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First talk a little bit about what equity is. Equity is the value that you have in your home, the difference between the market value of the property and the debt on the property. If you have $100,000 home, a home that’s worth $100,000, you owe $60,000 on that home, you have $40,000 in equity. Simplest explanation, 100,000 minus $60,000 in debt. If you sold the property today, you’d walk away with $40,000. Million dollar home, you have $300,000 in debt, you have $6, $700,000 in equity. One million, pay off the 300,000. The equity that remains is 700,000, which is yours.

Let’s talk a little bit about how to use home equity loans and home equity lines of credit to tap into the equity in your home and to accelerate your wealth building process. First, let’s talk about home equity loans. A home equity loan you borrow at a fixed amount. The payments are fixed. Your interest rate is fixed. The payments are fixed. You get a lump sum today and you are basically making payments over the 10, the 15, the 20-year term of the home equity loan, so you know what your payments are every month, and it’s predictable. No closing cost is listed on this screen, but please pay attention to that. You’re never going to take out a mortgage and have there be no cost. A lot of times, it’s just rolled into the back end. You take out 100,000, but your mortgage goes up by 103,000 or 104,000. There are always going to be costs there. Just pay attention to what they are and how does it affect your overall loan.

Interest, usually tax deductible. As of right now, the current laws in the United States allow for interest on mortgages to be tax deductible. The word usually is thrown in there because who knows if those laws are going to change in the future, but as of right now, interest on mortgage or your mortgage interest expense is tax deductible.

What is the difference between a home equity loan and a home equity line of credit? A home equity line of credit, you do not receive a lump sum. Basically, what you do is you’re basically taking $100,000 and tying that up. You basically are using the equity almost as a credit card. In that sense, you charge or you write a check for $5,000 and then you pay off that $5,000. Now you have $100,000 in available credit once again. You buy a car with your line of credit, and you spend $25,000 on that car. As you slowly pay off the $25,000 loan, that credit becomes available again. It’s like a credit card. It’s a more revolving line of credit than it is a loan. A loan you get a lump sum, payments are equal over the term of the loan. The line of credit acts more like a credit card, and also your interest rates are variable. They are usually capped or tied to an index.

You’ll have, I would say, if you start off with a 6% interest rate, it may be capped at 9, but over the life of this home equity line, you may not know exactly what your payments are. Your payments are going to be based on how much you spent or how much you borrowed and what the interest rate is at that particular time. Why would you use one versus the other? I’ll give you two examples of how they are used by investors to accelerate wealth building. Let’s say, for instance, I have a neighbor who wants to sell their property to me. They’re in no particular rush. I am very interested in the property. It’s maybe a multifamily and I know it’ll cash flow if I can just get in and rehab the property and put it back on the market with some new tenants. I’m going to tell my neighbor, “I’m going to take some equity out of my home, and I’m going to now use that equity as a down payment for a new mortgage so I can buy your property.”

In that case, I’m going to go after the home equity loan. I have a purpose. I already know what my purpose for taking this equity out of my home is to go purchase a new home. I would rather my payments be fixed so I can calculate them and I know what they are every single month. I”ll have two mortgages to worry about, two additional mortgages to worry about, the home equity loan, plus the new property loan. I’m most likely going to use the home equity loan as a down payment for my new loan to purchase my neighbor’s property. Depending on where you are in the country or how much equity you have in your home, if you have enough, you can borrow the entire purchase price from your home equity loan.

Why would I use the home equity line of credit? I do not have a neighbor who’s looking to sell, but I know I want to buy and investment property in the future. I want to have access to the cash. I know that when I make an offer on a property, a lot of times, I have to move quickly. I want to have access to the cash immediately and be able to write a check with no going to the bank. I already want my funds to be available so I can move quickly, and I do not know my purpose as of yet. I’d probably be in that situation be looking for a home equity line of credit that I can take, borrow against my house, and in anticipation of using that for some future purpose.

To sum it up, I would say home equity loan is I understand my purpose. I’m going. My purpose is there. I have an existing need for this money or an existing want. I’m going to go take out the loan. I’m going to make my payments fixed and predictable. I know that I want to do something in the future, but I’m not quite sure what it is just yet, but I want to have access to quick cash, I’m probably going to use the home equity line of credit to do that in the future.

One other way that you can tap into your home’s equity that’s not exactly listed here is doing a cashout refinance. Let’s say you have a house. It’s worth $500,000, and you owe $200,000 on that piece of property. Instead of having two mortgages, instead of having your first existing mortgage and then a home equity loan on top of that as a second mortgage, you basically do a cashout refinance. You want to pay off the existing 200,000 and then take out an additional 100,000 or 50,000 or whatever it may be into one new mortgage. My new mortgage is going to be 300,000, paying off the old mortgage of 200,000, and putting $100,000 into my pocket. That is called a cashout refinance of your mortgage, and that is another way that you can tap into cash, as well.

Hopefully, this was helpful. If you are looking for mortgage brokers that you would like to speak to about home equity loans or home equity lines of credit, we work with some of the best in the business, especially here in Boston. Please click on the link below in the video description. Fill out the quick form. Tell us what you’re looking for. We would love to connect you with some of the people that we work with on a regular basis. Thanks for watching.

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10 Task Every Boston Landlord Must Complete To Find The Perfect Tenant

Cheryl Ricketts and Kate Brennan of The Mandrell Company take you through “10 Things Every Landlord Must Do Find Great Tenants”. While the information is geared toward Boston area landlords, must of the tips and tricks can be used anywhere in the state of Mass. For more information or for questions, you can contact them at Kate@MandrellCo.com or Cheryl@MandrellCo.com.

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You Don’t Need 20% Down To Own A Home In Boston

There are many would-be homeowners out there that have been misled about their ability to afford a home in Boston. We have some of the highest real estate prices in the country and the misconception that you can’t purchase a home without 20% down has led a lot of people away. Here are five mortgage programs that require significantly less out of pocket money.

Mass Housing Home Mortgage

Mass housing loans is a state-funded program to help homebuyers within Massachusetts. Mass housing allows buyers to purchase a home with a minimum of 3% out of pocket.  The big benefit of mass housing is that you do not pay PMI on these loans. The downside to mass housing, is that there are income qualifications and you do have to take a first-time home buyers course to be eligible for the loan.

FHA Mortgage Loans

FHA (Federal housing administration) home loan programs are probably the most popular throughout the country for individuals who are not capable of placing a 20% down payment. The FHA loan program allows for a 3.5% down payment and a minimum credit score 580. If you’re purchasing a home for $400,000 the down payment or an FHA loan would be roughly $14,000, opposed to $60,000 if 20% was required. You do however pay a little more for the ability to put less down. An FHA loan requires you to pay PMI (or private mortgage insurance). This is insurance the government makes you pay for not having a loan to value of 80/20. Once your home appreciates, or your debt is paid down to a point we are mortgage is 80% or less of your home’s value, you can refinance out of the FHA loan and remove the PMI requirement. Another positive of the FHA program, is that it allows family members to help you contribute to your down payment.

203K HomeLoans

A 203k loan is similar to an FHA loan with an added bonus. The 203K loan allows you to borrow additional funds to make repairs to the property you purchase. For example, you can purchase a home for 300,000, and borrow an additional 30,000 for a kitchen and bathroom makeover.

5% Down Conventional Mortgage

There are also conventional mortgage programs that allow for a 5 to 10% down payment. There are no homebuyers courses,  income restrictions or PMI to pay, that you may receive a slightly higher interest rate.

VA (Veterans Administration) Home Loans

VA helps  Service members, Veterans, and eligible surviving spouses become homeowners. VA does not require a down payment to purchase a home. If your income qualifies you can finance 100% of the cost of your home.

Click Here to Find Local Lenders

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Dear Boston Landlords : Here’s How To Find Well Qualified Tenants

If you’re a landlord in the Boston area and you have a vacant unit currently or becoming vacant in the coming months, myself and the Mandrell Company would love to help you fill that vacant unit with a qualified tenant.

We do so completely free. There is no cost to you the owner or landlord. We start off by advertising your rental unit for lease. We help you show the apartment so you are not using your valuable time standing around waiting for potential tenants. We take care of that for you as well.

Once we find an applicant who we feel is qualified, based on the criteria that you’ve presented, we then do background checks, credit checks, employment verification and several other background checks to make sure that that person is qualified and they are who they say they are.

Once we gather all that information we then present you with a full package on that tenant. If you deem that tenant qualified and the person that you’re looking for we move forward with the lease signing process and if not we put the unit back on the market and proceed to find another qualified tenant.

We also, again, assuming the tenant is qualified, draft the lease for you, collect all the first month fees, security deposits and anything else that you were asking for and then assist you and the tenant through those first few days of keys, lease signing and various other things that need to be taken care of at the time.

If you do have a vacant unit, if you are looking to fill a vacancy we would love to work with you. You can contact us at 617-297-8641. You can also reach us at contact@mandrellco.com. We look forward to working with you. Thanks.

Thanks for watching our video. Did you find this information useful? If so please remember to like the video and also subscribe to our channel for more useful information. I would also encourage you to share this video with your friends and family. Thanks again and we’ll talk to you soon.

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Is The Dorchester Multi-family Market Cooling Off? Check Out These Numbers

If you know anything about Dorchester real estate, you probably know it’s been on fire for the last couple years…especially the 2-4 family buildings. But is the market cooling now? Are we at the peak? Check out the sales and rental numbers over the last 6 month and determine for yourself.

Here is Dorchester’s multifamily sales and rental market statistics for the last 6 months.

Total Multi-Family Listings SOLD: 104

Average Living Area by Square Feet: 3,362

Average Listing Price: $599,789

Average DOM (Days on Market): 51.58 Days

Average Sales Price: $593,745

Average Rent for 1 Bedroom Units: $1,645

Average Rent for 2 Bedroom Units: $1,972

Average Rent for 3 Bedroom Units: $2,211

Average Rent for 4 Bedroom Units: $2,564

 
I Want To Know My Home’s Value!

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!

Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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How Long Will It Take For My Home To Sell?

What is your typical selling timeline and why it’s important to you as a potential seller? If you’re selling a property, you really need to know what’s the next steps and What am I looking forward to. How soon do I need to move out of this property? How soon do I need to turn over the keys to the new buyer?

That’s what I’m going to try to lay out for you. Hopefully it’s pretty clear through my timeline sketch here. When you first put a piece of property on the market and you tell your realtor, let’s go ahead and let’s sell this property, the first thing that your realtor is responsible for doing is marketing and selling the property. Your realtor’s going out and they’re putting the property on the MLS, on Zillow, on Trulia, these different marketing websites, they’re putting it on their own company website. They’re going out there and they’re doing open houses, doing private showings. They’re trying to find that potential buyer for you.

Once that potential buyer is found, and by found what we mean is, a potential buyer has seen the property through an open house, through some type of marketing venue and they’ve now placed an offer on the property. You realtor at the time of receiving that offer is going to come to you, they’re going to negotiate with the potential buyer on your behalf to get the highest sales price with the best terms possible. Once you, the seller, and that potential buyer have agreed to a price, agreed to terms, we call that day one. That is your offer to purchase day, that is the day that the offer, or OTP, has been accepted. That starts your timeline.

You have agreed to sell for a particular price, the buyer has agreed to buy for a particular price, which starts your 45 day approximate timeline. From there, in a typical situation your buyer is going to go into their 10 day home inspection window. Most offers are submitted with a 10 day, standard 10 day window and this allows the buyer to now enter your property, and to your tenant units and to, if it’s a multi-family enter the property to inspect the home with a licensed home inspector, with a contractor, to make sure that the systems are working, to make sure that the roof is okay, to make sure that the windows operate.

They’re going to do a full inspection to make sure that the property is truly what was being presented to them and it is in good working shape. At the end of that 10 day period, you can go with the buyer, it can go in a couple different ways, the buyer can say, I love the property and I want to move forward. That’s what we hope that the buyer does. The buyer can say, there were some things I didn’t really agree with at the potential property, this is not the right property for me, I’m going to back out of this transaction, or the buyer can say yes, I like the property but the price that we agreed to on day one, I don’t feel like that price is appropriate any longer.

The heating system is not working the way it should be, or it’s working but it’s much older than I anticipated. The roof is fine, but it’s much older, it’s 20 years into it’s life and is going to need to be replaced. The buyer has three options, either back out, move forward or renegotiate after that 10 day period. They’ve done their home inspection, let’s say hypothetically we’ve renegotiated and you both, the seller and the buyer, have come to an agreement on price. After that, you as a seller, the buyer, would both hire attorneys and you would go into what’s called the purchase and sales contract, or P & S.

What that does, it solidifies the deal and puts all of the offer information and the final price with the terms into a nice contract that the attorneys can use and it helps us move forward into the sale with a more concrete contract than the offer and purchase. The buyer is also going to put down a larger deposit this time and say yes, this is the property that I want, I’m now going to pursue my mortgage. You’ve had day one, you’ve had your home inspection period, we’ve renegotiated the price, we’ve gone and we’ve hired two attorneys, we’re gone onto purchase and sales.

The buyer is moving forward, the seller is moving forward. Now for you as a seller, from that day 15 to day 45, it’s about a 30 day window, I’ll describe to you a little bit about what the buyer is doing. The buyer in this particular situation is putting their mortgage together. They’re going back to the mortgage company and they’re saying, I found the property that I want, I’m submitting my taxes now, I’m submitting my other documents and the mortgage company is processing all that information to make the distribution, to pay you for the property and to put a lien on the buyer’s property.

You on the other hand, you as the seller, are working with your realtor to do three main things. One is the bank of the buyer is going to send out an appraiser to appraise the property to make sure that the property is worth the amount of money that you have agreed upon. Your realtor is going to make sure that the appraiser has access to the property and that the appraisal is properly done for the bank. The realtor, your realtor is also going to work with the local fire department to make sure that you have a smoke certificate.

Any time a property is being sold, the property needs to come with a certificate from the Boston or local municipality saying that the smoke detectors are in working order. Your realtor is going to help you cover that and you also have to get a final water reading. What are you paying for water bills, at the closing day you want to make sure that all your water bills have been paid and leaving the new buyer, the new owner of that home with a clean balance, a clean water lien with the local municipality or local water department.

Day one, day 10, day 15 and then finally we get to day 45, sometimes there is delays depending on holidays, sometimes it’s bumped up depending on if the buyer can submit their mortgage documents sooner but it’s typically a 45 day timeline from the time that you receive that offer to the time that you get to closing day. At the closing table you would exchange keys with the buyer, you would get the check from the closing attorney for the balance, assuming that your mortgage will be paid off, all the liens will be paid off on the property and whatever is left over you would receive as the potential seller.

Again, when you’re selling a property you typically have about a 45 day timeline from the day that you receive an offer, that offer to purchase is accepted to the day that you close and the new buyer is now the owner of that potential property.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. In the fourth and final section of the webinar, we talk about six ways to create more value in Boston rentals, creating a “preventative maintenance schedule” and should you hire a professional and what do they charge.

For more resources and tips on managing your properties, please contact us.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. In the third of four sections of the webinar, we talk about protecting your real estate investments and essential landlord/tenant forms that you will need throughout the course of running your business. Many people will say it’s not “if” you will get sued, but “when” so learning about all the strategies that can protect your investments is imperative.

For more resources and tips on managing your properties, please contact us.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. In the second of four sections of the webinar, we talk about how you should handle your income, expenses and taxes when it comes to your rental properties. This is another area of focus that is very important when running your business.

For more resources and tips on managing your properties, please contact us.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. Even if you initially plan to self manage your properties, it is important to still factor in the cost of hiring a property manager. In the first of four sections of the webinar, we talk about the eight tools every small landlord needs, mastering your rental market and marketing your rental units. Each topic is very important when running your properties like a business and making the best decisions for the business.

For more resources and tips on managing your properties, please contact us.

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Recently we hosted a webinar on the topic of Building Wealth In Your 20’s & 30’s. In the third and final section of the webinar we covered building equity, tax savings and some very important closing thoughts.

For more resources and tips on how to build wealth, please contact us.

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Recently we hosted a webinar on the topic of Building Wealth In Your 20’s & 30’s. In the second section of the webinar we covered saving for retirement, the importance of life insurance and the different types of investments.

For more resources and tips on how to build wealth, please do not hesitate to contact us.

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Recently we hosted a webinar on the topic of Building Wealth In Your 20’s & 30’s. In the first section of the webinar we covered the importance of creating a budget for yourself and family, establishing personal finance goals and how to figure out, and improve on your credit.

For more resources and tips on how to build wealth, please do not hesitate to contact us. 

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Tenant screening can be one of the most important aspects to owning rental property. The more due diligence you preform in this area will only lead to a more stress free future when managing your property. So first, what are some qualities that make up a great tenant?

Qualities:
Ability to afford rent – not just the rent, but look for the applicant’s income from their job to be at LEAST 3x the monthly rent.
Stability of housing – look for renters that have lived somewhere for more than a few months at a time. Finding those who have rented for at least a year are most desirable.
Cleanliness – it would be best to desire someone that will appreciate the quality of apartment you are providing them and know that they are going to take care of the unit as you would. A neat trick that you can do is to take a peak inside the applicant’s car. This can often times be a good indicator as to how people treat their own possessions.
Pays rent on time – this one could be argued both ways, (opportunity to collect a late fee) but the issue here is the tenants are more likely to stop paying altogether in the long run. Ultimately this just creates more stress than is worth your time.

Here are a few things that you should be looking for in each applicant and if they do not meet these standards, should lead to a denial.

What I would call “absolutes.”
Income greater than 3x monthly rent
Good references
No evictions EVER
Clean background

As a reminder, never discriminate against race, color, national origin, religion, sex, family status or handicap as these are all protected classes according to Fair Housing Laws. You should also check up on State and Local Fair Housing Laws to further ensure you have doing everything within your legal right.

To truly succeed in being a landlord, treat it like a business. And this is one of the most important parts of your business. Do your due diligence, be consistent in your screening and always, always stay true to your screening guidelines.

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Over the years we have seen the real estate market in Boston increase steadily. The Hyde Park Multi-Family market has experienced a $100,000 value increase in the last 2 years. Multi-families were sold for an average price of $417,000 in 2014, today, they are sold for upwards of $523,000.  Multifamily homeowners must be ecstatic with this because they are recouping some equity and making a huge profit.

Multi Families 2014 2015 2016 (January to July)
# Sales 31 46 28
Average Sales Price $417,710 $450,087 $522,978
Days on Market (DOM) 58 84 79

Condominium values have risen slightly from last year but Hyde park is more of a family oriented neighborhood so we suspect single families and multifamilies are a more stable purchase in this area. 

Condominiums 2014 2015 2016 (January to July)
# Sales 29 29 16
Average Sales Price $244,712 $232,617 $240,573
Days on Market (DOM) 56 46 77

Single family sales are on track to surpass previous years with value steadily increasing. Families looking for a great neighborhood should consider Hyde Park as you still get some land and a decent sized home.

Single Families 2014 2015 2016 (January to July)
# Sales 99 116 55
Average Sales Price $353,837 $385,299 $392,760
Days on Market (DOM) 64 62 58

For more information on the Hyde Park market, contact your Hyde Park Real Estate Specialist Denisha McDonald

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Color Psychology for Home Staging

Do you like one color over another? Do you feel a different way depending on the color you see? There is a psychological response related to color choices. It is based on the mental and emotional effects it can have on a person. 

Warm colors: instantly grab people’s attention (red). Use this to draw buyer’s attention to a positive feature in your home. Use as an accent color. Yellow makes a home feel warm and inviting. A little 

Cool colors: It is relaxing and creates a spa like feeling depending on the shade. Green provides balance as it reminds people of nature. 

Neutral Colors: breaks up colors to let the eyes rest. 

Whites: Feeling of cleanliness,purity

Black: Authority and strength

Grey: Timeless, practical and provides perfect background for any color. 

For more resources and tips on how to prepare your home for sale, please do not hesitate to contact us.

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Your Home’s Been on the Market For How Long?

This blog is for my sellers in this crazy market. I want you to think of yourself as a homebuyer for a second… Would you pay more for a house if all the comparable homes in the area that have sold and others that are on the market are cheaper? What would make you choose the overpriced house?

Honest question because there are some people who willingly pay more for a home due to time constraints or a love for some specific feature in the home that they can’t live without. 

If there’s anything almost guaranteed to make your home sale experience a good or bad one, it will be price!

Price it correctly from the start and you’ll get offers in no time!

However, go with the “let’s see if there are buyers willing to pay that price” and as a home seller, you’ll undoubtedly draw the short straw!

How does a home seller know his home is overpriced?

The home is priced well-above neighboring properties for sale

“Of course, my home should be selling for more than some of my neighbors’ houses!”

As long as the market hasn’t spoken (i.e. no able & willing buyer and home seller have agreed on a mutually acceptable price), prices of properties in your neighborhood are just ASKING prices, but not given yet! As agents we base value on SOLD homes with a few adjustments to account for present market. If homes are listed and sitting in a hot market… that means they are overpriced.

The home isn’t seeing a steady stream of buyer showings

You agree on a list price, put your home on the market and nothing! No calls, no showing requests, nothing!! Other homes are on the market and accepting offers…what’s wrong? Well.. if you re the highest priced home in your neighborhood but clearly not new construction or newly remodeled… I think you know why.

The home hasn’t seen a single offer, despite months of marketing

If a home is priced right, there should be a lot of buyers knocking at your door (well, contacting your agent) and several showings. It should not take long for you to receive offers (within 30 days). If this is not your story… you should consider having a serious discussion with your agent and consider re-interviewing agents to sell your property.

The home has only seen ‘low-ball’ offers

The longer your home sits on the market, the greater the chance of low ball offers. All agents review days on market with their clients before submitting offers. If you have been on the market for over 30-40 days, expect less than asking, beyond that timeframe… even lower.

The real estate agent’s contract expired and the home is still on the market

When you agree to work with an agent, there is usually a start date and an end date to the contract. If you have not received offers by the conclusion of your contract… DO NOT RENEW with that agent. They did not fulfill their duties.  You also did not do your homework to understand the market and lower the price to what the market will bear.

Here at The Mandrell Company, we are honest and upfront. We provide honest numbers for home values. Some sellers choose other companies because our value was lower but we see that same home on the market months later and sometimes it sells for the price we told the seller but 5 months later. Had they listened, they would have had a sale months sooner.

For a complimentary value analysis and the opportunity to assist you in the sale of your home, please contact us to schedule your consultation. CONTACT@MANDRELLCO.COM or 617-297-8641.

 

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Many people think they can’t buy a home because they don’t make enough money. I honestly believe you can accomplish almost anything you put your mind to with hard work, sacrifice and some thorough research on your options. I am a fan of real estate as a tool to building wealth because it is tried and true…tested for centuries and when executed correctly (which isn’t that hard), it can really propel your financial trajectory. 

Let’s say you are looking for your first home purchase…. what are some sacrifices you are willing to make to get into the game? I’ll tell you what I would do in this aggressive Boston market, especially if I HAD TO stay in Boston.

  1. I would research the most inexpensive yet safe and inviting neighborhoods in the city…. currently, Mattapan is wide open but picking up steam, some parts of Dorchester, and Hyde Park, however, the prices in these areas are constantly being pushed to a new limit. 
  2. See you qualify for any city programs. There are numerous options available to first time homebuyers through the city. Although you may have money saved for a down payment, if there is free money available… utilize it.
  3. I would research streets within these neighborhoods to identify where I could see myself living for 3-5 years. Select multi-family homes in decent condition. Depending on the time of year and your pre-approval amount, the property condition could be a little worse and you can utilize a rehab loan. 
  4. Screen ALL tenants to ensure they are most likely to pay rent on time monthly. If the place comes with tenants, when do their leases expire? What is their payment history? Are they paying market rent? (sidetone: I am for giving a discount to great tenants but still keep within reach of market rents; not more than $200 discount. If you are providing a larger discount, this WILL hurt your resale value.)
  5. Occupy one unit for 3-5 years which will allow the market to possibly rise and therefore increase your equity; you can start saving again for the downpayment to your second property (now at 20-25% down)
  6. Be smart…run this like a business. Set aside 3-5% of rent toward long term maintenance and repairs (water heater, furnace, plumbing, roof). Budget for incidentals, things break down in every home over time. The income generated from your 1st property will be utilized to calculate your pre-approval amount for your second property.
  7. Depending on which home you like more, decide which you will live in and which will be 100% investment property.
  8. Rinse, and reuse. The key is knowing the numbers of how much to spend. Our agents are trained to evaluate the numbers to ensure you buy at the right price point for your goals.

To connect with one of our real estate specialists, please click on the link

Below is a story of a gentleman who followed the steps above and owns 9 properties while working full time. 

Full Story

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The Mattapan market has probably been the quietest in Boston  thus far. This signifies a stable community with homeowners who are satisfied with where they are and limited interest in selling. 

Multi Family homes have gained over $60,000 in equity since 2014. 

Condominiums are not popular in this area as evidenced by only one being sold thus far this year. 

Single family homes have experienced over $50,000 in added value of the past 2 years. Homes are selling for more and in less time. 

Multi Families 2014 2015 2016 (January to July)
# Sales 27 30 11
Average Sales Price $414,996 $434,081 $478,000
Days on Market (DOM) 70 57 124

 

Condominiums 2014 2015 2016 (January to July)
# Sales 7 5 1
Average Sales Price $115,357 $217,580 $185,000
Days on Market (DOM) 153 84 269

 

Single Families 2014 2015 2016 (January to July)
# Sales 14 26 12
Average Sales Price $255,743 $293,885 $313,158
Days on Market (DOM) 96 58 54

For more information on your mattapan market, contact your Mattapan specialist Rebecca Moise

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Break These Habits To Get From Paycheck to Paycheck TO Owning Your First Home (Pt. 3)

Over the past few days, we’ve reviewed some habits to get from living paycheck to paycheck to owning your own home. Below are some more habits you should consider altering if your long term goal is to build wealth. I think everything in moderation is okay but it is human nature and especially American nature to sometimes go a little over board.

11. Throwing Your Child a Huge Birthday Party

Your child will forgive you for not throwing them an expensive birthday bash. Children are as simple as you help them develop to be. I you keep their lives simple… why would they want the extravagant? I never understand the expensive 1st birthday parties… the baby has NO IDEA what is happening, it is simply an opportunity for the parents to have a party.

TRUE STORY: I know several people who throw their kids lavish birthday parties yearly so that their instagram/facebook/twitter is filled with photos/comments/likes yet… they are still renters and always complain that the market is expensive. Can you imagine how much you could save toward a down payment if you made the sacrifice for 2-3years? In addition to your regular savings, opt for a no party or low cost party. The money you save should go toward your down payment fund and NOT toward gifts There is a prize at the end of this sacrifice, I promise.

12. Shopping Impulsively

If you’re considering making an impulse buy, wait 14-30 days and ask yourself if you still want or need that item. You might even forget about the item completely, which pretty much answers the question for you. There is hardly anything in the world you need immediately (except maybe necessary food and water), Resist the temptation. If you do not need it… walk away. Always keep the big picture in the back of your mind.

TRUE STORY: To help me save, I put all extra cash (minus living/survival expenses) in a savings account that I do not have a card for and the bank does not have a physical branch (online only). If I wanted money… I had to transfer it into another bank’s checking account, this process took 3 days. The urge to purchase something dies when you have to wait 3 days to have the funds. It was my tool that helped me save $10,000 in a year and pay off my first car. You never realize your shopaholic tendencies until you start “rehab.”

13. Skipping Breakfast

Eating breakfast gets your day started on the right foot and can keep you from buying a huge, expensive lunch. Try filing breakfast foods, like oatmeal or eggs, which will likely keep your stomach (and wallet!) full. When you skip breakfast, you are starving by lunch time and become quite ravenous. This seemingly insatiable hunger leads to purchasing larger lunches and thus less savings toward your home.

TRUE STORY: There was a period in 2016 that I purchased breakfast everyday for my 2 children and myself (hangs head in shame.) This usually occurs during winter when it is cold and you crave the extra 10 minutes of sleep which then makes you late and breakfast has to be on the go. Easily, I spent $15/day that works out to $75/wk on BREAKFAST ALONE. Do not skip breakfast and DO NOT BUY breakfast either.

14. Paying Multiple Student Loans

Interest rates are still relatively low for student loans, and I presume mid range for credit cards depending on your score.  If you have the discipline to not take on additional debt, it could be a good time to consolidate your debt. By consolidating student loans, you might even be able to lower your monthly payments and extend your repayment period. For credit card and other debt, pay attention to the interest rate. The goal is to utilize a balance transfer, consolidate debt and pay as much as you can OVER the minimum payment monthly. Generally, most cards provide 12 months interest free. Plan to pay off this debt within 12 months. note: your interest rate when the promotion ends, should still be less than your current credit cards.

TRUE STORY: I was able to pay down $5,000 credit card debt by consolidating. I saved on interest, that I would have paid out monthly AND I received a lower interest rate than my current card. I hen went to my initial card and stated I wanted my interest rate lowered because I have good credit and guess what… they lowered my credit. YOU HAVE TO ASK! They will NOT tell you this information.

15. You Focus on Saving More — But Not Earning More

Millionaires aren’t in the business of wasting money, but they also recognize the greater importance of earning additional income as a way to attain financial goals faster. “[Wealthy people] understand that while there is a limit on how much you can save, there is no limit to how much you can make,” Tardy says.

In other words, even though slashing your expenses by $50 or even $100 a month will boost your bottom line a little bit — raking in thousands more from a salary bump will have a much greater effect.

Invest your time more wisely by seeking out ways to earn more. An obvious place to start is by examining your current salary. If you haven’t asked for a raise recently, and know you’re delivering value to your company, schedule a meeting with your boss to make your case for earning more.

The key is figuring out what skills you have that can be of value to others and then determining how to charge for that value.

 

We hope you found these suggestions helpful! For more tips on how to save for a down payment, please connect with us on:

Dorchester Real Estate Agent

 

Excerpts from full article.

 

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The Roxbury Real Estate market is experiencing a boom. Condo sales are through the roof and buyers cant seem to get enough. Single families and multifamilies are selling off market more than on market and being converted to condos because the demand is greatest. 

Mutli family home values have aggressively increased due to the high demand for rental units and the lure of condo conversions. MF homes were selling for $532,000 in 2014 and to date (keep in mind we are only in July) are selling for $879,000.

Multi Families 2014 2015 2016 (January to July)
# Sales 24 33 13
Average Sales Price $532,595 $574,782 $879,308 
Days on Market (DOM) 53 57 105

Half way through the year and condo sales have already matched the entire year of 2015 sales and surpassed that of 2014. Values have increased by $100,000. Savvy investors have taken notice and have been trying to meet the demand for luxury condos in the community. 

Condominiums 2014 2015 2016 (January to July)
# Sales 29 34 32
Average Sales Price $290,023 $404,094 $387,293 
Days on Market (DOM) 65 58 62

Single family sales have always been lower because they are hard to sell due to their large size. The average family does not want the responsibility of these massive Victorians. Savvy buyers have started converting them to multi-families to utilize the space. 

Single Families 2014 2015 2016 (January to July)
# Sales 12 14 7
Average Sales Price $435,975  $406,214   $444,964 
Days on Market (DOM) 63 94 43

For more information on the Roxbury real estate market, connect with your area specialist Terrance Moreau

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Avoid These Financial Sins When Applying For a Mortgage

If you are planning to buy a home soon, make sure that you are aware of all the factors that can affect your ability to qualify for a mortgage approval. Many people think it is as easy as walking into a bank and saying ” I want to buy a home.” Banks are in the business of lending and making money… they need to ensure you are financially responsible and able to repay possibly the most money you have borrowed to date. To allow for a higher probability for an approval and the best terms, follow these 10 home buying commandments.

Thou shalt not change jobs, become self-employed, or quit your job.

Changing jobs resets the clock. You need 2 years of full time employment or employment within the same field to be a god candidate for a mortgage. Any sudden changes raises a red flag. 

Thou shalt not buy a car, truck, or van.

Do not incur any additional debt when you plan to purchase a home. This not only affects your debt-to-income ratio, it also affects your credit score. You essentially just borrowed against your home loan. BAD IDEA

Thou shalt not use credit cards excessively.

I think this is a no brainer but again, do not incur any additonal debt. It shows that you are not responsible financially.

Thou shalt not miss payments.

Your credit score is made up of history of payments. If you show lenders you cannot repay your current debt… do you think they are more or less likely to approve you to take on more debt?

Thou shalt not spend money you have set aside for down payment and closing costs.

Purchasing a home is expensive, let’s be honest. Do not spend ANY money until you have keys to yout new place. There are usually surprise costs so be prepared. 

Thou shalt not buy furniture.

Again, NO SHOPPING until you are the legal owner of the property.

Thou shalt not originate any inquires into your credit.

Do not apply for any other credit, loans etc until AFTER you own your home. Inquiries raise red flags.

Thou shalt not make large deposits without checking with your loan officer.

EVERY DOLLAR needs to be accounted for. Do not make deposits or large withdrawals from your account without checking with your loan officer. They can advise on what to do, how to “source” your money etc. This goes back to money laundering, they need to ensure it is your money and not someone using you to “clean” their money.

Thou shalt not change bank accounts.

DO NOT CHANGE ANYTHING that affects your finances in any way until you take ownership of the home. 

Thou shalt not co-sign a loan for anyone.

DO NOT and i repeat DO NOT co-sign for anyone for anything. I have 2 kids and I already let them know… I will not be co-signing for student loans, car loans, nothing. If they laps on payment, it affects your credit score. Their debt also becomes your debt and impacts your debt-to-income ratio.

 

I hope these commandments help you as you start thinking of purchasing a home. Check back on our site for more information on how to make yourself the best candidate for a mortgage approval. 

Email us your questions and we will create a blog post on them to assist others searching for the same information. CONTACT@MANDRELLCO.COM

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When you are preparing to sell a MultiFamily, Here are 8 things you should do to ensure a smooth transition and to limit surprises. 

  1. Hire a Certified Professional Accountant (CPA) who is well versed in real estate. You want to know what your tax consequences are when you sell. There are capital gains taxes associated and you want to know next steps before you begin the process.
  2. Talk to a Realtor who is familiar with your area and multi-family homes. It is not just about listing your home, they need to understand the intricacies of a multi-family and how rent, condition, location etc affects the value. Is it a buyer’s market or a seller’s market?
  3. Does it make sense to sell as condos? Boston is experiencing a real estate boom and oftentimes in some neighborhoods, it is more profitable to divide the property and sell as condos as opposed to selling as a multi-family.
  4. Informing tenants of the sale. You want to inform them as early as possible. You want to be respectful of your relationship because a disgruntled tenant can hinder the sale of your property. You want their cooperation in coordinating showings, assist them in providing information for relocating.
  5. Gather property Financials. Buyers want to know the additional cost associated with the property so they know if the numbers make sense
  6. Gather tenant lease information. The buyer will want to see the lease agreements. When do leases expire? Are they market rent rates or below market rents?
  7. Fix any major and minor repairs in home. You want building in best shape possible as first impressions are lasting. Also, home inspections are a time to renegotiate the price. If you do not want to renegotiate the price, repair as much as you can that makes sense (discuss with realtor) so that you get the strongest offers.
  8. Connect with a real estate attorney. You want to ensure your best interests are protected.

For more information and helpful tips, please follow our blog posts or connect with us on  facebook or email at contact@mandrellco.com

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Break These Habits To Get From Paycheck to Paycheck TO Owning Your First Home (Pt. 2)

We discussed some habits to get from living paycheck to paycheck to owning your own home last week. Let’s review some more habits you should consider altering if your long term goal is to build wealth. 

6. Buying Brand-Name Products

Consumers find comfort in using brands they know and love, but oftentimes generic brands work just as well as their brand-name counterparts. Step away from brand names, and try a few generics. For example, you can save money by buying store-brand medications. I love hunting for a good deal and saving money, medication, oatmeal, rice, milk, frozen vegetables, plates, plasticware, among others, all taste the same (or close enough) and are of similar quality. What is the real reason you purchase brand name? If you TASTE the difference, then do not switch, but if it’s all about the “name” then you are missing the point. 

TRUE STORY: I purchase the above stated items in the generic store brand from Stop n Shop, CVS or Rite Aid. I am a frequent shopper at these retailers and I have come to trust their brand as much as I would the actual brand name product. If I were blind folded… couldn’t tell you the difference. My friend can taste the difference in water… so when she visits, I have to purchase Evian. 

7. Buying Lunch or dinner nightly

You’ve heard it before, but buying lunch at work is a huge waste of money. Buddy up with your co-workers, and try “brown bagging” it at work. You can end up saving a good chunk of cash. Having dinner at a restaurant is a great luxury, but it can wreak havoc on your finances. Be mindful about how often you eat out. Even something as simple as eating dinner earlier in the evening can help you eat less and save more.

TRUE STORY: Become friends with sites like Groupon, you can find great deals on ready prepped food to cut your cooking time in half. Not only do you get home cooked meals, you don’t need to be creative….they do it for you. Saves time, saves money (with coupons). Save the recipes to use again later without the company mailing you ingredients. 

8. Requesting Faster Shipping

It’s hard waiting for your online purchases to arrive, but paying extra for expedited shipping is a waste of money. Patience is a virtue, but if you really just want everything now, sign up for a service such as Amazon Prime, which includes free two-day shipping on most items. If you do not want to spend the $99 for membership, consider sharing an account with a friend. If you are a student, you get 1/2 off yearly membership. I think it’s worth it

TRUE STORY: I’m an amazon junky… I would do Amazonaholics Anonymous but it’s too good to quit. My family understands… if I can’t buy it on Amazon… you probably won’t get it from me. My life is hectic, I don’t enjoy shopping in stores, I need fast, economical and FREE shipping lol. PRIME is my BFF. 

9. Spending More Money on Snacks

According to The Huffington Post, Nielsen data showed Americans spend more on snacks such as protein bars, chips and beef jerky than they do on real food. If you plan your meals and shop with a grocery list, then you won’t need to fill up on unhealthy and expensive snack foods. It’s hard and no one expects you to perfect this over night but starting is better than not even considering it an option

TRUE STORY: My friend is obsessed with potato chips. She eats several bags a day. I’ve been working on getting her to cut it down to 3 small bags a week and to pack vegetables and fruits for snacks. She’s had more failed days than successful ones but she’s not giving up and neither will I. Anything worth having (a savings account, a healthy heart) is worth fighting for. 

10. Signing Up for a Gym Membership

Once January hits, many of the treadmills at the gym are usually occupied, and the Zumba classes are bumping. But just a few months later, the place looks like a ghost town — what a waste of money. Skip the pricey gym membership, and try joining an exercise club. Or, download a cheap fitness app to get in shape. I think this may be the worst New Year’s resolution idea EVER! Man I wish I owned a gym franchise… FREE Money because people never come back.

TRUE STORY: I fell victim 2 years ago and signed up for a gym membership because it had free babysitting… I figured, it took care of one obstacle. Well… 2 years later and I have been to the gym ONCE. I thought I cancelled the membership until I actually scrutinized my credit card statement and saw I was STILL paying for it. Thats $500 over 2 years I will never get back, never see a return on my investment and hang my head in shame over daily (well… when I remember… it’s so out of sight out of mind, it’s embarrassing) 

 

For more strategies on how to break bad habits and start building wealth please join www.urbanmoneymatters.com. If we do not have a seminar in your area, please let us know a good location and we will try to get something on the calendar. 

 

 

 

Excerpts from full article.

 

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Are you in the market to buy, rent or sell property in South End? Before you make a move, understanding the local market condition can make all the difference. We’ve outlined below exactly what’s happening with Condos in the area. All these number reflect what’s taken place over the last 6 months.

Condominium Listings
Total Condos SOLD: 251
Average Living Area by Square Feet: 1,148.33
Average Listing Price: $1,026,012
Average DOM (Days on Market):  36.49
Average Sales Price: $1,040,665

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to
Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales
Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will
be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!
Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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