The PIN Magazine June/July 2015

June / July 2015 Vol. 02 | Issue 11

FEATURE: PRESIDENT OBAMA’S INCOME & TAX RETURN

REAL ESTATE MARKETS: CHICAGO & OHIO

NAREB’S NEW EXECUTIVE DIRECTOR, DRONE PHOTOGRAPHY ANTOINE THOMPSON & REAL ESTATE THE HOUSE FLIPPING TREND

California Governor

Edmund G. Brown, Jr

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

facebook.com/realogy

Don’t Miss Out on

Any of Our the PIN magazine THE POWER IS NOW INC. Vol. 02 | Issue 11 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

Previous Issues

TPIN Magazine Your resource for

real estate

EDITORIAL TEAM Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Ross Dickens Managing Editor (800) 401-8994 ext. 701 ross.dickens@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com

CONTRIBUTORS Eric Lawrence Frazier, The Power is Now Research Team

The PIN MAGAZINE | 3

www.thepowerisnow.com

page 28

page 32

CONTENTS: Mission and Vision of the PIN Magazine .......................................(page 6)

THE CEO CORNER Ron Peltier, Chairman and CEO Home Services of America, Inc....................................................(page 10)

REAL ESTATE Real Estate Market Focus: Chicago............................................(page 14) Real Estate Market Focus: Ohio...................................................(page 18) Purchasing Real Estate for Investment.........................................(page 20) Selling Your House and the Seasons............................................(page 22) Real Estate Market Focus: Dallas.................................................(page 24)

OUR COVER Governor Edmund G. Brown, Jr. and the State of California............................................................(page 28)

POWER AGENT SPOTLIGHT Mickelin Burnes-Browne................................................................(page 32)

THE CEO CENTERFOLD Dale Stinton.....................................................................................(page 36)

POLITICS Antoine M. Thompson, New Executive Director of NAREB.........(page 42) Antoine M. Thompson....................................................................(page 44)

june / july 2015

The PIN MAGAZINE | 4

page 52

page 42

page 62

page 24

BUSINESS The Trending Popularity of House Flipping ..................................(page 48)

HOMEOWNERSHIP Fixer-Uppers: Good Idea or Waste of Resources? ....................(page 50) FSBO: Think You Can Do It? ..........................................................(page 52) Federal and State Assistance to Protect Homeownership in Baltimore ..........................................(page 54)

FEATURE President Barack Obama: Income, Taxes and Comparisons...(page 56)

FINANCE Protect Yourself from Deceiving 0% Credit Card Offers.............(page 58) Mortgage Servicing Rules According to the FDIC.....................(page 60 ) The Federal Reserve Rate Hike.....................................................(page 62)

LEGAL Why the Supreme Court is reviving Case against ING Group .(page 66)

COMMUNITY Disclosure: Access to Property and Insurance History..............(page 70)

TECHNOLOGY Drone Photography and its Probable Implications on Real Estate..........................................(page 72)

The PIN MAGAZINE | 5

www.thepowerisnow.com

Mission and Vision of the power is now MAGazine Mission

Vision

The Power Is Now e-magazine is a national real estate and lifestyle magazine that aims to bring together consumers and the real estate, banking, insurance and investment professionals who serve them. Through smart, fun, and timely editorial content, mixed with compelling photographs and quality advertising, TPIN e-Magazine is a surefire way to stay current on all things real estate.

The Power Is Now Online and e-magazine will be the premier real estate magazine serving consumers, real estate and business professionals nationwide, in all metropolitan markets. The Power Is Now online and e-magazine will be viewed as the most effective medium for real estate and business professionals to get exposure to consumers and to share their knowledge and information that will empower readers to take action.

Each issue will feature a blend of articles from business and industry professional leaders, on topics ranging from residential and commercial real estate to default services, REO and short sales, finance, banking, insurance, dining, fashion, home design, travel, health/fitness, book/movie reviews and more. The Power Is Now e-magazine is a free subscription magazine available at www.thepowerisnow.com. The online version will be a paid subscription with more content, video, radio interviews and commentary from newsmakers and writers.

Cover and Feature story profiles:

The cover of each issue will feature the CEO Centerfold. This individual will always be an extraordinary business professional who is an exceptional leader in real estate, banking, politics or another other related industries.

The online and e-magazine will have many sections under The Power Is Now theme: Real Estate Sales, Real Estate Resources, Real Estate Agent Spotlight, Real Estate Headline News, Technology in Real Estate, Real Estate Politics, Real Estate Social media, Real Estate Research & Reports, Business of Real Estate, Real Estate Green & Energy, Real Estate Economics, Real Estate Coaching and the Publisher’s Note.

The writers are industry professionals who are practitioners in their fields of expertise. We will bring experts in the industry to share their knowledge and experience. They will provide advice, and information that will enable consumers to navigate through the challenges and opportunities that exist in real estate, and opportunities in life.

june / july 2015

The PIN MAGAZINE | 6

CEO & Publisher Eric Lawrence Frazier, MBA 3739 6th Street, Riverside, CA 921506 Ph: (800) 401-8994 ext. 703 EDITORIAL Editor in Chief: Eric Lawrence Frazier MBA Managing Editor: Ross Dickens ONLINE Web Designer: Nicholas Clarkson DESIGN Art Director & Design Manager: Goldy Ponce ADMINISTRATIVE Administrative Assistant: Rachel Bacol

SALES National Sales Manager: Christina Kimble National Relationship Manager: Success Money HEADQUATERS The Power Is Now Inc. 3739 6th Street Riverside, CA 92506 Ph: (800) 401-8994 Fax: (800) 401-8994 Email: info@thepowerisnow.com www.thepowerisnow.com www.thepowerisnow.com/magazine PUBLICATION AND SERVICES The PIN Magazine The Power Is Now Radio The Power Is Now Publications The Power Is Now Radio Guide The Power Is Now VIP Agent Program The Power IS Now Power Consulting/Coaching The Power Is Now Association Management The Power Is Now Event Management

STATEMENT OF COPYRIGHT: The PIN Magazine™ is owned and published electronically by The Power Is Now, Inc. Copyright 2013-2015 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. “Thepowerisnow.com”, is a trademark of The Power Is Now, Inc. “The Power Is Now Event Management”, is a trademark of The Power Is Now, Inc. “The Power Is Now Radio”, is a trademark of The Power Is Now, Inc. “The Power Is Now Publications”, is a trademark of The Power Is Now, Inc. “The Power Is Now Radio Guide”, is a trademark of The Power Is Now, Inc. “The Power Is Now VIP Agent Program”, is a trademark of The Power Is Now, Inc. “The Power IS Now Power Consulting/Coaching”, is a trademark of The Power Is Now, Inc. “The Power Is Now Association Management”, is a trademark of The Power Is Now, Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now, Inc. Requests for permission should be directed to: info@thepowerisnow.com

The PIN MAGAZINE | 7

www.thepowerisnow.com

From the

Editor...

D

ear readers,

Welcome to our midyear issue for The Power Is Now Magazine. The Power Is Now is honored and considers it a privilege to serve you by providing quality issues of The Power Is Now Magazine.

Our goal is not just to provide you timely real estate news and developments, but to be your ally in the industry. The Power Is Now, Inc. stands for something. We uphold the value of the American Dream and believe that homeownership is available and possible for everyone who is ready to embrace responsibilities and

june / july 2015

do the work to establish a secure future for their families.

Our ideology goes beyond the business of publishing for profit but empowering people with information that can change their lives. We believe that we have a responsibility to educate real estate professionals and the American public in making informed choices in purchasing a home or real estate investment. The Power Is Now will continue to be a sustainable enterprise to endow people for success in real estate.

plan ahead. Looking back, Mother Nature’s presence was felt in Nepal, Texas, India and California. Our thoughts and prayers go out to the families afflicted by the earthquakes and floods, heat wave and drought.

In a report presented by our colleagues at the National Association of Realtors, there was notable home sales; Freddie Mac surveyed average fixed-rate mortgage rate was at 3.87 percent against 4.12 percent this time last year; and the Federal Housing Finance Agency has reported decreased mortgage interest rates in the As we reach the halfway point past month. Planning ahead, in 2015, let’s look back and there is the certainty that

The PIN MAGAZINE | 8

EDITORIAL

the Federal Reserve is extensively and thoroughly preparing to raise interest rates by September.

On a lighter note, mid-year brings about warmer trends in the industry. Summer selling season is upon us and since March, there has been substantial growth in home sales while interests have remained low. Our 2015 first quarter displayed a strong, solid start and halfway through the year, the industry has significantly showed signs of improvement.

I am pleased with our collaborative efforts here at The Power Is Now Magazine to document what is happening across the country. Our staff has creatively researched and crafted the articles presented in our current issue. In our June/July 2015 issue of The Power Is Now, we extend a sincere welcome to the newly-appointed Executive Director of NAREB, Antoine Thompson. We also aimed the Power Agent Spotlight to Mickelin Burnes-Browne of MBB Real Estate and Investment Service.

Please take a moment to read and share our current issue. Like on us on Facebook and Follow us on Twitter and let us continue to support each other in all our undertakings. Through all the challenges the real estate industry faces, we need to be flexible and adaptable in order to remain relevant and competitive.

If there anything we can do to help improve our service, please email your concerns to ross.dickens@ thepowerisnow.com.

It is with this note that 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!

Eric Lawrence Frazier M.B.A President & CEO The Power Is Now, Inc.

The PIN MAGAZINE | 9

www.thepowerisnow.com

THE CEO CORNER

Ron Peltier, Chairman and CEO Home Services of America, Inc. “Ron Peltier”

is one of the names written in the Johnson Senior High School’s Hall of Fame. It was 66 years ago, in 1949 that this Johnson High hockey star was born in St. Paul. After Johnson High, he then played for Golden Gophers hockey team where he met his coach, Herb Brooks, and Glen Sonmor. He had no idea about working in the real estate industry at the start of his career. He was pursuing a career in teaching and sports, as he had been successful in them since high school. He coached golf and hockey at Blaine High

june / july 2015

School. He took summer jobs as well, such as working in construction. Aside from these options, he also contemplated a career in law. However, it was Wendell Anderson who made him change his mind about his career focus.

Anderson counseled him to focus his career on business.

Therefore, in 1974, he received a master’s degree in business from the University of St. Thomas in Minneapolis, and continued his education after he graduated from University of Minnesota. He attended the university through NCAA

The PIN MAGAZINE | 10

hockey scholarship.

Being a hockey star was not his only achievement. He and his wife, Arlie, bought a duplex earlier in their marriage. With his renovation skill that he got from his construction job, he fixed the duplex up. A year later, he sold the duplex with 100% of gross profit (from $14,000 to $28,000). It was at this point when he realized how profitable the property business can be. Not one to let an opportunity pass, he bought more properties for both rentals and sales. Thus began

THE CEO CORNER

his real estate career in 1977. He obtained his realtor’s license and joined the Edina Realty.

Within less than two years of employment, he became General Manager. In 1992, he became the President and Chief Executive Officer for Edina Realty.

Edina Realty had its share of difficulties in the industry. In 1988, it was sold to Metropolitan Financial Corporation. Once again in 1994, it was sold to U.S Bank (formerly known as First Bank). Ron Peltier was able to buy it back a year later with investors. In the end, MidAmerican Energy Holdings Company, a Berkshire Hathaway Affiliate which is the parent company of Home Services of America, Inc. now, purchased the Edina Realty. The MidAmerican company itself has had its own journey of acquisitions. CalEnergy bought MidAmerican not long after it bought Edina Realty. In addition, less than one year after that, Warren Buffet bought everything. Ten years later in 2008, Ron Peltier was appointed the Chairman.

Ron Peltier is known as a promoter of goodwill and innovation in the real estate community.

He is honored with RISMedia’s first annual Homeownership Person of The Year award in 2004. He also placed first in Realtor Magazine’s in Top 25 Most Influential People in Real Estate Industry. Together with other people from the real estate community, he founded the Board of Directors for Realty Alliance.

The company itself has grown bigger and bigger with Ron Peltier at its helm. It is now well-known by in the country, not only within the real estate industry. Its revenue is sailing up towards the trend. Year after year, it went up 25%, up to $50 billion where it is at now.

Aside from the increased revenue, the number of brokerages increased significantly as well.

One of the brokerage companies that he successfully acquired was Prudential Rubloff Properties with a net worth of $2.2 billion. It now has over two dozen brokerages all over the United States.

An individual of advancement and altruism, Ron Peltier has shown great leadership with his hard work and tenacity. TPIN

REAL ESTATE

Real Estate Market Focus:

Chicago

T

he housing market in Chicago mostly aligns with the overall U.S. housing trends, but it’s still lagging behind the rest of the country’s post-recession recovery. In the widespread

june / july 2015

Chicago metro, inventory is high, creating a buyer’s market where sellers are not earning ideal returns on their properties. Conversely, in Chicago’s city limits, it’s a hot sellers’ market. Few homes

The PIN MAGAZINE | 14

are listed for sale causing home shoppers to compete with each other, driving up prices. Although the current states of these two markets are drastically different, home values are nearly equivalent in the metro ($187,100), city ($182,100) and even the across the country ($178,700).

Unlike the rest of nation, home values aren’t rising as quickly in Chicago. In the last year, national home values rose 4.9 percent, which is the slowest rate of growth in the past several months. Home values in the Chicago metro only increased by 2.6 percent annually, while city values actually decreased by 5 percent. A sustainable rate of annual appreciation is

REAL ESTATE

typically 3 to 5 percent. Therefore, the Chicago metro isn’t far from healthy, but home values in the city are struggling, which is leading to more homes with negative equity.

HOUSING CRISES EFFECT In 2007, at the height of the housing bubble, home values were at their peaks before plummeting steadily to their lowest values in 2012. Across the country, home values fell more than 20 percent but recovered in just three years to 9.3 percent below the pre-recession peak. Unfortunately, Chicago home values are still 23.1 percent below 2007 peaks, marking a far slower rebound.

When home values declined, many homeowners fell underwater on their mortgages, meaning they owed more on their mortgages than their properties were worth. Imagine buying a home

at the top of the market for $230,000, but now it’s only worth $187,000 and you’re still paying that full mortgage each month. The only options to escape that payment are letting the home go into foreclosure or short selling if your lender agrees, both deteriorating your credit, or selling the property at the current price and bringing the difference in cash to closing. None of these options are favorable for underwater homeowners, so many continue paying their mortgages in hopes that appreciation will bring them out of negative equity.

In the Chicago metro, a quarter of homeowners are underwater on their mortgages, 25.1 percent.

In just the city limits, even more homeowners are in negative equity, 31.5 percent. When compared to the national rate of 16.9 percent, it’s clear that Chicago is struggling to recoup.

What’s even more distressing is the percent by which these homeowners are underwater – 49 percent in Chicago versus 38 percent in the U.S.

The PIN MAGAZINE | 15

www.thepowerisnow.com

REAL ESTATE

These numbers suggest Chicago homeowners are deeply underwater, owing an average of $83,938 to escape negative equity.

DISTRESSED PROPERTIES IN CHICAGO Fortunately, negative equity does not mean homeowners will default on their loans.

Mortgage delinquency is the first step toward foreclosure and only a small percentage of owners are currently late on their payments in the greater Chicago metro (7.3 percent) and in the city (6.3 percent). For comparison, mortgage delinquency across the nation is at the same rate (6.3 percent), suggesting Chicago owners are committed to the eventual recovery of home values.

RENTS IN CHICAGO When homeowners foreclose or sell they transition into the rental market along with all the other new renters. As demand for rental units increases, supply shrinks, competition sets in and prices rise. Nationwide, wages are not rising while rents are skyrocketing, making rents more unaffordable than ever before. However, Chicago is keeping up with population growth and rental demand, effectively quashing the newest housing crises – rental unaffordability.

According to Zillow which tracked annual rental change throughout the past year for

june / july 2015

the top 35 major metros in the U.S., Chicago (-0.5 percent) and Minneapolis-St. Paul (-0.3 percent) were the only two metros that did not increase in rents. For comparison, rent in San Francisco rose a shocking 14.9 percent annually. In Chicago, renters pay an average of 31.1 percent of their monthly income on rent – right on par with the nationwide 30.1 percent.

HOUSING PREDICTIONS While Chicago’s rental market is performing better than most other U.S. metros, homeowners are trapped deeper underwater than in other metros. This predicament is not forecasted to improve within the next year. Owners in the city are expected to experience additional home value depreciation throughout 2015 – down another 0.7 percent. Values across the Chicago metro are only slightly better situated with anticipated 0.9 percent appreciation. National home values are also predicted to grow slowly at 2.6 percent, but it’s still stronger than values in Chicago.

Long-term owners still have time to wait out the slow recovery, while relocating owners may have to assume serious financial setbacks.

Finding a rental in Chicago should continue to be manageable as property prices are low enough for builders to raise more units for newcomers and make profits off reasonable rents. TPIN

The PIN MAGAZINE | 16

REAL ESTATE

Real Estate Market Focus:

T

he real estate market of Ohio reflects a richness in diversity that can be found in the lifestyle of its inhabitants. Ohio offers the best rural country estates or homes with top facilities, a jaw-dropping environment and significant respect for privacy. Beginning with starter residences and moving on to elite luxury homes, Ohio is ready to take your breath away with its rich pastures, wildlife and reasonable accommodations. Many of the metro areas provide ample investment and multi-family opportunities in a variety of styled properties, summing up your portfolio of real estate.

The highlight of Ohio’s real estate market vastly complements the region’s real estate trends, other sectors and various area submarkets. As the Republican National Convention of 2016 approaches, the realtors of northeast Ohio are busy preparing for it. Since downtown Ohio would be witnessing a number of politicians moving in for the convention, many of the inhabitants are expected to move out. The rental value at

june / july 2015

which those vacant homes would be given out has escalated to nearly ten times more than the original rent price.

According to Julie Marous, the City Realtor of Howard Hanna Cleveland, the preparation phase may be a little hectic, but the excitement is worth it. To be held in July 2016, the convention visitors would be given a three-bedroom, two-and-a-half bath on a week’s rent for anywhere between $5,500 to $10,000. Howard Hanna has been nominated as the official real estate organization responsible for the Republican National Convention, by the Republican Party of the Cuyahoga County.

For the RNC, the second largest city in Ohio would be witnessing traffic of more than 50,000 delegates along with media personnel and guests.

Though the event has been scheduled from July 18, 2016 to July 21, 2016, almost all the hotel rooms have been reserved in advanced, as stated

by David Gilbert, the Head of the Tourism Bureau in the city.

The PIN MAGAZINE | 18

REAL ESTATE

The Director of Property Management, Jared Zak of Howard Hanna was quoted as saying that although the normal pricing by homeowners is from $5,000 to $10,000, some have listed their rent values at even more escalated levels, for instance, an elite designer residence on the West Side of the city has been tagged at $40,000 for that week in summer. The landlords who usually earn anywhere from $2,000 to $3,000 on a monthly basis do not wish to let this lucrative golden opportunity pass. As it is, the downtown area in Cleveland is experiencing an inflated rating in housing occupancy. This would result in an even higher jump in residential prices. During these events, the housing costs

do rise, but Cleveland’s rate would be more significant in contrast to Democratic National Convention which is to be held in Philadelphia.

According to David Gilbert, the city would not have passed the nomination for the convention if it did not possess the infrastructure that was required.

Since Cleveland is experiencing a building phase, many of the total 16,000 hotel units that have been reserved for the convention guests are still being built. However, they would be successfully completed prior to the event. Though over the years, the Ohio hotel stock has expanded considerably, a few thousand of the guests would have to opt for private housing

The PIN MAGAZINE | 19

options online through websites of Craigslist and Airbnb or via a real estate agent. Rest assured, no one would be left out on the streets.

As stated by Jared Zak, since there are no fixed rates in the market yet, many of the residents wishing to put their houses on rent might be hesitant to be the first ones to start. However, the visitors would like to see the potential residences and complete the reservation process as soon as possible. Justin Exline, an inhabitant has placed his rent offer of $6,000 for the convention week on Craigslist.

His downtown Gateway District one-bedroom condo is only at a block’s distance from the location of the scheduled event.

TPIN

www.thepowerisnow.com

REAL ESTATE

Purchasing Real Estate for Investment

T

here is no better way to embrace diversification in your investment portfolio than through investing in real estate. Many real estate buyers and sellers have seen their fortunes turn around because making the right move in this competitive market is a guarantee for great returns. Patience is important when it comes to the real estate market. Unlike other businesses, one needs to buy time to get better returns, especially because the real estate market may take a while before picking up or slowing down.

If you are looking at buying properties as an investment, you need to be very keen. The U.S. real estate market demands one to be careful to avoid falling into loopholes that many inexperienced buyers experience. You also need to consider if you can source for the property on your own or you require a professional to assist you through the process.

Over the last fifty years, real estate investment has formed one of the important investment portfolios and many investors are willing to risk it. However, the property market is quite complex unlike the bonds or stocks market, regardless of the many opportunities and high returns usually associated with it.

Many potential investors have restrained from risking their money in the real estate market because they feel it is quite unstable due to recent slump. However, it is important to note that you can achieve success by purchasing real estate as an investment option regardless of the prevailing market conditions; one should not solely make investment decisions based on the state of the economy. It is true that change is june / july 2015

to be expected but the risk resulting from any market changes can be managed by abiding to certain principles that guide the property market.

Having an exit strategy is crucial while buying real estate for investment. Andy Heller, author of “Buy Low, Rent Smart, Sell High�, states that any real estate investor must come up with an exit strategy before trying out the real market.

Usually there are two options when coming with an exit plan, either buying and holding real estate properties and being a proprietor or simply focus on reselling your property and getting good returns on it. Before buying real estate as an investment option, you need to choose your exit plan.

The PIN MAGAZINE | 20

REAL ESTATE

Prior to buying real estate property as an investment option, you need to understand the features attributed to profitable properties. You need to do ample research before committing your finances to any property. For the first time investor who is looking at making quick returns on property, searching for relevant information regarding the property may come across as daunting and not worth a try. However, before purchasing property, one needs to understand the neighborhood they look to buy from and any related property taxes. Taking time to know the intricate details about the property you are looking to buy will give you an edge over others looking to buy similar property and you avoid any unforeseen risks.

Inexperienced real estate buyers are usually advised to join any existing local groups. These groups boast of a good number of local investors and it is a great opportunity to network and get appropriate advice. You need to approach real estate buying with maximum professionalism because it makes the difference between a failed venture and a successful investment.

Tony Alvarez, an experienced seller in the California real estate market, advises that new investors need to determine the type of property investment they would like to be involved in.

He advises that before settling on purchasing a certain property for investment, they should first have made the decision about the type of property to buy and why. A buyer needs to focus on a specific market niche and do ample research before setting a goal and establishing a plan to achieve the set goal. You can only get the best returns from your investment if you work daily towards achieving your goal by talking to prospective sellers and talking to other players in the real estate market.

Investing in real estate is a worthwhile venture that if done in the right way, the returns are immense. It is also a shrewd move to have a cash reserve, usually referred to as a buffer, which would help in covering any probable rehabilitation costs. TPIN

The PIN MAGAZINE | 21

www.thepowerisnow.com

REAL ESTATE

Selling Your House and the Seasons Selling a house requires dedication and patience in order to have better chances of getting a better offer. There is a set of factors to consider before selling your house. You need to understand the current market conditions, the overall real estate movement and the best time to push your sale. Timing may make the difference between a successful sale and a house sitting in the market for prolonged periods. There are certain times when buyers are more interested in fixer-uppers than new houses while other times, certain cities experience better sales than others. To sell your house successfully, you need to do ample research, have an eye for the right seasons to june / july 2015

sell, and always read the mood to have an edge over your competitors.

Experienced real estate experts know that the success of the property market depends on the season. As a seller in the real estate market, you need to know which season favors you. Single detached houses usually move faster during the spring followed by mid-fall. If you are trying to push a single detached house during the winter, you may face bigger challenges with reduced interest in this type of housing.

As a home seller, you need to understand that other families look at buying the next

The PIN MAGAZINE | 22

REAL ESTATE

home before summer comes. Many families prefer buying during this time because they are usually on vacation and children are not affected by such moves. Trying to push the house during the summer may work against you as the demand is quite low and the prices may be down.

When considering the best time to sell your house, you need to focus on showcasing it during the spring. People who have had to bear with the long winter are prompted to move by the easy season; the crocuses and blossoming cherries excite many people looking to move.

During the spring, the gardens look the best because the trees boast of leaves and the gardens are blooming. Buyers can see these beautiful features, boosted by the warm weather, and they will be willing to invest in homes to enjoy such beauty. Another reason why spring would be the ideal time to list your house is because you are in a better position to make it ready for repainting and any other maintenance works.

Many U.S. home sellers who have tried to sell during winter have had to bear with slower house movement. Many prospective buyers are usually caught up in social gatherings and the cold weather pushes many to remain indoors, therefore reducing any chances of making a sale. You will note that the winter limits the number of people who can see your listings and you may have to transact at a lower price. However, the winter also offers less competition in the housing market, which could mean you may still get an amazing opportunity to sell your house.

As much as the season is usually the major factor that determines how fast a home sells, the geography of the home area is a factor to consider, too. Before listing your home in the property market, you need to factor in the location and the season.

Different markets bear different characteristics and you need to understand the specific market your house sits. The real estate agents will advise you the best time to list your house and this may make the difference in the amount of time your house stays in the market unsold.

Home sellers usually grapple with choosing the best time to sell. The real estate market has higher risks compared to either bonds or stock market and timing makes all the difference.

With the ideas listed here, you will never have to struggle choosing the best time to sell your property regardless of your location. TPIN

The PIN MAGAZINE | 23

www.thepowerisnow.com

REAL ESTATE

Real Estate Market Focus:

DALLAS

Figure 1: Median Home Sale Prices of February 2015

T

he Dallas-Fort Worth metro area is a hot sellers’ market with low inventory and rapidly rising home values. According to Zillow, the median sale price of homes in the metro area is $190,789 while homes in the city of Dallas sell at a steeper price of $221,532.

These prices are right in line with the national median sale price of $203,678, indicating june / july 2015

the area is keeping up with Dallas considering selling housing trends. should yield significant returns. Fortunately, owners However, one of the most who to wait another year to notable aspects of the Dallas sell may even reap greater market that separates it resale values. from the country is its rapid appreciation rate.

From HOUSING CRISES EFFECT February 2014 to February 2015, home values increased The Great Recession led to by a dramatic 9.4 percent home values plummeting while the U.S. rose just 4.9 from their peak highs in 2007 percent. Homeowners in to deep lows in 2012. Across The PIN MAGAZINE | 24

REAL ESTATE

the U.S., home values fell by 20 percent during that time period. In the few years since, home values recovered quickly across most markets – faster than the sustainable rate of 3 to 5 percent. But the Dallas market has been rebounding at an even greater rate. In fact, while the country’s home values are still 9.3 percent below their 2007 peaks, Dallas home values surpassed their peaks in late 2014.

Essentially, Dallas home values escaped the effects of the Great Recession, but many homeowners have not.

When home values dropped sharply during the recession, many homeowners fell underwater on their mortgages – meaning they owed more on their homes then their properties were worth. Even though home values are rising, negative equity is also increasing, indicating home values are rising slower for underwater homes. Currently, 16.9 percent of U.S. homeowners are underwater on their mortgages. These homeowners are underwater

by 38 percent of their mortgages, owing and average of $67,797. In the city of Dallas, 12.7 percent of homeowners are underwater and even fewer (8.6 percent) on the metro level. Like the rest of the country, Dallas homeowners are in negative equity by 38%, owing $67,049 on average.

DISTRESSED PROPERTIES IN DALLAS

Many homeowners facing negative equity are stuck in their homes because they cannot afford to sell them. If they were to sell, they would need to bring cash to closing because the price the buyers would pay would not cover the amount they owe on the loan. Many homeowners stuck underwater opt to foreclose instead of continue paying money they won’t earn back at resale. In the city of Dallas, 4.5 homes are foreclosed (per 10,000 homes) while the metro’s rate is slightly lower at 4.3 homes.

Compared to the country’s foreclosure rate of 3.9 homes per 10,000 homes, Dallas

The PIN MAGAZINE | 25

locals are facing foreclosure more frequently.

The first stage of foreclosure is mortgage delinquency.

Across the Dallas metro, 5 percent of homeowners are late on their mortgage payments. In the city, the percentage jumps to 5.4 percent and the national rate is 6.3 percent. Therefore, homeowners in Dallas are faring better than the county’s average, but are still falling into foreclosure.

After foreclosure, residents are evicted with damages to their credit scores that prevent them from borrowing in the next several years.

These Dallasites often join the rental market.

RENTS IN DALLAS

Rents in the city ($1,299) are less expensive than in the metro area ($1,325). Rents in both areas are less than the national median of $1,499 per month. TPIN

www.thepowerisnow.com

REAL ESTATE

Figure 2: Median Rent Prices from February 2015

Rents cost Americans an average of 30.1 percent of their monthly income. In Dallas, renters pay 28.5 percent – not much better.

Unfortunately, rents increased in the last year by 4.9 percent in Dallas, and 3.3 percent across the country.

HOUSING PREDICTIONS

These rent prices are not expected to decrease soon because demand is so high. As population growth adds pressure to the rental market, new units are not built at the same rate. Between 2012 and 2013, Dallas only permitted 312 new units for every 1,000 new arrivals. Lack of availability leads to great competition and price hikes. Plus, as property values increase, builders who purchase land to build new units must charge higher rents to cover their costs.

Rising rents is the next housing crisis.

should settle to a healthier rate of 2.6 percent.

Dallas homeowners on the other hand, are in an ideal position with home values predicted to continue rising by 6 percent throughout the year. Owners considering selling are safe waiting another year for higher returns.

Buyers who purchase now while interest rates are still low are can expect appreciation on their investments within the year.

Due to the steep rents and fairly average home prices, Zillow calculates the Dallas breakeven horizon at 1.3 years. The breakeven horizon is the length of time it takes for the upfront costs of buying to even out with the costs of renting. Therefore, Dallas residents who plan to live in the same location for more than 1.3 years are financially better off buying than renting. TPIN

Across the country, home value appreciation june / july 2015

The PIN MAGAZINE | 26

Our Cover

OUR COVER

Governor

Edmund G. Brown, Jr.

and the State of California

E

dmund G. Brown, Jr. was born in San Francisco in April of the early 1930s. Throughout his childhood, he went to both public and private schools. In the mid-1950s, he managed to graduate from St. Ignatius, and he immediately went to the University of Santa Clara.

In 1956, Gov. Brown entered the Jesuit seminary, Sacred Heart Novitiate. He stayed with the Society of Jesus until 1960, after which, he went to the University of California at Berkley. He earned a Bachelor’s degree in Classics.

His educational journey was capped when he graduated from Yale in 1964.

After his time at law school, Gov. Brown had the privilege to serve as clerk for the California Supreme Court. He was able to conduct studies in Mexico, and then he finally moved to Los Angeles. Upon moving to Los Angeles, he landed a job with Tuttle & Taylor, which is one of the best law firms in Los Angeles. In the late 1960s, Gov. Brown was placed on the Board of Trustees by the Los

Angeles Community College. Attorney General. With this Soon after, he was elected job, he fought for the rights of California Secretary of State. those who were scammed by businesses, treated wrong at After just four years, he work, and all other people who put a campaign together for were victims of fraud. Brown governor. Much to his surprise, also worked every single day he won the election. He did alongside law enforcement to such a good job that he was re- stop crime in California. elected as governor in 1978.

He won both the elections by a Gov. Brown went on against large margin. the Supreme Court on the issue of same-sex marriage.

During his time as governor, However, the Supreme Court he created approximately two upheld the right for same-sex million jobs; this is almost partners to get married; this more jobs that are created was upheld despite the fact that within four years on a national Gov. Brown provided a lot of level. Most of these jobs were information on a federal level excellent government jobs. as to why same-sex marriage should be against the law at all Beyond jobs, Gov. Brown was times. able to devote an immense amount of money toward By 2010, Gov. Brown was education. He created a bill again elected as governor. wherein high school students He has cut deficits and made must be proficient before changes that would have graduation; Brown seen this as never found life without him a way for students to either go in office. He was able to give to a good college and/or get a a historic amount of money good job. to public transportation and government programs to help After practicing law in Los the poor.

Angeles and getting married, Brown was elected as

The PIN MAGAZINE | 29

www.thepowerisnow.com

OUR COVER

Recently, Gov. Brown was part of a historic agreement.

The agreement was for the riparian water right holders in the San Joaquin River Delta in Sacramento to cut back the use of water. In exchange for this, the water right holders will have no restrictions on their growing season from June to September.

Gov. Brown and those involved in this agreement are very happy it has come to pass. They believe this agreement helps people all over the state. It helps those in Sacramento by giving them assurance that their crops will grow abundantly from June through September. It also gives assurance that people in the state will be receiving clean water.

No matter what, the risk of not having healthy crops is evident.

However, if this agreement is not upheld, not having healthy crops will be in

june / july 2015

clear view and will no longer minds and ideas going in this be just a risk. agreement. Brown is also open to ideas of other agencies that Gov. Brown and others deal with water situations like involved in this agreement the one represented here. He are sure that all parties will is willing to hear what other participate, as this is voluntary. people have to say, as long as The main reason being that their ideas promote the welfare crops have not been good for of people and the welfare of the last two years. The people fish and the like. of California, particularly in Sacramento, have no other If this agreement is successful, choice. There was so much Edmund Brown will do money lost in the last two his best to get this type years. Farmers spent money on of agreement effective all preparing the land for sowing, over the state of California. and there was not much of a Brown is commissioning all harvest at all. people within California to do whatever they can to preserve Staring in the first week of June, water. He knows that many inspectors will be checking the people take water for granted land of those parties involved in because it freely flows out of this agreement. It is important the homes of people in the that all of the requirements state. However, it is important within the agreement are met, to treat water as something or there will be a penalty for that can be reduced greatly if agreeing to the contract and not conserved the properly. not following through with it. People all over the state are Edmund Brown is very paying great attention to this happy to make this a group situation. TPIN effort. There are many great

The PIN MAGAZINE | 30

Power Agent Spotlight

n

POWER AGENT SPOTLIGHT

Mickelin Burnes-Browne L

ooking for some trusted names in real estate? Mickelin Burnes-Browne is one of the few names you must know.

Currently working with the Veterans community as a Senior Real Estate Specialist (SRES), she already has quite a lot of feathers to her cap and has almost 23 years of experience in the real estate business. Mickelin believes that the commission she earns as a certified real estate broker comes second to the requirements of her clients. What a noble attitude in the highly competitive world of realtors!

Science degree in Home Economics, emphasis in Housing & Community Services from San Francisco State University. Before working full time in real estate, she used to work as a customer service representative with a subsidiary of Johnson and Johnson. As she was looking for a something that could offer her the joy of relating to people while spending time with her loving family and children, she found a part-time job in a real estate mortgage company. It is where the journey began in the year 1991. It was not long before she exceeded the expectations, not just of the company, but Mickelin Burnes-Browne is the founder of the also of her customers. She worked full time in real estate brokerage and investment firm MBB sales with Century 21 in the spring of 1998.

Real Estate and Investment Services, Inc. located in the Berryessa area of San Jose, California. In an exclusive interview for The Power Is Now Her firm serves the greater metropolitan area of Radio, she puts it, San Jose. MBB is a specialist firm representing real estate sellers and buyers in such areas like I progressed to the sales side after talking to Silicon Valley and major hub communities in my broker who owned a Century 21 franchise and around Santa Clara. Besides that, the firm and a loan company. I wanted to continue also services the senior market and honorably working in the mortgage side of the business, discharged veterans.

Mickelin always had the ability to connect well with people. She holds a Master of

but he encouraged me to do sales because of my personality, he thought it was a good fit.

The PIN MAGAZINE | 33

www.thepowerisnow.com

POWER AGENT SPOTLIGHT

Isn’t that impressive?

n

Mickelin has come a long way since then. She has specialized in several areas of real estate sales. She had a successful tenure as a listing agent dealing with first-time buyers to stepup buyers. She worked for Premiere Asset Management for seven years as an REO broker.

A part of Mickelin’s marketing activities involves doing marketing in her church. She conducts citizen outreach programs into the community surrounding her church as well.

In her church, she serves and volunteers doing classes in Home Preservation and Financial Literacy and Education. In this context she has been quoted as saying,

Mickelin Burnes-Brown is a licensed agent with the Santa Clara County Association of Realtors, I think the tech tools that our industry the California Association of Realtors and the provides to make us more efficient are great, but National Association of Realtors. As a Realtist there is nothing like one-on-one communication member she is a charter member, founder and to demonstrate love for others and receiving it past President of the San Jose Association of Realtist, famously called SJAOR. SJAOR is back. I have found that the more you give, the a local chapter of NAREB. She is currently a more you get in return. My church members are member of the core committee of NAREB. She like family members and they carry my flag. So is also serving as the Regional Vice President I have a wonderful referral network within my for the Northern California division of the church community.

California Association of Real Estate Brokers (CAREB).

One of her most recent initiative is Probate sales. This latest market niche of hers allows Mickelin is a certified professional to work her to work all over the state of California where in senior housing scenarios, where she holds she assists with the disposition of real estate to a designation of SRES (Senior Real Estate qualified buyers, sellers and investors. Mickelin Housing Specialist). She also has the Housing is certified with the designation of CPRES Counselling certification from USA Cares to (Certified Probate Real Estate Specialist) and work with the veteran community and she is is listed nationally with USProbateServices. proud of the job she is doing. She not only helps org. She was nominated and selected by her veterans in getting loans for housing but also peers to be the broker of the month for The provides after-sales service. She claims to have Broker magazine, a professional industry trade the most rewarding and personally fulfilling magazine. experience working with the veterans. She considers herself to have been honored to serve those who have served this country so well and brought the freedom to do what we do.

june / july 2015

The PIN MAGAZINE | 34

POWER AGENT SPOTLIGHT

nn To have a family-owned and operated business is one of Mickelin’s goals. Her daughter not only helps her design the graphics for the business but also virtually shadows her in some of the daily business activities. While she considers herself an independent broker, she welcomes service-oriented agents to help her in the business.

Her business philosophy, as she claims, is to stand up to the needs and expectations of her clients with professionalism and integrity as they deserve nothing less. It is the benchmark of her business as reflected completely on her website and all promotional activities. When it comes to the peer competition, she clearly stands out because of her vision. Instead of the usual commercial self-proclamations of being the top agent, she expects to earn that title from her clients through dedication, love and hard work. Despite being a busy person, she adheres to high ethical standards.

negative press for unethical conduct and I challenge myself always to raise the bar for myself and the industry as a whole. I pride myself in working longer and harder than anyone out there to earn your trust and confidence, and your business, not just one time but each time you call on me. I love referrals, therefore, my good name is my business card.

The clarity, honesty and customer obsession that Mickelin Burnes-Browne puts into her business can be witnessed through the mission statement on her website,

“Professionalism, Integrity and Seamless Transactions, You deserve Nothing Less.”

While answering a question about what reason would she give someone who may be looking to buy or sell real estate in her area to call her, her reply was earnest and direct,

My goal is not to be the #1 agent as you see in many of my peers’ advertisements, but rather I want your view of me as YOUR no. 1 real estate professional for buying or selling real estate. I listen to your needs, treating you as though you are my only client - delivering then exceeding your expectations. Recently, in my opinion our industry has received a lot of

The PIN MAGAZINE | 35

This article also appears on our sister magazine, Orange County Realtist, at www.ocrealtist.org

www.thepowerisnow.com

CEO Centerfold

CEO CENTERFOLD

Dale Stinton There was a time when the real estate market was diving nose down.

Had it not been for the minds like Dale Stinton, the downturn would have continued until today. Mr. Dale Stinton is a 31-year veteran in the real estate industry and is the Chief Executive Officer of National Association of Realtors (NAR), America’s largest trade association that represents more than a million commercial and residential members.

M

r. Stinton has been getting his name mentioned among the top most influential leaders of real estate business with impressive consistency. Inman’s 100 most influential Real Estate Leaders and Smart Money’s Power 30 most powerful and influential players have included his name quite often. He has also been awarded the Best in Biz Executive of the Year in large organizations category by the American Business Awards. His most recent achievement includes Swanepoel’s 2015 Trends Report ranking that listed Stinton as the sixth most influential player in real estate. He is a Certified Association Executive (CAE), a Certified Management Accountant (CMA), and holds the Realtor Association Certified Executive (RCE) designation.

Mr. Dale Stinton is a Certified Public Accountant (CPA), who has an MBA degree from DePaul University and a BS degree from Western Illinois University. He became the Chief Financial Officer at National Association of Realtors 1991 and was in charge of crucial investments for the firm in other firms like Move, SentriLock, RE FormsNet,

and eProperty Data. He assumed the position of the acting Chief Executive Officer and Executive Vice President of NAR in 1996. In that role, Mr. Stinton’s responsibilities were, but not limited to, overall management of the association’s finance, directing its political action committee, RPAC, and its web site.

He has directed the association’s long-term strategic information and technology agenda successfully. Mr. Stinton worked at National Association of Realtors leadership to set up the Realtors Housing Relief Fund in 2001 and had managed the Realtors Relief Foundation.

After assuming the position of the Chief Executive Officer in 2005, he brought about some changes into the industry which proved to be turning points in the real estate business of America. Under his leadership, he made NAR strive to stay updated with real-time technological changes, formed a subsidiary, Realtors Property Resource LLC (RPR), and built a national parcel-based database which subsequently created a game changer program that provides grant funding to innovative realtor association initiatives.

The PIN MAGAZINE | 37

www.thepowerisnow.com

CEO CENTERFOLD

He also formed a venture capital fund, Second Century Ventures LLC (SCV), and a technology incubator, REach. Stinton serves as president of Second Century Ventures, an investor in REach, ifbyphone, DocuSign Inc., Move Inc., SentriLock, Xceligent, and ZipLogix, and Symform. In July 2013, under his guidance, NAR approved the much-needed changes to the operating agreement with realtor.com, giving its operator, Move, Inc., more flexibility to publish listings from sources beyond those provided by realtors, including additional new homes and rental properties, resulting in a boost in the market share of the site among the consumers. Stinton joined DocuSign’s board of directors in November 2013. He is also a board member of the Center for Specialized Realtor Education (CSRE), Realtors Information Network (RIN), and Realtor Canada, Inc. Dale supervises every investment made from the Second Century Ventures fund with the assurance that each portfolio entity will also be eligible for NAR support. His ability to oversee the financing, development and construction of NAR’s $47 million awardwinning office building at Washington, D.C. and the establishment of the $52 million Strategic Investment Reserve reflects not just his thorough experience but also the keen sense of the entire industry trend and technical knowledge. Apart from his strategic insight, Dale has brought impeccable industry expertise,

june / july 2015

solid experience and trusted relationships in venture investing to Second Century Ventures.

Stinton led a successful campaign banning banks from entering the real estate industry permanently and achieved a homebuyer tax credit which, as per the national economists, was a key step for the housing market to sustain itself. His plans to encourage and energize the local and state realtor associations were proven highly successful in bringing progress from the root level. One of Stinton’s vision was the creation and development of Realtor University, an innovative educational initiative.

The institution which recently received the authority to grant a Master’s Degree in Real Estate also offers professional development and distance education in real estate.

Mr. Dale Stinton has a remarkable authoritative enigma which makes everyone in his industry learn from him. Armed with a plethora of industry experience, a mind as fast as a machine, an impressive persona, as well as the vision for a long and sustained future for the real estate industry, he has a led a war against slow down successfully. With his expertise he has saved almost every aspect of the business and not just large corporations, but also small entities down to the level of individual buyers and sellers from a fatal market crash. By many industry experts, he is considered as the leader who leads by example. TPIN

The PIN MAGAZINE | 38

POLITICS

THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS WELCOMES THE NEWLY APPOINTED EXECUTIVE DIRECTOR, ANTOINE M. THOMPSON:

“ASSOCIATION STRENGTHENS ADVOCACY” “Antoine M. Thompson brings enthusiasm, professionalism and leadership experience to this position,” states Donnell Spivey, President of the National Association of Real Estate Brokers.”

PRESS RELEASE April 17, 2015 For Immediate Release Contact: Michelle Savoy (301) 552-9340 National Association of Real Estate Brokers, Inc. Lanham, MD - April 17, The National Association of Real Estate Brokers (NAREB) proudly announced the recent appointment of Antoine M. Thompson as the Executive Director of the highly regarded trade and professional entity of black real estate professionals. His leadership will bring an innovative approach to working with the increasing demands for support throughout the community. Thompson is the right person to take on this exciting new role as Executive Director. Mr. Thompson will bring his extensive real estate expertise and community leadership background to help further the interests of the NAREB and its responsibility to the African American community.

june / july 2015

“I welcome Antoine M. Thompson to the NAREB team. His professional skills align with NAREB’s vision and needs. I see this as a tremendous addition to NAREB’s advocacy, vision, and the organization’s connection with its members and the community we serve,”

remarked Donnell Spivey, President of NAREB.

“I am proud that we are adding Mr. Antoine Thompson to the NAREB family. I believe that Mr. Thompson will help us to stay the course set out in our Strategic Plan in ensuring the organization sustainability for the future as well as helping us to continue to build on our legacy of being the voice of housing in the African American community. It is my hope that with Mr. Thompson’s leadership we will see more everyday Americans with greater access to homeownership,” stated Andrea Cooksey, Chair of NAREB.

The PIN MAGAZINE | 42

POLITICS

“I am ready to advocate for fair housing opportunities for African-Americans, diversity in development opportunities in our cities and better mortgage and bank lending practices throughout the United States,” stated Antoine M. Thompson.

Antoine M. Thompson comes with a wealth of leadership experience in the industry having spent his career as a Licensed Real Estate Agent in New York State. He is the former Executive Director of the Office of Urban Initiatives, a community development corporation and he authored the City of Buffalo’s Fair Housing Law. He was also a New York State Senator, city of Buffalo Councilmember and most recent, Executive Director of the Buffalo Employment and Training Center, a workforce development program.

Antoine includes the following: Former Chair of the Community Development Committee of for the Buffalo Common Council; the Former Chair of the Minority/Women Business Enterprise

Committee for the Buffalo Common Council; the Former Co-Chair of the NYS Senate MWBE Taskforce; a Former Board Member, Buffalo Empire/Economic Zone Board; a Former Board Member, Buffalo Economic Renaissance Corporation; Former Board Member, Buffalo and Erie County Workforce Investment Board.

Thompson is a graduate of SUNY Brockport with a dual degree in History and African and Afro-American Studies. He is a recipient of an Honorary Doctor of Laws Degree from Medaille College. TPIN

NAREB, was founded in 1947, and has over 90 chapters in more than 34 states. The organization is committed to ensuring sustainable homeownership and “Democracy in Housing.”

The PIN MAGAZINE | 43

www.thepowerisnow.com

POLITICS

AntoineThompson T

he real estate industry is on its way back to a speedy recovery.

However, the aftershocks are still rippling through the hearts and minds of the people of America. No matter what their concerns are regarding a future upsurge of the market, the fact remains loud and clear. It is time we left no stone unturned to ensure all safety mechanisms are in place and adequate policies are made. No one wants to see the downfall again. This means all the drivers of the industry as well as political forces are to think and work on the grassroots, and reinforce the foundation of the real estate business across the entire U.S. which involves the interests of all regions, classes and communities. It looks like the National Association of Real Estate (NAREB) has already started working on it.

Many see this as a key step to unite political power with the efforts from the industry towards a great projection towards the future. Mr. Thompson has remained highly active in his support for progressive policymaking to uplift the interests of the African American community throughout his political career. NAREB has been taking its responsibility as one of the most important industry entity for the black real estate professionals very seriously. As an Executive Director, Mr. Thompson will use his expertise in real estate and successful community leadership background to open new horizons of scope for the African-American community.

Donnell Spivey, President of the National Association of Real Estate Brokers, while welcoming Mr. Thompson to his new role, has been quoted NAREB recently appointed as saying, Antoine Maurice Thompson, former New York State “Antoine M. Thompson brings Senator and seasoned real enthusiasm, professionalism, estate professional, as the and leadership experience to its new Executive Director. this position,�

The PIN MAGAZINE | 45

Born and raised, in Buffalo, New York, Mr. Thompson is a graduate of a dual degree in History and Afro-American Studies from State University of New York. He also holds an Honorary Doctor of Laws from Medaille College. He is a member of the Alpha Phi Alpha fraternity. Mr. Thompson has a wealth of experience in leadership as he has spent his successful career as a licensed real estate agent in the state of New York.

He has served the position of Executive Director at the Office of Urban Initiatives, a corporation dedicated towards community development.

Notably, he has authored the fair housing law for the city of Buffalo. His political career includes influential roles in the past such as, a New York State Senator and a Councilmember of the city of Buffalo, Chairperson of the Community Development Committee of the Buffalo Common Council, Co-Chairperson of the New York State Senate Minority and Women Business Enterprise Taskforce, Chairperson of

www.thepowerisnow.com

POLITICS

the Minority and Women Business Enterprise Committee of the Buffalo Common Council, member of Buffalo Economic Renaissance Corporation, a member of the Buffalo Empire and Economic Zone Board, member of Buffalo and Erie County Workforce Investment Board, to name just a few. He is also leading a workforce development program, the Buffalo Employment and Training Center, as its Executive Director.

Through his well-established political career Mr. “I am proud that we are adding Mr. Antoine Thompson has certainly proved his mettle as a Thompson to the NAREB family. I believe that worthy leader, of not just the African-American Mr. Thompson will help us to stay the course community, but also for the women, youth and set out in our Strategic Plan in ensuring the other minorities. He has been a strong voice in organization sustainability for the future as support of environmental conservation. Having well as helping us to continue to build on our worked as a Former Chairman of the Senate legacy of being the voice of housing in the Environmental Conservation Committee, Mr. African American community. It is my hope Thompson’s insights for an environmentthat with Mr. Thompson’s leadership we will friendly real estate market is highly called see more everyday Americans with greater for. He has served in various sectors of access to homeownership.” finance, commerce, economic development, small businesses, tourism, recreation, sports And Mr. Thompson acknowledges it with his development, veterans, homeland security and earnest words: military affairs.

With the addition of a leader like Antoine Thompson, the industry experts are thinking of taking a moment of relief. It is clear that expectations are huge but so is his promise.

Real estate is one of those sectors that touches the lives all the citizens of the state. It also has the power to affect, directly or indirectly, the complete economy of the country. Hence, it goes without saying that, the commands of this high priority industry should go to the safe, experienced, and capable hands of the strategists and leaders like Mr. Antoine Maurice Thompson.

“I

am ready to advocate for fair housing opportunities for African Americans, diversity in development opportunities in our cities and better mortgage and bank lending practices throughout the United States.” OC

Andrea Cooksey, NAREB Chairperson, echoes this sentiment:

june / july 2015

The PIN MAGAZINE | 46

This article also appears on our sister magazine, Orange County Realtist, at www.ocrealtist.org

BUSINESS

The Trending Popularity

of House Flipping House flipping is the purchase of a house and quickly reselling it for a profit. In the real estate industry, flipping involves redeveloping a house before it is resold. Over the recent years, house flipping has become very popular among people in the real estate industry looking to make quick profit; other than building a house from scratch, you can buy one that has not been in use for some time, renovate it to modern standards then sell it to a third party at some profit.

When you buy a house, the purchase price is, in most cases, deeply discounted from june / july 2015

what it would normally sell in the market.

The discount in price is always caused by the conditions of the house or the owner may not be able to undertake repairs therefore making him quickly sell the house or they may be relocating to another state. Flipping is highly profitable to an average home buyer as most of them do not have the funds and time to renovate and repair a home. In some cases, they would want to buy a home they could easily move into even if it is priced higher than its market value.

The PIN MAGAZINE | 48

BUSINESS

MISTAKES YOU SHOULD NOT MAKE WHEN FLIPPING While properly planned flipping can make you lots of profits, many people tend to overlook certain basics.

Below are some mistakes that most people make when flipping and how they can be avoided.

1. Not enough money Getting into the real estate industry is quite an expensive venture. The first expense you will have to experience is that of acquiring the house; with no money, buying the house is not as easy as it sounds.

You can, however, borrow the money but you also need to consider the interest to be paid on the borrowed money against what you will be earning as profit after reselling the house.

By buying the house in cash you will be able to get rid of the loan interest, but you also need to remember that even then you will have to pay for the property holding costs, such as utilities and taxes.

You also have to factor in the costs of renovation as well.

Once you are done with the renovations and want to sell the house, you need to bear in mind all these costs including

the capital gains taxes when setting your selling price.

2. Not enough time House flipping is quite time consuming and it takes time to buy a house and renovate it before you can sell it.

You also need to factor in the time between when you put the house on the market and when it is sold; if you will be showing the house to prospective buyers by yourself, also consider the trips you will be making to and from the house.

3. Not enough skills Skilled interior design professionals and professional builders take on house flipping as a part time job. These groups of people have the experience and skill to find and fix a house. If you have the skills to fit in a sink, lay a carpet, hang a drywall and if you are handy with a hammer, then you can do this during the renovation process and minimize costs you would have otherwise paid someone else to do.

4. Not enough knowledge For your house flipping endeavor to be successful, you need the knowledge to identify the right house in a

The PIN MAGAZINE | 49

prime location at a favorable price. Whatever deal you get when buying house, you have to make decisions on what to renovate and what to skip.

You have to take measures that will ensure you make cuts on losses as well as be aware of the necessary taxes that apply to you.

5. Not enough patience A professional will take their time in picking the right property. A novice will make rush decisions in hiring the first contractors to place bids to take on work they cannot do themselves. A professional would rather take to selling the house themselves as compared to a novice who will use a realtor. If you are a novice in house flipping, you need a professional to work for you in order to realize maximum profits.

House flipping is similar to any business venture and before you get involved it is advisable that you carryout enough research.

House flipping is not easy and you will realize that as much as you know about the venture, it requires skill, time, money and lots of patience.

To achieve the great rewards that come after selling the house you should be able to face the risks that come with it. TPIN

www.thepowerisnow.com

HOMEOWNERSHIP

Fixer-Uppers: GOOD IDEA OR WASTE OF RESOURCES?

W

hile looking to buy a house, a buyer has to choose between buying an old house or from the selection of newer homes. Buyer choices may contrast and many feel like buying an old home is more of creating a connection. Fixer-upper is a term used to refer to properties that will usually require maintenance works (often referred to as houses that need TLC), to be performed. These maintenance works can range from redesigning, redecoration and reconstruction; however, these properties are still habitable, even without the aforementioned maintenance. Buyers aim at getting a good return on investment by improving the value of such homes through undertaking several maintenance procedures. Buyers who look at getting homes at a budget also prefer going for fixer-uppers

june / july 2015

simply because they are cheaper to acquire and maintenance can be undertaken later.

Many people wonder whether acquiring a fixer-upper is a good idea or simply waste of resources. To the young and uninformed buyer, getting a fixer-upper may lead to disappointments especially where they may underestimate the number of repairs required and the overall cost of repairs. If a buyer is looking to buy a fixerupper and renovate it to make it marketable, wrong estimates can eat into any returns. Before buying a fixer-upper, you need a professional to ascertain proper cost and repair estimations to avoid unpleasant surprises later. Some issues, such as plumbing and foundation repair may need attention, but may not be visible at first, costing much more to accomplish.

The PIN MAGAZINE | 50

HOMEOWNERSHIP

The U.S. real estate market has experienced an increased interest in fixer-uppers. The rise in sustained TV programs that air DIY tips on home maintenance has led to an increase in the demand for fixer-uppers. However, the slump experienced in the real estate market in recent years has caused a slight reduction of interest in fixer-uppers.

For lovers of old houses and those who love maintaining old houses, acquiring a fixer-upper would be a great idea. With strategic moves, you can get a nice house way below what comparable houses are priced at, renovate it to better conditions and get a good return on your investment. After undertaking the necessary maintenance, you may end up with a house twice the value of its original purchase price. Many real estate professionals advise against buying fixeruppers that may require major structural changes.

There are a various regulations that apply to the U.S. real estate market as it pertains to fixeruppers. You need to consider the cost of permits.

The time and effort it takes to talk to local officials

and get to know if any maintenance works you plan on doing require a permit.

Many buyers who avoid fixer-uppers think of them as a waste of time and resources. This is probably due to prior experiences, especially where proper precaution was not exercised. The only factor that makes the difference between seeing it as a good investment idea and a waste of resources is the assessment you perform before buying the property. Do the math to decide whether you should pay for a fixer-upper. You need to do a thorough evaluation of the condition of the house, which will determine the total cost of further maintaining the house. You need to be honest with yourself to avoid disappointments including both labor and cost of materials. You also need to include an extra amount, about five percent of total costs, to account for any extra expenses that may creep up. When valuing your home to determine the return on your investment, you need to do accurate research on the comparable properties in the neighborhood.

TPIN

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

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

HOMEOWNERSHIP

For Sale By owner

FSBO: Think You Can Do It?

H

ome selling is a demanding process that requires expertise and resilience to achieve the best results. Many property owners are usually caught in between selling the house on their own or selling through an agent.

Some owners feel that they have the capacity to push their houses in a competitive market and achieve expected results. The process wherein homeowners prefer to sell their houses without hiring an agent to do so on their behalf is referred to as For Sale By Owner, commonly known as FSBO. Many property owners in the U.S. are choosing this path due to availability of free information on the internet regarding house selling and they believe that the role of agents in house selling has been weakened through the years.

Many people wonder if they can sell a home on their own. Whether you think you can do it or not, you can save up to six percent commission by doing it personally. With a simple research

june / july 2015

on the internet, you can learn about your local real estate market in details, compare different sales posted for your local market and set an appropriate price for your home. By listing your house online, you give a chance to potential buyers to find it after exploring for properties they may be interested on the web. This may seem quite easy to some homeowners but some feel it is quite complicated. Inexperience is often cited as a reason why many homeowners who choose the FSBO process fail.

Statistics indicate that 43% of people who buy homes find the information on the internet while about nine percent find their homes through sales. The newspapers account for around one percent of where homebuyers find their homes. This means that any home seller looking to go the FSBO way requires having a strong internet plan. If you are planning to sell your house on your own, you need to be familiar with the internet and know how to

The PIN MAGAZINE | 52

HOMEOWNERSHIP

make the best out of it. If you are looking at having many prospective buyers interested in your property, getting maximum exposure through the internet will be beneficial. You can get maximum exposure by preparing adequate marketing materials, opening up your house to prospective buyers and joining local real estate market forums for networking purposes.

Having the right exposure will boost your FSBO process.

If you think you can do FSBO while promoting your property, you must be prepared for the emotional demand that it requires. Apart from buying a house, selling a house is one of the most emotionally demanding transactions you can ever encounter. Emotional involvement does not sit well with large transactions especially where large sums of money is involved. If you are selling your house on your own, a buyer comes to see the house, and only focuses on the flaws present in your house, you will end up getting hurt emotionally. You are likely to refuse any offer they make even if it is a good offer simply because they only focused on the flaws. This is where many people prefer to use the services of a realtor to avoid such moments, which may derail the house selling process.

Agents usually give only positive feedback to the house owner; you need to make a decision whether you can handle the emotional aspect before opting for FSBO.

You need to understand that selling a home on your own is like a part-time job. It requires a great deal of time to prepare and energy to keep showing your house once it is listed for sale. You will find yourself fielding emails, questions and calls from both agents and buyers. You need to always be on your toes and be available to show your house whenever a prospective buyer wants to see it. You will have a bigger workload and pressure. A lot of times you will find that you are handling both selling your house and where you plan to move.

Before thinking if you can do FSBO, you need to think if you can handle the additional stress that you may experience through the process.

There are people who have managed to handle FSBO successfully through the years and if you can get over any doubts of going alone, you can go ahead and try it.

Regardless of any challenges that have been experienced through the years in the FSBO process, there remains many success stories.

You need to identify any loopholes in this approach and if you feel you can manage them, then give it a shot. You can also try the FSBO process for a limited amount of time and if unsuccessful, you can source the services of an agent. If you feel you can do it, try it but be ready to handle any challenges you encounter along the way. TPIN

The PIN MAGAZINE | 53

www.thepowerisnow.com

HOMEOWNERSHIP

Federal & State Assistance to Protect Homeowners in Baltimore PRESS RELEASE May 1, 2015

For Immediate Release Contact: Donnell Spivey (301) 552-9340 National Association of Real Estate Brokers, Inc.

Baltimore, Maryland - Today, May 1, 2015 - Donnell Spivey, a native of Baltimore, Maryland and the National President of the National Association of Real Estate Brokers (NAREB), the oldest association of black real estate professionals with over 90 chapters in 34 States is calling on the federal government to assist property owners in the city. As an owner of Exit Spivey Professional Realty in the Baltimore area, President Spivey has his hands on the pulse of the local real estate market.

Additionally, prospective buyers have refused to purchase property in some neighborhoods.

Therefore, NAREB is requesting that U.S. Attorney Loretta Lynch and Maryland State Attorney General Brian Frosh ensure that price gouging and discriminatory business practices are not taking place amongst contractors, banks and insurance companies servicing the people and communities of Baltimore”.

On Thursday, May 7th, at 11am First Shiloh Baptist Church located at 2100 N. Monroe Street, Baltimore, Maryland, Spivey will join with local and national leaders to recommend changes on how to improve homeownership, employment and community development opportunities in President Spivey, stated “I am calling on the Baltimore neighborhoods.

Maryland State Attorney General, the United States Attorney General, the United State “The negative economic impact of the Freddie Consumer Protection Bureau, and the U.S. Gray incident has taken a toll on the families, Department for Housing and Urban Development businesses, faith-based and community to develop a taskforce to assist new and existing institutions in the city which requires immediate property owners in the City of Baltimore. Since assistance from the local, state, and national the protests and civic unrest surrounding the governments,” stated NAREB President Spivey. death of Freddie Gray there have been rumors If you have a question, please feel free to call me of insurance companies cancelling property at (301) 552-9340. TPIN insurance policies in the Baltimore area.

NAREB, was founded in 1947, and has over 90 chapters in more than 34 states. The organization is committed to ensuring sustainable homeownership and “Democracy in Housing.”

june / july 2015

The PIN MAGAZINE | 54

FEATURE

President

Barack Obama: Income, Taxes and Comparisons

O

ver the years, the United States has witnessed forty-four successfully voted individuals take on the role as the nation’s President, pledging to direct the daunting and complex tasks of the Executive Board to the best of their abilities. A big claim indeed and each president has managed to fulfill the pledge in their own style.

However, presidents like Barack Obama, who belong to the twenty-first century face an especially challenging and complicated duty.

This entails getting jobs done at the right time and in the right place along with handling more than 300 million bosses, a horde of critics who are active twenty-four hours a day and numerous compulsory task lists that often mean life or death and that too in a city that goes hand-in-

june / july 2015

hand with bureaucracy. First elected in January 2009 defeating John McCain, Republican nominee and then re-elected in November 2012, defeating Republican nominee Mitt Romney, Barack Hussein Obama II holds office as the current President of the United States of America. He is the 44th individual and the first African American to take the prestigious pledge as the nation’s president.

From day one in his office, the commander-inchief has worked towards bringing a new outlook to the business proceedings and layouts. Instead of just walking along with the status quo, Obama and his administration have functioned as one unit to eradicate unnecessary costs by creating an active streamline of tasks and modernizing the government’s methods of carrying out

The PIN MAGAZINE | 56

FEATURE

various functions for better overall results and to lay the foundation of stable and strong opportunities for future growth.

of the entire nation rests on his shoulders and the future of the citizens is in his hands.

On April 10, 2015, Obama paid his federal income tax returns for the year 2014. Along with First Lady, Michelle Obama, the President listed the total income after-adjustment as $477,383. They released their total tax returns on a joint basis, which summed up to $93,362. The Obamas listed approximately 14.8 percent that is, $70,712 of the total income as donations made to more than 30 varying charities. Among these, the Fisher House Foundation, an organization dedicated to human services received the largest sum of charity as a gift which was reportedly $22,012.

Income taxes of $22,640 were paid to Illinois, their home state. With a $93,362 federal income tax bite which totaled up to be 19.6 percent of the Obamas’ average gross income, their salary of $88,181 was earned from the Random House and also from Dystel & Goderich, the literary management company. Another lot of their salary, $16,000, was reportedly earned via taxable interest.

As compared to the weight of his job, the salary of the President is relatively less. With a base salary of $400,000 annually along with fringe benefits and perks of $20,000 for travel and entertainment options, the total salary sums up to simply a little bit more than $550,000 annually. On the contrary, Charif Souki, the CEO and President of Cheniere Energy earns about $4,388,902 per day which almost sums up to a staggering $141,949,280 per year. This unusually large compensation given to the head of the Texas-based company dealing in transport of liquefied natural gas. However, it dims in comparison to the huge complexities and daily challenges President Barack Obama has to face, all a constant reminder that the responsibility

Mario J. Gabelli, CEO and Chief Investment Officer of the GAMCO Investors, reportedly makes $485,049,800 on a yearly basis.

Gabelli has 50 percent stakes, with a total worth of $1.2 billion. The company started out as a market research firm in the 1970s and has achieved considerable success to date.

Lawrence J. Ellison, Executive Chairman of Oracle Corporation, an American firm specializing in computer hardware, database systems and enterprise software, makes $78,440,657 per year and has a total worth of $56.3 billion.

Leslie Moonves, the Chief Executive Officer and President of “America’s Most Watched Network”, CBS, was initially a television executive for many different networks and presently earns a salary of $65,589,245 per annum. A traditional American broadcasting company, the CBS Broadcasting Inc., deals with a wide variety entertainment including classic and television shows.

The TransDigm Group deals in the manufacture of military and aerospace-based robotics like mechanical actuators and ignition systems.

Its Chairman and CEO, W. Nicholas Howley, reportedly rakes in an income of $64,214,656 per year. In 2012, the TransDigm Group made revenue of more than $1.7 billion.

Zynga is the developer of social media games such as Farmville, Mafia Wars and Bubble Safari. The company’s CEO, Don A. Mattrick, in 2013 earned $873 million and currently makes $57,814,391 per annum. TPIN

The PIN MAGAZINE | 57

www.thepowerisnow.com

FINANCE

Protect Yourself from Deceiving 0% Credit Card Offerings

W

hen shopping for good credit card offers, it is good to check out a few crucial specifications that are linked to creditors and their promotions. Few of them will tempt you with smart bonus deals only to hit you with costly service fees and limitations once you have acquired your card.

The yearly percentage rate indicates the interest that you will need to pay on your account balances. The percentage is divided by twelve months to show the interest you will need to pay from your balance in each month. Most of the companies who give out credit cards will give you reduced or maybe even 0% interest rates for a year as long as you agree with their package offer. As good as this offer sounds, it is important to check the fine print and learn when the promotional offer ends. In addition, you should know what the rates are once the promotion period is over.

you this; others will charge account holders service charges for each balance transfer.

Penalty charged on missed payments is one of the dangerous things on your finances and credit record. Creditors charge at least $25 (and most certainly more) if you fail to make the minimum payment before its due date every month. This will definitely be costly, especially if you miss several payments. This penalty charge is normally included on your account’s current balance. This has the potential to put credit limit higher, resulting in another expense.

What might sound like a good deal on credit card offers in the market today might not actually be as beneficial as you think it is. Deceiving 0%-interest credit cards look attractive, however, you need to be certain of the validity period of the declared interest rate. TPIN

Best credit card offers make it possible for you to exchange balances with minimal costs. This enables you to merge the outstanding balances on your credit cards to one bank card. Before accepting the card, make sure you know the charges and if any, penalties, on balance transfers. Likewise, it would be smart to check whether you can achieve multiple exchanges by paying fees only once.

There are very few credit card issuers who will give

june / july 2015

The PIN MAGAZINE | 58

FINANCE

The PIN MAGAZINE | 59

www.thepowerisnow.com

FINANCE

Mortgage Servicing Rules According to the

Formed by the Banking Act of 1933, the Federal Deposit Insurance Corporation (FDIC) is an independent agent holding jurisdiction as a United States government corporation.

UNDERSTANDING A SMALL SERVICER A Small Servicer may hold a position as either the services that are in partnership with any alliances, with less than or equivalent to 5000 mortgage loans, all of which for the alliance or the entity is the representative or the creditor, a finance agency in the housing sector, or a non- profit organization that services less than 5,000 or 5,000 mortgage loans in favor of an affiliated non-profit entity; in all of which the affiliated non-profit entity or servicer is the assignee. It is vital that in order to maintain the status of a Small Servicer, potential subservicers have to meet the above requirements of a Small Servicer. Either you or affiliate must originate or own the loans which are serviced for compensation. The definition of “affiliate” must be met: It is any company that has power, is powered by, or is under common power along with any other company.

transaction with a closed end. The loan for the Small Servicer should be in a secured post via a “dwelling”. In this regard, dwelling refers to any residence, house, mobile house, manufactured home, condominium, cooperative or trailer. It is to be noted that the land under the dwelling is not used for loan security. The determination of Small Servicer includes and excludes loans from the count accordingly. If the servicer or any affiliate services mortgage loans which are first and junior, loans towards a loan cap of 5000 are included and the mortgage on reverse, timeshares, mortgage loans which have been charitably or voluntarily serviced and lines of credit on home equity are excluded.

TIMEFRAME

If on January 1st, the requirements of a Small Servicer are met by your respective bank, the bank would hold status of small servicer for that approaching year; and if on January 1st, your bank does not fulfill the requirements of a Small Servicer, the bank has to begin acknowledging the Mortgage Servicing Rules from which initially you were immune. The bank should comply either half a year from the A mortgage loan is a consumer credit date you were not liable until the next January.

june / july 2015

The PIN MAGAZINE | 60

FINANCE

REGULATION Z MORTGAGE SERVICING RULES DEFINED FOR SMALL SERVICES: TILA 1. Adjustable Rate Mortgage (ARM) Initial interest rate adjustment notices for ARMs define that they are required when interest rate adjusts the first time and when the estimated or real new rate should essentially be stated. The timeframe would be between 210 to 240 days prior to the first due payment at the actual new rate and at completion, if within 210 days post completion the first payment is due according to the adjusted status.

2. ARM: Payment Change Notice Interest rate adjustment disclosure is required every time an adjustment in interest rate leads to a payment change and 60 to 120 days prior the adjustment. However, it is not necessary for ARMs of lower than or of 1 year term and for the first adjustment which is due in 210 days post-completion in case the new rate give had not been an estimate.

REGULATION X MORTGAGE SERVICING RULES DEFINED FOR SMALL SERVICES: RESPA 1. Insurance: Force-Placed

The “must have” requirement would be to have a logical basis to reason that the debtor was unsuccessful in maintaining necessary hazard insurance. Notices should be provided minimum to prior force-placing and should meet the requirements, content and format specific to the Rule. In case the debtor replies with positive evidence in hazard insurance requirement, force-placement cannot be done and if insurance evidence has been collected, the force-placed insurance should be deleted and any charges for timeframes of overlapping coverage should be returned or refunded. Only charges which are reasonable, actual and bona fide can be assessed. All Small Servicers must follow the Escrow Rules.

2. Notices on Mortgage Servicing Transfer In contrast to the previous transfer of mortgage servicing rules, the new transfer states that along with the first, it also applies to the subordinate liens. “Notice of Servicing Transfer” model form is new and according to the time periods stated in the Rule, the former servicer and the current servicer should provide ‘Notice of Servicing Transfer’. After a loan transfer, when a payment is received, the payment must be forwarded to the former service or should be returned to the debtor with the proper recipient. TPIN

The PIN MAGAZINE | 61

www.thepowerisnow.com

FINANCE

The Federal Reserve Rate Hike

T

hrough sure calculations, the Federal Reserve may have to raise its benchmark interest. Peter Boockvar, a chief analyst, discovered that unemployment rates are getting no better and neither is inflation.

The unemployment rate and lack of inflation are not the only reasons for this Federal Reserve hike in interest. The economy itself is getting smaller by the day. Annually, the economy is only growing by 2 percent. Even if there were a turnaround, the prediction of growth according to analysts would only be 5 percent.

In addition to this, individuals and businesses are not investing like normal. Of course, this is because businesses and investors know the economy is not getting any better.

In this year’s second quarter, analysts were sure consumers were going to spend money and thereby cause inflation. The analysts were proven inaccurate.

Consumers have not been spending. The economy is going downhill in a perfect spiral. This

june / july 2015

second quarter is going to be the worst in years and maybe even the worst ever.

Even with the labor department providing the creation of almost three hundred thousand jobs in April, the overall unemployment rate is on its way to 8 percent.

Representatives from the Federal Reserve spoke out and said all they are paying attention to is the unemployment rate rather than the number of jobs being created in a particular month.

The World Weighs In On This Matter There was a recent interview conducted with Michelle Girard, chief economist of the Royal Bank of Scotland. She stated that the Federal Reserve has the right to be cautious when the unemployment rate is as high as we have it. This is because it’s hard to get that number down in a decent period of time. It is also possible that the number will not come down at all. Girard also stated that the United States

The PIN MAGAZINE | 62

FINANCE

central banks should not complain because the Federal Reserve will not raise rates higher than two percent. Not to mention, the interest rate has been at zero for a long period of time.

In defense of the central banks, Michelle Girard also gave a good word: with the Federal Reserve raising interest rates, central banks will have no choice but to raise interest rates. This means it will be harder to get a loan, and more people will be foreclosing on their home. Overall, the economy will not get better at all; it could be similar to The Great Depression, but this is the worst case scenario.

However, Roger Altman, of Evercore Partners, has another idea on this matter.

He believes the Federal Reserve should wait before raising the interest rate.

This is because several states will soon raise the amount of minimum wage. In addition to this, the Labor Department is predicting the creation of many more jobs within the next few months.

Roger Altman concluded by stating that investors are going to be sorry they did not invest in the U.S. economy because the economy is due for a change.

Many people, especially economists, have agreed with Girard rather than Altman. However, only time will tell in the end.

The PIN MAGAZINE | 63

www.thepowerisnow.com

FINANCE

Numbers In Favor Of Central Banks

In Summation

NBC recently spoke with Jeffrey Gundlach, founder of Doubleline Capitol. Jeffrey had numbers for NBC, which show that the Federal Reserve will most likely keep the interest rate at zero. Before getting into the numbers, however, Jeffrey described how this interest rate affects everyone. If interest rates do not rise, that is bad for bonds. This is because the rate of bonds will not tighten. Keeping the interest rate at zero, however, will be great for stocks. Stocks will always benefit for a policy that is loose.

There are two sides to this story. Bankers everywhere agree that both sides are correct, to a respect. There are pros and cons to everything, and this includes an economy as well. There are pros with the Federal Reserve raising the interest rate, which have been proven. There are also cons with the Federal Reserve raising the interest rate, which have also been proven.

People all over the globe, even those that do not understand the life of the economy, are paying attention to this situation. This is because all of these individuals know this situation will affect their future in one way or another. This situation will affect the entire world in oneway or the other.

Concerning the numbers, corporate investing companies will have to invest more money if the Federal Reserve raises the interest rate.

These companies recently had to invest another 0.2%. Although this does not sound like a lot, it raises a general 10-year treasury note up almost ten points, which is around ten percent.

Going further, even if corporate companies agree to invest, they could possibly be setting themselves up for failure because nothing is a guarantee even in a perfect economy. This will make corporate companies not want to invest in the U.S. anymore.

Jeffrey concluded his interview by stating that it might not be a terrible thing if the Federal Reserve raises the interest rate. Though his numbers are probably correct, Jeffrey wanted to remind the central banks of the old adage be careful what you wish for. In the end, banks might have wished the Federal Reserve did raise the interest rate, at least to one percent.

june / july 2015

Economists everywhere are encouraging people not to panic and not to believe everything they hear. This is not something that will happen tomorrow, although it is something that can happen in the near future. Economists are encouraging people to go about their lives and not to worry about this situation because it is something that is out of their hands. Whatever happens will happen, and no one will be able to stop it.

One last note: economy analysts have been wrong in the past. With that being said, the economy could sway in a way that no one ever expected, and this could be either good or bad for everyone.

TPIN

The PIN MAGAZINE | 64

NEWS

Why

the Supreme Court is Reviving Case Against ING Group

I

f a statement of opinion is referred in a statement of registration, then it may not be the best shelter from liabilities that are contained in the Supreme Court Act of 1933.

In the last week of March 2015, the Supreme Court of the United States stated its decision clearly in Omnicare Inc. v. et al Laborers District Council Construction Industry Pension Fund et al., - Omnicare. Omnicare was granted cert in March 2014. The Court acted on adopting a medium base pleading class of what could contain a statement of actionable opinion. The Sixth Circuit had adopted a highly pleading class for statements of positive opinions and the Second Circuit had adopted a highly insistent approach for these opinions.

The Supreme Court discarded both these standards.

Moving along the Omnicare decision, the morning of March 30, 2015 witnessed the revival of a class action case against Freidus ING Groep Nv Freidus. Seizing on this opportunity, the investors against Marshall Freidus along with others brought to attention of the high court the virtual similarities

june / july 2015

between the Omnicare case and the ING case. Hereby the ING Groep was accused by the plaintiff of concealing and covering the risks of securities backed by mortgages. A November 2013 decision that was made by the Second U.S. Circuit Court of Appeals was rejected by the justices.

It is understood that Freidus et al. v.

ING NV et al. will be returned for consideration proceedings to a lower court.

In February 2009, the lawsuit was filed the first time. It stated the illegal hiding of the risky nature of the securities backed by mortgages, which had been done by ING. A provision of the security laws bans untrue statements within statements filed with the Securities and Exchange Commission of the United States. According to a group of ING investors who faced huge losses when housing markets of the U.S. fell, ING had knowingly violated the law. They claimed they had been deceived, when in June 2007 ING issued its 6.375% of ING Perpetual Hybrid Capital. In reference to the Omnicare case, the high court stated that shareholders

The PIN MAGAZINE | 66

NEWS

are not allowed to sue companies if statements have been issued prior to a public stock offering just on the basis that the statements have turned out to be false.

According to the Wall Street Journal, the Supreme Court found that an organization or company would be held responsible for fraudulence in securities if the omission of facts from the documents of registration has been done that will bring forward critical queries regarding the validity of the opinions offered and expressed to the investors by their company.

The plaintiffs in the ING case are: • Steven F. Hubachek and Eric Alan Isaacson of Robbins Geller Rudman & Dowd LLP • Deborah R. Gross and Andrew J. Brown of the Law offices of Bernard M. Gross PC • Representation of the defendants in the case is done by: • Danielle J. Levine, Jared M. Gerber and Michelle J. Parthum of Cleary Gottlieb Stem & Hamilton LLP

• Mitchell A. Lowenthal • Christopher R. Fenton and Adam S. Hakki of Shearman & Sterling LLP • The case is being held before the Supreme Court of the United States with the following details: • Case Name: Marshall Freidus et al. v. ING Groep NV et al.

• Case Number: 13 - 1505 ING Groep NV represents a Dutch insurance and investment firm. The Netherlands awarded bailout to the company and currently ING is liquidating all those assets that fall under the category of non-insurance and non-core. Also, according to the bailout rules, the financial company is expected to encourage decrement in its legacy and foreign investments.

Finally, in early March 2015, all the U.S. ventures of ING were dispossessed by the firm. TPIN

The PIN MAGAZINE | 67

www.thepowerisnow.com

As you Venture out into the World of Real Estate

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

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

Frazier Group Realty is the right place. Our Navigators are available to give you personalized service and answer any questions you may have. You can call, email or visit us and we will be there ready to help you every step of the way. Whether you are a first time home buyer or an experienced real estate investor, here at Frazier Group Realty you gain useful information about how to choose the "right" property, and everything involved in making an informed decision in today's real estate market.

COMMUNITY

DISCLOSURE:

Access to Property and Insurance History

A

s a seller, you may be held liable to a homebuyer in case of failure to disclose specific property conditions during the process of the sale.

Many states have termed it as illegal to knowingly conceal issues which can directly or indirectly affect the property’s listing value.

Under today’s laws, most states approve and validate only written disclosures discussing the problems of property in reference which are agreed and signed upon both by both parties - sellers and buyers.

Prior to the laws in effect, the prospector was supposed to carefully look over the property and the public records. Based on these inspections, decisions were finalized by the buyer if there were any problems that needed to be brought to attention, which could affect the desirability of the property. If in case a repair was required, the buyer

june / july 2015

could request the homeowner to remedy the issue prior to closing the deal or if the contract provided the ability to walk away, the buyer could do so.

The changed disclosure states it as the seller’s duty to disclose any noticeable or unnoticeable defects that may have occurred or pose a possibility of occurring in the future. The seller would be found liable should the case of undisclosed defects arise. A seller and the buyer may share a relationship of trust where the former would be the trustee, guardian, agent or attorney and the latter would be the beneficiary, ward, principal or client. If the seller knows and understands a defect or possibility of a defect and still keeps it hidden along with knowingly interfering and altering the efforts of the buyer’s investigational activities, then he or she will be charged with “active concealment” and would

The PIN MAGAZINE | 70

be held responsible for the damages caused by the deficiencies.

The statement of disclosure covers an array of questions regarding the property. It is essentially expected of the seller to fill out the provided options which include a wide range of past, present or future lacking features, faults or deficiencies. These could be: • basic information, such as ownership status, current age, overcharges in utilities; • e n v i r o n m e n t a l information like location of the property, proximity to a landfill, inside an agricultural district; • type of land - wetlands, hills or flood plains; • prior use of property, such as tank house or fuel storage; • materials used, such as asbestos or lead; • nuclear and harmful substance information,

COMMUNITY

•

•

• •

for example, if the property has witnessed any nuclear tests, or if any toxic, hazardous or petroleum-containing gases or liquids have been at any point in time leaked or spilled within close distance, interior of, exterior of, or on the property; weather issues, such as if the property is located in an area that may be prone to natural disasters like forest fires, earthquakes, lightning strikes, tornadoes, floods or any other natural calamities; general information, which defines whether the property suffers a case of leaky roofs or a broken staircase; if the neighborhood is noisy and boisterous or even dog barking problems; the demises that have taken place on the property covering at least the last 2 or 3 years; and mechanical and other information, such as insect, water sources, smoke, fire and structure of the drainage and sewer systems.

According to the Insurance History Disclosure, the seller shall have to deliver a five- year insurance history written disclosure to the buyer. As the statement says, the seller “shall”, this means there is no alternative. The disclosure is often termed as the Comprehensive Loss Underwriting Exchange (CLUE). If any insurance claims

have been made on the property in the past, the CLUE Report would focus solely on them.

The disclosure also states that if the history has not been delivered, the consequence would be the seller’s breach of contract. “History”, in this context, refers to the full past that covers the complete claims history. The seller is not allowed to select any claim according to personal preferences as to which to include or exclude.

Following the acceptance of the contract, the history report is due five days thereafter.

“Days”, in this case, do not refer to business days, but calendar days. Insurance companies are often slow. In such cases, the seller has to work in a quick and efficient manner to get the claims history ready.

The information may be provided by either the insurance company or the consumer reporting agency, or if these sources are unavailable, the seller. If the buyer wishes to disapprove any items, notice for the same can be given five days from receipt of the history report or during the Inspection Period. TPIN

The PIN MAGAZINE | 71

www.thepowerisnow.com

TECHNOLOGY

Drone Photography and Its Probable Implications on Real Estate A relatively small aircraft, either autonomously driven by built-in computer systems or controlled by a remote from land, drones represent the popularity explosion across the world in the military, law, security and scientific special operations. Although available in an array of sizes and shapes, these vehicles are commonly shaped as a very small helicopter or airplane. Their operation is remote-based and according to the classification, drones may cover a range from 2 miles to almost 200 miles.

Though these futuristic devices are usually fixed with cameras, drones are also used as a means of transfer for supplies and in combat missions.

is one of the best paths to keep any potential homebuyer impressed and interested in the property.

Over the last several months, aerial footage has gained favors as it helped real estate agents in capturing the client’s attention and enhancing a user’s viewing experience. Potential homebuyers prefer an engaging presentation.

Drone photography advantages a customer with a comfortable and smooth ride, showcasing the local educational spots and colleges, convenience stores, golf courses, parks and other centers, all in motion. With a ride from the driveway and up to the front door, the presentation would provide the viewers with an Drone photography is the new class for high- opportunity of looking at the surroundings and end marketing in real estate. Due to the perks travelling on the property as if it was their own. and opportunities, excitement around these unmanned aerial vehicles (UAVs) is on the Prior to drones, a photographer was hired rise. Any real estate agent would understand should a real estate agent wish to capture aerial that the best highlight to selling a house is shots of a property. Modern technology has, presentation. Utilization of drone photography no doubt, brought with it several benefits and and videography for residential presentations drone photography is one of them. In the past,

june / july 2015

The PIN MAGAZINE | 72

TECHNOLOGY

for shooting aerial pictures, a photographer came with a helicopter and of course, it also came with a significant cost. In addition to this, the procedure of setting up a helicopter shoot is far more tedious and time- consuming as compared to a drone shoot. The latter would take merely five to ten minutes. An incredible way to showcase expanded and large areas of land, drones would take aerial photos with just the right angle and the perfect view that is not possible to achieve otherwise. Since the era of internet has taken over, solicited and planned home tours have been replaced by an escalating demand in virtual tours and aerial photos. Drone footage brings to the forefront a property’s uniqueness, benefits and fine qualities and help in captivating the audience.

Drone photography may also be used in conjunction with home property appraisals. If a property is appraised, the banks can keep a hold on losses during lending to certain properties that might not be in level to their stated selling prices. It can be used to showcase all areas of the real estate including external features of the home. In this way, the total time taken by a potential homebuyer in inspecting the property in person is substantially decreased. Thus, the

homebuyer is given the best bird’s eye view through hassle-free and the easiest measures.

Drones are great opportunities for realtors and homebuyers who want to adopt cuttingedge robotics and technology to better the selling and buying procedures. Plainly stated, drone technology is for those who wish to create the “Wow!” factor for their prospective homebuyers.

The United States Federal Aviation Association (FAA) temporarily does not permit the usage of drones or unmanned aerial vehicles (UAVs) for any commercial interest, except where the user has been granted a certificate of permission.

However, courtesy of the FAA Modernization and Reform Act of 2012, the FAA will implement regulations permitting the use of drones for commercial purposes beginning September 30, 2015. People are allowed to fly drones as a hobby with a strict limit of only 400 feet in the air. The estimation is that approximately 7,500 units will be given certificates by 2016 and by 2020, nearly 160,000 drones will be sold, 10 percent of which will be contributed by real estate marketing. TPIN

The Power Is Now, Inc. is in search of talented, professional WRITERS and GRAPHIC ARTISTS. Please get in touch with our Managing Editor, Ross Dickens, at:

ross.dickens@thepowerisnow.com Be a part of our wonderful team!

POWER REAL ESTATE AGENTS Endorsed by Eric Lawrence Frazier MBA

A G E N T S AARON ZAPATA

JUSTIN POTIER

http://aaronzapata.com

http://www.boardwalkluxuryhomes.com/

Aaron@aaronzapata.com (562)903-0088x112

justin@boardwalkreo.com (562)424-0333 (562) 480-0684

(714)904-7877 Zapata Realty, Inc P.O box 624

(562) 513-1006 3948 Atlantic Avenue,

Yorbalinda, CA 92885

Long Beach, CA 90807

KIBY PEARSON

JONATHAN ANOZIE

www.pearsonrealtygroup.com

janozie@realtyexchangefirm.com

kirby@pearsonreo.com

(310)216-9077

(773)325-2800 x 101

(310)678-8138

(312)805-0005

1620 Centinela Avenue, Suite 203,

1000 N Milwaukee Ave

Inglewood, California 90302

Chicago, Illinois 60642, United States

LYNETTA CORNELIUS

JONATHAN BURGESS

lynettacornelius@earthlink.net

http://www.code3realty.com/

(925)759-8606

jonburg@code3realty.com

(714)904-7877

(916)455-5225 Ext. 6

111 Deerwood Road, Suite #200,

(916)296-3645

San Ramon, CA 94583

11801 Pierce St. Ste. 200 Riverside, CA 92505

IVERY SUMMERS

BOB IRISH

http://www.thereodiva.com

http://www.lakehillsrealty.com/index.shtml

ivery.sells@verizon.net

bobirishrealtor@gmail.com (951)343-3606

(310)649-2711

(951)313-6080

(310)920-3455 8939 S. Sepulveda Blvd. Ste. 261

3410 La Sierra Ave. F-519 Riverside, CA 92503

Los Angeles, CA 90045-3944 , USA

The PIN MAGAZINE | 75

www.thepowerisnow.com

A G E N T S NANCY BRAUN

AMEER J. ELAHEE

nancy@showcaserealty.net

www.101WaysHome.com

704-997-3794

www.GreatMonroviaHomes.com

1430 S. Mint Street, Suite 106

ajelahee@msn.com

Charlotte, NC 28203

909-944-4757 626-625-0099

HELEN MOAVENI

MARGUERITE CRESPILLO

REO / Shortsale Director

916-580-0808

Paragon Saol Realty Group

714-904-7877

oc.realtist.wc@gmail.com

535 Menlo Dr., Ste. A

helenmov@gmail.com

Rocklin, CA 95765

ocrealtistwc@gmail.com 818-789-5986

KENNEDY AKINLOSOTU

DIANNE LANGSTON

Real Estate Broker

http://aaronzapata.com

Nations Realty kennedy@nationsrealtyllc.com akinlosotu4@gmail.com 206-423-9999

reo2448@gmail.com, dianne@diannelangston.com 707-580-1585

24860 Pacific Hwy South Ste.

714-904-7877

102, Kent WA 98032

432 Jackson St. Fairfield, CA 94533

MICKELIN BURNES-BROWNE

ANITA JONES-CAYENNE

MICKELIN@soldbymickelin.com 408-272-7645

President, CAREB carebpresident@gmail.com 209-952-8861

408-569-0978

510-681-4147

408-273-6470

California Association Real Estate Brokers

2894 Mabury Court

Broker/Owner, Embarcadero Investment

San Jose, CA 95133

REO Specialist 6777 Embarcadero Dr., Suite 1 Stockton, CA 95219

june / july 2015

The PIN MAGAZINE | 76

A G E N T S REGGIE WOODGETT

ARNOLD VER

http://aaronzapata.com

www.housevaluemax.com

RWOODGETT@realtracs.com (614) 400-4173

homes@housevaluemax.com reoteam247@yahoo.com 626-905-0919

(615) 562-1766

626-810-7620 1221 S. Hacienda Bl. Hacienda Heights, CA 91745 17843 Colima Road, Rowland Heighs, CA 91748

RAUL VILLACIS http://www.argct.com/

ZORITHA THOMPSON

raul@argct.com

http://aaronzapata.com

(203) 964-3000

zorithasellsreo@gmail.com

(203)249-1248

916-870-4765

482 Summer Street,

714-904-7877

Stamford, CT 06901

8211 Bruceville Rd. Suite 145, Sacramento, CA 95822

JILL RAND www.JLMPropertiesInc.com

ANGELICA SUAREZ

Jill.Rand@JLMPropertiesInc.com

http://www.angelicasuarez.com/

661-510-2112

ANGELICA@angelicasuarez.com

661-284-7544

310) 802-2444

27201 Tourney Road, Suite 200E

(310) 261-7700

Valencia, CA 91355

RE/MAX Estate Properties 23740 Hawthorne Blvd Torrance, CA 90505

WAYNE WYATT wayne@wyattrealtygroup.com

GLENDA BRASS, MBA

909-945-0679

www.ExitWithDignity.com

323-445-6993

glendabrass@glendabrass.com

909-945-0600

(310) 590-1235

8250 White Oak Ave. No.102

714-904-7877

Rancho Cucamonga, CA 91730

(310) 590-1320

The PIN MAGAZINE | 77

www.thepowerisnow.com

A G E N T S TED BRASS

SERINA LOWDEN

Broker/Owner DRE # 00615106

Realtor, Serina Lowden Real Estate

Ted Brass Real Estate Solutions

serina@serinalowden.com

www.tedbrass.com

916-405-5739

tedbrass@tedbrass.com

9250 Laguna springs dr #100. Elk Grove.

310路590路1235 ext. 102 111 S. Oak St., Inglewood, CA 90301

BRIANA FRAZIER

RUBY FRAZIER

Broker, The Frazier Group Realty

Broker/Owner

brokerbree@fraziergrouprealty.com

The Frazier Group Realty

951-809-9077

downtownnavigator@gmail.com

13602 Cedar Creek Court La Mirada,

(951) 686-5261

CA 90638

ALISHA CHEN

PATRICIA DE SANTOS

Realtor, Presidential Real Estate

Owner Trainer, Real Estate Education

2013 President of Asian Real Estate

Services

Association of America-Orange

patricia@MY-REES.com

County

realestatepatty@gmail.com

www.alishachenhomes.com

(909) 450-9944

alisha.chen@cs-rei.com

R.E.E.S.

(949) 981-8520

2910 Inland Empire Blvd., Suite 107 Ontario, California 91764

june / july 2015

The PIN MAGAZINE | 78