Official publication of
greater
DOWNEY ASSOCIATION OF REALTORS
IN THIS ISSUE:
•
a h e d B e ny a m •N
• How to avoid the top 5 MLS violations
m aw ard s
• July Membership Luncheon
ti n u
• RAF Office winners
H o n g re c e Jin iv e d d an pla
• September is REALTOR® safety month
ei n
• 2020: Leadership results are in!
China’s Crypto Millionaires Are Using Bitcoin to Buy Real Estate Abroad
3rd Quarter 2019 Volume 6 Issue 3 PAGE | 1
YOUR ONE STOP SHOP FOR ALL YOUR MORTGAGE NEEDS Elite One Mortgage has More Lending Choices than a direct lender! PROGRAMS OFFERED BY ELITE ONE MORTGAGE CalHFA Down Payment Assistance Program Community Home Advantage Program Stated Income Loans 95% LTV Jumbo Loans 80% 1st/ 15% 2nd Program 2-1 Buydown Program Interest Only Loans USDA Loans Non-Owner Loans Conventional Financing Bank Statement Program 1 Day Out of Foreclosure, Short Sale, Bankruptcy Commercial Loans 5 + Units Reverse Mortgages FHA Good Neighbor Next Door Loans
Platinum Program FNMA Homestyle Renovation Program Stand Alone Heloc’s FHA Loans Manufactured Financing TIN Program Home Ready Loan and Home Possible Loan VA Loans 203k FHA Financing Non-Warrantable Condo Program No Income Investor Program 1 Year Tax Return Program Hard Money Loan Program CHENOA Program 100% Financing Refinance Loans
Maria Looney
President
NMLS #267368 / DRE #01154999
714-820-4031 562-537-3026
NMLS #275471 / DRE #01443734
10542 Calle Lee, Suite 102 Los Alamitos, CA 90720
Maria@EliteOneMortgage.com
Working together with YOU to take YOUR business to the next level On Time, Every Time.
INBANET DIRECT HARD MONEY LENDER
Fix & Flip / Rehab (California only) Details: Funds in: Starting Rate: Terms: LTV/LTC/ARV: Appraisal: Rehab:
LTV/LTC ARV BASED 3-5 days 9% 12 months 85% LTV Not required Not financed
7-10 days 8.99% 12-16 months 70% ARV / 90% LTC Required 100% financed
Commercial Lending Lowest Rate Available: 5.25% Amortized & Fixed for 30 Years 75% Max LTV Mid Fico 650 Loan Amount: $100k to $5 Million No Tax Returns or Assets Required Seller Carry / 2nd Lien Allowed Nationwide (major metropolitan areas)
In-House Hard Money (California only)
*Non-consumer loan product *For real estate professionals *Strictly for investment purpose. 8141 2nd St. #347, Downey, CA 90241.CORP CA DRE #01890554 CORP NMLS #640607
PAGE | 2
Funds in 5-7 days 1st TD Starting Rate: 8.99% 2nd TD Starting Rate: 10% 1-3 Year Term Up to 70% LTV Foreclosure/Bankruptcy/Bad Credit - OK Loan Amount: $100k to $3 Million Foreign / ITIN Borrowers Welcome All Types of Properties
GREATER DOWNEY
ASSOCIATION OF 2019 LEADERSHIP OF GREATER DAOR Executive Directors: Daniel Nevarez, President Ruben Sarinana, President-Elect Michael Berdelis, Vice President Maria Lilley, Treasurer Jeanette Baumann, Executive V.P. Directors: Jesus Guerra Maribel Chavez Jose Perez Remoun Said Luther Sanchez Esther Lee Carrie Uva Immediate Past President: Ericka Saenz
Greater DAOR Chaplain: Miriam Villanueva
C.A.R. State Directors:
Ericka Saenz, Mireya Ruiz, Michael Berdelis, Daniel Nevarez, Jose Perez, Ruben Sarinana, & Josue Barrios, Regional Chair
Greater DAOR Staff
Jeanette Baumann, EVP - evp@DAOR.com
Customer Care Department
Ramses Serrano communications@DAOR.com Erica Ochoa, education@DAOR.com Selena Mendoza, customercare@DAOR.com Amanda Camerena, outreach@DAOR.com
Membership Department
Julie Sartor, julies@DAOR.com Violet Pantoja, bct@DAOR.com Analia Zendejas, membership@DAOR.com Sussie Gonzalez, cs@DAOR.com
Pg. 5
REALTORS
12073 Paramount Blvd - Downey, CA 90242 Phone: (562) 861-0915 Fax: (562) 923-9995 www.DAOR.com Monday - Friday, 9am-5pm Saturday, 9am-1pm 24/7 text support :
Text DAOR (562) 659-6730 Volume 6 - Issue 3
This publication is printed quarterly, delivered March, June, September & December
Education Center
12069 Paramount Blvd Downey, CA 90242
Page 1-2 How to Avoid the Top 5 MLS violations Page 4-15 China’s Crypto Millionaires Page 3 RAF Office Winners Page 5-6 July Membership Luncheon Page 7 Clothes the Deal Drive Page 8 SavvyCard Page 9 Open House Page 10 2020 Election Results Page 11-12 Top 10 Open House Safety Tips Page 13-14 Humans are the value wedge Like and follow our Facebook and Instagram
COMMITEES Budget & Finance Committee Jason Cierpiszewski, Chairperson
Professional Standards Committee
Ernie Sifuentes, Chairperson
LCRC Trustees
Michael Berdelis, Chairperson
Oversight Committee
Vicki Spearman, Chairperson
Affiliates In Action Committee
Gloria Navarro, Chairperson
Scholarship Committee Roman Meza, Chairperson
Grievance Committee
Edwin Acevedo, Chairperson
ON THE COVER
Membership/MLS Technology Committee
Lourdes Galvez, Chairperson
REALTORS Advocating for Political Progress
Jennifer Avellan, Chairperson
REALTOR Community Relations Committee Daniel Andrade, Chairperson
Greater DAOR member offices compete for Top RAF Fundraising see the winners Page 3
PAGE | 3
How to Avoid the Top 5 MLS Violations Late Entry of Listing & Exclusion – MLS Rule 7.8 and 7.9 Description of Violation: This violation occurs when a listing is not entered into the MLS in a timely manner and the listing broker did not file an MLS Exclusion Form with the MLS/ Association. How to Avoid the violation: To help avoid this violation, you must enter a listing into the MLS within two business days of either (1) the listing contract date, or (2) the date the seller’s signature was obtained on the listing agreement, whichever is later. If the seller wants their property listed on the MLS, but the property is not ready for marketing or showings, it is recommended that the listing agent utilize the CRMLS Exclusion form. The seller has the option of utilizing the CRMLS Exclusion form to delay the marketing of the property, so that the period of time where no marketing occurs will not be counted against the Days on Market when later entered into the MLS. Please see the detailed instructions at https:// kb.crmls.org/knowledgebase/how-to-exclude-alisting-from-the-mls/. Inaccurate Information – Auto Sold – MLS Rule 8.3 Description of Violation: An Auto Sold violation occurs when a listing is automatically changed to Sold status by the MLS system (appears as), which is a result of not manually updating a listing in the Pending/Backup status. An Auto Sold listing is considered an Inaccurate Information violation, because the listing is closed and displays estimated and unconfirmed sales information. PAGE | 1
How to Avoid the violation: To help avoid an Auto Sold violation, you must properly and manually manage your listings in the Pending/ Active Under Contract status. When a listing is changed to the Pending/Active Under Contract status, you are required to enter an estimated close of escrow date (“Estimated COE date”), as well as estimated sales information. Within two business days of your Estimated COE date, you must either (1) extend your Estimated COE date if escrow has been delayed, (2) update your listing to the appropriate status if a status change occurred, or (3) confirm the sales information and manually update the listing to Sold. Courtesy notices are sent by email 14 days prior to, 7 days prior to, 1 day prior to, and on the day of your Estimated COE Date, as reminders to manually update your listing. Exterior Photo Required – MLS Rule 11.5 Description of Violation: Within 5 calendar days of entry, listings input into the MLS are required to have at least one photograph accurately depicting a substantial portion of the exterior of the property. How to Avoid the violation: To help avoid this violation, you must add at least one photo of the exterior structure of the listed property within five calendar days of entering a listing into the MLS, regardless of the listing status. If a property is sold within five calendar days of entering the listing into the MLS, it is important that you add at least one exterior structural photo prior to closing the listing. This photo requirement does not apply to (1) Business opportunity listings, or (2) listings that are Canceled within five calendar days of entry.
Branded Photos/Media and Copyright Issues – MLS Rule 11.5 Description of Violation: Photos, virtual tours and any media submitted to the MLS must not contain any branding or promotional information related to the listing broker or agent. The listing broker must also possess the proper authorization to use media obtained from third parties.
obtained the proper authorization to use the media before submitting to the MLS. Misuse of Public Remarks – MLS Rule 12.5 Description of Violation: A Misuse of Public Remarks violation occurs when prohibited information or verbiage is placed in any public remarks field.
How to Avoid the violation: Photos and media How to Avoid the violation: To help avoid uploaded onto the MLS must not contain any of the a Misuse of Public Remarks violation, it is items below. important that the remarks in the Property Description field are limited to the physical and Agent, Broker, or Brokerage names or photos or aesthetic characteristics of the property. logos Phone Numbers The Property Description field may not include: Website addresses Email Addresses Gate codes For sale or for lease signs, billboards, open house Showing Instructions signs, promotion signs, or any other advertising Compensation Information material with identifiable information Lockbox information Messages or solicitations Occupancy status of the property such as “vacant” Images of people, animals, or other items not Email addresses directly related to the listing Website addresses Copyright and use of media from third parties: Phone numbers Agent or brokerage information If Photographs and media are obtained from third Open house information parties, such as photographers, the submitting Language that violates applicable fair housing agent and broker must ensure that they have laws and guidelines.
PAGE | 2
REALTOR Action Fund Office Winners
Place
Small Office
Lotus Group 1st 2nd Coldwell Banker Allstars 3rd Re/Max Supreme
PAGE | 3
Medium Office
24 Hour Real Estate C21 Jervis Realty One Group
Large Office
C21 Realty Masters C21 A Better Service C21 Allstars
China’s Crypto Millionaires Are Using Bitcoin to Buy Real Estate Abroad by Wolfie Zhao , Leigh Cuen
T he chives growing in one crypto tycoon’s California mansion carry a hidden message.
As Chinese regulators clamp down on industry business on the mainland, crypto millionaires are turning to foreign real estate markets to diversify their holdings. Some purchase property directly with crypto, others like Hongcai use bitcoin to gain foreign currencies without going through a bank.
Guo Hongcai, a beef salesman turned early bitcoin adopter from China’s Shanxi province, is one of many freshly minted millionaires funneling parts of their wealth out of the country by purchasing real estate abroad. The founders of the U.S. crypto real estate startup Slice told CoinDesk roughly one-third of their In April, Hongcai sold 500 bitcoin in the U.S. prospective users hail from Asia, figures which include then used that money to buy a 100,000-square- Chinese investors seeking tokenized property rights foot mansion in Los Gatos, a 90-minute drive through Hong Kong securities brokers. from San Francisco, California. His RollsRoyce, also purchased with the fruits of bitcoin According to the South China Morning Post, real arbitrage, sits in the driveway close to a small estate purchased in Hong Kong doesn’t require the chives garden. same taxes and documentation as other financial assets held abroad. Chinese investment in foreign “It’s very normal to sell bitcoin in the U.S. After real estate, often through Hong Kong brokers, has selling bitcoin, you can just buy anything you been rising for years. Now early bitcoin adopters are want,” he told CoinDesk. utilizing new wealth for familiar patterns. Guo calls this secondary residence his “Mansion of Chives,” because the vegetable is also Chinese slang for crypto investors who prove vulnerable to big sell-offs.
“The requests we have from them start at $50,000 or ;
Continued on pg 15
PAGE | 4
JULY LUNCHEON
July Luncheon
With
Anthony Galie
The Greater DAOR members got together for the second quarter Top Producer Awards. The special guest speaker at this event was Anthony Galie - an author, speaker and trained psychotherapist. Anthony has studied the secrets of top performers in every field. In his wildly entertaining keynote, he taught our members how to achieve the unthinkable - and how they could put the same scientific principles to work in their business and personal life.
PAGE | 5
Top Producers Awards
Top producer award
“I would ask people who are high achievers and ask them what
motivated them to keep on going, and the number one response that I heard was “I write my goals down.” “
PAGE | 6
PAGE PAGE || 77
PAGE PAGE| 8| 8
PAGE PAGE || 99
Maria Lilley
Tyler Wirth
Mireya Ruiz
Jeff Worthy
Edwin Acevedo PAGE PAGE| |1010
10
Tips for holding a Safe Open House
Open houses can be a great sales tool—but hosting one also exposes you to numerous unfamiliar people for the first time. Take these 10 steps to stay safe:
1. Checking-in
When you have a new client, ask him/her to stop by your office and complete a Prospect Identification Form (Find a copy online at www.nar.realtor/Safety). Also, photocopy their driver’s license and retain this information at your office. Be certain to properly discard this personal information when you no longer need it.
2. Don’t be too public
Limit the amount of personal information you share. Consider advertising without using your photograph, home phone number and/or home address in the newspaper or on business cards. Don’t use your full name with middle name or initial. Use your office address—or list no address at all. Giving out too much of the wrong information can make you a target.
3.Guide from behind
When showing a home, always have your client walk in front of you. Don’t lead them, but rather, direct them from a position slightly behind them. You can gesture for them to go ahead of you and say, for example, “The master suite is in the back of the house.”
4. Pick up some self-defense skills
The best way to find a good self-defense class is to learn what is available, and then make a decision. Many health clubs, martial arts studios and community colleges offer some type of class. You can also ask your peers, friends and family if they have taken a self-defense class that they would recommend. of
Keep track colleagues
5. Agree on an office distress code
Don’t dial and drive! PAGE PAGE || 11 11
Create a voice distress code, a secret word or phrase that is not commonly used but can be worked into any conversation for cases where you feel that you are in danger. Use this if the person you are with can overhear the conversation, but you don’t want to alarm them. Example: “Hi, this is Jennifer. I’m with Mr. Henderson at the Elm Street listing. Could you email me the RED FILE?”
September is REALTOR safety month www.nar.realtor/Safety
6.Take two seconds when you arrive at your destination to check out potential dangers:
Is there any questionable activity in the area? Are you parked in a well-lit, visible location? Can you be blocked in the driveway by another vehicle?
7. Don’t get lost
If you are in an unfamiliar area, make mental notes of landmarks, points of interest and intersections, and always know the exact address of where you are going. If you must use a GPS, then pull over and stop in a safe place first.
8. From dawn till dusk
When showing a vacant commercial site, be aware of the time of day you meet a client. Showing a property at dusk or after dark, with no electricity on in the space you are showing, is not advisable.
9. Don’t get blocked-in
When showing property or meeting someone, park your car in front of the property rather than in the driveway. You will avoid having your car blocked in, you’ll have an easier time escaping in your vehicle, and you will attract lots of attention running and screaming to your car at the curb area.
10. Make your clients your “safety partners”
Inform clients who are selling that while you are taking safety precautions, and that you’ve checked and locked the home before leaving, they should immediately double-check all locks and scout for missing items immediately upon their return, in case you’ve missed any less-than-obvious means of entry.
Now available at Greater DAOR
THE SAFESOUND PERSONAL ALARM BRINGS YOU SAFETY, PROTECTION & PEACE OF MIND Safety experts and police both agree that all women and children should carry a SafeSound Personal Alarm with them at all times. It has been proven to be extremely effective in fending off attacks from even the most vicious criminals. As a result, millions of American women and children all over the country are now protecting themselves with a SafeSound Personal Alarm.
Get yours today for ONLY $19.95+tax
PAGE | 12
Humans Are The Value Wedge!
Your brokerage’s unique personality and knowledge are what give you the edge. By Larry Kendall, author of Nija Selling & Chairman Emeritus of the Group, Inc. Real Estate
Have you observed that money flows to value? Our value proposition typically answers three basic questions:
1.How do I solve a client’s problem? (pain) 2.How do I make them feel good? (pleasure) 3.How am I different from competitors? (value wedge) The third question involves our value wedge, as shown in the diagram to the right.
Value Parity is what nearly all sales associates and companies provide, including competitors. Examples for a seller include a yard sign, multiple listing service (MLS), and home brochure. Nearly everyone offers these services, so they are not differentiating. The seller wants to know what we do that is different and valuable. This is the Value Wedge. What is the most significant component of the value wedge? In my observation, it is the human factor–the unique personality, caring, knowledge, rapport, and skills of the person delivering the service. Take the human element out, and you come close to having a commodity. Commodities have a reduced value. Are We Improving Service? In our efforts to improve technology, are we enhancing our service or commoditizing it? Here’s PAGE | 13
an example from the mortgage industry. After five days with 116 top-producing mortgage loan officers, they all agreed on one thing: Their companies’ efforts to improve technology had commoditized certain parts of their business, making it harder for them to build relationships, counsel borrowers, and create a value wedge. Buyers jump on the various prequalification apps to find the best rate. What buyers need is to find the best loan for their situation. This comes with counseling. For example, if the buyers have limited cash, the best loan for them may be one that takes less cash but has a slightly higher rate. The opportunity for the loan officer to counsel the borrower to find the best loan may never happen.
has increased confusion and lowered conversion rates from prequal to application. What about the real estate brokerage industry? Will the current tech race and infatuation with ibuyers commoditize the brokerage transaction? Is technology making it better consumers? Is this effort consumer driven or industry driven? Where should you place your bets?
Jeff Colvin, in his book, Humans Are In many cases, the value wedge and the Underrated, What High Achievers Know that human factor are being eliminated in the Brilliant Machines Never Will, says the soft prequalification process. By the time the loan skills of Empathy, Creativity, Communication, officer sees the computerized prequal and Collaboration, and Relationship are the critical follows up on it, the buyers are confused. 21st Century Skills. He believes the human factor Has this process improved the borrower’s will be more critical than ever. Humans are the experience? According to the loan officers, it value wedge. Let’s Talk Today! Se Habla Español
Alex Ascencio Divisional Manager
NMLS#244230 | CA BRE: 01302752
O: 562-861-1414 | C: 562-413-1087 aascencio@afncorp.com www.alexascencio.afncorp.com
*Not available in all areas. American Financial Network, Inc. is not acting on behalf of or at the direction of HUD/FHA or the federal government. Borrowers must continue to make property tax, insurance, and other maintenance payments in order to avoid risk of default. American Financial Network, Inc. is licensed by the California Department of Business Oversight under the California Financing Law License (60DBO49916) and holds a CA Bureau of Real Estate, Real Estate Broker’s License (01317581) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 242234. Broker is performing acts for which a license is required. Loans made or arranged pursuant to California Financing Law. Refer to http://www.nmlsconsumeraccess.org/ and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (909) 606-3905 (NMLS ID#237341). This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR 1026.2(a)(2). This information is not intended for consumers and may not be duplicated or disseminated to the public.
PAGE | 14
$100,000 up to, the latest one was $3 to $4 million for Silicon Valley,” Natalia Karayaneva, CEO of Propy, another crypto-powered real estate marketplace, told CoinDesk. She added:
“We’re seeing that more and more people are willing to buy properties with cryptocurrencies because it’s getting easier to get their money out of the country using bitcoin, rather than establishing a bank account based in Hong Kong and getting their money out of the country using business channels.”
Crypto hubs
According to Karayaneva, the U.S. and the U.K. are the most sought-after locations for real estate, especially fintech hubs like London or California’s Bay Area. “They were mostly interested in residential properties next to good education, like Stanford,” she said. “Also, they want to diversify. They want to have parts of their assets abroad in more stable countries.” So far, around half of the traffic to Propy’s website comes from China, out of 50,000 monthly views. It’s a trend that has implications far beyond China, though, especially in California, where, according to statistics gathered over a decade by ATTOM Data Solutions, nearly a quarter of all single-family homes are now purchased in all-cash transactions without a mortgage. According to CEO Roy Dekel at SetSchedule, a California-based startup helping licensed real estate agents connect with buyers and homeowners, it’s more common for Chinese bitcoin veterans to convert cryptocurrency into cash than to buy property directly with it. “We have noticed a drop in Chinese interest, but certain cities like Los Angeles, San Francisco, and New York remain strong,” he told CoinDesk. “The ultra-wealthy Chinese have used this source as a diversification of investment.”
High rollers
On the other hand, Dekel also noticed “many blockchain enthusiasts” are buying second homes or investment properties, leading to an uptick in sellers interested in accepting cryptocurrencies directly from international buyers.Since platforms like Propy are compliant across jurisdictions, the reason behind this trend may go beyond tax evasion, speaking to real pain points in legitimate markets. In January, The New York Times asserted that China’s exorbitant housing market is “like a casino.” Further, Reuters reported property development restrictions continue to tighten, such as reduced subsidies for housing developers. “In Beijing, only last year they saw a 40 percent rise in price,” Karayaneva said. “Historically, real estate investors from China are very active abroad because their own property market is going crazy.” All things considered, Chinese buyers are hardly the only ones purchasing property with cryptocurrency. In 2017, Europeans used bitcoin to buy luxury apartments in Dubai’s Aston Crypto Plaza, a project spearheaded by British Baroness Michelle Mone. Wherever it’s taking place, though, it has become increasingly clear that crypto wealth could have a real impact on global real estate patterns.
Septermber 25-26th PAGE || 15 15 PAGE
• Fast and reliable service • We will answer your call • Close on time • Over years of experience • Residential and commercial
Adriana Solis
President / Escrow Officer Adriana@telegraphescrow.com 9519 Telegraph Rd. Suite G Pico Rivera, CA 90660 Office (562) 825-3000 Fax (562) 825-3002 Cell (323) 514-1049
www.telegraphescrow.com
Ray Cit bank will provide artwork
PAGE | 16
12073 Paramount Blvd, Downey CA 90242 “Your Personal REALTOR Association”
BANK LIKE YOU If you are purchasing or refinancing your home or investment property, we offer some of the most competitive interest rates and excellent service. We’ve been lending in our communities for over 25 years. Call us with your conventional, FHA, first time homebuyer and refinance needs. Also, get $525 Cash Back when you fund your next loan with us*. Call us today (562) 972-2181 *$525 cash back eligibility: This offer is only available for a new, first lien residential refinance or purchase mortgage loans
Mario Loria
Vice President Market Manager NMLS 381819 M: (213) 712-7873
PAGE | 17
Lilia Gonzalez
Supervisor, Field Loan Officer NMLS 377362 M: (562) 972-2181
funded by CIT Bank. Customers must open or have a CIT Bank deposit account in order to receive $525 cash back deposit. If customers do not have a CIT Bank account, a new deposit account must be opened prior to document drawing. $525 cash back will be deposited into the CIT Bank account within 45 days of loan closing. This offer is limited to one $525 cash back payment per loan. The $525 cash back offer may be discontinued at any time without notice. The value of this offer may be reported to the IRS and the customer is responsible for any federal, state or local taxes. This advertisement is not a commitment to lend. All loan programs are subject to review and approval of credit and collateral. Rates and terms are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations may apply.
www.citbank.com
©2019 CIT Group Inc. All rights reserved.