Need some inspiration?

Need some fresh ideas for operating and marketing your properties? Want to recapture some of the passion for your career? You may want to consider registering for Toni Blake's upcoming presentation on January 20, 2009, with dinner sponsored by the Triangle Apartment Association. Toni Blake is an international speaker, author and comedienne. Having invested more than 28 years of her life in multifamily housing, she tours over 50 cities each year inspiring thousands of industry professionals. This promises to be an exciting, entertaining and rejuvenating event.

"Good Year" will be a relative term in 2009

The December issue of Multi-Housing News features a ranking of metro areas with the best apartment market conditions as we limp into 2009. At number six on the list is Raleigh, behind Washington, D.C., Denver, Minneapolis, Fort Worth and San Francisco. The statistics, provided by M/PF Yieldstar, are not predicting a banner year in the Triangle, but they suggest that Raleigh is an area that will weather the economic storm better than most. "Flat is pretty darn good this year-that can put a metro area in the top tier of all U.S. markets," according to Greg Willet of the Yieldstar research firm. Despite job losses and a growing shadow market, vacancies in the Triangle are expected to increase by less than one percent.

Raleigh's Growth Plan

The City of Raleigh recently released it's latest comprehensive growth and development plan through the year 2030. You can view a copy of the plan at the City Website. Or for those with no patience, (like me) you can go straight to the executive summary. Additionally, the City will be hosting several briefings and informational sessions for the public to ask questions and comment on the plan. It's not often you have the opportunity to impact your City's development first hand, seize the opportunity.

Class, today we learn a new word, "Re-Default"

Those in the mortgage business are becoming familiar with this word. In a report released today by the Office of The Comptroller of the Currency, more than half of the mortgages that were modified at the beginning of 2008 fell back into default within six months. That's right, more than half of the people who had their mortgages adjusted to make them more 'affordable' are now in re-default, meaning they are more than 30 days behind on payments.

“After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent,” the Comptroller said in remarks at the Office of Thrift Supervision’s National Housing Forum today. These borrowers might have had their interest rates lowered, principal balances reduced, or a number of other measures taken to lower their payments, but these efforts seem to have delayed the inevitable. Read the full release and see for yourself.

Back to the drawing board?

More market information...

Our good lender friend, Rich Paravella with Equity Services, sent us a general update about things in his world and granted us permission to share it with the rest of the world. Take it away Rich...

"Here's a brief update of what's going on. I've attached 2 articles, but will sum it up here for you:

Interest rates have come down recently - but mainly for borrowers with strong credit, good equity, and documentable income. Credit standards have tightened, which has made it more expensive - often prohibitively so - for many individuals to get a loan. Generally, individuals need a credit score of 620 to qualify for a loan, but they have to pay a fee equivalent to about
2.75 percent of the loan amount, which can translate into a rate of about 1
percentage point higher than the best rate available. For borrowers on
the fringe - low credit score, erratic documentation, high debt loads, et cetera - it may be possible, but that financing may be cost prohibitive in those cases.

Also, there is speculation about the gov't in effect, subsidizing interest rates at 4.5%. This is NOT official, rather just a talking point at present. If something like this occurs, it would likely be for Owner Occupied Purchases only - Not refi's.


http://www.nytimes.com/2008/12/04/business/04refi.html?ref=yourmoney

http://online.wsj.com/article/SB122833771718976731.html

November market report

Well, things aren't much different than last month. The lights are still on and people are still investing in apartments. Just not as many.

Oddly enough, we set a record for quickest close in November. An Investor Network member who recognized a property close to others he currently owns, closed 2510 New Hope Church, a duplex, in less than a week from its initial announcement to the network.

In any market, it's not at all typical to get a property purchased in that sort of time frame, especially if going through the traditional channels. Not only are down payment requirements changing dramatically, but the entire loan process is under severe scrutiny, challenging closing dates, documentation, financial history and above all, patience. Nevertheless, there are reasons we are at this point and today's activity is a natural result. The market is recycling itself. And like an aircraft carrier, it takes a long time to turn around.

Everyone wants to know where the bottom is. We like to say the bottom is well, at the bottom. It doesn't matter where really and if this economy has demonstrated anything, it's that there is no concrete number, predictable activity or economic buoy that will signal the turning point. All that we should focus on now is weathering the storm by making careful decisions based on the squalls that lie ahead. There should be plenty more to tackle come 2009.

Deaton sales this month

2336 Lyon Street (outside listing) - Inside the Beltline Single-Family rental
List: $334,900 / Sold: $313,000
Total rent: vacant

2511 Stadium - Durham Duplex
List: $128,000 / Sold: $118,335
Total rent: $675

4405 Brockton - Mini-City area quadraplex
List: $285,000 / Sold: $285,000
Total rent: $1,600

203 S. Walker - Brick quad in Downtown Cary
List: $285,000 / Sold: $250,000
Total rent: $2,805

2510 New Hope Church - Well-maintained Duplex near Brentwood
List: $154,000 / Sold: $145,000
Total rent: $525

Regional Multi-family Sales this month

410 N. Guthrie Street - Durham Duplex
List: $17,500 / Sold: $16,000
Reported total rent: not reported*

327 Ridgecrest Road - Cary Triplex
List: $155,000 / Sold: $179,431
Reported total rent: $555

139 Rollins Acres Lane - Lillington Duplex
List: $39,900 / Sold: $36,000
Reported total rent: vacant

630 Middle Street - Durham Quadraplex
List: $124,400 / Sold: $110,000
Reported total rent: $1,800

100 W. T. - Selma Quadraplex
List: $219,900 / Sold: $205,000
Reported total rent: not reported

626 Middle Street - Durham Duplex
List: $14,900 / Sold: $14,000
Reported total rent: not reported

1916 Tischer Road - Raleigh Quadraplex
List: $238,000 / Sold: $228,000
Reported total rent: not reported

103 S. Maple Street - Durham Duplex
List: $19,900 / Sold: $17,000
Reported total rent: not reported

2211 S. Roxboro Street - Durham Duplex
List: $87,500 / Sold: $85,000
Reported total rent: not reported

500 Cascade Avenue - Eight units in Rocky Mount - forclosure
List: $179,000 / Sold: $150,000
Reported total rent: not reported

1702 Gunter Street - Durham Duplex
List: $34,900 / Sold: $25,000
Reported total rent: not reported

2000 Southgate Street - Durham Duplex
List: $49,900 / Sold: $37,500
Reported total rent: not reported

* Deaton does not confirm rents. They are reported by the listing agent