Dear Investors,
 
It seems as though 1 month goes by and the whole world changes. What we are witnessing is profound to say the least. On October 1st we were seeing yet another downdraft in the stock market which was followed by several more. Clearly we have seen no lack of volatility. While this was occuring I wondered to myself how things have fared over the last 10 years. As I asked and began to answer the question I became even more curious about the various investment vehicles available and how they have fared. The listing examples used below are real. They are very good examples of excellent investment opportunities now available in the Raleigh, Chapel Hill, Durham & Eastern North Carolina area. While these are multifamily examples we are actively working numberous short sale and REO (bank owned) opportunities too!
 
To make things relatively simple I went to Yahoo and downloaded the last 10 years of Dow Jones Industrial Average (DJIA) closings, 10/1/1998 - 10/1/2008. Today, 12/1/2008 it sits just a tad lower. I then wondered what would have happened if I had put $33,000 in a duplex (because I was looking at a $165K duplex) and also the same amount in the DJIA, using the DJIA as a pricing point.
 
What I learned was shocking to say the least. To arrive at the value for the duplex investment I made a few VERY conservative assumptions. First, 20% down payment, 7% interest rate, 3% long term appreciation(Raleigh has seen more). Additionally, I assumed only a 3% cash return from the duplex.
 
The original $33K if placed in the DJIA would be worth $32.9K today, yes, LESS than the original investment. But the same $33K investment in a duplex with the above assumptions would be worth $119.2K+ or $86.3K MORE than the same $33K invested in the stock market. I realize the real estate market in some areas has seen a tremendous drop over the last couple years, so I am not suggesting that the duplex option is like a money market account. However, even in the areas that have experienced a tremendous drop keep in mind that they also saw insane and unsustainable gains that place their average return at well over 3% appreciation.
 
Here is a graph of the results.

We are continuing to see a very steady market in the Greater Raleigh, Chapel Hill and Durham areas. Research Triangle Park is a hot spot in the nation for job and net population growth. Over the last year we even saw an average of 3-5% increase in prices, according various sources. Case-Schiller, Triangle MLS, etc.
 
As always we are looking for great deals and have included 2 immediately available opportunities which I have attached here. These duplexes are in managed communities with lower than average vacancy rates and higher than average rents. Not to mention that they are low maintenance newer construction. Gresham Hills(Raleigh) is 6 years old and Ripley Woods(Wake Forest) is 1 year old. Financing IS still available.
 
MUL - Buyer Full Report
 
(or copy http://trianglemls.mlxtempo.com/Pub/EmailView.asp?r=464950315&s=TRA&t=TRA)
 
Should you have any questions concerning the attached properties or even the analysis above, feel free to give me a call!
 
Best Regards,
 
 
Scott Snyder
Owner / Broker
Raleigh Investment Real Estate
 
O 919.794.4104 x1
M 919.271.0284
www.raleighinvestment.com ... Your Investment and Multifamily Specialists