The PIN Magazine - January 2016

January 2016 Vol. 03 | Issue 1

REAL ESTATE FOCUS ON RIVERSIDE, CA GREEN HOMES THE POWER IS NOW RINGS IN THE NEW YEAR!

MONTHLY ISSUES IN 2016

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

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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

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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...

TECHNOLOGY

24 Revolutioning Virtual Tours

OUR COVER

In This

Homeownership 18 What Did The Federal Reserve Miss?

44 Own Your Own Home Before Retiremen

REAL ESTATE

14 Karen Bass Contribution to

POWER AGENT SPOTLIGHT

YOU

GREEN ECONOMICS

Lawrence Frazier MBA

48 Agent Relations?

10 Green Homes

MORTGAGE

40 Eric

50 Jeanine Davis

28 Real Estate Market Focus, Riverside, CA 32 New Orleans 36 Lancaster, PA

From the

Editor...

W

Welcome to the New Year!

2016 is finally upon us as the holiday season fades away. Looking into the New Year we see politics heating up as Trump remains the frontrunner for the Republican candidate and Bernie Sanders climbs the ladder with Hillary Clinton for the Democratic nominee. In the real estate world, homeownership is unfortunately low once again for African Americans in particular, though non-profits like NAREB and CAREB are bolstering programs to relieve economic despair from African Americans.

Technology continues to impress the public as panoramic videos move into the forefront of virtual open houses, changing the way that real estate professionals and buyers and sellers look at marketing and selling a home.

Green technology is also on the rise as green homes gain popularity. Shrinking the utility bill every month while keeping the environment healthier has never been easier!

Within this issue of the magazine is also real estate focuses from across the

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EDITORIAL

United States. Areas rich in culture such as New Orleans, LA and Riverside, CA are showcased this month. Riverside is near and dear to The Power Is Now as that is where we began in our growth to become a national publication.

As The Power Is Now continues to grow, I cannot help but be proud of all that has been accomplished this year. As I welcome 2016, I am excited to announce major changes coming to The Power Is Now beginning now, because the power is now!

The first major change is that The Power Is Now Magazine will be a monthly issue. Real estate, finance, and political figures will shine on the cover every month and various real estate markets will be focused in great detail.

The Power Is Now is your resource for the latest trends in the market, economic news, green updates and tips, the latest design ideas, and technological advancements. If you want to be a better buyer, seller, agent, broker, or leader, then The Power Is Now Magazine has something for you! I am looking forward to getting you the most updated and accurate information possible when you need it through these monthly issues.

The Power Is Now Inc. will also be featuring a brand new magazine, The Power Is Now Real Estate Magazine. This online publication features the latest real estate for sale. Real estate agents from all over the nation are calling in for a radio interview with myself about the property. This package allows the realtor or realtist to then place an advertisement for that property and themselves in our new magazine.

An article will also be written about your property as well as a real estate market focus about the area where the listing is located.

We will send your property into the hands of our 1.3 million listeners of The Power Is Now Radio and our 300,000 subscribers of the online magazines.

The Power Is Now will also blogging daily at www.thepowerisnow.com/blog about all of your real estate and finance needs. I will be covering everything from how to chose a water heater to the trends in stock market and real estate. Feel free to share my posts to anyone in need of the information, because the spread of knowledge is what keeps our democracy afloat.

The final change that The Power Is Now Inc. is undertaking is fortifying relationships with the community. AREAA, NAWRB, NAHREP, NAREB, CAREB, Realogy, WINDS, and more have always been a vital part of keeping The Power Is Now up to date in important movements such as increasing homeownership. We are excited to continue supporting homeownership and other movements in the community to better ourselves and others. Partnerships are invaluable for this community, and The Power Is Now is excited to bring new business leaders and experts to the forefront.

I cannot wait to see what 2016 brings. Have a happy New Year and start acting now!

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

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GREEN

Green Homes A

green home is a dwelling designed to be environmentally friendly and sustainable while also focusing on the efficient use of water, energy, and building materials. Green homes are becoming more prevalent, leading to the emergence and development of green affordable housing. Green affordable housing emphasizes affordability. Most people view the phrase “affordable green homes” as a mere fallacy under the notion that green homes are more costly than traditional homes. Due to lack of specific and clear standards to regulate the construction of green homes, the components of these homes are not specific. Although what constitutes a green home has not universally agreed upon, we can point to certain homes as green homes by closely examining their impact on human life and how they have been built. A green house is remodeled to improve indoor air quality; conserve energy or water; use sustainable, used or recycled materials; and produce less waste material. These green building techniques are associated with moderately high to low cost compared to the conventional building, and thankfully the cost is relatively low in the long run (Costa 1).

Most homes constructed in the modern world do not meet the standards that would make them energy efficient. Real estate developers use the term “green homes” when marketing their listed homes as a way of attracting potential homebuyers. However, if the homebuyers are not keen, they might buy ordinary conventional homes instead of green homes. Luckily there are a variety of green homes made from distinguished quality materials (“From the Ground…” 1):

Earthbag, or Superadobe Home, is one of the most spectacular green homes. It is constructed using nontoxic materials that are readily available locally. They are easier to build and efficient in the provision of great insulation and stability. Short and long sandbags are filled with masses of earth from the construction site and coiled or stalked into perfect layers with strong barbed wire for mortar and extra reinforcement. The homes are then plastered to cover the bags and make unique shapes.

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GREEN

Monolithic Dome Homes are firm and durable.

The R-value of their shell is around sixty due to the concrete thermal mass and unavailability of air or moisture infiltration, regulating the level temperature. This could cut your heating and air conditioning bills in half when the weather takes a turn for the worst. Even with only three inch thick concrete these homes are fire, wind, and earthquake resistant. They do not warp, rot, and are not easily destroyed by pests (“From the Ground…” 1).

Straw Bales Home is an iconic green home. The straw is kept dry particularly at the foundation, tops of walls, and around windows and doors.

Plastering is particularly thorough, and it is recommended to run plumbing outside the bales.

If the moisture is kept below twenty percent, then this house might have an almost indefinite useful life.

Structured Insulated Panels Homes are also impressive green homes. Structured Insulated Panels are fiber cement boards, double sheets of oriented strand board or plywood, which are attached to a layer of slightly expanded polystyrene. These homes have superior insulation and reduced air infiltration. They are quicker to put up and are associated with little waste, which is always a win for the environment.

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GREEN

American Ingenuity (AI) Geodesic Domes are incredible green homes constructed using unique techniques. During construction, triangular panels are arranged in a distinctive way such that they support each other with no framework.

Each panel is ¼-inch wallboard on the interior, R-28 seven inch expanded polystyrene (EPS) insulation in the middle and ½-inch to ¾-inch steel-reinforced concrete on the exterior. Up to an average of thirty-four feet in diameter, the triangular panels are momentarily supported with leaned two by four boards.

After ensuring that all the panels have been correctly positioned, an overlapping steel mesh is perfectly locked with steel C-rings and seams coated with a double layer of concrete mix, then finally primed and painted.

The EPS insulation prevents vapor and air against air infiltration. These homes are free of formaldehyde, chlorofluorocarbons (CFCs), and are not easily destroyed by pests. They are also fire, earthquake, mildew, mold, wind, and snow load resistant (“From the Ground…” 1).This will save you both time and money in your maintenance of your dream home.

Pumice-Crete is a wonderful green home constructed by use of lightweight pumice rock, water, and Portland cement. After creating walls, a concrete bond beam is poured on top for roof connectors and then plastered. The14-inch wall is sufficient to support one to two stories. Pumise-Crete is a natural building material collected in volcanic areas. It uses little cement and does not burn, rot, or get destroyed by pests.

Real estate developers consider it as a good insulator with the bubble pocket. Attractive shapes can be obtained by finishing it with stucco (Costa 1).

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GREEN

Liteblok is a stunning green homemade of Cresco Concrete Products. These products are similar to Pumice-Crete in their formation. Liteblocks are non-toxic, easy to handle, fireproof, wind, earthquake, pest and mold resistant. They are interlocking lightweight concrete blocks that do not need mortar. The homes do not lot or warp easily and can preserve their R-value for a long period, meaning that the home is better insulated against the elements. Their exterior part can be improved by applying thin-set mortar or textured paint (“From the Ground…” 1).

Rastra Panels Homes are made of a composite insulating concrete form.

They are 15% cement and 85% recycled expanded polystyrene. They are considered lightweight and have an R-value of around 48. Strong grid-work is formed by inserting concrete and rebar in the panels’ channels.

Rastra panels are quick to assemble and do not contract or expand easily. They do not wick, rot or hold moisture. They are resistant to fire, earthquakes and are not easily destroyed by pests (Costa 1).

The most affordable green homes are pole houses. They are cheap and easier to build since they do not require excavation and less wood and concrete is used. While these homes are not as natural disaster resistant, they are less expensive and better for a more sustainable Earth.

Investment in green homes is imperative, because the traditional buildings are not energy efficient and experience losses at each stud with their R-value falling below seven. Furthermore, they attract condensation, rot, and mold. Their insulation is prone to sagging and compresses over time.

These non-green homes are not efficient enough to prevent insects and rodents from moving into framed walls. Unlike the traditional houses, most of the green homes are well-insulated and

require smaller, cheaper cooling and heating units that may only need to be supplementary if you intend to use a convective cooling design or passive solar (“Introduction to Green Homes” 34). These homes have a longer useful life and require fewer repairs and minimal maintenance.

Since they can withstand an earthquake, strong winds, and are not prone to fire risks, they are charged a low insurance premium. Insurance can be such a headache, so lowering those costs will save you hundreds and even thousands in the long run. Green homes are among the most habitable homes in the modern world since they promote comfort, health, and can mitigate the effect of natural catastrophes. Go out and invest today, because The Power Is Now!

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Karen Bass Contribution to Homeownership Karen Bass, the daughter of Wilhelmina and DeWitt Talmadge Bass, was born on 3rd October 1953 in Los Angeles, California. She was brought up in the Venice (Fairfax) neighborhood and studied at Hamilton High School. In 1971, she went to San Diego State University to study philosophy, which took her three years to complete. In 1990, her career path took a different path after graduating from California State University (Dominguez Hills) with a B.S. in health sciences.

ECONOMICS

A

fter her studies, she was granted a job offer from the USC Keck School of Medicine Physician Assistant Program.

She worked in the organization as a clinical instructor and a physician assistant. She later founded an organization known as Community Coalition that was located in South Los Angles.

Karen Bass is currently an American Democratic politician, who represents the 37th congressional district of California in the United States House of Representatives. She holds vital role in the African American Leadership Council. From 2004 to 2010, she was mandated to represent the 47th district in the California State Assembly.

She served cities such as West Los Angles, Cheviot Hills, Westwood, Culver City, Leimert Park, View Park-Windsor Hills, Baldwin Hills, Ladera Heights, Little Ethiopia, the Crenshaw District, some regions of South Los Angles, and Koreatown. In 2008, she served as a California Co-chair of Obama’s presidential campaign and was also made the California’s State Assembly Speaker in the same period. In 2010, she was elected for the first time (2015 Bass.gov).

of owning a home. The HOPE Act shows that she is trying to match the needs of home sellers and buyers by making the atmosphere around real estate market more conducive. She believes that if both home prices and interest rates are maintained at historic lows, an increment in home ownership will be established in the next five years. The younger generation and first time home buyers will also get a chance to own a home despite their low income. She intends to help new homebuyers by offering them counseling, which is vital in differentiating foreclosure from successful homeownership.

Scholars argue that first-time homebuyers need coaching about owning a home. Unfortunately, they do not receive it (2015 Bass.gov).

Home buyers who are lucky enough to access housing counseling are more likely to get into an affordable mortgage and comply with its terms. This indicates that pre-purchase counseling is capable of eradicating the nation’s housing crises and curbing its occurrence in the future. Pre-purchase housing counseling will transform the real estate market by helping homeowners prevent foreclosures and defaults.

Karen Bass education, experience and a Also, the nation will have more mortgage ready lengthy term of service in the government homebuyers. made her understand the challenges faced by the loyal citizens. In her attempt to solve these Karen Bass also believes that the HOPE Act can challenges, she triggered the introduction of reduce the FHA mortgage insurance premium the Homeownership Preservation Education payable upfront by first-time homebuyers after (HOPE) Act. The Act was aimed at a reduction completing the HUD-approved counseling in FHA mortgage insurance premium interest program. This implies that an FHA loan of rate payable by first-time homebuyers, who $200,000 will have a discount of $500 on completed pre-purchase counseling. Her main mortgage insurance premium, which is payable dream was to create a healthy real estate market, upfront via the life of the loan or collected at which was characterized by successful rates closing. of ownership. According to Karen Bass, the HOPE Act equipped potential homebuyers with The bill, which Karen Bass introduced in the 112th a vital tool that could give them an impeccable Congress, was referred to the Insurance, Housing, experience during their lifetime. Karen Bass and Community Opportunity subcommittee. main focus is to transform the Americans dream

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Rep. Luis Gutierrez, the Housing Subcommittee Senior Democrat, and Rep. Bob Dold are both supporters and cosponsors of the bipartisan HOPE Act (2015 Bass.gov).

The main supporters of the bill include National Association of Realtors, ClearPoint Financial Solutions, Homeownership Preservation Foundation (HPF), Housing Partnership Network (HPN), Catholic Charities USA, HomeFreeUSA, Housing Action Illinois, National Coalition for Asian Pacific American Community Development, Mission of Peace National Corporation, National Council of La Raza (NCLR), National Community Reinvestment Coalition, National NeighborWorks Association (NNA), National Federation for Credit Counseling (NFCC), NID Housing Counseling Agency (NID-HCA), Seedco, Rural Community Assistance Corporation (RCAC) and National Federation of Community Development Credit Unions (CDCU).

As a result of declining first-

january 2016

only alternative they had was to request help from the federal government. Her statement also suggested that Refinance program and the Emergency Relief Mortgage Relief program had not been fully implemented.

Emergency Relief Mortgage Relief Program provided no interest loans to individuals who lost their jobs, which led to delays in the mortgage payment hand homeownership in (2012 Bass.gov).

Southern California, she started to campaigns for affordable Karen Bass argued that housing housing. In Karen Bass’s sector was a key component speech during an interview, that determined the rate of she said that rents continued to economic recovery. Due to the hike without a corresponding inability of H.R. 830 (FHA income increment, rendering the Refinance Program Termination median income earned by Los Act) and H.R. 836 (Emergency Angeles residents insufficient in Relief Mortgage Relief discharging housing expenses. program) to address the needs In her effort to improve the life of homeowners, Karen Bass delivered a statement to the U.S. House of Representatives about two Republican-sponsored bills that could have terminated government relief programs for real estate investors, who were in need of mortgage relief (2015 Bass.gov).

She informed the Speaker that California was almost ground zero of the foreclosure crises.

She added that forty percent of all foreclosures in the U.S. were found in the state of California.

According to her statement, around one in eight homes in California were in foreclosure.

Most Californians had received foreclosure notices. Since they had been shunned by banks, the

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of homeowners, she urged her colleagues to vote against the bills. Also, the two bills did not offer an alternative to the reduction in the foreclosure crisis, nor did they recognize the basic principle, which depicted real estate as the main aid to economic recovery.

Karen Bass is determined to defend California homeowners against any effort that can dismantle the mortgage relief programs. Her main focus is to support struggling homeowners by ensuring implementation of mortgage policies that are in line with their needs. The Power Is Now fully supports Karen Bass as she continues to fight for a chance for Americans to gain wealth through real estate and climb out of poverty.

ECONOMICS

What Did the Federal Reserve Miss?

E

ntering the last quarter of 2015, the housing market showed some strength with the median price increasing 4.9% in September, which was a 4.6% increase from August. That continues the momentum the housing market has displayed for much of the year, leading some industry observers to question whether it will continue into the final quarter and next year.

The strong showing is good news for homeowners, but it does not bode well for homeowners- in-waiting as housing affordability has, once again, reached new lows. Although it is too early to tell what the immediate effects of the December rate hike will have, any hope of more affordable housing will likely dissipate as the cost of homeownership increases. The only possible offset to that is the first, albeit very slight, increase in wage growth we have seen in more than a decade. When people have more money to spend on housing, it should

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keep upward pressure on home prices.

The robust rebound in housing prices has some industry observers discussing the possibility of another bubble. Former Federal Reserve Chairman, Ben Bernanke, who was at the helm as the last housing bubble burst, sees it differently this time around. In a recent interview, he pointed out the different factors that are driving current demand, such as an improving economy. The last housing bubble was largely the result of fast and easy credit, which is not as prevalent today. Although he did acknowledge that, at least in some areas, such as New York and San Francisco, housing prices appear to be getting ahead of themselves, he points out that the prices of houses in 2008 were so much higher than what the rents were able to justify.

Currently, higher rents are supporting higher housing prices in many areas of the country.

Overall, Bernanke believes the

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housing market will continue to do well, but he also points out that we aren’t seeing anywhere near the boom level of construction that went last decade. He even warns that the current level of housing construction will not keep pace with the growth of our population.

Interestingly, he acknowledged that the Fed did miss many of the indicators that pointed to a major financial crisis. It was obvious that housing prices had reached such extreme levels that he knew prices would have to correct at some point. What the Fed did miss, however, was the toxic mix of high prices, faltering mortgages, and the subprime mortgage problems that would ultimately trigger

the financial panic that ensued.

The former Fed Chairman does not see any combination of factors that could lead to another crisis, but he does advise us to closely investigate individual markets and make good decisions, just as the banks need to make good lending decisions.

As to housing market going forward, many industry experts expect to see a slight surge in housing sales as new home buyers try to beat the anticipated uptick in mortgage rates. We may also see an increase in demand as a result of the new, looser lending requirements established by Fannie Mae take effect in 2016.

ECONOMICS

FDIC Announces Settlement with WEX Bank and Higher One for Deceptive Practices Related to Debit Cards for College Students Harmed consumers to receive approximately $31 million in restitution

FOR IMMEDIATE RELEASE December 23, 2015 Media Contact: Barbara Hagenbaugh, (202) 898-7192 Email: bhagenbaugh@fdic.gov The Federal Deposit Insurance Corporation (FDIC) today announced settlements with WEX Bank, Midvale, Utah, and Higher One, Inc., New Haven, Conn., an institution-affiliated party of WEX Bank, for deceptive practices in violation of Section 5 of the Federal Trade Commission (FTC) Act.

students. Specifically, after payment of tuition and other expenses owed directly to the school, the remaining financial aid, such as money for books, supplies, and living expenses, can be disbursed to students through Higher One’s “OneAccount.” The OneAccount is a debit card-based product that is offered in partnership through financial institutions. WEX Bank has As part of the settlements, WEX Bank and offered the OneAccount since May 4, 2012.

Higher One have each stipulated to the issuance of a Consent Order, Order for Restitution, and The FDIC concluded that the Higher One Order to Pay Civil Money Penalty. The FDIC website and associated materials, which were orders require Higher One to pay a civil money approved by WEX Bank, omitted material facts penalty of $2.23 million and WEX Bank to pay about certain fees, features, and limitations $1.75 million, and together to pay total restitution of the OneAccount in violation of Section 5. of approximately $31 million to an estimated The omissions included details about other 900,000 harmed consumers. Consumers who disbursement methods available to students, a full are eligible for relief under the settlements and complete fee schedule, and the availability are not required to take any action to receive of fee-free ATMs. As a result of these material compensation. omissions, Higher One improperly collected $31 million in fees from students from May 4, Higher One provides colleges and universities 2012, to July 15, 2014, the period covered by the with financial aid disbursement services for enforcement action.

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ECONOMICS

“It is important that financial products offered to college students under the sponsorship of their universities are clear, transparent, and trustworthy,” FDIC Chairman Martin J. Gruenberg said. “Today’s action holds both the bank and its student card partner accountable for the practices related to the products they offered to college students and provides restitution to those students harmed by these practices.”

In addition to the payment of restitution to harmed consumers and civil money penalties, the FDIC orders require both WEX Bank and Higher One to take affirmative steps to correct the violations, and to ensure compliance in the future with all consumer protection laws, including the FTC Act. The Board of Governors of the Federal Reserve System also reached a settlement with Higher One concerning Higher One’s relationship with a state member bank in a separate action.

Consumers do not need to take any action.

Eligible consumers will receive notification from the companies following approval of the restitution plan.

Attachments: • Consent Order, Order for Restitution, and Order to Pay Civil Money Penalty (WEX Bank) PDF (PDF Help) • Consent Order, Order for Restitution, and Order to Pay Civil Money Penalty (Higher One) PDF (PDF Help) • Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s banks and savings associations, 6,270 as of September 30, 2015. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.

The FDIC receives no federal tax dollars — insured financial institutions fund its operations.

• FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go towww.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center (877-275-3342 or 703-5622200). PR-102-2015

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TECHNOLOGY

REVOLUTIONIZING VIRTUAL TOURS

T

he virtual tour is an advanced video simulation of a panoramic view of an existing property or region that can be viewed online through various platforms, often for property search, vocation-related research or travel. A virtual tour entails collection of highquality panoramic images that are normally played in sequence to view like a moving video with added sound and text effect. It allows the use of models in place of real-life images or video recording. A virtual tour is designed to provide homebuyers with a more life-like 3D view of the property and location being presented in the tour, making it popular in the real estate industry where a realistic 3D view of a home or property can be presented to interested purchasers (Tuzovic, 2009).

Virtual tours of real estate are typically linked directly to social media to create a platform through which realtors can list their properties.

Over the past few years, a virtual tour has undergone an extensive revolution. The social

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media technological landscape in real estate sector has reshaped with the introduction of GoPano micro for iPhone. Many technology savvy realtors are taking advantage of the enterprising techniques triggered by this gadget.

GoPano micro uses a slightly curved mirror that is responsible for gathering light from all the directions of the atmosphere and reflecting it into the main mirror that finally reflects it back into the iPhone’s camera. The GoPano application transforms this light into an interactive scene where the users can easily control the level of view (Arbuckle & Bartel, 2004).

The original version of GoPano was designed at Pittsburgh tech start-up Eyesee360 by highly skilled engineers. EyeSee360 is the leader in single-shot Panasonic imaging technology for still and video photography. It has a spectacular experience in image rendering, robotic vision and software interface development. The advanced technology used by the company was originally designed to solve aviation and

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TECHNOLOGY

military problems, but the company saw the need to manufacture consumer and broadcast products. The company is made up of Carnegie Mellon University alumni. The alumni had previously developed GoPano Plus optic that allowed a DSLR or video camera to capture a full and quality 360° panoramic image in just a single take. Despite the improved features and efficiency in performance of GoPano micro, it is cheaper than GoPano plus.

simultaneously capturing everything visible within a 360° horizontally inclined loop around the lens.

The point of view appearance can be selected on the phone’s screen as the video shooting progresses.

GoPano Micro is designed to allow users to capture a full quality 360° panoramic video or image in a single take with the help of the GoPano application and the iPhone 4’s builtin camera. It uses a lens and modern software system that facilitates the shooting of a 360-degree interactive video using an iPhone 4. The captured video can be fascinating beyond a reasonable doubt. It is a smaller unit compared with GoPano plus. GoPano micro’s field of view is 360-degrees by 80-degrees. It has an unwrapped solution of 1920 by 456 for iPhone 4S and 1280 by 304 for iPhone 4. It measures 2-inches by 6.5-inches by 7-inches and weighs around 4 ounces. It is sold alongside GoPano iPhone 4/4s case and GoPano micro lens.

It is a requirement to register for the GoPanno app after purchasing the gadget.

After the video shooting is over, proprietary software grants viewers of the footage a comfortable navigation within the panorama using the phone’s touchscreen. By swiping using your finger, you can pan left or right depending on your preference.

The gadget allows you to pan either during live recording or in the recorded video. It captures clear pictures despite the topography or landscape. This is a clear indication that it can be used by realtors as a ‘sales-catalyst’ for real estate (Grayson, 2006).

The GoPano micro uses modern technology and can simultaneously record everything that surrounds the listed property. The most amazing thing is that the realtor can go back to any recorded video and view it in different ways depending on personal preference. The realtors can choose to view the video from any angle or perspective at any point in time. While such spectacular technology could mean magnificent GoPano is attached to the lens of an things for internet marketing, it is also set to iPhone 4 using a custom case. A cool transform and shake up real estate industry. interactive video is then recorded

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TECHNOLOGY

The use of this technology has a great positive impact on the realtor’s ability to sell homes.

GoPano micro is designed to transform realtor’s and homebuyer’s virtual tour experience on social media. Realtors can capture an eye-catching 360-degree video at thirty frames per second using their iPhone. The recorded video can be uploaded and shared with specific homebuyers or the online community at large via social media platform. This transforms routine marketing into easier and enjoyable activity. Homebuyers enjoy the property’s live preview of 360-degree video without needing to leave the comfort of their homes (Roberts & Zahay, 2012).

In regards to technology, you can see the intensive change occurring. Homebuyers no longer want to leave their homes for an open house unless they are serious about the home, because they can see all that they need to online.

This means that realtors must be careful what they are showing their homebuyers. Showcasing the home through panoramic videos is a fantastic perk, but it cannot be taken lightly. You have to be sure that you are showing the home with

the angle that you want; keep in mind that you are not in the room to talk a buyer through how they may fix a problem in the home. The ideal way to use panoramic videos are to incorporate the many facets of the home and add your own audio or textual descriptions to sell the home.

References • Arbuckle, G., & Bartel, H. (2004). Readings in Canadian real estate. Concord, Ont: Captus Press.

• Tuzovic, S. (2009). Key determinants of real estate service quality among property renters and homebuyers. Journal of Services Marketing, 23(7), 496-507.

• Grayson, M. (2006). Real Estate Webographertm: Web Technology Handbook. iUniverse.

• Roberts, M., & Zahay, D. (2012). Internet marketing: Integrating online and offline strategies. Cengage Learning.

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

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

REAL ESTATE MARKET FOCUS: RIVERSIDE, CA

T

he city of Riverside, so named for its proximity to the Santa Ana River, is the largest city and county seat of sprawling Riverside County. It has always been the economic and cultural epicenter of the larger Inland Empire metropolitan area. Located approximately sixty miles east of Los Angeles, Riverside is seen as the western gateway to the San Bernardino Mountains and the Mojave Desert. It is the eastern gateway to the stunning beach cities of Orange County.

For its population of 317,000 in 2015, the city of Riverside is a vibrant melting pot community offering the optimum mix of civic, cultural, and economic opportunities for families and businesses.

To the rest of the country, Riverside’s notoriety stems primarily from its location as one of the University of California

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campuses as well as from the historic Mission Inn, which has hosted celebrities, royalty, and presidents for more than a hundred years. Many people are surprised to learn that Riverside (and not the city of Orange) was the birthplace of the massive California citrus industry back in the late nineteenth century.

However, when given a chance to visit Riverside, people will find one of the most ethnically diverse communities in the country made up of Caucasian, African-American, Hispanic, Asian households spread across twenty-eight neighborhoods.

There Is Plenty to Do in Riverside Day and night and throughout the year, Riverside is a bustling area of activity. With a median population age of thirty years old, the city of Riverside packs a lot of culture, activities, and events into its 81.51 square miles.

REAL ESTATE

Annual Events

has no shortage of parks – fifty-four covering more than 2,700 acres. Fairmont Lake is an Three annual events have brought Riverside enormously popular destination for its bike a lot of notoriety. In February, the city adorns trails, picnic areas, and golf courses. itself in a Victorian motif to celebrate the works of Charles Dickens with The Riverside Dickens Golf enthusiasts will relish the many fine golf Festival. Everyone dresses in period costumes courses in Riverside, and they will definitely as they enjoy musical acts, literary workshops, need to try The Oak Quarry Gold Club, which and even an old fashioned pub. In March, the was named the 2013 National Course of the Riverside Airshow draws more than 70,000 Year by the California Golf Course Owners aerial enthusiasts to watch thrilling performers Association. and walk among aircraft displays. Then, in October, the city hosts The Long Night of Arts The College Scene & Innovation which takes place throughout the downtown, showcasing the best of the city’s Most people would not think of Riverside as a science and technology innovations along with college town, but it is home to more than 30,000 visual and performing arts university students at U.C. Riverside (21,600), California Baptist University (8,000) and La Local Entertainment Sierra University (2,500). 19,000 students attend Riverside Community College. Following in the For year round entertainment, the Fox mold of its city host, U.C. Riverside is the fifth Performing Arts Center is host to some of the most ethnically diverse college in the country. biggest musical and comedy acts to come to The U.C. Riverside School of Medicine is the southern California. It is also home to local first new public medical school opened in forty artists and performance groups. There are twelve years and is expected to be a large draw for new performing arts venues throughout the city, and jobs and professionals to Riverside. two of them – the Riverside Philharmonic and the California Riverside Ballet – are nationally Celebrating Riverside’s Economic Resurgence renowned.

The city of Riverside has experienced an The Dining Scene economic and cultural resurgence since the darkest days of the Great Recession and financial Riverside has a very active restaurant scene crisis when it led many California cities in job dominated by Thai, Indian and Italian menus. losses and housing decline. In 2009, as the Local favorites include Bann Thai, Punjab recession was coming to an end, the city and Palace, and Magnone Trattoria & Market. For community leaders came together to lay out a turf and surf lovers, Duane’s Prime Steaks and twenty year strategic vision called, “Seizing our Seafood is considered one of the best (and most Destiny: The Agenda for Riverside’s Innovative expensive) restaurants in town. Or, you could Future.” Around the same time, city leadership dine on sushi and wine next door at 54 Degrees. approved The Riverside Renaissance program with spending of more than $1.6 billion on Outdoor Fun public facility and building projects throughout the city. As it all sits today, the city is well on its For families and outdoor enthusiasts, Riverside way to realizing its objectives.

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REAL ESTATE

In 2012 it was ranked eighth by CBS News as one of the Top 10 U.S. Cities for Job Growth.

In 2014 Forbes ranked it fourth in cities for job growth. In 2013, Forbes also ranked Riverside second in America’s New Tech Hot Spots for its nearly twenty percent growth in high-tech jobs. A large part of the twenty year strategy is to make Riverside a more attractive city for small businesses, which has also paid off with a number one rating in 2014 for U.S. City for Small Business by Inc. Magazine. The best recognition the city has earned has to be its number eight ranking as America’s Coolest City in 2014 by Forbes. The ranking is based on a mix of arts, culture, recreation, and diversity among the twenty to thirty-four year old population. Its ability to attract more young professionals has earned the city a sixth place for the Happiest Place in the Nation for Young Professionals.

All of that is a testament to the vision and commitment of city and community leaders to make Riverside a great place to live and work.

A Rejuvenated Housing Market The one aspect of Riverside’s economy that was hit worst in the financial crisis has benefited greatly by the city’s economic resurgence – the housing market. Although Riverside has not fully recovered from their steep drop in 2008, according to Trulia, housing prices have bounced back nicely to a median price of $334,500 as of December 2015. That represents a 67.2% increase over a five year period. Some of the higher priced neighborhoods include Canyon Crest ($501,220) and Victoria ($584,350), while most of the recent sales activity has been

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occurring in the neighborhoods of La Sierra ($360,650), Magnolia Center ($315,399) and La Sierra South ($324,923).

Final Thoughts about Riverside For its proximity to other more expensive southern California communities and with all it has to offer, Riverside is a still a bargain for young families, professionals, and white or blue collar job seekers. Unquestionably, civic leaders have the city moving in the right direction for creating business growth while building stronger community spirit.

So, what is not to like about living in Riverside?

You will definitely hear complaints about the traffic, but then, who in southern California does not complain about the traffic? If you live and work in Riverside, you should not have a problem with traffic; however, if you commute to L.A. or Orange County, you should definitely buy a FasTrak highway toll pass. Also, the entire Riverside County area is known as a smog belt.

There are certain periods during the year when the city’s Air Quality Index climbs above the national average. But, Riverside is not taking it lightly as they have made a lot of headway into air pollution reduction with improvements to its mass transit systems and greater use of natural gas by its city vehicles and bus fleet.

Here you can see that the city of Riverside cares about its community. From the resurgence in housing to the environmental work going on, Riverside is one of the best places in the country to settle down to buy and sell real estate.

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.

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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

REAL ESTATE

New Orleans, LA

N

ew Orleans is a major inland port in the U.S. and is the largest city in the state of Louisiana. It is a magnificent city of Mardis, jazz, and Cajun cuisine. The city is strategically located near the Mississippi River and Gulf of Mexico, and the New Orleans metropolitan area is the 46th largest city in the United States. Made up of different ethnic groups such as French-speaking Cajuns, Creoles, Italians, African American, Germans and Irish immigrants, the city’s population is culturally diverse. The New Orleans is a spectacular melting pot of iconic cultures. The cultural diversity of this beautiful city is reflected in its festivals, music, and food.

New Orleans has a variety of amazing events and festivals. Some of them include Allstate Sugar Bowl, Mardi Gras, Wednesday at The Square, BUKU Music & Art Project, St. Patrick’s Day,

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Congo Square/New World Rhythms Fest, Spring Fiesta & Historic Home Tours, Tennessee Williams/New Orleans Literary Festival, Gay Easter Parade, Saints & Sinners Literary Festival, French Quarter Festival, New Orleans Jazz & Heritage Festival Presented by Shell, Mid-city Bayou Boogaloo, New Orleans Wine & Food Experience, Oyster Festival, Cajun & Zydeco Festival, Shakespeare Festival, Coolinary New Orleans, Oak Street Po-boy Festival, Celebration in The Oaks, Christmas New Orleans Style and New Year’s Eve. New Orleans has plenty of hotspots, landmarks, and spectacular structures that act as tourist attractions. Some of them include French Quarter/Vieux Carre, Mardi Gras, Bourbon Street, Jackson Square, Royal Street, City Park, 200th Anniversary of the Battle of New Orleans, Rivertown and Green Bridge or Paris Road

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REAL ESTATE

Bridge. There is always plenty to do!

Real Estate prices in New Orleans continue to surpass the values recorded in 2014. This is an indicator that the city’s housing market is stabilizing creating viable investment opportunities in the real estate industry.

Regardless of the recently reported rates of appreciation, New Orleans’ homes remain below the national average. The actual median home price in the New Orleans real estate market is $167,100, while the reported national average is $216,567. The home price lag experienced in New Orleans market resulted from a 7.6% increment over the past three consecutive years. On the other hand, the national average appreciation rate of twenty-eight percent had been realized.

The three years of appreciation creates a positive trend characterized by rapid growth in home prices. From the above analysis, it is evident that the city has almost recovered from the 2008

crash. Since the recuperation gained traction, New Orleans has yet to experience depreciation.

Appreciation has played a vital role in boosting equity in the city since the crash/meltdown.

Performance in the New Orleans real estate market can be determined by closely examining the market trends.

Homes acquired in the New Orleans real estate market in 2014 appreciated by $7,022 on average. Over the same period, the national average was $12,783. Homes bought in the New Orleans real estate market three years ago experienced an average appreciation of $19,208 while the national average was $55,406 over the same period. Homes bought in the New Orleans real estate five years ago experienced an average appreciation of $14,809 while the national average was $49,675 over the same period.

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REAL ESTATE

Homes bought in the New Orleans real estate market seven years ago experienced an average appreciation of $21,022 while the national average experienced an increment of $9,474 over the same period. Homes bought in the New Orleans real estate market nine years ago experienced an appreciation of $26,890 on average, whereas the national average increased by $3,419 over the same period. Single-family home permits decreased by 3.5%. The effect of this decrease in new construction led to a decline in supply, paving the way for demand to catch up with total listed homes. Most homeowners allocate nearly 9% of their basic monthly income to their mortgage. On the other hand, the national average is around 16.3% individual’s income.

The percentage of delinquent mortgages in the city’s housing market is 7.3%, which is greater than the national average of 6.4%. The percentage of the city’s homeowners underwater on their mortgage is 14.7%, which is lower than the city’s Metro percentage of 15.8% (Zillow, 2015).

average listing price of $539,258 and Uptown with average listing price of $940,075 (Trulia. com, 2015).

New Orleans is an economic stalwart due to its real estate investment opportunities. It hosts a variety of properties. Some of these properties include condos, which play a vital role in attracting homebuyers who crave to own luxurious homes. At the fringes of the city, properties bordering waterfront are sold at a price that surpass $12 million. Average listing price for New Orleans’s single-family homes in is $258,000. Home affordability and low property taxes are the main factors that lure most families to the city.

New Orleans job growth rate is above the national average. Around 3,700 new jobs were created in 2014. Establishment of new companies such as Wal-Mart seems to have largely triggered the job creation.

In summary, New Orleans’ housing market is characterized by a median home price of $167,100, annual appreciation rate of 2.8%, the unemployment rate of 6.2%, annual job growth rate of 2.0%, population of 378,715 and a median household income of $45,981.

We can conclude that New Orleans has spectacular neighborhoods that are popular in the global world. Some of them include French Quarter with average listing price of $803,472; Little Woods with average listing price of $137,398; Seventh Ward with average listing It is advantageous to buy a home in New price of $153,542; Lower Garden District with Orleans rather than renting. Buying a home in

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REAL ESTATE

this area is equivalent to investing in a highly profitable venture. Owning a home makes life after retirement easy and comfortable. Most retirees face challenges when discharging housing expenses due to limited sources of income. As the real estate prices escalate, most property owners tend to increase the average asking rent. Such a move by the landlords would have a negative effect on the tenant’s life. New Orleans average asking rent increased by 1.8% during the first quarter of 2015 compared to the average rent charged a year earlier (HUD & Housing Market, 2015).

Real estate market in New Orleans has grown tremendously in the past few years. Most families prefer settling in the city due to the affordability of homes, availability of highly rated schools and the presence of historical

New Orleans is an economic stalwart due to its real estate investment opportunities. It hosts a variety of properties. attractions. Despite the 2008 crash, New Orleans appears primed for a return to its original state of prominence. New Orleans has regained its status as one the best housing markets in the U.S. Most regions in the city are potential hotbeds for real estate investment. Americans should consider acquiring a home in this magnificent city since it promises tremendous inflow of benefits in future. It is crystal clear that New Orleans is a potential destination to settle down or invest in real estate. The Mardi Gras, a winter carnival identified by its public partying and raucous consumed parades, embodies the city’s festive spirit.

References • NOLA.com,. (2015). New Orleans home prices up 46 percent since Hurricane Katrina; suburbs more modest. Retrieved 18 November 2015, from http://www.nola.com/business/index. ssf/2015/08/new_orleans_home_prices_up_46.html • Trulia.com,. (2015). Real Estate Overview for New Orleans, LA - Trulia. Retrieved 18 November 2015, from http://www.trulia.com/real_estate/New_Orleans-Louisiana/ • Van Eaton & Romero,. (2015). Breaux Bridge, LA Real Estate Market Trends and Statistics | Van Eaton & Romero. Retrieved 18 November 2015, from http://live.vaneatonromero.com/en/BreauxBridge-LA-Real-Estate-Market-Trends.aspx • Zillow, I. (2015). New Orleans LA Home Prices & Home Values | Zillow. Zillow. Retrieved 18 November 2015, from http://www.zillow.com/new-orleans-la/home-values/ • HUD PD&R Housing Market Profiles,. (2015). New Orleans-Metairie-Kenner, Louisiana.

Retrieved 19 November 2015, from http://www.huduser.gov/portal/periodicals/USHMC/reg/ NewOrleansLA_HMP_May2015.pdf

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www.thepowerisnow.com

REAL ESTATE

LANCASTER, PA

L

ancaster is an iconic city situated in South Central Pennsylvania.

This beautiful city of seven square miles is strategically located within a driving distance of Baltimore, Washington DC, New York, Philadelphia, Jersey Shore, and Delaware. Lancaster City is one of the oldest and most unnoticed metropolitan areas in the United States, and it acts as the seat of Lancaster County. Among Pennsylvania’s cities, it’s the eighth most populous with a population size of approximately 59,322.

Lancaster metropolitan area has a population size of around 507,766 rendering it the second

largest region in the South Central Pennsylvania and the 101st metropolitan area in the United States. Lancaster city has a wide variety of industries, which include tourism, healthcare, manufacturing, and public administration. It has a steady supply of both semiprofessional and professional services. It hosts the Park City Center, an indoor retail facility and the largest shopping mall in the region that caters to all income levels. The city is technologically advanced and has innovatively adopted the installation of electronic public CCTV to enhance security. It has more per capita

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outdoor cameras than any other city in the United States.

James Buchanan, who won the nation’s 15th presidential seat and Thaddeus Stevens, a congressman & abolitionist, were both Lancaster residents (Levine, Britt & Delle, 2005) Lancaster holds spectacular annual fairs, which include Elizabethtown Fair, York Fair, Denver Fair, Solanco Fair, Ephrata Fair, West Lampeter, Community Fair, Annual Oktoberfest, New Holland Farmer’s Fair, Manheim Community Farm Show, Lanchester Harvest Festival & Car Show and Annual Harvest Days. These fairs often revolve

REAL ESTATE

around Amish and German Education is among the key factors that drive traditions and harvests.

Lancaster’s economy. With the establishment of well-equipped educational institutions within The fame of Lancaster PA is a the city, quality education is guaranteed. One hybrid of both cutting-edge arts middle school, Reynolds Middle School, recently scenes and historic preservation. opened a refugee center for the large influx of It values the ethnic, cultural, and Syrian refugees being funneled into Lancaster. diverse lifestyles of each key The refugee center makes English culture and community. The city has a wide language learning possible for these refugees and variety of significant landmarks their families. Here you can see the culture of and attractions that makes it acceptance and love as new cultures are brought easier to comprehend the national, in with open arms and given the tools to succeed local, and state history. Some despite the hate you see in the news. of them include Central Market (Lancaster), Bethel African Some of the top ranked and Millersville Methodist Episcopal Church, University of Pennsylvania. Franklin & Marshall Fulton Opera House, Hamilton is a private college that has a fantastic preWatch Complex, J.P. McCaskey med program that prepares the future doctors High School, Lancaster Arts of the world. Down the road twenty minutes is Hotel, and the German Living Millersville University, a former Normal School History Village. Lancaster City where the science of teaching is constantly being also provides a First Friday reimagined by top notch professors for a state extravaganza.

Every first school price. Millersville University was honored Friday of the month Downtown with national recognition for their secondary Lancaster opens the streets to education programs recently. performers, artists, and artisans to show off their crafts. Bejeweled pianos are placed down Prince In regards to the real estate market, a recently Street, and the music can be heard all the way on released research indicates that Lancaster the other side of the city. homes have been appreciating above average over the past ten years. The homes cumulative Museums in Lancaster County offer insight into appreciation rate of 19.53% over the ten years is all aspect of local art, natural science, history, and ranked in the top forty percent nationally. This trains. The best museums in the area comprise translates to an annual appreciation of 1.80% on of Boehm’s Chapel, Cocalico Valley Historical average. The homes appreciated with 3.80% in Society, Conestoga Area Historical Society, the last twelve months (Neighborhoodscout.com, Ephrata Cloister, Hands-on House Children’s 2015). Although the city’s homes appreciate at a Museum, 1719 Hans Herr House & Museum, lower rate compared to most regions in the U.S., Lancaster Mennonite Historical Society, Lancaster realtors reap tremendous profit from home sales.

Science Factory, Landis Valley Museum, The Manheim Historical Society, National Watch The Lancaster housing market is both favorable & Clock Museum, The Philips Museum of Art- to both the sellers and buyers. Buyers demand F&M, Railroad Museum of Pennsylvania, Rock and get more concessions on terms of sale and Ford Plantation, and Wright’s Ferry Mansion pricing. Even though this market favors buyers (Kraybill, 2001). due to home affordability, sellers can increase home sales by meeting two factors.

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REAL ESTATE

The first one entails pricing home correctly. Most realtors ignore this factor under the notion that pricing is a science. They fail to acknowledge that it is also an art, and it poses a challenge to determine the right price. The second factor is the home condition and location. The home should be neutral, clean, uncluttered, updated, functional, and strategically located. Homes located in a major city, city fringes, near institutions or near tourist attractions have high demand regardless of the listing price. Failure for a home to meet these two factors, the seller will have difficulty in selling the property.

The median list price, average list price, number of listing, and median age of inventory for Lancaster homes can give us an oversight of the city’s real estate industry. In September 2014, the median list price for Lancaster City Homes was $210,000. In September 2015, the median list price was $218,000 after staging an increase of 3.81% compared to last year in the same month. The September 2015 median list price was equivalent to the previous month’s value.

Although the real estate market is gaining more traction, the city is still struggling to maintain the pace of recovery from the 2008 crash.

In September 2014, the average list price for Lancaster Homes was $254,265. In September 2015, the average list price was $261,511 after experiencing an increase of 2.85% compared to last year in the same month. The September 2015 average list price was 1.01% lower than the value recorded in the previous month. This trend indicates that Lancaster is still in the middle of recovery.

Versus last year in September, the median age of inventory for Lancaster homes in September 2015 was 14.61% lower. The median age of inventory in September 2015 was 76 days after an increment of 2.70% compared to seventy-five days recorded in the previous month.

In September 2014, the number of listing for january 2016

Lancaster Homes was $3,110. In September 2015, the number of the listing was $2,764 after experiencing a decrease of 11.11% compared to the previous year in the same month. The number of listing in September 2015 was 2.19% lower than the value recorded in the previous month (Web.har.com, 2015).

Most of the houses built in Lancaster are singlefamily homes, and the owners prefer to occupy them rather than rent. With increased demand for low-income rental housing, low-cost apartments are coming up although they are ineffective since demand pushes their rent up. Rent is escalating at a high rate. If the trend continues, tenants will not afford to pay, and rental housing will be in a bubble. Due to lack of federal and state financial aid programs such as Low-Income Housing Tax Program, property developers face challenges in constructing affordable rental housing.

Individuals can prevent being victimized by rent increment through home acquisition. Direct benefits that can accrue to a home include capital gain and rental income. A home can be used as collateral to obtain a loan and take advantage of the prevailing business opportunities.

Lancaster City inculcates its settlers with an entrepreneurial culture, a sense of social responsibility, and the desire to invest in real estate. It is only in Lancaster City where culture is valued, entrepreneurship is celebrated, safety is paramount, and real estate is a gold mine. Buying several properties in this city creates a welldiversified portfolio of investment. Most real estate owners who inhabit the thirty-two Lancaster neighborhoods are a mix of real estate brokers, manufacturing producers, office workers, and professionals. At the turn of the millennium, the city was lucky to win an award for the National Civic League’s All-American City. The presence of excellent schools, affordable housing, and wealth of attractions rank Lancaster housing market at the top and make it the best region to work, settle, and raise a family.

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Our Cover

OUR COVER

Eric Lawrence Frazier MBA For this issue of The Power Is Now Magazine the focus will be on Eric Lawrence Frazier in celebration of the New Year. In preparing this January issue of The Power Is Now Magazine, The Power Is Now Team knew that we could find no man or woman that represented the motifs present in this issue of The Power Is Now Magazine better than our own editor-in-chief. The theme of change and preparation for the future is what The Power Is Now and Eric Frazier embodies. His mantra of “We are at our best and we maximize our potential when we act now� transcends the superficiality of the day to day life and goes deeper to motivate and push others to take their lives into their hands and stop procrastinating.

T

his can be seen in the many hats that Eric Frazier wears, such as the following: President, CEO, radio host, editor-inchief, sales extraordinaire, real estate broker, a director of the California Association of Real Estate Brokers, President of Orange County Realtist of the National Association of Real Estate Brokers, and the Past President of the African American Association of REO Brokers.

Here we see a man that wants to do all that he can and more in the time that he is given. His power is now.

Eric graduated from Redlands University with an MBA focused in Finance and a BS in Business Administration and Management. This education paved the way for Eric to jump into his own real estate brokerage and mortgage loan operation, and to eventually begin The Power Is Now Inc. The Power Is Now is a multimedia company that specializes in providing information, education, and assistance in all aspects real estate sales, marketing, management, acquisition, rehabilitation and development, as well as residential and commercial lending for consumers and real estate professionals

nationwide. After beginning The Power Is Now Inc. in 2009, Eric has dedicated himself to better both his community of Riverside, California as well as the nation as a whole as The Power Is Now becomes a nationwide brand. Eric Frazier is constantly growing his businesses to new levels and working to better other businesses and individuals through his lending programs and real estate services.

Eric Frazier is an individual that is constantly working to better his leadership skills. He is humble enough to seek advice from the masters and develop his own style of encouragement, inspiration, and high expectations. He even teaches in the Extension Program on an as needed basis at the University of California, Riverside, though Eric does not feel that this is a job; it is his passion. This passion of educating minds of both the young and old of all races and nationalities is the foundation on which The Power Is Now Multimedia Company was started. He constantly looks to better the lives of not only his family, but all of the families and individuals throughout the United States.

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OUR COVER

That being said, Eric has always had a large part in non-profit organizations like NAREB and CAREB, assisting in any way he can to broaden their influence through The Power Is Now and Orange County Realtist Magazine. He looks toward building a greater future for his children and the generations following. Knowing that this can only happen through involvement in nonprofits, Eric utilizes his radio show, The Power Is Now Radio, and his unbeatable charisma to get the new policies of homeownership and other vital policies into the public eye.

In his other business of mortgage brokering, Eric has also found success with his family. With his Real Estate Broker License (BRE 01143484) and NMLS Mortgage License (NMLS #461807), Eric continues to grow Frazier Group Realty, Inc with his wife Ruby Frazier and his daughters. Three of his four talented daughters also have their MBAs in finance. Not only does Eric Frazier have a prosperous professional life, but his personal life as well, with a marriage of over thirty years and the raising of four successful young women.

By putting his concentration and effort into The Power Is Now, he has grown a prosperous business while still retaining his mortgage brokerage, expanding his expertise and utilizing his time to the fullest. Knowing that there are only twenty-four hours in the day, Eric fills them with conference calls, making connections, writing, researching, managing, and inspiring everyone at The Power Is Now to do better than our best, because the power is now!

Everyone on The Power Is Now Team would like to take this moment to thank Eric Frazier for all that he is done in not only starting a fantastic company, but also creating jobs and inspiration for countless team members. Thank you Eric, and we look forward to a prosperous, busy new year.

The Power Is Now Team

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The Power Is Now MAGAZINE | 42

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Loan Amounts up to $3 Million! * No monthly PMI Fixed-rate and ARM options are available Eligible for primary, secondary and investment properties 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

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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.

MORTGAGE

Own Your Home Before Retirement

R

etirement has a great effect on social, political, and economic life. Unless a retiree spends his life savings wisely, it may pose a challenge to cope with the rapidly changing economy. Owning a home and working out a proper budget may be the only techniques to hedge against any form of financial constraints after retirement. Although it may sound boring or daunting to draft a budget, understanding the various sources of income and the best way to spend the available cash is vital. Spare some time to approximate how much you intend to spend on insurance, vocational, tax bills, among other expenses. Observe your health insurance options to determine whether you are fully covered; if not, set aside a considerable amount for precaution purposes. Alternatively, you can create an emergency fund. Retirees require more than seventy-five percent of their basic preretirement income to live comfortably after retirement.

Real estate is the greatest lifetime resource, because it appreciates at a considerable rate. A person who intends to acquire real estate but has financial constraints can finance the acquisition using a 30-year fixed-rate mortgage. This is a long-term loan issued to acquire real estate. It is secured by a lien on the real estate being financed and fixed interest rates are chargeable throughout the mortgage period. Even when mortgage rates are hiking, a borrower can save a lot every month. Most financial institutions specialize in the issuance of a favorable mortgage, and a secondary market exists wherein mortgages are bought or sold. If someone acquires a mortgage,

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it is improbable that the original lender will demand to hold the mortgage. This might pave the way for a mortgage to change hands numerous times before maturity if the holders wish to liquidate the mortgage for immediate cash. In the past years, such a mortgage has been amortized. This implies that a portion of the regular payment goes to interest while the other portion is utilized for repayment of the principal. At maturity, the entire debt has been repaid, and all the rights over the property are transferred to the new purchaser. Unlike an adjustable-rate mortgage, a 30-year fixed-rate mortgage specifies a fixed interest rate during a period of thirty years (Guyton, 2004).

Assume you wish to acquire a real estate worth $200,000. Due to insufficient funds, you approach a financial institution and borrow a 30-year fixed-rate mortgage at an interest rate of nine percent and agree to pay a ten percent down payment. First, you will be required to ten percent of the total cost of the house, which is equivalent to $ 20,000. The rest, $180,000, will be financed at an interest rate of nine percent.

The loan is subject to monthly payment for thirty years. You may be required to pay one percent of the loan amount in the form of advance interest.

This translates to a prepaid interest of $1,800.

The bank or housing finance institution will grant you a mortgage worth $180,000 (Langley, 2006). Before the mortgage contract takes effect, you will be required to make a promise as a sign of acceptance in abiding by the terms of the agreement.

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Unfortunately, more Americans retire while having outstanding mortgage debt, and the percentage of retirees with mortgage debt increase sharply every year. This does not bode well for the future retiree. Mortgages are associated with low-interest rates. This adds to the main reasons most people are reluctant to pay off their mortgage early; however, there a variety of compelling reasons to eradicate this monthly obligation before retirement: Payment of mortgage before retirement brings the peace of mind. It is better to discharge this obligation when you are young and can work rather than when you are aged with little income.

Since this housing bill is the biggest monthly expense, getting rid of it will enable you to cope with life on a reduced income after retirement.

Retiring mortgage-free implies that you will not make unnecessary decisions such as disposing your stocks, funds or other important assets at a loss to discharge mortgage obligation.

Most retirees depend on their social security benefits and periodic withdrawals from taxdeferred retirement accounts such as 40(k) or an IRA. If Social Security is the main source of income, you will not be called upon to pay tax. More withdrawals from your retirement accounts will subject a large portion of social security benefit to tax. If you have an unpaid mortgage, then you will end up paying more tax on Social Security benefit, because you will be required to make large withdrawals from your IRA to discharge the mortgage. If you do not have a mortgage, then you will not be required to withdraw much, and you will consequently avoid paying tax on Social Security Checks.

Real estate is the best alternative safety net after retirement. A fully paid off mortgage can be reversed to allow the holder to draw on the equity of the real estate while continuing to reside there.

The main merit of a reverse mortgage is that it does not require payment until the holder moves

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MORTGAGE

out of the premises permanently. The holder can stay in the property and generate considerable income. A reverse mortgage should only be undertaken if the holder has financial constraints in retirement, because it takes away your ownership of the home and your children’s ownership of their real estate inheritance.

Before undertaking it, researching the product is important since the fees can be higher than expected. The loan becomes due immediately after moving to a new residence (Nakajima & Telyukova, 2014).

Retirees have a variety of strategies in which they can reduce their housing costs after retirement.

Some of them include selling and downsizing to a smaller house, relocating to a less expensive city, renting a spare room, or reversing the mortgage to tap their home equity. Alternatively, they can share a home with independent family members who will help them discharge some of the living expenses. Since mortgage payments deplete savings that could have been used to discharge other obligations, mortgage-holders should aspire to become mortgage-free by use of various techniques as stipulated below:

mortgage and cater for the acquisition of another home in a more affordable area.

If the real estate has little equity, then the mortgage holder can refinance to a better rate.

This is a remarkable alternative option since the mortgage holder will keep the mortgage, but the monthly mortgage payments will consequently reduce.

It is crystal clear that payment of mortgage before retirement guarantees retirees a lifetime of bliss. Using a mortgage to finance the acquisition of real estate creates a liability that increases living expenses. This liability becomes the biggest burden after retirement.

It is advantageous to focus on discharging this obligation before retirement with an aim of reducing housing expenses. Failure to pay the mortgage before retirement increases the chance of being adversely affected by an increase in inflation. It is hectic for a retiree to cope with mortgage payment during inflation and still be left with sufficient cash to discharge other living expenses. (Welch, Apolinsky & Busby, 2014).

Determine the year of retirement and enter into a mortgage agreement with a payoff that coincides with the same year. This option might pose a challenge if you are not maxing out your 401 (k) and also if you have existing consumer debt.

Move to a lower cost neighborhood or downsize after retirement. Disposal of your mortgage after retirement can be a good idea to get rid of mortgage payment burden. Caution must be taken when implementing this option to avoid capital losses. The property’s disposal value should be sufficient to repay the outstanding

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Frazier Group Realty, Inc. As you venture into the World of Real Estate, we can help you put the pieces together and Naviagate you into Home Ownership

Ruby L. Frazier President License #01751773

Briana M. Frazier Broker License # 01751473

Jessica E. Frazier License # 01817312

Erica L. Frazier License# 01791095

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

Making Clients for Life

3739 6th Street, Riverside, CA 92501 Office: (951) 686-5261 Fax: (951) 686-5264 www.fraziergrouprealty.com

YOU

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AGENT RELATIONS Clients, colleagues, cooperation, and competition are all words beginning with the letter “C”. Have you ever thought about how many words begin with the letter “C” that are required or necessary for a successful real estate transaction? I have. I have a long list of them, and I challenge you to try and develop your own. I could go on to write about commissions, consideration, closings, and cooperation to give you just a few to get your motor running.

With “C” words in mind, I want to talk about one in particular, cooperation between brokers.

What does it mean to the buying and selling agent relations? Now, to be perfectly clear I am thinking only of business, not relatives, and not any other kind of consensual relations. Indeed, if we had the other kind we might be kinder and more respectful of the challenges we all face in providing a standard of care in representing our respective clients.

Cooperation leads to closings. This is another “C” word, that must be our focus. Did you know that is why your clients come to you? Through the process of representation we end up fast friends with many of our clients. However, that is not what initially brought them to you. Do you think they picked you from an ad in the paper and said, “I think I will call Mary and see if we can become friends? I will pretend that I

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have a real estate need to get the party started.”

No, they called because they have a desire to close on real property. Whether buyers, or sellers, their goal is to close. It needs to be our goal as well. When we fail to close, it is safe to say we are unsuccessful. In the real estate industry success is measured by closing, a very important “C” word.

First, I would like to assert that buying and selling agents are colleagues in the real estate industry, not adversaries. We are not competitors, and certainly no more so than any other profession.

Initially, we may, or may not, have competed for a client’s business. However, once the client makes his or her choice for representation, then we are no longer competing with each other. Cooperating agents are colleagues. They share a mutual interest, and that is to close the property for their respective client.

Why do we fight? Is it because the mentality of competition puts us on the defensive and fails to create the framework for a congenial working relationship? All viable professionals are potentially competition for each other.

However, the relationship between professionals cannot be acrimonious. It is unacceptable for us to demean and disrespect one another. I fully appreciate how hard the listing or selling agent works. I have been in both positions at various

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YOU

times. It is not a matter of whether the other agent has done what I think they should.

Who am I? I did not write the rule book on agent responsibilities. I do not know the other agent’s challenges, or the demands placed upon them by their client.

However, because of our common goal, closing, I must always keep the lines of communication open and a spirit of goodwill.

Is the other agent really so different from you? I think not. If so, they will not last in an industry that demands uncompromising honesty and hard work.

Is it really so out of the question for me to help out, or compensate for my colleague?

How many times have I heard, “That is not my job”? In actuality, whatever is required to close the escrow is my job. That is why we are not compensated until the closing is completed. Honestly, can you imagine the piles of unfinished work if we were? I have a dear friend that suggests the whole world should work on commission. Everything would be so much more efficient!

Dianne Langston

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POWER AGENT SPOTLIGHT

The Hidden Gem of Real Estate: PROPERTY MANAGEMENT While focusing on the next listing and working tirelessly on the closing, hundreds and even thousands of lost revenue every month goes undetected through property management.

was consumed with a spinal cord injury, three major surgeries, and uncontrollable seizures while I faced economic disaster. Beyond dismay, I began to think about my future, retirement, college for my kids, and the mounting debt that I was collecting. While my doctors stated, “You can’t go back into your field and you need to face the possibility of never working again,” I stood with my faith in God; I knew generation wealth was His promise and something getting ready to happen. Property management fell right into my hands.

A

t thirty-eight years old, I was climbing the non-profit employment ladder and making a name for myself. Known for quality programming for youth in San Joaquin County, I was tragically hit by a car which caused a spinal cord injury that took the life I came to know and everything I accomplished in my career thus far. From 2005 until 2008 my life

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In October 2008 with faith and strength to go for the life, I took my first job against doctor’s orders in real estate as a “Resident Manager”, for a fifty unit complex not knowing anything about this hidden gem. With flexible work schedules and the ability to work from home, I knew then this was my path to take for generation wealth. Going for my first certification, “CCRM,” this opportunity was greater than I could imagine. All I could

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think about was how I never knew that this community starts with me. From commercial gem existed. As I researched and learned more property to vacation homes, whatever about the industry, I found unlimited streams of you choose should be a reflection of you. income waiting to be discovered and I wanted to share that hidden gem with everyone. In 2013 2. Knowing the laws that affect you.

I opened up DSS Management Inc. with a focus Checking and understanding city, county, in community building through investment state, and federal laws that govern the type of property. property you wish to manage will save time, help with writing up rental contracts, and During my years in the field, I have found that save money in the long run. For example, property management is the hidden gem that Stockton, CA has no rent control where as most Real Estate agents pass up. While focusing San Francisco, CA does have rent control. on the next listing and working tirelessly on the Therefore, the governing of property will closing, hundreds and even thousands of lost differ between the cities even though they revenue every month goes undetected through are in the same state. If you deal with any property management. Just imagine having an federal loans, then it is in your best interest additional monthly cash flow stream that you to look up state guidelines for HUD. A great control. Property Management will give you the resource is the Department of Housing and ability to create and manage a stream of income Community Development in California. added to your business portfolio. Whatever your goal to manage a few units or hundreds of units 3. Staffing. Staffing is a key component to here are five simple steps towards a successful being successful. Based on your desire to be stream of income through property management. full-time or just an overseer will depend on the type of staffing you will need. I suggest 1. Identify the type of property you want to all real estate agents to hire at least one manage. One of the biggest mistakes a real person to handle property management only. estate agent will make is managing property This person should be diverse in the property they are not ready for or have a passion for. The management and hold certifications for this property you choose to manage should be an field. If you just want to oversee and not be extension of your personality. For example, totally involved, then find someone whom DSS Management Inc. focuses on community you feel is trustworthy in your office who building through property investment. can handle multiple tasks in one given day.

Our goal is to restore neighborhoods by DSS Management Inc.’s staff consists of creating an atmosphere where residents maintenance manager, maintenance crew, and owners buy into the belief that a better resident managers, office manager/assistant,

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vendors, volunteers, and seasonal part-time workers, because we are full service property management company. It is also recommended for real estate agents who want to get in this field take CCRM class.

4. Accounting Structure. A good accounting structure is the key to a smooth operation.

Depending on how many units you wish to manage will determine your accounting structure. Quick books, Access, and Excel are great databases to start. These databases are simple to understand and easy to follow.

With growth property management software, technology will be very important to your stainability in this field. DSS Management Inc. has a system called Owners Online Management (OOM) which allows the owner and investors access to their accounts via an online portal twenty-four hours a day. This is a great benefit for our out of city, state, and oversea investors. It also frees up our staff to focus on the running of the properties and future investors. Trust accounts require very detailed accounting, and it is important to have someone who understands the laws surrounding these types of accounts.

5. Marketing strategies. Good market strategy will have a one to five year plan in place to expand and retain current business. Many real estate agents ask how and where to start,

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DSS Management Inc. has a system called Owners Online Management (OOM) which allows the owner and investors access to their accounts via an online portal twenty-four hours a day. and two important aspects will start your marketing strategy for potential clients at no or little cost to you.

A. New potential homeowners- All new homeowners are thinking about retirement, college funds for their kids, and a desire to have extra money to live life. Explaining to them the benefits of investment property for a sound economic portfolio will keep you in their minds for property management in the future.

B. Previous client-All clients who bought their first home or second home through you are all potential clients for property management.

Give them a call or email letting them know about your new services you are offering.

You will be amazed that one call or email will spark a fire, and before you know it you are signing property management contracts.

Following these five simple steps will allow a real estate agent to integrate property management into their business and create a continuous flow of income.

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Jeanine Davis CEO/Founder DSS Management Inc.