tag:blogger.com,1999:blog-20200543188350340732024-03-14T06:31:08.160-07:00The Multi-Family Marketplace"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.comBlogger175125tag:blogger.com,1999:blog-2020054318835034073.post-61283687460502549512012-07-25T05:27:00.002-07:002012-07-25T05:27:15.128-07:00Deaton Newsletter - July 2012Source: <a href="http://www.deaton.com/Upload/Deatonnews_July12web.pdf" target="_blank">Deaton Investment Real Estate Report</a><br />
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The latest edition of Deaton Investment Real Estate's Newsletter is available at the link above.<br />
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<strong><u>In this edition:</u></strong><br />
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-Multi-Family News: Positive and Informative<br />
Read our collection of articles highlighting some of the exciting developments within the multi-family real estate market. <br />
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-A sample of our current listings<br />
<br />"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com44tag:blogger.com,1999:blog-2020054318835034073.post-27082809125761048552012-06-19T12:46:00.002-07:002012-06-19T12:46:46.877-07:00Front Yard Parking Ban ApprovedRaleigh, N.C. — Raleigh city leaders on Tuesday approved an ordinance that would prohibit people in certain parts of the city from parking their vehicles in front yards.<br />
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For years, the City Council has discussed a citywide ban but has never been able to reach a decision.<br />
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The vote Tuesday is a compromise that will concentrate on certain areas, such as southwest Raleigh near North Carolina State University.<br />
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That's where the city has seen some of its worst offenders, partially because of the number of college students renting homes in neighborhoods where parking on the street requires a city permit.<br />
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To read the full article click here - <a href="http://www.wral.com/news/local/story/11224367/">http://www.wral.com/news/local/story/11224367/</a><br />
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<br />"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-11314832277080944742012-05-15T06:11:00.002-07:002012-05-15T06:11:34.739-07:00You think Raleigh's rental market is hot...look at San FranciscoFrom the San Francisco Chronicle - Author: Carolyn Said <br />
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/05/09/BU551OD1PL.DTL<br />
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Michael Austin and Emily Morrison aren't highly paid tech workers. He's an actor with a day job as an administrative assistant; she's an arts teacher at CalShakes. Newly engaged, they've been seeking an apartment in San Francisco to move into together. <br />
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"We started combing Craigslist, and when we filtered by the neighborhoods we want and our maximum price of $2,000 for a two-bedroom, there is almost nothing," Austin said. "It was just shocking to me."<br />
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They broadened their search to the East Bay. Even there, "You show up at an open house and it's really intimidating," he said. "There are 20 other couples already ready to apply." <br />
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They decided to "get creative and get off the Craigslist merry-go-round," he said, posting their search on Facebook and placing their own Craigslist "apartment wanted" ad. A Facebook friend shared a tip on an Oakland apartment that may work out for them. <br />
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Their story is typical of San Francisco's overheated rental market, where well-compensated tech workers are flocking to desirable neighborhoods, driving up prices and locking out those who aren't big earners. The chichi areas, which also are closest to convenient transit, are hardest to break into. And the competition is spilling over into the East Bay. <br />
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"The Bay Area is growing in an extraordinary, unprecedented way," said Sarah Bridge, owner of Novato's RealFacts, which tracks apartment prices nationwide at buildings with 50 or more units. <br />
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"It has to do with job growth," she said. "It's a gold-rush mentality where the best and the brightest come to the Bay Area. The trend is for Gen Y folks, which is mostly what employers are hiring, and that particular generation has a preference for the urban core."<br />
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San Francisco rents rose 15.8 percent in the first quarter of this year compared with the same time last year, to an average of $2,663 for all size units, according to RealFacts. Studio apartments average $2,075, up 16.5 percent in a year. The steepest rise came in one-bedroom, one-bathroom apartments, which are now $2,611 - up 19.9 percent in the past year and up 30 percent from just two years ago. <br />
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Growth was also strong in San Mateo County, where units of all sizes average $2,003, a 15.6 percent annual increase, RealFacts said. In Santa Clara County, the $1,857 average rent is a 12.5 percent annual increase. For Alameda County, the $1,519 average rent is up 7 percent - still a big increase compared with other areas of the country. <br />
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"When you see markets like Oakland with rental growth, it's because it has proximity to San Francisco rather than in and of itself doing anything," Bridge said. <br />
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San Francisco is the most expensive metropolitan area in the country for renters, according to a recent report from the National Low Income Housing Coalition, which compared rents to wages. The going rate for a two-bedroom apartment in the counties of San Francisco, Marin and San Mateo requires a $76,200 annual income, the report said. By contrast, the New York metropolitan area, which includes eight counties, requires a $56,950 annual salary. <br />
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Even well-paid workers can find it hard to navigate San Francisco's blood-sport rental market. <br />
That's spurred the creation of services targeting them. Real estate agent Wendy Willbanks last year decided to become a scout, or "rental concierge," for apartment hunters, calling her business She Moves You (shemovesyou.com). <br />
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"I swoop in and beat the competition," Willbanks said. "It's a fast track to jumping them ahead of the long lines of other applicants (and) landing a rental property in San Francisco without wasting time." <br />
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After nailing down her clients' wish lists, Willbanks sifts through listings and attends open houses, armed with her clients' credit reports and renter profiles. She photographs and videos the spaces. Some clients, such as people moving from elsewhere in the country, decide on apartments based purely on her scouting.<br />
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Nicole Kumle was moving from Los Angeles for an occupational therapist job at San Francisco General Hospital. She tried apartment hunting during a brief visit, but every open house was filled with people, and the clock was ticking. She hired Willbanks, who found her a one-bedroom in Pacific Heights in her price range. Kumle applied for the apartment sight unseen. <br />
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Willbanks said she beat out 17 applicants by arriving early and befriending the rental manager. <br />
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"It worked out wonderfully with no drama," Kumle said. "But it was kind of pricey."<br />
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Willbanks' fee is about equal to an average month's rent, which is standard for real estate agents who perform similar services. She charges a few hundred dollars more for out-of-town clients who need more orientation to neighborhoods.<br />
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"This is a luxury service for the busy professional," she said.<br />
"It's a tight market," she said. "There are a lot of tech hires and also a lot of people who would have bought a few years ago, who are opting to rent instead."<br />
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Listings turn over quickly, especially if they're in popular neighborhoods with amenities such as parking, updated kitchens and outdoor space, she said. <br />
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"We'll get several hundred e-mail inquiries, probably as many phone calls, lots and lots of people showing up and multiple applications," she said.<br />
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Landlords make the final decisions after her firm checks credit, employment and references. But, she said, the applicants with the best income, credit and rental history and who can move in soonest tend to get the leases. <br />
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Competition heats up even more over the summer because people want to be settled before the school year starts. <br />
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"August is the crescendo of demand each year," she said. "Last summer there was one listing in a really hip, desirable part of the Mission, where I actually had a fistfight break out in the line of people to get into the open house. I needed a bouncer. There were 80 people there; it was really nuts."<br />
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Jed Kolko, chief economist at real estate site Trulia.com, said a couple of factors in addition to job growth conspire to keep San Francisco rents high. The city's rent control and limits on new construction "mean rents are higher to begin with, and they rise faster when demand increases."<br />
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Rent control also limits turnover, he said.<br />
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"It encourages some people to stay in an apartment longer than they otherwise would have." <br />
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Carolyn Said is a San Francisco Chronicle staff writer. csaid@sfchronicle.com<br />"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-63431854060523639502012-05-01T11:45:00.000-07:002012-05-01T11:49:46.122-07:00Rising Rents - Falling Prices (From: Bankrate.com)<object classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,47,0" height="373" id="flashObj" width="575"><param name="movie" value="http://c.brightcove.com/services/viewer/federated_f9?isVid=1" />
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Anything and everything related to real estate investment and property management is fair game. Make the most of this opportunity to have the collective experience of the WCAA serve as your personal resource and mentor. If you have a question that you want to ask anonymously, send it to me via email and I will ask it for you. <br />
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I look forward to seeing everyone Thursday night.<br />
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Time: Dinner and Networking 6:00 - 7:00 PM / Discussion 7:00 - 8:00 PM<br />
Where: Golden Corral on Glenwood Avenue (next to Fat Daddy's)<br />
Cost: Meetings are free but you MUST purchase dinner and eat if you attend <br />
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<br />"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-64012139175854539802012-04-25T14:01:00.001-07:002012-04-25T14:01:39.046-07:00More renters live in 1-to-4 unit homes than apartment buildings<a href="http://blogs.wsj.com/developments/?mod=realestate?mod=WSJ_topnav_na_realestate">Developments - WSJ</a>: Here’s a fun fact about the housing market: There are more rentals in houses than apartment buildings.<br />
That number comes from CoreLogic economist Sam Khater, who crunched Census numbers to determine that about 20.7 million rentals are in 1-to-4 unit homes, including both detached and attached homes, compared with about 17.1 million rentals in buildings with 5-or-more units. About 1.87 million American households are in mobile homes, RVs, boats, or vans."T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-8463574057884609262012-04-03T13:42:00.001-07:002012-04-03T13:42:10.453-07:00Investors Aim to Buy Thousands of Homes to Rent to Tenants - NYTimes.com<a href="http://www.nytimes.com/2012/04/03/business/investors-are-looking-to-buy-homes-by-the-thousands.html?pagewanted=1&_r=2">Investors Aim to Buy Thousands of Homes to Rent to Tenants - NYTimes.com</a>: <br />
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With home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes. <br />
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But the new investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market."T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-72657820312755476792012-03-27T07:35:00.000-07:002012-03-27T07:37:07.562-07:00PROP changes - one perspectiveThe city of Raleigh is considering updating the PROP program (Probationary Rental Occupancy Permit) which imposes fines on landlords if they or their tenants are cited too many times for late-night noise or code violations. This came after many neighbors were fed up with loud parties and messy yards in Raleigh’s college neighborhoods.<br /><br />The updates to this program that the city is considering go further by penalizing landlords if any of the tenants are convicted for a crime such as: prostitution, possession of stolen goods, possession and consumption of malt beverages, sale of machine guns or like weapons, possession of a firearm by a felon, gambling, riot or inciting riot.<br /><br />Full article at link below...<br /><br />Read more here: http://www.newsobserver.com/2012/03/27/1962206/impractical-additions-to-raleighs.html#storylink=cpy"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-19978731555302185662012-03-15T07:50:00.001-07:002012-03-15T07:52:29.875-07:00Deaton Newsletter - Bad Changes on the way for PROP?The latest edition of Deaton Investment Real Estate's newsletter is available for <a href="http://www.deaton.com/Upload/Deatonnews_Mar12_Web.pdf">review at this link</a>.<br /><br /><strong>In this edition:<br />-</strong> <strong>PROP Changing For The Worse in 2012?</strong> - Article provided by the Triangle Apartment Association<br /><strong>Introduction:</strong> Landlords in Raleigh have been under the compliance pressures of PROP for many years. This article is a summary of what PROP is and the proposed changes which could be up for vote before the end of March. It is crucial that all landlords understand these policies are not specific to Raleigh. Other municipalities are trying to implement inspections and rental programs based on Raleigh's "success." These policies are spreading all over N.C. and the country. Make a point to be aware of what is happening in the places you own property.<br /><br />- A sample of current listings and recent sale"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-36944695033403471612012-02-24T13:57:00.002-08:002012-02-24T14:19:43.351-08:00WCAA Next Meeting - Thursday, 3/1/12The next meeting of the WCAA will be Thursday, March 1st. Coming to share with the group will be Gary Wires. Gary is the Sales Manager for Prestige Restoration which provides a complete line of fire, smoke and soot cleanup, water and mold remediation, cleaning and full restoration services. Through his 20+ years of experience Gary has become an expert on mold. He will be helping to educate (or re-educate) all of us on the various types, what to look for, how to avoid it and what to do if it shows up in one of your rental units.<br /><br />I will also share an update on the latest PROP proposal and what is being done to try and slow down and/or stop the City of Raleigh from moving forward.<br /><br />Make sure you are there so you don't miss all the information.<br /><br /><strong>Time</strong>: Dinner and Networking 6:00 - 7:00 PM / Presentation 7:00 - 8:00 PM<br /><strong>Where</strong>: Golden Corral on Glenwood Avenue (next to Fat Daddy's)<br /><strong>Cost</strong>: Meetings are free but you MUST purchase dinner and eat if you attend"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-877586871583724852012-02-10T08:14:00.000-08:002012-02-10T08:15:40.209-08:00Apartment Demand Expected Higher In 2012: Marquette Economist | The Source For NAR Commercial Real EstateLink to full article: <a href="http://blog.commercialsource.com/mike-epplis-talk-to-naiop-apartments-look-healthy-in-2012/">Apartment Demand Expected Higher In 2012: Marquette Economist The Source For <span id="SPELLING_ERROR_0" class="blsp-spelling-error">NAR</span> Commercial Real Estate</a>:<br /><br />Highlight:<br /><br />[Even though growth of households (household defined as that population unit required for rental occupation or home ownership) slowed in the 2000s, current research suggests a nationwide bump in households amounting near 350,000. Against a backdrop of a base 35 million apartments in the US, a pent-up demand for apartment housing is stemming from an oft-discussed trend: After completing school, college students are coming home and staying there – approximately 1.6 million young adults in this situation currently that would under different economic circumstances be in apartments. As jobs return – and the latest numbers show some recovery there – this demand will hit the apartment market. What will further stimulate demand, <span id="SPELLING_ERROR_1" class="blsp-spelling-error">Eppli</span> said, is the fact that the average age of marriage is on the rise in the US, which means that adults are staying in rental units longer than they have historically.]"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-38271584769540929482012-01-31T11:05:00.000-08:002012-01-31T11:21:01.156-08:00WCAA Meeting - Thursday, 2/2/12 - Legislative Update and Q&A with Attorney Norm PraetMembers,<br /><br />Just a month in to 2012 and the political agendas are in rapid-fire mode. Cheryl Houseman, Government Affairs Director at the Triangle Apartment Association (TAA), will provide a legislative update at the beginning of our meeting. The City of Raleigh is talking about expanding PROP again and now the City of Durham has proposed PRIP - Proactive Rental Inspection Program.<br /><br />Landlord attorney Norm Praet, co-chair of the TAA Government Affairs Committee, has also agreed to attend. Norm will be able to provide insight on these issues from a landlord-friendly legal perspective. Should time allow, Norm will be available to answer other landlord-related legal questions.<br /><br />Thanks to Cheryl and Norm for offering their time. It's always nice to have an attorney "for free" for a few moments. Be sure to attend.<br /><br />You can learn more about the TAA here - http://triangleaptassn.org/<br />For more information about Norm Praet - http://praetlaw.com/<br /><br /><strong>Time:</strong> Dinner and Networking 6:00 - 7:00 PM / Presentation 7:00 - 8:00 PM<br /><strong>Where:</strong> Golden Corral on Glenwood Avenue (next to Fat Daddy's)<br />Cost: Meetings are free but you MUST purchase dinner and eat if you attend"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-20495630220555994742012-01-16T10:56:00.000-08:002012-01-16T11:01:17.262-08:00Downtown Raleigh's GrowthDowntown Raleigh Alliance says Red Hat's move downtown means purchasing power<br /><object width="429" height="295"><param name="movie" value="http://vp.mgnetwork.net/viewer.swf?u=3d4c0aea8a13102faba2001ec92a4a0d&z=NCN&embed_player=1" ></param><param name="allowFullScreen" value="true"></param><embed src="http://vp.mgnetwork.net/viewer.swf?u=3d4c0aea8a13102faba2001ec92a4a0d&z=NCN&embed_player=1" type="application/x-shockwave-flash" allowfullscreen="true" width="429" height="295"></embed></object>"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-3119162297205759472011-12-30T07:36:00.000-08:002011-12-30T07:52:54.283-08:00WCAA Meeting - 1/5/12 - Wake County Economic DevelopmentHappy New Year! The next meeting of the Wake County Apartment Association will be Thursday, January 5, 2012.<br /><br />Last month our group returned to the Golden Corral on <span id="SPELLING_ERROR_0" class="blsp-spelling-error">Glenwood</span> Ave and the panel discussion was a big hit. Let's kick the New Year off with another great meeting.<br /><br />At Thursday's meeting we will be joined by Casey <span id="SPELLING_ERROR_1" class="blsp-spelling-error">Cronce</span>, research manager for <a href="http://www.raleigh-wake.org/home/">Wake County Economic Development</a>. <span id="SPELLING_ERROR_2" class="blsp-spelling-error">WCED</span> serves as the lead economic development agency for Wake County. As such, <span id="SPELLING_ERROR_3" class="blsp-spelling-error">WCED</span> assists businesses with their relocation and expansion plans, and markets Wake County as one of the best places for business in the United States. Casey will provide some of <span id="SPELLING_ERROR_4" class="blsp-spelling-error">WCED's</span> business and demographic data and share some of the exciting economic developments within Wake County.<br /><br />I look forward to seeing everyone for an informative meeting on 1/5/12.<br /><strong>Time:</strong> Dinner and Networking 6:00 - 7:00 PM / Presentation 7:00 - 8:00 PM<br /><strong>Where:</strong> Golden Corral on Glenwood Avenue (next to Fat Daddy's)<br /><strong>Cost: Meetings are free but you MUST purchase dinner and eat if you attend</strong>"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-12962978276886215922011-12-22T10:38:00.000-08:002011-12-22T10:38:24.594-08:00Investors pour money into Triangle apartment boom - Real Estate News - NewsObserver.com<a href="http://www.newsobserver.com/2011/12/22/1726229/investors-pour-money-into-apartment.html#storylink=addthis">Investors pour money into Triangle apartment boom - Real Estate News - NewsObserver.com</a><br /><br />....... [Investors are being drawn to apartments both by their steady cash flow and their improving fundamentals. The turmoil in the residential housing market has increased demand for apartments as more and more people lose their homes to foreclosure or find that they can no longer qualify for a mortgage.<br /><br />"There aren't as many units being delivered in the next two to three years to keep up with demand," said Jeff Glenn, an investment broker at CBRE in Raleigh. "So there's enormous rent growth potential that we're seeing." ........]<br /><br />Read more here: <a href="http://www.newsobserver.com/2011/12/22/1726229/investors-pour-money-into-apartment.html#storylink=cpy">http://www.newsobserver.com/2011/12/22/1726229/investors-pour-money-into-apartment.html#storylink=cpy</a>"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com1tag:blogger.com,1999:blog-2020054318835034073.post-67110696384245494532011-11-23T08:18:00.000-08:002011-11-23T09:09:14.765-08:00WCAA Meeting - 12/1/11 - Panel DiscussionThe next meeting of the Wake County Apartment Association will be held Thursday, December 1, 2011 at the Golden Corral on <span id="SPELLING_ERROR_0" class="blsp-spelling-error">Glenwood</span> Ave/Hwy 70 in Raleigh. We have assembled a fantastic panel that will be discussing various topics and questions related to the apartment market. The panel will include Jesse Sorrel, Steve <span id="SPELLING_ERROR_1" class="blsp-spelling-error">Deaton</span> and Beau <span id="SPELLING_ERROR_2" class="blsp-spelling-error">Dawkins</span>. As you can see in the brief descriptions below (with links to their respective websites) the experience, expertise and knowledge of the local apartment market accumulated between these three <span id="SPELLING_ERROR_3" class="blsp-spelling-corrected">individuals</span> is nearly unmatched.<br /><br /><strong>Jesse Sorrel</strong> is Owner and Broker in Charge of <a href="http://rhynerentals.com/"><span id="SPELLING_ERROR_4" class="blsp-spelling-error">Rhyne</span> Management</a>. <span id="SPELLING_ERROR_5" class="blsp-spelling-error">Rhyne</span> manages thousands of rental properties in the Wake County area and Jesse has decades of experience as a property manager and owner-operator of apartments.<br /><br /><strong>Steve <span id="SPELLING_ERROR_6" class="blsp-spelling-error">Deaton</span></strong> is Owner and Broker in Charge of <a href="http://www.deaton.com/"><span id="SPELLING_ERROR_7" class="blsp-spelling-error">Deaton</span> Investment Real Estate</a>. Steve has more than 25 years experience focusing on the brokerage of apartment properties in the Triangle. Additionally, Steve owns and manages a portfolio of <span id="SPELLING_ERROR_8" class="blsp-spelling-error">invesment</span> properties inside Raleigh's <span id="SPELLING_ERROR_9" class="blsp-spelling-error">Beltline</span>.<br /><br /><strong>Beau <span id="SPELLING_ERROR_10" class="blsp-spelling-error">Dawkins</span></strong> is the Owner and Operator of <a href="http://dprents.com/"><span id="SPELLING_ERROR_11" class="blsp-spelling-error">Dawkins</span> Properties</a>. <span id="SPELLING_ERROR_12" class="blsp-spelling-error">Dawkins</span> Properties owns and self-manages more than 100 rental units in the Raleigh area. An integral member of the <span id="SPELLING_ERROR_13" class="blsp-spelling-error">WCAA</span>, Beau has accumulated his portfolio over the last 8 years and is very hands-on in the operations at his properties.<br /><br />This meeting is a rare opportunity for our group and should be very informative for everyone. Happy Thanksgiving. See you on Thursday, 12/1/11.<br /><br /><strong>Time:</strong> Dinner and Networking 6:00 - 7:00 PM / Panel and Open Discussion 7:00 - 8:00 PM<br /><strong>Where:</strong> Golden Corral on <span id="SPELLING_ERROR_14" class="blsp-spelling-error">Glenwood</span> Avenue (next to Fat Daddy's)<br /><strong>Cost: Meetings are free but you MUST purchase dinner and eat if you attend<br /></strong>"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-58869302190969530992011-11-16T13:18:00.000-08:002011-11-16T13:18:13.254-08:00Apartment REITs: These Are the Salad Days - Developments - WSJ<a href="http://blogs.wsj.com/developments/2011/11/16/apartment-reits-these-are-the-salad-days/">Apartment REITs: These Are the Salad Days - Developments - WSJ</a>"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-36685986451807404932011-11-01T11:26:00.000-07:002011-11-01T11:30:28.890-07:00Apartment Values, Rents Rise - WSJ.com<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVeRBB0BhPSZJSHuC-yHBDDMOt3ZjNgqM6tH4ipxJX1Dw2f_l_9bxebXiggS_HbhVBNHIpr_LH-1-Db6KJkjQZKGvLl79ZF2l2R68vhMM5WdJW8NLxLq6jmanLRNzYlVGGZ9FMnP0OTkU/s1600/MI-BL887_Apart_NS_20111025184212.jpg"><img style="MARGIN: 0px 10px 10px 0px; WIDTH: 225px; FLOAT: left; HEIGHT: 318px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5670096122680932674" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVeRBB0BhPSZJSHuC-yHBDDMOt3ZjNgqM6tH4ipxJX1Dw2f_l_9bxebXiggS_HbhVBNHIpr_LH-1-Db6KJkjQZKGvLl79ZF2l2R68vhMM5WdJW8NLxLq6jmanLRNzYlVGGZ9FMnP0OTkU/s320/MI-BL887_Apart_NS_20111025184212.jpg" /></a><br /><a href="http://online.wsj.com/article/SB10001424052970203911804576653403871400400.html">Apartment Values, Rents Rise - WSJ.com</a>: By DAWN WOTAPKA<br /><br />Strong growth of rents and occupancy levels of rental apartments have pushed some building values to record levels as Americans shift away from home ownership.<br /><br />While concerns about the economy are cooling the market for most other types of commercial real estate, apartment rents and occupancies continue to be boosted by demand from millions of people who are victims of foreclosure or are unwilling or unable to buy their own homes.<br /><br />At the end of the third quarter, 5.6% of the nation's apartments were vacant, down from 5.9% in the second quarter, and the lowest level since 2006, according to Reis Inc., a real-estate data service.<br /><br /><br />.Rents are up even in some cities that have been hard hit by high unemployment and the housing crash, like Orlando, Fla., Detroit and Phoenix. Effective rents, which include landlord discounts in some markets, rose to $1,004 a month in the third quarter, up 2.3% from a year earlier, according to Reis. Of the 82 major markets that Reis tracks, only Las Vegas saw rents decline compared with a year earlier.<br /><br />Forecasters say rent increases could slow or stop if the economy weakens further. But for now, these trends are producing outsized returns for real-estate companies, compared with other commercial-property classes.<br /><br />Values of apartment buildings in the best locations—with modern amenities like resort-style swimming pools and outdoor movie viewing areas—went into record territory in the third quarter, according to an index compiled by Green Street Advisors. The previous record had been set in the second quarter of 2007.<br /><br />Investors who bought apartment buildings just a few years ago are selling for big profits. Regency Club, a 372-unit complex in Jackson, N.J., with two swimming pools and tennis courts, sold for $44 million in August, compared with $39.9 million in early 2009, according to Marcus & Millichap.<br /><br />At the same time, though, the rise in rents is squeezing large swathes of the middle class by increasing living costs just as wage increases are anemic and unemployment high.<br /><br />Glen Guile, a 40-year-old information technology and marketing employee for an auto-parts company in Raleigh, N.C., says he's looking on Craigslist, an online classified-ad service, for a roommate because he just heard his $629 rent for a one-bedroom apartment could be increased another $30 to $40 a month. He's already working a second job at a Costco store. "I don't get a day off. I work seven days a week," he said.<br /><br />But thanks to rising rents and occupancies, some analysts predict that real-estate companies will have the highest growth in property net income this year and next year since 2006.<br /><br />Associated Estates Realty Corp. kicked off the earnings season for apartment-building companies Monday by reporting a 12.5% year-over-year increase in funds from operations, a common metric used by real-estate companies to measure performance. When looking at apartments owned for a year or more, rents for Associated's 12,000-unit portfolio were up 4.6% compared with the third quarter of 2010.<br /><br />"Some people try to make the argument that what's going on in the job market affects apartment demand," said Jeffrey Friedman, Associated's chief executive. "We don't believe that."<br /><br />The apartment sector has been insulated from high unemployment because it continues to inhabit a sweet spot in the economy created by demographic factors and the anemic home sales market. The U.S. is expected to see 1.5 million rental household formations in 2011, a record year, according to Green Street.<br /><br />The main reason for the rental increase is a faster-than-expected decline in the home ownership rate, according to Green Street. The nation's rate came in at 66% in the second quarter, down from 66.4% in the first quarter and 66.9% in the second quarter a year ago, according to the Census Bureau.<br /><br />Some industry watchers say the rate could fall to as low as 60%. Each 1% decline in the home-ownership rate represents the movement of one million households to rentals.<br /><br />If a current tenant balks about a lease renewal including higher rent, Mr. Friedman says he isn't overly concerned. "There's someone coming right behind them who can afford it," he said.<br /><br />To be sure, the economics of apartment investments aren't detached from the concerns about financial problems in Europe and the possibility of a double-dip recession in the U.S. As a result, landlords have started to temper rent growth in some areas, including Denver, Atlanta and the Baltimore area, according to Green Street.<br /><br />If another recession hits and unemployment rises, millions of renters could likely double up or move home with their parents, putting a crimp in demand. "People just aren't going to write bigger and bigger rent checks into infinity," warns Andrew McCulloch a Green Street analyst.<br /><br />The high rents are also being supported by a lack of new supply. Developers have scrambled to launch new projects, but most of them won't start hitting the market until late 2012. Roughly 8,200 new apartments hit the market in the third quarter, the second lowest number since Reis began tracking data in 1999.<br /><br />Write to Dawn Wotapka at dawn.wotapka@dowjones.com"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-90982530429445734512011-10-28T10:23:00.000-07:002011-10-28T10:25:08.641-07:00WCAA - Next Meeting 12/1/11There will be no meeting of the Wake County Apartment Association in November. Perkins Restaurant has closed, but fortunately we were able to reserve the private meeting room at the Golden Corral on Glenwood Avenue for December 1st. I am excited we have a chance to move back to this location. <br /> <br />The manager was reluctant to reserve the room for us into 2012, but agreed to give our group a "trial run." We need to have a large group and everyone in attendance must eat. Basically...in exchange for the room reservation we need to show that our group brings a lot of paying customers so they will welcome us back.<br /> <br />I hope that most of you will go ahead and put 12/1 from 6 PM - 8 PM on your calendar. Details for the meeting will come in a few weeks."T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-40046249838421039542011-10-24T14:01:00.000-07:002011-10-24T14:01:13.066-07:00Buying a house not part of the 'American dream' for some :: WRAL.com<a href="http://www.wral.com/business/story/10282411/">Buying a house not part of the 'American dream' for some :: WRAL.com</a>: Raleigh, N.C. —<br />The shaky economy has some college graduates rethinking the traditional "American dream" of buying a house.<br /><br />North Carolina State University senior Ben Galphin is more focused on looking for jobs all over the country.<br /><br />"Everybody strived for that coming out of school – get a job, buy a house, start a family, the whole thing," mortgage banker Jeremy Salemson said Wednesday. “Now, the reality is they are not finding jobs or not finding jobs that are paying enough to feel they can qualify for a traditional mortgage."<br /><br />Many people are opting to rent, which homeowner Jackie Armstrong sees as a waste of money.<br />“I would encourage people my age to buy a house, because if I had not stayed here for 18 months and was renting, I would have spent around $18,000,” she said. “That’s a considerable amount. Even if I sell this for as much as I bought it 18 months ago, I'm still not throwing money away.”<br /><br />Armstrong cautioned that people should be confident and stable in a job before opting for a mortgage, a big fear for 20-somethings in the recent economy.<br /><br />“If things continue to go down, would I have a paycheck?” Galphin worried. “It's something where I don't want to be sealed in to a 20-year agreement with a bank and can't hold up my end of the bargain.”<br /><br />Salemson said the Triangle housing market has fared better than other areas, in part because of the diverse work opportunities in the area.<br />Reporter: Tara Lynn<br />Web Editor: Kathy Hanrahan"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-62746830662228925162011-10-21T10:28:00.000-07:002011-10-21T10:30:02.473-07:00Housing Crash Continues<a href="http://blogs.wsj.com/developments/2011/10/20/behind-the-numbers-the-housing-crash-continues/">By: Dawn Wotapka and Alan Zibel<br /></a><br />Here’s even more bad news for housing: Sales of previously occupied homes in the U.S. fell last month. September’s existing-home sales decreased by 3.0% – more than expected – from a month earlier to a seasonally adjusted annual rate of 4.91 million, the National Association of Realtors said Thursday.<br /><br />The market is “in a holding pattern. It’s not breaking out,” said Lawrence Yun, the trade group’s chief economist. (We’ll point out that this holding pattern has been going on for some time.)<br /><br />The results show that the housing crash continues. The foreclosure crisis drags on, exacerbated by the fact that many Americans owe more on their homes than they’re worth. That has plenty of would-be buyers jittery and stuck on the sidelines. In addition, requirements for loans are tighter than ever and, now, the size of loans backed by government entities including Fannie Mae and Freddie Mac have fallen, hurting housing even more. The limits, which went into effect at the start of this month, vary by location but are now $625,500 in expensive markets such as New York and San Francisco, down from $729,750.<br /><br />According to the Realtors, the median sales price came in at $165,400, down 3.5% from $171,400 a year earlier, showing that the nation’s depressed home values have yet to stabilize.<br /><br />The inventory of previously owned homes listed for sale, meanwhile, fell at the end of September to 3.48 million. That represented an 8.5-month supply at the current sales pace, slightly above the healthy level of about six months. (Keep in mind that plenty of would-be sellers have pulled their homes off the market or are waiting to sell.)<br /><br />Foreclosures and other distressed properties represented about 30% of sales, showing such deals remain a big part of the battered marketplace. Investors purchased 19% of homes in September, up a hair from a year earlier. First-time buyers accounted for 32% of deals.<br /><br />Here’s what industry watchers had to say:<br /><br />Ian Shepherdson, economist, High Frequency Economics: “With mortgage demand still dead we expect no serious near-term movement. Prices continue to decline, with the y/y rate trending at about -4.5%. This is a significant barrier to recovery, because most people tend not to want to borrow multiples of their annual incomes to purchase depreciating assets, no matter how low is the nominal mortgage rate. Housing will recover in time as the labor market picks up and people start moving around the country to take up new jobs, but for now the market is dead.”<br /><br />Jed Kolko, economist, Trulia: “Today’s month-on-month drop in existing home sales won’t be the last drop we see. The current month-on-month decline in home-purchase mortgage applications, released by MBA yesterday, indicates that sales – which lag mortgage applications – will continue downward.”<br /><br />Dan Oppenheim, analyst, Credit Suisse: “We think these levels of months’ supply continue to indicate current and future pricing pressure, suggesting downside risk to existing and new home pricing (NAR inventory also would not include shadow inventory not for sale). We think home builders will need to adjust pricing lower to remain competitive with the more attractively priced existing home market.”"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-82180251009945794732011-10-14T08:10:00.000-07:002011-10-14T08:13:16.985-07:00Should a First-Time Buyer Be A Landlord?A great Q&A that appeared on <a href="http://online.wsj.com/article/SB10001424052970203388804576616973111289288.html?mod=WSJ_RealEstate_LeftTopNews">WSJOnline.com</a><br /><br />By JUNE FLETCHER<br />Q. I am a single professional in my 20s who rents with a few roommates. I read your comments about how Austin is a good place to invest in property, given the volatility of the stock market. I, too, am considering it. I am thinking of buying a three-bedroom, $150,000 house in a good neighborhood. With help from my family, I can put 20% down. If I rent out the extra two rooms, the income will cover the property tax and mortgage. But I travel a lot for work and I am not sure whether my company will transfer me or if I even want to stay in this area. Should I do it?<br /><br />--Austin, Texas<br /><br />A. I applaud your desire to invest in your financial future. And landlords get generous tax breaks while collecting rental income. But from what you've told me, I recommend holding off buying a home.<br /><br />Managing a property—which includes screening tenants, collecting rents, paying bills and keeping the lawn mowed—while you are traveling is difficult. But my bigger concern is that you are not sure if you are even going to stay in the area. Unless you buy a fixer upper at a discount, rehab it and resell it quickly, the only way to make money in real estate is to hold on to a property until it appreciates. Even though prices have been rising in Austin, you will need to stay in the area for at least a few years to recoup your costs on a market-rate house.<br /><br />As a homeowner and landlord, you will have many expenses besides taxes and a mortgage. Assuming you put 20% down on a $150,000 house in Austin, you will have to pay an estimated $4,938 in closing costs, according to Zillow's calculator. You also will have to budget for repairs and maintenance—expect to pay between 1% and 3% of the home's purchase price each year—as well as for repainting and freshening the rooms when tenants move out. You will need insurance, and if you have a homeowners association, you will have to pay dues. When you sell, you will have to pay a broker's commission, probably around 6% of the selling price, and some fix-up costs.<br /><br />Rental income will help to defray these expenses, but you cannot depend on a steady stream. There will be periods when one or more of the rooms will be vacant, and you may have to shoulder some extra costs to evict someone who doesn't pay the rent. You should have about six months of mortgage payments in reserve to cover these possibilities. You also should have cash on hand to handle expensive emergencies, like a furnace that conks out in a cold snap. Since you will have to tap family funds for a down payment, it doesn't sound like you have enough of a cushion yet.<br /><br />That doesn't mean that you should give up on the idea of owning property. Just postpone it until you know where you will live and are on a more solid financial footing. In the meantime, continue to familiarize yourself with various neighborhoods and properties, talk to lenders and work with a real estate agent who understands your situation. Then you will be in a position to act when you are ready to put down roots.<br /><br />Write to June Fletcher at fletcher.june@gmail.com."T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-61113935618914037852011-10-10T11:21:00.000-07:002011-10-10T11:27:11.706-07:00Wages for young college graduates down almost 10%<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv1EBRx5EpbFfstrF4V-0ZLPyGxwCPocdWvN_VXI3aSrk6FGOfUUso0eS97EHWTDYPCOJdOLsxjVtajLjcnQg2h6p8-RF94rPPjh7gQPMb9L5ofHetmXJsRPhgE7UDjZAb_X32zTsD9j0/s1600/NA-BN629_NUMBER_D_20111007205103.jpg"><img style="MARGIN: 0px 10px 10px 0px; WIDTH: 217px; FLOAT: left; HEIGHT: 320px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5661930559365453090" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv1EBRx5EpbFfstrF4V-0ZLPyGxwCPocdWvN_VXI3aSrk6FGOfUUso0eS97EHWTDYPCOJdOLsxjVtajLjcnQg2h6p8-RF94rPPjh7gQPMb9L5ofHetmXJsRPhgE7UDjZAb_X32zTsD9j0/s320/NA-BN629_NUMBER_D_20111007205103.jpg" /></a><br /><br /><div>This sobering chart comes from <a href="http://blogs.wsj.com/economics/2011/10/08/number-of-the-week-falling-wages-for-young-college-grads/">The Wall Street Journal Blog</a></div><br /><div></div><br /><div>Citing research from the US Census Bureau, recent college graduates without graduate degrees have seen a larger decline of income between 2000-2010 than any other age group.</div>"T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0tag:blogger.com,1999:blog-2020054318835034073.post-47346576652425171632011-09-30T07:46:00.000-07:002011-09-30T07:58:25.620-07:00WCAA Meeting - Thursday, 10/6/11 - Capital markets overview and Q&A with Jeff BurgessThe next meeting of the Wake County Apartment Association will be Thursday, October 6, 2011. We are very fortunate to welcome Jeff Burgess as our guest speaker for this meeting. Jeff founded Equity Services, one of the largest independently owned mortgage companies in N.C. and now serves as Branch Manager for <a href="http://www2.primelending.com/"><span id="SPELLING_ERROR_0" class="blsp-spelling-error">PrimeLending</span> in Raleigh</a>. Jeff offers insight to the capital markets from more than 25 years of experience. In addition to covering investment property financing options, Jeff hopes to discuss your questions about market expectations, forecasts, trends and anything else that relates to real estate finance.<br /><br />Don't miss this meeting. It will be one of the most informative of the year.<br /><br /><strong>Time:</strong> Dinner and Networking 6:00 pm - 7:00 pm. Speaker 7:00 pm - 8:00 pm.<br /><br /><strong>NEW Location:</strong> Perkins Restaurant off Capital at I-440 - http://www.perkinsrestaurants.com/<br />2657 Appliance Court<br />Raleigh, NC 27604<br />919-828-7375<br /><br />Guest are always welcome."T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com7tag:blogger.com,1999:blog-2020054318835034073.post-21855390543957411202011-09-22T06:50:00.000-07:002011-09-22T06:51:50.404-07:00Property Performance to Diverge Further; Job Stagnation Continues<a href="http://www.globest.com/blogs/streetsmart/-314003-1.html#.Tns9HbOe5Q0.blogger">GlobeSt.com - Property Performance to Diverge Further; Job Stagnation Continues - StreetSmart Article</a><br /><br />This is a good read. Click the link above."T." Furlowhttp://www.blogger.com/profile/07421664801434935967noreply@blogger.com0