February 2002

Member of the National Real Estate Investors Association (NaREIA)

❏ February 7 & 21 – Public PolicyCommittee Meeting, Noon,Best Western Hotel, 275Smokey Park Hwy., Asheville.

❏ February 11 – CREIA MonthlyMeeting, 5:45 p.m., Best West-ern Hotel, 275 Smokey ParkHwy., Asheville. Program:Asheville Area Habitat for Hu-manity and Caldwell Consult-ants.

❏ February 16 – Property Man-agement Operations For the En-trepreneur, 8:30 – 4:30, CumbieInstitute, 800-477-1778. CREIAmembers $50, non-CREIA $75,See flyer enclosed.

❏ February 18 – CREIA BoardMeeting, 6:00 p.m., Best West-ern Hotel, 275 Smokey ParkHwy., Asheville.

❏ February 21 – ProfessionalHousing Provider CertificationProgram –Part II – Begins.Meets each Thursday, 6:00 p.m.– 9:00 p.m., through April 25,Laurel Auditorium, A.B. Tech,Asheville. For info or to regis-ter, call Nancy Troxler at 254-1921, Ext 858. $55.

❏ February 26 – Advanced Inves-tors Subgroup, 1:00 p.m.,Ryan’s, Patton Ave. Meetsfourth Tuesday each month.Note: All investors welcome!

❏ February 26 – HendersonvilleSubgroup Meeting, 6:30 p.m.,

UpcomingMeetings

by Steve ColePrograms Director

Lew Kraus from Asheville Area Hab-itat for Humanity and McKinley Cald-well of Caldwell Consultants will be thetwo guest speakers for the February 11monthly meeting.

Lew Kraus has been with AshevilleArea Habitat for Humanity since 1988and will be sharing the history of theorganization and how CREIA can get involved. As CREIA membershipgrows and our involvement in the surrounding area expands, CREIA hasasked Mr. Kraus to share ways in which we may be able to serve as individu-

als and as an organization.As many of us now are enjoying

the benefits from setting goals andachieving them in real estate invest-ing, we may be looking for a way to

February Program

Habitat for Humanity& Caldwell Consultants

Dinner ($12.00) is served first-come,first served from 5:45 p.m. until 6:45p.m. Approximately 60 dinners areprepared; no reservations taken.Come enjoy. Bon appetit’.

Real Estate Investors: WhereThey Fit In Pre- And Post 9-11by Walt PlaueDirector of Public Policy

The year 2001 will long be re-membered withmixed feelings byevery Americanwith more thanthe usual “highand low points.”The very founda-tions of the Ameri-

can essence, who and what we areand stand for, were severely tested,as much as at any other time in ourhistory. The book is still being writ-ten on the events and their after-math, although the initial “feed-back” has been quite encouraging.But there is something unique in theAmerican character, a trait that can-not be ascribed to any one quality,

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Plaue– Continued Page 6– Continued Page 2

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CREIA Report is publishedmonthly. Newsletter editor isJeannie Acevedo.

Articles submitted are theexpress opinions and com-ments from various indepen-dent CREIA members andoutside sources.

CREIA members are urgedto submit articles for publica-tion. Deadline for articles tobe published is the third Mon-day of each month.

Send your article to JeannieAcevedo, 82 Greenridge Rd.,Weaverville, NC 28787, or e-mail, creianews@hotmail.com

President’sMessage

Just a reminder for all you land-lords about do’s and don’ts of NCLandlord-Tenant Law.

Landlord-Tenant Law in NorthCarolina: Brief Overview

I. Landlord’s ResponsibilitiesA. The landlord is responsible for

providing housing that is safe andhabitable. In cities and countieswhere a minimum housing code isin effect, the housing code sets thestandard for safe and habitable. Ifthe landlord refuses to make re-pairs necessary to comply with thisstandard, the tenant has a claimagainst the landlord.

B. The landlord is responsible forrepairing damage to the residencethat is the result of normal wear

and tear. Anymoney paid assecurity depositmay not be ap-plied to repairsthat are neces-sary because ofnormal wearand tear.C. After the ten-ant vacates the

premises, the landlord must re-turn the security deposit within 30

days or explain to the tenant inwriting how much of the securitydeposit the landlord is retainingand why. If the landlord retains aportion or all of the security de-posit for damages above normalwear and tear, the amount retainedcannot exceed the amount of dam-ages actually suffered.

II. Tenant’s ResponsibilitiesA. The tenant is responsible for keep-

ing the premises as clean and safeas the premises permit and to causeno unsafe or unsanitary condi-tions.

B. The tenant is to dispose of all ashes,garbage, and other waste in a safemanner and to keep all plumbingfixtures clean.

C. The tenant may not deliberatelyor negligently destroy or damageany part of the premises and shallbe responsible for any damageunless the result of ordinary wearand tear.

D. The tenant shall comply with anyobligations imposed upon the ten-

ant by any applicable housing code.III. Eviction Permissible By CourtOrder Only – “Self-Help” is Not Per-mittedA.North Carolina General Statutes

prohibit evicting a tenant exceptthrough a court action for sum-mary eject-ment.

B. Only thesheriff, pur-suant tocourt order,can physi-cally evict atenant.

C. If a landlordchanges atenant’s locks; cuts off water, seweror utilities; or removes furniturefrom the premises, the landlord isin violation of North Carolina Gen-eral Statutes.

D. Tenants who are either physicallyor constructively evicted are en-titled to damages from the offend-

Bay Breeze Restaurant, 1830Hendersonville Highway.

❏ February 26 – Landlording Sub-group Meeting, 7:00 p.m., Enka-Candler Library, Sandhill Rd. CallMaggi or Les Saucier for info at658-8819.

❏ March 5 – New & Beginning In-vestor Subgroup Meeting, 6:30p.m., Ryan’s Steak House, 1053

A Brief Primer On NC Landlord-Tenant Law

Meetings– From Page 1

Patton Avenue, West Asheville. Ifyou have questions, call JudyClodfelter at 683-4799 or e-mail:silversrosebud@aol.com.

❏ March 7 – Public Policy Commit-tee Meeting, Noon, Best WesternHotel, 275 Smokey Park Hwy,Asheville.

If you would like to include upcoming realestate investor events in the next issue ofCREIA, please send your event date anddetails to Jeannie Acevedo atcreianews@hotmail.com

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ing landlord.IV. Grounds for EvictionA. Tenant breaches a con-

dition of the lease.1. Landlord must give

tenant any notice re-quired by the lease.

2. Landlord must showthat the partiesagreed, as part of the lease (whether written ororal), to the condition the landlord is seeking toenforce.

3. Landlord must prove that the tenant actuallybreached the lease and the breach must be signifi-cant enough to warrant eviction.

B. Tenant fails to pay rent.1. Landlord must demand payment at least ten days

before filing a complaint in small claims court.2. Landlord must show that tenant was required to

pay rent by a certain time and failed to pay rentwhen it was due.

3. Note: If the tenant pays the rent, court costs and in-terest before judgement is entered in favor of thelandlord, the eviction action will be dismissed.

C. Tenant “holds over” after the end of the lease.1. Landlord must give tenant proper notice that the

lease will be terminated when the term of the leaseends.a. Year lease: 1 month.b. Month-to-month lease: 1 week.c. Week-to-week lease: 2 days.

2. Landlord must establish the length of the term ofthe lease and that the tenant held over beyond itsterm after receiving proper notice that the leasewould not be renewed.

D. Tenant engages in criminal activity.1. North Carolina General Statutes set forth the types

of criminal activity for which a tenant may be evict-ed.

2. A tenant may not be evicted where the tenant didnot herself engage in criminal activity and eitherdid not know of criminal activity or knew and tookreasonable measures to prevent the criminal activi-ty.

3. The court may order a partial eviction of offend-

share our knowledge or skills with those who have nothad the same opportunities. Although we may nothave the means to donate money, giving of our timeand/or skills to help with projects sponsored byAsheville Area Habitat for Humanity may be one wayin which we choose to give back to the community.

Mr. McKinley Caldwell of Caldwell Consultants willbe speaking to us after a break for networking time.Caldwell Consultants are telecommunications special-ists and an affiliate of ADT Security Systems since1979.

McKinley and his wife, Robin, are active investorsand members of CREIA. They own several single fam-ily homes, two duplex apartment buildings and mini-storage units. It is always refreshing to hear guestspeakers share their business knowledge from theperspective of a real estate investor and member ofCREIA. CREIA welcomes both Asheville Area Habi-tat for Humanity and Caldwell Consultants to ourFebruary meeting.

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Caldwell

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Primer

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ing members of the household only if (2) applies.V. Retaliatory Evictions: It is unlawful to evict a tenantin retaliation for the tenant’s request for repairs or at-tempt to exercise any rights existing under state or fed-eral law.VI. Legal Defenses to EvictionA. The landlord has failed to comply with the legal

requirements set forth above.B. The eviction is based on an illegal reason, such as the

tenant’s or guests’ race, sex, religion, disability orfamilial status.

C. The eviction is in retaliation for the tenant’s requestfor repairs or attempt to exercise rights protectedunder federal or state law.

D. The tenant has a claim for rent abatement based onthe condition of the residence not meeting city orcounty housing codes, and this claim offsets the amountof rent that is owed.

E. Other Counterclaims1. Unfair Trade Practice: The North Carolina Gener-

al Statutes makes it unlawful to engage in what areconsidered unfair trade practices. In the landlord/tenant context, attempting to evict a tenant with-out court order by removing their furniture orchanging the locks, for example, is an unfair tradepractice. If the tenant proves that the landlord hasengaged in an unfair trade practice, the tenant isentitled to triple the amount of damages he/shehas proven.

2. Unfair Debt Collection: The North Carolina Gen-eral Statutes makes it unlawful to attempt to col-lect a debt in ways that are considered unfair. Oneunfair debt collection

VII. AppealA. A tenant who loses in Small Claims Court has ten days

to appeal the judgment to District Court for a newtrial.

B. In order to appeal, the tenant must pay a rent bond tothe clerk of court.

C. While the appeal is pending, the tenant must pay rentas it comes due to the clerk of court.

D. As long as the tenant has properly appealed andcontinues to pay rent to the court, he/she may not beevicted until the appeal is ruled upon.

VIII. Late Fees

A. In order to lawfully collect a late fee, the landlord andthe tenant must agree to a late fee at the time they enterinto the lease agreement.

B. Only one late fee may be charged for each rentalperiod.

C. The late fee may not exceed the greater of $15 or 5%of the rental payment.Disclaimer: These are general rules only. Each case presents

unique facts and may involve more specific rules not set outhere.

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Primer

Financial Servicesfor Real Estate Investors

• InvestmentLoans

• MortgagePurchases

• MortgageParticipations

LANGDON AMMEN • JEAN AMMEN • KATIE KING

LANGDON AMMEN

Voice (828) 285-0123 • Fax (828) 236-0123

5

by Langdon AmmenCarolinas REIA members who live or have capital in-

vested in Asheville won’t find the word “diversity” newto them. It’s a politically correct term meaning that anycharacter who moves here should be welcomed withopen arms.

It shouldn’t surprise us that several odd-ball newspa-pers are published here. Each targets a particular popu-lation group. Most are free and worth what they cost.

Although I seldom read these rags, a serious studentcan learn a lesson anywhere.

Probably the most successful of the off-brand papersis Mountain Xpress, published each Wednesday and wide-ly available on newsstands in Western North Carolina.

As a newspaper, it fails by almost any standard, ex-cepting perhaps its coverage of the local arts scene. Butas a collection of socialist political commentary, it’s araging success.

Because it’s widely read by Asheville’s political lead-ership and heavily supported by a certain segment of thecommunity, you can understand why Asheville’s govern-ments for the past 10 years or so have been so hostile tobusiness in general and real estate development in par-ticular.

The January 16 issue, for example, contains a long di-atribe about how distressing it is that artists can’t makea decent living in Asheville.

After taking swipes at President Bush’s economicstimulus package and his plan to let people choosewhere some of their own Social Security funds are in-

vested, the author espouses his vision of a society inwhich “those who choose to can live a simple, no-frills,basic life while devoting their energies to creativity ... .”And he makes it clear what that means: “Some Europe-an countries even believe that artists represent an impor-tant part of the nation’s cultural heritage and ought tobe subsidized.”

Now, it’s true that my parents had only eighth-gradeeducations. If they had been better educated they mighthave encouraged me to have more fun with my career.

Instead, they taught me that, if my passion was paint-ing pictures or playing guitar or dancing, and I could doit well enough, I might make a living at it. Otherwise, I’dbetter figure out how to provide a product or service thatpeople would pay for voluntarily.

I’ve stuck pretty much to their advice. But a liberalloafer with a college degree might know something theydidn’t.

Maybe I should replace that guitar pick I lost back in’57 and apply for welfare ...

Langdon Ammen is a real estate and mortgage investor liv-ing in Asheville. He is president of Roundtable Financial Ser-vices and a former president of Carolinas REIA. Opinions ex-pressed here are his own. February 2002

Commentary

Did my parents get it all wrong whenthey explained working for a living?

LibraryNews

by Jack NesbittCharles Tremendous Jones once said, “You are the

same person today that you will be five years from todayexcept for three things. These are thebooks you read, the tapes you listen toand the people you meet.” I think thatis sound advice to each of us. As mem-bers of CREIA we can each benefitfrom our nuggets in our library. Take advantage of thenew materials coming into the library and grab a nug-get for your bookshelf at home as highest bidder forone of the books offered at the silent auction held eachmonth.

New additions to the library this month:1. The Nine Steps to Financial Freedom by Suze Orman –

Library Gets New Materials

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that has always perse-vered through tragedyand hardship that allowsus to rise from the ashesmuch like the mythologi-cal Phoenix. Before thedust had settled at theWTC, leaders were already discuss-ing what would replace “the towers.”

Not coincidentally, the intangiblequalities found in the heroes of NYCare also to be found in the individu-al members of society who strike outon their own, risking their futuresand their assets, rejecting the securi-ty and handouts sought by others inorder to build something better forthemselves and their families. Theseare the people who can look backon their life’s achievements andboast: “I created that.”

These qualities are not unlike thequalities that took earlier Americansfrom the safety of eastern cities andcaused them to move westward, intoan unknown world where life itselfwas at stake. We refer to those earlyAmerican as “pioneers.” In theAmerica of today, we call them “en-trepreneurs.” In our own organiza-tion of CREIA, we call them inves-tors, builders and developers.

Inherent in the character of earlyAmericans was another quality al-most diametrically opposite to someof the other qualities. It brought set-tlers together to build forts or tohelp a neighbor “raise a barn.” Forlack of a better word, I’ll call thisquality “responsibility.” Responsibil-ities for one’s own actions or on be-half of a group as a whole, or forthose who truly needed assistance.

We, as responsible members ofour communities, have an obliga-tion to participate in the affairs of

those communities,bringing ourunique skills ideasto make them abetter place to liveand work. In orderto achieve this, it isessential to the suc-cess of entrepre-neurs (or pio-

neers) that an environment existwhich fosters individuality and cre-ativity.

We must not be complacent inthis for there are many forces thatwould stifle a creative environmentfor the sake of “political correct-ness,” expediency or, frankly, creep-ing socialism. The latter seeks totake the rewards from those whoearned them and claim them as“public property,” distributing thoserewards even to those who mockedthe “free enterprise system.” Forthese reasons, it is critical that wepay attention to the actions of ourofficials or we risk losing the free-dom to build our dreams and ourlegacies. We must take time fromour busy working schedules to makecertain that while we are so engaged,the system that allows us to createwealth is not surreptitiously erodedfrom under us.

It is not just an obligation asAmericans, but, more personally, itis a matter of self-protection that weobserve and participate in our vari-ous community and governmentalentities. In all the local REIAs acrossthe country, and in our national or-ganization, NaREIA, we must makeour individual and collective voicesheard by those who would seek to di-minish our efforts by legislation, reg-ulations and ordinances. We haveseen too much of this already instringent minimum housing codes,lead-paint laws and penalties, in gen-

9-11– From Page 1

eral, an anti-entrepreneurial envi-ronment.

Within CREIA, many membershave given generously of their pre-cious time to attend city and countymeetings, have put their dollars towork in elections, written letters tonewspapers and have participated inmeetings with governmental andnon-profit groups. CREIA has ex-panded its influence by joining inmany local, state and federal organi-zations to make certain that the in-terest of its members were not justprotected, but advanced at every lev-el.

If our society is to remain support-ive of the “pioneer spirit” in us, eachof us must donate, sometimes with-out monetary compensation, tothese efforts. The CREIA Board ofDirectors and our Public PolicyCommittee will do the “heavy lifting”but there is always room for other in-dividual members to step forwardand “lend a hand.” If you are willingto get involved, contact any CREIABoard member and volunteer yourservices. You will be welcomed. Ulti-mately, you will be helping yourselfby protecting your rights and follow-ing in the footsteps of those who cre-ated them!

Don’t forget that you can registerfor Saturday seminars online. Go toCumbie Institute’s website atwww.cumbieinstitute.com and followthe “register for courses online” linkto access the CREIA seminar sched-ule for the next six months. Registra-tion is also accepted at 800-477-1778.If you have questions or difficulties,please contact John Maltry at 828-252-6858.

Saturday SeminarRegistration

Member Name:

Guest Name:

To CREIA’s February 11, 2002, Meeting

Guest Policy Guests can waive the $10.00 monthly meeting fee ($15.00/couple) for

their first visit with a referral from a member. Simply fill out the ticket be-low and have the guest turn it in at the sign-in desk. Should you have anyquestions about this, please call Judy Glicken at 828-645-8101

CLASSIFIEDS

All phone numbers area code 828 unless noted.For Sale: Deer Park RV Resort and Deer

Park Gardens. 108.81 Acres, 3,000 sq. ft. home,arcade, 120 RV sites with electric and water, du-plex, laundromat, two 27-ft mobile homes, threesingle wide homes, four tennis courts, 18-holeminiature golf, 4,000 sq. ft. clubhouse, 17 lot rent-als at $600, snack bar and 200 coast-to-coastmembers at $200 each. Deer Park Gardens in-cludes 35 acres with 14 singlewide homes each at$300 and 6 doublewides at $400 each and 10 mo-bile home lots. $1.3 million plus commission toGeorge Johnson. Contact Matt Scharff, 681-0958.

For Sale: 1999 Champion 28 x 74. 3 BR, 2BA, Range, Refrigerator, Dishwasher and Fire-place. 821 W. Fork Creek Rd., Saluda, NC,$76,900. Cathie DeBlaker, 236-2559.

For Sale: 4000 sq. ft. Brick Office build-ing with 4 restrooms in the Biltmore area. Half isrented for $1900.00 per month {which includesutilities up to $250.00 per month} with 2 1/2 yearsleft on their contract. The rest of the building willbe rented for $1500.00 per month with a 6-monthcontract and month-to-month there after until an-other place is available. This tenant will pay allutilities for both sections while there. Property sitson .69 acres. Call Tom Overholt 275-8821 or BillyOsigian 273-0977.

For Sale: 2000 Sweetwater 28 x 44. 3 BR,2 BA, range, refrigerator, decks. 70 BrookshireCt., Franklin, NC, $64,900. Cathie DeBlaker, 236-2559.

For Sale: 2001 Horton 24 x 68. 3 BR, 3BA, range, refrigerator, dishwasher, full stone fire-place, decks, sheetrock, cathedral ceiling, paveddrive, landscaped, tilt windows, 5 Robin Lane (be-hind Richmond Hill Inn), currently rented for$875, $105,000, Cathie DeBlaker, 236-2559.

For Sale: Two Newly Remodeled Housesin Madison County, 2 BR, 1 bath $55,000 and$65,000. Tex 689-5740.

Wanted: Loan Manager. NeighborhoodHousing Services of Asheville is seeking an experi-enced loan manager with knowledge of affordablehousing and first-time homebuyers programs.Bachelor’s degree required. 3-5 years experiencepreferred. Minorities and Spanish-speaking en-couraged. Send cover and rÈsumÈ to NHS 135Cherry St., Asheville, NC 28801.

Wanted: White Metal Kitchen Cabinets.Wade May, 669-1086.

Wanted: Land Anywhere in MadisonCounty, in an area suitable for small mobile homepark. Jeannie Acevedo, 645-8888.

Wanted: Commercial Tree Chipper. Rea-sonable price. Tex 689-5740.

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#1 New York Times best seller.2. The Wealthy Barber by David Chilton – Everyone’s common-sense guide

to being financially independent.3. Landlording by Leigh Robinson – “One of the ten best real estate books.”On the Silent Auction block this month are the following:(Remember, all proceeds from the auction will be used to purchase new

materials for the library)1. Putting Excellence to Work – A six-tape series on management and moti-

vation by different authors.2. Whodunit? By Michael Pitt – A six-tape series on clues for negotiating

seller financing based on actual case studies with a 77-page workbook.3. How to Get Results with People by Jeff Salzman – A four-tape audio pro-

gram on how to build your leadership power and visibility on the job.4. The Best of Career Track Volume II – Hear the best of eight different clas-

sic seminars.Just a reminder for those who need to return overdue library books to the

January meeting. Remember there’s a $10 late fee per month.

OVERDUE BOOKS AND TAPESName Code Title Date OutLarry Ford 0118 Fundamentals of Real Estate 2/12/01David Bonyum 0112 New Strategies for Investing 5/14/01Catherine Proctor 0039 Managing Small Properties 5/14/01Steve Price 0084 No Down Payment 6/11/01George Freeman 0188 Resident Money Making Program 7/09/01Rich Mann 0035 Buying Smart 11/12/01Teresa Bryant 0140 Deals On Wheels 11/12/01Mark Alsko FQ Financial Quarterly 94 11/12/01Jeanette Sypzak 0090 Basic Paper 12/10/01Mark Clifton 0173 Advanced House Buying Techniques 12/10/01

Library– From Page 5

P.O. Box 615Asheville, NC 28802

828-255-2727Fax: 828-255-8042

First Class Postage

FEBRUARY MEETING

SHOW & SELL

If you have a property for sale orsomething you are interested in, sin-gle family, duplex, mobile home,land, etc., that you would like to of-fer/ask for during Show & Sell at theCREIA meeting, please fax your infoto Cliff McLarty at 828-659-3894 oremail him at cliff@dadincorp.com byFriday before the Monday meeting.He will prepare an overhead trans-parency to show at the meeting.

CREIA OFFICERS

PresidentBill ChoateHome (828) 299-0767choatedev@aol.com

Vice-President/ DirectorOf EducationJohn MaltryWork: (828) 252-6858johnmaltry@cs.com

TreasurerRiis Williams(828) 654-2081riis.o.williams@usa.contiteves.com

SecretaryBeverly B. RobinsonHome: (828) 298-0617robbe@mindspring.com

National SpeakersDavid WorleyHome: (828) 252-3511Work: (828) 251-2727highland3@home.com

ProgramsSteve ColePhone/Fax: (828) 274-8679jostpirate@aol.com

MembershipJudy GlickenHome: (828) 645-8101Mobile: (828) 776-0509Fax: (828) 645-8457judyglick2@aol.com

CommunicationsJeannie Acevedo(828) 645-8888creianews@hotmail.com

LibrarianJack Nesbitt(828) 891-8339bandjnesbitt@aol.comBoylston Hwy.Rt. 1, Box 10BPMB 455Horse Shoe, NC 28742

CREIA is an educational organization and investors should consult an attorney or accountant before makingan investment. All members and guests assume the risk of making their own investment decisions.

CREIA Info Line — (828) 255-2727http://www.CarolinasREIA.org

creia@bellsouth.net

SubgroupsBooth RankinsHome: (828) 645-9566Work: (828) 274-9453brankins@mindspring.com

Director ProfessionalStandardsDebbie BucklaewH 828-454-0235Cell 828-507-7247beaumontrentals@aol.com

Director Public PolicyCommitteeWalt PlaueHome: (828) 658-3151Fax: (828) 645-0165pplaue@aol.com

Director MarketingJudy Clodfelter(828) 683-4799silversrosebud@aol.com

- Monday, February 11, Best West-ern Biltmore West Hotel, 275Smokey Park Hwy, Asheville. Buf-fet is $12 and served from 5:45 –6:45 pm. Buffet is first come, firstserved; no reservations taken.

- 6:00-6:45 - Mr. Lew Kraus,Asheville Area Habitat for Hu-manity

- 6:45-7:45 - Visit CREIA Library,Business Meeting, Networkingand Show & Sell

- 7:45-8:30 - McKinley Caldwell,owner of Caldwell Consultantsand CREIA member