Raleigh-Durham Real Estate Blog

It's been a while since my last blog posting, but that's a testament to the heating up of the local real estate market here in the Triangle. We've been pretty busy in the office, and this posting includes information that I hope will be of use in your investing endeavors.

Paradigm Properties is your One-Stop-Shop for Real Estate Success

A large percentage of our firm's business is focused on facilitating homebuyer and investment real estate purchases and sales. We appreciate the opportunity to help our clients reach their financial goals through real estate. Given the number of REO and other vacant properties on the market, we’ve found that residential and commercial property restoration and repair is a key component to our clients’ success. So is property management. For this reason, we’ve partnered with 2 licensed general contracting firms to assist our clients with their acquisitions, and to streamline the repair process. In addition, our property manager partners are prepped to assist with your landlording needs. We look forward to providing these and other vital services to our clients in the effort to provide a 1-stop-shop for your real estate success.

New offer form for NC buyers

Effective Janualr 2011, the state of North Carolina has implemented a new Offer to Purchase and Contract form. The new form streamlines the due diligence process and minimizes the number of dates in the prior Offer To Purchase form. One of the highlights of the new form is the new “due diligence” period, which defines the timeline allowed for buyers to cover ALL due diligence, including inspection, survey, loan approval, and a myriad of other items. Homeowners should be aware of this new requirement. Investors should make an effort to understand the changes as it will affect their pursuit of investment property portfolios as well as the offers they may receive on rehab and/or rental property. If you are in the Triangle area and want to learn more, feel free to attend an investor subgroup meeting on 2/28/2011 hosted by yours truly and the Triangle Real Estate Investor Association. We will review the new form and discuss its impact on real estate transactions. For more information, visit www.treia.com Click on the “Calendar” link and select the TREIAWest Subgroup meeting on 2/28/2011

Calling all Real Estate Wholesalers and Investors – I need your help

WHOLESALERS: Activity in our office shows that the Raleigh-Durham real estate market is picking up. In addition, the investment property market is on the rise. We need to hear from you because our clients are looking for GREAT DEALS and WE NEED WHOLESALE PROPERTIES FOR THEM. Now let me back up for a second. Please do not call me with a 200k home that you’re looking to sell for 190k. I can find those with my eyes closed. But, if you have a solid deal with solid numbers and are looking for a buyer, send it my way. We probably have a buyer for it. For example, a recent deal purchased by one of clients came in at 68k. After-repair value was 170k. and a majority of the repairs were cosmetic (albeit extensive), and totaled in excess of 60k. Another property currently under contract has an ARV of approx 160k. Purchase price is 98k. and the buyer expects to undergo cosmetic updates of approx 15k. Tenant-occupied properties are welcomed too as many of our clients are landlords. If you have a wholesale deal, send it over. If it looks like a good deal, we’ll be happy to share it with our investor network.

INVESTORS: If you are looking for specific criteria on a wholesale property, let me know what you’re looking for and I’ll be sure to contact you if anything fitting your interests crosses my desk.

To Your Success in 2011

We want to hear about your successes and lessons in real estate. If you do a deal, send me the details, purchase price, rehab, sales price, rents, profits, challenges, whatever you consider to be a learning point for others. It’s ok to brag a little bit! If you made a mistake and recovered, tell me how so that others can learn from your experience. By sending it to me, you give me the right to post the info on my blog. The name of the game is motivation, so share your successes and lessons and motivate others to accomplish the same!

A quick example: Our recent client requested our assistance with the purchase of a 16-unit property. Purchase price of approx 550k. We structured a loan assumption and private money deal that will net the owner in excess of 4k/month after expenses once full occupancy is reached. The numbers get even better a few years down the line. Not bad for 1 property acquisition. Although this is a multifamily, we want to hear your single-family, commercial and multifamily stories, so be sure to send ‘em over.

Raleigh to be a Top Hot Spot in 2011
More people are moving, according to Atlas Van Lines’ annual Migration Patterns study and that’s good news for one North Carolina city. The Migration Pattern study indicated Raleigh to be among the top three cities projected to have some of the strongest household growth rates in 2011, along with Phoenix (Arizona) and Austin (Texas).http://www.realtor.org/RMODaily.nsf/pages/News2011012003?OpenDocument

Now is the time to swap out those toilets!

The City of Durham Department of Water Management has expanded the WaterSense High Efficiency Toilet (HET) Rebate Program to increase program participation. Now homeowners, and landlords can benefit from the rebate. I’ve recently bought HET toilets recently for approximately $100 and the rebate is currently $100, so this can effectively negate the cost of the toilet (but not installation). The rebate is credited to your water bill, so be sure to have this handy when you apply. Additional info is available at : http://www.ci.durham.nc.us/departments/wm/toilet_rebates.cfm

Triangle Market Update Reports

• Entire Triangle Region
• Durham
• Orange
• Wake

Your Opinion Counts

If there is a topic of interest that you feel would be of benefit to the home-buying and/or investing community, let us know. If a recurring theme surfaces, we’ll do the research and include the info in an upcoming blog.Thanks in advance for your feedback. We look forward to working with you in 2011.