How can the starting real estate investor develop realistic expectations of what your return on your money will be. The pie in the sky numbers you have heard from friends and perhaps read in books and magazines are few and far between. They are not deals you will come across in a weekend of looking or even a week but are often a result of years of watching and waiting for just the right deal and timing. This is not to discourage you from real estate investing but rather to educate you on the day in and day out realities of real estate investing and what you will most likely find in the Wake and Durham county markets.

The entire point of real estate investing is the increase of money into your monthly income, the tax advantages, and the gaining of equity in your investment. Click to View Triangle Area Listings. Notice that I have not mentioned quick turnover or property flipping. The reason is that this marketplace has always experienced 3-5% appreciation historically. If you do the math you will see that about three years of ownership are required to get back the cost of the property, the realtor’s fees, the cost of closing, and the cost of reinvestment in the next property. Click to view mortgage calculator.

Let’s look at some numbers to see what it takes to make property investment a worthwhile program.  In our example we will use a duplex style home with a price of 220K that needs no repairs before rental. The previous owner had renters that were paying $950.00 per month per side. Total income then is $1900.00 per month. That being settled, our expenses on the debit side are.  We have the mortgage payment which will include the property taxes, insurance, mortgage insurance, perhaps monthly HOA dues, and the real estate management companies’ expense. The typical management company will charge between 8 – 10% of your monthly income from the property. This may include various services, but usually these companies collect rent, answer the phone and arrange for the solving of problems, plumbing etc, rent the property when the previous renter leaves and send you a check and a monthly statement. Additionally they may arrange for lawn mowing, landscaping etc, but these costs will be in addition to the base percentage, as would the costs of plumbing repairs, etc.

So we start out with $1900.00 dollars and begin subtracting the various costs. PITI comes first, then 10% for the management company, so $1900.00-$1384.00-$190.00=$326.00. So before income tax adjustments we are looking at $326.00 with the gross deductions taken care of. Now we put $22000.00 down on the property and are bringing in $3912.00 dollars on our 22k invested. That is approximately 18 percent return on your money invested. How come every one doesn’t invest in real estate? It is so easy to make money anyone can do it, right? Well maybe, maybe not, the $3912.00 sounds great as long as the renters make all their payments. What if some one leaves and it takes you 45 days to rent it to some one else? So $3912/365days X 45 = $482.30 which we subtract from $3912.00 to find our new net income, which equals $3429.70. That is about 16% return on our investment of 22K. But what about if the hot water heater needs replaced, or the stove burns up, or the renter that left didn’t ruin their side of the double but, it all needs to be painted and professionally cleaned.

You could easily be out another $1500.00 dollars and that would bring your net income down to $1929.70. Now you are thinking, that you would keep the security deposit so that the ex-renter would actually pay for the paint and cleaning. Sorry doesn’t work that way, normal wear and tear on the property are the owners responsibility, this includes interior and exterior maintenance, that damage deposit money cannot be withheld from the ex-renter for that type  of work.

Ok so now we are down to 1929.70 dollars and that is about 9% return on your 22k investment. I know, I know, that isn’t much money to make for all this aggravation.

So now you are asking yourself, why does anyone invest in real estate?

Well what if you owned 10 duplexes all with the same approximate income and out go? View over 14,000 properties

That means in a typical year you would net between $39120.00 dollars on you investment gross after PITI and property management fees and $19297.00 on the low end if you have a bad year. Hmmm sounds a little better doesn’t it?

Your thinking, “yeah I can handle another 38K a year income, buy a boat, a nicer house, get the car I always wanted,” trade in the spouse for a better model. Well maybe not the last one.

Wait a minute. What did you start investing for? Was it long term gains and maybe an early retirement? Maybe you should plow some of that 38k back into your investment, or save to buy the eleventh duplex or the twelfth duplex or even maybe a small apartment building.  You could establish a LLC and further the use of your excess income by moving into commercial rentals, or buy a piece of prime land and have a small strip mall built.

There are lots of ways to invest in real estate. One item which we should understand thoroughly before beginning our investment program is the taxes, and how they effect real estate investment. Click for tax information.

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Who will you choose to represent your interests?  You will likely spend 5 to 30+ hours with this person throughout the transaction.  Have you thought about what your needs are in a Realtor?

First, before you begin ask yourself whether or not you want to risk your largest investment decision without professional guidance.  Someone who can educate, guide, facillitate, and protect your investment.  That person should be available by phone, e-mail or in person to answer your questions in a timley manner.  It is important to hire a Realtor who is thorough and has excellent attention to detail. 

A Realtor should take the time to listen to your family’s needs, educate you on the different locations within the perspective areas.  He/she should offer a short and long term scenario of that area’s apprecitation for long and short term sales. You can expect a miriad of questions and exchanges of information to determine your needs with reference to location, schools, re-sale, orientation, size, age, cost, design etc.  It is highly recommended to use a grading scale when viewing homes to see if everyone is on the same page for the decided criteria.  Once you find the home that best fits all of these needs

Ultimately a Realtor is hired by “you” and then it is up to that Realtor to satifactorily perform their job using their experience and expterise to protect your interests and make the transaction seemless and enjoyable.  Did you know a Realtor can be fired? 

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In a competitive industry ranking a realtors success is key is providing proof to consumers of their abilities to sell homes in a changing market.  RE/MAX One Realty now holds 4 of the top 100 positions of both North and South Carolinas Teams.  Marti Hampton, Linda Craft, Kelly DeBrosse & Sharon Evans have joined under one roof and have proudly pushed RE/MAX One Realty yet again to the #1 position of THE MOST PRODUCTIVE OFFICE IN BOTH NORTH AND SOUTH CAROLINA.  With the help of these power house teams their office out sells other real estate offices, selling more homes per agent than any other real estate office for the 3rd year running!  Last year 3 of them were in the top 10!  We’re hoping to see all four in the near future!

Team Kelly DeBrosse is the youngest of the 4 teams having joined RE/MAX just 3 short years ago.  Their strides in performance have far exceeded the expectations of new teams and are leading the way for others to join and follow.  To find out more about how they are building their businesses and selling more homes across two states come to one of their weekly meetings!  Find out more by visiting their websites through one of the links on this page!

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Real Estate in Wake County has been in a growth stage for years but now the surrounding counties are feeling the impact.  Franklin, Johnston & Granville counties have hit new levels of growth this past year.  Custom built new construction is leading the way as their numbers increase with the new businesses entering their areas.

Builder R.G.Tec Securities has been putting up commercial and residential properties in the Granville and surrounding areas for more than 20 years.  Their latest in the Ravens Wood subdivision just 1 mile east of hwy85, 15 minutes from Durham & Raleigh.  All you have to do is supply the idea and they will build it!  These homes are truly custom built.  They have full movie theaters with drop down screens covering the entire walls and multi-source whole house sound systems.  Pond views, lots larger than an acre.  Even the driveways are done top notch with stamped concrete and circular drives that have the subdivision emblem stamped right in!  This gated community is just one of several of their projects ranging in price from 400k to 700k.

It’s not all about the high end homes, there are other subdivisions where you can get 3000 sq/ft on ½ an acre with finished basements for less than 300k!  The values are amazing and they are still custom built!  You get to pick the floor plan, the colors, cabinets, counters, fixtures, what ever your heart desires.  If you can dream it they can build it!

Real Estate is moving North but too far – just 15 minutes!

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In 2004 it was predicted that Wake County would double in population over a 10 year period.  Today, almost 2.5 years later it is on track to do just that.  Major companies partnering with national builders are making that statistic a reality.  There are over 2389 new homes for sale and more than twice that currently under construction to be completed by the end of the year.  Major companies such as Caterpillar, John Deer, Cisco, Biogen Idec, IBM, Quintiles Transnational Corp., Lenovo, Duke University and North Carolina State University just to name a few are expanding bringing more jobs to the area.  Beautiful golf communities are drawing in mature crowds of semi-retired, educated empty nesters to add to the community growth.  All of this is of course in addition to the areas TECH & Medical strengths which had already earned it national acclaim.  What used to be a small town is now expanding rapidly and will soon be the hottest relocation spot in the US.

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What makes an agent “Your Agent”?  This is a loaded question, right?  Not to Debbie Boosinger of RE/MAX One Realty.  Within her very first year with us she has proven time and again that her expertise not only nets her clients more cash in hand but her advice has also kept them coming back time and again.

Most people do not spend too much time contemplating whether or not the home they would like to purchase will be a good investment over time.  Two times in the past 12 months Debbie has had clients who thought they would be purchasing a home for a minimum of 5 years and had to sell within 9 months of their purchase!  This may sound unsual but it happens more often than you would think!  Why are Debbie’s clients so eager to work with her time an again?  Because in the course of their purchase she was very careful to investigate the future potential of their purchases prior to making an offer!

Now they are even more pleased with her because not only will their homes re-sale be very smooth it won’t put them behind the eight ball!  In a market that takes an average of three years to break even on a re-sale they are moving forward at record speed without taking a loss!  Yes!  In less than one year they can move without taking a loss!  Do you have an agent looking out for your long term interests?  If not, call her ~ you won’t be disappointed!

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This beautiful victorian home was built in 1830.  It was the very first home to be built in the Creedmoor area, before there was even a city established this beauty sat tall and proud in what is now Downtown Creedmoor.  The property is zoned for both commercial and residential use and is the perfect location for small businesses such as a tea room, an antique shop, a wedding house or live in part of it and run a business out of the remainder.  There are so many possibilites.  It was saved by a local builder and renovated with charm and character.  Just next door a two building retail strip was built with matching decor!  Don’t wait . .  this property is valued at over $400k but the seller is only asking $350k! 

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Raleigh, Cary, Wake Forest & Morrisvile have been the cities most plastered in local news for growth and expansion over the past few years.  The best kept secret is a small town just fifteen minutes north of Raleigh and just as close to Durham.  Everyone knows it’s a street but did you know that the city of Creedmoor is the next buzz in Real Estate around the Triangle?  Location is key in any real estate investment and local investors are swarming to the small city of Creedmoor to get first pick on local land for residental and commecial investments.

Already large builders such as Anderson Homes, Westminister, & Centex have bid, closed and are beginning to develop in Creedmoor.  There are large commercial companies looking at surrounding the new parkway which includes over 350 new homes.  Even, restaurant chains, movie theaters & a YMCA are coming to town!  For investors small and large this little town is beginning to show huge growth.

Only 10 minutes away in Butner there is a new state of the art hospital to be finished in 18 months bringing 500+ jobs to the area.  Wait, there is one more!  Oxford is also just 10 minutes away!  For thoses keeping up on Triangle Real Estate Trends, make sure to keep your eye on Creedmoor!

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Real estate encompasses all of my passions in life. I have always been addicted to the newest technology, the internet and of course the cell phone. I graduated from Queens University in Charlotte NC in 1998 with two degrees, Psychology and Business. I found my true passion in 2002 when I entered the world of real estate. My love for helping people, providing valuable guidance, running my own business and meeting new challenges has been exhilarating.

Having moved all over the country at a very young age I considered myself a professional transfer student. Born in Indianapolis, raised in Soldotna Alaska my experiences have been wide and plentiful. I fell in love with North Carolina back in 1993 when I was awarded the Young Woman of the Year award for the state of Alaska. I then went on to win Alaska’s National Teenager award and was honored with a second trip to the area. Both of these competitions were based on our competitive abilities in school as well as our leadership skills. I have always believed it was my talent that made me stand out in the competitions. In 1988 I earned my black belt in Karate, (Japanese) and have been competing ever since.

You may be familiar with P.F. Chang’s China Bistro at the Crabtree Valley Mall. My husband of 10 years and I moved to Raleigh in 1999 when he began the difficult job of opening the restaurant, he is the operating partner. He has taught me how important a strong commitment to customer service is. It was at this point that our family began to grow. You can see I am the proud mommy of two girls, Kaitlyn 5 years old, and Kristen 4 years old.

Being an exceptional realtor is a commitment to fully serving your clients. It is my commitment to my clients to raise the bar on their expectations.

Hello! Thanks for visiting. This web site is designed to be your complete Real Estate resource. It has been built to assist you with all your needs. The buttons will link you to information that will help answer your questions. I am always available to offer you personal, one-on-one help with what some say is the biggest decision you will make in your life. If you have any questions, please don’t hesitate to call or e-mail me!

I have built a reputation for client satisfaction, and I am devoted to making your move as easy as possible. You will have the added benefit of working with an agent who understands your needs when buying, selling, or relocating. Finding the right home is only the beginning. I will assist you every step of the way to ensure smooth sailing.

Thank you for visiting my site. Please bookmark it, and visit it often. I look forward to hearing from you.

Raleigh NC Realtor, Raleigh Buyers Agent, Raleigh NC Homes for Sale, Raleigh Houses for Sale, Raleigh North Carolina MLS Search, Raleigh Real Estate, Raleigh Real Estate Agent, Raleigh Realtor, Raleigh Remax Agent, Triangle Area Realtor, Triangle Area Homes, Triangle Area Real Estate, Raleigh North Carolina Area Real Estate | No Comments »