ArcadiaREALTOR®The Official Publication of the Arcadia Association of REALTORS®

VOL. 16, NO. 3WWW.THEAAR.COMMARCH 2012

Is the “No Point, No Fee” Loan Really a Bargain?

See page 11

C.A.R. Business Meetings Report Save the Date!

See page 5 See page 10

Applications for 2013 AAR Board of Directors Now

AvailableSee page 5

2

Arcadia Association of REALTORS®601 South First Avenue

Arcadia, California 91006626.446.2115

626.446.4072 FAXwww.TheAAR.com

2012 ASSOCIATION OFFICERSRyan Asao {President}

Andy Bencosme {President-Elect}Mike Vachani {Vice-President}

Jill Nelson {Secretary/Treasurer}

2012 ASSOCIATION DIRECTORSMargaret Garemore

Jeanne KeatingJohn Lee

Paulina LeeGeorge MonteJoseph PacilioSylvia Ramos

Irene YamagataNick Zigic

2012 C.A.R. DIRECTORSRyan Asao

Andy BencosmeJeanne Keating

Paulina LeeGeorge MonteRichard StoneRandall Traw

Mike VachaniKelvin Wong

Nick Zigic

ARCADIA ASSOCIATION STAFF We are here to help you with your needs! Office Phone 626.446.2115

Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com

Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com

Jane DeGraaf-Wade Ext. 301 Director of Association Services Jane@TheAAR.com

Stephanie Maertens Ext. 303 Director of Education, Publications & MLS Caravan Stephanie@TheAAR.com

Brenda Reed Ext. 304 Director of MLS Data Integrity, Supra & Social Media Brenda@TheAAR.com

Maria Roberts Ext. 305 Director of Membership & Professional Standards Maria@TheAAR.com

Andrew Cooper Ext. 308 Executive Vice President Andrew@TheAAR.com

{ Arcadia REALTOR® | March | Two Thousand and Twelve | Volume Sixteen | Number Three}03.12

ArcadiaREALTOR®

REGULAR FEATURES

4 Events Calendar

4 From the EVP’s Desk Andrew Cooper, Executive Vice President

5 Attorney Comments Dave Freeman, AAR Legal Counsel

6 Market Matters

10 Tech Talk “BizN.E.T. 2012” Joe Pacilio and Irene Yamagata, Tech Committee Co-Chairmen

11 Affiliate Corner “Is the ‘No Point, No Fee’ Loan Really a Bargain?” Scott Shimamoto, Franklin Loan Center

February 2012

ON THE COVER5 C.A.R. Business Meetings Report For a look at what was covered at the recent C.A.R. Business Meetings in Indian Wells, visit www.TheAAR.com.

10 Biz N.E.T. 2012 Save the date for our upcoming Expo at the Santa Anita Racetrack.

11 Is the “No Point, No Fee” Loan Really a Bargain? Learn the in’s and out’s of the “No Point, No Fee” loan that is commonly advertised on television. Is it really that beneficial to your clients?

ADDITIONAL CONTENTS3 Lunar New Year Celebration A recap of the recent celebration at the Arcadia Masonic Center.

3 Education Committee “Income Tax Changes in 2012” A recap of the recent free course offered by the AAR Education Committee.

5 Applications for AAR Board of Directors are now available at the AAR, the weekly MLS Caravan or at www.TheAAR.com.

7 AAR New Members The AAR welcomes its newest REALTOR® members.

8 Equal / Housing Opportunity Committee “Let’s Help Our Veterans With Homeownership” Many Veterans are not aware of all of the financing for homeownership that is available to them. Make sure to educate yourselves so you can educate your clients.

8 Public Relations Committee A look at the goals of the Committee (previously the Marketing Committee) for this coming year.

9 Young Professionals Network (YPN) Committee “SoCal YPN Mega Mixer” A recap of one of the largest YPN events yet.

10 5 Things You Need to Know About Facebook’s IPO - A Wake Up Call for REALTORS® Did you know that Facebook will be going public? Have you considered the potential affects this will have on your and your marketing?

12 Ryan Asao Receives Sterling “R” AAR President, Ryan Asao was recently presented with this N.A.R. recognition.

13 AIR Forecast Dinner & Market Outlook A forecast of the Commercial real estate market in the San Gabriel Valley.

13 Commercial Marketing Mixer

Arcadia REALTOR® Magazine

Lunar New Year Celebration

3

The Arcadia Association of REALTORS® recently celebrated Lunar New Year at the weekly MLS Caravan meeting. It was quite a colorful and festive affair with red and gold decorations displayed for all to enjoy. There were even lovely oranges and tangerines on the tables to help wish everyone a year of success and great wealth. A special thank you to Dave Scarminach, ulie Muttavangkul and the many AAR Affiliates who arrived early to help decorate and set-up the event.

Helpers at the event are (L to R): Kal Antoun, Benchmark Mortgage – ThompsonSpiteri; Nicole Menard, Fidelity National Title; John Thompson, Benchmark Mortgage – ThompsonSpiteri; Dave Scarminach, Events Coordinator; Nikki Felix, PNC Mortgage; Terri Fabbri, Design Escrow; Diane Balsamo, PNC Mortgage; Shelly Malicek, Design Escrow; Romy Rahmanian, Attorney at Law; Michael Tseng, Farmers Insurance and Tina Thompson, Benchmark Mortgage – ThompsonSpiteri.

EDUCATION COMMITTEE“Income Tax Changes in 2012”

The AAR Education Committee recently held a course on Income Tax Changes in 2011. Instructor, Julie Gentile-Soldo, Gentile, McClosky and Company, helped those who attended to understand the changes in the tax laws for the upcoming year including: expectations for capital gains and inheritance tax, tax impacts of real property transactions, record keeping requirements and much more. A special thank you to our sponsor, Diane Balsamo, PNC Mortgage, who provided a wonderful continental breakfast for those who attended.

Education Committee members with the sponsor and speakers are (L to R): Nikki Felix, PNC Mortgage; Patrick McCloskey, Speaker; Diane Balsamo, PNC Mortgage; Julie Gentile Soldo, Speaker and Connie Hanson.

411 E. Huntington Dr. Suite 101 B, Arcadia CA 91006 Phone: 626-446-2401 Fax: 626-446-2362

Ready for a Stress-Free Closing????

Let the Contempo Escrow Team show you how easy it can be!! Short Sales Bulk Sales ABC License Transfers Commercial Residential Refinance Mobile Homes Contempo Escrow’s educated, friendly and proficient team will provide the best escrow services available to you and your clients! Open your next escrow with us, and experience the

Contempo Difference!!

Amy Choy Escrow Officer

Teresa L. Shaver Certified Sr. Escrow Officer

FROM THE EVP’S DESKAs we close out the 1st quarter of 2012, we want to take a moment to extend our sincere gratitude to each of you for your ongoing commitment to our wonderful industry and to the Arcadia Association of REALTORS®. 2011 was certainly one of the more difficult years for the economy and the housing sector, however you persevered and rose to the challenges facing

our industry. You should take pride in knowing that through your efforts countless clients and customers have found successful solutions to their real estate and affiliated business needs during these uncertain times. Undoubtedly, they will be loyal to you in the years ahead and for that outcome, we thank you. While we are seeing lots of improvement, there is still work to be done on our economy and the real estate market. However one thing has never been more evident: The commitment to you from the Arcadia Association of REALTORS® has never been stronger. Our focus this year continues to be helping your business grow by providing you with access to world-class and industry-leading education, classes, training, outstanding member support and technology that will better position your business for success. It’s important to understand that we’re in this together – for the long-term - and by us working together and you actively participating in everything the AAR offers, we will enjoy the mutual benefits of that relationship for many years to come.

If you recall last month’s Super Bowl, the game wasn’t decided at the end of the 1st quarter. It took until the end of the 4th quarter to decide the final outcome. Your business is the same way! We have 3 glorious, opportunity-filled quarters to go so continue to work hard for the rest of 2012 – and don’t forget, we’ll be with you every step of the way.

Andrew CooperExecutive Vice-President

1 9:30 a.m. - Commercial Committee Mtg. 11:00 a.m. - Commercial Marketing Mixer

2 9:00 a.m. - 12:00 p.m. - RPA Class @ Masonic Center 12:00 p.m. - 1:30 p.m. - Toastmasters

5 10:00 a.m. - 4:00 p.m. - CRMLS Training

7 8:30 a.m. - MLS Caravan 9:30 a.m. - Events 4 Charity Committee Mtg. 9:30 a.m. - Public Relations Committee Mtg. 1:00 p.m. - Ethics Video

8 12:00 p.m. - Young Professionals Network Mtg.

12 8:30 a.m. - New Member Orientation 10:00 a.m. - CRMLS Association Executive’s Mtg.

13 11:00 a.m. - Tech Committee Mtg. 1:30 p.m. - CRMLS Operations Mtg.

14 8:30 a.m. - MLS Caravan 9:00 a.m. - Affiliate Committee Mtg. 9:30 a.m. - MLS Committee Mtg. 3:30 p.m. - Equal Opportunity / Housing Affordability Committee Mtg.

16 12:00 p.m. - 5:00 p.m. - Day at the Races @ Santa Anita Racetrack

20 10:00 a.m. - Zipforms Training 2:30 p.m. - Education Committee Mtg.

21 8:30 a.m. - MLS Caravan 1:30 p.m. - Local Government Relations Committee Mtg. 3:00 p.m. - Global Business Alliance Committee Mtg. 4:00 p.m. - Global Business Networking Mixer

22 1:30 p.m. - CRMLS Finance Mtg.

23 12:00 p.m. - 1:30 p.m. - Toastmasters

26 12:00 p.m. - CRMLS Board of Director’s Mtg.

27 1:00 p.m. - Budget and Finance Committee Mtg.

28 8:30 a.m. - MLS Caravan

29 5:30 p.m. - YPN “Party for a Purpose” 30 8:30 a.m. - AAR Board of Directors Mtg.

March 2012

March Events Calendar

4

AttorneyComments

By Dave Freeman, Association Counsel

February 2012

1. SPECIFIC PERFORMANCE: This type of action is starting to increase, as it did when property sales and prices started to pick up last time. However, prices and sales haven’t really picked up yet. Why then, are Specific Performance type actions beginning to pick up? First, what are Specific Performance actions? This is the type of legal action in Court, to force a seller to sell the property as agreed to in a contract. Why is the seller backing out if prices and sales are not picking up? Usually, it is because the seller has gotten a better offer for the property after executing the contract with your buyer. This results from, lately, a relatively low listing price, leading to a quick offer, followed shortly thereafter by several competing offers from different buyers (a feeding frenzy). The solution for the buyer is to file a Specific Performance action in Court and to record a Lis Pendens (a Notice of Pending Action) at the Country Recorder’s office. The Lis Pendens will effectively stop the seller from selling to anyone else or from borrowing against the property until the matter is litigated in Court or settled. The Specific Performance action is, in effect, asking the Judge to make the seller perform the contract as agreed. The combination of a Specific Performance action and a Lis Pendens are very effective measures, usually leading to a quick settlement or a successful mediation.

2. “AS IS” SALES AND LEASES: Be careful with the current purchase contract (and lease agreements), when representing the buyers. The purchase contract is an “As Is” contract, stating that the buyer is to inspect and rely on his own inspections and inspectors regarding the condition of the property. Although the seller is required to disclose those deficiencies that he is aware of in the property, many sellers don’t, and later claim they had no knowledge of any defects discovered after close of escrow. Further, the recent case law has made it clear that the real estate agent is responsible to conduct a diligent visual inspection of the property, and to disclose any factors which might materially affect the value of the property to the buyer. I recently have seen a number of cases, both sales and leases, where after the escrow is closed, or the lease is executed the buyer/lessee discovers serious defects in the property including but not limited to bad roofs, poor electrical wiring and unpermitted work or additions having been performed on the property. Since your contract is an “As Is” contract, your buyer/lessee will have to prove that the seller knew or reasonably should have known of the defects. Should the buyer/lessee go to an attorney to files such an action, many attorneys will decide to sue the agent and broker as well, stating that the agent should have discovered the defects. Solution: If there is any doubt,

be sure the buyer/lessee has a proficient inspector, or contractor, in addition to the “home inspection”, to thoroughly inspect the property.

3. SHORT SALE DEFICIENCIES – PROSPECTIIVE ENFORCEMENT: A recent lawsuit against Bank of America has made it clear that the addition of Civil Code Section 580e to the Anti-Deficiency Statutes does not apply retroactively, only prospectively. This means that the new law, which states that after a Short Sale, any lender who has agreed to the Short Sale (First T.D.s or Second T.D.s) cannot sue the borrower/seller for the amount remaining unpaid on the loan after a Short Sale, only applies to Short Sales completed since the new law took effect. Recently the question has come up: What about Short Sales that were completed before the new law? The new law took effect on January 2, 2011, and was subsequently modified on July 15, 2011. The Bank of America case made it clear that is a Short Sale was completed prior to the new law taking effect, the seller/borrower was not protected by the new law. That is, if your Short Sale was completed prior to January 2, 2011 and the lender then decides to sue for the amount remaining on the loan and unsatisfied through the Short Sale, they can proceed with the suite in spite of the new law.

Arcadia REALTOR® Magazine5

C.A.R. Meeting Report - Indian Wells

To review the most recent California Association ofREALTORS® business meetings in Indian Wells, visit www.TheAAR.com and click the link beneath “Arcadia News”. For questions, call the AAR at (626) 446-2115.

Applications for AAR 2013 Board of Directors are now available at the

AAR, the weekly MLS Caravan or atwww.TheAAR.com. Deadline to

submit application or nomination is Friday, March 30th.

6

MarketMatters

Market Statistics for the San Gabriel ValleySingle Family Homes Condominiums SFR Only

City Zip Code

Sales of Single Family

HomesPrice Median SFR ($1,000)

Price % Chg from January

2011

Sales Count

Condos

Price Median Condo

($1,000)

Price & Chg from January

2011

Median Home Price/

Sq. Ft.Alhambra 91801 11 $470 10.6% 5 $297 -18.7% $344Alhambra 91803 7 $410 0.6% 3 $355 -1.4% $276Altadena 91001 27 $365 -17.1% n/a n/a n/a $298Arcadia 91006 12 $990 17.0% 5 $480 -11.4% $381Arcadia 91007 14 $708 -14.8% 6 $297 -35.2% $389Azusa 91702 22 $245 -2.0% 14 $190 15.2% $190Duarte 91010 14 $249 -6.7% 8 $300 29.9% $246El Monte 91731 3 $277 -13.4% 1 $395 58.0% $298El Monte 91732 12 $271 0.4% 8 $250 -11.3% $188El Monte - South 91733 13 $222 -26.0% 2 $282 12.9% $198Glendora 91740 10 $308 -6.1% n/a n/a n/a $250Glendora 91741 10 $419 -18.7% n/a n/a n/a $251La Cañada Flintridge 91011 12 $871 -9.3% n/a n/a n/a $417La Verne 91750 13 $450 15.4% 7 $276 84.0% $229Monrovia 91016 14 $347 -14.4% 4 $257 -32.8% $249Pasadena 91101 n/a n/a n/a 5 $253 -41.8% n/aPasadena 91103 8 $273 -35.9% 3 $336 n/a $236Pasadena 91104 18 $490 -5.3% 1 $255 -8.9% $382Pasadena 91105 6 $1,020 -50.9% 2 $592 -3.0% $574Pasadena 91106 3 $425 -59.4% 8 $413 15.9% $349Pasadena 91107 19 $570 -0.4% 5 $309 -19.7% $344Rosemead 91770 14 $330 -3.9% 2 $462 66.3% $265San Gabriel 91775 9 $613 -0.7% 1 $970 32.1% $384San Gabriel 91776 6 $398 -10.7% 5 $396 -4.6% $369San Marino 91108 8 $1,587 12.6% n/a n/a n/a $573Sierra Madre 91024 5 $653 1.2% 3 $652 5.9% $396Temple City 91780 16 $500 -2.1% 1 $450 76.5% $329

Source: DQNews.com

January 2012

March 2012

Arcadia REALTOR® Magazine

(626) 831-8862www.morrisoninspects.com 7

AAR New MembersThe Arcadia Association of REALTORS® would like to formally welcome our newest REALTOR® members!

AAR new members with Membership Committee Vice Chairman, Cindy Shiao and Committee Chairman, Sylvia Ramos are (in no particular order): Craig Lu, Resource Real Estate Services; Natasha Fong, Coldwell Banker George; Emily Luu, Keller Williams West Foothills; Vincent Hon, Homes Realty; Daniel Petty, Century 21 Earll, LTD.; Patricia Mashikian, Prudential California Realty; Rong Hua, Coldwell Banker Dynasty Temple City; Becky Wong, Coldwell Banker Dynasty Temple City; Huo Yang, Grandmark Realty Inc.; Julie Cheng, Realticor, Inc.; Qian Wu, Highland Real Estate; James Kuang, Coldwell Banker New Century; Benjamin Menjivar, Prudential California Realty; Andy Cheng, Grandmark Realty Inc.; Molly Hsu, Long Dragon Realty; Lin Yau Hsu, Long Dragon Realty; Ryan McMahon, Coldwell Banker George; Yichun Kuo, Goldstar Properties; Susan Hong, Grandmark Realty Inc.; Xiao Feng, RE/MAX 1000 Realty; Stephanie Dang, IRN Realty; Sara Ambrocio-Enriquez, RE/MAX 1000 Realty; Gloria Johnson, Keller Williams West Foothills; Galen Ko, Coldwell Banker Dynasty T.C.; Alpha Liu, Long Dragon Realty; Cheng Chang, Coldwell Banker George; Sujatha Pai, Coldwell Banker George; Marie Naval, Podley Properties and Tracy Kuang, Grandmark Realty Inc.

March 20128

By Nikki Felix, Committee Member

EQUAL / HOUSING OPPORTUNITY COMMITTEE“Let’s Help Our Veterans With Homeownership”

We are always asked to support and help our troops. Most Veterans are not fully aware of the VA financing benefits that are available to them. One way we could help our Veterans is by offering and explaining the benefits of VA financing. We can help them prepare and ultimately become homeowners. A VA loan is 100% financing – yes, zero down payment! And, no asset reserves are needed. In addition, the seller can contribute towards all closing costs; and concessions from interested parties (i.e. the seller, REALTOR® or builder) are allowed. However, the borrower can pay allowable closing costs (discount points, appraisal, prepaid taxes, title insurance, etc).

Here are the key points for VA financing:• No Down Payment – *100% Loan + VA Funding Fee• No Mortgage Insurance

• No Reserves (6 months PITI is required for multi-units)• Termite Completion is REQUIRED• No Minimum Credit Score for up to a $417,000 loan limit• A 660 Credit Score is required for loans of $417,001 – $625,500• Primary Residence 1–4 units allowed• Veterans may be able to utilize VA financing more than once• A Veterans spouse may be an eligible borrower• VA Refinance Loans are available• Borrower can request their Certificate of Eligibility online at https://vip.vba.va.gov/portal/VBAH/Home

Together, let’s reach out to educate the Veteran community. Remind and encourage them to take advantage of their eligibility. We are here to help them, answer any questions and move them towards homeownership.

* Full VA entitlement is required for zero down payment* VA funding fee can vary and is typically 2.15%* Guidelines are subject to change without notice

For more information, contact Nikki at (626) 233-1144 or email her at nikki.felix@pnc.com.

PUBLIC RELATIONS COMMITTEEBy Leonore Gama, Committee Co-Chairman

In June of 2011, the Marketing Committee was officially renamed the Public Relations Committee. Our goals for this year not only encompass the promotion of the AAR and its advocacy of the members, but we are directing our efforts toward community outreach as well. Through participation in local events throughout the year, we plan on enlightening the community on the high standards and level of service and professionalism that the REALTOR® members and affiliates in our Association strive to maintain. In addition, we are looking to create relationships with the local media outlets to create more opportunities for the AAR to gain added exposure among local consumers.

Strengthening our presence in the community and nearby cities is a widespread and ongoing task to be carried out by our small committee. We invite our members who share an interest in community

outreach, growing our membership or becoming a media liaison to get involved by joining the PR Committee today. Your fresh ideas and out-of-the-box thinking would be a valued asset in helping us capture the attention of those in the local and surrounding communities. Our committee looks forward to introducing the AAR to those not yet familiar with our Association, as well as continuing to promote the professionalism and integrity that the AAR and its members represent.

The Public Relations Committee meets the first Wednesday of every month at the AAR from 9:30 a.m. to 10:30 a.m.

9

Fulfilling the dream of homeownership since 1977. First Cal is a direct nationwide lender now offering same day underwrites with our Diamond Lane Lending!

We also offer excellent pricing on a wide range of loan programs to fit your clients needs.

We are continuing to grow in your area, allowing you to offer our unparalleled service to your clients.

To learn more about First Cal and our opportunities contact me today.

Contact me today!Larry Davis

Area Sales Managerldavis@firstcal.net

888.918.3262www.firstcal.net/davis

NMLS# 168532

TOGETHER WE PROSPER, FIRST CAL DEALWORKS & Design, and FIRST CALIFORNIA MORTGAGE COMPANY are trademarks and the property of First California Mortgage Company. First California Mortgage Company is an Equal Housing Lender and is licensed through NMLS #24055 for the Arizona Dept. of Financial Institutions #0911115; California Dept. of Corporations RML #415.0042 and CFL #6054270; Colorado exemption as a 1st lien lender under Colorado Credit Code; Hawaii Division of Financial Institutions #HI-24055; Idaho Dept. of Finance #MBL-6849; Nevada Division of Mortgage Lending #3663; New Mexico Financial Institutions Division #03833; Oregon Division of Finance and Corporate Securities #ML-4894; and Washington Dept. of Financial Institutions #CL-24055.

Arcadia REALTOR® Magazine

YOUNG PROFESSIONALS NETWORK (YPN) COMMITTEESoCal YPN Mega Mixer

By Micah Adams, Committee Co-Chairman

Recently, the AAR YPN Committee partnered with 12 other local Associations and YPN networks to form the second annual SoCal YPN Mega Mixer. This event was so large it took the combined efforts of all 13 Associations to organize. The idea for the event began as a group of YPNers were chatting at a California Association of REALTORS® YPN event in Anaheim in 2010. Strangers to each other, we all discussed what Association we were a part of and gave details to some of the great events we have had in the past. At that point, a light went off in all of our heads. “Why not have a group event and include all the local chapters?” someone said. An agreement was made to have the first “Mega Mixer” in January 2011. At this event, the Committee was taken by surprise when there were almost 300 in attendance! We knew we were onto something and couldn’t wait to plan the next annual event.

This year’s event was held at the prestigious Exchange LA, formerly the Los Angeles Stock Exchange building. The roaring 1920’s theme was a huge success and it was great to see so many men dressed in their Zoot suits and ladies dressed as Flappers. It’s estimated that there were over 300 in attendance enjoying the costume contest, entertainment, networking, and amazing raffle prizes at Downtown LA’s hottest venue! If you didn’t get a chance to attend the largest mixer of its kind, then you missed the opportunity to mingle with some of the brightest people in our industry.

This year the So Cal YPN Mega Mixer was able to donate over $7,000 to the C.A.R. Education Foundation. For more information regarding the foundation visit www.car.org and click on “Education”. A special thanks goes to April Kass of LaRocca Inspections for chairing this event. She and her team dedicated countless hours to make sure this event was a hit.

If you are interested in learning more about YPN, feel free to attend our next Committee meeting on Thursday, March 8th at 12:00 p.m. at the AAR.

March 201210

Tech.Talk

“And the Winner is………”

“BizN.E.T. 2012” will be held at the World Famous Santa Anita Race Track on April 24th. REALTORS®, prepare to be inspired by our educational breakout sessions that will begin at 10:00 a.m. and go until 11:30 a.m. Visit the many nationwide exhibitors from the real estate industry who will display their products and services starting at 9:00 a.m. Get in early to drop your business card in all of the exhibitors baskets for a chance to win door prizes and the Grand Prize of an Apple iPad. Drawings will be held from 12:00 p.m. to 12:30 p.m. Come to the event to see some of the latest real estate technology.

The great buffet luncheon with key note speaker, Joel Singer, CEO of the California Association of REALTORS® will be in the FrontRunner Restaurant starting at 1:00 p.m. and ending at 2:30 p.m. All exhibitors and REALTORS® are invited to attend this luncheon for a low cost of only $20. In the past, only AAR members could attend the lunch, but

we moved the lunch to the FrontRunner to accommodate all licensed REALTORS®. Invite your REALTOR® friends! Stay for the “It’s a Wrap” Social Networking event presented by our own Young Professionals Network (YPN) Committee starting at 2:30 p.m.

Free parking at the Racetrack and free admission to REALTORS® with presentation of a copy of your real estate license or your business card. Visit the AAR BizN.E.T.2012 website at www.TheAAR.com and click on the BizN.E.T.2012 banner for more information, map, lunch menu, etc.

If you know a company or own a company yourself and would like to participate as an exhibitor this year, we would love to have you join us. Please feel free to call Joe Pacilio, Co-Chairman at (626) 589-8945 or Irene Yamagata-Bermudez, Co-Chairman at (626) 705-8007 for more information. You can also contact Brenda at the AAR for additional information. Looking forward to seeing everyone on April 24th!

By Joe Pacilio and Irene Yamagata, Tech Committee Co-Chairmen

5 Things You Need to Know About Facebook’s IPO - A Wake Up Call for REALTORS®

Unless you’ve been living under a rock, you may have missed that as of last month, Facebook filed it’s prospectus for an Initial Public Offering (IPO), seeking $5 billion in funding. To me, this is fascinating on many levels, here are five I want to share with you today:

1. The Facts and FiguresWe finally have insight into just how much Facebook is worth and how much people are to gain once Facebook goes public. Where does Facebook make money? In 2011, 85% came from advertising. Zynga, the social gaming company accounted for 12% of annual revenues in 2011.There are 845 million users per month (nearly one sixth of the WORLD is visiting Facebook), 2.7 billion likes and comments/day, 250 million photos are uploaded everyday and 100 billion friendships are started.

2. Mobile is Facebook’s Next Opportunity425 million people visited Facebook on a mobile device in the month of December 2011 – yet no ads appear on the mobile Facebook app. SoHALF of Facebook’s audience is not seeing their number one revenue source!

By Katie Lance, Inman Next

(continued on page 12)

KEYNOTE SPEAKER: Joel Singer, Executive Vice President of the California Association of REALTORS®

C.A.R. Executive Vice President Joel Singer has held the Association’s top staff position since November 1989 after serving as C.A.R.’s Chief Economist and heading the Association’s public affairs department. Singer was instrumental in developing Real Estate Business Services Inc. (REBS), C.A.R.’s for-profit subsidiary, and serves as its president. He is also President and Chief Executive Officer of zipLogix. Singer joined C.A.R. in 1978.

11

“Is the ‘No Point, No Fee’ Loan Really a Bargain?”By Scott Shimamoto, Franklin Loan Center

As you can imagine, I talk to many people who either want to buy a house or refinance their existing loan. A lot of people will ask me for the “No Point, No Fee” loan that they heard about on television. I guess the companies that have slick advertising departments are doing a really great job of making the public think that the “No Point, No Fee” loan is a GREAT thing. Many consumers think it is a free loan.

So when somebody asks me “What is better? A ‘No Point’ loan or a loan that charges points and fees?” My answer is ALWAYS an unequivocal, YES!

HUH??

That’s right, YES!

After the pregnant pause, I tell them that it depends on what they are trying to accomplish from this loan transaction. More about that later. This reminds me of one of my favorite pet peeves. When people are asked if they see the glass half empty or half full, they will invariably answer half full. This is because the rest of society has been conditioned to say half full is the better way to look at things. Half full supposedly means you’re optimistic or positive. I call the bluff on that one because you really don’t have enough information regarding the situation to make that determination. What if the glass was at 50% of capacity but it was filled with some nasty tasting liquid that you were forced to finish drinking or dire consequences would apply? Then you would be correct in saying that it is half EMPTY!

The point is that, as with any business transaction, more information is needed in order to determine how it should be structured and whether it is a good deal for the parties involved. In order to uncover the best option, a professional mortgage loan officer will ask a few more questions such as:

• How long do you plan to own the house?• Do you have sufficient funds to be able to pay for

closing costs?• Would you rather preserve your capital and take

advantage of the current low interest rates, and is it worth it to “buy down” the rate even further?

• Do you understand how the no points option will increase your interest rate and monthly payment and potentially cost you more money in the long run?

Asking these types of questions uncovers the needs and wants

of the person borrowing the money. Without asking these types of questions, it is impossible to make a truly good financial recommendation.

For a little perspective, let’s cover a few truths in the loan business. There is no such thing as a “free lunch”. That is lesson one, part A, of business 101. Somebody is paying for anything that is called “free”. And one way or another, the borrower will typically pay for it. Like the old Fram Oil filter commercial so wisely stated, “You can pay me now, or you can pay me later”.

There are certain items in a mortgage transaction that are required in order for the transaction to be completed. These include: title insurance, escrow services, appraisal services, county filing fees, processing fees, and a fair profit to the lender originating the loan. Some consumers who watch a little too much television are under the false impression that certain loan companies are exempt from having these required elements as part of their transactions. Nothing could be further from the truth. These costs of doing business are simply required by the rules of the mortgage investors and the laws that regulate the industry. Do these consumers think that these companies spend millions of dollars so that they can work on a complex financial transaction that is filled with multiple time deadlines and tedious paperwork for free? The companies will do and say anything to make their phones ring.

The reason that the various loan functions are in place is to protect the borrower, lender, and public at large. I’ll leave the real estate professionals in the various elements to explain their various functions, but millions of loans have been done over the years, and if these items were not important, they would have been eliminated a long time ago.

Finally, all loan companies and loan officers are in business to make a profit. This is what we do for a job. Unless you are independently wealthy everybody is working to make money. The better job the loan company does, the less they need to give away their services. There is NOTHING wrong with that. The only business that is not in it to make a profit is the local, state, and federal government. Honestly, how many of you would want a government worker to handle your best client’s loan transaction? I didn’t think so!

In summary, there are no free lunches. If they ask you if the glass is half empty or half full, don’t be so quick to say half full. Finally, make sure you work with a loan officer who will uncover your clients’ needs so that they can make the right recommendation based their needs, wants, and best interests! Good luck out there everyone!

For more information, contact Scott Shimamoto at (626) 399-1525 or email him at ScottS@FranklinLC.com.

Affiliate Corner

Arcadia REALTOR® Magazine

Log onto: www.designescrowcorp.com

We have Spanish, Cantonese, Indonesian, Vietnamese and Mandarin speaking employees to assist you and your clients.

128 East Huntington DriveArcadia, CA 91006

626.445.6137

We are members of the:

arcadia association of realtors

California escrow association

escrow associates ofsan Gabriel Valley

american escrow association

National Notary association

Pasadena - foothill association of realtors

Specialize in:Bulks,

Short SalesCommercialShortpays

REO’sExchangesResidential

andLoans

esign Escrow is beginning our 20th year of doing business! Our staff of 6 escrow officers, a full time messenger and a supporting staff of 6, are

committed to the successful timely completion of your transaction.

“It’s our people that make the difference.”

Our team is expert in all aspects of conveyance including: Residentialand Commercial Real Estate Sales, Exchanges, Loans & Refinances,Business Opportunities & Probate Sales, Short Sales and R.E.O.’s .

D

We offer Five Languages &Full time In House Messenger

standing (left to right): Yolanda Vidales, Julie Nguyen, Kai Wu, Jackie Ramos, Liem Ho, Janet Cerswell, Suzie Archuleta, Luly Goodman, Jojo Ongsitting (left to right): Terri Fabbri, Alexis Ostensen, Kay Gass, Shelley Malicek

Design Escrow, Inc.

Standing (left to right): Yolanda Vidales, Julie Nguyen, Kai Wu, Jackie Ramos, Liem Ho, Janet Cerswell, Suzie Archuleta, Luly Goodmand and Jojo OngSitting (left to right): Terri Fabbri, Alexis Ostensen, Kay Gass and Shelly Malicek

128 East Huntington DriveArcadia, CA 91006

626.445.6137

20 Years of Doing Business and Providing Great Service!

We are members of the: • Arcadia Association of REALTORS® • California Escrow Association • Escrow Associates of San Gabriel Valley

• Amercan Escrow Association • National Notary Association • Pasadena - Foothill Association of REALTORS®

March 2012

At a recent MLS Caravan meeting, AAR 2012 President, Ryan Asao was presented with a Sterling “R” plaque. REALTORS® who received a Sterling “R” recognition have donated at least $1,000 to the National Association of REALTORS® Political Action Committee funds during a given year. Congratulations Ryan on this achievement!

(Photo) AAR Executive Vice-President, Andrew Cooper (R) presents AAR 2012 President, Ryan Asao with his Sterling “R” plaque.

Ryan Asao Receives Sterling “R”

12

5 Things You Need to Know About Facebook’s IPO - A Wake Up Call for REALTORS®(continued from page 10)

3. Sponsored Posts in Your Newsfeed?The S-1 states that the increasing growth of mobile remains a risk for the company until it can successfully monetize the platform, which could include inserting “sponsored posts” into users’ news feeds on mobile devices. Will this be like Twitter’s sponsored tweets? I have a feeling Facebook could face mutiny from many users if this is laid out.

4. Boy, I’d Like to Be a REALTOR® in Silicon Valley Right NowVery soon there will be 3,000 new millionaires in the Silicon Valley. Mark Zuckerberg is only 27 years old and will probably be the youngest billionaire ever. I live close enough to that area to know how huge that really is. The money and influence Facebook has already had and will continue to have on the market in the Bay Area is monumental. I hope agents in those areas are ready for the influx of money and power that is about to come their way. I hope for any Bay Area agents reading this, they are ready to roll up their sleeves and get ready to work for a huge opportunity – work those contacts, rock out their social media plan, and network like never before. There is a lot of money to be made very soon – and it’s not just from the 3,000 employees.

5. The Evolution of FacebookOne of the things that continues to impress me is how Facebook continues to evolve and improve. They aren’t afraid to DISRUPT their business model. In a letter from Mark Zuckerberg last month, he says “At Facebook, we’re inspired by technologies that have revolutionized how people spread and consume information. We often talk about inventions like the printing press and the television — by simply making communication more efficient, they led a complete transformation of many important parts of society. They gave more people a voice. They encouraged progress. They changed the way society was organized. They brought us closer together. We live at a moment when the majority of people in the world have access to the internet or mobile phones — the raw tools necessary to start sharing what they’re thinking, feeling and doing with whomever they want. Facebook aspires to build the services that give people the power to share and help them once again transform many of our core institutions and industries.”

ConclusionMy, how times have changed. How have you changed in the last eight years? No, we can’t all be millionaires from Facebook – but we sure can capitalize on one of the (if not, the biggest) opportunities we have ever had to change our business. If you are still someone who doubts the power of Facebook for your business, it’s time to pull your head out of the sand. It’s time to do something disruptive. It’s time to stop pretending Twitter and Facebook and Google+ and “social networking” are a fad. What’s ironic, is here in the tech-savvy Bay Area, how many agents I know that still are doing it the “same old, same old” – they are the ones I still hear complaining about how tough it is now, or musing that “they guess they should get on Facebook.”

Stop waiting and get on the train of innovation. We are living in a time where ANY information you need is literally at your fingertips. Don’t know how to maximize Facebook for your business? Go to industry-related events and learn from the very best on what to do. I realize this may sound a bit harsh – but it is time to jump aboard. Do not be left behind. It is no longer an option to NOT be on sites like Facebook and Twitter and to have a strategy to propel you into the next eight years…. and beyond! Content in this article has been edited due to space constraints.

13Arcadia REALTOR® Magazine

COMMERCIAL COMMITTEE“Financing Commercial Investment

Property From a Lender’s Perspective”

AIR Forecast Dinner & Market OutlookBy Roy Blume, Commercial Committee Vice-Chairman

The 19th Annual American Industrial Real Estate Association (AIR) Market Review and Forecast Dinner was held on January 25th at the Jonathan Club in downtown Los Angeles. In attendance were several members of the Commercial/Investment Committee as well as Executive Vice-President, Andrew Cooper and 2011 AAR President, Paulina Lee. Prior to the dinner there was a networking mixer. This was a great opportunity to meet commercial brokers and lenders from all over the southland area. Nine leading figures in the commercial real estate industry chronicled the events of 2011 and gave their forecast for the year 2012. The evening was informative and our very own members David Hyun and Fred Madjar were winners of $250 gift cards for the evenings raffle give away.

The forecast was divided into 9 sub-markets in the Los Angeles area reaching all the way east to the San Bernardino County area including the desert. Each presenter gave a very informative presentation highlighting the highs and lows of commercial real estate in the area. I would like to focus my summary on our area that we serve in the San Gabriel Valley but if you have a chance, please visit the AIR website at www.airea.com and search for market review. Each presenter has their PDF slides available for review. Here is a brief summary of the forecast for the East Region San Gabriel Valley as presented by Rustin Mork, Senior Associate at Binswanger/Realty Advisory Group Los Angeles.

1. Demand to remain strong, but pricing to remain flat on average across all sectors.2. Vacancy to decrease slightly on class A-B product due to lack of inventory, but availability of class B-C to remain plentiful.3. Visible increases in new construction of business parks & build to suits.4. Foreign investments to remain very strong and likely increase. Should drive up user sale pricing in all size ranges.5. Office users likely to reverse trend of increasing vacancy, with renewals and expansions.6. Continues slow recovery-don’t expect major pop in value…

There are many factors that affect our local commercial market. Employment, interest rates, inflation and ease of financing are some of the factors that affect our local market and economy. Most of the nine sub-market reports showed signs of promise in one aspect or another in their area. Some areas showed slow recovery. If you would like to know and learn more about your local commercial market then please come to the Commercial/Investment Committee free mixer and education meeting. The meetings are held on the first Thursday of every month at the AAR office at 11:00 a.m. Guest speakers cover topics that will help you with your business followed by a mixer where you can meet other agents inthe area. If you have a commercial property to pitch, bring your flyers. There is a wants and needs session so you can see what all the agents are looking for. Lunch or refreshments are always served. See you there!

Attendees of the forecast dinner are (Standing L to R): Paulina Lee, Joy De La Cruz, AIR; David Hyun, Andrew Cooper, AAR Executive Vice President; Fred Madjar and Willie Kuo. (Seated L to R): Roy Blume, Julie Arballo and Philip Hsu.

The AAR Commercial/Investment Committee recently held its monthly Commercial Marketing Mixer at the AAR building. This month featured an informative session on “Financing Commercial Investment Property From a Lender’s Perspective” with Julie Arballo, Wells Fargo. In addition to offering tons of great important information, refreshments were also provided by Julie for those who attended. If you are interested in Commercial real estate and would like to attend our free monthly marketing mixers, they are held at the AAR office on the first Thursday of every month at 11:00 a.m.

Members of the Commercial/Investment Committee with the speaker and sponsor are (L to R): Suzie Koo, Paulina Lee, Careayre Rambeau, Julie Arballo, David Hyun, Fred Madjar, Yixiong Gu, Mary Kay, Nick Zigic, Tim Johnson, Chau Lam, Roy Blume and Teresa Shaver.

www.DownstreamExchange.com

909 East Green Street, Pasadena CA 91106-2930

Phone: (800) 743-1031Fax: (626) 796-8222

C. Anthony Phillips, CPA President

We Provide A Complete Service To Successfully Accomplish Tax Deferred Exchanges

®

Pre-Exchange Tax Planning

Accommodation of Tax Deferred Exchange

Post Exchange Tax Planning

Call for your free Exchange Tax Analysis

Arcadia Association of REALTORS®601 South First AvenueArcadia, California 91006

14

• Estate Planning• Trust Administration• Probate• Business Law• Commercial Transactions• Corporation, LLC & Partnership Formations• Business Contracts

Romy S. Rahmanian, Attorney

(626) 869-878737 E. Huntington Drive, Suite A • Arcadia, CA 91006

Call today for a free consultation

(626) 869-8787(626) 869-8787

romy@rahmanianlaw.com • www.RahmanianLaw.com

Dedicated to Providing High Quality Legal Services

(626) 869-8787

Call today for a free consultation

St. Patrick’s Day at the RacesFriday, March 16, 2011

FrontRunner RestaurantCharity Event

FrontRunner open 11:30 a.m.$35 per ticket (includes Clubhouse Admission,

Parking Pass, Lunch & Fountain Beverage)All proceeds go to local charities.Contact Micah

Adams at (626) 415-8332 or the AAR at(626) 446-2115 for more information.