NRVLiving - Real Estate. Simplified.

Investors Can Now Own More Properties

In a stroke of genius - well, a reaction to what was a poor decision in the first place - Fannie Mae has now increased the investor loan limits from 4 properties to 10.

Limiting serious investors to 4 properties just didn't make sense - these folks don't deal with numbers like that.  We're not talking loans for weekend warriors who want to flip a house or two, or invest in a condo.  These new limits are designed for the serious investor, the ones who have excellent credit, money to put down (20% or more), and they're set up with tighter guidelines than before.  And that, in my opinion, is a good thing.

This opens up a number of opportunities here in the New River Valley, specifically in Blacksburg and Radford.  I've said it before and I'll say it again ... and again ... and again - investing in college communities makes sense.  For the past couple of years at least, Virginia Tech has announced an on-campus shortfall for residents, which means students are having to find off-campus housing.  Investors are smart to snap these up, because not only do the universities get larger, but so do the periphery of businesses that follow universities.  Where there's a university, so also there are research facilities, medical schools, design and engineering firms, and more.  Housing becomes a premium.

Before you say I'm a cheerleader for housing - which I am, but I want to be an honest cheerleader - I'm not suggesting everyone jump in the housing pool.  However, in the past two weeks I've worked with an investor, two sets of parents with kids at Virginia Tech, and one first-time buyer who have specifically targeted our market because of the university-focus.

That's proof enough.  Thanks, Fannie Mae.

EverythingNRV.com and Housing Shortages

Tim Jackson quoted me in a piece he did at EverythingNRV.com entitled "Two Sides of the Coin".

I love seeing people pick up on what the market's doing here, and I thank Tim for including me in his piece.  I did find much different data than he reported with regards to sales figures for both November and December of 2008 and 2007, which I addressed in the comments.  Nevertheless, thanks to Tim for writing and asking me to participate, be sure to check out EverythingNRV.com and add it to your daily read!

---------

Seems like we covered this last year, as well, but Virginia Tech has announced another shortage of housing for on-campus rooms.  Let's see ... buyers' market, great loan rates, students having to move off-campus ... who might be interested in an opportunity like this? 

Investors.  Parents.  Students with documented sources of income.  Email me ... we need to talk. 

Think YOUR Robot's Cool? Look At What This One Can Do.

Dr. Dennis Hong is a friend of the blog, and we are a friend of his, so anytime his RoMeLa group does something noteworthy (which seems to be a LOT) we try to give him some pub. So check this one out ...

Earlier in December, Dr. Hong's RoMeLa humanoid robot DARwin conducted the Roanoke Symphony Orchestra in Leroy Anderson's "Sleigh Ride" ... that's right, DARwin, a robot, conducted a symphony.  He's told me before how it's done, but I don't understand a word.  It should be noted this isn't a preprogrammed response to the song - this thing is actually conducting and responding.  Freaky.  So enjoy, and congratulations to Dr. Hong and his amazing group of students.  (It takes a couple of minutes to get into the song, but well worth the wait).

Updated 12/19 8:21am And it looks like Hong and his group have won another international award. Underachievers - just imagine what they could do if they actually applied themselves. :)

Here's How To Get Your Mortgage Under $1000 a Month

Looking to buy a house in Southwest Virginia?  Perhaps you've been looking at homes in Christiansburg, or in Radford, and you just don't think you can afford it.  I'd remind you that the opportunities are there for buyers right now for two reasons - (1) the inventory available, and (2) the rates that local lenders are willing to lend at.  Let's look at the numbers ...

Assuming a house is priced at $150000, and the interest rate is 5.00% (the current USDA rate), here's how your monthly payments would break down on a home in Christiansburg purchased for $150000 with NO MONEY
DOWN:

Principal & interest:       $805.24
Prop Taxes (estimate):     114.83
PMI (None with USDA):             0

Total Payment:             $920.07

Imagine - a $150000 mortgage for less than $1000 a month.  And it's important to note that this is a USDA loan, with a secure 30-year fixed rate and NO prepayment penalty.  STILL think you can't get a loan?  I promise you that it's still easier than you think.  Contact me, I'll help you search for your best option with local lenders who have money to lend.

This can work well for many buyer profiles, but what one buyer often has a job, credit and no money?  Recent college graduates.  Virginia Tech and Radford alum, let's see how we can make this work for you!

Updated 12/19 8:05am - Stan Norris of Prosperity Mortgage emailed me to take me to task a bit, and he's right.  There are a number of variables that need to be considered regarding mortgages, including whether points are paid up front, whether the Seller is paying some closing costs, what type of property it is, etc.  This isn't an endorsement of the USDA program in every case - your local lender and agent can walk through the best options with you to determine what makes sense.  And I forgot to include insurance costs, as well - that's kind of important.  According to Eric Johnsen, a good rule of thumb to determine monthly hazard insurance on a residential property is to multiply the market value x .0025, then divide that by 12.  So in the example above, ($150000 x .0025) / 12 would mean a monthly insurance cost of $31.25 ... still less than $1000.

Virginia Tech At the Forefront of Sustainability Issues

I've written before about Virginia Tech's focus on energy research and sustainability, even going so far as to say that the university's focus on these issues is a nice example of putting their money where their mouth is, with no outside pressure.  And I believe that.

And appointments such as these lead me to believe it even more.  Sure, Dr. Leo's appointment is one that is made to further the university's research advancement goals and bring in more money, but you can bet they'll be putting much of these initiatives in place right here on campus. 

Kudos to Dr. Leo and Virginia Tech.  Once again, Inventing the Future.

The Colosseum Wasn't Built In One Day

And this one won't be, either.

A few days ago, I needed a break.  I had been in the office all day working on some things, and my craving for a Diet Pepsi Max (yea, I'm one of the 31 people across the nation that actually like the stuff) kicked in.  One of the many reasons I like my office is that its an easy walk to a local gas station, so I hoofed it down to pick up that invigorating cola and then headed back.

On my way back I passed the site for The Colosseum, so I snapped some photos of the excavation.  It had been a while since I had stopped in and so I thought I'd capture the moment.  Just a lot of dirt right now ...

There's a lot of Blacksburg history in those layers of dirt:

Dozens of piles of dirt looking back towards South Main Street:

Someone's going to have a killer view:

E-Waste Recycling Event

Have old electronics piling up, and don't know what to do with them?  Old computers, radios ... we've all had them at some point, and you've likely wondered what to do with them.  I've got an easy solution for you - bring them to the second annual E-Waste Recycling Event, to be Saturday November 8 from 9 am to 3pm.  And it's FREE.  The event is a joint venture between Virginia Tech and Hollins University.

Click the image below to see the full list.

It's important.  From their website:

Along with many other serious issues facing our environment, the world is experiencing a crisis in electronic waste. Toxic materials such as lead, mercury, chlorine and bromine are commonly used in producing computers and other electronics, and if these devices are dumped into solid waste systems after they have outlived their usefulness, the toxins can seep from landfills into groundwater or be released by incinerator emissions or ash.

Hazardous e-waste is often sent to developing countries for recycling. However, once there it is often simply discarded. Even if recycling occurs, the process used in those countries is very dangerous to workers and pollutes the general environment.

Load up the cars, and bring in that old stuff.  There are a LOT of items they'll take, but some they can't - check their website for a more comprehensive list.  It'll be held at the old Blacksburg Middle School, 501 South Main Street in Blacksburg.

Thanks to Natalie for pointing this out!

Stuart Mease On Supporting Local Business in the Roanoke and New River Valleys

Rackspace, and it's webmail division of Mailtrust - which, coincidentally is Blacksburg-grown - IPO'd in August 2008, yet very little was written about it in the local paper.  Stuart's contention is that success stories like Mailtrust, and so many others located throughout our region, need the support and publicity that all of us can provide.

This is important to real estate for a couple of reasons.  First, Stuart mentioned the term "creative-class" jobs when he referred to Mailtrust's initiative to bring 100+ new jobs to the Blacksburg community within the next 18 months.  I'd not heard the term "creative-class jobs" before, but I like it ... creative class jobs are in demand in what has rapidly become a global economy, and the workforce created by these jobs encourages not only new businesses creation in the region, but also the relocation of existing businesses - and therefore their jobs as well - into the region.  These are not positions that are outsourced; they are jobs that are created, maintained and promoted within the region, and Mailtrust is but one example of this local talent.

Thanks to Handshake 2.0 for sharing the video.

They Call It The Tower of Power

Coal-fired power plants.

Critics say they're dirty, that it has enormous leave-behinds in the form of ash, pollutants like sulphuric acids, arsenic and loads of carbon dioxide, not to mention the costs - both quantifiable and non-quantifiable - for mining, disposing of leave-behinds, and illnesses in the local communities.

Doesn't sound like a really pleasant thing to be around, does it?  Did you know that Virginia Tech has it's own power plant, and that it's fueled by coal, that dirtiest of fossil fuels?

Before you jump up and start making picket signs, check out this article by 16 Blocks Magazine - it might just give you a different perspective on new ways that 800 pound gorilla we call Virginia Tech is discovering to serve an increasing demand while minimizing its' impact.  Think it isn't working?  The systems installed in the Virginia Tech facility have resulted in "a ninety percent reduction in emissions and a smoke stack that hardly seems to smoke at all. By industry standards, an emissions opacity of ten percent is considered good. VTPP's opacity hovers between two and three percent, a level of smoke invisible even in broad daylight."

THAT's making a difference.

More photos of the plant on Flickr.

Just announced today, Tech's new energy initiatives.  It's all part of Sustainability Week here in Blacksburg.

16 Blocks Magazine supplied the photo.

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?

Sustainability Week in Blacksburg - October 20-25

I mentioned Sustainability Week recently, but there wasn't much information available. 

Now, there's a lot more.

• What is Sustainability Week?
• What's happening?  Short version or long version.

Why is this important?  Taking care of our environment is more than a fad, it's the right thing to do.  We have a legacy to leave - what will it be?

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?

Weathering The Real Estate Storm

Zach Crizer of The Collegiate Times called me early last week and asked "why do people decide to invest in college towns?"  We talked for a few minutes, and later in the week he posted "Blacksburg Real Estate Weathers Financial Storm".

Thanks, Zach, for the chance to talk with you, and to be quoted in the same article as someone as well known in his field as Dr. Koebel was an honor.  He certainly described it in much more intelligent terms, but at least I didn't stutter.

I appreciated the chat, Zach, call anytime. 

Wow.

Will The Colosseum Stand The Test of Time?

Blacksburg's newest development project, The Colosseum, has broken ground.  Here's a link to the recap in Multi-Housing News.

I wrote in January that I thought it was too much for the area - too much product right now.  I still do; condos are lagging behind the rest of the market.

Only time will tell how this project does. 

Just like to say that this picture was taken by my wife on a trip she took to Italy over the summer. It's my absolute favorite - I'm so proud.

The Colosseum in Blacksburg

A few weeks ago, I attended the groundbreaking ceremony for the new Colosseum project in Blacksburg.  The event featured speakers, all kinds of food and drinks, Roman gladiators (I mean, honestly - can you name something "The Colosseum" without gladiators?) and golden shovels.  I took video to show you, in fact.

Stupid video - somehow, everything was corrupted and I lost it all. 

So I'll recap the project here, as best I can.  Sorry about that, but I DO have answers to some of the common questions people have been asking about the project.  From the project's marketing department:

What exactly is a condominium hotel - Condominium hotels operate as a hotel but also add the legal and financial structure of a condominium.  Buyers receive a deed for a real property interest that they can in turn sell whenever they choose.

How is this different from buying a regular condominium - In addition to the investment value of a condominium, buyers can take advantage of the benefits of a luxury hotel.  When the condominium unit owners stay at the hotel, they have access to all of the hotel's amenities, including its restaurant, bar, pool, fitness and spa facilities.

What happens when I'm not using my condominium - When the owners are not using their suites, they can be made available to rent through the hotel's voluntary rental program.  The Colosseum is managed by Salamander Hospitality, an award-winning manager of exclusive hotels and resorts, so buyers don't have to worry about maintaining a property away from home.

What makes The Colosseum a luxury sports condominium hotel - Conveniently located near the heart of Blacksburg's business and shopping district and two miles from Lane Stadium and Cassell Coliseum, The Colosseum is perfectly designed for Virginia Tech alumni and fans who want to support Virginia Tech athletics.  Game day enthusiasts can also take advantage of extras such as child care, game shuttles and underground parking.

How many units are there - The two tower, six story, 241 unit condominium hotel offers luxury fully furnished studio suites, or a one or two-bedroom suites.

How does The Colosseum support the local community - The Colosseum has pledged to donate a portion of the sale of each unit, up to $500000, to the construction of the new basketball facility.  The donation will be made in the name of the purchaser, who will also receive Hokie Points toward preferred seating and parking for their contribution.  Likewise, The Colosseum has committed to endow a permanent $100000 scholarship for a student athlete pursuing a degree in property management or hospitatlity and tourism management, and offer internships to building and construction students during the construction phase.

Pictured above, left to right:

Steve Semones, Balzer & Associates
Daryl Andrews, The Colosseum
Mayor Ron Rordam, Town of Blacksburg
Mark Kinzer, Unlimited Construction
Mike Burnop, ISP Network Analyst and Virginia Tech Hall of Famer
Todd Meckley, Entasis Design PLLC
Random Gladiator
                       

Who Knew Reading Could Be So Much Fun?

Yesterday, I had the opportunity to speak in four sessions at the NRV Association of REALTORS® annual trade show and education fair.  The topic was social networking and media, something that I've been covering regularly lately, it seems.

In the sessions, we talked specifically about the NRVLiving Real Estate Blog, as well as Twitter - two tools that I really find value in.  There are any number of social networking sites, however, with many related to real estate (and of interest to the session members yesterday), while most are NOT even remotely related.  Facebook, Myspace, LinkedIn, YouTube or Flickr might be ones you've heard of before, and there are seemingly thousands more; this blog would be considered a social media site, in fact.  

I've been writing this blog for two years this December, and I read a lot of other blogs in order to find topics I want to discuss, laugh about, etc.  On average, I'd guess I likely read five or six times more things than I ever consider writing about.  As I talked with people yesterday, I realized that there are three main benefits I've  received from writing here.  They are, in order of importance:

• Education - I've become a much better agent and student of real estate as a result of the reading I've done.
• Relationships - The relationships with clients, readers, even other agents as a result of reading and commenting on other social networking sites has been a huge benefit.  Professional relationships, personal relationships, they've all meant a lot to me.
• Impact on my business - Obviously, I need to be able to quantify my efforts, and based on the education and relationships things like this blog and Twitter have fostered, I can do that.

As I said, I read a lot.  Most are industry-focused blogs about real estate, sites like VARBuzz.com and AgentGenius.com, as well as dozens of blogs written by REALTORs® and lenders from around the country - Blown Mortgage, RealCentralVA, Real Estate Shows, and Jay Thompson all have tabs open in my browser right now, and there are another 200 unread items in my feed reader.  Most of my reading is real estate-related, but there's some golf and Hokie stuff in there, as well.

What do you like to read online?  What blogs do you check on a regular basis, or have delivered to your inbox.  Share some of them in the comments, and I'll post a follow-up post with everyone's recommendations - maybe we can all find something new and exciting to read!

Photo credits.

Parents - Need Last Minute Housing For Students?

Virginia Tech parents, are you in a bind for housing this semester?  Tired of paying rent, and would like to move your child into a place that actually EARNS you money every year?

Whether your student is living on campus or off, most housing options have been decided at this point.  However, there are some folks out there that still need housing in the Blacksburg area immediately, or are just fed up with the rental options.  There ARE some options available, but we need to act quickly.

If you need:

• a one or two bedroom place that's vacant and ready to go,
• low HOA dues with no exterior maintenance so your child can study :) ,
• a place close to public transportation,

then I've got some ideas. 

If you want:

• strong appreciation on your investment,
• thousands of potential renters,
• tax benefits and no landlords,

we should talk. 

We need to act quickly though - contact me and we can get started!

Photo credit

Congratulations to the Queen

Completely random post, but I thought the news was very cool and wanted to share it.

Virginia Tech hurdler Queen Harrison is headed to the Olympics. 

That's right, rising junior Queen Harrison will be representing the United States in Beijing, after taking second in the 400-meter hurdles at the U.S. Olympic Trials.  She's the second Virginia Tech athlete to represent the US at the Olympics.

Congratulations, Queen!

New River Valley Renters - This Post Could Save You Thousands of Dollars!

Scams abound, and one I just read about really hit home to me - wanted to share it here.

We have a lot of renters here in the New River Valley, particularly centered around Blacksburg (Virginia Tech) and Radford (Radford University), but in many other areas of the Valley as well.  The summer is a hot season for renters, as people move in and out around the various school systems and universities.  That hot rental market is also a great place for scam artists to move and "work", as evidenced by this story by Maggie Dokic in Miami FL.

I plan on sending this post to some local law enforcement to see if they have any updates they can provide on how renters can protect themselves, but Maggie makes a couple of good points.

• Check property records online to verify the person signing the lease is truly the owner, or is authorized to sign leases on behalf of the owner.  Each County has its own record system, here are a few:
  
  - Montgomery County (including Blacksburg & Christiansburg records)
  - City of Radford
  - Giles County
  
  
• Be sure to know exactly where the checks will be mailed, so there's a physical address to track.
• If they don't verify your credit, be very WARY!  If they want first and last months rent in cash, RUN!

I'd add that working with a property manager is a must for making sure a property is above board, and I'm happy to hook you up with some of the best - just email me for a list.  Most landlords in the New River Valley are above board and honest, but that's not to say there aren't unscrupulous folks out there as well.  Hopefully some of these tips will help renters in the New River Valley protect themselves a little more, and not experience what this poor family in Miami is up against.

Updated July 1 11:00am - received an email from State Farm agent Eric Johnsen this morning as a follow-up to this post, wanted to share it in its entirety.  He wrote:  "with two large universities we do have a number of student renters.  That's one of the nice things about being a landlord here, we have a large pool to advertise rental properties to.  However, many students are either forced or conned into buying renters insurance.  I am an insurance agent, obviously, and I have something to say about this.  Some property managers require renters insurance, and if that's the case it's hard for the renter to overcome.  Some insurance agents sell it, and this is where we can run into a problem with unscrupulous business practices.

If the student lives with their parents when they are NOT attending school, and the parents are homeowners, it is very unlikely that the stdent needs additional coverage.  Their personal property is covered under their parents' policy, subject to the policy deductible.  The liability coverage would extend from the parents' policy as well.  If the student had to evacuate and live elsewhere (such as when Katrina hit New Orleans and students were scattered), the policy wouldn't extend for THAT additional living expense. 

Insurance agents who are selling this policy to those students who already have coverage is a bit questionable.  If that person is no longer a student, out of their own living the big life now, THEN it's time ofr renters insurance.  Otherwise, as long as they fit under mom and dad's umbrella as a permanent resident of the household than they should be covered under their parents' homeowners policy."

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?

Good News For Blacksburg Real Estate Investors

More good news for Blacksburg real estate investors.

If you have questions about investing in Blacksburg real estate, whether or not investing makes sense in a college town (because it doesn't always), or want advice on property management, email me and we'll run an investment analysis for you.  The numbers don't always work, but we'll take a look with you and help you decide.

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?

Virginia Tech Showing Commitment to Sustainability *Updated 6/3/08*

This is one step towards creating a better campus climate.

The Roanoke Times chimed in with an editorial a few days later.

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?

Short Shorts

There's a lot that's been happening recently, and I've gotten to virtually none of it here on the blog.  So ... allow me to introduce Short Shorts, the category established for when things just get a little bit crazy.

• Can the Roanoke Valley and NRV Valley coexist?  This guy tells you what he thinks.
• Portions of Lee Street in Blacksburg closed through June 16.
• Car enthusiasts unite this weekend.
• NOT the home of falling prices in Roanoke.  I'm sure BURG is all over this.

That's it for now.  A couple of new posts coming out shortly, specifically my take on whether now is a good time to buy and sell or not, as well as some thoughts on why it just got tougher to buy a home if you're self-employed.

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?