The PIN Magazine December 2015

December 2015 Vol. 02 | Issue 14

COMMERCIAL REAL ESTATE GAINING TRACTION, OPEN CONCEPT, HIGH VALUE APPRECIATION, WHAT CAN YOU EXPECT FROM YOUR HOME?

CARMEN CHONG:

AREAA’S IMMEDIATE PAST CHAIRWOMAN

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

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Any of Our the PIN magazine THE POWER IS NOW INC. Vol. 02 | Issue 14

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

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EDITORIAL TEAM Eric Lawrence Frazier MBA Editor in Chief (800) 401-8994 Ext. 703 Alexandra Attinger Managing Editor (800) 401-8994 ext. 708 alexandra.attinger@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager (800) 401-8994 ext. 711 goldy.ponce@thepowerisnow.com Nicholas Clarkson Director of Technology (800) 401-8994 ext. 704 nicholas.clarkson@thepowerisnow.com Scocrates Ayala Online Radio & Media Manager (800) 401-8994 ext. 709 socrates.ayala@thepowerisnow.com Rachel Bacol Radio and Social Media Manager (800) 401-8994 ext. 707 rachel.bacol@thepowerisnow.com

december 2015

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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: Alexandra Attinger ONLINE Web Designer: Nicholas Clarkson DESIGN Art Director & Design Manager: Goldy Ponce ADMINISTRATIVE Administrative Assistant: Kendra Gedeon

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Issue...

OUR COVER

In This

YOU

DESIGN 14 Commercial Real Estate

18 Managing Your Way to Financial Freedom

36 SBA Loans Now More Readily

LEGAL

Gaining Traction

REAL ESTATE

ECONOMICS

Chong

50 Building Lasting Relationships

46 Open Concept, High Value

FINANCIAL

32 Carmen

Available to Borrowers 52 New HUD Rules to Reinvigorate Fair Housing Laws

22 Austin, TX 28 Appreciation: What can you expect from your home?

42 Walmart’s earnings have ral estate investors on edge, preparing for future

From the

Editor...

A

As the chill of the holiday season sets in settle down with The Power Is Now with some hot chocolate. Real estate is bustling and organizations are giving buyers, sellers, brokers, and agents reason to venture into the snow.

The Asian Real Estate Association of America (AREAA) is having their leadership conference on December 13th to reflect on how far Asian Americans have come in this country and influence the next leaders of America. The Power Is Now always loves to support up and coming leaders. I had the fantastic opportunity to sit down with Former Chairwoman Carmen Chong to talk about her rise to leadership.

The National Hispanic Real Estate Professionals (NAHREP) recently held elections within the organization for the new president. Congratulations to Joseph Nery for his new position as President Elect. The Power Is Now Radio and Magazine looks forward to following Mr. Nery’s leadership.

The National Association of Real Estate Brokers

december 2015

The Power Is Now MAGAZINE | 10

EDITORIAL

(NAREB) is now promoting their invaluable regional conferenced that are beginning in February. Look for the conference in your area to change how you look at real estate and finance forever.

Brand new HUD rules have opened the doors to minorities that depend on the Fair Housing Act to chase their American Dream. Lessening the wealth gap and bringing those stricken with poverty to the surface must be a priority in this country, and one hopes that the next leader of the United States will embrace these ideals.

In the world of politics, Donald Trump reigns over the media yet again. While most of the world assumed he was only in the race for the popularity, he seems to have defied them.

Remaining in the race as the frontrunning Republican candidate, Trump is enjoying his time in the limelight while other candidates in the Democratic party such as Bernie Sanders and Hillary Clinton rise in the poles.

Technology is constantly evolving within the real estate industry. iPhone mounted cameras are revolutionizing the way that open houses are done. Now you can simply log on to your

realtor’s website to see a virtual tour of your dream home. The future of real estate is upon us! The Power Is Now Inc. is ready to help you along the way, whether that is through The Power Is Now Magazine or Radio. The Power Is Now Online Resource is always available.

For our readers we are offering a fantastic opportunity to advertise your properties in our magazine and our radio show. Your clients will be ecstatic when you tell them that their properties are being advertised on a premier radio program and a fantastic magazine.

The Power Is Now would like to thank our readers, listeners, and contributors for the continued support. We invite you to join us online for invaluable blog posts, engaging radio shows, and the latest issues of our magazines to enhance your learning in the field of real estate, finance, and success. You have the power to change your life, because The Power Is Now.

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

The Power Is Now MAGAZINE | 11

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COMMERCIAL Real Estate Lending Now on the Rise

W

hen the economy crashed in 2008, most of the news stories focused on the impact it had on homeowners. Home values tanked, people lost their jobs, and many found it increasingly difficult to pay their mortgages. Banks responded to the housing market collapse by tightening credit. As a result, many homeowners found themselves underwater on their mortgages and banks refused to refinance. Homes hit the market left and right, and when they could not sell, the foreclosure proceedings began.

Job losses and small business closures were also well reported in the media.

Less commonly discussed, however, were the impacts on the commercial real estate market. The economy contracted and commercial vacancy rates increased immediately thereafter.

The trouble was that businesses stopped growing, and therefore could not sign long-term leases. Commercial real estate is driven by long-term leases. In order for a commercial real estate project to be financed, lenders want a clear understanding of how the loan will be repaid and the repayment is usually based upon the creditworthiness of the major tenants. Lenders consistently backed out of commercial loan deals. In 2013, fifty-

december 2015

two percent of Realtors reported they had a commercial transaction fail due to a lack of financing (Molony, 2013).

When lenders did finance commercial real estate projects, the loans were often at high interest rates and/or had other favorable loan terms. These loans were often considered risky, and as a result, would were not guaranteed by FHA, Fannie Mae, or Freddie Mac. Fast-forward to 2015. The economy has improved, businesses are stronger and investor confidence has skyrocketed.

Corporations are pulling out of years of sluggish growth and have ramped up expansion plans. By mid-year, commercial loans were preparing to eclipse residential mortgages for the first time since the 1980s (Rudegeair, 2015).

The surge in commercial loan activity can be attributed to a number of factors. First, as the economy improves and companies expand, the demand for commercial real estate grows. “This growth has left primary markets challenged by significant supply constraints, creating a competitive environment for tenants, with higher costs and fewer options,� notes a premier real estate advisory firm (Jones Lang Lasalle, 2015). It is a simple case of supply and demand:

The Power Is Now MAGAZINE | 14

ECONOMICS

as vacancy rates decrease, demand increases; as demand increases, so do prices. Higher rental rates mean increased cash flow toward repayment of the loans, and therefore less risk to lenders.

At the same time, interest rates remain at record lows. Despite ongoing speculation about the Federal Reserve Bank hiking rates, this has not happened to date. Businesses and real estate developers alike are eager to build, expand, and refinance while rates remain low.

James Chessen, chief economist of the American Bankers Association, echoes this sentiment.

“People borrow when they feel they have the capacity to repay debt, and the comfort level of both businesses and consumer is increasing,” he explains.

“Borrowing is likely to remain elevated as businesses look to jump-start expansion plans before an expected increase in rates by the Fed later this year (Rudegeair, 2015).”

By some estimates, commercial and industrial loans have swelled by nine percent annually over the past five years (Great Speculations, 2015). First quarter loan growth was up 8.5

People borrow when they feel they have the capacity to repay debt, and the comfort level of both businesses and consumer is increasing percent this year already when compared to the same period just one year ago. Lending has increased so quickly, and so extensively, that banks are expanding their commercial real estate divisions. Bank of America, for instance, has increased its commercial real estate team by four percent so far this year, and was planning to increase it by fifteen percent by the end of the year. This comes at the same time as the company has reduced its overall staff by twenty percent in recent years (Rudegeair, 2015).

Boston, San Francisco and New York that already face constrained supply, people can expect to see an uptick in new development. Class B and C properties will remain “strategic value plays” for investors in these top-tier cities (Burley, 2015). Adding to the commercial real estate supply will help lower rental rates, which in some cities is now a staggering seventy dollars per square foot. When prices tick down, it will increase the opportunities for less-well capitalized companies to grow.

Finally, growth can be attributed to investors who are increasingly adding commercial real estate to their portfolios. Institutional investors, real estate investment trusts (REITs), and pension funds are fueling this growth, particularly in the multifamily sector (Burley, 2015).

Meanwhile, as the commercial market expands, expect residential demand to increase too. It is a cycle: more office, more workers, more demand for housing. This is particularly true as Millennials and Baby Boomers move back to the urban core for a 24-7 live-workplay environment.

As long as interest rates remain low and the job market remains strong , so too will the commercial real estate market. like

The growth in primary markets, though, will drive prices so high that many investors will turn to secondary markets like Philadelphia, Denver and

The Power Is Now MAGAZINE | 15

www.thepowerisnow.com

For

primary

markets

ECONOMICS

The expansion of the commercial real estate market, particularly in urban areas, is exciting. It shows promise for continued economic growth.

Austin. Expect more Class A office space to come online in these cities, which will have a major role in redeveloping these inner city economies.

Another trend worth watching: a redefined retail market (Burley, 2015). Commercial buildings are almost always being built nowadays with ground floor retail. Retail is moving from suburban-style shopping centers to urban,

outdoor and pedestrian-friendly retail.

Municipalities will likely struggle to repurpose the behemoth malls that were once so popular just a decade ago.

The expansion of the commercial real estate market, particularly in urban areas, is exciting. It shows promise for continued economic growth.

At the same time, it is important to remember that real estate cycles typically last about ten years. The last economic downturn was in 2008, so even though investors feel highly confident in today’s market, all are keeping a close eye on the harsh realities that could lie just around the corner.

References • Burley, Peter and David Lynn. “Six Trends in Commercial Real Estate to Watch for in 2015,” Urban Land Institute. 5 January 2015. http://urbanland.uli.org/economy-markets-trends/six-trendscommercial-real-estate-watch-2015.

• Great Speculations. “Q1 2015 U.S. Banking Review: Oustanding Commercial Loan Portfolio,” Forbes. 17 June 2015. http://www.forbes.com/sites/greatspeculations/2015/06/17/q1-2015-u-sbanking-review-outstanding-commercial-loan-portfolio.

• Molony, Walter. “Commercial Real Estate Fundamentals Improving, Lending Tight for Small Businesses,” National Association of Realtors. 28 May 2013. http://www.realtor.org/newsreleases/2013/05/commercial-real-estate-fundamentals-improving-lending-tight-for-small-business.

• “Office Outlook,” Jones Lange Lasalle. 2015. http://www.us.jll.com/united-states/en-us/research/ office-outlook.

• Rudegeair, Peter and Ryan Tracy. “Business Lending by U.S. Banks on the Rise,” The Wall Street Journal. 27 May 2015. http://www.wsj.com/articles/profits-at-u-s-banks-rise-in-1stquarter-1432737016.

• Yun, Lawrence. “Lenders Return to Commercial,” Realtor Magazine. September 2015. http:// realtormag.realtor.org/news-and-commentary/economy/article/2015/09/lenders-return-commercial.

december 2015

The Power Is Now MAGAZINE | 16

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FINANCES

Managing Your Way to Financial Freedom “Save a latte a day and by the time you are ready to retire, you will be a millionaire.”

That was among the most important financial advice someone can be given. The point was simple: If you invested roughly three dollars per day starting then, you would reach one million dollars in the next forty-five years. The key ingredient is compounding interest. Managing your money is critical to develop a successful future. Here are five ways to manage your money successfully.

1. Be sure to track your spending for a month 3. Get a handle on your debt. Debt is a scary to understand exactly where your money is word, but it is important to know that not all going. Online banking has made it easier than debt is “bad debt.” For instance, a mortgage ever to track purchases made with a credit or that you pay on time every month is good debt debit card. All statements are readily available to have, as this helps build equity over time. online to view. Some banks even have a builtPaying eighteen percent interest a month on in tool to tabulate how you spend already— frivolous credit card purchases? Very bad debt. food, entertainment, travel, you name it.

Understand how much debt you have, where Those tools only look at spending from that it is coming from, and the terms of the debt. one account, though. A more comprehensive way to track your money is through a mobile There are two schools of thought. The app like Mint (Eler, 2015). Mint syncs up all first suggests that people should pay off accounts to track earnings, spending, saving the debt with highest interest rates first; and budgeting. Each section is intuitively the second suggests paying off smallest organized to give you a big picture of loans first (regardless of interest rates), your finances, including your credit score. as this gives a sense of achievement that leads to better money management habits 2. Based on your spending patterns, identify down the road. Both are viable options; where you can cut back. Before you started determine which will work best for you. tracking your spending, you may have had no idea that you were spending hundreds of dollars With interest rates at rock bottom lows, now is on new clothing each month. Now you do. also an opportune time to consider refinancing.

Make a budget and stick to it for three months.

While most people consider refinancing Each month, evaluate your projected budget their mortgages, you can also refinance versus your actual budget to see how well student and car loan debt just as easily. you stuck to the plan. If you are consistently unable to adhere to your budget, reconsider 4. Start saving for retirement now. When that budget after three months and put together you are young retirement seems ages a more realistic budget. If budgeting is new away. Money saved earlier in life will earn to you, start with small changes first. Small you far more money than the same exact changes will lead to better money management amount of money invested later in life. habits, allowing big changes to follow suit.

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The Power Is Now MAGAZINE | 18

FNANCES

Take Susan and Bill, for example.

Susan invests $5,000 annually between the ages of twenty-five and thirty-five (ten years).

Total investment: $50,000. Bill invests $5,000 annually between the ages of thirty-five and sixty-five (thirty years.) Total investment: $150,000. By the time Bill and Susan are each sixty-five years old, Susan’s money will be worth an estimated $602,070 whereas Bill will have only saved $540,741 despite his initially investment tripling Susan’s. That is compounding interest, or interest that accrues to an amount of money that in turn accrues interest itself (J.P. Morgan, 2015).

Conventional wisdom suggests saving anywhere from ten to fifteen of pre-tax earnings for retirement (Pant, 2014). Many companies offer a 401k match. Always take advantage of this option! If you contribute 5% and your employer matches five percent, that is ten percent right there.

5. Save for a rainy day. While saving for retirement is important, it is equally important to put money aside in an emergency fund.

By some estimates, twenty-nine percent of Americans have no emergency savings (Puzzanghera 2015), the highest level in five years. Yet life is unpredictable. People lose jobs. Cars break down. Medical conditions pop up. Insulate yourself from the unknown by setting aside at least the equivalent of six months of living expenses, which is another reason to understand your monthly expenses and have a budget!

The old “ignorance is bliss” adage may apply to many things in life, but personal finances is not one of them. Not knowing where your money is going or living paycheck-to-

paycheck can lead to long-term financial ruin for those who are unprepared.

One need look back no further than 2008 to see the hundreds of thousands of people who were unprepared for the Great Recession. Unable to pay their bills, more than 7 million Americans lost their homes to foreclosure. Credit scores were ruined and the rate of homeownership has since declined, from a peak of nearly seventy percent in 2004 to a 20-year low of 64.3% today (New York Times, 2014). The trend is worrisome given that homeownership has long been central to Americans’ ability to accumulate wealth and provide financial security through retirement.

Speaking of retirement, many tapped into retirement accounts to stay afloat during the recession. Now, only eighteen percent of people believe they are on track to reach their retirement goals, and the average savings rate is only four percent—well below the ten to fifteen percent recommended average (Carter, 2015). In fact, some have speculated that the economic crises has not disappeared, but rather morphed into a retirement crises (Richtman, 2014) that will have longer-term impacts that are largely being ignored today.

It is high time to adopt a new adage, “You can’t manage what you can’t measure.”

Measure your spending, monitor your budget and manage your way to financial freedom.

REAL ESTATE

Real Estate Market Focus:

AUSTIN, TX

A

ustin is strategically located in the Central Texas. It is the capital of the state of Texas and acts as the seat of Travis County.

It is classified as the 4th most populous city in Texas and southern America. It is also the eleventh most populous city in the entire United States. From 2000 to 2006, Austin was among the top three fastest-growing large cities in the United States. Phoenix, the capital city of Arizona, is the only state capital believed to be greater than Austin. On 1st July 2014,

U.S. Census Bureau indicated that the city had an estimated population of 912,791.

Austin acts as the cultural and economic center of the AustinRound Rock metropolitan area.

On July 1, 2013, this area had an estimated population of 1,883,051(Griffith, Griffith, & Stern, 2006).

Stephen Higley, a geography professor at the University of Montevallo, conducted research on and concluded that Austin had nine of the nation’s wealthiest neighborhoods.

These neighborhoods with their corresponding mean household incomes included West Lake Oaks-Bee Creek Terrace-$388,436; WestlakeWest Rim-$328,206; Old West Austin- $296,454; West Lake Highlands- $293,816; Barton Creek$284,842; Austin Country Club-Green Park$273,108, Balcones ParkMount Bonnell-$257,494; Rob Roy West-Sky Forest-$250,555; Davenport Ranch-Westlake Highlands-$250,540.

He ranked West Lake OaksBee Creek Terrace as the

Homeownership, more so than ever before, is the key to wealth creation

REAL ESTATE

64th richest neighborhood in Wildflower Center, Inner Space America (Higley, 2015).

Caverns, McKinney Falls State Park, Wild Basin Wilderness Austin offers a variety of events Preserve and Zilker Park. such as food festivals, music These fantastic venues are concerts, sports competitions, perfect places to bring family museum displays, exhibits and friends for get-togethers and family fun. Some of these like family reunions or parties. festivals and events include The great outdoors in Austin the Austin Marathon and Half brings a cheerful element to Marathon, Rodeo Austin, this metropolis. Since these Dragon Boat Festival, Free places are so Day of Yoga, Old settler’s Music Festival, and Austin City Some of the best Austin Limits Music Festival among historical sites include French many other fun and exciting Legation Museum, Texas State events.

Capitol, Texas State Cemetery, Texas Governor’s Mansion, Austin has spectacular hotspots University of Texas Campus, which comprise of Austin Neil Cochran House Museum, Nature and Science Center, Driskill Hotel, German Free Zilker Botanical Garden, School, Susanna Dickinson Umlauf Sculpture Garden House, Bremond Block House & Museum, Austin Zoo & District, Treaty Oak, Madison Animal Sanctuary, Lake Log Cabin, Daniel H. Caswell Travis, Lady Bird Johnson House and Littlefield House.

Austin has a lot of educational institutions that offers quality education. Some of the bestrated schools include; Barton Hill Elementary School, Blackshear Elementary School, Casis Elementary School, Gullet Elementary School, Highland Park Elementary School, Eanes Elementary School, Hill County Middle School, and Richards School For Young Women Leade. Keep in mind that Austin. TX’s liberal thinking and promotion of the arts in pushed in these schools to further the open-mindedness and creativity along with the academic success of the pupils.

This makes Austin a fantastic area for parents that want their children to be well rounded individuals ready for higher education or the work force.

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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

REAL ESTATE

Austin’s has plenty of luxurious properties.

A quasi- governmental residential mortgage capital source known as Freddie Mac recently conducted a proprietary survey to determine housing stability market in the USA. The Multi-Indictor Market Index or survey yielded positive results by ranking Austin as the second city in housing market stability. The four major data classification sets analyzed in each market during the survey included the number of delinquent home loans within the area, loan repayment as a proportion of income, employment rate, and some purpose applications to secure conventional loans as a proportional of total housing stock.

The composite score of Austin is around 96.6, which is slightly lower than the score of Fresno.

Fresno, a city in the U.S. state of California, is the leading city in scores with a score of 99.4.

The healthy range in the Multi-Indictor Market Index survey is 80 to 120 as a composite and each of the analyzed categories. Freddie Mac also succeeded in detecting how each score was trending and whether the market faced any danger of declining. Surprisingly, Austin improved in each category, and there was nothing that could indicate even a slight change in those trends. Austin also has a score of 108.9 in the category of employment, which is far above the benchmark.

The city’s score in the category of purchase application is 71.3, which is considered weak since it is below the set benchmark of 80. This is an indicator of insufficient inventory for potential consumers, particularly in the price range of their financial capability. The Austin Board of Realtors has criticized Austin’s affordability due to an escalation in prices

december 2015

of the median and average homes without a corresponding increment in household incomes.

Freddie Mac surveyed one hundred metro areas for the Multi-Indictor Market Index survey, but only forty-seven yielded positive results. Some of the top cities ranked in the stable range other than Fresno and Austin were Honolulu, Los Angeles, and Salt Lake (Freddiemac.com, 2015).

In June 2006, Austin composite national score was at its apex. During this period, its highest values were recorded after which it experienced a tremendous mortgage meltdown. Recently conducted research indicates that the city has fully recovered. Multiple Listing Service reports that are broadcasted nationally by the Austin Board of Realtors Indicted that Austinarea single-family home sales and prices skyrocketed in September 2015.

After a thorough analysis of single-family homes in Austin, the board gave a comparison of September 2015 statistics with what had been recorded in September 2014 statistics.

The statistics indicated that median price was $258,000 after experiencing an increase of eight percent, while home sales increased by seven percent closing at 2,603. The average price for single-family homes also established a five percent increment settling at $324,150.

Active listings also increased by four percent settling at 6,759 listing while new listing established an increment of eleven percent settling at 2,860 listings. Pending single-family home sales increased by nine percent settling at 2,391. The days spent by a single-family home on the market increased from an average of 44 to 47days.

The Power Is Now MAGAZINE | 24

REAL ESTATE

The expansion of the commercial real estate market, particularly in urban areas, is exciting. It shows promise for continued economic growth.

According to the statistics, monthly housing inventory did not change over the period compared to 2.8 months recorded on September 2014. Since the Real Estate Center at Texas A&M University considers 6.5 months as the balanced housing inventory level, we can conclude that housing inventory stands at less than half the benchmark. Total USD volume of single-family properties sold was $843,762,450 after establishing an increase of 13%.

Austin’s real estate market trends in other sectors indicated that the number of condominiums (condos) sold in 2015 was 269, translating to an eleven percent increase from September 2014. Condos established a median of $220,250 with an increase of eight percent from September 2014. These properties did not record any change in the average number of days they spent in the market compared to forty days recorded in September 2014. These positive trends in Austin’s real estate sector show how the area is recovering from the 2008 mortgage crash.

of thirty-eight days on the market, or two days fewer than in September 2014. Active leasing properties listing increased by four percent compared to September 2014, settling at 1,937 listings (The Austin Board of REALTORS®, 2015).

It is crystal clear that Austin is a real estate gold mine. It is among the best regions to settle or invest in the real estate within the U.S. The steady appreciation of residential properties is a guarantee of tremendous inflow of benefits in future. The statistics clearly shows how homes are likely to appreciate at a considerable rate. This is a favorable market for both the realtors and homebuyer, so get out and look at Austin, Texas.

References

• Freddiemac.com,. (2015). Freddie Mac MiMi -- Metro. Retrieved 4 November 2015, from http://www.freddiemac.com/mimi/metro.html • Griffith, A., Griffith, M., & Stern, K. (2006). 50 fabulous places to retire in America. Franklin Lakes, NJ: Career Press.

• Stephen R. Higley, P. (2015). The 2010 Higley 1000 | The Higley 1000. Higley1000. com.

Retrieved 4 November 2015, from http://higley1000.com/archives/638 A total of 1,593 properties were leased in Austin • The Austin Board of REALTORS®,. (2015). in September 2015. This was after an increment September 2015 Market Report. Retrieved 4 of fifteen from the value recorded in September November 2015, from https://www.abor.com/ statssep15/ 2014. Properties to be leased spent an average

The Power Is Now MAGAZINE | 25

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Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

REAL ESTATE

APPRECIATION: What Can You Expect From Your Home?

I

n whatever context the word “appreciation” is used, it has a positive connotation.

Appreciation is the rate of increment in a home’s value over time depending on the local real estate market and any iconic improvements undertaken to the home’s physical structure. The overall appreciation can be computed based on the prevailing fair market value of comparable homes listed for sale in the same neighborhood.

Tracking the yearly home appreciation value is the main determinant of how efficiently the home’s appraisal value can be increased.

Most first-time homeowners and real estate brokers fail to consider location when selecting the property that will be associated with remarkable performance. It is unfortunate that they focus on trivial factors such as style and functionality of the proposed asset. These characteristics make them over ambitious as they anxiously wait for a tremendous boom in the property value.

The home’s physical structure is subject to depreciation over time. In reality, no structure can have an infinite lifespan. Given the length of the physical structure’s useful life, we can

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comfortably compute the rate of depreciation per year. This depreciation will represent the structure’s annual loss of value. At the end of the useful life, the structure might be rendered uninhabitable.

The land underneath the home structure is the key accelerator of home appreciation.

Naturally, land does not depreciate unless there is the occurrence of land degradation due to extreme soil erosion, mining, or land subsidence. Although natural calamities can also affect the value of land negatively, most real estate investors tend to ignore these factors.

They assume that the effect of these calamities can be mitigated. For safety precautions, all the factors that can deplete the value of land should be considered before massively investing in real estate. Since buying a home is one of the greatest lifetime investments that most small scale or retail investors plan to make, it is important to draw distinctions between the home structures and the land on which it sits. Failure to keenly look at a home as a potential investment and comprehend the various drivers of value will automatically limit the overall performance of the property. On the other hand, concentrating

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REAL ESTATE

on the accommodation and functionality can also act as a barrier to the goal of wealth maximization (Coate & Vanderhoff, 1993).

The main goal of homebuyers is to find the most efficient investment that will provide the highest return for the amount of capital invested and for a given level of risk. Since the price of properties is determined by forces of demand and supply, the functionality, maintenance, and appearance of the home physical structure will affect value, but the effect is insignificant. When investors are making choices between highly competing assets, they should understand that location and the expected future prospects of land values determine property returns.

The land is limited in supply since it occurs naturally and no one can create artificial land.

This is the main reason that it appreciates constantly. Land scarcity in one region triggers appreciation. The region with a large portion of unoccupied land might appreciate at a low pace. Property demand increases with rapid growth in population. Since the property’s physical structure is a depreciating asset, it requires extensive capital infusion for general maintenance and updating to stem physical obsolescence. Failure to undertake these improvements can degrade the overall property’s value. The Internal Revenue Service (IRS) allows a capital deduction against the cost of the home physical structure when preparing returns as an acknowledgment of loss of value; however, the land underneath the home does not depreciated (Zeller, 2011).

When a portion of land with inferior physical structures is compared with other real estate properties, it will be worth more unimproved.

The investors might raze the home physical

structure if such an action maximizes the value of the land underneath. The aim of capital commitment to update homes is to counteract the physical obsolescence that reduces the value of the capital intensive structure. Frequent positive changes in the properties will lead to an appreciation of nearby real estate. Real estate appreciates more in neighborhoods that undergo intensive improvement, and neighborhoods that do not experience improvement are associated with a lower rate of appreciation.

The location of a property is one of key factor to consider when acquiring a home. A property located on the outer fringes of a major city will appreciate at a high rate due to overpricing of properties in that city. Properties located far away from the city might experience little or no effect (Kim, 2000). This is important to keep in mind when looking for a home or investment opportunity. Choosing a home close, but not within the city could spur appreciation.

Availability for a catalyst such as infrastructural development triggers property appreciation. Areas with rapid establishment of schools, hospitals, shopping centers, and road construction are considered up-coming.

Homebuyers are attracted to such aresa leading to property appreciation. Regions that lack such catalysts appreciate at a low rate.

A region with high property taxes has a lower property demand than a region with a low property tax. Most property developers tend to invest in the region with low taxes, because the capital gains in such areas are taxfree. Consequently, properties in those areas appreciate at a higher rate due to increased demand.

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REAL ESTATE

Properties bordering top ranked school are desirable to most parents. The high demand for such properties increases their appreciation rate.

Properties neighboring schools that rank lowest will experience a low rate of appreciation.

Parents want the best opportunities for their children, which involves a premium education.

Keep this in mind if you are catering to family buyers and you will be able to boost your prices as the property appreciates.

Life changes after retirement. A well-informed person understands the need to spend money wisely during this period. Although working out a budget may sound boring or daunting, understanding source and application of the little available cash makes retirees comfortable when making retirement decisions. Retirees require 75% to 80% of their basic preretirement income to live comfortably after retirement.

For a basic standard of living after retirement, approximate how much you need to spend on a yearly basis including insurance, vocational and tax bills. A reliable figure can be computed by making an adjustment to the current earning.

Deduct contribution to retirement savings schemes since you will not be saving anymore.

Also deduct payroll tax and determine new income tax level. If you are moving to your newly bought house, deduct rental and other related costs. You will be required to add travel costs if you intend to travel the world although commuting cost might reduce significantly.

Remember to also factor in the amount you intend to spend on your kids bearing in mind that this figure is subject to changes due to the occurrence of unseen factors. These adjustments should reduce living cost significantly by forty percent on average. Finally, observe your health insurance options to determine whether you are fully covered; if not, factor in health

december 2015

care expenses. Conduct a realistic evaluation of your health to determine a rough estimate.

Remember to boot your retirement benefits by deferring your state pension to a later date since this can prevent the adverse effect of inflation on your life after retirement.

Just remember, if you chose a home to invest in that is prone to appreciation, then you will have that near the end of your time in the home.

Once you sell your home you should be able to recoup your investment and more for your family. This will help increase your monthly income and assist with any medical bills that tend to pile up during retirement.

References • Case, B., & Wachter, S. M. (2011). Inflation and real estate investments. U of Penn, Inst for Law and Econ Research Paper, (11-33).

• Coate, D., & Vanderhoff, J. (1993). Race of the homeowner and appreciation of single-family homes in the United States. The Journal of Real Estate Finance & Economics, 7(3), 205-212.

• Kim, S. (2000). Race and home price appreciation in urban neighborhoods: Evidence from Milwaukee, Wisconsin. The Review of Black Political Economy, 28(2), 9-28.

• Zeller, D. (2011). Success as a Real Estate Realtor For Dummies. Hoboken: John Wiley & Sons, Inc.

The Power Is Now MAGAZINE | 30

by Eric Lawrence Frazier MBA CA BRE: 1980407 NMLS: 1435243

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• Offered by Frazier, Eric, Lawrence Brokerage CA NMLS 1273606 • First Time Homebuyers • Investors & Builders • Government Loans • Jumbo Loan • None-Prime • Private Equity Loans • Commercial Loans • Loans for Churches and Nonprofits.

• www.applytobuynow.com

• Consumer Education • Real Estate Agent training & Education • Real Estate Advertising • Technology Education • Interviews with Industry Leaders • Interviews with Top Real Estate Agents

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Eric Lawrence Frazier MBA CA BRE: 01143484 | NMLS 461807 The Power Is Now Inc. CA BRE: 1980407 | NMLS 1435243 Website: www.thepowerisnow.com

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Email: eric.Frazier@thepowerisnow.com Skype: Frazier.Eric Video Chat: https://zoom.us/j/5443077305 Mobile: 714-361-2105 | Office: 800-401-8994 ext. 703 Fax: 800-401-8994

Our Cover

OUR COVER

Car men Chong

Carmen Chong is the 2015 National Past Chairwoman of the Asian Real Estate Association of America. She is also the President and broker of CC Legacy Financial with over twentyfive years of experience between real estate and finance. Carmen turned to the community and received her health and life insurance license to give the community her full service.

From her roots in Nicaragua, Carmen learned about the importance of financial literacy and security. She is now working, through CC Legacy and AREAA, to improve the financial literacy and security throughout the United States. To accomplish this Carmen points towards homeownership to begin to build wealth as well as assets as well as financial security. This fantastic woman is investing her life to better the lives of others around her and helping people entrenched in poverty achieve the American Dream.

In addition being an extremely successful leader and broker, Carmen Chong has two beautiful daughters, Brittany and Sydney. After being a single mother and raising her children, Carmen has educated her daughters in the ways of the personal and business world to give her children a better life.

Working arduously for her children, Carmen Chong is an inspiration to all parents out there and The Power Is Now

salutes her hard work and dedication to her family. Her wish for her girls is that they have the opportunity to choose their career paths to fit their individual desires instead of a money and job availability based choice that Carmen had to make after she immigrated into the United States.

Carmen immigrated to the United States after the Civil War broke out in Nicaragua. Taken in by her godmother and her brother, Carmen made her way by being independent and blossoming into adulthood at the tender age of sixteen. This is a woman who has made a leap of faith to embrace a new life at such a young age to accountancy.

From accountancy, Carmen Chong was introduced to real estate by a friend who coerced her into the mortgage industry.

She took the chance to interview and was hired because of her ability to speak Spanish, English, and Cantonese. The mortgage company needed someone who could speak to Hispanic and Chinese clients, which shows just how global the real estate career path is.

As is tradition on The Power Is Now Radio, we asked Carmen Chong what the phrase, “the power is now” means to her. She believes that “the power is now” is a fantastic phrase that has so many diverse meanings depending on the context. “The power is now” means to take control of your life in the

The Power Is Now MAGAZINE | 33

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OUR COVER

with the local chapters. By emphasizing community outreach, Carmen feels that AREAA is only being strengthened. AREAA is also communicating with other non-profits to better AREAA as a group.

Carmen is looking forward to assisting AREAA in moving forward and planning for the future with the initiatives that she has started. While she is glad that her travel time is now not as extensive, Carmen cannot wait to assist in every aspect of AREAA. moment and put it in perspective with what your end goal is, whether it is in your career or in your investments. You must be the power and to act now. Avoid procrastination and you must do everything today because there may not be a tomorrow. Sometimes life happens and you need to be prepared. You can never take anything for granted.

In her professional life as a real estate, lending, and insurance professional, Carmen Chong is managing on the real estate side as a broker after she consolidated her business with three real estate agents. Carmen also decided to offer life insurance and financial services in order to open this industry up for her customers. To become the best of the best, Carmen integrated all of her financial services to complete the full cycle of life. It just goes to show how well real estate and financial services can integrate and become one in order to ensure that homeowners are fully insured. Carmen emphasizes that you need to act now and invest in this new life insurance. Her life insurance policy allows the buyer to utilize their life insurance without needing to pass away.

In this case, if you are struck with a disaster that does not kill you, then you can use up to 900,000 dollars worth of insurance money or leave it to your beneficiaries. This life insurance policy takes care of you as well as your entire family. It seems like a fantasy, but it is not. Tune in to The Power Is Now Radio to hear more!

The Power Is Now also asked Carmen Chong to elaborate on her election to the position of Chairwoman to AREAA. She was ecstatic that she was able to serve an extra month within her position, and she is happy to continue to serve AREAA and the community in any way that she can. She is AREAA for life, serving and giving herself to the community and to her chapter presidents in AREAA. Carmen has dedicated multitudes of time and energy with AREAA and feels blessed to have been connected with such a family organization. She was inspired through AREAA to inspire others and to have a passion for what she does. Through joining this organization, Carmen Chong knows that even though AREAA is a serious commitment, it is The Power Is Now is so thankful to have had extremely rewarding.

Carmen Chong on the air. She is a hard working woman that truly understands the value of Carmen’s most memorable experience was when hard work and tenacity. AREAA is a lucky she started the community outreach initiative organization to have such a dedicated member. to meet the 13,000 members and communicate

december 2015

The Power Is Now MAGAZINE | 34

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* Restrictions may apply.

Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

SBA LOANS Now More Readily Available to Borrowers

T

he Small Business Administration (SBA) loan is a program designed to help entrepreneurs improve their business entities, take advantage of the prevailing opportunities, and gain access to financial aid in the form of small business loans. The SBA loan, or Certified Development program, is managed by a federal agency known as the U.S. Small Business Administration. SBA, which was established in 1953, is mandated to aid, counsel, and protect the interests of small businesses. Its main duty includes financing small scale traders for the acquisition of fixed assets such as building, machinery, and real estate. It offers different types of loan programs depending on the financial needs of individual business owners. Since its mission is to boost the growth and development of businesses, SBA distributes loans at discounted rates.

The program requires the loan to be distributed among three parties. The entrepreneur is bound to contribute ten percent; a conventional lender (financial institution) contributes fifty percent while the remaining percentage of forty percent is contributed by the Certified Development Company (CDC). CDCs are nonprofit corporations established under the 504 code to promote economic growth (Green, 2010).

Before entrepreneurs qualify for the program, they are required to meet the SBA’s definition of a small business and must be willing to utilize more than fifty-one percent of the asset’s usage towards its operations within the first year of ownership. If the asset is a newly constructed building, the entrepreneur must use sixty percent at once and be willing to occupy eighty percent.

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The entrepreneur may form a real estate holding company that lease the entire operating business, which then subleases any unused space as long as it is below fifty percent. U.S. residents must hold a majority of ownership of the holding company and the operating companies. As of 2009, the SBA loan is not subject to any ceiling although there are three main criteria for

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LEGAL

from which you can choose:

Implementation of SBA loans has a positive effect on the economy and individuals. The SBA’s main objective is to promote access to credit and offer assistance when disaster strikes or the general credit market freezes. eligibility. The first one dictates that the company’s net income for the preceding two years cannot surpass five million.

Secondly, the company should not have a tangible net worth that exceeds fifteen million.

Lastly, the anticipated project size must exceed the personal, non-retirement, unencumbered liquid asset of the principals or guarantors. The SBA might request significant documentation to analyze the borrower’s credit worthiness and decline to issue the loan if it is poor.

with credit providers. The borrower gets an SBA loan from a financial institution that participates in SBA financing.

Since, the SBA guarantees a percentage of these loans, the lender has more incentives to lend fund to small scale enterprises (Tyson & Schell, 2012). This guarantee increases the banks willingness to lend funds regardless of borrower’s credit criteria; although it does not prevent a thorough review of their credit worthiness. Even with the SBA’s guarantee, some small enterprises might not qualify for SBA loan. The bank lends to applicants with, a solid business plan, good credit worthiness, and collateral. The borrower must also have a demonstrated ability to pay the loan.

Implementation of SBA loans has a positive effect on the economy and individuals. The SBA’s main objective is to promote access to credit and offer assistance when disaster strikes or the general credit market freezes. It facilitates When applying for the SBA liquidity in the marketplace by loan, you are provided with connecting small businesses various SBA loan programs

The Power Is Now MAGAZINE | 37

7(a) Loan Program is a very important SBA loan, which is used to finance a variety of general business purposes.

A guaranty fee is included in the total cost of obtaining the loan. The lender bears the responsibility of paying the guaranty fee but can pass it on to the borrower. The fees range from 0% to 3.5% on loans depending on the amount borrowed. An additional fee of 0.25% on any guaranteed portion that exceeds one million. The loan’s terms of payment are very favorable as the borrower can either choose variable or fixed interest rate arrangement. The maximum rate is composed of an allowable spread and a base rate. When calculating the final rate, lenders add extra spread to the given base rate. The maximum spread for loans with a maturity period that falls below seven years does not exceed 2.25%. A loan with high maturity periods is associated with a maximum spread of around 2.75%, and the repayment of the loan is done on a monthly basis until maturity. The maturity period for a loan granted to acquire real estate, equipment, and working capital are twenty-five, ten and seven years respectively (Green, 2010).

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The CDC, or 504 Loan Program, is also an SBA loan. It is often used to finance the acquisition of major fixed assets such as real estate and equipment.

A fee of around three percent of the debenture is charged, which can be financed with the loan. Interest rates on CDC loans are pegged to an increment above the prevailing five-year and tenyear U.S. Treasury issues’ market rate. It has maturity term of either ten or twenty years (Vance, 2005).

SBA Microloan Program is a short-term loan disseminated through small business concerns such as not-for-profit child care centers. It is not associated with any fee. Its interest range lies between eight percent and thirteen percent and has a maturity period of six years. The terms of an SBA microloan’s repayment vary depending on the amount borrowed and the use of the loan, among other factors. This loan is issued to finance the purchase of machinery, office furniture, supplies, and inventory. They are limited to $25,000 and can be used to boost working capital.

The CAP Lines program is a vital SBA loan limited to $750,000 that replaced the Green Line program. It is issued to meet the cyclical working capital and short-term needs of a small business.

There are several types of loans available under this program.

SBA is focused on implementation of various online programs in an attempt to facilitate accessibility to SBA loans. as real estate, small businesses entities, and individual Americans accelerate the revitalization of communities, job growth, and stabilization of the economy. The growth of the country’s economy depends on the availability of funds and technological know-how to start and manage business entities. SBA plays a key role in the provision of the required funds and technological awareness. SBA loan programs offer a solution to capital limitation faced by commercial real estate investors. The SBA provides counseling and training services to individuals through various programs such as Small Business Development Centers, Business Information Centers (BICs) and Business Information Centers (BICs).

SBA is focused on implementation of various online programs in an attempt to facilitate accessibility to SBA loans. One of the programs is the introduction of electronic filings to reduce application processing time. This will save hours of paperwork filing time to get your money First is the SBA Express program, which where it needs to be. is designed to boost the capital available to entrepreneurs seeking to borrow up to $150,000. The second program is known as SBA’s LINC It is classified under the pilot program, and the program, which is an online platform used number of participating lenders is limited. to link small businesses with SBA lenders.

It is crystal clear that these programs will be Availability of credit to various sectors such successful, because they create a platform that

december 2015

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enables easy access to SBA’s services. SBA is also coming up with other programs that seek to aid entrepreneurs in various areas In short, SBA programs act as such as the following: international vehicles for economic growth. It expansion and development, lending and investment, disaster acknowledges that properties are assistance, federal procurement contracts, surety bonds, veteran’s scarce assets whose future market assistance, minority small cannot be predicted with certainty. business assistance, business and training, business information, counseling, and research and In short, SBA programs act as vehicles for development. These unique programs are economic growth. It acknowledges that tailored to eliminate barriers to the industrial properties are scarce assets whose future market revolution, economic growth, and stabilization cannot be predicted with certainty. It is thus of real estate market to ensure a productive advantageous to buy properties at the current environment for businesses. The SBA is viewed market price before the occurrence of price as the main provider of advocacy services to escalation. SBA programs fulfill people’s need American small businesses in government. to own properties and invest, regardless of their capital limitations through the issuance of Most entrepreneurs do not make use of SBA favorable loans. SBA loans are associated with loans due to ignorance or lack of awareness. SBA lower down payment and longer repayment loans provided one in ten realtors with funds to terms compared to conventional bank loans for purchase commercial real estate in 2014. Twelve this reason. Most for-profit small businesses are percent of realtors utilized the SBA for resources eligible for SBA loans and are not chargeable to other than loans. The research also indicated that balloon payments. Realtors and other American around eighty percent of these firms had a single investors wishing to acquire real estate should office and two full-time real estate licensees. Most not hesitate in taking advantages of SBA loans. real estate firms with a single office had a median Just be sure to always do your research and take brokerage sales volume of approximately $4.1 a careful look at your finances. million in 2014. It was depicted that five percent of realtors who utilized SBA loan program had applied for the disaster loan. Most commercial realtors were optimistic about the future of their industry. Seventy-five percent of the individuals surveyed expected their profitability to improve over the next year (NAR, 2015). Despite the fact that since they operate as small business owners, it is evident that SBA loans are vital to realtors because they operate as small business owners.

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Find joy in owning YOUR OWN home Why Buy? Have you ever thought about what it must

feel like to own the roof over your head?

To be able to do what you want, when you want - to YOUR home?

With the recent decrease in FHA mortgage insurance premiums, homeowners are saving hundreds a year on their mortgage.

Furthermore, considering the numerous Down Payment Assistance Programs available and that California median home prices have fallen more than 40% since 2008, affordability is the best it has been in 20 years.

For many people, buying a home is the biggest and most fullling purchase they will make in their life. Because you aren’t just buying a house when you buy a home, you’re starting a new life. And right now it’s easier than ever to do just that.

Right now really is the best time to own a home. So take full advantage and live the dream of homeownership for yourself today!

Name: Eric Lawrence Frazier MBA

CA BRE #01143484 | NMLS # 461807

Website: www.applytobuynow.com E-mail: eric.frazier@ericfrazier.com NEW! Skype: frazier.eric FREE mortgage app Mobile: 714-475-8629 for your cell phone!

O: 800-261-1634 x 703 Click Here F: 800-261-1634 Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

GOOD NEWS!

FHA Back to Work Program!

Our company is proud to participate in the FHA’s Back to Work Program. This program is designed to help buyers who have lost their homes as the result of an economic event.

Using this program, you can reduce the bankruptcy, foreclosure, short sale and deed in lieu of foreclosure seasoning requirements to as little as 1 year!

PROGRAM BASICS • Buyer must have experienced an economic even, defined as:

- Loss of employment

- Drop in household income of 20% or more lasting 6 months or longer.

• Purchase Loans only • Demonstrate full recovery from the event, including re-established credit for the most recent 12 months.

• Completion of housing counseling through a HUD-approved counseling agency

Call me for details: Name: Eric Lawrence Frazier MBA CA BRE # 01143484 | NMLS # 461807 Website: www.ericfrazier.com E-mail: eric.frazier@ericfrazier.com Skype: frazier.eric Mobile: 714-475-8629 O: 800-261-1634 x 703 F: 800-261-1634

NEW!

FREE mortgage app for your cell phone!

Click Here

Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

REAL ESTATE

WALMART’S EARNINGS HAVE REAL ESTATE INVESTORS ON EDGE, PREPARING FOR FUTURE

A

ugust is most revered for its sunny weather, beach days, and ice cream cones. It is a time when business slows down, cookouts shift in to high-gear, and families take off for one last hoorah before the beginning to the new school year. Yet while most were enjoying the summer’s final heat wave, investors and finance brokers were breaking a sweat for a different reason: international stock markets began to tumble.

The outlook appeared somewhat brighter heading in to October, as the stock market slowly began to recover. Then, on October 14th, 2015 Walmart’s stocks plummeted ten percent in just one day, falling to $60.03 (The Associated Press, 2015).

It was the retailer’s worst oneday decline since in almost three decades. The sell-off erased nearly $22 billion in the company’s market value. Even more worrisome, this drop came at a time when Walmart’s stocks were already down twenty-two Indexes in the United States percent since the beginning of fared somewhat better, but that the year. provided little reassurance to those who feared the country was Walmart CEO Doug McMillon headed in to a global recession. tried to allay investors’ concerns Q3 closed out as the worst by explaining what had happened quarter for stocks in four years. (Seeking Alpha, 2015). First, december 2015

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McMillon acknowledged that the company had cut costs too hard, too fast, in the United States and it resulted in unmotivated employees and a soured the public’s perception about the company. Moving forward, the company is doubling down by investing in its employees.

Second, and perhaps most importantly, the retailer is facing increased competition from online retailers such as Amazon.

In an effort to better compete, Walmart is heavily investing in its Ecommerce operations.

“Today, we’re older than fifty and we’ve become large and if you study retail history you know that retailers come and go and we’re going to defy that historic cycle that retailers go

REAL ESTATE

through by being thoughtful enough about how we position ourselves for the future,” McMillon told investors. “We’re going to invest a bit less than we would have in stores. We’re going to invest more in Ecommerce.”

Investing in Ecommerce, however, will take a heavy toll on revenue for the next few years, McMillon acknowledged. “You want growth and returns. So do we. But for now, growth is our focus. Our core business will continue to have great returns and we believe the investments that we’re making in Ecommerce will help our returns over the long term.” In the meantime, McMillon told company shareholders to expect online sales to remain in the red through 2019 until digital sales reach economies of scale. The investment in Ecommerce led the company to forecast a drop of up to twelve percent in earnings per share in fiscal year 2017.

good to be true, some feared.

By the end of the day on October 14th, the Dow Jones Industrial Average had dropped by almost percent percent (157 points), S&P 500 lost 0.47 percent and the Nasdaq was down 0.29 percent.

It would be convenient to point to shaky global markets as a reason for the U.S. stock market’s reaction. But worries about the health of worldwide economy are overdone, says Michael Scanlon, managing director and portfolio manager at John Hancock Asset Management, and does not paint an accurate picture about what’s happening nationally. “The U.S. is in pretty good shape,” Scanlon says. “You can overreact and take a view on every economic data point that we get, but that’s probably not in your best interest” (Associated Press, 2015).

Instead, the lag in Walmart’s earnings is concerning because it reaffirms the fact that consumer spending has slowed. In September, spending and income were only up 0.1 percent and wages had actually fallen. Though stocks had an impressive 9 percent rebound by the end of October, consumer companies lagged.

Analysts were quick to point out that despite the decline, Walmart is still expected to grow revenues by three to four percent over the next three years; the company is planning to repurchase $20 billion in shares over the next two years. We cannot forget that Walmart has 40+ years of consecutive dividend increases and is still producing a 3.3% dividend yield despite the stock’s recent dip What Does This Mean for the Real Estate (Walmart Annual Report, 2015).

Industry?

Despite Walmart’s attempt to spin the story into a positive one, Wall Street was spooked. The news came on the same day as JPMorgan’s third quarter earnings fell short of expectations and on a day where the Federal Reserve Bank released a report indicating that factory output remains sluggish. Another report on retail sales found that Americans are still spending cautiously (Associated Press, 2015). Perhaps the stock market’s uptick in early October was just too

Consumer spending is indicative of consumers’ confidence in the economy. If people feel confident about the economy, their jobs, income-earning potential, etc., they are willing to spend more.

They are especially likely to make big purchases, such as houses. When the stock market retreats, it has a psychological impact that can make people less likely to invest in real estate.

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REAL ESTATE

Similarly, concerns about the economy can affect lending practices. Banks are less likely to give mortgages if they are worried about a person’s ability to repay that loan. Credit requirements tighten, such as requiring people to put down larger down payments so that if a person defaults on the loan, the bank will not be too highly leveraged. Yet not everyone will be able to afford a larger down payment. People often liquidate their stock portfolios or tap into retirement accounts for down payments; however, when the stock market slows, less cash is available in these accounts. Buyers may be forced to defer their purchases until the stock market improves— thereby slowing real estate activity.

Think carefully before investing in real estate where housing prices are over-inflated. Look back to 2004 and 2005, thousands of people purchased homes at exorbitantly high prices and found themselves underwater or in foreclosure just a few years later after the market crashed and stabilized prices. Analysts say that it is still better to rent than buy in cities like Honolulu, New York, and San Jose where median home prices are at record highs (Florida, 2015).

In many ways, buying real estate can help investors to diversify their portfolios. Look to invest in real estate that has positive cash flow so that the real estate portion of your portfolio continues to perform despite changes in the stock market.

Walmart’s earnings and stock market’s ups and downs may have investors on edge. At the same time, it is not a time to over-react. Instead, those in the real estate industry should take small, proactive steps now to insulate themselves (and their investments) from a market slowdown in the future.

Finally, those who currently own real estate should look to refinance while rates are still at historic lows. As noted above, if the stock market and broader U.S. economy cools, it will become harder to access credit. Refinancing now How Should Real Estate Professionals will result in lower mortgage payments, thereby Prepare for a Potential Slow Down? providing an additional buffer in a weak economy.

References • The Associated Press. “Market Drops on Weak Results from Walmart and Big Banks,” The New York Times. 14 October 2015. http://www.nytimes.com/2015/10/15/business/daily-stock-market-activity. html?ref=business&_r=0.

• Davis, Lisa. “Is China’s Falling Stock Market Good for American Home Buyers?,” Realtor.com.

24 August 2015. http://www.realtor.com/news/trends/chinese-stock-market-effect-on-american-realestate-market.

• Florida, Richard and Aria Bendix. “Where Should Millennials Rent or Buy in the U.S.?,” CityLab. 22 October 2015. http://www.citylab.com/housing/2015/10/where-should-millennials-rent-or-buy-inthe-us/411841/.

• Seeking Alpha, “Analyzing Wal-Mart’s Recent Stock Price Decline.” 16 October 2015. http:// seekingalpha.com/article/3577386-analyzing-wal-marts-recent-stock-price-decline?page=2 • Walmart Annual Report 2015, Wal-Mart Stores, Inc. http://s2.q4cdn.com/056532643/files/doc_ financials/2015/annual/2015-annual-report.pdf

december 2015

The Power Is Now MAGAZINE | 44

HOMEPOSSIBLE

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Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

DESIGN

OPEN CONCEPT,

HIGH VALUE The term “open concept” is a generic term used in interior design and architectural work for any floor layout or plan.

As you draft the architectural design of your new home, one of the vital decisions is selecting the floor plan.

The flow from one room to another, the arrangement of rooms, and proper utilization of space helps determine the comfort of your new home.

The value of your home is, to

a greater extent, determined by nature of the home’s physical structure. Property developers have acknowledged the vital role played by floor plans in the determination of property’s returns and marketability, and that is why real estate developers create a wellfurnished home using a unique floor layout that homebuyers can walk through, to view the beauty of the new home before purchase.

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When constructing a home in the U.S, or any other country in the global world, there are two main home concept designs from which you can choose.

An open concept home is the first design. It entails making use of large, open spaces and minimizing the usage of small, enclosed rooms. It is the most spectacular design for the modern home. It is more modern and is becoming increasingly popular in the

DESIGN

U.S. and its neighboring countries.

Traditional homes can be transformed to open concept homes by eliminating barriers such as walls and doors that separate distinct functional spaces, such as dining rooms, living rooms, and kitchens.

Although home renovation might be frustrating, the benefits resulting from transitioning homes from closed concept design to innovative open concept plan outweigh the inconvenience. The main apprehension of transitioning to open concept is the limitation of speech privacy.

Confidential information in an open concept home can be protected by installing an electronic system known as speech privacy system or noise masking system. It is effective in improving speech privacy and masking irritating noises in an open set up home. This white noise system creates a more pleasant environment within the homestead (Ballou, 2013).

Adopting open concept layout leads to the creation of a large and wellilluminated space of natural sunlight to permeate throughout the home. The presence of many walls on the main floor renders the interior rooms dark and unappealing. Adopting an open concept design when constructing or renovating your how permits natural sunlight and fresh to reach every space on the main floor, illuminating the entire section.

An open concept layout also creates a large and spacious structure. With closed concept design or layout, spaces seem cramped and stuffy. Your flexibility is limited by the irregular arrangement of furniture, some of which are bound by the doorways and walls. Adopting open concept layout leads to the creation of a large and wellilluminated space (Cieraad, 2006).

A closed concept is the second design. This design is more formal or traditional and constitutes walls that delineate the use of spaces. Each space is treated as a separate section. Subdivided rooms and sections such as the entryway, kitchen/ kitchenette, dining room, and living room will be distinctively identified (Matesz, 2010). This set up will make your home feel smaller than an open concept, and it will make chasing after children or pets even more difficult.

An open concept design drastically revolutionizes the dynamics of the home. It is a preferable layout for homeowners who hold parties on a regular basis, because it facilitates communication between people. Individuals, who spend prolonged hours in their kitchenette whipping up sumptuous meals for the guests, will not be cut off from the party’s proceedings.

They can entertain the guests by participating in conversations. The frequent intermingling not only enhances the flow of information, but it The open concept home has minimal walls also inculcates a sense of camaraderie among the making space appear large and open. Its high family members and guests. This home concept rate of adoption by most new and existing is very effective in promoting socialization. homeowners is triggered by various factors as stipulated below.

Open concept home plan enables parents to monitor their kid’s movement keenly as An open concept home is associated with mentioned before. With the closed concept plan, an impeccable view. Since walls are made it poses a challenge to multitask. of opaque materials, they block the ability

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DESIGN

It will be hectic to season the potatoes, stir the sauce, watch your favorite TV show, and monitor the kid’s movement at the same time. Adopting the open concept enables parents to keep an eye on the kids while they are performing their daily kitchen chores.

Adopting an open floor plan adds value to the non-depreciable land that is underneath

investing in places that are functional, pleasing, Open concept home set-up facilitates showing and economical. the kitchen off to visitors. Most people get positive compliments from their visiting friends Homes with an open floor plan are the most regarding the beauty of their kitchenette. Whether economical and are worth buying or building. you have recently bought dazzling kitchen Their layout is more than physical structure; addition or renovated the entire kitchen, there it is a home philosophy and commitment to is something unique about the array of items. A collaboration and openness. There are easy-toclosed kitchen makes the guest feel snoopy as access designated areas such as the study area, they try to sneak a peek at the enclosed cooking living room, island kitchenette, and spacious informal dining area. All these spaces are well area. illuminated and have fresh air. An open floor Open concept homes can benefit the owner plan is the ideal design for homes with extremely economically due to the reduction in costs tied limited space. If the floor plan needs to be up to furniture, construction, and utilities. These changed, it can be done easily and with minimal homes require fewer walls, which reduces the cost. On the other hand, it is hectic to change raw materials and time needed. They have a the layout of a closed floor plan. This remodel minimal running cost since cooling, heating, and can make use of every available cranny, nook lighting can be centrally done. This is opposed or attic in the home. The spaces left underneath to the closed home concept, which requires a the staircase integrate a reading nook or storage separate heating, cooling or air conditioning area. mechanism for each room.

Adopting an open floor plan adds value to the non-depreciable land that is underneath (McLeary, 1999). It also catalyzes increment in real estate prices, which leads to the emergence of high-value property and stable real estate market. Since this physical structure is a depreciating asset, failure to adopt the most appealing floor plan can negatively affect the value of your home. Due to their appealing look and benefits, open concept homes will continue to be demanded. Homebuyers have a tendency of

december 2015

Open concept home makes up the bestselling plans in the global world. The open concept design is the driver of value in real estate industry.

From our observations, modern trends on real estate market indicate that most homes contain open-concept magnificent rooms. Each space is exclusively defined, although you are not walled in, by any stretch of the imagination. It is crystal clear in this research work that price escalation for homes can be driven by an impeccable floor plan. Open concept floor plan is the best value driver for real estate.

The Power Is Now MAGAZINE | 48

YOU

BUILDING LASTING RELATIONSHIPS

T

he National Association of Women in Real Estate Businesses (NAWRB) considers it essential for women to build lasting relationships with one another. We believe in Madeleine’s Albright’s words, “There is a special place in hell for women who don’t help other women.” A symbiotic relationship is beneficial for the women involved, their businesses and the industry. Women face unique obstacles when compared to men in similar fields and it is pivotal that we take the initiative to help each other.

in the C-Suites or Vice Presidential positions of America. NAWRB’s Diversity and Inclusion Leadership Council (NDLIC) is dedicated to bringing women’s D&I to the forefront of the housing economy with accountability and results.

Comprised of senior level women executives from several industries, the NDILC is focused on bringing much needed gender equilibrium to the currently imbalanced business field. In order to promote the equal treatment and consideration of women, NDILC is urging all financial institutions, servicing companies, secondary mortgage A person’s culture plays a key role in their markets and associated real estate services to life and as women in the business realm, it is increase their diversity efforts. imperative that we create a strong women’s culture; a culture in which women from all over By building strong advocacy relationships with the world can participate. It would be extremely organizations like the Office(s) of Minority useful to have a common pool for women to share and Women Inclusion (OMWIs), Government their experiences, impart knowledge and build an Sponsored Enterprises (GSEs), the Small unswerving foundation. This unity could help Business Administration (SBA) and the National eliminate some of the barriers that have prevented Women’s Business Council (NWBC), NAWRB women from participating and achieving success is cultivating the women’s culture. in the professional world.

Through our international publication NAWRB In a recent study, Ernst & Young (EY) and Babson Magazine, we raise awareness of our innovative College report that women in the U.S. are starting work and initiatives. Covering housing’s prevalent businesses at 1.5 times the rate of men. The U.S. issues and leading women, our magazine is a Census Bureau also reveals in their 2012 Survey valuable resource that informs and unites our of Business Owners (SBO) that the number of community. women-owned firms grew by 27.5 percent from 2007 to 2012. These positive markers should be NAWRB is dedicated to providing women the the inspiration for women in the business realm to tools and opportunities for economic growth work together toward a level business field. and expansion, while advocating and promoting women-owned businesses in the housing Another focus of the women’s movement continuum. With seven years of advocacy is diversity and inclusion (D&I). Although experience on behalf of women, NAWRB is women-owned businesses are on the rise, there uniquely positioned as a women’s leader in the is evidence showing there aren’t enough women diversity and inclusion movement december 2015

The Power Is Now MAGAZINE | 50

LEGAL

NEW HUD RULES TO REINVIGORATE FAIR HOUSING LAWS The Fair Housing Act of 1968 was enacted at the height of the civil rights era with the intent to bar racial discrimination and require all government entities to end segregation. Its mandate was to ensure everyone had equal access to housing regardless of race, color, religion, or national origin (NFHA, 2015). However, over the next five decades the American landscape has been largely carved into white-only and black-only enclaves with clear demarcations found in large cities such as New York, Newark, Detroit, Baltimore, Philadelphia, and St. Louis.

As a result millions of minorities have been stranded in poverty without access to

the opportunities for achieving 2015) followed a June 2015 prosperity.

Supreme Court decision that upheld a key component of the New Rules to Re-Activate Fair Housing Act that allows Fair Housing Laws the government to address “disparate impact” where racial In the summer or 2015, the disparities in housing access Obama administration issued exist, even if they are not linked new regulations designed to put to discrimination. some teeth into a key section of the 1968 Fair Housing Act At the center of the new which has long been dormant. rules and the Supreme Court The new regulations apply decision is a government effort to the section of the Act that to level the playing field for requires the federal government racial minorities that, through to “affirmatively” further decades of exclusionary zoning fair housing, particularly in and racist lending, have been communities deemed to be relegated to pockets of lowheavily segregated. The actions income housing with little taken by the Department access to good transportation, of Housing and Urban better schools and job Development (HUD.gov, opportunities. Although fair-

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The Power Is Now MAGAZINE | 52

LEGAL

housing laws have existed for nearly a half a century, federal enforcement of the laws has been lax due to bureaucratic confusion and a lack of cooperation by local governments (NFHA, 2015). The new rules will provide clarity as well as financial incentives for local governments to more actively pursue the goals of the Fair Housing Act.

To reduce housing segregation, the plans might have to include rezoning communities that primarily serve affluent white people to allow for affordable housing to be built

and other financial incentives will be tied to the Additional Tools and Incentives to Help local governments’ response to the rules.

Local Governments Opportunity to Escape Poverty The centerpiece of the new rules is a database created by HUD that will provide cities and The intent of the new rule, officially named, the counties with historical data that can be used Affirmatively Furthering Fair Housing (AFFH) to analyze segregation patterns. Areas where regulation, is to open the door to poor minorities poor minorities are concentrated are to be to move to more affluent communities with better identified and assessed for their access to quality access to services and educational opportunities. community services, such as good schools and Children who grow up in better neighborhood transportation. Local governments will be with access to better education have a much required to submit these analyses to HUD along greater chance of success (HUD.gov). The with actionable plans for reducing segregation. AFFH is designed to provide local communities To reduce housing segregation, the plans might with the tools to help lift people out of poverty have to include rezoning communities that by providing the same access to opportunity primarily serve affluent white people to allow enjoyed by everyone. for affordable housing to be built (HUD.gov).

This is truly an opportunity that rings true to the The financial incentives for local governments philosophy of The Power Is Now, which is to and housing authorities to advance the goals of act in the present to change your situation for the Fair Housing Act have always been there. But, the better. The escape of poverty begins with there has been little direction from the federal individuals working hard to take advantage of government to help communities to develop new legislation to achieve the American Dream. policies and plans, or to measure their success. You have the power to change your life now, The new rules will provide greater clarity and because The Power Is Now. guidance, beginning with the requirement for local governments to submit analyses and action plans. From this point forward, federal grants

The Power Is Now MAGAZINE | 53

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Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

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,

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11801 Pierce St. Ste. 200 Riverside, CA 92505

IVERY SUMMERS

BOB IRISH

http://www.thereodiva.com

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ivery.sells@verizon.net (310)649-2711

bobirishrealtor@gmail.com (951)343-3606 (951)313-6080

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

Los Angeles, CA 90045-3944 , USA

The Power Is Now MAGAZINE | 57

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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

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

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

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714-904-7877

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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

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The Power Is Now MAGAZINE | 58

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

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(310) 590-1320

The Power Is Now MAGAZINE | 59

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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

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NHF SAPPHIRE

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Frazier, Eric, Lawrence is a CA Mortgage Brokerage Licensed by the State of CA BRE 01143484 and is not affiliated with any state or federal agency. Frazier, Eric Lawrence is also licensed by NMLS# 1273606 - www.nmlsconsumeraccess.org. Frazier, Eric, Lawrence is an equal housing lender. Our corporate office is located at: 3739 6th Street Riverside, CA 92501. Telephone and Fax: 800-261-1634 Eric Lawrence Frazier, MBA is a Licensed Loan Originator NMLS# 1461708. This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states.

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