Raleigh-Durham Real Estate Blog

I know I haven’t written in a while, so this week’s update will be a long one. Things have been pretty busy over here with the pending expiration of the homebuyer tax credit (this Friday), but there’s a lot on the horizon that warrants an update, so here goes:

N.C. in the News
It’s been a good week for N.C. cities this month. Raleigh was named the eighth best value destination in the United States (http://tinyurl.com/ydmyujl) and Fayetteville was listed among the top 10 cities for real estate “steals” (http://tinyurl.com/yd5c67v).

N.C. Cities Named Among Best Places for Business
Four N.C. cities – Raleigh (No. 3), Charlotte (No. 17), Asheville (No. 21), and Durham (No. 23) – were recently named among the top 25 best places in the country for business and careers, according to a new report released by Forbes.com. Click here to view the ranking

$8000 first-time homebuyer tax credit expires this Friday.

If you haven’t yet taken advantage of the homebuyer tax-credit, you still have time. To qualify, buyers must be under contract by this Friday, April, 30, 2010 and must close their purchase by June 30, 2010. Current homeowners, keep in mind that you haven’t been left out. If you have owned your home for at least 5 years, you may qualify for a $6500 tax credit as well. So if you’ve been on the fence about buying, be sure to call us ASAP. Our lenders tell us that they are ready to get loans in line for last minute buyers!

Durham Hosts Landlord Training on May 20, 2010

If you will be in the area on May 20^th, this training is well worth your time. I attended a few years ago and the information shared is invaluable. In addition, several city offices are present, so it’s a great chance to meet the decision-makers who will affect your rental activities.

Fast Facts:

• The Landlord Training Workshop is specifically designed to assist landlords, property managers, resident managers, and any others who are actively involved in managing rental housing.
• The workshop will demonstrate effective property management practices to significantly contribute to safe and decent housing as well as provide successful techniques on how to halt illegal activity on rental properties.
• Workshop topics include how to build landlord, renter, homeowner, and business relationships; applicant screening techniques; rental agreements and fair housing issues; management techniques; the eviction process; how to achieve a stable, satisfied tenant base; how to maintain property to habitable standards; and City code enforcement.
• Seating is limited, so interested participants must register by Friday, May 7, 2010. The cost to attend this one-day workshop is $30 per person and includes workshop materials and a landlord training manual as well as a light breakfast, lunch and refreshments for registered participants.
• To register, download the workshop brochure and registration form here. Interested participants may also contact Lynwood Best, community engagement manager with the City’s Department of Neighborhood Improvement Services, at (919) 560-1647, extension 34254 or via e-mail at Lynwood.Best@durhamnc.gov.

Capitol Hill Hosts Real Estate Investors

This week, I was honored to accompany a group of business-owners, investors and other real estate professionals from across the US on a lobbying trip to our nation’s capitol. The visit was led by National REIA, which is the nonprofit organization that oversees TREIA and countless other Real Estate Investor Associations across the US (a total of over 40,000 small businesses). Our goal: To encourage our nation’s Senators and Representatives to remember the positive impact that real estate investors have on the real estate markets, and to share our concerns regarding pending legislation affecting our industry.

There are a number of bills currently in process that were intended to strengthen consumer protection. Unfortunately, deep within the countless pages of these bills are a few lines here and that that may threaten private property rights and/or unnecessarily restrict investing activities. Overall, our visit was well-received, and we made quite a bit of headway in opening up the lines of communication with these decision-makers. Although several topics were covered in our meetings, the following are a few pending bills of note:

HR4173 (Wall Street Reform and Consumer Protection) S3217 (Restoring American Financial Stability Act of 2010) and the SAFE Mortgage Act. If these bills become law as currently written, a new Consumer Financial Protection Agency will be created. Among other things, it will incorporate new mortgage reform and anti-predatory lending regulations. Many of these are good ideas and are necessary. But, what is not obvious in the title of these bills is that they will prohibit property owners from selling their own properties on terms (i.e. seller-financing and partial seller-financing) if the owner doesn’t hold a mortgage license. Seller financing has many benefits in our real estate markets. Often, selling a property in exchange for payments is one of the only options available to owners facing foreclosure. In the current climate of tighter lending standards, seller-financed notes are often the only option for self-employed buyers or buyers who are just beyond being able to qualify for traditional financing. There are also a number of property types that are difficult, if not impossible to finance in the current mortgage climate (mobile homes, raw land, properties in flood-plains, property needing extensive repair, etc…) Finally, many individuals who are facing retirement, leverage seller-financing on their properties to create a predictable income stream. This law will disallow this option for retirement income.

Seller-financing is a age-old tradition based on private property rights. It is not a traditional loan given that the principal amount of the loan never changes hands and there is no 3^rd party lender involved; It is an agreement for payments between a seller and a buyer. Think about it this way; You don't HAVE to use a Realtor to sell your home if you want sell as a FSBO (for sale by owner). Similarly, if no new loan is needed to sell your home and you want to offer seller financing to a buyer, why should a licensed mortgage originator be required?  Even the current $8000 first-time homebuyer tax credit allows purchasers using seller-financing to receive the credit, so the validity of these transactions is proven. If these pending bills concern you, take a few minutes to read through them, and fax or email your legislators to let them know how they will affect you. Be polite, but ask them to exclude seller financing from the bills.

You can also visit www.nationalreia.com to find a local REIA (Real Estate Investor Association) in your area. Your local group can help you to stay on top of local and national law affecting your real estate business.  They are also a great resource for education and networking.  If you are in the Raleigh-Durham area and have any degree of interest in legislative activities,or want to ind out about TREIA (Triangle Real Estate Investors Association), shoot me a note, or visit the TREIA website for additional information.

In addition, President Obama is reaching out to all US citizens for feedback on housing finance reform. Click here to find out more, and be sure to participate in the open sessions. You never know; your idea could be just what this country needs to get our housing finance system back on track

Recession Ends in 2010, UNC Charlotte Economist Says
The N.C. economy should grow 3.5 percent in 2010, the first year of growth following two years of decline, according to the quarterly forecast of UNC Charlotte economist John Connaughton.
http://tinyurl.com/y8ao5ah

Happy Investing!