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Updates on Outer Banks, Read Estate, Investment Opportunities and Construction
Open web floor Joists- Trusses

The precision of a spider’s web is a true work of art and the exactness of open web trusses are an architect, engineer and contractor’s dream come true. Truss systems require pre-planning and take months to design and construct. Built within a controlled environment, these systems are unaffected by the elements and are therefore perfect in form. The layouts, profiles and precision cuts are exact, minimizing waste. No more counting joists to ensure quantities ordered have been delivered. Engineered trusses arrive with a level of precision and quality that cannot be predetermined with conventional lumber. The contractor is assured of production costs, quality and delivery - eliminating potential surprises and delays.

Traditional hand-cut (sawn lumber) assembled on site have many unknown variables. The trade-offs can be argued both ways by tradesmen, but it’s my opinion the main benefit of trusses is simple, better quality control standards. Additional costs associated with the design and purchase of truss systems is offset by the resulting reduction of labor costs.

Standing on the top floor of "Sol Mate" in Corolla, there is a feeling as though you’re in some Hollywood movie celebrating all that’s best about life. It’s nighttime and the Outer Banks Parade of Homes evening reception sponsored by SAGA Construction gives a glorious backdrop to the experience of the evening. One Love Caribbean Steel Drum Band is playing some Beatle’s tune with a distinctly island beat. The swimming pool three floors below glows with a blue hue from LED lights; there is a cool breeze off the ocean and the steady susurration of the waves from the Atlantic Ocean rolling onto the beach is a soothing backdrop to the sounds of the people gathered at the home.

The Parade of Homes is as much about the wonder of the Outer Banks as it is about the innovation and quality of the houses.

Oct 03
2011

Lights, Camera, Action!

This is the feeling local builders get this time of the year. Rehearsal materials have been compiled and completed. Tailors have threaded the last stitch. Make-up artists have applied the final dusting of foundation, and the perfect dimmer settings have been dialed to enhance lighting.

The curtain is lifted as attendees look on in silence. Bravo … the 19th Annual Outer Banks Parade of Homes has arrived!

Outer Banks19th Annual Parade of Homes

For the past 19 years, Outer Banks builders have built custom homes to showcase in the annual parade event. As the economy has faltered, many construction companies struggle to survive and to grow their business. This four event parade provides attendees the opportunity to see quality craftsmanship and to preview architectural design and upgraded products and materials. Now is the time for all our planning, client meetings, selections, coordination and marketing to pay off!

Marketing efforts start locally and expand throughout several eastern states to encourage participation. Ticket sales are sold at numerous locations and complimentary tickets are available through each builder. The Parade of Homes is very special to us all. Who can resist the opportunity to showcase our best efforts and enjoy a healthy competition amongst other builders? This is a friendly match and a time to

I just came across, www.outerbanks.com, site recommending their “Top 10 Things to do on the
Outer Banks.” For those traveling here next month, this is information worth sharing:

1) The Whalehead Club - Located in the heart of Corolla, the majestic Whalehead Club was
built in the 1920’s, is beautifully restored and open for year-round tours.

2) Lighthouse Tours - Visit one or more local lighthouses and learn about their historic
importance: Currituck Beach, Bodie Island, Cape Hatteras, Ocracoke or Roanoke
Marshes.

3) Jockey’s Ridge State Park - Visit the tallest natural sand dune system in the eastern
United States. The park stretches over 420 acres in Nags Head and promotes tours,
hiking, kite flying, hang-gliding, wildlife and impressive ocean to sound views.

4) Wright Brothers National Monument - A Kill Devil Hills monument dedicated to Wilbur
and Orville Wright’s first flight in 1903. Enjoy exhibits, movies, educational programs
and a full scale reproduction the 1903 flying machine.

I recently read a MSN article on vacation rental markets, http://realestate.msn.com/10-hottest-vacation-real-estate-markets, and wanted to discuss an important topic. When reading real estate blogs for investment advice, it's very important to remember most of these articles are written to be more general. In order to appeal to a broader audience, the writer typically focuses on discussing real estate trends on a national level. The biggest drawback to this approach is they focus on article topics which generate hits to boost their advertising banners and therefore revenues. There is nothing wrong with the big national real estate blogs. I read them all the time, but it's important to understand they only tell a part of the story. Have you ever noticed that the major real estate blogs rarely provide you with information you can actually use? That's because their content is too generalized to allow people to make solid real estate investments in localized real estate markets. It's true that real estate is influenced on a macro level, but it is critical that it be analyzed at the local level.

Every American family enjoys the luxury of hot water. We share the enjoyment of hot showers and baths, warm shaving water, warm laundry cycles and hot water for dishwasher cycles. Everyone knows the disappointment of taking a shower after a sibling who has indulged in a “Hollywood” shower. When it’s our turn, the hot water supply lasts about 1 minute. So, how do households maintain a continuous supply of hot water?

Tankless Water Heater

I came across this stunning time lapse video, created by Daniel Lowe, and thought it would be nice to share. Living on the Outer Banks, I can testify to the beauty of the stars and cloud formations that we enjoy on a consistent basis. Mr. Lowe is obviously a very talented cinematographer and shows amazing images of the Outer Banks in a very unique and creative format. Enjoy!

Recently a friend asked me to give him some advice on an investment opportunity he came across. It was a bank owned oceanfront lot he felt he could purchase for around $400,000. He argued that it had sold just 3 years ago for $900,000 and he projected he could sell this property within 5 years for at least $750,000. My analysis of this investment follows:

Investment 1 (Bank owned oceanfront vacant lot)

Purchase Price: $400,000
Value 3 years ago: $900,000
Projected Sale Price in 5 years: $750,000
Profit: $275,000 (factoring 10% selling costs)
ROI: 13.75% (annualized over 5 years)

Coastal living has been cherished by all regions, both domestic and foreign. The thought of waking up and seeing just water is very attractive, and reading a book or magazine while gazing at the water is soothing to the soul. Enjoying a sunset with a companion, while watching the ebb and flow of the ocean, is like no other romantic experience. The best way to fully enjoy these experiences is a water view that is free from obstructions. For years windows and doors were simply not large enough, and this problem was compounded by new building codes requiring impact resistant glass.

Nana Doors by SAGA Construction

What is the best way to rent and manage your home in the OBX vacation rental market?

  1. Seek the best rental management company.
  2. Use online websites like VRBO.com and HomeAway.com.
  3. Use your own webpage and post video tours and virtual tours.

And the answer is d; all of the above! You have to think outside the box, as the answer is not always from a list.

SAGA's vacation rental optimization model

Although the Outer Banks rental market has been doing great on a macro level and each of these options will produce results, it’s the execution of all three that can lead to greater results. For example, we have an oceanfront home in the southern beaches that was projected to generate $175k annually by one of the premier rental companies in that area. I have no doubt this company would have met our expectations, but by investing a little bit of time and money we were able to have increased exposure from advertising on sites like VRBO, creating our own website www.VacationRentalsOBX.com, putting together a You Tube video and creating a virtual floor plan tour. Together this investment of about $1,500 helped to bring in rentals of over $195k. What’s the big deal?