Fall 2014 by San Jose Real Estate Investors Association

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Dedication of Issue: Jeb Henley, 1950-2014

beloved SJREI member and friend by Geraldine Barry

eb Henley, my dear friend, business advisor, SJREI celebrity, adventurer, and contributor to this magazine passed away suddenly last month. Jeb was a very special person who touched our community in ways that are too numerous to articulate. We teased him and laughed so much together. He was missing his index finger, an accident sustained in his youth, and we would give him hell for it - we would say “Stop waving that hand, you’re scaring people!” and he took it all in stride. He was generous, kind, supportive, and mentored me, (and many at the SJREI Association) helping me take ownership of my business in ways that I never thought possible. I have not met a lot of businessmen that could come close to Jeb and his altruistic nature. He pushed me to perform, and I did. Jeb had asthma, and assumed that was the problem with breathing that he was having, but in fact it was undiagnosed heart issues. The day before he died I spent the afternoon with him at my home. As always with Jeb, it was a productive and fun time. Together we recorded a podcast for a new segment we were working on. Funny, in retrospect it seemed prescient, but he reminded me of all the progress that we have made this year business-wise. It was as if he wanted to ensure I knew what he knew. My son Colin came home from football practice and kissed me when he walked into the kitchen, and Jeb said, once Colin left the room, “Look at the great job you are doing with that boy he loves you!” That was Jeb- always building others up. Our SJREI meetings now have a big hole in the lineup - Jeb presented the market updates, and he and I co-taught classes together. He was brilliant as a broker and very articulate - his insights and ability to identify real estate trends and capitalize on them was really amazing. We are putting together a book for his children, Jessie and Jonathan, so they have something wonderful to remember him with. There are stories and photos that they never heard highlighting the type of person Jeb was. I want them to know

know how much we loved him. Essentially, it will be a love letter to them from him filled with the many lessons that he taught us. Jeb loved his children, and we spent many hours together discussing and analyzing the nuances of each. I want to ensure that they know how important it is that they push forward and create loving, happy lives and execute on their dreams. That is simply all that Jeb wanted for them. They lost their mother a few years ago to cancer, so these two young people have experienced too much tragedy in their young lives. Life is precious. This again highlights the fleeting nature of it and reminds us that there are no guarantees. Through his work and through his beautiful children, Jeb’s spirit will live on. The writer Albert Camus once said, “In the midst of winter I discovered there was in me an invincible summer.” When I think of summer, I think of Jeb; I think of convertibles and his love for cars. I think of his smile. I think of his travelling. His invincible spirit lives on. Rest in Peace Jeb,

Ger

Photographer - Aaron Vandiver

Welcome: Publisher’s Note:

Dedication to Jeb Henley, beloved SJREI member and friend - a light in our organization was just extinguished... By Geraldine Barry

Advice:

I Survived Real Estate October 24, 2014: A black tie affair not to be missed, featuring industry leaders. Glamour, Los Angeles style, at the beautiful Nixon Library.

5 3

inform all real estate professionals. By Geraldine Barry

By Geraldine Barry Before You Invest - Check Under the Hood By Jeffrey Hare, Attorney at Law

Analysis:

B of A’s Fine: Waiting For the Next Financial Shoe to Drop By Dr. Christopher Thornberg, PhD.

Snapshot from the County Assessor’s Office

Larry Stones’ Much Anticipated Annual Report: Santa Clara County breaking new highs. Jobs are the New Driver in the Economy: Home Gains Now Driven by Jobs, Rather Than Rebound Effect By Dr. Jed Kolko, PhD. Trulia, Chief Economist Altos Research: Sneak Peek at The 2015 Housing Forecast - A contrarian view. By Michael Simonsen, Altos Co-founder & CEO

Features Sharon Lechter: CPA, CEO, Author, Wife & Mother: Sharon graces us with her wisdom and clarity when it comes to the game of life, sharing her practical approach to love, business & money.

16 18

By Geraldine Barry Reviewing Real Estate Connect: Redfin’s CEO, Glenn Kelman, wins the prize for an informationpacked presentation with kernels of knowledge to excite and

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Contents

BiggerPockets Visionary CEO: Joshua Dorkin

How one man made real estate education transparent and accessible for all. By Geraldine Barry How Fundrise Developed a Game Changing Strategy Technology is helping create Alternative Sources of Financing with Fundrise leading the way. By Geraldine Barry A Stadium-Sized Passion: Santa Clara Mayor Jamie Matthews

An inside look at how great leadership can change a city! By Geraldine Barry Jason Hartman’s Ultimate Winning Equation Strategy is the name of the game. By Michael Grigelevich

Basics:

Imagine: Success Conquer the mind and the rest will follow... By Lori Greymont

From Academia To ARVs: Rocky Li’s Wild Ride The Enlightening & Terrifying Journey From PhD to Investor By Geraldine Barry

Data is Power: Pam Blanco. By JoHannah Ash

BLOOM,DOOM,OR GLOOM By Carole Rodoni

The Shanghai Express By Alain Pinel

REI VOICE: Our Mission To You By Geraldine Barry

Calendar Investor Resources Ger’s Tuigim Column

47 46 44

REI VOICE MAGAZINE FALL | 2014 PUBLISHER GERALDINE BARRY 408.264.3198 GERALDINE@REIVOICE.COM EDITOR-IN-CHIEF HANNAH ASH HANNAH@REIVOICE.COM FEATURES EDITOR & CONTENT STRATEGIST PROFESSOR MICHAEL GRIGELEVICH MICHAEL@REIVOICE.COM ASSOCIATE EDITOR SUSAN O’CONNELL SUSAN@REIVOICE.COM DIRECTOR OF DESIGN I. SULEMAN SULEMAN@REIVOICE.COM DIRECTOR OF PHOTOGRAPHY CHRIS DAO ADVERTISING SALES BRIGITTE JONES 408.898.7534 BRIGETTE@REIVOICE.COM PRODUCTION ASSISTANT BELLE LI BELLE@REIVOICE.COM

REI VOICE™ Magazine A Publication of SJREI Association™ Reproduction or use of any editorial or graphic is prohibited. To request reprints or reprint rights, contact info@REIVoice.com. REI Voice Magazine www.REIVoice.com 408.264.3198 SJREI Association and REI Voice Magazine make no representations or warranties regarding the content, accuracy, or validity of the advertisements or of the articles contained herein. All persons should exercise due diligence and consult with legal and tax professionals before making any investment decisions.

PUBLISHER’S

NOTE Money changes everything! As a young student and immigrant, I had almost none. I stood alone in the U.S., intimidated by all the confident, clearly wealthy Americans that surrounded me. It was a very different scenario from the way I was raised in Ireland, my birthplace and where I grew up. My parents were comfortable financially, and they clearly loved their eight children, but they rarely gave us compliments. The expectation was simply that one performed and became financially independent, and we did. In retrospect, a few strokes would have been nice and would have prepared me for the American system of being totally confident, even if one is not completely competent. Yes, you read correctly - it took me years to figure that out. Even if American’s are mediocre at their task, they appear to be confident beyond belief. I admire that confidence, so I worked on developing it. Confidence can be key to growing your earning potential. After all, we would rather do business with a confident person, right? I made a decision that I wanted my life to be solid in every way, and I knew the financial piece played a central role in a stable life. So, I decided “I want that; I’m going for it.” I put my head down and made financial security a goal; I realized that I could do it. Once you accept this realization and do the work, it can be life changing. When you change the way you think about money, you not only change your bank account, but your life. The past several months have been one learning lesson after another. The bottom line is simple: positivity rules the roost. Americans got that one right! In the face of incredible odds, we can do and achieve whatever we set our minds to do when we act in accordance with our intentions. I’ve certainly found this to be true in my own life. I want to inspire you to do the same whatever your goal is. Life is short... This issue focuses on just that: acting in accordance with our intentions. Action, of course, is required to attain results. This issue is packed with thought leaders and industry pros to stimulate you and move you to the next level with your investing strategy. We tell the story of how Joshua Dorkin, a former special education teacher, built Bigger Pockets and transformed real estate education as we know it today. We learn many lessons from the Sharon Lechter, who co-authored Rich Dad, Poor Dad and served as the Rich Dad CEO for ten years. She takes us through financial literacy to taking charge of our lives through financial control, and she even shares her secrets to a happy marriage. Next we have Fundrise, a game changing company on the move, who makes it possible for the average Joe or Jane to positively change their communities with small investments that yield real returns. We’ve put the spotlight on real investors, too those who deliver real returns for your portfolio. They take the negative aspects, like fixing holes in the wall, managing tenants and toilets, and honestly share their expertise so you can focus on wealth creation and the big picture. Strategy is important, yes, but so is how you think about your money and your life. That should be your ultimate strategy. Ditch the negativity now: there is no time like the present. Get out there and get what you want, starting today. Focus on your resources. Focus on your strengths. Focus on what you can do to create the life you want for yourself and your families. Use this magazine issue as a guidepost, a motivational tool and a reference for achieving the success you want and absolutely deserve. Join us on the journey on social media, participate, elevate your life and together we can change YOUR world!

Geraldine Fall 2014 REI Voice

Features by Michael Grigelevich

Jason Hartman’s

Ultimate Winning Equation

It worked for him - it can for you. Strategy is the name of the game.

ason Hartman, the founder and CEO of Platinum Properties Investor Network and creator/host of the very popular “Creating Wealth” podcast -- now ranked by iTunes as the #2 real estate podcast in the world -- has a simple goal: empowering people to control their destinies by prudently investing in income properties. Refreshingly no-nonsense in his approach to real estate investing and educating investors, Hartman abides by a simple model he calls the “ultimate investing equation” that features his trademarked “inflation-induced debt destruction” principle. The more one learns from Hartman and about him, it’s clear why his podcast downloads stack up to 5 million or more: he’s down-to-earth, genuine, and transparent, and he’s constantly looking out for his investors and personal clients. Born to American parents in Germany who soon relocated to Upstate New York, Hartman and his family eventually settled in Los Angeles when he was four years old. Coming from a business-oriented family, he felt the pull of entrepreneurship at a young age. During his college years in Orange County, he decided to follow in the footsteps of other restless business icons: he left college and the “boring bureaucrats” behind to make his own way in the world; with over 20 years of experience in real estate and accruing $400,000 by age 24, Hartman hasn’t looked back since.

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What does he love about the industry? Hartman quickly points out that the first word in real estate is “real;” he enjoys investing in a tangible commodity that can’t evaporate like stocks. After all, he says, “everyone needs housing; it’s part of Maslow’s hierarchy of needs.” As long as population grows, there will always be a need for more housing, and, according to Hartman, “we can outsource call centers; we can outsource manufacturing; we can even outsource our retail to the internet; but, we can’t outsource housing.” So, in many ways, real estate is the ultimate in sustainable income. Hartman spreads his practical knowledge through his 19 separate podcasts, the most popular being “Creating Wealth,” “American Monetary Association,” and “Speaking of Wealth.” Currently 7 years into podcasting, he realizes he could monetize his shows, but instead he shares them with clients and uses the information to stay ahead of the curve and feed his voracious appetite for knowledge. According to Hartman, the shows are “really part of my studying. I get to interview brilliant people. I’m constantly reading, so I invite guests to come on the show and I get to ask them questions not covered in their articles [or books].” Attracting top-tier guests from around the world to speak about diverse subjects from business to economics to leadership, Hartman’s shows are valued by a dedicated, consistently increasing audience.

Features

Platinum Properties Investor Network, Hartman’s real estate investment business, follows a simple business model: they educate investors; provide property referrals to their network; and, finally, leverage their buying power to provide clients with good prices and great service. Hartman suggests investors limit themselves to 3-5 markets; getting too big too fast can be risky, but, as he instructs, “you don’t want to have all your eggs in one basket, which is why I recommend investing in a couple of markets.” Hartman’s “ultimate investing equation” forms the bedrock of his practice. Put simply, this equation works in the following way: buy an income property with 70-75% bank-financing, secure a lower interest rate, and then factor in inflation, and you have a winning equation. This principle, known as Hartman’s trademarked “inflationinduced debt destruction,” posits that with a rate of inflation higher than your interest rate, your debt will shrink as the worth of money gets devalued. According to Hartman, this is the “hidden wealth creator.” If a client feels confused about any part of the process, Hartman and his company provide solid support. He operates a completely transparent business and, as he

points out, “we’ve never been sued by a client. Ever.” This is a true rarity in times of economic upheaval. Hartman makes it a point to tell investors “I cannot control this investment; you have to go into this with your eyes wide open.” He urges clients to do their due diligence and understand the nature and potential risks of investing in a given area: “we’re honest, realistic, and logical.” Coming from this perspective, Hartman tells his clients to become direct investors with their name on the deed; this way, they retain control over their property and finances. When all is said and done, Hartman enjoys the industry and the model he’s carved out for himself. An avid supporter of the “work from home movement,” Hartman closed his physical office 3 years ago and has no desire to rush back; he pursues his business passions on his own terms. He also employs 130 virtual American workers who work from home, a statement not so much about politics as it is about “quality and hassle.” Pleased with the way things have turned out, Hartman’s success reflects his own theory: “If you’re doing what you love -- and following your passion, you will invariably live a life of meaning and enjoy success.”

Jason Hartman is the CEO of Platinum Properties Investor Network, The Hartman Media Company and The Jason Hartman Foundation. www.jasonhartman.com

Pleased with the way things have turned out, Hartman’s success reflects his own theory:

“If you’re doing what you love -- and following your passion, you will invariably live a life of meaning and enjoy success.”

Fall 2014 REI Voice

Steve Forbes

Big name guests John Mauldin

✓ ✓ ✓

Meredith Whitney

•

Over 5,000,000 downloads George Gilder

✓ ✓ ✓

Jim Rogers

Ken McElroy

•

Listeners in 164 countries Robert Kiyosaki

Harry S. Dent

✓ ✓ ✓

Advice

I SURVIVED REAL ESTATE:

By Geraldine Barry

An Event Not to Miss

n October 24th, 2014, the Norris Group’s black-tie charity gala I Survived Real Estate will come to Yorba Linda’s famous Nixon Library. SJREI is proud to be a platinum sponsor of this wonderful, award-winning event, now in its 7th year. Hosted by Bruce Norris, famed investor and founder/president of the Norris Group, I Survived Real Estate raises money for Makea-Wish of Orange County and Inland Empire, as well as St. Jude’s Children’s Research Hospital. Over the past 6 years, the event has raised over $430,000 for charities. A panel of real estate experts will tackle a variety of topics related to current state of the industry, and the legendary White House Catering company will provide food for the event. Scheduled to run from 4 to 10:30 p.m., this is one event not to be missed. The panel features the following highly regarded industry insiders:

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Bruce Norris, President of the Norris Group and host of the event; Beth Peerce, Vice President of the National Association of Realtors; Christopher Thornberg, co-founding Principal of Beacon Economics; Sean O’Toole, founder and CEO of Property Radar; Bill Cosgrove, the 2014/15 Chairman of the Mortgage Bankers Association; Doug Duncan, Chief Economist for Fannie Mae; and David Cogdill, President and CEO of CBIA. We are delighted to be involved with this event, and we look forward to hearing these thought leaders discuss the possibilities 2015 holds for our industry. SJREI would like to cordially invite our community members to join us at the event. Ticket and event information will be available on our new www. sjrei.com site. Please check for updates; we look forward to seeing you there!

2014

D E V I V R U S I E T A T S E L A RE

Hosted By

A Powerhouse Lineup of Top Industry Experts Converge for The State of Real Estate 2014

On October 24, 2014, join The Norris Group and our panel of industry experts at the Nixon Library in Yorba Linda, California for another award-winning evening. Get the inside scoop on top real estate trends from the leaders shaping our industry. Come dress up and enjoy a fine meal in the Presidential East Room, network with successful real estate professionals from all over California, and help raise funds for kids with life threatening medical conditions.

THE PANEL

Bruce Norris President The Norris Group

THE CHARITY

Christopher Thornberg Bill Cosgrove Principal Chair Elect Mortgage Bankers Association Beacon Economics

Doug Duncan Chief Economist Fannie Mae

Ticket/sponsor funds directly beneﬁt Make-AWish and St. Jude Children’s Research Hospital. In six years, we’ve raised nearly $430,000 for charity.

Sean O’Toole Dave Cogdill Beth Peerce President CEO & President Vice President National Association of Realtors PropertyRadar.com CA Builders Industry Association

THE SPONSORS MVT PRODUCTIONS

Adrenaline Athletics Coldwell Banker Town & Country Elite Auctions In A Day Development Inland Valley Association of Realtors JenniferBuysHouses.com Keystone CPA Las Brisas Escrow

Leivas Associates Northern California Real Estate Investors Association Northern San Diego Real Estate Investors Association Personal Real Estate Magazine Pilot Limousine Primary Residential Mortgage

uDirect IRA Realty 411 Magazine Real Wealth Network Rick and LeaAnne Rossiter SONOCA Corporation Spinnaker Loans Tony Alvarez Westin South Coast Plaza

www.ISurvivedRealEstate.com or 951-780-5856

Advice

before you invest Check Under the Hood

solve the problem – it just aggravates the situation. Tempers flare. Frustration takes over. Your team starts to fall apart. Any chance of reaching your goal evaporates; you may even end up in a lawsuit.

Getting started as a new real estate investor is like planning a road trip. You need a good map, some basic supplies, and a working car in good condition. New investors are often told: “Put together a team.” A team that consists of professionals: contractors, real estate agents, tax advisors, attorneys, financial planners, and, of course, investors. Your investment team is like a good car – but you need to check under the hood. Typically, a real estate investment crisis is caused by: 1. a need for additional capital to cover an unexpected expense, or 2. a delay in expected payment. The contractor suddenly discovers that the investment property needs a new foundation. The buyer announces they can’t close escrow on time, and your hard money lender wants their money. Of course, these things happen frequently and, hopefully, you and your partners have worked out a contingency plan, put it in writing, and everyone knows exactly what is expected of them. Or not. Chances are when you form a team, you focus mostly on the positive outcomes, not the failures. Like a road trip, you plan on what you’ll do when you get there, not what happens if you don’t. When a crisis hits, you quickly find out a lot about your team members. There are excuses: “I’m out of cash,” or “I’m really busy.” Then comes the blame game: “I told you this would happen,” or “So-and-so really screwed up!” Of course, none of this helps www.reivoice.com

So, how can you avoid this? You cannot prevent lawsuits, but you can minimize the risks, and the problems, by being very selective about forming your team in the first place. You need to do as much due diligence selecting your potential partners as you should do with the investment properties you want to invest in. Check their background, review their financials, and most importantly, get a firm financial commitment in an amount relative to the potential risks. Establish objective performance parameters and specific milestones so that you will have early indicators of problems. In other words, check the oil, the water, and the tires. When one of your team members misses a deadline or fails to make a capital call, it’s like a dashboard warning light of trouble ahead. Pull over and find out what’s going on. Communicate! Nothing breeds discontent and anger among partners than the failure to communicate timely and

by Jeffrey B. Hare, Attorney at Law

accurate information. One way to ensure that you are protected is to set up the proper form of entity, so that you are not personally at risk should your partners fail. Depending on the specific circumstances, you might consider setting up a Limited Liability Company (LLC), a Corporation, or even a Limited Partnership. In addition to providing a form of asset protection, formation of an entity usually involves a detailed written agreement that spells out individual duties and responsibilities. Read it and make sure you understand it. If not, ask questions. Don’t make assumptions. Many times, investment partnerships are thrown together and bound by nothing but good intentions and promises made after consuming too many adult beverages. If the deal goes south, you don’t want to go with it, but you end up riding in the tow truck because you have no other way out of the wreckage that was your investment plan. Spending a few dollars and a few extra minutes checking under the hood before you depart on your investment journey may turn out to be the best investment decision you ever made!

Advice

B of A’s Fine: Waiting For

the Next Financial

Dr. Christopher Thornberg, PhD Contributing REI Voice Columnist, Co-founder of Beacon Economics

Shoe To Drop JP Morgan did it. Citibank did it. Now Bank of America is about to do it as well—pay the U.S. government a whopping fine for their role in the subprime mortgage disaster and the financial market meltdown that followed. For Bank of America, the reported amount is $18 billion, one of the biggest hauls for the government to date. You might view these fines as well-deserved comeuppance for institutions at the center of the subprime mortgage mess, and perhaps a good disincentive to future similar behavior. Frustratingly it is neither. Rather, the wrong targets are being penalized and we are only encouraging the same kind of behavior to occur again. The only question is where and when it will pop up.

“When consumers realize they can no longer expect that appreciation bonus to subsidize their consumption habits, they will very likely pull back on spending.” Dr. Thornberg The ‘bad’ mortgages Bank of America is being penalized for didn’t emerge from the bank itself. Rather, these products were brought into B of A’s balance sheet as a result of its purchase of Countrywide in 2008, at the start of the financial crisis. The purchase was the brainchild of Ken Lewis, Bank of America’s CEO at the time. It was a victory for him, as two previous attempts to purchase the lender were rebuffed by the former head of Countrywide and its CEO, Angelo Mozilo. These two CEO’s—and the boards of directors who rubber stamped their many unwise decisions—clearly bear direct culpability for what happened. But both these gentlemen have quietly disappeared into the sunset. They weren’t mentioned in the settlement. Rather, it is Bank of America’s current shareholders who will be paying the $18 billion in fines (Disclosure: this includes myself since I have equity in holdings in broad based index funds that include all the large banks).

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If this seems odd, well, you’re right. Mr. Mozilo was directly implicated for his role in the subprime mortgage mess. He was fined a little over $60 million, a fraction of his earnings during his stint at Countrywide. And Ken Lewis, whose quixotic desire to buy Mozilo’s firm had to be one of the worst financial decisions in the history of banking, isn’t being held accountable for much of anything. Nor, for that matter, are the boards of directors for either company who, in theory, are supposed to be representing the best interest of the shareholders. When the big banks were rescued by direct intervention from the Federal government, the fear of many economists was one of moral hazard. By not making these institutions responsible for the mess they had made, the nation’s leaders were simply encouraging similar behavior in the future. But bailing the banks out was never the issue since the ‘banks’ are nothing more than a legal form of joint ownership of a variety of assets by thousands and thousands of owners. Bad ‘bank’ behavior was nothing of the sort—it was the bad behavior of those running the banks at the time, men who today are still very, very wealthy in large part because of their roles in the run up to the meltdown. Rescuing the banking system was a no brainer. Making sure that those running the banks during this time of massive malfeasance were punished for their role was an even simpler call—and yet has been largely ignored not only by regulatory institutions who have been glorifying the pointless wresting of wealth from truly innocent shareholders, but by the new set of pointlessly smothering regulations the financial system now has to endure. With such skewed incentives, we have simply printed a license to steal in the financial world. The only question is what new form of malfeasance will be dreamed up to enrich the next set of executives in the system, whose primary lesson from past crises is how to lawyer up and pre-indemnify themselves from their own future actions.

Advice

SnapShot

from the Santa Clara Assessor’s Office Larry Stone BY GERALDINE BARRY mine of information for those in the different counties who like data and want a fuller picture. It provides valuable insights into the current real estate market, as well as insights into the direction of future property taxes in Santa Clara County.

Construction is hot in the Bay Area - office and multi-family are back with a vengeance and Silicon Valley is thriving with economic bustle and job creation. The County of Santa Clara Assessor’s Office recently published its much anticipated 2014 Assessor’s Annual Report. This report summarizes important assessment information useful to policy makers, public agency finance directors, leaders in the real estate and business communities, members of the media, property owners, and real estate investors. Larry Stone was the first Assessor to complete such a report, fifteen plus years ago, and now many of the other Assessors have followed suit, creating a

This particular report provides extensive assessment roll data about each of the County’s 15 cities. It contains data detailing the type of properties and their assessed values, separated by city and school districts. We extrapolated the highlights from this report to share with you.

Interesting Facts from the Report: In 2014, the net assessment roll for Santa Clara County increased 6.8% from $335 billion to $357 billion - the third highest roll growth in County history. In 2013, the net assessment roll increased 8.35%. It is noteworthy that the County’s high-water mark occurred in 2001 when the assessment roll grew by 15.6%. The record would have been broken in 2014 had the California Consumer Price Index (CCPI), set statewide, been the standard

2% allowed by Proposition 13. Instead the CCPI was .454%, the secondlowest since the voters approved Proposition 13 in 1978. Since 90% of all the assessed value of property increased by only this amount instead of the customary 2%, total assessments were $5 billion lower than they would be in a normal year.

Total Taxes Collected in Santa Clara County: The total taxes collected in Santa Clara in 2013-2014added up to $3,446,947,437.

Affordable Housing is where? •

An interesting fact: a full 72% of the assessed value of affordable housing is in the city of San Jose.

•

The Assessor’s Office identified 37,987 properties, primarily homes, that were valued less than their purchase price, therefore qualifying them for a reduction in the property’s assessment. Last year, 80,798 properties qualified for a reduction. The market truly determines whether the assessed value of a property is increased, decreased or restored.

•

electronically (e-file), 22,000 more than a decade ago; this created significant savings. The average cost to process an e-filed statement is $3.31, while the average cost to process a paper statement was $9.45

In 2014, 61% of businesses filed their property statements

•

Business property accounted for 21% of all assessment appeals, involving $7.4 billion in disputed assessed value.

•

Silicon Valley has enjoyed a robust economic recovery. The steady month-over-month declines in unemployment have fueled a building boom in office and multi-family construction not seen since 2007.

Largest Taxpayers 2014-2015 Taxpayer

Taxes Paid*

Tax Payer

Taxes Paid*

Pacific Gas $ Electric Co.

$33,589,502

The Irvine Company LLc

$12,441,989

Apple Computers

$19,505,152

Westfield Malls

$10,135,894

Cisco Technology

$15,668,739

Pacific Bell Telephone Co.

$9,353,109

Google Inc.

$14,724,027

Network Applicance Inc.

$8,241,488

Blackhawk Parent LLC

$12,443,623

Nine Largest taxpayers on the 2013-2014 secured tax roll, inculdes local and state assessees. Source: Santa Clara County Tax Collector July 2014

Santa County Property Tax Revenue Allocation 2013-2014 Taxpayer

Taxes Paid*

Tax Payer

Taxes Paid*

K-12 Public Schools

45%

Cities

13%

County

18%

Community Colleges

Redevelopment Property Tax Trust Fund

11%

Special Districts

The County Assessor’s Office does not calculate taxes, collect taxes or allocate tax revenue. All data provided by the Santa Clara County Assessors Controller’s Office.

Thank you to Larry Stone, and his staff, for sharing this report. The complete report is available online at www.SCCAssessor.org Fall 2014 REI Voice

Advice

Jobs are the New Driver in the Economy

Home Price Gains Now Driven More By Jobs Than By Rebound Effect For the first time in 26 months, no housing market had a year-over-year price increase above 15%.

The Trulia Price Monitor and the Trulia Rent Monitor are the earliest leading indicators of how asking prices and rents are trending nationally and locally. They adjust for the changing mix of listed homes and therefore show what’s really happening to asking prices and rents. Because asking prices lead sales prices by approximately two or more months, the Monitors reveal trends before other price indexes do. With that, here’s the scoop on where prices and rents are headed. Prices Rise 0.8% Month-over-Month in July The month-over-month increase in asking home prices of 0.8% was in line with the average monthly gain over the past year, settling back down after a 1.2% month-over-month in June. The quarter-over-quarter increase of 2.5% remains below the level of last spring’s price spurt, when the quarter-over-quarter increase was 3% or higher in March through June 2013. Although prices aren’t rising as fast as they did in spring 2013, price increases continue to be widespread, with 97 of 100 metros posting year-over-year price gains, and 94 posting quarter-overquarter gains.

July 2014 Trulia Price Monitor Summary % change in asking prices

# of 100 largest metros with askingprice increases

% change in asking prices, excluding foreclosures

Month-over-month, seasonally adjusted

0.8%

N/A

0.9%

Quarter-over-quarter, seasonally adjusted

2.5%

2.6%

Year-over-year

7.8%

7.3%

*Data from previous months are revised each month, so data being reported now for previous months might differ from previously reported data.

As Rebound Effect Weakens, Job Growth Takes Center Stage The home-price recovery continues to change shape. For the first time in more than two years, none of the 100 largest U.S. metros

www.reivoice.com

Dr. Jed Kolko PhD Trulia, Chief Economist www.trulia.com

had a year-over-year price increase above 15%. Furthermore, the biggest price gains are mostly in the Midwest and South, with only one western market – Riverside-San Bernardino – on the top-10 list for asking-price increases.

Where Asking Prices Rose Most Year-over-Year, July 2014 Y-o-Y % asking price change, July 2014

Y-o-Y % change in jobs, Dec 2013*

Price decline during bust, peak to trough*

Riverside-San Bernardino, CA

15.0%

4.3%

-50%

Birmingham, AL

14.2%

1.2%

-12%

Miami, FL

14.1%

2.5%

-47%

Atlanta, GA

14.0%

3.0%

-26%

Detroit, MI

13.7%

-1.0%

-40%

West Palm Beach, FL

13.3%

3.9%

-49%

Cape Coral-Fort Myers, FL

12.9%

5.7%

-56%

Chicago, IL

12.9%

1.6%

-28%

Lake County-Kenosha County, IL-WI

12.7%

2.1%

-27%

Edison-New Brunswick, NJ

12.4%

2.2%

-22%

Note: among 100 largest metros. Job growth is from the Quarterly Census of Employment and Wages. Peak-to-trough price decline is from the Federal Housing Finance Agency. To download the list of rent changes for the largest metros: Excel or PDF.

Why are home prices rising faster in these markets than in places like Little Rock, Baltimore, and Rochester, where prices are rising minimally or even falling year-over-year? In part because the housing market is still recovering from the bust, and the local markets where prices had fallen most are now seeing larger price gains – that’s the “rebound effect,” which was fueled by investors and other home buyers scooping up relative bargains. But the rebound effect can’t last forever: once those bargains are gone, there’s no more room to rebound. We’re already seeing price gains slow dramatically or even reverse in some of the boom-bust-andrebound markets. As the rebound effect diminishes, local housing markets need to depend more on job growth, which is a more sustainable driver of housing demand. So are they? We compared year-over-year asking price gains in July 2014 with year-over-year job gains in December

Advice

2013, from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW) in the 100 largest U.S. metros (see note). Clearly, housing markets with higher asking-price gains have faster job growth, as the scatterplot shows: The correlation between price changes and employment changes in July 2014 is 0.53 – a strong and statistically significant relationship. (Remember that correlations range from 1 to -1, where zero means there is no linear relationship.) Detroit is the outlier, with the biggest job loss (-1.0% year-over-year) of any large metro but the fifth-highest home-price

Job Growth and Home Prices

Job Growth Boosts Rents in Largest U.S. Rental Markets Rents rose more than 10% year-over-year in five large rental markets – San Francisco, Sacramento, Oakland, Denver, and Miami. These five markets all had job growth ranging from solid to stellar.Overall, rents rose 6.1% nationally, with rents increasing more in markets with faster job growth. Although both price and rent gains are tied to job growth, rents follow a different logic than prices in other important ways. There’s no “rebound effect” for rents: markets hit harder during the bust don’t necessarily have bigger rent increases today. But at the same time, rents – unlike prices – are rising faster in higher-density metros than in more sprawling markets.

Year-over-year % Change in Asking Home Price

Rent Trends in the 25 Largest Rental Markets

Year-over-year % Change in Job Growth

gain (see table) – it also has the lowest home prices and highest vacancy rate of any large metro, so it’s a special case in many ways. But excluding Detroit, the correlation between price changes and job growth is 0.59. By comparison, the correlation between year-over-year price changes and peak-to-trough price decline during the bust in July 2014 is 0.51 (that’s the rebound effect), which is slightly below the correlation between price changes and job growth. A year ago, the pattern was different: in July 2013, home price changes were more highly correlated with the peak-to-trough price decline than with job growth (year-over-year in December 2012). Over the past year, therefore, the rebound effect has weakened, and as prices continue to return to long-term normal levels the rebound effect will continue to fade. Local housing markets will rely more on jobs and wages to support housing demand and home prices – which is another step on the road to recovery.

U.S. Metro

Y-o-Y % change in rents, July 2014

Median rent for 2-bedroom, July 2014

Y-o-Y % change in jobs, Dec 2013*

San Francisco, CA

14.3%

$3,550

4.4%

Sacramento, CA

14.3%

$1,200

-2.9%

Oakland, CA

13.5%

$2,600

2.3%

Denver, CO

11.8%

$1,550

3.4%

Miami, FL

11.6%

$2,450

2.5%

San Diego, CA

9.7%

$2,000

2.1%

Philadelphia, PA

8.8%

$1,600

0.6%

Baltimore, MD

8.8%

$1,600

0.5%

Seattle, WA

8.5%

$1,850

3.0%

Chicago, IL

8.0%

$1,650

1.6%

Atlanta, GA

8.0%

$1,200

3.0%

Los Angeles, CA

7.8%

$2,400

2.2%

Phoenix, AZ

7.5%

$1,050

2.8%

Riverside-San Bernardino, CA

6.1%

$1,550

4.3%

St. Louis, MO-IL

5.8%

$950

1.1%

New York, NY-NJ

5.8%

$3,500

2.4%

Las Vegas, NV

5.3%

$950

3.2%

Tampa-St. Petersburg, FL

5.2%

$1,150

2.5%

Boston, MA

4.9%

$2,400

1.8%

Dallas, TX

4.5%

$1,400

2.8%

Houston, TX

4.2%

$1,500

3.3%

Orange County, CA

4.1%

$2,050

1.8%

3.4%

$1,300

2.9%

Portland, OR-WA

Minneapolis-St. Paul, MN-WI

3.4%

$1,300

1.9%

Washington, DC-VAMD-WV

3.2%

$2,250

-0.2%

Fall 2014 REI Voice

Advice

Co-founder & CEO Michael Simonsen

SNEAK PEEK AT THE 2015 HOUSING FORECAST A CONTRARIAN VIEW

Today we’re publishing our first look at the 2015 housing market. Based on real-time observations of housing supply and demand, among other conclusions, we’re forecasting a 7% home price increase for 2015.

Bearish Headlines, Bullish Reality It’s scary to be a contrarian, particularly if you’re contrarian AND bullish. In retrospect this position is the most fun. If you’re right. From the report: In terms of home prices, the US real estate hit the absolute bottom on January 4, 2011. Home prices are 39% higher since then. Yet every day we see media headlines declaring “weakness” and “disappointment.” As recently as June 2015 housing, apparently, remains a chief concern for Fed chief Janet Yellen, who uses phrases like “much slower pace than expected” and “slowdown.” In our view, these attitudes reflect a myopic view of actual market conditions and conflate concerns over the mortgage industry, the otherwise-constrained new construction market, and, more broadly, the long-term financial stability of the US consumer with specific current housing market supply and demand dynamics. While these are valid long run concerns, the variables impacting home prices have proven to be driven by low available supply and growing household formation. The real-time data paints a much

more robust environment than the headlines would indicate. Demand remains high, transactions happen very quickly. Home prices are up another 9% year over year as of July, 2014. We’ve had a strong run and the American consumer is anxious to again buy real estate. The report goes into depth on a number of leading indicator metrics, and here’s one that captures the essence. This is year over year price changes for the US real estate market. You can see that we’ll end the year up about 8-9% from the end of 2013. That boost alone will help 2015 march to a reasonable appreciation rate. www.reivoice.com

12 18

Features

THE POWER TO CHANGE IS WITHIN CPA, CEO, Author, Wife & Mother, Sharon graces us with her wisdom and clarity when it come to the game of life,sharing her practical approach to love, business & money. www.reivoice.com

Features

hat is financial literacy? What does it mean for your life? Your children’s lives? I had the great pleasure of sitting down with the Sharon Lechter, CPA and CGMA, and the woman who, in 1997, coauthored the world famous Rich Dad Poor Dad along with 14 other corresponding books in the Rich Dad series. For over ten years, she led the Rich Dad Company by serving as the CEO, building its brand, book by book, into the absolute international powerhouse that it is today. In 2008, Sharon had the honor of being asked by the Napoleon Hill Foundation to re-energize the powerful teachings of Mr. Hill. She said yes, despite the country being in the midst of a faltering economy, and took on the heavy task of spreading Mr. Hill’s teachings. She released, in cooperation with the foundation, three best selling books: Think and Grow Rich-Three Feet from Gold, Outwitting the Devil, and her latest project, Think and Grow Rich for Women, released in June of 2014. A highly regarded author, Sharon also released Save Wisely, Spend Happily, in cooperation with the American Institute of CPAs. Sharon is quick to point out that cash, and where it comes from, is a hush-hush topic amongst most of us. People don’t like taking about sex, religion, politics, or MONEY… Why, exactly? People are afraid of financial statements and what they say about a person, so they tell a story and skip over the details. Sharon says the details matter -it’s time to think differently about your money, stating that you only get two options: be a “master over your money or a slave to it.” The fact that money can be narrowed down to two key options means this: it is essential to both discuss and teach our families about money. Fear is a big factor in accumulating wealth and learning how to handle it, so when we can remove fear, we can build our bank accounts and live amazing lives. Sharon got her start in financial literacy early on in life: her parents

were entrepreneurs, “the hard working, put your head down and get the job done” kind of people. Though her parents grew up in a small Alabama town called Heflin, Sharon lived in both Chicago and Florida upon her father’s exit from the military. Sharon and her only sister were the first in their families to attend college. Sharon says their college graduation was the first time she saw her parents get truly emotional. The degrees signified what her parents had been working toward for so long: they signified their hopes and thoughts turned into reality. Sharon is a big believer in how one’s thoughts shape reality. She has been happily married to her husband Michael for 34 years. Together, they have two sons and one daughter. Separate bathrooms aside, Sharon attributes her success in love to (in this order): 1. Respect; 2. Love; and, finally, 3. Brains. She attributes her wealth to the lessons she learned from her parents, in college, and through Napoleon Hill’s teachings. These lessons led her to real estate, which, Sharon notes, is a key part of the wealth puzzle. Passive income is “served through real estate,” Sharon states. Personally, she owns real estate in Arizona, Ohio, and Florida. As so many of us do, she utilizes property managers and practices hands-off investing. Sharon says that, “most wealthy people secure their wealth through real estate, even if they made their money in other ways.” She teaches the fundamentals that build a base of assets that can, literally, feed a family for generations to come.

To truly be successful in real estate, one must do a few basics, Sharon shares. First, you need to network. It’s through networking that you can forge connections and gain strong financial literacy. You must educate yourself proactively and seek out mentors from whom you can learn. It’s essential that you gain a fundamental understanding of the market in which you are invested. Do your own due diligence. Always buy for cash-flow and don’t bank on appreciation, as doing so is little more than gambling. Personally, Sharon had a learning experience when her son was in his first year of college, back in December of 1992. She learned that he had accumulated sizeable credit card debt in just a few short months away from home. She was shocked hadn’t she educated him on financial matters enough? What had she missed? Was it that her son saw her using her own credit card but never saw her pay it off (which she always did)? If her own son was vulnerable to getting a credit card on campus and succumbing to its temptations, what about others? Sharon began to explore the possibility that the pressure to spend what you don’t have was taking over the younger generations - and, as she suspected, it was indeed! This need for financial literacy ignited her interest in educating the next generation. In response, Sharon dedicated herself to financial literacy for all. She

crafted

financial

literacy

It’s all too easy, Sharon declares, to make mistakes with large amounts of money. It’s important in real estate to understand that cycles happen and to learn how and when to anticipate and plan for them. Sharon says investors must be mindful of how markets fluctuate, and that it’s better to learn from risking smaller amounts of money than larger ones. “Don’t risk the farm,” Sharon warns us. Fall 2014 REI Voice

Features board game for teenagers calledThriveTime, an innovative and experiential life game that puts teens into real life money management situations. It gained many accolades, such as a Mom’s Choice GOLD Award, the Creative Child Magazine’s 2010 Game of The Year Award, Dr. Toy’s Best Vacation Product and a five-star rating from WTS Toy Reviews. In 2008, Sharon accepted the honor of being appointed to the first President’s Advisory Council on Financial Literacy. The Council served both President Bush and President Obama and advised them on the need for financial literacy education. In 2009, Sharon was appointed to the National CPA Financial Literacy Commission as a national spokesperson on the topic of financial literacy.

fears. “Running a household,” Sharon says, “is the most important job we can do.” It is through our families and our own lives that we best learn how to navigate through life and manage various issues as they arise.

Her latest book takes aim at ways women can take hold of their innate entrepreneurial spirit. Released in June of this year, Think and Grow Rich for Women takes a look at some key issues that hold women back from thinking and growing rich. Sharon points out that women are the natural CEO’s of their own families first and can become so in other capacities when they tackle their own

Confidence must be the first thing addressed, she says, for entrepreneurs. Men naturally lay claim to expertise, whether they have it or not - while women may have it and don’t stake claim on their own territory when they should. Women need to support and celebrate with one another. Sharon says you must surround yourself with people who want YOU to succeed. She says

In a time of crisis, Sharon states, “Women take action - they find a pathway to success and often times entrepreneurship is this pathway.” Sharon points out that entrepreneurship plays a key role here, stating that, “the Great Depression was exited through entrepreneurship.” Having learned the ins and outs of being an entrepreneur from her own parents, Sharon clearly has developed a heavy portfolio of hard-hitting and, frankly, intimidating business models to most. What is her secret?

you must proceed with passion and purpose. Find a problem and solve it - that’s the basic set-up for many entrepreneurs. “There has never been an easier time to start a business with the Internet explosion that is happening and catapulting small home-based businesses to success.” “Fear,” Sharon says, “can cripple us.” We all live with it and must learn how, exactly, to manage it best -like our money -- so that we don’t become crippled. We must move from fear to true faith and show courage in spite of fear. “Courage,” Sharon says, is “acting [through faith] in spite of the fear.” She goes on to say, “winners accept the fear and run with it anyways…. it is simply part of the human condition.” Sharon quotes Napoleon Hill in Outwitting the Devil: The Secret to Freedom and Success, when he said, “the capacity to surmount failure without being discouraged is the chief asset of every person who attains outstanding success in any calling.” Though written in 1938, Napoleon Hill’s words, like Sharon’s, still ring true for today’s generations and those to come.

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Features

hile all the star-studded list of presenters had new insights and the most innovative ideas to share -- I even received personal iPad lessons from Trulia’s Pete Flint -- one powerful figure stood out from the pack: Glenn Kelman, CEO of Redfin, the most popular real estate brokerage site on the web, showed us what can happen when a software entrepreneur decides to become a real estate innovator. Really, it’s a special blend of “what if?” and actually doing it by ditching fear in the dust and just moving forward. Kelman’s story left me with boundless inspiration: I left this dynamic presentation packed with a complete host of new ideas for improving our own web presence and practices.

Kelman made it clear that Redfin doesn’t hesitate to part ways with agents who receive negative scores from their clients. All reviews - even the few terrible ones - are shared on the Redfin site. This allows customers to get an unbiased feel for an Agent before seeking their assistance. This type of transparency certainly deserves applause. Agents who share the company’s desire to please the customer are generously rewarded, some earning more than double the industry’s average annual salary. Kelman and his team don’t skimp on salaries and equipment in an effort to raise profits. Their mantra? “Don’t spend less - make more!”

The goal at Redfin, as you may be well be familiar with, is to The virtual end of Redfin’s business is fascinating and thoughtcreate a high-tech, seamless, cut above the rest, “end-to-end” provoking. In the decade since the company was founded (a experience for their home buying clients. Unlike many virtual tough decade indeed), Redfin has made seemingly simple, businesses where the consumer never directly interacts with a yet essential, changes to their website which have dramatically live human being, Redfin increased conversion rates. is a hands-on operation built for today’s world. Professional stylists, Technology makes this makeup artists, and possible, and agents are photographers make trained to meet all of their Redfin’s agents look their customers’ needs, from absolute best. This alone hanging that first “For increases the potential Sale” sign on the lawn business by several points. to moving the customer Agent profiles are designed into the home of their dreams. to seamlessly blend with Agents who work for Redfin the rest of the site. Knowing go the extra mile for their that potential clients expect Redfin’s CEO, Glenn Kelman, wins the prize for an information packed clients, facilitating every step presentation with kernels of knowledge to excite and inform all convenience, Redfin ensures that of the home-buying and selling by Geraldine Barry customers who call a number process. Turnkey selling? Pretty listed on the site will reach an agent - no matter much. what the day or time. Kelman knows that, in our convenience-driven world, a customer who has to Currently, Redfin employs more than 1,000 real wait will go elsewhere - it’s a proven fact. estate agents. Glenn and his team recruited top

Connecting at

Real Estate Connect Redfin: True Industry Sharks

agents who were poised for a new approach to real estate. Half of Redfin’s agents are experienced industry professionals, while the other half have had no previous real estate experience. The goal was to find a simple solution to an age-old problem: how can one train agents who would be dedicated, above all else, to full-service customer satisfaction? Clearly, Redfin answered this challenge.

Big data certainly plays a role in this shark’s fleet of tricks: every Redfin customer, whether they complete a sale with the agency or not, is surveyed on their user experience. Surprisingly, agents with no prior real estate experience score just as high as seasoned pros on these reviews. Impressive.

To meet clients’ desire for instant gratification, Redfin includes many interactive features on the site, allowing visitors to track sales, set up appointments, and view market trends in their own free time. Each facet of the website is carefully designed, using careful data analysis, to maximize efficiency and drive sales. Even the company’s email practices are driven by data. Kelman shared some of Redfin’s secrets to email success with his audience: send messages to customers over the weekend when they have more time to peruse their inbox. Kelman encourages us to use numbers in the email subject line. For whatever reason, people are more inclined to open emails that include numbers. Knowledge of consumer behavior and practical application of data analysis has driven Redfin’s success in the industry. Again, attending the Inman Real Estate Connect SF event was key. From the knowledge gained to mingling with industry game changers such as Michael Simonsen of the famous Altos Research, the wildly famous Pete Flint, and the brilliant Sean O’ Toole of PropertyRadar, this event paid off in a huge way. If you have the chance to attend the next Real Estate Connect event, I highly recommend you do so. Fall 2014 REI Voice

Features

Josh Dorkin Transforming the Real Estate Space How one man made real estate education transparent and accessible for all. Geraldine Barry www.reivoice.com

Photographer - Aaron Vandiver

Features

and value system, or the lackof it, within show business eventually got to him. He wanted more. Josh discovered that making it there - really making it - was all about who you knew, not your skills, talents, or education. Josh, a restless and driven spirit, grew dissatisfied with taking jobs to get by as he worked on his entertainment career. During this time, though, he supplemented his income by acquiring his license to sell real estate - a license that would later serve him quite well. While obtaining his license, he was struck by the lack of requirements and quality education available to him. This situation planted the seeds of what would later become BiggerPockets.

ucked far away from the the glamor and clamor of Los Angeles, Silicon Valley, and New York City, Josh Dorkin is not your ordinary CEO or man: he has built an extraordinary business and life. Josh, and all of the genius that emanates from the pages of his brainchild BiggerPockets (www.biggerpockets.com), enjoys a quiet life with his family, set against the beautiful backdrop of the Rocky Mountains. He enjoys the fruits of his labor after years of hard work building an educational platform that currently ranks as the world’s best in terms of content and hands-on, internet-based real estate education. As time wore on, the stardust of Hollywood faded, and, like many BiggerPockets is hype-free, guruothers in his shoes, Josh retreated. He free and a true game changer for the did, however, make a brave choice: he entire investing industry. The purity devoted himself to the challenge and of BiggerPockets represents a punk rewards of being a special education approach to real estate education teacher. In his capacity as a special that has garnered respect from the educator, he worked with kids who masses. Free from sales pitches suffered from Tourette’s syndrome, and any traces of hucksterism, children born to drug addicted BiggerPockets helps elevate the parents, and others who struggled industry. with both ADD and ADHD. If you’ve A young Josh Dorkin saw models of ever worked within this world, or know his success in his parents, who were someone who has, you understand both successful in their respective immediately the extreme patience, careers: his father was an electrical optimism and special blend of alchemy contractor; his mother worked as a it takes to do your job. It’s important retailer. He grew up in New York, and, to interject, too, that despite now upon his graduation from college, the being the CEO of the hugely popular itch to explore hit him. Dorkin headed BiggerPockets real estate forum, Josh out west to explore what Los Angeles, still takes time to keep up with those the great city on the other side of the kids with whom he formed invertible and long-lasting bonds. He is proud to country, might hold for him. note that many have gone on to lead As so many new to Los Angeles do, successful, productive lives - no small he ventured into the entertainment accomplishment. industry. He found a variety of things he loved there, but he also Aside from Dorkin, few CEOs today encountered many things that simply can say they worked in something didn’t fit his worldview. The insincerity as selfless and challenging as special

education. The fact he taught in this field for several years speaks volumes about Dorkin’s character and motives. This article, quite truly, could end here and the message would still be strong: Josh Dorkin is an uncommon man in this industry and the world at large; he’s a fighter, and, to borrow a term from Disney, an imagineer. He rises to challenges. He creates opportunities. He is the real deal in an industry often flooded with insincerity. When he started putting together his ideas for BiggerPockets, Dorkin, like many entrepreneurs before him, built his business by night. Though he was a highly valued member of the staff at his school, and he found the job rewarding in countless ways, the stress began to wear him down. The sadness he saw day in and day at work took its toll; however, he also saw transformative hope in the impact he could personally make upon the lives of others. His would eventually leave teaching, but he would apply this lesson about transformation to his work on what would eventually become BiggerPockets. As the fallout from the great real estate crash began to stabilize, Josh slowly but surely began his return to real estate. As many do, he initially picked up non-local buy and hold rentals. His basic philosophy was to treat others as he would like to be treated. Not wanting to get bogged down by the ins and outs of running properties on a daily basis, he hired property managers so that he could focus on his bigger picture and craft what would become BiggerPockets. Though perhaps the plans were always somewhere in the making, starting with his first foray into real estate, Josh didn’t rush to get BiggerPockets up and running until the timing was just right. He saw, with his keen eye, the insanity of real estate in the 2000’s and took a reserved approach

Fall 2014 REI Voice

Features

to his concept, quietly coding and strategizing and biding his time. As he says, “I don’t care what everyone else is doing; I’m busy innovating and driving my business forward.” He’s not concerned with the competition - he’s concerned with quality. A natural-born educator, he sought answers to questions he encountered in the field. What makes an investor successful? He was surprised to find a true dearth of reliable information available; what he found, instead, was an overabundance of guru material that made promises he suspected wouldn’t or couldn’t be delivered. In short, Josh saw the need for something in the real estate world and envisioned a way to fill it. Josh found an industry that absolutely needed the easy to access, real-life information his platform now provides. Josh’s impressive success proves that he found a need, just as he did with his work as a special educator, and found a way to address that need.

Today, BiggerPockets is a booming online community and platform for all those interested in real estate. Over one million people access his website on a monthly basis; the platform boasts over 200,000 registered members and he averages 600,000 unique monthly visitors. His podcast Then - he built it. alone, which he developed just last Dorkin crafted an impressively vibrant year, averages 30,000 listens per community of hands-on investors who show. learn from each others’ successes As Zillow and Trulia are currently in and follies; investors who bounce the process of merging, it’s clear ideas off one another and often get the industry is rapidly changing. instant and well-considered answers. Josh believes the combined power He built a community that the Internet resulting from this merger will help needed, creating easy access for all. simplify the process for consumers His refreshing and honest approach while also building tools to help agents to real estate education has helped advance. In fact, he compared the countless investors turn their lives merger to “the national MLS.” and fortunes around. How does one survive and thrive in So, for those of you who have the world of market bubbles, popped somehow been living under a virtual bubbles, the Internet, and, overall, the rock, what, exactly, is BiggerPockets? ever-changing world of real estate? Here’s an easy way to explain it: it’s Josh feels that for one to achieve the ultimate social media network for and/or hold on to success, they must today’s real estate investor. Imagine “adapt or die.” How does one, no rolling Facebook, blogging, Twitter, matter what industry he/she inhabits, chat rooms, the magazine format, do what Josh did? Frankly, and forums, social networking and email obviously, it’s not easy. It takes vision into one user-friendly platform --- and lots of it. It takes true fortitude. that’s BiggerPockets in a nutshell. Above all, though, it takes guts.

www.reivoice.com

Photographer - Aaron Vandiver

When that burnout feeling so many startups and entrepreneurs start to feel snuck up on Josh like a Colorado avalanche forming, he saw it was time to start delegating -- just as he had done with his rental properties -- in order to expand. Josh commented, “The difference between an employee and an entrepreneur is that the entrepreneur is a 365 day a year job…” He realized fast that his reputation mattered - and he remained and still remains true to his word in all matters he undertakes. He aims to, and actively seeks out, the best thought leaders in our industry and guides them to maximize BiggerPockets while elevating his active investor base to, quite simply, gain bigger pockets for our families, our lives and our future generations. Family is key for Dorkin, who is a devoted father. Having had three children in the past 5 years, he embraces the “family first” philosophy that most of us strive for but have difficulty attaining His work, whether in special education or real estate investment education, is unique. Josh Dorkin continues to impact lives and change the world in ways both large and small.

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Features

How Fundrise

Developed a Game Changing Strategy

Until recently, real estate syndication was truly elitist: it existed in an insider-only, “networking means everything” kind of a world. Thanks to some new changes by law-makers and an effort spearheaded by a forward-thinking company Fundrise, in conjunction with the Securities & Exchange Commission (SEC), that’s no longer the case. Fundrise utilizes crowdfunding, a relatively new concept that sources money from numerous investors online, to change the world of real estate financing. We are currently in the early stages of this new and exciting funding source, with many iterations expected over the coming months and years, so it’s important to learn more about how it all works. Fundrise stands as an industry’s gamechanger. They believe in the power of local investors, small amounts of money, and clean transactions with numbers that are transparent and project information easily accessible to all involved. Based in the DC area, not the Silicon Valley, as one might assume, Fundrise operates upon the principle that commercial investing has no barriers to entry. One recent project raised $330,000 for a project that had 339 investors. A huge potential for wealth and growth exists for all involved, from developers to investors, and from neighborhoods to the cities that house them. Developers benefit www.reivoice.com

because they can fund projects that banks may be reluctant to back; crowdfunding functions as an additional, alternative capital source. When it comes to local investors, they know the buildings, tenant profiles, and the area’s potential, so the level of trust and communication with developers is enhanced. Homeownership and prudent investing are surefire ways to raise a neighborhood’s stature, and, by association, a whole city. For anyone in doubt about the merits of crowdfunding, or if a real world example would help clarify how it all works, let’s turn to the ALS Ice Bucket Challenge. As we go to print, the ALS Association -- ALS stands for Amyotrophic lateral sclerosis, also known as Lou Gherig’s Disease -raised 2.2 million dollars during the first quarter last year, but has raised $88.5 million this year all via the internet (7/29 - 8/26) thanks to the online Ice Bucket Challenge. Nearly 150,000 people have donated to date. The ALS Association lost $7 million in Federal funding over the last few years, but the internet and innovative Ice Bucket Challenge changed that in less than 30 days, demonstrating the extreme power and possibility of the internet and crowdfunding. Clearly, the effectiveness of these methods and funding sources are tough to discount; now, imagine applying this to real estate. That’s how Fundrise

operates. Fundrise is the brainchild of two brothers: Dan and Ben Miller, 27 and 38 respectively, who come from a family with a long history of commercial investing. They developed the idea of building a company based on the fact that commercial real estate should be accessible to all, and that city infill projects can be completed easily with this type of funding. Locals play a key role here: they are the investor target market because they understand their own neighborhoods and projects better than anyone else, and they, of course, would like the opportunity to participate. How can they do so? It’s as simple as investing in a share of the building right down the street from where they live. This aspect makes the Fundrise model revolutionary, as it democratizes real estate investment in a way few have seen before. Fundrise’s model makes it possible for marginal investors, people who would have previously been left in the dugout, to play the game with just a $100 investment. A huge potential for wealth and growth exists for all involved in these kinds of projects, from developers to investors, and from neighborhoods to the cities that house them. Developers benefit because they can fund projects that banks may be reluctant to back; crowdfunding functions as an additional, alternative capital source.

Features When it comes to local investors, they know the buildings, tenant profiles, and the area’s potential, so the level of trust and communication with developers becomes greatly enhanced. With this in place, a project’s chance for success greatly increases. While certainly user-friendly in theory, does Fundrise translate to easy, practical use? New technology and the digital flow of documents makes the investing process easier to access, process, and track online; it creates true transparency in what was before a more complicated and murky transaction for many commercial and syndicate real estate investors. This process makes it far less intimidating for new, inexperienced investors who might be overwhelmed by the often complex process of real estate transactions. So, like so many functional things, one could say that Fundrise’s beauty lies in its simplicity. Through transparent operations, all of a given project’s participants can view every detail online from start to finish, thus simplifying the process of investor relations and making communication simple for all concerned. Automatic updates as projects

progress are sent to investors. Fundrise was first in the field to completely automated the system by locking the technology down, a practice now embraced by financial markets in which simplifying this process had long been difficult to orchestrate. The Miller brothers have devoted themselves, and their money, to creating seamless processes through which investors can access information and make a decision to invest or not. The SEC partnered with them, and $500,000 later, an online public offering unusual in the crowdfunding arena was born (it’s uniqueness lies in Regulation A, an exemption for some public offerings, in tandem with the SEC). Fundrise does commercial deals, infill projects, and revitalization in areas they cities that they are familiar with; doing so enables them to understand the potential that outsiders and others may not, at first, be able to see. Through a true understanding of the neighborhoods in which they invest and by using crowdfunding, Fundrise sits poised for big success. The brothers are currently taking their business model to the national stage, making it possible for local investors to connect with real estate deals

they never would have been able to before. Fundrise is not simply embraced by the smaller investors, but has some high level sponsors and well-established older companies using their platform, such as Revolve, Ditto Residential, and The Kor Group. All of these companies endorse the new online model and embrace it to get their projects completed quickly. To gain more traction and elevate trust, Fundrise moved the process one step further: they now actually underwrite their own deals, making transactions more safe and secure for all involved. Fundrise isn’t just an aggregator but has true skin in the game, making the company’s deals all but a sure thing for developers who need to raise the funds in a certain timeframe. By circumventing an elite syndicate system and with the help of the Securities and Exchange Commission (SEC), Fundrise brings commercial real estate to everyone with a vested interest; they may even arrive in a neighborhood near you. For those who want to both craft their neighborhoods and see them thrive and come alive, Fundrise is ready to pave the way.

Features

A Stadium-Sized

Passion

Santa Clara Mayor Jamie Matthews An inside look at how great leadership can change a city

The passion Santa Clara Mayor Jamie Matthews feels for his city could fill a stadium; in fact, it all but has! Working in a creative public and private partnership, Matthews and his team helped make Levi’s Stadium -- an eco-friendly, state-of-the-art facility that will be the new home base for the NFL’s 49ers -- a reality for Santa Clara. This is just one of the many beneficial, highprofile projects his tenureship has realized for the city. A 5th generation Santa Claran, Mayor Matthews invests his time, passion, and positive energy into “fulfilling the dreams and aspirations of generations of former city leaders to make Santa Clara an unrivaled destination in the South bay.” Many major publications back up this claim, citing Santa Clara as a place primed for a true economic boom, and it is happening. Needless to say, with nearly 30 years of experience in government, 16 of which he spent as a city administrator, Jamie Matthews is the epitome of what every mayor should be: humble, driven, productive, and transparent. Mayor Matthews embraces humility, a key characteristic of his personality. When it comes to his feelings about his office, he offers this: “Next to being a husband and father, one of the greatest honors in my life [is] being just a kid that just grew up here in this city to become the mayor. To serve Santa Clara in this role is wonderful.” This simple, transparent attitude toward service gets results for the city and its people. For example, affordable housing remains one of the most important issues in Santa Clara, especially for senior citizens. According to Matthews, “[Santa Clara has] spent over $200 million in partnerships to build affordable housing. So, we as a city have done more than required because of our values and commitment to our people. We understand the need to have a full range of housing types so people

can have the opportunity to live here.” A perfect example of this is the Roem Project, which Matthews describes as a “48 unit low and extremely low income senior housing project.” He goes on to say, “It’s gorgeous. It’s Leed Platinum. The Roem Company, which has had headquarters in Santa Clara for a decade was finally able to do a project here in Santa Clara.” Not only did Matthews help get this project completed, but hiring a local company to build it helped the economy even more. Tenacity and drive define this mayor. As he says, “if someone says to me, ‘I can’t get something done,’ I guarantee I’ll get it done. Obviously it’s an obsession to prove them wrong. I think too many people limit themselves. There may be something they wanted to do, but they are not willing to do what’s necessary to make it happen. So, just have the faith to throw yourself into the abyss of possibility.” Proof positive of this is the completion of Levi’s Stadium, the new home of the NFL’s 49ers, which opened to the public on July 17th, 2014. The building interior space is twice the size of Candlestick Park, the previous stadium for the 49ers, Levi’s Stadium was funded through bank loans, stadium revenues, naming rights, SBLs, the NFL and private investments from the 49ers. This process took the burden off the city itself, as none of its general fund was used for the project. In order to maximize the profitability of the stadium, Mayor Matthews and his team “went into it thinking about how can we enliven it [Levi’s Stadium] year-round, so it was not only a place for large special events, like the Super Bowl [and] the games that will be played there. But what about the rest of the year?” To cover any gaps, he says they made sure to “have about a hundred thousand square foot of programmable space that [can be used] for the convention center.” Designed as a companion to the Santa Clara Convention Center, Levi’s Stadium created a partnership that will continue to boost the economy. It’s noteworthy, too, that Related, a development corporation owned by Miami Dolphins owner Steve Ross, plans to invest nearly $6.5 billion to build a 8.6 million square foot destination retail, hotel, shopping and entertainment district across from the stadium; this will help grow Santa Clara’s economy even

more. Levi’s Stadium is not just financially sustainable; great care was also taken to make it green. Here are some impressive statistics: 85% of the water used in the stadium will be recycled; one wing of the stadium suite interior space is constructed from reclaimed wood from a nearby airplane hangar; a 27,000 square foot green roof sprawls across one suite tower’s roof; solar panels and pedestrian bridges will help generate electricity; where applicable, LED lights illuminate the stadium, totaling 40% of the space; and, perhaps most impressively, Levi’s Stadium earned LEED Gold certification from the U.S. Green Building Council, an honor which no other U.S. venue like this shares. All in all, these statistics and the developments showcase smart, responsible planning, and underscore Mayor Matthews as a person who gets things done. He is also hard at work attracting retail and restaurants to the area, such as Target and Chipotle Grill. Transparency is a key, and refreshing, attribute of Mayor Matthews. Not shy about wanting to return for a second term as mayor, he reflects positively on his time already spent in the position: “It’s been an extraordinary time in Santa Clara’s history. We’ve gone from the depths of the great recession to one of our greatest sustained periods of prosperity. I have learned and continue to learn from the great people around me. The dynamics are the same whether you are serving on the PTA board, athletic boosters, or City Council. The key to success as a leader is to listen, collaborate and seek consensus.” He applies the same candidness to his abilities and background: “I’m glad my skills fit the times we’re in, but I was never politically ambitious or an ideologue. I just wanted to serve.” Suffice it to say, this distance from standard political aspirations, and his willingness to speak so freely about it, helps the genuineness of Matthews stand out against the usual political landscape. As Matthews reflects upon the future, he says “Santa Clara is an amazing place. We are always building upon the great foundations of our past and leaving future generations a firm foundation on which to build for their future. We share a collective optimism and excitement about what comes next. We continue to move forward even as people come and go in public service. It’s an amazing thing to be a part of. Being the mayor of Santa Clara is like being the conductor of the greatest symphony orchestra in the world. All I need to do is conduct and set the tempo, because I serve with the finest musicians who create beautiful music which is Santa Clara.” With any luck, Santa Clara will continue to play under the direction of Mayor Jamie Matthews

S umpstart REI

Real Estate Investing Basics October 11, 2014 and Winter 2015

Presented by

Geraldine Barry

New Interactive Curriculum  New 100 page comprehensive work book  Locating deals  How to evaluate a deal  Cash flow analysis  Traditional and Creative financing strategies  Pros and cons of LLCs, corporations  Effective property management  Exit strategies

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Basics

Lori Greymont Imagine: Success

magine this: waking up, feeling completely programmed for success. You know what you want, and you’re going for it full throttle. You know you’ll get it. You’ve connected with the right leaders and decision makers to help guide you toward your achievements. You know it and believe it. The difference between a successful investor and a tire kicker boils down to one thing: mindset. Sure, there’s a lot of discussion about how our thoughts create feelings and actions; however, these discussions point to something good. Why? It’s true! What we think controls how we act, and how we act results in how we live and with whom we surround ourselves. So, what are you thinking about your future? Are you programmed for success? In my line of work, as an investor and expert advisor, I encounter and train many people who need to be literally reprogrammed for true cash-flow to start happening. It’s crucial to do so, because if you’re not programmed for success, and your thoughts are not in line with what you really want, you simply won’t get it. Here’s a look at how to get ahead in the game of real estate - and life - by reprogramming your thoughts. First, be mindful. What’s going on in your subconscious controls most of your actions. Are you thinking that more money would be “nice” but that, for whatever reason, it’s just not “possible” right now? Snap out of it. You can get more money, but you need to be mindful of your thoughts and how they contribute to the status of your bank account. If you want money, but you don’t really believe you deserve it or can get it, you’re probably not going to make the right power moves to get there. It’s essential that you change the way you think on a second-to-second basis and tap into your subconscious thoughts and feelings about cash-flow. So, you may have a lot of subconscious negative programming around money. A lot of us do for various reasons. That’s the bad news. The good news? You can absolutely change that negative programming for positive programming and positive cash-flow. You need to start by changing your subconscious programming….. that’s the trick. Take control of your thinking - don’t let negativity overwhelm you, especially as an investor. If you say no to every deal that comes your way because you are thinking something isn’t possible, you’ll end up without much to show for it. If however, you are thinking positively - and you learn to maneuver your way through the ebb

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and flow of real estate investment, you can end up with large pockets and a constant stream of residual income….. How to start? Reject your negative thinking completely. It’s work - but it’s worth it! Every time you start to think negatively, stop and do a complete u-turn. Imagine a sign on the road that says “no entry” or whatever works for you; most importantly, it needs to transform the way you think or feel about money. Winners have a clear-cut focus on what they want: do you? Focus on what you want so that you can get it. Try imagining that your thoughts are like a magnifying glass, and the more you zoom in on what you want, the closer you get to actually achieving it. Possibility? That’s a blank canvas. Anything and everything is possible. It’s impossible to disagree with the above statement. Possibility, indeed, is a powerful and magical thing. We are but a small dot on the large canvas of possibility. Don’t let yourself get limited by thinking about what is or what isn’t possible. Don’t delay. Do not put up mental hurdles and roadblocks that stop you from fully realizing your dreams. When you believe you can make money, that your future can be sunny, and that you are in complete control of your thinking, you can achieve whatever you want. What do you believe? How do you want the blank canvas of possibility to look in your own life? Believe - don’t see to believe. Just believe. When you make decisions based upon fear or the stories others share about personal disasters, you are acting from the Fear point of view,

Basics and that simply isn’t positive. Most people don’t take action because they can’t tackle the Fear hurdle. Can you? Do you want to? Don’t get stuck at the decision point in a deal. Lots of us want to invest, but we get stuck in Fear and what I call, “analysis paralysis” or the the inability to make a decision to do a good deal. My mother is the person in my life that taught me how to make firm decisions that benefit me and are in line with what I really want to achieve. That skill has served me well as an investor and leader. This is what I teach my students, and I am so thankful that I learned this skill early so that I can now share it with you. Making a decision is as simple as four easy questions you must ask yourself to be successful. First, ask: what is the best possible scenario you can hope to achieve through a deal? Next, ask: what is the worst possible outcome of a given deal? Third, ask: What is the worst thing thing that can happen if I don’t do it?

Finally, ask, and this is key: what is the best possible thing that can happen if I do do it? Choose the answer that will give you the absolute most peace of mind. Once you’ve used these four questions for your decision making as investor for a while, you can eventually condensce them down into 2 absolute questions: how will this deal help my life and how will it not? Why just two questions? Because, ultimately, your move dictates the direction of your life, so zoom in like a magnifying glass on what you want to get out of life and your investment properties. Really, the question you must ask yourself is as simple as this: “which decision will I regret more?” If it as simple as Fear alone that stops you from making a wise move, be proactive about reducing your Fear. How? Reduce your risk through education, case studies, support groups, internships and starting small to achieve big results (eventually). The key, and what you don’t want to lose sight of, is thinking your way to taking steps toward your dreams. Let yourself dream as big as you want to, and don’t let yourself shrink your dreams to your current comfort level. The bottom-line? You can do it if you think you can!

Lori Greymont is the CEO and Founder of Summit Assets Group, the premier purveyor of Turnkey properties with passive cash flow in Atlanta and Birmingham. Since 2009, Summit has transacted over 1,600 houses, helping investors achieve their personal financial goals. For a free no-obligation consultation on creating your own investment plan, please call 408-782-9162

Basics

Rocky Li From Academics to ARVs An inside look at Rocky Li, CEO and Founder of Caldream Properties and Investment Group, LLC., Founder and Broker of Valley Vine Realty, Inc. by Geraldine Barry

ocky Li’s path to real estate success has been anything but typical. Immigrating to the United States from the Henan province in central China in 1998, Rocky earned his PhD in electrical engineering in 2003. This achievement allowed him to work in the diverse fields of academia, the corporate world, and, finally, real estate. Rocky’s ride reads like the best of spiritual quests: it details a relentless drive, regimented soul-searching and reflection, battles with doubt, and, ultimately, the big payoff after following his dreams and passions. It’s an inspiring story. Originally, Rocky Li planned a career in academia. After earning his doctoral degree, he hit the job market running. He landed an interview at Harvard, which proved to be a fairly intense experience - they interviewed him twice - two days in a row, too - and then declined to make him an offer. This experience left Rocky a little rattled; he wondered how he would fit in with American culture and its academic system. Not long afterward, though, Rocky found the right fit with North Dakota State University. NDSU interviewed Rocky once, were duly impressed, and promptly hired him. Rocky spent 3 productive years teaching at NDSU, and, despite his accolades, a nagging feeling told him he wasn’t in the

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right field. The “publish or perish” grind of academia didn’t fully click with Rocky’s creative, expansive spirit; besides, as he says, fishing was the only recreational activity you could do in North Dakota (not the most ideal activity for someone who prefers action to stasis). Fueled by his active, energetic disposition and the determination to live a purposeful life, Rocky moved to California after obtaining his permanent residency. Thus began a new chapter in his life: the corporate world. For the next 8 years, Rocky dedicated himself to working in a technical capacity for corporate giants such as Time-Warner, AOL, and Huawei, the #1 telecommunications company in the world. Rocky worked diligently with these companies, steadily climbing the corporate ladder. Like many creative, driven, and intelligent people before him, Rocky once again found himself questioning his career and goals. Was the corporate world the right place for him? Could he do the most good here? Was it the most impactful position for him? Fate often comes to our rescue in situations like these, and, in Rocky’s case, his wife Heidi provided the catalyst for his next career and game changing leap. Heidi, a people person, became a realtor and suggested that Rocky take his broker exam. He took her advice, and, as he says, soon became hijacked by Heidi’s world. Heidi knew Rocky had an eye for details and and exacted precision in his work, so she trusted him to figure out this side of the business. Working

Basics as her broker, Rocky fell in love with the world of real estate and immersed himself: rapidly devouring vast amounts of knowledge. Like the best technical minds, Rocky had a knack for extracting the most useful information he learned and discarding that which proved superfluous. He sharpened his skills and boiled down lengthy reports to ten sentence summaries to make Heidi’s job less daunting; she appreciated and valued his work so much that she refused to read any but his distilled reports. Rocky worked well with Heidi and had a revelation: real estate was his calling. His full immersion into the business would take some time and have some bumps, but it ultimately paid off. In early 2012, Rocky purchased three properties and pursued his real estate education. He wanted to leave his corporate job, but was reluctant to give up the security. He felt strongly, though, that his technical knowledge could help him be successful in the real estate business - after all, both require a stringent attention to detail, patience, and keen intellect. Undaunted, Rocky continued to pursue his interests. Heidi continued to have success and won awards for her accomplishments. Inspired by this, Rocky joined SJREI, our real estate education organization, in March of 2013. Rocky took a little while to settle into his new way of life. As sometimes they do, things felt out of balance as both he and Heidi worked toward their goals. Ultimately, Rocky decided to exit the corporate world once and for all and commit himself fully to both real estate and balancing the domestic side of his life. May 10th, 2013 was Rocky’s last day of corporate work; he described the resulting feeling as “liberating” as he strode out of the corporate

headquarters for the last time. As he followed his path to real estate success, he helped Heidi more around the house and took strides to make things more comfortable for his family. Rocky hired a housekeeper and enlisted his nephew, a student, to help with his real estate business. With his house in order, Rocky threw himself into his work. Rocky registered with our SJREI’s Dream Big program, and sent out 1,000 pieces of direct-targeted mail. Rocky described getting involved with Dream Big right after quitting his job as “a sign from God.” While the work excited him, it wasn’t the easiest transition into success - it took about 7 months to close his first deal. During this time he felt frustrated and fearful at times; he faced a difficult market. However, once he closed that first deal, things started happening for him. He saw his hopes and dreams start to materialize, and he said to himself “Gosh, this actually works!” By December 2013, he enjoyed 3 successful deals. Rocky was on a roll. Gone were the sleepless nights, the lack of peace, the stress; instead, Rocky was able to sit back and enjoy his success and time with his family (Rocky and Heidi have two sons). Rocky stays humble, despite earning about $125,000 on a recent flip deal. He feels that going through real estate education and its trials and tribulations have transformed him into a better person. When asked about the keys to success, Rocky offers this maxim: be the right person yourself, do the right things, and you will attract positive people and results to you. While the road to real estate success can be trying at times, Rocky shows that with tenacity and the right mindset, success is attainable.

Your Personalize

MORTGAGE Road Map

We all want financial well-being, comfort and security, right? The only question is, how do we get there? I look forward to helping you find the path that is right for you.

Joe Cucchiara

Partners Mortgage Mortgage Planner & Radio host MLO 273084

408.342.3755

jcucchiara@partnersmortgage.com

Basics

Pam Blanco Data Is Power by Geraldine Barry

am Blanco, recently featured in Forbes, is definitavely staking her name within our industry. Based out of Texas, she offers her investors the full-picture experience: local research, clear buy and sell signals, full property management, and the option to buy turnkeys or properties that need to be rehabbed through locally sourced and highly recommended vendors. In our industry, she is the real deal turnkey provider and management service - one who is more than eager to help her investors skyrocket their portfolios. An active investor herself - one who is driven to succeed and create a substantial trust for her family - Pam and her team literally do it all. They proactively scout out great deals (which they either buy themselves or offer to their inside circle of investors), provide their investors with detailed monthly reports on their portfolios, and, through monitoring neighborhood data and stats, they know when the time is right to buy and sell. For the back-seat investor who wants cash flow without the hassle, Pam Blanco is able to conjure it. She believes in quality, first and foremost. Her team of property managers actively walks each and every property they manage at least once a month, taking note of any potential indications that an investor should know about. They are, literally, note-worthy, providing investors with detailed reports via email, letter or fax. If there’s a busted pipe or something that looks like trouble ahead, they thwart it by alerting investors and sourcing quality vendors immediately. The properties Pam’s team buys have all been heavily weighed by her elite team of scouts; she never misses a ball. Research and data heavy, her deals are driven by the fundamentals of what makes a property “invest-worthy.” Whether she buys and rehabs it herself or offers it to an investor for rehabbing at incredible prices, Pam will not put her name on a property she doesn’t thoroughly believe in. By doing it all, she has far more skin in the game than your average property manager - after all, that’s the thing: she is far more than your average property manager. Pam saw a real need in investors who want cash-flow with minimum impact upon their personal lives, and she filled it. Her ace research team considers everything from future train stations to the state of school districts and their athletics program before buying or making a recommendation. A true innovator who is turning a new key for the turnkey investor, Pam has automated everything and boiled the basics down to a science, thus making it easy and accessible for tenants to find an apartment, apply for

one and even pay online. She considers every single detail and could be called the Nordstrom of real estate investing in how she, alongside her team, personally shops for amazing deals. It goes without saying that transparency is the name of Pam’s game. Her approach to real estate investing is simple and concrete - when you invest with Pam, you trust her and her team to provide you with the absolute highest quality of rentals, tenants, and service. It’s her commitment and approach to the business that sets her apart - and her belief in data as power for investors. The Dallas and Fort Worth areas, Pam’s stomping grounds, are primed and ready for savvy real estate investors to take hold of. Not only is this area one of the country’s major metropolises, it is poised for true growth as predicted migration to the area looks excellent; its school systems are also strong and its properties are modern and come with powerful curb-appeal. As transparency is the secret to Pam’s big successes, she is in constant communication with her team and investors - she believes that her investors can enjoy the ride along with her by seeing the full picture without having to worry about bumps in the road. Trust is a keystone of what she does, and she doesn’t actively seek out new investors most of her business comes to her through satisfied investors and their circles of family and friends. As investors keeping coming to her, her research team is hard at work, constantly searching for incredible deals that deliver Pam, and those who invest with her, the most ROI for their dollars. The property management side of things doesn’t miss so much as a scuff on a garage door. A deal made in heaven? When you work with Pam Blanco, you may just catch a whiff of her special potion of meticulous real estate magic.

Pam Blanco is the Founder and President of Professional Asset Management and Sales. Catering to investors, the company has developed into a turn-key solution provider to help investors grow and manage their portfolios of properties, both single and multi-family. - www.PamTexas.com www.reivoice.com

Basics

Carole Rodoni BLOOM,DOOM,OR GLOOM How Is The San Francisco Bay Area Really Doing? REI Voice Contributing Colmnnist

videos and share our experiences etc... and it does it all for us anywhere, any time on a variety of appliances. What is even more important we are just at the beginning of this revolution not the end.

ummer madness, fall havoc - it seems that the San Francisco Bay Area is undergoing a revolution. Can it be that good here or are we experiencing another bubble about to burst? First let’s talk about the last bubble in the year 2000….that one was for real. A time in which all kinds of assets from stocks to real estate got artificially inflated and then burst.We went into a recession, the housing market exploded going from 5 million residential sales to almost 7 million,residential sales and mostly to people who should not have gotten loans. Banks were going under, Fannie Mae and Freddie Mac went into conservatorship, AIG and General Motors went into bankruptcy and Wall Street titans like Bear Sterns and Lehman Brothers could not stay afloat. The Federal Reserve stepped in to save the day by leveraging more debt on our existing debt and increasing the Federal balance sheet from 800 billion dollars to almost 4 trillion dollars today, lowering interest rates to zero and for the moment they continue to stay on this path.

Just think of all the wealth that is being created by this technology revolution. According to the Forbes 400 magazine list there are now 56 billionaires in SIlicon Valley alone and in the city of San Jose the San Francisco Chronicle reported that there over 247,000 millionaires. No wonder things look bright here and that our real estate market has been on fire.

Here in the San Francisco Bay Area we took our hits but today is very different from the year 2000. Today in Silicon Valley we have “real” companies with great revenues and profits.The San Francisco Chronicle projects that by the year 2040 there will be 2.1 million more people in the San Francisco Bay Area creating 1.1 million more jobs. Over the last two years Silicon Valley has created 75,000 new jobs and the pace continues with companies like Google and Facebook taking out more space both in the Valley and in San Francisco to house their employees. Facebook spent over 20 billion dollars just in one week buying What’s App and Ocuvus and Apple just paid over $3 billion dollars for Beats. Not only do these companies have the cash to make purchases like this but they buy several companies each week. Also we have had an influx of international players into the Valley from Alibaba to Soft Bank and when Alibaba goes public this September at around 150 to 200 billion dollars just Yahoo will get an infusion of cash of around 15 to 20 billion dollars.

So we seem to have the best of both worlds here now. A real estate market that is hot both at the entry level and the higher end, and a business climate that looks good for at least the next 2-3 years out. So no doom or gloom here. Here in the San Francisco Bay Area we are blooming.

So it is different this time. First and most important in the year 2000 technology was just a part of the economy while today technology is is the foundation of all economies. You cannot open a business or run a business without technology as its support system in today’s world. Technology does so much for us now-- it helps us shop, buy, analyze data, be more productive, track people and inventory, play games, take pictures, text, listen to music, see

We now see the average price of real estate in San Francisco at 1 million dollars and the average price in the whole Bay Area at 681,000 dollars. That is a huge reset from the low point when prices in the Bay Area were at 290,000 dollars at the height of the real estate downturn. We now see people flush with cash many not even needing loans and many international buyers who want to create a credit history here in the United States by purchasing real estate. Yes, we have an affordability issue so not everyone can afford to live in certain areas but we have areas like Daly City, Vallejo, Livermore, Benicia, Brentwood etc.. that are still very affordable. Today it is all about lifestyle,zip code and location.

“Consider all the wealth that is being created by this technology revolution. According to the Forbes 400 magazine list there are now 56 billionaires in SIlicon Valley alone, and in the city of San Jose the San Francisco Chronicle reported that there over 247,000 millionaire.”

Carole Rodoni Fall 2014 REI Voice

Basics

Alain Pinel The Shanghai Express REI Voice Contributing Colmnnist

o doubt the best place from which to see Shanghai is to stand on The Bund and watch the post-card view of Pudong, on the other side of the Huangpu River.

Perhaps the best time to see Shanghai is at the crack of dawn, when the sun plays hide & seek between the skyscrapers of Pudong, enveloping what looks like an island in a cloud of haze. Or is it in the late afternoon, when the special effects of the sun transform Pudong in the make-believe décor of a movie studio? Or again, the best photo-op may be when the sky turns dark and Pudong is lit up like Times Square on New Year’s Eve, with an explosion of colors on the Oriental Pearl Tower and dancing lights & forms on the glass façade of the skyscrapers. No matter the time of day, no matter the day, Shanghai looks magical, strikingly beautiful, incredibly powerful, and yet So mysterious. It is China, at least it is the new window, the new pulse, the new symbol of a new & proud China. I spent a few days there, at the end of July, to attend a conference organized by The Luxury Portfolio International, our global highend marketing partner. It was quite an education. It was an eyeopener.

“For all of us, real estate professionals focusing on the high-end, it is only a fact that the Chinese have become the leading buying power at the top end of the U.S luxury market. From what I learned at the Shanghai conference, we’ve seen nothing yet.”

Alain Pinel

For all of us, real estate professionals focusing on the high-end, it is only a fact that the Chinese have become the leading buying power at the top end of the US luxury market. From what I learned at the Shanghai conference, we’ve seen nothing yet. One word is enough to understand the new China: “wealth” is that word. It creates, within the country as well as overseas, a major paradigm shift in the way the Chinese see themselves, see others, and act accordingly on their needs or desires. Traditions are deep in China but so are aspirations. Fred Lam, one of our top luxury market specialists in California and one of my travel companions in Shanghai, explained to me what we may call the Chinese philosophy of life. All their life, he said, the Chinese see themselves as pushing a massive heavy ball uphill. There is no stopping, no matter the fatigue, because the ball cannot stand still. This “tale” says a lot about the Chinese insatiable drive to excellence. Excellence usually translates into success and money. Money is flowing today. At this point, China counts around 2.9M $millionaires, according to Rupert Hoogewerf, one of our speakers at the conference and chairman of the Hurun Research Institute. Perhaps more telling about the new wealth is the fact that the number of Chinese $billionaires, 358 on the books, is in fact more like 650, meaning more than any other country. For the most part, their fortune has been fueled by real estate. For the most part, their fortune is spent in real estate. It is a game-changer, there, here and everywhere. In Shanghai, a town of roughly 30 million that keeps on growing, real estate is on fire. Prices have gone up vertically in recent years and managed to gain another 12.6% this year, according to the Hurun Luxury Consumer Price Index. In Shanghai, $1M buys roughly 1,000 square feet in an “average” neighborhood. If you are looking for a nice pad in the pricey French Concession, you are looking at $5M and up. If you fancy a brand-new luxury condo in one of the Pudong towers facing The Bund and with a view forever, you better be ready to break the bank. One such unit (a penthouse suite) is available: 7,534 sqft, 4 BR/1 maidroom/5BA/2HalfBA. The price? $32.3M USD, i.o.w. $4,287/sqft. Still breathing? Now, if you want a beautiful Mediterranean-type villa in a gated country club community, we can offer you a nice one only 20 minutes from the Pudong Financial District. For $86,300,000 USD, you get 9,289 sqft (yes, 9,290/sqft…), 6BR & 4BA. And don’t forget to pay an additional $740/mo in HOA. Finally, please keep in mind that you don’t really own the place. You are actually leasing it for 70 years, no more. That’s the deal

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in China. After that, it is supposed to revert back to the State. If you think that luxury homes are expensive in the US, think again. What does it mean to us? A lot. I kind of know who is going to buy trophy homes in the US in the years to come. Today, China is already the N.1 buyer of US real estate in $volume. That represents a mere $22B, over 25% of all international sales. 76% of these transactions are cash. The Chinese buyers are already setting the price in Los Angeles, San Francisco, New York, and Seattle. More is in the cards. You just have to look at the number of Chinese students enrolled in US schools. There are more than 200,000, including 90,000 in California. FYI, one of the main reasons why

the Chinese buy here is to give their kids a place to live while getting an education. Parents are following, as 60% of the wealthy Chinese are emigrating to Western countries; mainly in the US. The question of the year is: if you consider that in many luxury markets, something like 50% of the residential sales over $10M involve Chinese buyers and the number of such buyers (together with the dollar amounts invested) may grow as much as 20% a year, what do you think the picture will be at the high-end in 5 years?... A piece of advice to the top guns of the luxury market: time to learn how to speak Chinese. Alain Pinel

General Manager of Intero Prestigio International, Intero Real Estate Services, Inc.

REI VOICE: OUR MISSION TO YOU

by Geraldine Barry

REI VOICE

We exist in a crowded industry packed with numerous, and often cacophonous, voices battling to be heard. Technology gives us multiple channels of expression and many opportunities for our businesses to grow. Some of us take full advantage and use these outlets for goodwill, passionate promotion, and honest networking; unfortunately, others seize the often unpatrolled territories of the internet and social media to malign others and bully their way to the top of the pile. We are part of a great industry, and, as I reflect on its rapid growth as well as that

of my own organization, I believe it is appropriate to outline our best business practices, and, perhaps most importantly, explain what makes our voice so unique. For some of you this may be a reintroduction to myself and business; for others, it may serve as a formal introduction. I’ve always said that reputation is worth more than money; it’s also more important, too. The importance of prioritizing reputation cannot be understated, especially in the internet/social media age where peer reviews matter more than ever. Services like Yelp, for example, thrive because people care about and trust in, quite simply, what other people think and what they have to say about businesses. From the beginning, whether it’s SJREI, our real estate education organization, or REI Voice, the magazine you’re holding right now, I’ve prided myself on giving people access to our community and helpful, empowering information so they can attain results. Access not only creates industry growth but also helps individuals find success.

Reputation not only applies to me and my practices but also extends to those with whom I choose to work. We vet everyone from advertisers to industry insiders profiled in REI Voice. I apply the same standards to others as I do to myself: I look for good, honest people with integrity and the desire to share their knowledge through active partnerships. I reserve the right not to work with people who engage in unethical behavior - that standard is high. This keeps the integrity of my organization intact and ensures that when you choose to do business with me or read REI Voice, you are making an informed decision to choose quality above all else. According to English professor and published critic Michael Grigelevich, our new content consultant at REI Voice, the importance of ethics in print cannot be understated: “The internet and the proliferation of free print magazines are fantastic, because they have democratized the written word. Now everyday people, not just professional journalists, can weigh in on issues and get their voices heard; however, this has also opened up an ethical can of worms - virtually anyone can write anything about anybody, and this can do serious damage. People must make sure their ethics keep up with technology and hold themselves to the same strict standards of above board behavior.” We certainly agree and hold ourselves to strict stands of ethics and the production of quality content. Take, for instance, our recent pieces on Chris Thornberg \ A nationally recognized economist, Chris Thornberg has appeared on NPR and NBC’s The Today Show - among other programs - and powerhouse media outlets like the New York Times and the Wall Street Journal often seek him out for commentary. When you follow us, you receive top notch information from figures such as these. Take this issue, for example: we interviewed Josh Dorkin, the founder and CEO of BiggerPockets.com, one of the most respected and utilized online real estate sites; Mr. Dorkin and BiggerPockets continually receive national press and attention and have built a very valuable educational forum that is free to participate in. We have more toptier figures lined up for future issues, too, so please stay tuned. You may notice that throughout this piece I interchange I/we/us and mine/ours/yours when talking about my organization. This is not accidental; rather, it highlights an important part of my philosophy: for me, my business is about community. Just as with my magazine, I complete due diligence on everyone who works for/with me. They become part of my extended family, and we

build a community within a community. Integrity, passion, and a commitment to excellence starts at the top and permeates the culture here. We’ve created a space that features strong female voices and values the experience that age provides. Some business people may value young ideas, which is good; however, we all lose when we turn away from the wisdom and experience provided by age. We believe everyone has something important to give, and motivated, honest, hard-working people can be all of our greatest assets. I know we value them here more than I can adequately express. My goal here is not to insinuate that we are the only game in town or that we have all the answers; however, I want to highlight our code of ethics, business philosophy, and, above all else, our commitment to fostering a positive, impassioned industry. You all have a role in this, too. I urge you to vet your business partners, and set firm standards for yourself. Never feel that you have to enter into a business situation that makes you uncomfortable. Complete your due diligence. This is your reputation and your business: no one runs the show but you. There is nothing wrong with clear communication and firm boundaries, or, for that matter, holding yourselves and others accountable. I like to think REI Voice and SJREI speak clearly and with authority. We arm good, hard-working people with premium content, upto-date data, and access to educational and networking resources to help them grow and move toward their goals. Please follow us as we continue to grow, expand our team, and offer you the best of everything. Speaking of expanding our team, we are pleased to announce the addition of Michael Grigelevich, a professor of English in Boston, as a content consultant for REI Voice. Michael holds a Masters degree in English from the University of Connecticut and teaches English and Social Sciences at a careerfocused college that trains students to work in growing fields such as Health Information Technology and Biomedical Technology; he is also a published critic. According to Michael, he was drawn to work with us because he “saw and sensed the excitement and commitment to the quality of content and ethical business practices REI Voice follows.” We’re happy to have him on board. Thank you all for your continued interest and support; let’s continue to work together to elevate this industry to help make it the best it can possibly be.

Geraldine Barry is President & Founder of SJREI Association the premier educational and networking association for real estate investors in the Silicon Valley. Under Geraldine’s leadership SJREI has grown from a half-dozen investors to a vibrant organization that connects and educates real estate investors. SJREI won the Award for Excellence from the National REIA in several categories. As an avid investor herself, Geraldine has interviewed multiple real estate pros, many of whom have been guests of SJREI over the last twelve years. In addition to leading SJREI, Geraldine is publisher of the multiple award winning publication REI Voice Magazine. Geraldine has spoken nationally on real estate trends and happenings, and has her hand on the pulse of what is going on in the market place.

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CALENDAR OF EVENTS September Sept 4 - SJREI Monthly Meeting Domain Hotel Sunnyvale @ 7PM Dr. Gupta of SmartZip September 5 - Geraldine Barry speaking at Fidelity National Title, San Jose @ 10:00AM

October Oct 2 - SJREI Monthly Meeting Domain Hotel Sunnyvale @ 7PM Douglas Duncan, Chief Economist for Fannie Mae Oct 11 - JumpStart: Real Estate Fundamentals for All Oct 24 - I Survived Real Estate Event

November November 2 - SJREI Monthly Meeting Domain Hotel Sunnyvale @ 7PM Bruce Norris, President of TNG Nov 15 & 16 - Geraldine Barry, Speaking at San Francisco State University Details to Follow at SJREI.org

December SJREI Holiday luncheon December 5th, Guest Speaker Carole Rodoni Details to follow www.reivoice.com

INVESTOR RESOURCES Attorneys

Private Financing

Real Estate Investment

Jeffrey B.Hare, APC 408-279-3555 jeff@jeffreyhare.com www.jeffreyhare.com

Socotra Capital Chris Baumann DRE License # 01907957 916-277-9304 chris@socotracapital.com www.socotracapital.com

Jason Hartman Platinum Properties Investor Network 714-820-4200 jason@jasonhartman.com www.jasonhartman.com

Banking Umpqua Bank Bryan VanHuystee Mortgage Sales Manager NMLS #669364 408-832-2195 BryanVanHuystee@umpquabank.com www.umpquabank.com/bryanvanhuystee

Home Improvement HD Supply Remodel and Repair Nangvorlee Vang 408-330-0934 Nangvorlee.Vang@hdsupply.com www.hdsrr.com

Insurance Brighton Financial/ Farmers Insurance Vernon Williams 408-931-6582 williams@farmersagent.com www.farmersagent.com/williams

IRA COMPANIES

Hard Money Broker Mark Hanf (800) 605-8050 Mark@PacificPrivateMoney.com www.PacificPrivateMoney.com for Borrowers www.PacificPrivateInvestments.com for investors

Investor Resources Tom Valentineo Zinc Financial, Inc. 559.326.2509

Property Management ACR Property Management Charles Lassey BRE # 01893837 510-786-9025 lassey@aclrealestate.com www.aclrealestate.com facebook.com/aclrealestate

Property Services Thrasher Termite & Pest Control Inc. Janet Thrasher 408-354-9944 info@thrashertermite.com www.thrashertermite.com

Accuplan Benefits Services Lamarr Baxter 915-708-0235 lamarrbaxter@accuplan.net www.accuplan.ne

Real Estate Agents

The Entrust Group Gary Kowalski 800-392-9653 ext. 245 gkowalski@theentrustgroup.com www.the

Sheryl Martinez DRE License # 01310103 408-209-7674 Sheryl@sherylmartinez.com http://about.me/sherylmartinez

IRA Services Trust Company Machael McNair 650-593-2221 www.iraservices.com

Summit Assets Group Lori Greymont 888-298-0652 lori@summitassetsgroup.com www.summitassetsgroup.com Wilson Investment Properties Tom Wilson 408-867-1867 tomkwilson@earthlink.net www.tomwilsonproperties.com

Training & Education SJREI Jumpstart Investor Training Geraldine Barry 408-264-3198 sjrei.geraldine@gmail.com www.sjrei.org/jumpstart

Other Services Taxes Gladys Jimenez Tax Preparer Office: (831) 784-0163 Mobile: (408) 449-2646 gladysinmigracion509@yahoo.com

Keller Williams Realty Silicon Valley Anna Maria Valenzuela 408-832-7727 amv@annamariavalenzuela.com http://about.me/annamariav

Mortgage Brokers Michael Ryan Mortgage Broker and Banker DRE License # 01090891 NMLS # 295351 408-986-1798

Fall 2014 REI Voice

Tuigim* Ger By Geraldine Barry

2014 has been a transformational year for me both personally and professionally. My column, entitled “Tigium” which means in Gaelic, “I hear you, I get you, I understand,” is so appropriate and resonates even more with me now, given the way this year has played out. I finally get what’s important in life now, and don’t fret over life’s little melodramas. I anticipate there will be fallout - that is part and parcel of life-and with acceptance comes peace, and a certain contentment. I hope it helps you as you tackle the game called life, because embracing life and all of it’s love, joy, irony, pain, and moments of bliss is simply what it boils down to. I’ve been reminded that creating bliss amidst the pain, and the busyness of everyday activities is possible even when one’s heart is broken. The sun can shine, and does, if we are available to experience the heat on our bodies and open ourselves to a sliver of sunshine. This is a story of a truly courageous couple who transformed their lives despite pain and hardship, and inspired others around them in the process. I met Kevin through his wife Belle. She came to me, in typical Silicon Valley fashion, via Craigslist. She joined www.reivoice.com

our SJREI team, and as is often the case for me with people I hire, I just fell in love with her. She was bright, funny, productive, and grounding to work with. Who could ask for more? Belle introduced me to Kevin, her husband, and we all soon became fast friends. I am originally from Ireland, and am the only member of my family living here in the US. So Kevin and Belle became part of my family - we celebrated holidays, happy and sad events together, and loved each other. As our friendship grew, and we continued working diligently at SJREI, tragedy, as it often does, struck from nowhere. Kevin, at the young age of 24, was diagnosed with bladder cancer, a true statistical anomaly for someone his age. As Kevin bravely endured chemotherapy and other treatments, he did not want to be home alone, so he came to work with Belle. Half sick, but very tenacious, Kevin became our in-house tech troubleshooter, strategist, and consultant for SJREI. As I work mainly with women, I was enlightened to learn that men bring a very different perspective: where I was weak, he was strong; he would just cut through the clutter and encouraged me to make changes that would move

us forward quickly. Despite his illness, Kevin fought through the adversity and made himself of great use to us at SJREI. The Irish say, “It’s an ill wind that does not blow someone some good.” Since Kevin fell ill, he has done so much good. Kevin’s cancer made him accessible to me in a way that he would not have been had he still been working with his elite team at Ebay, his corporate gig pre-cancer. Kevin has battled this grueling disease for six years now, which is a true testament to his strength, ability to endure, and overall extraordinary character. He has had multiple surgeries and so much chemo that he cannot take anymore, EVER. So, with Belle’s permission, I would like to share the life lessons that I have learned being on this journey with this wonderful, inspirational, courageous couple. If you think you have problems, this will inspire you, motivate you, and help you get your life into the proper perspective. It will keep you in the moment. It did and will continue to do so for me… Just sixteen weeks ago, Kevin and Belle’s daughter Zoe was born.... Belle now cares for Kevin and their newborn round the clock. Belle is Chinese, and is the only member of her family living in the U.S. She continues to persevere despite minimum outside support. What astonishes me the most about Belle is that she never complains, nor does Kevin, despite the grueling emotional and physical pain associated with this cancer. Kevin and Belle never ask “why us?” Never.

lives; they push us to be bolder, to be more courageous, to be better parents, teachers, spouses, and leaders. The ability to get up every day and make a difference in the world is a gift – a gift that Kevin would love to have. Now, I spend a lot of time with Kevin & Belle taking care of lovely, little Zoe. I forgot how labor-intensive newborns are, and I am constantly amazed at Belle’s stamina. That little baby has energy - and then some! She serves as a constant reminder to me of all of the possibilities waiting for her - and for all of us - right around the corner! Zoe moved into our home when Kevin had to go back to Stanford hospital for care, and my children stepped up and embraced the change and learned to love this little one. This summer I realized how strong I am and what wonderful people I have in my life, such as my amazing friends at SJREI who reached out with loving support for this family. I also saw, firsthand, how my children are stronger and more competent than I ever gave them credit for. Kevin and Belle taught me a key lesson in business: love and collaboration need not be mutually exclusive; however, when working in tandem, they can change the world in meaningful ways. Thank you to the SJREI community for the outpouring of love for this family. I’m beyond proud of the love, compassion, and practical support that you provided for our friends.

Geraldine

Belle prefers to focus on enjoying every day with her family. They lived every day to the maximum these last six year between surgeries and treatment doing things I never did. Picking strawberries in Half Moon Bay, visiting Aspen on a whim, hiking, biking, going to concerts, and taking day trips to places that I never knew existed. It makes one stop and reflect upon our own lives, and the petty things that consume all of us at times. The love and affection that is evident in this relationship that now includes little Zoe is breathtaking. In a world where marriages break up every day over trivial things, where people are unwilling to go the extra mile for one another, this courageous couple is leading the charge on what love really means. My Dad always said,“Love is a verb, an action word” – this relationship is, with no doubt, love on steroids. It really is those personal human stories that can pull our heart strings, and push us to live bigger more authentic

* Tuigim (pronounced tigg-im) is the traditional Gaelic answer to the question “An dtuigeann tu?” (Do you understand me?) Tuigum means “I understand,” “I got it,” “I follow,” “I’m with you…” and is the answer Geraldine Barry, native of the Emerald Isle, most loves to hear.

Fall 2014 REI Voice

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