Deaton Investment Real Estate & The Wake County Apartment Association

Wednesday, May 28, 2008

Someone gets it has a good article about mid-size apartment investors being able to capitalize on the reduction in competition in the apartment investment market.

We're finding it harder and harder to get this point across to the majority of potential investors. Again, sellers are holding firm to prices because their rents are up and their units are filled. As a result, buyers are surprised to see the lack of "blood in the water" given the underlying current of doubt in the economy. There is no question we're in a down cycle. Adding chum to the pool though, is the complete lack of dependable data as to when this cycle might switch directions.

Have any thoughts?

Wednesday, May 21, 2008

How to stop Growth 101

Course Description
This course is being taught by Your Mayor, Charles Meeker, who will lead a panel of your instructors (consisting of his close friends on the City Council) through aimless discussions about how new growth in Raleigh is detrimental to its longevity as one of the nation's premier mid-major metros. Because building new buildings, apartments, homes and commercial centers increases the tax base and encourages more of our well-educated work-force to stay put and provide regional employers with qualified staff and brain-power, the area needs to do all it can to curb this abhorrent trend toward regional success and outstanding livability.

This course will also teach you to waste countless tax payer dollars on fruitless, personal pet projects, such as banning garbage disposals and eliminating affordable housing in the city's urban districts.

Credit hours
Course offers zero credit hours because quite frankly, it's worthless.
The student is expected to have read the following course articles by the beginning of the semester:

Raleigh taxes to increase.

Impact fees on the way up.

Council majority favors higher impact fees

Raleigh panel calls for phasing in fee hikes. (Or, Mayor says "Heck with panel, do it all at once.)

Council wants to see bill voted down (Or, Inspectors should be allowed free reign over every rental property at all hours without any cause. Except the ones owned by City Council members.)

Thursday, May 15, 2008

New online source for advertising apartments. Sort of. has surfaced recently(?) as a new way to list available units. It looks like they're off to an okay start and taking a national approach. Still, I get the impression by surfing around the site that its development may have slowed at some point. The FAQ section is empty and for a service aiming to be as robust as possible, I couldn't locate any demographic information, maps or additional accouterments. For example, I searched duplexes and quads in Raleigh and landed on this: "Currently there are no duplexes-and-fourplexes-for-rent in Raleigh, NC. Be the first to add a listing. Click here to add a listing"

Really? No one has any vacant units? Maybe we need to let this site brew a bit longer.

Wednesday, May 14, 2008

Multi-family sees new life in credit crunch

I don't mean it can be found in a bunch of media outlets; I mean one article says one thing and the other says the opposite. You don't have to go far too find media quoting experts that say the housing market will actually hurt apartment owners. The latter articl says the decline in credible buyers will push rents in most major metros.

I guess what lends credibility to this version is that some Washington D.C. figureheads are weighing in. Portland, OR was the subject city in this case. People like it because it's weird. At least that's what the t-shirts say.

Anyway, here's another one.

The News & Observer piece, you'll find, really says nothing. In one column, Hagel says previous periods of over supply were thwarted by developer discipline. Now it says developers are cautious, toeing the line, if you will. To me, that implies that builders are nervous. Truthfully, the over-supply subject has been bucking for a while now and the N&O couldn't wait any longer to get it out of the corral, regardless of whether or not it was time to ride.

Great news for Eastern North Carolina

The Global Transpark has finally hit the map. And so has Kinston.

1,037 jobs to be created as part of relocating airplane parts company. I bet they'll need a place to live.

Wednesday, May 7, 2008

More on foreclosures from WSJ Online and Trulia

The Wall Street Journal digital edition sat down with the CEO of Trulia for an overview on foreclosure buying.

Anyone finding blood in the market yet?

Investment opportunities abound?


Turns out our state's small towns are good for things other than Mayberry references. Site Selection magazine, a top economic development publication that has long been the favorite of corporate relocation and asset managers in large commercial real estate firms, recently listed the country's top "micropolitan" markets. In other words, small towns or regions that have serious financial growth potential. North Carolina has 11 of them, more than any other state.

These areas, Thomasville-Lexington being #1, may have some great multi-family investment potential. If they continue to attract jobs and end up on lists like this, I would start keeping an eye on them.

Monday, May 5, 2008

More on the the foreclosure front has a very comprehensive piece about investing in foreclosures in today's environment. Nothing real ground breaking here but a very good overview and some nuggets of wisdom well worth your time.

Anyone working the foreclosure market? We're seeing some pop-up in the multi-family sector.