Ravenswood Park

Posted on May 17, 2012 by Patrick J Maguire

Tightrope ♦ Hiking through Ravenswood Park

With each successive step I traveled more and more into their world. The frogs watched me with interest, pondering why I had come. A pipe served as my boardwalk, or at least it had thus far. Looking forward it wouldn’t be long until my path was overcome by swamp water. Evidently that was the subtext of the sign that warned me the trail would divert off Ravenswood property.

While I was praying for my balance to be stalwart, I snapped a few photos. I was unsure if this was even the trail anymore. If it hadn’t been for a drought this whole area would surely have been underwater.

After wading out of the slime I proceeded to get lost altogether. My wrong turn walked me smack dab into a pristine stream, an odd contrast from where I had been. The current flowed past was so crystal clear you’d think you could drink it by the handful. I took several pictures of its beauty. Still, my mind lingered on how every droplet was destined to mix with that muck. Such a waste. Eventually I turned around to relocate my way.

Jeff Stelman

Posted on May 15, 2012 by Patrick J Maguire

26 Lynde Street, Salem ♦ From Beverly take Bridge St to Washington then onto Lynde

Jeff doesn’t know this, but at my first closing I unwittingly attempted to steal his seat at the head of the table. Before I secured the spot my more experienced teammate, Pat Marcotte, overtly hinted that I should move.

At a closing the attorney might seem to be lording over the table but this position serves a purpose. All the necessary documents can easily get to the two parties and communication lines remain unobstructed, which by in large makes the process move smoothly.

One particular time though the seller fought a very understandable battle with nerves. Being nervous at closing is completely natural but this individual appeared on the verge of a panic attack. His hands shook and head rattled. It became obvious signing the necessary documents at that moment was not something he was going to be able to do.

Realizing the need to change the room’s dynamic, Jeff left his seat and took a knee at the seller’s side. He handed off his pen and spoke slowly in a soft, reassuring tone; all the while acting as if this was how a closing always went.

In response to that truly altruistic gesture, the seller was able to find his calm and complete the closing.

Certified Investor Agent Specialist

Posted on May 14, 2012 by Patricia Marcotte

CIAS ♦ Continuing Our Education

As part of our continuing effort to keep on top of our education the Northshorist Group has just completed the CIAS course. We honed our skills and learned some new techniques to better assist everyone from the first time investors to the experienced rehab and resell professionals.

Real Estate represents a consistent and stable way to build wealth, bring liquidity to our housing market, and stimulates our local economy. Most peoples think that real estate investing is reserved for the really wealthy, but 43% of real estate investors earned less than $75,000 per year. In the past year, investment properties represent about 30% of all residential sales. Today, real estate is quite literally on sale! There is an unprecedented opportunity to build wealth through real estate, and our team specializes in helping all investors achieve their goals.

Call us today to learn more about investing in real estate.

Ravenswood Park

Posted on May 10, 2012 by Patrick J Maguire

Finding the View ♦ Hiking through Ravenswood Park

Shadows stretched in the morning sun while hikers came and went. Their number indicated that the beauty of this day had not gone unnoticed. With my pack sinched tight I ventured into Ravenswood.

I passed multiple vernal pools; some wet, some dry. I had hopes of getting out early enough to see the salamanders walking about but the sun had already dispatched them to cooler sanctuaries.

The trails were laid out with a careful hand. That is not to say that they at all felt manufactured. Quite the contrary, they coursed like a quick river finding its way to safer ground. What I mean is that they were smooth and effortless; made to be walked on. As I crested the canopy parted and I was struck by the scenic view that I had seen indicated on my map. Outward I gazed over Gloucester’s Eastern Point. The ocean pooled just above the distant tree line. Although a vision, I simply shook my head and kicked myself for not getting up earlier. What pure splendor it must be at dawn.

Felix Amsler: Boston Private Bank & Trust Company

Posted on May 8, 2012 by Patrick J Maguire

57 Enon St, Beverly ♦ North on 1A past Not Your Average Joe’s on the right

When I asked for a story Felix didn’t bat an eye. It came rolling off his tongue as if he were recalling yesterday’s events. In each word I could sense the soft tones of gratitude; a demure pride in simply being involved. He recounted the dream of a young single mother. A dream that surely disrupted whatever rest she might have managed after attending class all day and working nights.

The loan he was assisting her with was MassHousing, 3% down. The reality was a parent trying to get her three children, all under five, out of a rental situation and into a home they could be proud of. Still, risk assessment doesn’t factor in such notions. The situation appeared more dire at every checkpoint and yet…

His tone summoned what sounded like a still fresh disbelief as he confirmed their success. At the end of it all the woman was able to sleep soundly, with her children, in a home of their own.

I suppose these articles are supposed to be more focused on the businesses in the title, but sometimes isn’t it nice to hear about great things happening to good, hardworking people?

To find out information about mortgages and financing options you can reach Felix Amsler by phone at (978) 338-1520 or email famsler@bostonprivatebank.com.

Find other local businesses in our Business Directory

Investor Tips

Posted on May 7, 2012 by Patricia Marcotte

Investor Tips ♦ Attracting Desirable Tenants

Having good tenants can make all the difference as an investor. There are several ways to attract desirable renters and by following these simple guidelines. It’s easy.

Attracting favorable tenants is much easier if the landlord is diligent about keeping up with repairs. Cleaning and fresh paint between tenancy is a small investment in money and time but will go a long way towards attracting the type of tenant you’d like to rent to.

Your “gut feeling” after meeting a prospective tenant is a useful guideline, but no excuse to skimp on performing your due diligence. When a unit is available the landlord should have a detailed application to be filled out by applicants. It should include employment history, rental history, and personal references. You should also ask for a copy of their license to confirm you have received accurate information. Don’t make the mistake of checking with only the current landlord as they may avoid sharing pertinent details if they desire a tenant to leave. Check with multiple past landlords to compile a favorable rental history. You should also have a credit and criminal check done and paid for by the prospective tenant. There are several companies that do this for a small fee. One we recommend is TransUnion’s SmartMove, found on the web here.

The tenants should also be given, in writing, detailed information about use of the property. Basement storage, parking, and utility cost should be clearly delineated to avoid confusion. Before occupancy walk thought the apartment with the tenants noting condition and taking pictures or video. This information will be useful when determining if there is a need to withhold a portion of the security deposit.

Don’t forget the law requires certain information from the landlord. You must have a signed lead paint disclosure, a written receipt with information about where their security deposit is held in escrow, and working smoke and carbon detectors.

If you don’t have the time to do repairs or complete detailed due diligence, hiring a property manager should be considered. The small percentage of rent can stave off damage or eviction expenses.

If you would like a free copy of our landlord resource manual email us.

Topsfield-Wenham Rail Trail

Posted on May 3, 2012 by Patrick J Maguire

Week 2 (The End) ♦ Running the Topsfield-Wenham Rail Trail

8 seconds, the numerical representation of mild success.

Exactly one week after my initial attempt I took to the rail trail again. I can’t say that my outlook was positive, as my legs had only just regained some semblance of working order, but there I was. I suppose my disappointment is what brought me back. A time of 9:24 was not acceptable.

I was by no stretch of the imagination alone. There were walkers going both ways in singles and pairs. Dogs also enjoyed trotting about on the end of a leash. From what I could tell this stretch of crushed gravel was gaining popularity.

When I finished I stood around sucking air. I checked my stopwatch to find I’d done eight seconds better than last time. Staring back I knew I had a long way to go, both back to my car and in improving my time. So I started putting one foot in front of the other.

New Leaf Redesign

Posted on May 1, 2012 by Patrick J Maguire

11 Chestnut St, Marblehead ♦ From 114 take Ocean Ave then a left onto Atlantic until Chestnut St

It started with a room that couldn’t sing. Sure it could hum, but that’s no way to entertain a wedding. And a wedding was to be held there in just a few short weeks… hence the call from the panicked bride-to-be.

Those four walls had already eaten three decorators, and more money than should be rightly printed here, before Paula Gaull of New Leaf Redesign had her time with it. The expectations from the homeowner were not high. “Do what you can–we’re desperate–no one has been able to get it right, but we need to be able to use it for our upcoming wedding reception.” Yet, in the tortured space lurked potential threads that could be woven. So Paula challenged the resident, “Don’t worry…we’ll make it so beautiful that you’ll hug me and maybe even cry when you see the result—just like on TV.” To which the skeptical client replied, “I may like it… but there’s NO WAY you’ll make me cry!”

After only one short day the dramatic transformations were complete. Instead of another pretty space Paula designed a living room and filled it with life. Lost photos of those important, favorite books selected for the shelves, and a stunned bride-to-be. In a room that had been loathed she turned, with tears on her cheeks, and exclaimed, “I love it! I can’t believe you made me cry!”

Paula Gaull can be found online here or call (781) 631-5323 to have her redesign one of your rooms. Also, if you’re looking to sell Paula does fantastic work staging properties.

Find other local businesses in our Business Directory

Language of Investment

Posted on May 1, 2012 by Patricia Marcotte

Interpreting the Language of Investment ♦ Some common investment terms

Todays market is an ideal place for real estate investing. Low prices coupled with historically low interest rates make real estate, if purchased correctly a wise financial decision. Here are some terms you should be familiar with when investing.

Net Operating Income (NOI)
The net operating income is the net revenue from a property, not including debt service, like mortgage payments. In residential real estate most revenue comes from rent. Simply put, net operation income is the gross rent minus gross expenses. Expenses include such things as property taxes, insurance, maintenance, vacancy reserve, utilities, trash, lawn service, plowing, and management fees if any.

Cap Rate
The capitalization rate is the rate at which an investment property earns money, depending on the value of the property. It is calculated by taking the yearly net operating income (NOI) and dividing by the purchase price of the property.
Example:
Monthly NOI= $895
Yearly NOI = $10,740 (895 X 12)
Purchase price $125,000
CAP rate = NOI / Purchase price
10,740 / 125,000 = .086 or 8.6%

Debt Service Ratio (DSR)
The debt service ratio (DSR) is a calculation of the net operating income divided by the mortgage. Investor, want this number to be greater than 1.2.

Cash Flow
Cash Flow is one of the most distinguishable benefits of investing in real estate. Simply put, cash flow is the rental income remaining after the expenses and mortgage are paid. Positive cash flow is the most important part of an investment. If there is not acceptable cash flow you should not pursue the property any further. There will be other, better, deals for you to find.

Not Your Average Negotiating

Posted on April 30, 2012 by Amy Wallick

Not Your Average Negotiating ♦ Strategies for todays market

The local North Shore market is constantly changing. As many of you may have heard or even experienced, the negotiating aspect has become aggressive and anything but average. Working with buyers I have heard IT ALL when it comes to what they think is the proper way to submit an offer and initiate negotiations with a seller. “I read in an article that houses sell 20% below list price so I should start 40% below the list price,” “My parents told me to offer $50,000 less than what the seller is asking,” or my absolute favorite being “I want to start really low to see how much the seller is willing to come down, I have nothing to lose right?” Nothing to lose? I suppose that if missing out on the home of your dreams is considered nothing then YES you have nothing to lose. Please don’t hold me accountable when your fathers, brothers, friends strategy doesn’t result in an accepted offer.

With the influx of short sales and foreclosures, historically low interest rates and available loan programs buyers and buyers agents are facing some serious competition when making an offer on a property. Banks have underpriced their properties to move them quickly. This strategy has stimulated an overwhelming amount of interest and resulted in multiple offers over the original asking price. Agents and sellers are also implementing this strategy on short sales and traditional sales to stimulate competition.

Here is the data to put it all of this into perspective. In the past 6 months 285 single family homes have sold in Peabody, Beverly and Danvers. Of the 285 sales 35 of them sold for more than the asking price while another 24 sold at the full asking price. 21% sold for at or over the asking price. The market has changed. Buyers who don’t want to miss out on a house they really want should get accurate information from a knowledgeable buyer agent who will be able to show them if a property is priced below market value. With the proper information buyers can make an informed decision on the correct offer so they don’t miss out on the home of their dreams!