse-mortgageindustry-reacts-to-david-stevenscriticism https://www.nationalmortgagenews. com/news/mbas-david-stevens-atough-act-to-follow-for-new-ceorobert-broeksmit
43
PUTTING OUR CUSTOMERS FIRST: Let Your Search End Here For a Professional Realtor
DRE: 01804551
We specialize Residential and Commercial Real Estate as well as Property Management. Serving the Inland Empire, Orange and Los Angeles counties. We have been in business for over ten years and as seasoned professionals, we are capable of addressing all of your real estate needs. We are ready to assist you with all of your real estate needs.
Our approach is customized for each of our clients; our solutions are never onesize-fits-all. When you are ready to schedule a free home buying or selling consultation please feel free to contact us
FRAZIER GROUP REALTY “Your Real Estate Navigator� 3739 Sixth Street Riverside, California 92501 (951) 686-5261 info@ fraziergrouprealty.com www.fraziergrouprealty.com
[POWER MORTGAGE]
The Power of Online Closing: Success Guide for Mortgage Lenders in California
I
f you want to have a successful career as an online mortgage lender in California, it is important for you to have a few of the following characteristics. These traits will help you stand out from the rest in terms of professionalism and skill when it comes to closing both online and offline deals for various clients all over the country.
Top Four Criteria 1. Be Driven Initially, you have to have a strong sense of drive. Being driven goes a long way if you are trying to close mortgages. Top mortgage lenders in the industry always try to get business in whatever way possible, and they do not take no for an answer if they can afford not to. If they fail to get the business of a certain realtor the first time, they will go back to the drawing board and study the client even more.
46
Sometimes, realtors and homeowners say no because they just do not see the value of borrowing some money for a mortgage. However, if you are able to show them the importance of a mortgage lender in their lives, they will certainly approach you for business sooner rather than later. 2. Develop a Good CRM System As a mortgage lender, it is your duty to have a system that keeps track of your client needs and revenue each month. There are many tools that you can use to develop your own system in the future. Here are five of them: •
Salesforce
•
Hubspot
•
Fresh Sales
•
Insightly
•
Nimble
The Power Is Now Magazine | Januray 2019
CRM software like that listed above will help you as a mortgage lender manage customer data and interactions through automated marketing, sales, and customer support. It will help you retrieve business information so as to further improve your own client and employee relationships. Scalability is another criterion that could be very helpful for mortgage lenders, because it will help attend to the needs of any kind of mortgage-related businesses, no matter the size.
4. Do Your Homework You have to get a sense of whether refinancing a property would be worth it, even if the transaction is taking place online. You should arrange an inspection of the property so as to have an idea of what it is worth and what the clients can do to save on mortgage payments. By doing this, you will be able to give the clients the greatest source of information that could help them decide whether to get a mortgage for their house or not. Then and only then can you close down mortgages online.
3. Have a Good Business Plan If you want to be successful in closing a profitable mortgage deal online, you ought to have a good business plan to follow. For example, having ample knowledge as to where it would be best to get possible loans and other financial resources to pay off client mortgages can turn mortgage lenders like you into a valuable resource of information for your own clientele in the future. Having a vast network and professionalism when it comes to delivering all sorts of information to the client will give you a good reputation for business. You have to be able to build yourself up before you can convince others of your worth as a mortgage lender. You can only do this with a good business plan in your hands. Online transactions are heavily reliant on information presented via the web. If you don’t have enough credentials as a mortgage lender, you won’t have the tools to convince the client that you will be wellequipped in closing mortgage deals on the web even before it begins.
www.thepinmagazine.com
Conclusion With these particular criteria and tips, you will certainly become an effective California mortgage lender online. The key here is to gather all the pertinent data about clients and what they want so that you can give it to them without delay. You will become extremely successful at your job if you are able to follow through with your clients in the shortest amount of time possible.
References: https://financesonline.com/15-best-crm-softwaresystems-business/ https://www.mpamag.com/news/renovation-loans/ eight-habits-and-traits-of-successful-mortgageoriginators-10724.aspx https://www.forbes.com/sites/learnvest/2013/07/17/ secrets-of-a-mortgage-loan-officer/#556191387e81
47
[POWER TECHNOLOGY]
How to Leverage Smart Home Equity Option
for More Profitable Lending E
quity is generally one of the greatest advantages of home or property ownership. Equity is created when your home adds more value over time, either through you making home improvements that give an increase to the value of your home or you making a payment on your mortgage principal. The more the value of the price rises, the more home equity loans are worth, thereby serving as a source of additional cash for most homeowners. Lending against smart home equity could be an easy way to get cash access. It is not without risks, though, so there should be a serious consideration and weighing of your options. Consider not just how this will be of help to you today, but also what value it will bring you in the future. Choosing a smart home equity option is a step that should be taken cautiously, and not just for any reason. Home equity loans shouldn’t be taken for spending lavishly on luxury lifestyles you cannot actually afford. This has an adverse effect on both the house and the homeowners, and you might end up losing your house. Here are some ways to make sure you’re making the right choice with a home equity loan or line of credit.
48
The Power Is Now Magazine | Januray 2019
Choose Loan Type Wisely There are two types of smart home equity options: “home equity loans” and “HELOCs.” The home equity loan is taken as a lump sum, with payments made at a fixed interest rate and during a fixed period of time. HELOC is closer to a credit card; a particular credit amount is made available as needed for a limited period of time (between five and ten years), with a repayment period of about 20 years. Picking the right smart home equity option is a critical decision that should be undertaken with care.
Improve Home Value This is one of the most common ways to increase the amount of equity in your home. Repairs, remodelling and replacing worn-out equipment are all good ways to boost the value of your home. Use Smart Home Equity Loan to Reduce Your Interest Payments Since smart home equity loans are low interest, you can use them to pay off credit card balances that have a high interest rate. The fact that smart home equity loans are tax deductible is quite an advantage, since mortgage interest can be subtracted from taxable income, but the interest on credit cards is not tax deductible.
Consider Investing in LongTerm Stocks Considering a long-term investment could be good if the money from this could be greater by what you would get paying off your home loan. Stocks could be an option.
Create an Emergency Money/ Savings Account Building up emergency savings is quite important. It is recommended that you build up a few months of living expenses in a place where withdrawals can be made without delay in unexpected situations. Without this, you could forfeit your home, plus the equity you have been working so hard to build up, if you fall sick or lose your job.
Real Estate Investment Your home equity could be used as a means for real estate investment – it could be a down payment to renovate or buy an investment property. Investment properties are a source of financial independence, stability, and security, but only if they can generate rent that will cover your home loan. Regardless of how you use it, smart home equity should be utilized wisely.
References: https://www.retirebeforedad.com/use-homeequity-loan-to-invest/ https://www.coachcarson.com/smart-leveragein-real-estate-investing/ http://www.mrmoneymustache. com/2012/04/25/unlocking-your-home-equityfor-profitable-investments/
www.thepinmagazine.com
49
Alshaun Rodgers REAL ESTATE AGENT DRE # 01374164
(800) 401-8994 X 742 | (310) 227-2247 ALSHAUN.RODGERS @ THEPOWERIS NOW.COM WWW.THEPOWERIS NOW.COM
Robin Davis Realtor | CalDRE # 01971982
Phone: (800) 401-8994 x 706 Direct: (925) 565-4848 robin.davis@thepowerisnow.com www.thepowerisnow.com
[POWER YOU]
How a “Segregation Tax” Is Costing Black American Homeowners $156 Billion T
he true practice of Schelling’s models of segregation has been revealed by a joint survey conducted by Brookings Institution and Gallup. The research revealed black Americans nationwide lose nothing less than $156 billion in property investment deals. According to the published report, titled “The devaluation of assets in black neighborhoods: The case of residential property,” owner-occupied homes are undervalued by the real estate market across all ma jority-black neighborhoods, and consistently sell or are appraised for lower prices, at an average of $48,000 less per home. The estimated total of loss through what the report named a “segregation tax” nationwide amounts to $156 billion in cumulated losses. The dubbed name of the result by the team of researchers is in compliance with Thomas Schelling model of segregation which is interpreted “even though racial segregation is generally outlawed, it may still exist de facto through social norms, even when there is no strong individual preference for it.” The research team noted, “For much of the 20th century, the devaluing of black lives led to segregation and racist federal housing policy through redlining that shut out chances for black people to purchase homes and build wealth, making it more difficult to start and invest in businesses and afford college tuition.” The story has not changed much, even though laws have changed. The difference in property valuation in a black neighborhood is not because of the lack of amenities. This “segregation tax” enables buyers to evaluate homes in neighborhoods where the share of the population is 50% black at roughly half the price as homes in neighborhoods with no
52
The Power Is Now Magazine | Januray 2019
black residents. The effect of this is reported in the upward mobility of black children in metropolitan areas with ma jority black neighborhoods. In U.S. metropolitan areas, according to the survey, 10% of neighborhoods are ma jority black, and they are home to 41% of the black population living in metropolitan areas and 37% of the U.S. black population. Giving these statistics, bigotry is still playing a huge role in the U.S.
property values for the 119 metropolitan areas with ma jority black neighborhoods. More than the chunks of cash the undefined “segregation tax” is costing these black American homeowners, it is also affecting the future of their children, who would be better off in areas with a better valuation of the property, since it makes the family richer.
“If we can detect how much racism depletes wealth from black homeowners, we can begin to address bigotry principally by giving black homeowners and policymakers a target price for redress,” the team noted. Researchers Andre Perry, Jonathan Rothwell, and David Harshbarger used self-reported home values from the American Community Survey and median listing prices of homes overall and per square foot, using data from Zillow to determine neighborhood demographics and
www.thepinmagazine.com
Sources: https://www.curbed.com/2018/11/27/18114490/blackhomewnership-home-value-neighborhood https://www.cnn.com/2018/12/06/perspectives/black-homeownership-undervalued-brookings/index.html
53
[NATIONAL MEETINGS]
2019 AREAA Global and Luxury
Summit Update C
oming with a network of shared ideas to the Fairmont Olympic Hotel in Seattle in 2019, the annual AREAA Global Luxury Summit is again around the corner. The AREAA Global and Luxury Summit is one of the top leading real estate occasions that makes allows the industry to observe the development of new real estate through the eyes of the Asian American community. The meeting also gives room for important, motivating subject matter in special locations, as well as access to the industry’s finest. The AREAA Global and Luxury Summit is in its eighth year of holding the interest of real estate professionals in the global class markets.
Why You Should Attend There are dozens of strong reasons you should come to the 2019 AREAA Global and Luxury Summit, including:
56
The Power Is Now Magazine | Januray 2019
• Discovering the biggest marketplace tending to the AAPI Market: AREAA Global and Luxury Summit offers every individual the opportunity to explore the largest marketplace that caters to the AAPI market. • Challenging educational lectures from global reputable and motivational speakers: With the presence of various powerful speakers from across the globe, there will be sessions specially provided in order to empower various listeners. Through these lectures, there will be powerful changes in every individual’s business. • Renew your zeal for real estate: Like a bonfire, renewing or relighting every individual’s passion for real estate is a constant. Individuals can give challenges and stand themselves up straight again when their passion for real estate is renewed. • Discovering advanced skills and technologies to boost your production and satisfy your business requirements. • Get unique connections with top professionals and industry leaders: Apart from being a partaker of the benefits of the events, the summit gives attendees the opportunity to get closer to top professionals and industry leaders.
www.thepinmagazine.com
Location of the 2019 AREAA Global and Luxury Summit The location of the 2019 AREAA Global and Luxury Summit has been selected to be Beverly Hills. Beverly Hills, which was founded by a group of investors in 1914, has gained fame for the luxury it offers. Southern California is a residential location to a large percentage of the members of AREAA. With the aid of popular television shows and films, international destinations for foreigners and a much-preferred market for magnificent residential assets, Beverly Hills is quite popular. It is indeed the perfect location to maintain a good lifestyle. Merging the classical and Spanish style together with fine-looking palm trees, it has an attractive appearance that brings various individuals together in search of beautiful places. A location with a good climate condition boosts its position as an ambitious American dream for commercial entrepreneurs and residential investors.
References: http://www.cvent.com/events/2019-areaaglobal-and-luxury-summit/custom-19-a03416e 907a84e6e99920daee1746f89.aspx?dvce=1 http://www.cvent.com/events/2019-areaaglobal-and-luxury-summit/faqs-a03416e907a 84e6e99920daee1746f89.aspx?dvce=1 https://www.areaa.org/ partnershipopportunities/
57
[HEALTH IN CALIFORNIA]
Decline in California’s Uninsured Rate Among Kids Has Stagnated
A
lmost half of young U.S. children live below or near the poverty line. Poverty and other related social determinants can lead to antagonistic health outcomes in childhood, and it doesn’t stop at that. Later in life, if unchecked, children raised in poverty tend to exhibit physical health, socioemotional development and education achievement problems. Poverty has been cited as one of the ubiquitous causes for the decline in California’s uninsured rate among children. After years of prolonged decline, the number of children in the United States without health coverage rose by a confounding 276,000 in 2017, according to a report published by Georgetown University.
58
Arguably, this is not a big jump statistically – the percentage of uninsured children rose to 5% in 2017 from 4.7% in 2016. In the midst of stable economic growth in the country, though, you have to wonder why the number of uninsured kids in the U.S. is growing. In September 2018, the U.S. employment rate hit its lowest point since 1969. A team of pediatricians lead by Ilan Shapiro have seen a dramatic turn of events in how young patients get their health care since 2014, the year in which the Affordable Care Act went into full effect. Before expanding Med-Cal, the United States Government funded health plans with the intent of providing coverage to more low-income people, with the inclusion of
The Power Is Now Magazine | Januray 2019
undocumented children. Many of primary caregivers who work with low-income people are worried. Federal attempts to undermine the integrity of the Affordable Care Act, along with the hostile policies towards immigrants, are threatening to dismantle the state’s progress towards getting nearly all children insured. The Georgetown University Report shows that the number of children across the nation without health coverage remained about the same in 2017 for the very first time since 2008. Down from 11 percent in 2008, the uninsured rate for kids stagnated at 3.1% (around 300,000 children). Compared to other states, the rate is somehow better. “California is one of the states most supportive of the expansion of the Affordable Care Act, and has been the most successful in reducing the ranks of the uninsured, not just among kids but among adults as well,” he said. “The fact that we didn’t see further declines does raise some worry that even California is having problems fighting against the headwinds that we’re seeing from what’s happening at the federal level.”
causing panic among families in the U.S. who are seeking health insurance for their children. What’s more worrying is the federal government’s removal of a mandate which required everyone to get health insurance or pay a fine, along with other conflicting reports that state other threatening changes to the health care law. “They just don’t know who to trust or what to do,” he said. “We are living in a critical moment. The Affordable Care Act was not perfect, but it was a good opening to create public health, population health… Those things are an amazing investment for the future. It would be extremely sad if we stopped doing it.” Despite the progress made, California still has the second highest number of uninsured children in the United States. To counter this worrisome number, it is best to continue enrolling eligible children in Medi-Cal. A critical element to this effort is the successful implementation of Health for All Kids, which provides Medi-Cal coverage for all incomeeligible people, regardless of their immigration status.
As we progress, the rate might increase as a result of Trump’s proposed agenda to change the public charge rule. The purported reason behind the changes is to make it harder for legal immigrants to obtain green cards if they were to receive public assistance such as MedCal. These changes would prompt immigrant families to avoid enrolling their children in health insurance plans, which could have an outsized impact on uninsured rates in California. “We’d been making significant progress over the last decade in covering all kids, and now we’re moving in the opposite direction,” Park said. “It’s a very troubling sign of things to come.” The public charge is just one of the issues
www.thepinmagazine.com
Sources: https://ccf.georgetown.edu/2018/11/21/nations-progress-onchildrens-health-coverage-reverses-course/ http://www.calhealthreport.org/2018/12/03/declinecalifornias-uninsured-rate-among-kids-stagnated-raisingconcerns/
59
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. 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.
62
The Power Is Now Magazine | Januray 2019