Tiffany Elder, MBA, Realtor
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Raleigh-Durham Real Estate Blog

Bedbugs, Rankings and Rehabs, OH MY!
September 15th, 2010 1:33 AM

Bedbugs…YUCK!

Keep your eyes open as bedbug infestations are on the rise. What were previously thought of as imaginary critters meant to scare children at bedtime are now relentless "squatters" wreaking havoc for property owners. One of my landlord-clients called several weeks ago regarding an infestation in one of his units here in the Triangle. And the property was only 2 years old! Apparently these infestations were commonplace in other geographic areas, but they now are rearing their ugly heads here in Raleigh-Durham. The problem is that ridding your home of these critters is not as easy as it seems. Read more on MSN.

More Rankings

Durham, and North Carolina as a whole are ranking high in just about everything, huh?!

Durham is the #1 best place to retire (per CNN.com)

Durham is the #1 Best Market for Conservative Real Estate Investors (per CNN Money)

CNBC ranks North Carolina #4 as most improved among the top five states for doing business. The ranking elevated the state to fourth from ninth in the annual America’s Top States for Business survey.

PROPERTY ALERT! Tax Credit Rehabbers Take note – Historic Oakwood property available for sale. Only $80,000

Pocket listing. Amazing price on a bungalow in Historic Oakwood. Only $80,000 (less than land value). 206 Linden Avenue is ready for you to transform it into a gem. Outstanding potential for a solid rental property minutes from downtown Raleigh.  This one can also provide historic restoration tax credits if the property is renovated according to the NPS standards. Similarly-sized renovated homes within 2 blocks of 206 Linden have sold between 220k-300k within the past year. Call today for details. This one won’t be around for long. Cash buyers or rehab-financing only. Not recommended for new rehabbers as this one will require structural and systems work, as well as cosmetic updates. Given my penchant for historic restorations and tax credit projects, I would buy this one myself if I wasn't already up to my neck in construction projects, but I'd be more than happy to advise you on your first tax-credit rehab project if this fits your portfolio interests.

A FREE training you can't afford to miss

One of my all-time favorite real estate educators, Greg Pinneo is hosting a FREE 2-day training in Greenville NC on October 16-17.  More info can be found at his website.  While you're at the site, but sure to visit the "Library" for articles from his webinar series. For those of you who are not yet familiar with Greg, he is a truly inspirational speaker and is 100% committed to helping investors understand real estate beyond the "typical" topics that your inboxes are flooded with everyday. If you are committed to leveraging real estate to create an extraordinary life, you need to be in Greenville on October 16th and 17th.  I hope to see you there!

Q&A with a new real estate investor.

(The following is a brief Q&A stemming from a question posed via email by a new real estate investor with a bit of cash and little direction.  Keep in mind that there are many ways to get started in real estate investing.  Hopefully this Q&A will spark a few ideas for those of you looking for a place to start.)

Q: Hi Tiffany, what is the best way for me to invest and grow my money? I have 50k in capital. What do you recommend?

A: Thanks for your note. Your best option depends on your goals and risk tolerance.

1. You can serve as a private lender and get an 8% to18% return on funds (possibly more), depending on the investor and project/property. This is a good passive way to grow your money for other types of investing. In this case, you would be in a relatively safe position as long as you make sure you are in first position with a low LTV on the property. Also try to have yourself added to the property’s hazard insurance policy, which will protect your investment in the event of a fire or other loss at the property.

2. You can purchase a foreclosure, wholesale or other property to resell for a profit. You may have to tidy it up to prep for resale, but this is another option that can net you a quick return if you buy in a good location.

3. You can start to build a portfolio for passive income. Your 50k can likely serve as a downpayment for 1-2 properties, depending on the locations and property types you prefer. This is the most desirable option for the long-term because you will start to grow your long-term equity position and passive income (i.e."sleeping money").

4. If you have funds in retirement accounts that are losing value, you might consider opening or rolling over to a self-directed IRA through Equity Trust, Entrust, or one of many other self-directed custodians. These allow you to put your funds into a tangible investment(real estate) that you may be able to have more control over as compared with stocks. Then you can partner your available cash with your IRA funds for larger investments. Keep in mind that the proportion of profits stemming from your IRA’s participation in the investment have to go directly back into your IRA without you touching them, so these need to be funds/profits that you will not need to live off of in the short-term. Otherwise you'll violate IRS rules and will be heavily taxed/penalized.

These are just a few options for you to consider as a starting point. I hope this helps!


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Posted by Tiffany Elder on September 15th, 2010 1:33 AMPost a Comment

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Good advice, particularly #4. So many people have accumulated money in their 401ks and IRAs over the years but are unaware that they can take full control of how those funds are invested. IRA real estate, so long as the money is not needed immediately, can be a terrific option.

Posted by Dylan on September 20th, 2011 2:09 PM
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