CR Magazine – Autumn 2018
The official publication of the Chicago Association of REALTORS®.
The official publication of the Chicago Association of REALTORS®.
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<strong>CR</strong><br />
Chicago REALTOR ®<br />
<strong>Magazine</strong><br />
How to Leverage Instagram’s<br />
New Video Vertical: IGTV<br />
V o l u m e 2 7 | <strong>Autumn</strong> 2 0 1 8<br />
EXPLORING<br />
South Shore, Woodlawn<br />
and Jackson Park<br />
HOW TO GET<br />
YOUR CLIENT TO<br />
YES<br />
The Official Publication of the Chicago Association of REALTORS ®<br />
www.ChicagoREALTOR.com 3
Cover image courtesy The Obama Foundation.<br />
16.<br />
Structuring<br />
Your Business<br />
Summer <strong>2018</strong><br />
ChicagoREALTOR®<br />
MAGAZINE<br />
IN THIS ISSUE<br />
4 President’s Perspective<br />
5 Casino Royale<br />
6 From the CEO<br />
8 Editor’s Note<br />
9 Digital Extras<br />
40 Photo Album<br />
48 Foundation Scholarships<br />
49 RRES Lineup<br />
50 The Buzz<br />
HOW<br />
TO GET<br />
YOUR<br />
CLIENT<br />
TO<br />
X<br />
YES<br />
10.<br />
FEATURES<br />
46. 22.<br />
10 How to Get Your Client to Yes<br />
12 How to Leverage Instagram’s New Video Vertical: IGTV<br />
14 Thriving in Place: What Your Senior Clients Should Know<br />
16 Structuring Your Business<br />
18 Good Neighbor Awards Finalist Michael LaFargue<br />
20 How to Stand Out as a Property Manager<br />
22 Your Brokerage’s Greatest Risk for Cyber Crime: You<br />
24 Set Realistic Goals and Expectations for Your Business<br />
28 Exploring South Shore, Woodlawn and Jackson Park<br />
32 2019 Design Trends Forecast<br />
33 Top Producer Market Trends & Observations<br />
UPDATES<br />
34 Industry Partners<br />
36 Doing Business with Ireland<br />
38 Government Affairs Update<br />
48 CAR Foundation - Scholarship Update<br />
www.ChicagoREALTOR.com 3
PRESIDENT’S PERSPECTIVE<br />
With fall upon us, the remaining weeks of <strong>2018</strong><br />
will be fleeting. <strong>Autumn</strong> ushers in the start of a<br />
new association year and marks the end of my<br />
time as your president. This past year has been<br />
one of great change, as well as immense opportunity — both at our<br />
association and throughout our industry.<br />
A few weeks ago, I had the privilege of moderating a panel of industry<br />
disruptors. These companies challenge the status quo and are often<br />
villainized for doing so. There is an innate knee-jerk reaction to discount<br />
disruptors, disregard their work as irrelevant and double-down doubting<br />
their ability to change us or our industry.<br />
In doing so, we miss the point: the industry is evolving. We’ve seen<br />
unmatched investment pouring into real estate technology. These so-called<br />
disruptors see opportunity in addressing and alleviating the pain points in<br />
a real estate transaction, with an emphasis on simplifying the process for<br />
buyers and sellers. There is something we can all learn from this.<br />
Invite Questioning. When we forget to question what we know, we<br />
miss the point. Speak to current and past clients to better understand<br />
their pain points. Adopt your business model to anticipate those needs<br />
and provide a higher level of service. Ask more questions in your business,<br />
with your clients and your vendors. Ask, “why?” If the answer is ever,<br />
“because that’s how we’ve always done it,” you’ve found opportunity.<br />
Explore. When we don’t stop to explore the unfamiliar, we miss out on opportunity. Read industry news — Inman Select<br />
subscriptions are included with your Illinois REALTORS ® membership. Attend conferences and events: YPN breakfasts,<br />
Member Outreach, national conferences and industry partner events. Look outside our industry to monitor trends. Best<br />
case: you’ll learn something life changing. Worst case: you’ll be a great conversationalist over cocktails.<br />
Embrace Change. Understand that the world is changing; it is easy to get left behind. Be an early adopter. Look for<br />
systems that automate what you do so you can focus on relationship-building and high-level client service. Change is never<br />
easy, but the journey is just as important as the destination.<br />
It is time to look to the future. Our CEO, Michelle Mills Clement, is a force of nature. I am in awe of her talent, tenacity and<br />
vision. She, incoming president Tommy Choi and our board of directors are committed to further evolving our association to<br />
better serve the needs of all members.<br />
Our relationships with our clients remain paramount, and our ability to leverage technology to provide a higher level of<br />
service will be what defines us in the years to come. Question, explore and embrace change. In the words of the illustrious<br />
University of Chicago professor Linda Ginzel, we all should strive to be “wiser, younger.”<br />
I am grateful and honored to have served our association for this past year. Thank you for helping me to become “wiser, younger.”<br />
Best,<br />
REBECCA THOMSON<br />
2017-<strong>2018</strong> President<br />
Chicago Association of REALTORS ®<br />
4 Chicago REALTOR ® <strong>Magazine</strong>
SPONSORED BY:<br />
THE<br />
BLACK-TIE<br />
RPAC EVENT<br />
Casino<br />
Royale<br />
WWW.CHICAGOREALTOR.COM/CASINO<br />
THURSDAY • 6 -10PM<br />
NOVEMBER 15<br />
VENUE SIX10<br />
610 S. MICHIGAN AVE, CHICAGO<br />
VIP PACKAGES: $ 1,000 <strong>–</strong> $ 10,000<br />
GENERAL ADMISSION: $ 165<br />
LIMITED TICKETS AVAILABLE.<br />
Contributions are not deductible as charitable contributions for federal income tax purposes. The Illinois REALTORS ® Political Action Committee (RPAC) collects contributions from members of the National Association of REALTORS ® (NAR) for political<br />
activities. A portion of each contribution will be used for state political activities; at least 30% will be used for federal campaign purposes. The federal portion will be charged against an individual’s federal contribution limits under 2 USC 441a. Contributions<br />
are VOLUNTARY and refusal to contribute does not affect membership rights. A member may contribute more or less than the suggested amount. A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s official<br />
website www.elections.il.gov or for purchase from the State Board of Elections, Springfield, Illinois.
FROM THE CEO<br />
CAR leadership was everywhere — leading<br />
panels, presenting sessions and more — at<br />
NAR’s Leadership Summit in Chicago this August.<br />
Leadership Summit is a time for REALTOR ®<br />
Association Executives and incoming board presidents to come<br />
together and prepare for the year ahead. Our own incoming<br />
president, Tommy Choi, led a session with Maren Brisson-<br />
Keuster from North Carolina REALTORS ® titled “Your Role as<br />
Chief Storyteller,” where attendees from across the country were<br />
encouraged to “tell their story” and learned tactics to become a<br />
Chief Storyteller.<br />
Through their session, one thing was emphasized: authenticity<br />
— the importance of being yourself and being relatable. I think<br />
that’s an important lesson for all of us in the industry. Real estate<br />
is so personal and so important. You’re helping people make lifelong<br />
decisions and bringing your authentic self to the transaction<br />
makes it personal.<br />
I was, of course, proud to see Tommy on stage, and bragged to<br />
some fellow AE’s that my association president wasn’t with me<br />
because he was presenting! But it wasn’t only pride that I walked<br />
away with — it was a drive to ensure I told my story, and a calling<br />
to share why this industry is important to me.<br />
I didn’t grow up in a home we owned — homeownership came<br />
much later in life for some of my family. I purchased my first home<br />
when I turned 30, and it was a proud moment. It was important,<br />
too, because it helped set me on the path to CAR.<br />
Real estate is an integral part of our lives — something as simple<br />
as having a place to live and a home to call your own is key to<br />
the American dream. I want all of you, our members, to have a<br />
place here at CAR and feel welcomed to tell your stories which are<br />
integral to being successful in your careers.<br />
MICHELLE MILLS CLEMENT, cae<br />
Chief Executive Officer<br />
Chicago Association of REALTORS ®<br />
6 Chicago REALTOR ® <strong>Magazine</strong>
NAR Deadline: December 31, <strong>2018</strong><br />
All REALTOR ® members are required to complete 2.5 hours of Code of Ethics<br />
training per two-year cycle. We are currently in the Fourth Training Cycle,<br />
January 1, 2017 to December 31, <strong>2018</strong>.<br />
Failure to comply with this required ethics training is a violation of a membership<br />
duty, for which the member’s primary association will suspend membership until<br />
the training is complete. The only REALTORS ® exempt from this requirement are<br />
REALTORS ® with REALTOR ® Emeritus status. Appraisers or Attorneys must meet this<br />
membership requirement and are not exempt.<br />
DOWNLOAD<br />
Read and Sign<br />
the Designated<br />
REALTOR ® Affidavit<br />
IN-PERSON<br />
Attend a<br />
Complimentary<br />
Member Ethics Course<br />
ONLINE<br />
NAR’s REALTOR ®<br />
Code of Ethics<br />
Training<br />
VIDEO<br />
Watch a taping<br />
Member Ethics<br />
Course<br />
Learn more about the biennial ethics requirements, check<br />
to see if you are in compliance, and sign up for a class:<br />
www.ChicagoREALTOR.com/Ethics<br />
Watch a Member<br />
Ethics course to fulfill<br />
the requirement.<br />
NOTE: This is a National Association of REALTORS ® mandate; NOT a requirement of the Illinois Department of Financial and<br />
Professional Regulation or its Continuing Education course requirements. However, if you take an Ethics CE course, you will<br />
meet part of your CE requirement as well as the NAR ® membership mandate.<br />
www.ChicagoREALTOR.com 7
EDITOR’S PICKS<br />
Community<br />
I was reviewing my sprawling two-yearlong<br />
planner with my color-coded pens,<br />
and I couldn’t help smiling. I can’t believe<br />
we’re wrapping up our year of fabulous<br />
events.<br />
We hosted our first-ever White Sox<br />
Game RPAC Fundraiser (page 42), and it<br />
was great to see so many families join us<br />
while investing in our industry. Followed<br />
up by my favorite days of the year where our community gave back — first at the Boys<br />
& Girls Club Carnival and then with a YPN volunteer day at the Union League Boys<br />
& Girls Clubs of Chicago. It’s always rewarding to see our members interacting with<br />
Chicago’s youth (page 40-41).<br />
Casino Royale<br />
Our Casino Royale work group is hard at work<br />
planning our 7 th Annual Casino Royale RPAC<br />
fundraiser. This is without a doubt the most fun<br />
way to make your RPAC investment. We’re thrilled<br />
to welcome back our high roller VIP guests while<br />
also opening the doors for a new generation of<br />
investors. Turn to page 5 for event details.<br />
THE BLACK-TIE<br />
Goals & P lanning<br />
RPAC EVENT<br />
Casino<br />
Royale<br />
You may think of goal planning as a project for January, but<br />
why not spend some time this fall getting your 2019 goals<br />
set? Set milestones so you can hit the ground running! On<br />
page 24, Mike McElroy walks us through how to create<br />
SMART goals you can stick with.<br />
As always, we’d love to hear from<br />
you! Thank you for adding meaning<br />
to CAR membership.<br />
Jessica Kern<br />
Vice President, Communications<br />
jkern@chicagorealtor.com<br />
8 Chicago REALTOR ® <strong>Magazine</strong>
Chicago REALTOR ®<br />
<strong>CR</strong> <strong>Magazine</strong><br />
2017-<strong>2018</strong> BOARD OF DIRECTORS<br />
PRESIDENT<br />
Rebecca Thomson<br />
PRESIDENT-ELECT<br />
Tommy Choi<br />
TREASURER<br />
Maurice L. Hampton<br />
IMMEDIATE PAST PRESIDENT<br />
Matt Silver<br />
DIRECTORS<br />
Gaspar Flores, Jr.<br />
Antje Gehrken<br />
Heather Gustafson<br />
Drussy Hernandez<br />
Kris Keller, ccim<br />
Nick Libert<br />
Dave Naso<br />
Christopher Pezza<br />
Nykea Pippion McGriff<br />
Hugh Rider<br />
Andy Shiparski<br />
Vicky Silvano<br />
Kevin Van Eck<br />
Marty Walsh<br />
Sarah Ware<br />
CHIEF EXECUTIVE OFFICER<br />
Michelle Mills Clement, cae<br />
The Chicago REALTOR ® <strong>Magazine</strong> is published<br />
quarterly by the Chicago Association of REALTORS ®<br />
for its members. Advertising is purchased and<br />
does not necessarily represent the position of the<br />
Chicago Association of REALTORS ® .<br />
EDITOR-IN-CHIEF<br />
Michelle Mills Clement, cae<br />
michelle@chicagorealtor.com<br />
EDITOR<br />
Jessica Kern<br />
jkern@chicagorealtor.com<br />
MANAGING EDITOR<br />
Maria Dickman<br />
mdickman@chicagorealtor.com<br />
ART DIRECTOR<br />
Jim August<br />
jaugust@chicagorealtor.com<br />
For advertising information please contact<br />
Mary Beth Durkin<br />
at (312) 214-5530 or ads@chicagorealtor.com<br />
C.A.R. LOCATIONS<br />
C.A.R. Central: 430 N. Michigan Ave., Ste. 800<br />
Chicago, IL 60611<br />
Ph: (312) 803-4900<br />
Fax: (312) 803-4905<br />
C.A.R. West Towns: 6017 W. 26 th Street<br />
Cicero, IL 60804<br />
Ph: (312) 803-4900<br />
www.ChicagoREALTOR.com<br />
NOTICE TO MEMBERS<br />
Under long established policy of this Association, the Illinois Association<br />
of REALTORS ® and the National Association of REALTORS ® :<br />
1. The broker’s compensation for services rendered in respect to any<br />
listing is solely a matter of negotiation between the broker and his or<br />
her client, and is not fixed, controlled, recommended or maintained by<br />
any persons not party to the listing agreement.<br />
2. The compensation paid by the listing broker to a cooperating<br />
broker in respect to any listing is established by the listing broker and<br />
is not fixed, controlled, recommended or maintained by any persons<br />
other than the listing broker.<br />
Videos<br />
Videos<br />
What’s Online @<br />
Photo<br />
Photo<br />
Videos<br />
Videos<br />
Galleries<br />
Galleries<br />
Photo<br />
Galleries<br />
Photo<br />
Videos<br />
Videos<br />
Galleries<br />
• Watch videos designed to help you stay safe on the job.<br />
Videos<br />
Resources<br />
Resources<br />
Videos<br />
• Access a variety of safety resources and tools.<br />
• Learn more about Good Neighbor Finalist Michael LaFargue.<br />
Resources<br />
Photo<br />
Photo<br />
Galleries<br />
Galleries<br />
Resources<br />
• Share our Design Trends infographic with your clients.<br />
• Add your building to our Pet-Friendly Landlord Registry.<br />
• Register for autumn classes and amp up your skills.<br />
• Listen to recordings from this year’s YPN breakfasts.<br />
• Mark your calendars and register for upcoming events.<br />
Photo Galleries<br />
Links<br />
Links<br />
Photo Galleries<br />
• <strong>2018</strong> Boys & Girls Club Carnival<br />
• YPN Boys & Girls Club Volunteer Day<br />
• <strong>2018</strong> RPAC White Sox Outing<br />
• 111 th Annual Golf Classic<br />
• <strong>2018</strong> YPN Summer Mixer<br />
Links<br />
• Social media content, curated and ready for you!<br />
Resources<br />
Digital Resources<br />
Extras<br />
Resources<br />
Links<br />
Links<br />
Resources<br />
ChicagoREALTOR.com<br />
Look for the icon throughout the magazine for<br />
content with digital bonuses!<br />
Links<br />
Links<br />
Links<br />
www.ChicagoREALTOR.com 9
How<br />
To Get<br />
Your<br />
Client<br />
To<br />
HOW<br />
TO GET<br />
YOUR<br />
CLIENT<br />
TO<br />
YES<br />
X<br />
YES<br />
Buying a home is one of largest and most<br />
important purchases someone can make. So,<br />
it makes sense that your potential homebuyer<br />
clients — especially less experienced ones —<br />
may feel some jitters before close.<br />
One of the most important ways to show value<br />
to your clients as a REALTOR ® is to ease their<br />
worries by serving as their partner and guide<br />
throughout the transaction. There are many tools<br />
you can use to help your clients feel secure and<br />
close the deal. Let’s go through some of the most<br />
common fears, and how best to overcome them.<br />
SET THE TONE IN YOUR<br />
FIRST MEETING<br />
When it comes to overcoming fear, the best<br />
defense is a good offense. Meeting with a<br />
REALTOR ® proves at some level that your<br />
potential client is serious enough to push back<br />
against some apprehension in entering the<br />
market. In fact, NAR research shows homebuyers<br />
spend around three weeks on average looking<br />
at properties online before contacting an agent.<br />
But that doesn’t mean your clients are coming<br />
into the first meeting worry-free. Regardless<br />
of whether you’ll be working with a first-time<br />
homebuyer or an experienced client, your first<br />
meeting can set the tone for the rest of your<br />
working relationship. Keep in mind these three<br />
things for a successful foundation:<br />
• Communication: Find out what makes<br />
your clients comfortable. Setting clear<br />
boundaries for when it’s appropriate to<br />
contact your clients and their preference for<br />
texts, calls or emails shows you’re attentive<br />
to their needs. If you’re working with a<br />
couple, make sure to set a point of contact<br />
to make sure everyone has a clear path to<br />
communicate. You don’t want to potentially<br />
get in the middle of their decision making or<br />
accidentally pit one partner against the other<br />
by meeting with both at separate times.<br />
• Collaboration: Let your clients know you’re<br />
working together as a team to find their<br />
dream home, which means you can’t take<br />
a one-size-fits-all approach for success. Set<br />
the expectation that while they may sometimes<br />
defer to your judgement, it doesn’t<br />
mean they’ll be cut out of the conversation.<br />
Explain that serving as their advocate<br />
requires trust, but they will always be the<br />
one making the final decisions.<br />
• Education: Don’t assume your clients know<br />
anything about the homebuying process.<br />
10 Chicago REALTOR ® <strong>Magazine</strong>
This is your chance to walk them through step-by-step and<br />
identify any potential problem areas. Be prepared to answer<br />
every question they may have before your meeting. But don’t<br />
risk making a bad impression by overexplaining something<br />
they’re savvier about. Ask how in-depth into the process they’re<br />
interested in getting before you begin and adjust accordingly.<br />
THE BUDGET<br />
Disagreements about budgeting are a major reason couples fight<br />
during the homebuying process. Don’t let a disagreement get in the<br />
way of submitting an offer or completing a deal. Instead, defuse this<br />
tension between your clients by agreeing to a budget upfront.<br />
You can ease some fears by managing their expectations. When<br />
you’re discussing a budget to target, make sure your client<br />
understands the difference between what they’re qualified<br />
to buy and what they’re comfortable to buy. Especially when<br />
working with first-time buyers, make sure they understand that<br />
just because they qualify for a $ 600,000 mortgage, other factors<br />
should be considered.<br />
Of course, a mortgage is only part of the story. Be sure to walk<br />
your clients through the other costs involved, including closing<br />
costs, utility expenses and property taxes. In Cook County,<br />
properties are assessed every three years. Build trust with your<br />
clients by making sure they understand the assessment process,<br />
so they won’t get sticker shock. As an expert in the market, you<br />
should know exactly how far your client’s dollar can stretch. A<br />
great place to start is to gauge what your clients are looking for.<br />
Obtain a list of amenities and features they can’t live without.<br />
In a competitive market with homes receiving multiple offers,<br />
your clients should be ready to act quickly on a home they are<br />
interested in. You can reduce some potential uneasiness of a<br />
rejected offer by preparing your clients to submit their best at<br />
the onset, to be well-positioned in a potential bidding war.<br />
<strong>CR</strong>OSS YOUR ‘T’S & DOT YOUR ‘I’S<br />
Remember to put yourself in your client’s shoes. Buying a home<br />
is a big commitment, and it’s unrealistic to eliminate all fear. Don’t<br />
focus on that. Instead, reassure them that you have everything<br />
under control. As the buying process transitions to the close,<br />
check in again. Projecting confidence, knowing the answers to<br />
questions big and small, and having all the paperwork in order will<br />
keep the real estate transaction on stable footing — even when<br />
your client is having cold feet.<br />
Common Myths of First-Time Buyers<br />
Fear is one of the biggest barriers that<br />
can prevent first-time homebuyers<br />
from entering into the market. That<br />
fear can work to delay future financial<br />
security, especially in the millennial<br />
generation. Here are some ways to<br />
combat common misconceptions<br />
about the market you can use to<br />
convert renters into buyers:<br />
$<br />
I Can’t Make A<br />
Down Payment:<br />
Illinois is one of a few states<br />
that offers down payment assistance<br />
for qualified first-time buyers through<br />
the Illinois Housing Development<br />
Authority. If qualified, your client can<br />
contribute as little as $ 1,000 to get into<br />
their first home. Some are forgivable<br />
loans, meaning your buyer would<br />
not be required to repay them if they<br />
live in the home for a certain amount<br />
of time. Since conditions and the<br />
products vary, encourage your client<br />
to stay up to date and make their own<br />
determination if the program is right for<br />
them. You can find other resources on<br />
ChicagoREALTOR.com.<br />
FICO<br />
A Mortgage FICOWill<br />
FICO<br />
Hurt # My Credit<br />
FICO<br />
A common misconception<br />
is that a mortgage doesn’t provide<br />
financial advantages. A mortgage is<br />
considered “good” debt, which can<br />
boost your credit score and provides<br />
a way to build payment history. It<br />
can also lower your client’s tax bill.<br />
The recently-passed tax reform law,<br />
which comes into play next year,<br />
changed a lot of the rules, but in<br />
most cases, one of the most common<br />
deductions on mortgage interest<br />
still applies. Taxpayers can deduct<br />
interest on $ 750,000 on qualified<br />
residential loans, providing some<br />
relief for many of your clients. Advise<br />
your clients to talk to a financial<br />
#<br />
advisor regarding the financial and<br />
tax benefits of homeownership.<br />
$<br />
I Should Wait For<br />
Interest Rates to Fall<br />
One reason your client<br />
$<br />
may pay the price for<br />
waiting: it’s in their best “interest”<br />
to act early. The average mortgage<br />
interest rate is under 5 percent so far<br />
in <strong>2018</strong>, still a historic low. In the mid-<br />
‘80s, the average rate was about 10<br />
percent. Current rates are lower than<br />
they were before the Global Financial<br />
Crisis of 2008, but are starting to tick<br />
up as the world’s economy recovers.<br />
It may be another thirty years before<br />
rates are this low again, so now’s the<br />
time to lock in these rates.<br />
www.ChicagoREALTOR.com<br />
11
HOW TO<br />
LEVERAGE<br />
INSTAGRAM’S<br />
NEW VIDEO<br />
VERTICAL: IGTV<br />
In late June, Instagram reached their 1 billion active monthly user<br />
milestone. They also launched a new app: IGTV, a new way to<br />
watch long-form, vertical video from Instagram users and creators.<br />
Instagram’s no stranger to app redesigns and increased<br />
functionality — most notably, with the addition of the popular<br />
Stories feature that’s bringing users back from Snapchat. Now,<br />
with the launch of IGTV, it’s trying to find a way to keep users<br />
engaged and all in the family.<br />
IGTV: WHY IT’S DIFFERENT<br />
Instagram built out IGTV to seamlessly fit with how you actually<br />
use your phone. To that end, videos are vertical (rather than<br />
horizontal) and full screen. No more turning your phone sideways.<br />
No more tiny horizontal screens within the vertical screen. IGTV<br />
is full screen and starts playing as soon as you either open the<br />
standalone app or click over on the TV icon within the Instagram<br />
platform (just like an actual TV). This particular feature is<br />
Instagram’s attempt to capture the massive amounts of people<br />
who watch videos on their smartphones — something other<br />
media apps are being slow to adapt to for video.<br />
IGTV also expands the types of content that work on the<br />
Instagram platform. Previously, Instagram users were restricted<br />
to one-minute videos when posting — less for Stories. But with<br />
IGTV, videos can be up to 10 minutes — an hour if your profile is<br />
verified. And, you can link to your IGTV page directly from your<br />
Instagram profile page.<br />
WHY IGTV IS EXCITING FOR<br />
REAL ESTATE<br />
This is widely viewed as Instagram’s shot at YouTube — and<br />
for good reason. The big benefit to IGTV is that it keeps your<br />
followers in one app.<br />
As a REALTOR ® , IGTV can be one more tool in your toolbox to<br />
help you achieve your business and growth goals.<br />
Posting is simple:<br />
1. Open the Instagram app and go to your feed.<br />
2. Look to the top right-hand corner and tap the icon that<br />
looks like an old school TV.<br />
3. Create your channel by tapping the settings icon. Tap<br />
“create channel,” read through the description slides, and<br />
then you’re in!<br />
4. Upload a video by tapping your profile picture on the<br />
right-hand side. Then, hit the plus sign to open your video<br />
library. Only videos between 15 seconds and 10 minutes<br />
will show up here.<br />
5. Select the video you want to upload, and add a title and<br />
description. This is a good opportunity to change the<br />
cover image that will serve as the video preview.<br />
6. Tap “post.” Congrats, you posted your first IGTV video!<br />
The biggest perk is that your audience is already built in. Unlike<br />
an entirely new video platform, where you’d have to build your<br />
following from scratch, IGTV ensures that you automatically<br />
12 Chicago REALTOR ® <strong>Magazine</strong>
HOW TO<br />
LEVERAGE<br />
INSTAGRAM’S<br />
follow the people on IGTV that you follow on Instagram — so<br />
your following transfers seamlessly from the Instagram feed to<br />
the IGTV one.<br />
IGTV, in it’s current, initial iteration, cannot yet support live<br />
videos — but the Instagram app itself already does. So, for<br />
your next listing, you could have a mildly produced video tour<br />
that you post to IGTV. You could do a live pre-open house tour<br />
to show off the various features of the home on Instagram<br />
Stories. And, you could post a slideshow of photos with the<br />
home’s information on the Instagram feed. That’s three different<br />
marketing tools, all in one app.<br />
Best of all, IGTV maintains the interactivity present in Stories and<br />
your feed: you can heart, comment and share IGTV videos with<br />
your community.<br />
As of press date, no timeline has been publicly shared for when<br />
ads will start to roll out on the IGTV platform, but rest assured,<br />
they’re coming — and it’ll be yet another way REALTORS ® can<br />
optimize their Instagram following.<br />
WHAT KINDS OF CONTENT<br />
WORK BEST?<br />
HOW TO OPTIMIZE YOUR INSTAGRAM<br />
PROFILE FOR IGTV<br />
IGTV does have a few quirks — but don’t worry, they’re easy to<br />
navigate.<br />
1. Only the first two sentences of your Instagram bio will<br />
show up. So, if your goal is to grow your Instagram<br />
followers through IGTV, make sure the first two sentences<br />
of your Instagram bio description are both catchy and<br />
relevant to your content.<br />
2. IGTV search utilizes your Instagram “name” (the bolded<br />
section of your Instagram bio below your profile picture)<br />
— so why not include the type of content you want to be<br />
known for there, like Real Estate Investor or Chicago<br />
Real Estate Broker. You can’t search for video types, so<br />
take advantage of the name search to set yourself apart<br />
and make your channel easier to find.<br />
Like any other tool, it’ll take some time to adjust to a new<br />
platform and way of sharing your content — but at least this time,<br />
you won’t have to start your following for scratch. Give IGTV a try,<br />
and let us know how you’re using it @chicagorealtors.<br />
IGTV is likely best used for information, rather than sharing your<br />
day to day. To start, IGTV would be great platform for tutorials<br />
and FAQs on the homebuying process, team introductions,<br />
house and neighborhood tours and education.<br />
loreal_realtor<br />
Loreal Flowers|Chicago REALTOR<br />
Real Estate, Chicago, IL<br />
linktr.ee/loreal_realtor<br />
VERTICAL: IGTV<br />
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Real Estate Keynote Speaker<br />
Real Estate, Chicago, IL<br />
linktr.ee/markilemons<br />
NEW VIDEO<br />
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www.ChicagoREALTOR.com 13
Thriving in Place:<br />
What Your Senior Clients Should Know<br />
14 Chicago REALTOR ® <strong>Magazine</strong>
The U.S. is set for a massive change in what our population looks<br />
like. There were more than 43 million Americans aged 65 and<br />
older in 2012. By 2050, that number will jump to 83 million. As our<br />
demographics change, the types of clients you work with will<br />
change along with it. The senior market has different needs than<br />
say, a millennial first-time homebuyer. You won’t find much success<br />
taking a one-size-fits-all approach when working with these clients.<br />
Here are some of the trends in the senior market to better serve this<br />
growing group of Americans.<br />
MULTIGENERATIONAL HOUSING<br />
One of the biggest emerging trends in the senior market is the rise<br />
of multigenerational housing. One-in-five seniors now live under<br />
the same roof as someone from a different generation, according<br />
to the Pew Research Center. In 2016, the amount of Americans in<br />
multigenerational housing reached its highest level ever, at 64 million.<br />
That statistic lines up well with the <strong>2018</strong> National Association of<br />
REALTORS ® Home Buyer and Seller Generational Trends report,<br />
which looks at who are buying homes and why. In 2017, around<br />
one-in-five homebuyers over the age of 52 bought a home for the<br />
purpose of multigenerational living. Adult children moving back<br />
into the home was one of the biggest reasons why these buyers<br />
purchased their home.<br />
When engaging with multigenerational buyers, keep in mind that<br />
they may have different needs than some of your other senior<br />
clients, such as:<br />
• School Districts: Households made up of a grandparent, adult<br />
child and a grandchild number about 30 million, according<br />
to Pew.<br />
• Privacy: Ask how the rooms will be used instead of how many<br />
bedrooms these buyers are seeking. What is appropriate for a<br />
young child may shift for an older teen, who may benefit best<br />
from a finished basement to host their friends.<br />
• Accessibility: Keep floorplans at the top of your list.<br />
Accessibility needs may change as the family ages with the<br />
home. A suite with stairs could be easy for a senior today but<br />
becomes unusable over time.<br />
CO-LIVING<br />
Older Americans are less likely to live alone, reversing a 60-year<br />
trend. One positive reason: better healthcare has increased life<br />
expectancy, so people are now more likely to live with their spouse<br />
than be widowed. The rise of multigenerational housing can also<br />
explain the trend.<br />
But an increasing group of seniors see the “Grace and Frankie”<br />
approach as a more attractive option than living alone, and AARP<br />
expects this trend to grow as more Baby Boomers retire. Why?<br />
Studies found older adults living alone are more likely to feel<br />
financially stressed and socially isolated than with others. More<br />
than a quarter of American adults over 45 said they would move<br />
in with a roommate in order to supplement income, according to a<br />
2014 AARP survey.<br />
While the buyers in this age range are the most likely to have<br />
purchased a home before, navigating the homebuying process<br />
with a pair of unrelated seniors pooling their resources can be<br />
tricky. Establish clear guidelines on how to communicate and how<br />
decisions will be made in your first meeting.<br />
NURSING HOMES AND “AGING IN PLACE”<br />
Another reason why less seniors are living alone — the steep fall in<br />
popularity of nursing homes. The share of older Americans living in<br />
nursing homes dropped by double digits since 1990.<br />
“Aging in Place” is a term the Centers for Disease Control and<br />
Prevention uses to describe “the ability to live in one’s own home<br />
and community safely, independently, and comfortably, regardless<br />
of age, income, or ability level.” The definition sounds empowering.<br />
However, studies have found most senior homeowners do not like<br />
this term at all.<br />
M ore than half of adults<br />
over 65 said they’d prefer to<br />
stay at home with a caretaker<br />
than go to a nursing home.<br />
Even though seniors have a higher quality of life and level of<br />
independence than in decades past, the stigmas around aging<br />
are well-ingrained in our culture. A survey by Home Advisor found<br />
respondents doing renovation work that met the CDC definition of<br />
aging in place refused to call it that. REALTORS ® should follow the<br />
lead of their client when discussing the concept of aging in place to<br />
gauge their comfort level. You can add a positive spin to the medical<br />
term by instead using “Thriving in Place,” a more preferred term.<br />
SMART TECH<br />
Forget the stereotype surrounding technology and the elderly. One<br />
third of seniors who purchased a home in 2017 found their agent<br />
from the internet. As Silicon Valley has placed a greater emphasis<br />
on accessibility, technology has become an important tool to help<br />
seniors maintain their independence.<br />
Here are some of the tech-enabled finishes that will appeal to this<br />
segment of your client:<br />
• Nest Learning Thermostat: This programable thermostat<br />
changes the temperature based on the time of day and the<br />
habits of the homeowner. Seniors can benefit by controlling<br />
the thermostat with their voice or phone, and use sensors to<br />
turn it off when they are gone to save energy and money.<br />
• Ring: The ring video doorbell allows homeowners to see, hear<br />
and speak to someone at their door from a phone or PC,<br />
which is particularly useful for those choosing to live alone.<br />
• Wallflower: This smart monitor works to prevent one of the<br />
leading causes of fires in the U.S.: cooking. Wallflower<br />
converts any existing stove into an internet-enabled appliance<br />
that will automatically shut off if it has been on too long.<br />
As the demographics of your clients change, your skills should<br />
change along with them. Our REALTORS ® Real Estate School offers<br />
a Seniors Real Estate Specialist (SRES ® ) designation course, to<br />
further adapt the needs of the senior market to your practice.<br />
www.ChicagoREALTOR.com 15
Structuring Your Business<br />
Starting a real estate business can be intimidating. Setting your<br />
business up for success starts by setting up your business. Here are<br />
some considerations to make before stepping off on your own.<br />
Define Your Objectives<br />
Why are you creating your own company instead of working for<br />
someone else? What will make your brokerage stand apart? Are you<br />
prepared to walk into a lawyer’s office and set up your company?<br />
The main differences between them are how commissions are<br />
handled and how employees are treated for tax implications.<br />
Traditional brokerages are the most common among REALTORS ® ,<br />
with nearly three-quarters splitting a commission between the agent<br />
and the brokerage, as of 2015. 100% Commission, a brokerage type<br />
where agents pay a monthly fee to the brokerage and keep the full<br />
commission, makes up 1 in 5 brokerages in the country, according to<br />
2015 NAR data.<br />
Chicago attorney Adam Wilde, Wilde Law Group, LLC, said having<br />
these ideas in mind is a great start.<br />
“The first thing I would recommend is a clear objective of ownership,”<br />
Wilde said.<br />
Wilde said a beginning broker should ask themselves if they’re<br />
looking to establish a sole ownership, develop into a team or have<br />
employees.<br />
“A broker should also consider any assets they want to put into the<br />
business, start-up capital, insurance transfers, account transfers,<br />
vehicle registration transfers [and] lease assignability (if they have<br />
their own workspace or office),” he said.<br />
Types of Brokerage<br />
Decide if your brokerage structure goes hand-in-hand with your<br />
objective of ownership. Will your firm franchise or not franchise?<br />
According to the National Association of REALTORS ® , the vast<br />
majority of firms in the U.S. are independent and non-franchised.<br />
NAR breaks down brokerage models into four common categories:<br />
• Traditional<br />
• Flat Fee<br />
• A La Carte<br />
• 100% Commission<br />
Traditional and 100% Commission brokerages typically treat agents<br />
as independent contractors, which affects a brokerage’s tax liability.<br />
Nearly 86 percent of REALTORS ® affiliated with a firm are treated<br />
as independent contractors, according to 2017 NAR data. Laws<br />
vary by state on how agents are classified and what constitutes<br />
an independent contractor. In Illinois, beginning brokers should<br />
ensure they’re conforming to the requirements of the Real Estate<br />
License Act of 2000 and any other laws that apply, like the Fair Labor<br />
Standards Act.<br />
Consider Tax Structure<br />
Speaking of tax classification, your brokerage will have different<br />
tax liabilities depending on its structure. Some common business<br />
organizations include limited liability companies (LLCs), corporations<br />
and S corporations.<br />
Wilde recommends that REALTORS ® consider setting up their<br />
business as a single-member LLC.<br />
“If you’re set up as an LLC, you have the option of electing to be<br />
treated as an S Corporation for Federal tax purposes,” Wilde said.<br />
“If you do not elect this option, the default for a single-member LLC<br />
is to report your taxes as a sole proprietor on Schedule C of your<br />
personal tax return. Both structures serve as pass-through income<br />
when considering the new tax laws enacted under the Tax Cuts and<br />
Jobs Act.”
So, what is a “pass-through?” For qualifying businesses, a corporate<br />
tax is not levied on its own. Instead, the profits a company earns<br />
“pass-through to individual owners, and they are taxed for those<br />
profits as their own individual income,” according to a December<br />
2017 PBS report.<br />
“In order to keep a level playing field between corporations and<br />
pass-through entities, Congress implemented a new Qualified<br />
Business Income Deduction (QBID) under Section 199A of the Internal<br />
Revenue Code. This gives certain pass-through entities a 20 [percent]<br />
deduction based on net taxable income from business operations.”<br />
Passed in late 2017, the Tax Cuts and Jobs Act lowered tax rates and<br />
extended some new deductions for small business owners.<br />
REALTORS ® should seek individual advice to properly project their<br />
tax liabilities under the new tax law, but there are general implications<br />
under the new law for brokerages, including in pass-throughs.<br />
“Congress dropped the C Corporation tax rates from 35 [percent] to<br />
21 [percent] so corporations will see much higher tax savings,” Wilde<br />
said. “However, double taxation stills exists [where] the corporation<br />
pays taxes on its taxable income as well as the income taken by the<br />
shareholders.”<br />
Although Tax Day was a few months ago, it’s important to keep<br />
in mind that the 2017 filing wasn’t affected by the new tax bill. All<br />
REALTORS ® should meet with their tax specialist early to ensure they<br />
are compliant and taking full advantage of the changes.<br />
It is important for new brokerage owners to consult with your own<br />
attorneys and financial/tax professionals to determine the best fit<br />
for your business.<br />
Business Structure Type LLC Corporation S-Corporation<br />
Pass-Through Entity Yes No Yes<br />
Limited Liability From Business Debt Yes Yes Yes<br />
Unlimited Number of Owners Yes Yes No<br />
Citizenship Required No No Yes<br />
Business Loss/Profit Appear on Personal Tax Filing Yes No Yes<br />
Tools/Documents IRS Form 8832 Form 2553<br />
Type of Entity LLC C-Corporation S-Corporation<br />
Definition<br />
Is a pass-through entity.<br />
Limited financial liability<br />
to partners, similar to a<br />
corporation.<br />
Not a pass-through entity.<br />
Limited Liability.<br />
Is subject to corporate<br />
income tax.<br />
Is a pass-through entity.<br />
Limited Liability.<br />
Is not subject to corporate<br />
income tax.<br />
Corporations are considered<br />
C-Corps unless they elect<br />
otherwise<br />
Shareholders are taxed<br />
based on shareholdings.<br />
Benefits<br />
Shields personal assets<br />
from business liability<br />
Considerations<br />
Incomes is reported on<br />
owner’s individual tax<br />
return<br />
Requires separation of<br />
business and personal<br />
finances<br />
Owners pay personal<br />
income tax on profits<br />
Business must pay corporate<br />
income tax<br />
Dividends distributed at the<br />
individual level<br />
Income<br />
Owners pay personal<br />
income tax on profits<br />
All business income/loss is<br />
passed through to owners<br />
each year.<br />
Tools/Documents<br />
Form 8832 for Entity Classification Election:<br />
https://www.irs.gov/pub/irs-pdf/f8832.pdf<br />
Publication 542 is a guide to corporation from the IRS:<br />
https://www.irs.gov/pub/irs-pdf/p542.pdf<br />
Requires Form 2553<br />
from the IRS.<br />
https://www.irs.gov/pub/<br />
irs-pdf/f2553.pdf<br />
www.ChicagoREALTOR.com 17
Under All Is The<br />
Community<br />
Congratulations to Chicago REALTOR ® Michael LaFargue, a tireless<br />
neighborhood champion, whose efforts to keep residents connected<br />
and safer led to being honored as a finalist for the National Association<br />
of REALTORS ® Good Neighbor Awards.<br />
Nearly two years after the shooting, REALTOR ®<br />
Michael LaFargue can barely talk about Judge<br />
Raymond Myles without breaking down.<br />
Myles, a Cook County, Ill., jurist and respected<br />
member of his tight-knit neighborhood, West<br />
Chesterfield on Chicago’s South Side, was<br />
murdered outside of his home in early 2017<br />
during a robbery attempt. If any small comfort can come from this<br />
tragedy, it’s that one of the 45 or so surveillance cameras the West<br />
Chesterfield Community Association had installed just months<br />
before helped police identify the two suspects. Those men are now<br />
awaiting trial.<br />
LaFargue, president of WCCA and an associate broker with<br />
Coldwell Banker Residential, is dogged about protecting and<br />
growing the neighborhood, which, its tagline proudly notes, is “a<br />
great place to live and raise a family.”<br />
Keeping a Watchful Eye<br />
After an uptick in crime in the neighborhood, LaFargue<br />
spearheaded the push for community surveillance cameras.<br />
(Fatefully, Myles was a big supporter of the idea, too.) It’s a<br />
testament to his reputation that LaFargue was able to secure<br />
$<br />
400 each from about 60 residents for the three-year, $ 25,000<br />
investment. Community members who paid for the system have<br />
24-hour access to camera footage from their computers or cell<br />
phones. Most importantly, they work together to keep each<br />
other safe.<br />
“He’s good at pulling people together. It takes a lot to do that, and<br />
to keep them going on the same mission,” Dr. William T. Briggs Jr.,<br />
chairman of the Red Line Extension Coalition, another of LaFargue’s<br />
endeavors, said. (More on that later.)<br />
Take, for example, the morning a resident noticed a suspicious<br />
person in an alley. He called LaFargue to check the camera feed,<br />
which showed people breaking into a car. The resident followed the<br />
perpetrators in his car and then turned over the chase to LaFargue,<br />
who kept an eye on the suspects (they got a flat tire!) until another<br />
neighbor—a cop—apprehended them.<br />
Besides being the community’s eyes and ears, LaFargue, over<br />
his 12-year WCCA presidency, has overseen block clubs, hosted<br />
events such as dog walk socials and garden walks, and sponsored<br />
the annual Curb Appeal awards, in which a WCCA committee picks<br />
“As president, you’re<br />
the driver of fundraising<br />
and getting people to<br />
knock on doors, and<br />
making sure message<br />
gets out there for dues.<br />
If the president<br />
doesn’t push, it<br />
doesn’t get done.”<br />
—MICHAEL LAFARGUE<br />
18 Chicago REALTOR ® <strong>Magazine</strong>
the home with the nicest curb appeal, designating the accolade with<br />
a yard sign. “That program keeps people involved in the community;<br />
they take pride in [where they live], and it maybe sets up a little<br />
friendly competition,” LaFargue said.<br />
As a real estate professional, he has a unique perspective on the<br />
community, notes CeCe Edwards, who works with LaFargue on<br />
a parks group. “He’s not cloistered. He sees the bigger vision,”<br />
Edwards said. And that vision includes property value. “He’s a big<br />
proponent of [the community’s] involvement in neighborhood<br />
schools, whose quality directly affects property values,”<br />
Alonzo Anderson said, a vice president of WCCA who was also<br />
instrumental in bringing in the cameras.<br />
To that end, LaFargue organizes career days and toy drives for<br />
students, and he encourages school council members to join<br />
community associations like WCCA to create a vibrant circle of<br />
participation and connection.<br />
Leading by Example<br />
LaFargue is also president of the Red Line Extension Coalition, a<br />
group of about 27 grassroots community associations he brought<br />
together to help drive the $ 2 billion, 5.3-mile expansion of one of<br />
Chicago’s rail transit routes to the far South Side. This would give<br />
people in underserved areas easier access to jobs, schools, worship,<br />
and recreation. The group keeps up steady pressure on legislators<br />
and city planners while galvanizing the community to make their<br />
voices heard. The project depends in part on federal funding, which<br />
hasn’t yet been approved.<br />
“As president, you’re the driver of fundraising and getting people to<br />
knock on doors, and making sure message gets out there for dues.<br />
If the president doesn’t push, it doesn’t get done,” LaFargue said.<br />
Meanwhile, as chairman of the 95 th Street Panel Development<br />
Committee, LaFargue is also actively shepherding development<br />
in the low-income area around the 95 th Street Red Line station,<br />
the transit line’s current terminus on the South Side. Phase 1 of the<br />
development is finished, and the much-needed $ 280 million rehab of<br />
the transit station will be complete in 2019.<br />
Balancing Act<br />
How does he run a full-time real estate business and dedicate<br />
himself to community activism at such an intense level—more than<br />
1,000 hours in 2017 alone? LaFargue doesn’t have a secret system in<br />
place: “I burn the midnight oil. I’ll get stuff done at midnight or 4 a.m.,”<br />
he said. “I joined these community organizations selfishly—maybe<br />
I’ll generate some real estate business from them—but it went the<br />
opposite way.” He’s had to forgo deals because of his commitments.<br />
He’s had to limit his vacation time, too. One year, LaFargue and his<br />
wife were heading to Michigan for the Labor Day weekend when<br />
the mayor’s office called, asking him to represent his community<br />
development agenda at a 95 th Street station press conference<br />
that day. Postponing the vacation, LaFargue quickly put together<br />
a speech to stress that the community is looking for quality-oflife<br />
development around the station. “We want good business<br />
neighbors,” he said.<br />
“Sometimes, he’s overstretching himself, but that’s his passion—this<br />
community,” Anderson said. “Anything he sees that will help this<br />
community, he gets involved.”<br />
Christina Hoffmann<br />
Content Manager,<br />
HouseLogic.com<br />
Reprinted from REALTOR ® <strong>Magazine</strong> by permission of the<br />
National Association of REALTORS ® . Copyright <strong>2018</strong>. All rights reserved.<br />
www.ChicagoREALTOR.com 19
How to Stand Out as a<br />
PROPERTY<br />
MANAGER<br />
We sat down with Chris Pezza, Miller Chicago LLC, and picked<br />
his brain on property management tips for beginners and<br />
veterans alike. He’s a tried-and-true property manager with so<br />
many nuggets of advice, we didn’t want to leave anything out!<br />
Why should you care about perfecting your property<br />
management practice? Not only will it save you money, it<br />
will improve your relationships with your tenants and with<br />
your network.<br />
DEVELOP A SMART<br />
BUSINESS STRATEGY<br />
Own and manage like you’ll own and manage your property<br />
forever; if you’re a third-party manager this mindset is essential<br />
to establishing a proactive, profitable property management<br />
business strategy.<br />
Formalize your systems and processes, and take advantage<br />
of CAR’s forms and contracts page! Many of those forms are<br />
offered for free, a unique benefit to our association.<br />
KNOW LEGISLATION<br />
The single most important document to any property manager<br />
is the Chicago Residential Landlord and Tenant Ordinance<br />
(RLTO). As one of the strictest in the country, all property<br />
managers should be well-versed. You should establish a good<br />
relationship with a landlord attorney— not to be mistaken for a<br />
real estate attorney who does not know RLTO.<br />
Next, know local. If you own properties in Evanston, your<br />
regulations will differ from your properties in Chicago. Stay<br />
aware of these differences and how frequently they change.<br />
A great way to stay up-to-date on legislation is to attend<br />
CAR’s monthly Coffee with Your GADs events; they’re free<br />
for members!<br />
KNOW YOUR PROPERTY<br />
A stellar property manager must know their properties inside<br />
and out. Visit your property with a checklist (even tried-and-true<br />
managers can forget things!) and an inspector. Eyeball it top-tobottom<br />
and take inventory of the state of the roof, siding or brick,<br />
the windows, the foundation, etc.<br />
You should also know your building types, from condos, to twoflats,<br />
to courtyard buildings, to 4+1, to skyscrapers and so on. The<br />
type of building offers an insight into where it fits in Chicago’s<br />
history and, most importantly, will tell you how your property<br />
will run and what sort of attention it’ll need. For example,<br />
maintaining a stable foundation is crucial to managing a 4+1,<br />
while maintaining an elevator is more important in a skyscraper.<br />
And, if you know your legislation, you know that due to life<br />
safety, Chicago has a heat ordinance. Know what type of<br />
heating system your building has (HVAC versus boiler) and<br />
what condition it is in. The safety of your tenants depends on it!<br />
BUDGET WISELY<br />
When it comes to smart budgeting, research your fixed costs<br />
first. These are insurance, taxes, water bills and more. From<br />
there, you can budget for your variable costs (roof leaks, boiler<br />
repairs and replacements, plumbing emergencies) which often<br />
hurt the most. Look up benchmarking resources and talk to<br />
20 Chicago REALTOR ® <strong>Magazine</strong>
other real estate professionals. Other property managers love<br />
talking about this and trading “war stories,” so take advantage of<br />
this community of experience.<br />
Whether you’re managing the properties you own or you’re<br />
a third-party manager, maintain a proactive calendar and a<br />
proactive attitude. There should be no cutting corners, because<br />
it’ll just cost more in the long run.<br />
For example, if you know the heating systems in your property<br />
need to be inspected and maintained each September, mark it<br />
into your calendar and budget for the possibility of extensive<br />
repairs. If you know the boiler in your property is going on<br />
eleven years, you may need to prepare for the possibility of<br />
replacing it soon.<br />
COMMUNICATE WITH OWNERS<br />
When you communicate with owners, do so with solutions and<br />
action plans, and always contact the owners ahead of time.<br />
If you know the courtyard building you manage for an owner<br />
has a twenty-year-old roof, you should budget for possible<br />
repairs as age and weather take their toll.<br />
Let’s say the roof has a leak. A proactive property manager<br />
alerts the owner not only about the reported leak, but also<br />
includes two quotes they’ve collected from contractors and<br />
their recommended course of action. This is a defining quality<br />
in an excellent property manager and is sure to maintain the<br />
trust of the owner.<br />
COMMUNICATE WITH TENANTS<br />
Working with tenants is one of the biggest challenges of<br />
property management. Keep in mind that tenants don’t get<br />
mad when stuff breaks; they get mad when they feel like their<br />
landlord doesn’t care.<br />
If you get a maintenance request because the refrigerator<br />
has broken down in one of your units, respond with empathy<br />
and as much information you can provide. If it needs to be<br />
replaced, tell the tenant a fridge typically takes three days to<br />
come in and that you advise they limit how frequently they<br />
open it in the meantime. Assure them this ticket is a priority.<br />
manager among tenants increase, the relationship with the<br />
people living in your properties will remain positive and<br />
stress-free.<br />
HONE YOUR KNOWLEDGE<br />
Stay on top of managing properties in Chicago. As a property<br />
manager, no matter your experience, the wisest are always<br />
honing their knowledge. Attend property management forums<br />
and Coffee with Your GADs, and be sure to take classes to stay<br />
up-to-date.<br />
The classes offered at REALTORS ® Real Estate School cover<br />
topics like running numbers on multi-units for investors, the<br />
pros and cons of incorporating, common mistakes to avoid<br />
and much more. Dive into everything in the business when<br />
you sign up for one of these.<br />
UPCOMING CLASSES<br />
ESSENTIALS OF PROPERTY MANAGEMENT<br />
6 Hours Elective CE<br />
October 16-17<br />
Instructor: Taft West<br />
PROPERTY MANAGEMENT 101<br />
3 Hours Elective CE<br />
December 12<br />
Instructor: Chris Pezza<br />
OTHER COURSES <strong>–</strong> 3 HOURS<br />
ELECTIVE CE<br />
• COMMERCIAL LEASING 101 | October 22<br />
• DOWNTOWN COMMERCIAL PROPERTY<br />
MANAGEMENT | October 22<br />
• HOW TO ANALYZE & UNDERWRITE MULTI-UNIT<br />
& MIXED-USE PROPERTIES | November 6<br />
• PROPERTY MANAGEMENT & MANAGING RISK | TBD<br />
• UNDERSTANDING 1031 TAX-FREE EXCHANGES | TBD<br />
Register at ChicagoREALTOR.com/Education<br />
Responding with care makes you appear transparent and<br />
trustworthy, and not only will your credibility as a property<br />
www.ChicagoREALTOR.com 21
Your Brokerage’s<br />
Greatest Risk for<br />
Cyber Crime: You<br />
Last year, more than 143 million people<br />
had their data exposed by a data<br />
breach perpetrated against Equifax.<br />
Cybercrimes against large corporations<br />
such as Target or The Home Depot are<br />
top news stories. However, hackers are<br />
far more likely to target small businesses<br />
like your brokerage. In fact, companies<br />
with fewer than 250 employees are the<br />
most targeted by hackers, according to<br />
a report from Symantec.<br />
Because of the nature of the job, REALTORS ® are often on-the-go,<br />
using a personal phone and public Wi-Fi network, putting you and<br />
your clients at a much higher risk of exposure.<br />
As REALTORS ® , you’re trusted by your clients with sensitive<br />
information, such as Social Security numbers, bank account<br />
information and drivers’ license numbers. While you’re collecting<br />
this data for credit checks or mortgage documents, you’re also<br />
opening your clients up to irrevocable damage if it ends up in the<br />
wrong hands.<br />
Though there aren’t federal laws on data breaches that specifically<br />
apply to brokerages, there are laws in many states, including<br />
Illinois. State law requires companies to notify clients of a security<br />
breach and to encrypt or destroy client data companies collect.<br />
Yet, a survey by Manta found 1 in 3 small businesses have no type<br />
of cyber protections, including encryption, antivirus software or<br />
firewalls in place. If your brokerage does not have a data security<br />
program in place, the Federal Trade Commission has five simple<br />
principles to keep in mind:<br />
• Take Stock <strong>–</strong> Ensure you know what personal information<br />
you have on file.<br />
• Scale Down <strong>–</strong> Don’t hold onto data you no longer need.<br />
• Lock It <strong>–</strong> Secure the data your business needs.<br />
• Pitch It <strong>–</strong> Get rid of data you don’t need.<br />
• Plan Ahead <strong>–</strong> Create a data security plan.<br />
Given how destructive hacking can be, cybersecurity insurance is<br />
becoming more popular. Cybersecurity business insurance typically<br />
has a high premium, but can work to recover costs caused by a data<br />
breach. Here’s how you can lessen your risk of a security breach:<br />
• Back up old emails: Criminals can use keywords from old<br />
emails you sent five years ago against you. If you need to<br />
hold on to older emails, consider storing them in an<br />
external hard drive you store off network. Your office should<br />
have a document retention and destruction policy <strong>–</strong> be sure<br />
you’re acting accordingly!<br />
• Use a Password Manager: Everything requires a<br />
password now. As tempting as it is to use the same<br />
password for everything, recall recent hacks from Best Buy<br />
and MyFitnessPal which exposed logins and passwords for<br />
their sites. With tens of millions of records exposed, you<br />
may not even know that your password for another site is<br />
easily accessible on the web. That’s why a password<br />
manager, a service that securely stores complex<br />
passwords for many sites, is so useful. Many password<br />
managers offer a yearly subscription plan that typically<br />
costs less than $ 30.<br />
• Educate Staff: Hackers only need one click on a fraudulent<br />
link to gain access to your entire company’s network.<br />
Managing Brokers should reiterate the importance of being<br />
vigilant and using good judgement online for all staff.<br />
• Hire an IT adviser: Given Illinois’ data laws, brokerages<br />
should ensure they are compliant and safeguarded against<br />
possible exposure. For a smaller brokerage, using an IT<br />
adviser may be a more affordable option than hiring<br />
someone full time. An advisor can set up a security plan<br />
and perform maintenance monthly, as needed.<br />
• Check to See If You’re the Victim of a Breach: You can<br />
type your email address into HaveIBeenPwned.com, a<br />
website created by a software developer that checks your<br />
account against publicly shared data by hackers.<br />
22 Chicago REALTOR ® <strong>Magazine</strong>
Matt Farrell’s<br />
Security Tips<br />
As the managing broker of Urban Real Estate, Matt Farrell<br />
is well-versed in helping maintain data security. Here are a<br />
few of his tips!<br />
EN<strong>CR</strong>YPT IT<br />
Always make sure that your data at rest is encrypted. This<br />
means, anything you save on your computer’s hard drive, a<br />
portable hard drive or USB thumb drive should be encrypted.<br />
Windows 10 Professional includes BitLocker, which can<br />
encrypt your files for you. This also makes it safer when you<br />
“retire” your computer, as even deleted files remain encrypted.<br />
PROTECT YOUR CLIENTS AGAINST<br />
REAL ESTATE CYBER <strong>CR</strong>IME<br />
A growing scam among hackers is real estate wire fraud, which has<br />
cost consumers over $ 5 billion in financial losses from real estate<br />
wire fraud since 2013, according to FBI statistics.<br />
In this scam, hackers send an email to a buyer about to close on<br />
a home with fake wiring instructions. The perpetrators pose as a<br />
real estate attorney, seller, representative of the title company or<br />
other trustee to trick buyers into wiring away their savings <strong>–</strong> and<br />
technology has allowed this scam to flourish.<br />
One way scammers can accomplish this impersonation is through<br />
email spoofing. Spoofing allows a scammer to forge an email<br />
address to make it appear that it’s coming from a colleague or<br />
client. These criminals can gain access to your company’s network<br />
and send an email posing as you if anyone in your office clicks a<br />
malicious link.<br />
Another less technical way crooks can fool you is by creating<br />
an email address that is one letter off from the legitimate one,<br />
i.e. “@ChicagoRELATOR.com,” which can be difficult to spot at<br />
first glance.<br />
If you or a client clicks through a spoofed email, sophisticated<br />
criminals could gain access to company letterhead and forged<br />
signatures to make their bogus wire instructions appear more<br />
legitimate. The best way to prevent your clients from becoming the<br />
victim of wire fraud is by educating them early. Wire instructions<br />
rarely change, so tell your clients to always confirm by calling you<br />
and the title company before wiring any amount. If instructions do<br />
change, they won’t come without a phone call first.<br />
More and more of our personal data is being used online every<br />
day. News stories detailing hundreds of millions of stolen records<br />
continue to grow, not dissipate, so it’s critical for you to ensure you<br />
and your clients are protected against costly cybercrime.<br />
Access a variety of REALTOR ® safety<br />
resources at ChicagoREALTOR.com<br />
It is also important that any cloud provider you use for online<br />
storage is also encrypting their stored data (not just encrypting<br />
the connection). At Urban Real Estate, we have an Enterprise<br />
Box account with our own encryption key, so even if Box were<br />
to get hacked, the data they have stored is useless, as only we<br />
retain the key to unlock it. Box also has an easy integration into<br />
DocuSign, so a contract residing in the Box cloud can be sent<br />
for signature, and upon execution, immediately updates the<br />
Box folder with the completed document.<br />
MULTI-FACTOR AUTHENTICATION<br />
Only use services that allow for multi-factor authentication,<br />
and make sure you enable this! This means there will be<br />
at least two methods required for any new login. Banks<br />
often use this to text you a security code that you must<br />
use in addition to your password, so that if your password<br />
is ever stolen, that hacker would also need your phone.<br />
Some of the services you use already allow for multi-factor<br />
authentication, including Google Gmail, Office 365 (requires<br />
administrator to enable), Dropbox and Box. To really help<br />
lock things down, consider purchasing a YubiKey, which<br />
is a physical USB key that acts as that second form of<br />
authentication. Services like Dropbox have integrated the<br />
YubiKey into their services.<br />
USE A VPN<br />
If you are going to use a public Wi-Fi network, such as at your<br />
hotel, airport or favorite coffee chain, then you should just<br />
assume everything you are doing can be seen and captured.<br />
A virtual private network (VPN) creates a secure & encrypted<br />
tunnel between your computer and your VPN provider’s<br />
server. All of the data that you transfer on this public network<br />
when using a VPN will be routed through your VPN provider<br />
and is encrypted end-to-end. A very user-friendly solution is<br />
NordVPN. www.PrivateInterenetAccess.com, is less userfriendly,<br />
but one of the best solutions, with servers all over<br />
the country and the globe to keep your speed from slowing<br />
down (a common VPN side-effect). Dashlane is an excellent<br />
password manager that also offers a VPN service to their<br />
premium subscribers.<br />
www.ChicagoREALTOR.com 23
Managing Broker<br />
HOW TO SET<br />
REALISTIC GOALS<br />
AND EXPECTATIONS<br />
FOR YOUR BUSINESS<br />
Author: Mike McElroy, Center Coast Realty<br />
Real estate agents, particularly ones new to the industry, love to<br />
set big audacious goals without putting together a roadmap to<br />
accomplish them. They often want the result of hitting a goal...but<br />
the real question is, do they want the result more than the time,<br />
energy and money they’re going to have to trade in order to get it?<br />
Problem is, it’s impossible to know the answer to that question<br />
without doing some further analysis. When a bright-eyed, bushytailed<br />
agent comes to you with an ambitious goal, you don’t want<br />
be the manager who tells them they can’t do it. As a coach, you<br />
want to empower your agents to push themselves. So, take a<br />
As a coach, you<br />
want to empower<br />
your agents to<br />
push themselves.<br />
positive approach, like, “Awesome! While that may be a lot more<br />
than a typical first-year broker makes, it’s definitely possible, so<br />
let’s talk about what you need to do to make it happen.”<br />
Then, map out exactly what steps the agent will need to take to<br />
hit that goal. There’s a simple process you can follow, with two<br />
possible results:<br />
1. When you’re done, the broker will have a clear, actionable<br />
path to follow to hit their goals and take steps to follow it, or<br />
2. The broker sees how much work it will take to realize their<br />
goal and adjusts their expectations accordingly.<br />
You can now re-work this path to lead to their new goals.<br />
Set big goals.<br />
Start by setting a big goal for the end of the calendar year. One<br />
goal for the year is preferable, and I would suggest no more<br />
than three. More importantly, your goals need to be SMART —<br />
you’ve probably heard this acronym before. It stands for Specific,<br />
Measurable, Achievable, Relevant and Time-bound.<br />
Why are SMART goals important? Because if your goal isn’t<br />
SMART, there’s no way to tell if you actually accomplished it! Or,<br />
it might be the wrong goal — one that doesn’t lead to real success.<br />
Here’s an example of a goal that is not SMART: “I want to focus<br />
more on social media.” Have you heard that one before? Let’s see<br />
how it holds up to the SMART goal test:<br />
• Is it specific? Is it measurable? No.<br />
• Is it achievable? Is it relevant? There’s no way to tell.<br />
• Is it time-bound? Sure isn’t.<br />
Now here’s a SMART goal for a REALTOR ® that meets all the<br />
criteria: “I will increase my listing presentation closing ratio from<br />
40 percent in <strong>2018</strong> to 60 percent in 2019.”<br />
For the rest of our example, let’s use a simpler SMART goal:<br />
“I want to earn $ 150,000 after expenses in 2019.” This is a big goal,<br />
especially for a new agent. While a goal like this can potentially<br />
lead to frustration and burnout if not planned and worked for<br />
properly, it can also lead to, well, $ 150k in earnings.<br />
24 Chicago REALTOR ® <strong>Magazine</strong>
Take the SMART goal criteria into consideration:<br />
• Is it specific? Yes, we’re talking about $ 150,000 after<br />
expenses.<br />
• Is it measurable? Yes, we have a clearly-defined amount.<br />
• It is time-bound? Yes, we have a due date at the end of<br />
the year.<br />
We’re off to a good start.<br />
Tie these sales goals to daily<br />
action plans.<br />
Help the agent determine what actions every single day that will<br />
generate those leads. Door knocking? Cold calling? Open houses?<br />
Whatever the method, the agent needs to establish a good<br />
understanding of how much time or money they need to spend in<br />
order to hit their sales goals.<br />
Let’s now ask if this goal is Relevant. This is an important<br />
question to ask. Why does the agent want to make $ 150k? What<br />
will that amount of money allow them to do - provide for family?<br />
Pay off loans? Invest in the future of their business? If so, what<br />
does that future look like? Many agents fail to hit their goals<br />
because haven’t truly bought in. Do not skip this step.<br />
After you’ve walked through these four steps, it’s up the agent<br />
to decide if this goal is attainable. Now that your agent sees the<br />
entire process drawn out and they understand what they’ll have<br />
to do in order to hit their goals, ask them how they feel. Is this<br />
something they can commit to, and with your help, can they hold<br />
themselves accountable?<br />
Finally, is this goal attainable? Let’s find out.<br />
Break down the metrics.<br />
Now it’s time to work backward from our goal. The idea is<br />
to keep breaking the Big Goal into smaller goals until it’s<br />
completely within a broker’s control. This step can be a bit of<br />
work, so hang in there.<br />
If yes, congratulations, you’ve got a new key player on your team.<br />
If not, it’s worth going back to the drawing board and coming up<br />
with a more realistic goal that will set them up for success within<br />
their reach.<br />
If an agent wants to make $ 150,000, factoring in the agent’s<br />
expenses, how much gross commission will the agent need to<br />
bring in to earn that? Let’s say that number is $ 220,000. You then<br />
need to break that down into the number of buyers, sellers, and<br />
renters it will take to generate $ 220k worth of GCI.<br />
Let’s look at it in terms of listings. Based on what your brokerage<br />
charges sellers for commission, and your average sales per listing,<br />
you determine that it will take 22 transactions to generate $ 220K<br />
worth of GCI. Now we are starting to set some more manageable<br />
goals, but we’re not done yet. You can’t just step outside and<br />
pick a person out in a crowd to sell their house. You need to keep<br />
working backwards.<br />
If they need to close 14 seller transactions, how many listing<br />
agreements get signed? How many listing appointments will it take<br />
to get to that number of listing agreements? How many listing leads<br />
will the agent need to generate to get the necessary amount of<br />
listing appointments?<br />
If this sounds like a lot of work, it is. Software helps. Now would be<br />
a great time to dust off your Excel chops. At Center Coast, we’ve<br />
developed a tool that allows our agents to punch in some basic<br />
goals and assumptions. The tool then spits out a sales and marketing<br />
plan for the entire year and syncs with our <strong>CR</strong>M to measure results.<br />
Set micro sales goals.<br />
Once you’ve broken down the metrics and understand the<br />
conversion rates between each of those metrics, setting micro<br />
sales goals is easy. Let’s say that in order to close 14 seller<br />
transactions, they need to generate 200 seller leads over the<br />
course of the year. We can now set micro sales goals of 4 sellers<br />
leads per week.<br />
www.ChicagoREALTOR.com 25
OBAMA PRESIDENTIAL CENTER<br />
EXPLORING<br />
SOUTH SHORE,<br />
WOODLAWN and<br />
JACKSON PARK<br />
With its prime access to Lake Michigan, a rare collection of historic<br />
housing and $ 1 billion in hands-on development from some of<br />
the most influential architects of the last century, South Shore,<br />
Woodlawn and the Jackson Park Highlands have a lot to offer.<br />
Throughout history, these neighborhoods have experienced<br />
massive waves of development and international interest. And,<br />
due to historical racially-motivated discrimination and economic<br />
distress, the area has been hit harder by challenges, such as the<br />
2008 financial crisis.<br />
Today, South Shore, Woodlawn and the Jackson Park Highlands<br />
are in the midst of a renaissance. With housing values and<br />
populations back on the rise, and so many high-profile<br />
28 Chicago REALTOR ® <strong>Magazine</strong>
Image courtesy The Obama Foundation.<br />
developments in the works, it shouldn’t<br />
come as a surprise that Woodlawn was<br />
named 2016 Neighborhood of the Year by<br />
Curbed Chicago.<br />
Jackson Park<br />
It’s impossible to talk about this area<br />
without first acknowledging the World’s<br />
Columbian Exposition, because many of<br />
the local jewels were first developed for<br />
the fair. Around 125 years ago, Jackson<br />
Park was selected as the site that would<br />
introduce the world to Chicago.<br />
Jackson Park<br />
Highlands<br />
The Jackson Park Highlands is one<br />
great example of the lasting investment<br />
from the world’s fair. This 16-square<br />
block area within South Shore is home<br />
to rare, historic manor homes built as<br />
a showcase for the fair. Since 2015, the<br />
enclave of lavish Spanish Colonials,<br />
stately Tudors, uncommon Colonial<br />
Revivals and rustic French Provincials,<br />
has seen a spike in median sales price<br />
and home sales since 2015.<br />
Garden of the<br />
Phoenix<br />
Though most of the original ornate<br />
buildings are long gone, visitors to<br />
Jackson Park can still enjoy the Garden of<br />
the Phoenix, Japan’s contribution to the<br />
fair on Wooded Island. Featuring bonsai,<br />
arched bridges and intricate lantern<br />
posts, the island is a living time capsule.<br />
The garden was so inspiring to artist<br />
Yoko Ono that she recently installed her<br />
only permanent art installation in North<br />
America there.<br />
The Museum<br />
of Science and<br />
Industry<br />
The Museum of Science and Industry is<br />
another Jackson Park treasure, one of the<br />
only exhibition halls still standing. The<br />
museum, which has ample underground<br />
parking and several free admission days<br />
for Chicago residents, is known as the<br />
largest science center in the Western<br />
Hemisphere.<br />
Nearly 125 years later, Jackson Park was<br />
chosen as the site of a new massive<br />
international attraction— President Barack<br />
Obama chose the site as host of his<br />
presidential library. Once approved and<br />
completed in 2021, the $ 500 million-plus<br />
development will include tens of millions<br />
in infrastructure improvements for the<br />
surrounding area, along with a rush of<br />
tourists and others eager to capitalize on<br />
the area’s attention.<br />
The Midway &<br />
Development<br />
The boundary separating Woodlawn<br />
and Hyde Park is gorgeous, unique and<br />
another relic of the world’s fair. The<br />
Midway Plaisance, or the Midway, is a<br />
rambling collection of monuments, an ice<br />
rink, ball fields and gardens bordering the<br />
University of Chicago.<br />
Woodlawn is slowly becoming home for<br />
U. of C. students.<br />
In January, the university announced<br />
a major push for students in the<br />
neighborhood, announcing a $ 450 millionplus<br />
residential hall off 61 st Street. The<br />
Woodlawn Residential Hall is expected<br />
to house 1,300 students when it opens<br />
in 2020.<br />
Photo by Getty Images.<br />
Called the White City, the fair’s worldrenowned<br />
designers spent about $ 1.2<br />
billion in today’s dollars to construct<br />
their vision of a perfect miniature city. A<br />
swarm of new construction came to the<br />
surrounding Woodlawn and South Shore,<br />
as eager investors came to cash in on the<br />
international attention.<br />
THE MUSEUM OF SCIENCE AND INDUSTRY
OBAMA PRESIDENTIAL CENTER<br />
Photo courtesy The Obama Foundation.<br />
Just a few blocks away, on 63 rd Street,<br />
hungry undergrads will find newer indie<br />
cafés like Robust Coffee Lounge and<br />
Daley’s Restaurant.<br />
Daley’s<br />
Restaurant<br />
Daley’s holds an amazing distinction<br />
as Chicago’s oldest restaurant, which<br />
first opened its doors in 1892 — a year<br />
before the world’s fair. Just as much of<br />
South Shore and Woodlawn, the historic<br />
soul food spot is also experiencing<br />
revitalization. The restaurant is moving<br />
across the street to its new location as<br />
part of a $ 30 million development called<br />
Woodlawn Station, expected to be<br />
completed this fall.<br />
Getting Around<br />
Located at the entrance of the Cottage<br />
Grove Green Line CTA station, Woodlawn<br />
Station adds 70 mixed-income units and<br />
15,000 square feet of retail space and<br />
off-street parking. Also in the works: CTA<br />
announced last year that the Cottage<br />
Grove stop would receive a multi-milliondollar<br />
facelift to improve the station.<br />
This may help boost the Walk Score for<br />
South Shore and Woodlawn which rank<br />
lower than other neighborhoods. But its<br />
location, nestled between I-90 to the<br />
west and Lake Shore Drive to the east,<br />
make bus travel and driving convenient.<br />
And the proposed major investments like<br />
the Obama Center is expected to bring<br />
tens of millions in roadway upgrades.<br />
71 st Street<br />
Corridor<br />
Along the 71 st corridor brings another<br />
example of urban renewal. South Shore<br />
was dealt a loss with the closure of<br />
Dominick’s grocery store, which has<br />
remained vacant since 2013. The loss<br />
classified the area as a food desert.<br />
But another grocer, Shop & Save, filed<br />
paperwork with the city earlier this year to<br />
move into the space. The business corridor<br />
is still home to an eclectic mix of familyowned<br />
barbershops and restaurants, and<br />
larger retail chains such as Walgreens.<br />
One such restaurant, Italian Fiesta Pizzeria<br />
on 71 st , is one of the oldest in Chicago.<br />
Its cheesy, thin-crust pies are a favorite<br />
of Michelle Obama’s, who flew in Italian<br />
Fiesta’s owners to serve pizza during the<br />
2008 inauguration. A few streets down<br />
hides Majani Restaurant, an intimate,<br />
soulful vegan dining option. Highlights<br />
include the divine BBQ cauliflower and<br />
the savory sweet potato cookie.<br />
Another local gem is Chicken Wings<br />
Around the World, on 75 th Street, which<br />
offers an almost shocking number of<br />
flavors to choose from. The adventurous<br />
type should try their famous taffy<br />
grapes, the restaurant’s spin on a candy<br />
apple. And no trip to the area would be<br />
complete without a stop at the original<br />
A.P. Deli on East 75 th , home to Chicago’s<br />
best corned beef sandwich.<br />
South Shore<br />
Cultural Center<br />
Another prime example of rich history<br />
and rebirth of the area is the South<br />
Shore Cultural Center, off 71 st Street.<br />
The site started out as the South Shore<br />
Country Club in 1905 and was designed<br />
in a Mediterranean Revival style. For the<br />
club’s entire 68-year history, membership<br />
was not extended to African Americans.<br />
The club folded in 1973 and the building<br />
was sold to the city in 1975, where it has<br />
flourished as a cultural center. Today,<br />
membership is open to all. The center<br />
offers beach access, horse stables and<br />
even classes for children and adults.<br />
The building’s palatial ballrooms have<br />
been preserved and serves as a popular<br />
wedding spot.<br />
The center is also the site of a major<br />
investment. In 2016, golf pro Tiger Woods<br />
announced plans to revitalize the century<br />
old Jackson Park and South Shore golf<br />
courses into one suitable to host a PGA<br />
tournament, a $ 30 million project. The<br />
proposed refresh would also include tens<br />
of millions in infrastructure upgrades to<br />
improve the surrounding roadways. Once<br />
approved, the course is projected to be<br />
completed around the same time as the<br />
Obama center.<br />
30 Chicago REALTOR ® <strong>Magazine</strong>
RAINBOW BEACH<br />
SOUTH SHORE CULTURAL CENTER<br />
Rainbow Beach<br />
Nearby Rainbow Beach, on East 75 th<br />
Street, is home to expansive views of<br />
the city skyline and a surprisingly vivid<br />
ecosystem of native rare plants like the<br />
prickly pear cactus, perfect for an early<br />
autumn nature walk. There’s even been a<br />
bald eagle nesting recently spotted along<br />
the 60-acre shoreline.<br />
Housing<br />
Median sales prices for the combined<br />
Woodlawn, South Shore and Jackson<br />
Park Highlands have steadily increased<br />
since the 2016 announcement of the<br />
Obama center, while average market time<br />
has steadily decreased from its February<br />
2017 peak. It’s not too late for investors to<br />
get into the market. The sales price in the<br />
combined area is substantially lower than<br />
the city of Chicago average. One possible<br />
explanation — population loss.<br />
another reason why investors and potential<br />
homebuyers can get the most bang for<br />
their buck, especially compared to other<br />
areas nearby.<br />
Replacing<br />
Vacancies<br />
This renewal is starting to take hold<br />
commercially as well. Local businesswoman<br />
Alisa Starks is working to convert<br />
a blighted bank building on South Jeffrey<br />
Boulevard into an entertainment complex<br />
that would include a dine-in movie<br />
theater, a restaurant and a bowling alley<br />
by May 2019, according to the Tribune.<br />
The Strand Hotel, one of the oldest<br />
buildings in Woodlawn and former jazz<br />
Photos courtesy Felicia Yonter.<br />
haven was recently rehabilitated with<br />
a $ 23 million investment to convert the<br />
building into apartments.<br />
Neighborhood advocates say the<br />
investment boom and development of<br />
the north side must eventually work its<br />
way south. With hundreds of millions<br />
in development flooding the area, it<br />
seems that many can see the value in the<br />
area. But if South Shore, Woodlawn and<br />
Jackson Park do boom, it will not be the<br />
first time.<br />
Photo courtesy The Obama Foundation.<br />
OBAMA PRESIDENTIAL CENTER<br />
At its peak in 1960, more than 80,000<br />
people lived in Woodlawn. About 25,000<br />
people call Woodlawn home today. South<br />
Shore, while larger, also lost a significant<br />
number of residents in the 1970s. In fact,<br />
no community across the city lost as<br />
many downtown jobs as the South Shore<br />
between 2010 and 2014, as reported by<br />
the Chicago Tribune.<br />
As developers and community organizations<br />
debate over density in other neighborhoods,<br />
the large, varied housing inventory is
www.ChicagoREALTOR.com/YPN<br />
Last autumn we brought you the scoop on all the design trends<br />
for <strong>2018</strong>. Here’s what to look forward to in the year ahead,<br />
from our YPN breakfast panelists Dan Rak, Dan Rak Design,<br />
and Brynn Olson, Brynn Olson Design Group.<br />
2019 Design<br />
Brynn<br />
Dan<br />
Trends.<br />
kitchen updates<br />
ONYX<br />
Benjamin Moore<br />
WHITE DOVE<br />
Benjamin Moore<br />
1.<br />
2.<br />
3.<br />
Top Producer Market Trends<br />
and Observations<br />
Six Chicago REALTORS ® met at Prime & Provisions<br />
over the summer, in conjunction with Modern Luxury<br />
Chicago Men’s Book, to discuss trends in the luxury<br />
market. Sam Jenkins, Compass Real Estate, Jason<br />
O’Beirne, Jameson Sotheby’s International Realty,<br />
Joanne Nemerovski, Compass Real Estate, Bruce<br />
Glazer, @properties, Owen Duffy, Fulton Grace Realty<br />
and CAR president Rebecca Thomson, Thomson<br />
Real Estate Group, offered their takes on the market,<br />
the amenity race, marketing and more!<br />
BUYERS WANT AMENITIES<br />
Joanne Nemerovski noted that in luxury condo<br />
developments, buildings are putting in incredible<br />
amenities such as a virtual golf course, sprawling<br />
dog runs and health clubs. “I think they are having to<br />
compete with some of these rental buildings,” she said. “When you walk<br />
into some of these rental buildings, you feel like you’re on vacation.”<br />
Owen Duffy is seeing demand for higher end amenities in market rate<br />
condos. “Whereas two or three years ago, smart home technology was<br />
more of a wish or a want, I’m definitely seeing buyers viewing this as<br />
an expectation — at all price points,” he said. In particular, he predicts<br />
electric car chargers will rise to the top of many buyers’ wishlists within<br />
the next five years.<br />
Sam Jenkins observed that buyers are no longer accepting anything<br />
but top-of-the-line finishes for homes in their neighborhoods, something<br />
he said developers need to be aware of. “The demand for finishes<br />
has changed dramatically post-recession,” he said.<br />
CAR president Rebecca Thomson, Thomson Real Estate Group, Owen Duffy, Fulton Grace Realty , Bruce Glazer, @properties,<br />
Joanne Nemerovski, Compass Real Estate, Jason O’Beirne, Jameson Sotheby’s International Realty, and Sam Jenkins,<br />
Compass Real Estate.<br />
to seller demand. “People who are selling their home want an agent<br />
who has a following on social media and we’re seeing that more and<br />
more,” he said.<br />
Perception is reality, so building a large following communicates value<br />
to potential clients.<br />
DON’T IGNORE YOUR NETWORK<br />
O’Beirne noted the importance of knowing where your network is,<br />
as sometimes, where a bar is opening or where younger people are<br />
moving can be lucrative trend indicators. “If you hung out in Bucktown<br />
with residents, they would tell you that’s where you should invest your<br />
money,” he said. “But it took ten years before big money figured that<br />
out because they followed financial studies or Crain’s reports.”<br />
Rebecca Thomson asked the panel if the competition between buildings<br />
to provide the best amenities could potentially price out potential buyers<br />
unwilling to accept higher assessments that come with such amenities.<br />
Duffy said other REALTORS ® are a valuable resource towards helping<br />
him stay up to date. “We have an absolute army of real estate agents<br />
out there.”<br />
Nemerovski said one building, No. 9 Walton, took a different approach<br />
to those concerns. “Nobody said, ‘This is a great value,’” she said.<br />
“They’re saying ‘This is the highest quality and the best amenities, and<br />
we have an unbelievable building. If you can afford it, come be part of it.”<br />
Jason O’Beirne said in a softening market, a home with middle of the<br />
road finishes and amenities are not attractive to many buyers, making<br />
it very hard to control pricing. “The big takeaway I had when I was in<br />
real estate in 2008-2009 was, don’t get stuck in the middle. Either be<br />
minimalist and price accordingly, or be ultra luxury.”<br />
COMMUNICATE YOUR WORTH<br />
Duffy said many in the industry are seeing value in growing their follower<br />
counts on Instagram, LinkedIn and Facebook in response<br />
Bruce Glazer uses social media as more than a marketing tool. Glazer<br />
said he’s a member of many smaller neighborhood Facebook Groups<br />
to help gain a more a local perspective.<br />
Glazer also leverages technology to stay in front of clients and retain<br />
his business. Glazer said he uses a <strong>CR</strong>M called Follow Up Boss,<br />
especially useful for a feature that automatically sends short replies to<br />
messages from clients.<br />
“These days, when people click on a property that they’re interested in,<br />
they want a reaction from the broker right away,” he said.<br />
For digital tools REALTORS ® can use to maintain their book of business,<br />
visit ChicagoREALTOR.com.<br />
www.ChicagoREALTOR.com 33
Special Advertising Section<br />
INDUSTRYPARTNERS<br />
Women’s Council of REALTORS ® —<br />
Chicago (W<strong>CR</strong>-Chicago)<br />
In 1938, 37 women formed the Women’s<br />
Council. It’s amazing how influential<br />
the Council has become. Today, it’s the<br />
nation’s 12 th largest women’s professional<br />
organization! The Chicago Network has had<br />
an exciting first half of <strong>2018</strong>, and our top goal<br />
is to continue the work of those 37 women<br />
— to be inclusive, to identify new leaders<br />
and to create a thriving referral network.<br />
On September 20 th at “Hammer Time,” we<br />
held elections and hosted a developers’<br />
panel at Prime and Provisions. In November,<br />
we’ll join with YPN to host “Casino Royale.”<br />
Our installation will be the second week of<br />
December — which you must not miss! We’re<br />
so very grateful to our members, sponsors<br />
and strategic partners for supporting us!<br />
Veterans Association of Real<br />
Estate Professionals (VAREP)<br />
VAREP has had an exciting <strong>2018</strong>! We’re<br />
actively lobbying for veterans to be a<br />
protected class in the Federal Fair Housing<br />
Act to protect against discrimination. We’ve<br />
hosted two successful “Lunch & Learns”<br />
about the VA Home Loan process and how<br />
to work with your veteran clients. In May,<br />
our board attended the VAREP National<br />
Policy Conference to lobby for veterans and<br />
their residential real estate rights. We were<br />
also excited to partner with Chicago’s W<strong>CR</strong><br />
chapter for a summer event, celebrating<br />
women successful in male-dominated<br />
fields. Our board member, Brande Hampton,<br />
discussed her Navy experience and<br />
successful real estate agent work. We have<br />
much more coming — and we hope to see<br />
you at our next events!<br />
National Association of Gay &<br />
Lesbian Real Estate Professionals<br />
(NAGLREP)<br />
June is our favorite month of the year — as<br />
it combines National Homeownership AND<br />
LGBT Pride Months! We participated in<br />
countless Pride marches along with major<br />
events hosted by HUD, Freddie Mac and<br />
Fannie Mae.<br />
Next year marks the 50-year anniversary of<br />
Stonewall, and it’s critical for us to understand<br />
that the Federal Fair Housing law still does<br />
not include LGBT community protections.<br />
The economic power of the LGBT community<br />
can’t be overstated. With $ 940 billion in<br />
annual buying power and $ 1.7 trillion in<br />
economic input from the community, it’s time<br />
to take a greater look at the LGBT community<br />
of home buyers, sellers, and renters. Stay<br />
tuned for more from NAGLREP Chicago!<br />
The National Association<br />
of Hispanic Real Estate<br />
Professionals ® (NAHREP) Chicago<br />
NAHREP Chicago attended the NAHREP<br />
National Convention, the marquee event of<br />
the year, attracting 10,000 top real estate<br />
professionals, industry experts and corporate<br />
executives. This event (September 8-11 in<br />
San Diego) was the largest ever.<br />
To further advance the Hispanic Wealth<br />
Project and expand the message of financial<br />
empowerment to a broader audience,<br />
NAHREP is partnering with L’ATTITUDE, a new<br />
event concept that highlights Latino buying<br />
power, political capital and technological<br />
innovation. This is more than an event, it’s<br />
a movement. The <strong>2018</strong> NAHREP National<br />
Convention was the greatest Latino-real<br />
estate driven event in American history. Next<br />
up is our Fall Educational Event October 11 th<br />
and our Annual Holiday Event and Installation<br />
December 6 th ! We hope you’ll be there!<br />
REAL Estate to the Rescue (RTTR)<br />
Our largest fundraiser of <strong>2018</strong> (Cubs vs.<br />
White Sox at Wrigley field in May) was<br />
a rousing success, with nearly $ 20,000<br />
raised to help rescue homeless animals in<br />
Chicagoland! Following this event, we were<br />
called by Chicago Animal Care and Control<br />
to help ease their over-crowded facility.<br />
We were able to financially support the<br />
move of ten dogs to other foster and rescue<br />
organizations, keeping them from being<br />
euthanized.<br />
Our next fundraising event will be Thursday,<br />
October 18 th at the Brizo/Delta Showroom<br />
in the Merchandise Mart. Details are on<br />
our Facebook page at “Real Estate to the<br />
Rescue.” Please follow us to learn about all<br />
the fun things we’re doing to support local<br />
animals and shelters.<br />
GREATER<br />
Asian Real Estate Association<br />
of America (AREAA Chicago)<br />
AREAA Chicago enjoyed our 3 rd Annual<br />
Summer Showcase event and Sip,<br />
Schmooze and Study event! We enjoy<br />
providing exciting events for our members<br />
and those within the industry. Keep in mind<br />
that you do not have to be of Asian decent<br />
to join us and become a member. We are<br />
inclusive to all and gladly welcome new<br />
members into our organization. Membership<br />
dues automatically gets you national and<br />
local access and full benefits to AREAA —<br />
and discounted/free entry to our events!<br />
Join us and make sure you follow us on<br />
social media at @AREAAChicago!<br />
34 Chicago REALTOR ® <strong>Magazine</strong>
Special Advertising Section<br />
Dearborn REALTIST Board’s<br />
Community Wealth Building Day<br />
On Saturday, May 26 th , The Dearborn REALTIST Board’s Community Wealth<br />
Building Day provided resources, education and training to help Increase Black<br />
homeownership and cultivate Black real estate investors and developers.<br />
Recognizing the importance of teaching financial literacy from a young age,<br />
there was a Kids Developer Boot Camp, in addition to a variety of fun kid<br />
activities. More than 800 people attended, including a huge lineup<br />
of local dignitaries. An exciting and educational day indeed it was!<br />
Like us on Facebook @Dearborn Realtist Board - Chicago Realtist<br />
Photos courtesy Matt Difanis<br />
The FIABCI Midwest chapter was excited to host a<br />
summer kickoff rooftop event in May! Although the<br />
weather was a bit chilly, we kicked off the season<br />
with a great crowd of friends, members and<br />
dedicated supporters. Additionally, several of our<br />
members attended the MIPIM Conference in France<br />
and also FIABCI’s 69 th World Congress event, both in<br />
April — so we have been a busy bunch. The benefit is<br />
that we made lots of international connections and<br />
we enthusiastically invite you to join us as we<br />
continue to travel around the world to network and<br />
connect with like-minded individuals! Keep in mind<br />
we are still honoring a special rate of $ 350 to join our<br />
membership! This is almost a full $ 200 discount, so<br />
take advantage by joining one of the top<br />
international real estate organizations in the world.<br />
You can find us at<br />
@FIABCIMidwest<br />
Photos courtesy Matt Difanis<br />
www.ChicagoREALTOR.com 35
Global Real Estate Council<br />
Doing Business with<br />
IRELAND<br />
Ireland <strong>–</strong> land of abundant<br />
music, pubs and craic (enjoyable<br />
conversation, of course!). We<br />
welcomed Brian Dempsey,<br />
president of the Institute of<br />
Professional Auctioneers and<br />
Valuers (IPAV) <strong>–</strong> aka, Ireland’s own real estate<br />
association <strong>–</strong> to share a few of the reasons why<br />
you should consider doing business with the Irish!<br />
Q: What is the most important aspect about real estate in Ireland?<br />
A: With a population of 4.8 million and only 4,600 licensed<br />
real estate agents on the island, Ireland is a great place to buy<br />
property but can have its headaches. In some cases property<br />
values have increased twenty-fold over the past three decades;<br />
with this comes the turmoil of buying in a market that is always<br />
increasing or decreasing — it never appears to flatline either at the<br />
top or bottom. For instance a property which was worth €250,000<br />
in 2000 fell in value in 2001, but increased year over year through<br />
to late 2006 to approximately €750,000, in some instances. By<br />
2012, that same property was potentially worth around €250,000<br />
again, so Ireland isn’t exempt from international troubles or the<br />
underhanded actions of some of those who let things get way out<br />
of hand beyond their legal remit.<br />
We always recommend you research your purchase and above all<br />
consider its Location, Location, Location.<br />
Q: How can Chicago REALTORS ® work with real estate investors<br />
in Ireland?<br />
A: I think we can all see the world is getting smaller, connectivity<br />
to each other is in real time and the power of social media<br />
& applications such as Skype assist us in communicating<br />
consistently at a low or non-existent cost.<br />
With no MLS here, the formalities of referral are unchartered;<br />
however, I am currently working in conjunction with various<br />
organizations to put in place a vehicle which will enable us to work<br />
Brian Dempsey tours Chicago with Genie Birch,<br />
Century 21 Affiliated, and Maurice Hampton,<br />
Centered | RCG.<br />
Brian Dempsey shares his insights with the Global Real Estate Council.<br />
Maurice Hampton, Centered | RCG, with Brian<br />
Dempsey.<br />
36 Chicago REALTOR ® <strong>Magazine</strong>
in a positive, professional and transparent way. This will not only<br />
assist us as property professionals but also our clients, whether<br />
they be buyers or sellers. There certainly is demand for this now<br />
in a way that never existed before so watch this space!<br />
Q: What’s the best way to engage with the Irish population<br />
in Chicago?<br />
A: The Irish love all things American: the cities, the food, the culture<br />
and of course the people. Travel to and from the USA is cheaper<br />
than ever and this is bringing us closer than ever. Us Irish are social<br />
bunnies and from the people I met when in Chicago, I think we fit<br />
right in there, so our cultures are very similar with so much Irish<br />
blood already there.<br />
Before social media, you may have used traditional mediums<br />
such as The Irish Times or Irish Independent; however with social<br />
media dominating the world, a well-placed interaction on the right<br />
platform serves wonders here. While Facebook appears to still be<br />
the platform of choice, Twitter also dominates business models,<br />
while Instagram & Snapchat suit the younger, more carefree folk.<br />
Chicago has a huge Irish population, and from my experience,<br />
many are involved in various groups and clubs, with one strong<br />
presence being the Chicago arm of the Irish Georgian Society.<br />
The Irish Consulate arranges various social gatherings too, with<br />
St. Patrick’s Day being a busy time on their calendar.<br />
Finally The National Association of REALTORS ® has a very strong<br />
global presence in Ireland. Claire Killen of Emerald Real Estate is<br />
currently the President’s Liaison to Ireland and born and bred here.<br />
Claire’s tireless work over the past number of years has opened so<br />
many doors on both sides of the pond and Claire I am sure would<br />
be delighted to assist anyone looking to open links with Ireland.<br />
Surveyors Ireland, where there is a full members directory. It is<br />
also possible to track agents down as every property for sale in<br />
Ireland is listed on one of the following websites: www.myhome.<br />
ie or www.daft.ie. With only 25,000 properties for sale in Ireland<br />
today it is not too hard to track someone down!<br />
Q: What is the best resource for learning about investment<br />
opportunities in Ireland?<br />
A: Ireland is a committed member of the European Union<br />
and provides companies with guaranteed access to the<br />
European market. Following Brexit, Ireland is the only English<br />
speaking country in the Eurozone and provides an ideal hub for<br />
organizations seeking a European base. www.idaireland.ie offers<br />
all types of advice and information for those wishing to set up<br />
business here; it is a government-run agency integral to ensuring<br />
Ireland remains a pivotal part in international trade.<br />
The return on real estate investment in Ireland is good at the<br />
moment, with many foreign investors favoring our main cities or<br />
towns. Both residential & commercial investments are producing<br />
good yields, with rents in residential sectors for well-located<br />
properties at an all-time high. Both IPAV & SCSI are good websites<br />
to watch for news on investments, as are either of our broadsheet<br />
national titles, The Irish Times & Irish Independent. Enterprise<br />
Ireland is an Irish state economic development agency focused on<br />
helping Irish-owned business deliver new export sales — you are<br />
very welcome to contact them to assist businesses here.<br />
Jim Kinney from Chicago Association of REALTORS ® also has<br />
strong relationships with many of the main agencies and the<br />
various organizations and again, would be delighted to help.<br />
Please feel free to contact me: briandempsey@dng.ie. I would<br />
take great pleasure in helping bridge the gap and put any of you<br />
in touch with the right person here in Ireland.<br />
Q: Ireland does not have buyer’s agencies. How can those looking<br />
to invest in Ireland from the USA adapt to have the most success?<br />
A: While the belief is there are no buyer’s agents here, technically,<br />
that is not the case. For some time, it has been hard to make a<br />
living here as a buyer’s agent; however that has now changed,<br />
with more and more appearing again.<br />
Nonetheless, we see things changing further regarding the<br />
MLS. Demand is strong, understanding is good and we think<br />
the time is right to perhaps bring Irish MLS to the next level,<br />
ideally in conjunction with the various institutes where we hold<br />
membership. However, while an official MLS is not currently in<br />
place, all agents here are very receptive to assistance with a sale<br />
and I have no doubt would be very responsive to a call or email<br />
offering a positive referral in return for some remuneration.<br />
Contacting an agent is easy. Most are members of The Institute<br />
of Professional Auctioneers & Valuers or the Society of Chartered<br />
www.ChicagoREALTOR.com 37
Government Affairs<br />
Legislative Update<br />
Add your building to our<br />
pet-friendly registry.<br />
Advocacy that works — it’s our creedo. We put together some<br />
updates of the year so far, as well as what’s to come.<br />
As always, we invite you to join us at CAR headquarters on the first<br />
Tuesday of the month at our Coffee with the GADs discussions.<br />
“RENT CONTROL DOESN’T IMPACT ME.”<br />
THINK AGAIN!<br />
Rising rents in various booming areas have created a frenzy of<br />
initiatives geared toward creating affordable housing. One of the<br />
most popular, yet less understood initiatives, is rent control — a<br />
cap on how much a landlord can charge in rent. The threat of rent<br />
control is very real, and we are fighting very hard to<br />
keep it from becoming our reality. Here’s what you<br />
need to know.<br />
On its face, rent control sounds like an obvious cure<br />
to rising rents. Unfortunately, there are deeply flawed<br />
and destructive consequences of the policies. In fact,<br />
rent control has been discredited by economists<br />
from both sides of the political aisle, reinforced in<br />
numerous economic studies for decades.<br />
A staggering 93% of economists agree that rent<br />
caps decrease the quantity and quality of affordable<br />
housing.<br />
On an economic basis as well as from a fiscal position as it relates<br />
to the property tax base, the results are clear: rent control would<br />
be a disaster for Chicago and Cook County. For one, rent control<br />
scares investors and housing developers away. Why would<br />
someone build a new apartment building where they cannot charge<br />
market rent and make money on such a vast financial investment?<br />
Rapid sales of buildings in advance of the implementation of rent<br />
control could lead to a reduction in value. This causes a reduction<br />
in the taxable base and thereby, an increase in tax rates for<br />
everyone, not to mention a reduction in available housing stock.<br />
Existing property owners often convert their investment properties<br />
into condominiums, so they avoid the imminent inability to charge<br />
appropriate market rent. If a cap on how much a property owner can<br />
charge exists, how will they be able to cover increasing property<br />
taxes? How will they afford improvements to the apartment?<br />
Conversion seems like the only option for desperate property<br />
owners who can no longer afford the maintenance or tax bill. What<br />
happens when apartments are converted? Fewer rental housing<br />
options are left for tenants. When the supply goes up and the<br />
demand rises, prices react accordingly — it’s economics 101.<br />
Even worse is a possibility for a black market of sorts, where even<br />
fewer low-income tenants have access to the affordable units. It’s<br />
not unusual to see rent controlled units pop up on Craigslist at<br />
closer to market rents. The tenant of the stabilized unit then pockets<br />
the extra rent. In the end, the very people this policy is supposed<br />
to help are hurt the most, with fewer housing options, and the ones<br />
available are in disrepair.<br />
If you’re thinking rent control doesn’t impact you as a noninvestment<br />
owner, think again. In Senator Mattie Hunter’s bill<br />
(SB 3512), the legislation has an income-based proposal that would<br />
tie rent control to household income. In other words, there are two<br />
tiers of qualifying tenants.<br />
A staggering 93%<br />
of economists agree that<br />
rent caps decrease the<br />
quantity and quality<br />
of affordable housing.<br />
Only subsidized housing, owner-occupied housing with less than<br />
six units, and commercial units in mixed-use properties are exempt.<br />
If you decide to rent out your private condo or single-family home,<br />
they are fair game for rent control if a tenant meets a certain income<br />
threshold and passes other regular screening processes.<br />
While rent control is good politically for many, it remains poor<br />
public policy. To make Chicago more affordable, we must build<br />
more affordable rental housing. In reality, it’s not so simple. So<br />
rather than strictly opposing the concept, we have recommended<br />
a series of alternatives in lieu of rent control proposals, including<br />
enacting comprehensive building code reform utilizing affordable<br />
materials and new technologies; developing comprehensive<br />
zoning reform with a focus on density where it can be sustained;<br />
encouraging adaptive reuse of long-abandoned spaces like coach<br />
houses and English basements; and compelling pro-development<br />
and construction changes to inclusionary zoning ordinances such<br />
as the Affordable Requirements Ordinance to expand the program<br />
to allow affordable units to built outside of the currently limited<br />
zones. The solution, thus, is to increased and incentivize affordable<br />
rental stock, rather than cranking up regulations to ultimately<br />
further reduce supply.<br />
38 Chicago REALTOR ® <strong>Magazine</strong>
We will continue to keep you updated on this issue as it evolves.<br />
AN UPDATE ON JUST CAUSE EVICITIONS<br />
The Lawyers’ Committee for Better Housing has intensified<br />
its efforts in Chicago, pursuing some forms of eviction reform,<br />
including “Just Cause Evictions” in the Mayor’s Housing Plan.<br />
Earlier in the year, a proposal from Lawyers’ Committee for Better<br />
Housing and Alderman Joe Moreno was being proposed to create<br />
just cause evictions. Thanks to efforts of Illinois and Chicago<br />
REALTORS ® , our strategic partnership with the Coalition of<br />
Organized Real Estate and other groups, massive opposition was<br />
mounted against the proposal at an introductory meeting held at<br />
the Alderman’s Office. CAR will not negotiate and will continue to<br />
oppose any efforts in this direction.<br />
ARE YOU A PET-FRIENDLY LANDLORD?<br />
GET ON THE LIST!<br />
In coordination with REALTORS ® involved with Real Estate to<br />
the Rescue (RTTR), we are soliciting property managers whose<br />
buildings are pet friendly. RTTR is a supporter and promoter of<br />
the no-kill sheltering movement.<br />
Based on their research, each year tenants are put in the<br />
unenviable position of choosing a place to live or keeping their<br />
pet. To make the choice easier and to enhance their mission,<br />
which support only those rescues and shelters who adhere to this<br />
sheltering philosophy and openly support no kill, they have asked<br />
CAR to work with them to develop a list of pet-friendly property<br />
management companies.<br />
On a quarterly basis we will share our list with RTTR, who in<br />
turn, will share it with shelters. The list will also have public<br />
access on our website. If you as a property manager and have<br />
a building which is pet friendly, get on the list! Please visit<br />
ChicagoREALTOR.com/pet-registry to be added to our list!<br />
Contact bbernardoni@chicagorealtors.com for more details.<br />
DID YOU KNOW? YOU SHOULD...<br />
You cannot deny rental housing to someone based on their use<br />
of a Housing Choice Voucher (Section 8 Voucher). In the Cook<br />
County Human Rights Ordinance, a person’s “source of income” is<br />
a protected class. In other words, if a tenant has passed all normal<br />
screening procedures and wants to use a Housing Choice Voucher<br />
as a method of payment of rent, you cannot deny them housing<br />
based on their voucher.<br />
To learn more about the Housing Choice Voucher Program and<br />
how to get involved please see the Chicago Housing Authority’s<br />
website.<br />
BRIAN A.<br />
BERNARDONI<br />
Senior Director of<br />
Government Affairs<br />
and Public Policy<br />
BETH<br />
WANLESS<br />
Director of<br />
Government Affairs<br />
Join us for...<br />
First Tuesday<br />
of the Month<br />
®<br />
REALTOR Building<br />
430 N. Michigan Ave., Suite 800 | 9 A.M. to 11 A.M.<br />
www.ChicagoREALTOR.com 39
BOYS & GIRLS CLUB CARNIVAL<br />
We were thrilled to partner with the True Value Boys & Girls<br />
Club to throw our third annual back-to-school carnival for<br />
over 200 kids. We enjoyed face painting, bounce houses,<br />
cotton candy and lots of fun games! Chicago REALTORS ®<br />
also gave out over 250 backpacks filled with school supplies<br />
for the upcoming year. Learn more about our partnership<br />
on ChicagoREALTOR.com.<br />
40 Chicago REALTOR ® <strong>Magazine</strong>
YPN BOYS & GIRLS CLUB<br />
VOLUNTEER DAY<br />
Thank you to our YPN Committee<br />
for volunteering their time to hang out<br />
with the kids at the Boys & Girls Club!<br />
We played games like dodgeball and<br />
tug-of-war, and competed in sack races.<br />
We also hosted an ice cream social!<br />
Photos by CAR staff<br />
www.ChicagoREALTOR.com 41
John Kmiecik, Century 21 Affiliated,<br />
is honored for reaching the $ 50,000<br />
investment level in the RPAC Hall of Fame.<br />
Mark Kmiecik, John Kmiecik, Century 21 Affiliated, Nancy Suvarnamani,<br />
Century 21 S.G.R., Inc., Sonia Anaya, America Real Estate, Inc., Gaspar Flores, Gaspar<br />
Flores Jr., Su Familia Real Estate, Inc., and Zeke Morris, EMA Realty & Management<br />
Frank Williams, F.J. Williams Realty,<br />
Marki Lemons Ryhal, EXIT Strategy Realty, and<br />
Gaspar Flores, Su Familia Real Estate Inc<br />
<strong>2018</strong> RPAC WHITE SOX OUTING<br />
Teamwork makes the dream<br />
work — in baseball and in<br />
our industry! Thank you to<br />
the Chicago REALTORS ®<br />
who invested $ 100 in RPAC<br />
and joined us for a night<br />
at Guaranteed Rate Field.<br />
We enjoyed food and drinks<br />
on the CIBC Fan Deck as<br />
the White Sox defeated<br />
the Cleveland Indians. The<br />
fundraiser was a home run!<br />
Drussy Hernandez,<br />
Compass Real Estate<br />
Gail Spreen, Related Realty,<br />
Karen Randich Stone, Related Realty Chicago,<br />
Kevin Van Eck, @properties, and<br />
Kevin Kelly, Jameson Sotheby’s International Realty<br />
Chicago REALTORS ® meet with Representative<br />
Brad Schneider led by FPC Matt Silver.<br />
Brace Clement, Broyce Clement, Michelle Mills Clement,<br />
Chicago Association of REALTORS ® , Sonia Anaya, America<br />
Real Estate, Inc., and Zeke Morris, EMA Realty & Management<br />
Sheena Baker, RE/MAX Action, Sarah Ware, Ware Realty Group, LLC,<br />
Nykea Pippion-McGriff, Dream Town Realty, Antonia Mills,<br />
Antonia L. Mills, Attorney, and Tracey Williams, A.R.E. Partners, Inc.<br />
Kyara Garza, Garza Law Group, Patrick Healy, Citywide Title Corp.,<br />
and Scott Hulsey, Cross Country Mortgage<br />
42 Chicago REALTOR ® <strong>Magazine</strong><br />
Zeke Morris, EMA Realty & Management,<br />
Chicago with and Adrena Illinois Morris REALTORS and Andra ® meet Morris with<br />
Representative Mike Quigley led by FPC Dave Hanna.
Photos by C.A.R. staff<br />
The Chicago White Sox score!<br />
Gaspar Flores Jr., Su Familia Real Estate, Inc.<br />
Mark Kmiecik and John Kmiecik, Century 21 Affliated<br />
Adam Max, Realty Advisors North, Van Pham Pezzello,<br />
Kim Howard, Tommy Choi, Keller Williams Chicago <strong>–</strong> Lincoln Park,<br />
Karla Mina, Coldwell Banker Residential, and<br />
Dave Naso, Keller Williams Chicago <strong>–</strong> Lincoln Park<br />
Maurice Hampton, Centered | RCG<br />
Michelle Mills Clement, Chicago Association<br />
of REALTORS ® and her son Broyce Clement<br />
Frank Williams, FJ Williams Realty,<br />
John Kretchmar, Invitation Homes, and<br />
Zeke Morris, EMA Realty & Management<br />
Matt Difanis, Illinois REALTORS ®<br />
and son Gabe Difanis<br />
Dave Mitchell, Brittany Bussell, Kristina Betancourt<br />
and Kevin Van Eck, @properties<br />
www.ChicagoREALTOR.com 43
Heather Cave, National MI, David Holmes, Oak Leaf Community Mortgage,<br />
Jason Wroble, National MI, and Fernando Rizzo, Neighborhood Loans<br />
Chris Pezza, Miller Chicago, LLC, Michael Bencks,<br />
Neighborhood Loans, and Brett Pollak, Calculated Risk Advisors LLC<br />
Rick Templeton, Darryl Armstrong, Jerry Jackson, and<br />
Allen Armstrong, Coldwell Banker Residential<br />
Julie Dorger, Eric Marcus, and Pamela Saul,<br />
Keller Williams Chicago <strong>–</strong> O’Hare<br />
Allison Malzone and<br />
Bill Markoutsas, Attorney’s Title<br />
Guaranty Fund, Inc.<br />
CAR’S 111 TH ANNUAL GOLF CLASSIC<br />
Carol Lis, and John Lesner,<br />
Old Republic Title<br />
Colin Hebson, Dream Town Realty, Ryan Preuett,<br />
David Mitria, Jameson Sotheby’s International Realty,<br />
and Brendan Murphy, Dream Town Realty<br />
Mike Affeldt, guest, and Kevin Hinton,<br />
Keller Williams Chicago - Lincoln Park<br />
SPONSORED BY:<br />
44 Chicago REALTOR ® <strong>Magazine</strong>
Photos by C.A.R. staff<br />
Anthony Marinaccio, Suzan Bramson,<br />
Barbara Steinhauser, and Jim Kinney, Baird & Warner<br />
Al Medina, Redfin Corporation, Ross Neag,<br />
Lichter Realty, Inc., Dario Medina,<br />
Redfin Corporation, and Patrick Flickinger,<br />
Berkshire Hathaway HomeServices<br />
Joe Kenny, Realty Executives Midwest,<br />
Dave McClintock, Three Rivers<br />
Association of REALTORS ® , and<br />
Pat Delessandro, Coachlight Realty<br />
Michelle Mills Clement,<br />
Chicago Association of REALTORS ® , and<br />
Joe Siciliano, Compass Real Estate<br />
Greg Viti, Mimi Mack, Terry Schwatz, and<br />
Andrew Harrell, Jameson Sotheby’s International Realty<br />
Dan Gjeldum, Guaranteed Rate<br />
Ryan Horvath, Citywide Title, and<br />
Dale Phelps, Supreme Lending Corporate<br />
Penny Wolf, guest, Cathy Italia,<br />
Christina Palkovic, Italia & Palkovic LLC, and<br />
Darlene Kosin, Greater Illinois Title Company<br />
Brett Pollak, Calculated Risk<br />
Advisors LLC, and Michael Bencks,<br />
Neighborhood Loans<br />
Kris Briggs, Klein, Daday, Aretos and<br />
O’Donoghue, LLC, Justin Oliver, Matt Farrell,<br />
and Kelly Smith, Urban Real Estate<br />
Dan Gjeldum<br />
dan@rate.com<br />
www.ChicagoREALTOR.com 45
Chris Pezza, Miller Chicago, Chris Oswald, Greater Illinois Title,<br />
Gaspar Flores Jr., and Juan Ramirez, Su Familia Real Estate<br />
Florinda Sanchez, Nikki D’Ottavio, and Drew O’Callaghan, Neighborhood Loans<br />
Veronica Odom, Coldwell Banker, Teneshia Howze,<br />
and Jessica Soetan, Premier Midwest Realty<br />
Joel Schaub, and Jim Eboli,<br />
Guaranteed Rate<br />
<strong>2018</strong> YPN SUMMER MIXER<br />
Joe Howard and Kim Howard,<br />
Keller Williams Chicago - Lincoln Park<br />
Melinda Cabanilla, Core Luxury,<br />
and Sandesh Bilgi, Better Homes<br />
and Gardens Real Estate<br />
Alex Kruser, and Ami Bumia, Fulton Grace<br />
Realty, with Julie Braglia, EClick Lending<br />
SPONSORED BY:<br />
46 Chicago REALTOR ® <strong>Magazine</strong>
Michael Bencks, Neighborhood Loans,<br />
and Tommy Choi, Keller Williams<br />
Chicago <strong>–</strong> Lincoln Park<br />
Pearl Park, Coldwell Banker, Mo Dadkhah and<br />
Ruby Park, Main Street Real Estate Group<br />
David Ferrel, MRED, Jessica Barrera,<br />
West Town Realty, and Dave Naso,<br />
Keller Williams Chicago <strong>–</strong> Lincoln Park<br />
Linda Scott, Wintrust, Judy Gibbons,<br />
Jameson Sotheby’s International Realty,<br />
and Joy Rooker, Bridge International<br />
Kristen Smith, Dave Perry-Miller Real Estate,<br />
Niko Apostal, Keller Williams Chicago <strong>–</strong> Lincoln Park,<br />
Krista Clark, Century 21 Signature Real Estate, and<br />
Tommy Choi, Keller Williams Chicago <strong>–</strong> Lincoln Park<br />
Gwen Goro, Grace Goro Kaage, @properties,<br />
and Julie Braglio, EClick Lending<br />
Michaela Gordon, @properties,<br />
and Lindsey Schendel,<br />
Main Street Real Estate Group<br />
Craig Easly, @properties, and<br />
Kurt Kessler, Compass Mortgage<br />
Tierra Jenkins, and Iesha Marshall,<br />
Brakie Realty Inc.<br />
Julia Brenner, @properties,<br />
Christine Schaub, Guaranteed Rate, and<br />
Stephanie Scott, Guaranteed Rate Affinity<br />
Ami Bumia, Antoine Perry, Christine Rodriguez, and<br />
Hughes N’Cho-Allepot, Fulton Grace Realty<br />
Paul Ochmanek, Paul Ochmanek Legal Office,<br />
David Piatek, The Federal Savings Bank,<br />
and Kristen Kulinczenko, Chase<br />
Photos by Marcello Rodarte, Fine Art Photography<br />
Jonathan Raley, and Justin Sigmund,<br />
360 Home Connect<br />
www.ChicagoREALTOR.com 47
MAKE YOUR<br />
CAREER DREAMS<br />
COME TRUE.<br />
APPLY FOR SCHOLARSHIPS<br />
Chicago Association of REALTORS ® Foundation was founded to help assist students in funding<br />
their educational needs.<br />
• Designation Scholarships<br />
• REALTORS ® Real Estate School Scholarships<br />
• Young Professionals Network Scholarships<br />
• NEW - Matt Silver Advocacy Endeavor<br />
Scholarship<br />
• The Xavier O. Joy Scholarship<br />
• Higher Education Scholarships<br />
• Veterans Real Estate Scholarships<br />
• Zeke Morris Scholarship<br />
The Matt Silver Advocacy Endeavor Scholarship provides CAR members the ability to see first-hand the lobbying<br />
efforts State Legislative Contacts (SLC), Federal Political Coordinators (FPC), the Government Affairs Directors and<br />
REALTOR ® members make on behalf of their fellow colleagues. Scholarship funds are awarded to minority men and<br />
women who are interested in participating in CAR’s advocacy efforts and are first time attendees to the annual Illinois<br />
REALTORS ® Lobby Day and NAR Legislative Meetings in Washington D.C.<br />
Scholarship awards are up to $ 500 per candidate for Illinois REALTORS ® Lobby Day (April) and/or up to $ 2,000 for<br />
NAR Legislative Meetings (May). Candidates must select one event only and can only utilize this scholarship one<br />
time. Candidates will be reimbursed for travel expenses, conference registration and hotel accommodations.<br />
Applications are accepted and awarded on an ongoing basis throughout the year.<br />
www.ChicagoREALTOR.com/Foundation
UPCOMING COURSES<br />
OCTOBER<br />
11 th<br />
TAX STRATEGIES<br />
FOR THE REAL ESTATE<br />
PROFESSIONAL<br />
9:30 AM <strong>–</strong> 12:00 PM<br />
MEMBER TUITION $ 15<br />
OCTOBER<br />
16 -17<br />
ESSENTIALS OF<br />
PROPERTY MANAGEMENT<br />
9:00 AM <strong>–</strong> 4:00 PM<br />
MEMBER TUITION $ 119<br />
NOVEMBER<br />
8 + 9<br />
GREEN DESIGNATION<br />
9 AM <strong>–</strong> 5 PM<br />
MEMBER TUITION: $ 280<br />
What can a smart home thermostat<br />
save them on their heating bills?<br />
What are the best energy efficient<br />
products out there? Find out when<br />
you earn your Green Designation.<br />
NOVEMBER<br />
26 -28<br />
#<br />
FICO MANAGING FICO BROKER<br />
PRE-LICENSE TOPICS<br />
8:30 AM <strong>–</strong> 6:30 PM<br />
MEMBER TUITION: $ 230<br />
Review the most cost-effective<br />
ways to preserve properties, and<br />
learn proper management skills and<br />
OCTOBER<br />
15 th<br />
FICO<br />
PRICING STRATEGY<br />
ADVISOR CERTIFICATION<br />
9:00 AM <strong>–</strong> 4:30 PM<br />
MEMBER TUITION $ 119<br />
Attain the most sought-after<br />
70˚<br />
designation that will put you one<br />
step ahead of your clients. Determine<br />
their needs and attract new buyers<br />
through our two-day course.<br />
preventive maintenance techniques.<br />
#<br />
FICO<br />
OCTOBER<br />
23 rd<br />
MILITARY RELOCATION<br />
PROFESSIONAL<br />
CERTIFICATION<br />
70˚<br />
NOVEMBER<br />
15-16<br />
AC<strong>CR</strong>EDITED BUYER’S<br />
REPRESENTATIVE<br />
DESIGNATION<br />
9 AM <strong>–</strong> 5 PM<br />
TAX BILL<br />
MEMBER TUITION: $ 280<br />
DECEMBER<br />
3&4<br />
REAL ESTATE NEGOTIATION<br />
EXPERT CERTIFICATION<br />
9 AM <strong>–</strong> 4:30 PM<br />
MEMBER TUITION: $ 275<br />
Elevate your negotiation game with<br />
this two-day certification! Learn the<br />
tips and tools you need to be skillful<br />
advocates for your clients.<br />
8:30 AM <strong>–</strong> 5:00 PM<br />
MEMBER TUITION: $ 145<br />
Most veterans and active service<br />
military members are unaware of<br />
their home loan options. Be the<br />
broker who goes above and beyond<br />
for your client.<br />
Register at<br />
www.Chicago<br />
REALTOR.com/<br />
Education<br />
www.ChicagoREALTOR.com 49
4 Chicago REALTOR ® <strong>Magazine</strong>