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Driscoll Enterprises Inc.

Investing in You and Your Future!

 

Issue 18 - December 2012
In this issue
Dear Family and Friends
Educational Corner - Take Action or Else, A True Story!
Industry Related News - Will 2013 be the Year of Recovery or Relapse?
Laughs and Interesting Stuff
Projects and Opportunities

Dear Family and Friends,

 

It's here, it's finally here, Christmas.  How we love Christmas!  This is a time when we think about what we can do for other people.  What is that special gift we cab give?  This is when we get to watch the faces of families and friends who open the gifts we give them.

 

We understand that not all our readers or even family members are surrounded by friends and family and may feel lonely especially during this holiday season.  If that is your situation this year we hope next year will be more joyful for you.

 

We encourage all of our readers to perform one act of service during the holiday season that can lift the burden of another person and see if that doesn't help you feel the spirit of Christmas better.  What is even more special is to perform an act of service anonymously! 

 

This will be our first Christmas without little ones in our house.  We still have full grown children at home but no little ones.  I wonder how different it is going to feel?  The good news is by early afternoon we will have a houseful, just like Thanksgiving.  The one thing that is different on Christmas is there is no large meal so that Mary Jane can also enjoy the day with everyone.  There is plenty of food, but you just help yourself as the day progresses.

 

We hope you all have terrific Holidays and find joy and happiness as you provide gifts/service to others.

 

Quote of the month: "You grow up the day you have your first real laugh--at yourself." - Ethel Barrymore

 

To my accountability buddies, this year did not turn out the way I wanted it to.  I simply didn't want it bad enough to follow the plan.  The good news is tomorrow is new day.   

 

Kevin and Mary Jane

Take Action or Else, a True Story!    

 

Our regular readers know that we recently purchased two duplexes with the idea we would either fix them up, rent them out, and then sell them or just flip them to another investor.  We decided to try to flip them first.  We immediately had a lot of interest but mostly people looking for financing.  What we needed was a person with cash because banks don't generally loan money on a property unless it is fully functional, i.e. livable.

 

After about 8 weeks we did have interest from an investor who made us an offer lower than we wanted but which we finally accepted since the properties were not local and our exit strategy was to flip them as quick as possible.  Contracts were prepared and sent to this investor but he didn't sign them right away nor did he send his earnest money.

 

He continued to communicate his interest in the properties but without signed papers and earnest money we became concerned.  I finally talked to him and let him know that while I wanted him to have these properties we had to keep them on the market until he took action.  Several weeks passed and during the last three of those weeks we tried to contact this investor but received no response.   

 

Then this week another investor contacted me, went to see the duplexes and made an offer on the properties.  Since I the first investor seemed like a very nice guy and really did want the first investor to get the properties, I implemented one of my new skills and sent him a text that we had another offer.  Was he still interested?

 

It wasn't an hour later when he called me indicating he was still interested and wanted to know how he could save this deal.  (He knew it was a very good deal.)  This was good news for us because now we had two offers.  Investor "one" is now in the backup position because investor "two" recognized a great deal and took action by signing the contracts and provided earnest money.  He also agreed to a very quick close date.

 

The point of this story is that investor "one" lost a potentially very lucrative deal, perhaps a hundred thousand in profit, because he didn't sign the contracts and provide a couple thousand dollars in earnest money to take the properties off the market.  Both investors recognized the great deal but only one acted decisively on this opportunity.

 

Investing almost always involves some level of risk which must be weighed against the potential gains.   Successful people take action, not reckless action, but educated action.

Will 2013 be the Year of Recovery or Relapse?

 

Our friend, Steve Loffler, recently shared this information with us.  Home prices finally hit a bottom in 2012.  So will 2013 be the year of recovery or relapse?   

 

In many areas, potential buyers now have something they haven't had in a long time: urgency.  This next year will be the first time since 2006 where prices ended the previous year in positive territory. Surveys already show that buyers' expectations of future home prices have improved.

 

"Every single thing about housing is flashing green," said James Dimon, chief executive of J.P. Morgan Chase, in an interview with CNBC last month

.  Household formation is rising, inventory is falling, and affordability is near a record high.   Why buy real estate now?   

 

 

First, institutional investors are stabilizing the hardest hit markets by purchasing massive amounts of foreclosures, fixing them up and renting them out.  The Wall Street Journal reported in October that "Blackstone Group has become the biggest US investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 houses in eight metropolitan areas.  "The attraction is double-digit returns at a time when most bonds and other income investments yield very little."

 

Second, low prices and unattractive returns on other assets have fueled enormous investor demand for housing.  While investors have begun to pare back in some of the hottest markets, such as Phoenix, they've been on a tear in others, such as Chicago and Atlanta.

 

Third, for local investors, inventory (homes for sale) in the DC metro area is down over 30% from last year at this time.  Rising prices could eventually encourage more sellers to put their homes on the market to move to new or different homes, which could help boost demand even further.

 

And fourth, less than 25% of the population are able to qualify for a mortgage due to current strict lending requirements.  This reaffirms the institutional thinking that the time to buy and hold is now.

 

Translated: This is a great time for investors with cash or great credit to buy real estate.

 

I add to Steve's comments that it is a great time for investors with cash or great credit AND knowledge or knowledgeable partners to invest in real estate.   But keep in mind that all real estate markets are local, you must understand your market to increase you success rate.

Laughs and Interesting Stuff 

 

 

Her Sunday Best 


A little girl, dressed in her Sunday best, was running as fast as she could, trying not to be late for Bible class.

 

As she ran she prayed, "Dear Lord, please don't let me be late! Dear Lord, please don't let me be late!"

 

While she was running and praying, she tripped on a curb and fell, getting her clothes dirty and tearing her dress.

 

She got up, brushed herself off, and started running again!

 

As she ran she once again began to pray, "Dear Lord, please don't let me be late...But please don't shove me either!"

 

 

Death of an Elderly Spinster

 

An elderly woman died last month.

 

Having never married, she requested no male pallbearers.

 

In her handwritten instructions for her memorial service, she wrote, "They wouldn't take me out while I was alive,

I don't want them to take me out when I'm dead."  

 

 

 

And God made Woman

 

During Sunday School they were teaching how God created everything, including human beings.

 

Little Johnny seemed especially intent when they told him how Eve was created out of one of Adam's ribs.

 

Later in the week his mother noticed him lying down as though he was ill, and she said, "Johnny, what is the matter?"

 

Little Johnny responded, "I have pain in my side. I think I'm going to have a wife."

 

 

The 10 Commandments

 

A Sunday school teacher was discussing the Ten Commandments with her five and six year olds.

 

After explaining the commandment to "Honor thy father and thy mother," she asked, "Is there a commandment that teaches us how to treat our brothers and sisters?"

 

Without missing a beat, one little boy answered, "Thou shall not kill."

Projects and Opportunities 

 

Our Lynchburg duplexes should close by January 10th.   


We are selling our 4 bedroom, 2 bath, home in Columbia SC.  Approximately 2,000 square feet.  Interior was totally renovated a three years ago.  Granite in the kitchen.  New appliances installed during the renovation.  Asking $89k, recently rented for $1050 monthly, new estimated rent will be $1150 per month.    

 

We now have the title to the abandoned manufacture home in our smaller manufactured housing community.  Now we have to decide if we are going to fix it up and sell it or sell it as is. 

 

We are continuing to locate used mobile homes, set them up in our communities, and sell/rent them.  If you want to get into the rental housing business for around $15,000 and get a 10% return on your investment then this may be the right opportunity for you.

 

Did you know that you can invest in real estate from your IRA or other retirement account?  You can also use your stock portfolio to invest without ever selling your stock? (Think leverage, leverage, leverage!).  These investment secrets aren't well known but they are perfectly legal.  Contact us and/or click on this Investment Secret link to learn more. 

We are always willing to share information with you so please feel free to contact us

 

Driscoll Enterprises Inc. 332 West Lee Hwy., Suite 200, Warrenton, VA 20186

703-398-1188 or 800-887-0001

[email protected]

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