Massive Multi-Family Portfolio goes to Creditors

James Morrison — Mon, 25 Jan 2010 13:37:19 +0000

New York City’s most well known blue collar neighborhood has been given to its creditors. Stuyvesant Town and Peter Cooper Village, a massive portfolio of 110 buildings and 11,227 units located on the East River in Manhattan was controlled by Tishman Spyer Properties and Blackrock Realty. Once hailed as the most expensive deal in the country sold by Met Life to the current ownership for $5.4 Billion.

The current ownership struggled under the massive debt it took on to acquire the portfolio and New York City’s rent control laws. In the end the rents collected did not cover the mortgage.

Read the whole article here - New York Times
Photo Credit - Nicole Bengiveno/The New York Times

Apartment Deals.

James Morrison — Fri, 15 Jan 2010 19:45:25 +0000

Just a quick observation for anyone looking in South Boston. I was just going through our apartment database (southie’s largest) and noticed a decent amount of 1 bedroom apartments that are under $1,000.

Click here to check them out.

Protecting Tenants - Foreclosure Act of 2009

James Morrison — Thu, 14 Jan 2010 00:33:38 +0000

I ran into this the other day while looking at a Multi-Family that was in foreclosure and thought it might be of benefit.

The Protecting Tenants at Foreclosure Act of 2009 was sponsored by, soon to be retired, Sen. Dodd (D-CT) and is supposed to help tenants caught up in this current wave of foreclosures. Here’s what it means:

Tenants:
Protecting Tenants at Foreclosure Act of 2009, passed May 20th 2009, gives tenants a minimum of 90 Days to vacate the foreclosed property. This law applies to all states. Also, tenants must be allowed to stay in the property through the end of their lease, with two exceptions:
1. The new owner wants to occupy the property as a personal residence.

2. There is no lease (month to month), or there is a lease but state law allows the lease to be terminated at any time upon notice.

As a tenant who is occupying a property that has been foreclosed on, you have the right to stay in that property a minimum of 90 days from the day notice is served to you. You must continue to comply with the terms of the lease agreement including the payment of rent on time.

* What happens to my Security Deposit? - The previous owner or property management company should transfer your security deposit to the new owner or property manager of the foreclosed property. Within 30 days of vacating the property, your security deposit is sent back to you minus any deductions allowed by the lease agreement.
* I am on a Month to Month lease, what happens to me? - As a tenant on a month to month lease you are allowed to stay up to 90 days from the date notice is served to you.
* Do I have to stay? - No. The new law provides the tenant with the right to stay. It is the tenants choice whether to execute this right.
* My lease expires within the 90 day period, do I have to leave as soon as it expires? - No. You can stay for 90 days.
* I do not have a copy of my lease and neither does the new owner, what happens now? - You would be considered to be on a month to month lease paying market rent and subject to the 90 day period.

New Landlord

As the new owner of the foreclosed property, you have to provide the tenant with a 90 day notice to vacate the property. This applies to lenders, investors and owners with the intent to occupy the property

* We just purchased the property at foreclosure auction, what should we do? - First thing to do is get in touch with the current tenant and let them know that you are the new owner. Get a copy of the lease agreement from the tenant (if one was not provided to you from the previous owner or property manager). Determine if the tenant wants to stay.
* We were not provided with the tenants security deposit - If the previous owner or property manager did not transfer the tenant’s security deposit to you, it is not your expense to give a security deposit back to the tenant.
* We are not experience landlords, who can we contact to help? - An experienced Attorney, Property Manager or Licensed Real Estate Agent can provide the expertise you need.

Have questions? JamesM@NextGenRealty.com or 617.894.0305 I can help.

Renters Insurance

James Morrison — Sat, 09 Jan 2010 11:36:59 +0000

I’m going to hear this question daily, come January 15th, when every student in the city returns and starts looking for a new apartment for next fall, “Should I get Renters Insurance?”.

My answer is always this, “Can you afford to replace all your stuff in a worse case scenario?”. I always get a blank stare back and something along the lines of… “Dude I’m still in College”. Think about it. Just about every student now-a-days comes equip with a laptop, cell phone, camera, DVD player and TV. Considering renters insurance is extremely inexpensive why wouldn’t you want to protect these items.

For the properties that we manage here at NextGen Realty, we actually expect the tenants to have renters insurance and ask them in the tenant interviews.

Zillow Adds Apartment Feature to Website

James Morrison — Fri, 08 Jan 2010 17:58:00 +0000

Seems with the residential market plodding along slowly that Zillow has decided to add rental listings to its website as a new feature. I just did a quick search of the Boston area and found a whopping 5 apartments available for rent. Yes, I know that the feature is new and that more listings will be added as time goes on.

I do wonder, however, how Zillow will stack up against Craigslist or Postlets since Zillow is promoting its new rental feature as a pay service; $9.95 for a 180 days of advertisement. I can say this if you have an apartment on the market for 180 days you have some serious problems.

If the 5 apartments currently on Zillow don’t do it for you, might I suggest you check out BostonPads.com we have more than 5 apartments for rent.

What to look for in 2010

James Morrison — Thu, 07 Jan 2010 19:24:15 +0000

Look for the media to cycle away from the doom and gloom reports of residential real estate and instead focus more on the doom and gloom of commercial real estate. As our economy continues to bottom or hover near the bottom, depending on who you listen to, we will hear more and more about foreclosures of apartment buildings, retail centers, and office complexes. To be honest this will be much worse than the residential real estate bubble. The debt used to fuel the commercial building craze of the past real estate cycle is about to come due in 2010.

In my opinion, banks will be more susceptible to failure now than during the residential crisis because their loan amounts are much much higher. Were moving into a period where those who have patiently waited to put capital back to work will begin to do so. Or as Lisa Campoli (Executive VP of Colliers, Meredith & Grew) said, “2010 will be… the period in which the logjam broke in commercial real estate”.

In 2010 lenders will have to write down their investments and allow for “market clearing prices”, as Campoli states in her What’s ahead interview with the Boston Globe this past Sunday. Long story short 2010 will be the housekeeping year for 2011. That’s when growth should return.

Green Line Meeting - Review

James Morrison — Thu, 19 Nov 2009 04:52:38 +0000

It’s time to get serious about investing in the overlooked squares of Somerville. By Jan. 1st, 2015 Davis Sq. & Porter Sq. wont be the only hot spots for condo development & strong, consistent rents. Here are some facts from tonights meeting that have given me confidence.

- The State of Massachusetts has a legal obligation to complete this project by Dec. 31st, 2014.
- The completion of tonights meeting keeps this project on time and 10% completed
- Completion of this meeting and the environmental impact report disclosed allows for preliminary engineering to begin.
- The state is currently seeking 50% of the funding for this project from federal grant money.

By far and away the most important fact is the 1st one. No more studies or delays. The state has 6 years to get this project finished or it will face 100’s of lawsuits from neighborhood associations that have been lobbying for this transit system for close to 60 years.

The auditorium was about 75% filled tonight and local politicians and department heads from all the towns were there to listen to the report and then give official comments afterward. There are still some major concerns to be settled like the Rt 16/Mystic Valley Parkway station and the location of the maintenance building.

However it is very hard to over look the fact that this project will be completed in what I can only foresee as the next upswing in real estate values. We only need to look to the red line extension to see how trans-formative that was to the Porter and Davis Square neighborhoods when the red line came to them in 1985.

As far as value added plays go, you can upgrade all the kitchens and build as many roof decks as you want. Nothing beats buying in a neighborhood that didn’t have a T stop and then 5 years later does. Your property values and rents will sky rocket from the easily accessible T Stops.

Click Here to view the report on line.
Click Here to view an interactive map of the project

Green Line Extension Meeting 6pm Tonight - Somerville High School

James Morrison — Wed, 18 Nov 2009 19:19:13 +0000

For those of you who are following the Green Line Extension closely there is a meeting tonight at Somerville High School. I’ll be attending this meeting and blogging about it later tonight so those who can’t make it will have a general idea of how the extension is progressing.

Click Here for an interactive map of the proposed extension into Somerville, Medford, & Arlington:

November 18, 2009 at 6:00 pm
Somerville High School – Auditorium
81 Highland Avenue, Somerville, MA 02143

Members of the public, agency representatives, and other project stakeholders are invited to attend the hearing and to make comments on the project.

Public comments on the DEIR/EA should be made to the Secretary of Energy and Environmental Affairs, through the Commonwealth’s MEPA process. The federal government conducts its own review of the document to ensure adequacy of the document under the federal National Environmental Policy Act (NEPA) process, and accepts public comment to the NEPA process in two ways: First, the comments made at the November 18 Public Hearing will be included in a transcript that will be submitted to the Federal Transit Administration (FTA). Second, EOT will compile the comment letters submitted to through the MEPA process, along with responses to these comments, and provide them to FTA after the completion of the comment period.

All written comments must be submitted to:
Secretary Ian Bowles
Executive Office of Energy and Environmental Affairs
MEPA Office
Attn: Holly Johnson, MEPA Analyst
EEA #13886
100 Cambridge Street, Suite 900
Boston, MA 02114
Fax: 617-626-1181
Email: Holly.S.Johnson@state.ma.us

4 Students or less law update for Boston

James Morrison — Mon, 19 Oct 2009 23:11:01 +0000

The Boston Herald ran a story today that had me laughing. The reporting is a bit all over the place but here is the gist of what’s happening with this ordinance.

Residents of Allston, Brighton, & Mission Hill were tired of listening to parties held by their college student neighbors. So the residents complained to their city councilors and the mayor; who in return passed an ordinance limiting the amount of students who can live together in one apartment (4 or less as undergrads) to keep their constituents happy and themselves in office.

Here’s the funny part, the Inspectional Service Department, who you would expect to be the evil executioner of this law has held off for a variety of reasons (as reported by the Hearld):

Because the law was changed in the middle of the school year, the Inspectional Services Department delayed enforcement until this September to give landlords time to comply.

Several property owners have sued the city in Land Court over the rule, spurring ISD to take a cautious approach.

Federal privacy laws prohibit colleges and universities from disclosing where students live.

ISD asked landlords leasing units in violation of the new law to notify the city in return for a grace period for compliance, but no one responded.

“Folks are not giving us the information unless we catch them in the act,” said Assistant Commissioner Dion Irish, who oversees housing inspections for ISD. “It can be a bit of a cat and mouse game.”

If I had to make an educated guess, I would think Mr. Irish is concerned with the federal discrimination laws and is waiting to see how the courts rule on this ordinance before he goes into full enforcement mode.

File this one as another useless ordinance by the city council and the mayor.

20 Days till September 1st. Are you all rented up?

James Morrison — Mon, 10 Aug 2009 23:40:09 +0000

Only 20 days remain in this current rental season. If you’re a tenant that waited till the last minute you are certainly in the drivers seat. Inventories are extremely high. Landlords, if you haven’t already, now is the time to pullout all the stops: Pay the Brokers Fee, Ask for less money up front, reduce the price of you apartment. Every applicant you get from now on out is going to expect some type of concession from you.

Click on the chart below. It shows each neighborhoods rental inventory as of today.

Today’s Adventure: Apartment Showings.

James Morrison — Thu, 09 Jul 2009 02:50:08 +0000

It’s 10:36pm and I’m still at the office after a day full of showing apartments. I was everywhere today. Watertown, South Boston, Dorchester, & Allston. Here is the one theme I have seen throughout all these towns and neighborhoods. ITS JULY! Literally there are 54 days till September 1st and the apartment inventory is only going to get smaller from here on out. My recommendation to anyone still in need of an apartment. Bring your checkbook with you on your showings. I had one client loose out on a apartment because she couldn’t get the check to me fast enough. Another group is bringing the applications and check right now so they do get scooped on the apartment they say today. If you need to move grab something now the worst apartments you see this week will be the best apartments available next week because the inventory is decreasing. Landlords are willing to negotiate because they’re worried about going vacant now. Like I said its now 10:49pm and I’m still here setting up for tomorrow.

Allston Center’s watchful eye.

James Morrison — Thu, 18 Jun 2009 01:47:28 +0000

Hope you all enjoyed Bunker Hill Day in Boston today! Yeah, I know, political holiday. I worked today too. There was only thing good about Bunker Hill Day: Free Parking!

I would’ve completely forgotten to if it weren’t for Pat. The always pleasant and watchful security guard at the Bank of America in Allston Center. If you have ever run back to your car to see an extra 15 minutes in the meter and the meter maids have already passed you by - thank Pat. While your at it thank him for the day of free parking. Pat your the man!

Selling Real Estate is more than numbers.

James Morrison — Sun, 14 Jun 2009 02:01:07 +0000

Unlike the stock exchange where there are centralized locations for buyers and sellers to congregate. Real Estate transactions take place in many shapes and forms. Which often result in different price points for sales. From the MLS to word of mouth in a popular neighborhood. There are many ways for a real estate transaction to happen. This is known as an imperfect market and your real estate agent may be working against you in it.

Take this for what it is worth. I’m about to explain how sometimes your real estate agent can hurt you and its going to sound like a rant - because it is. Tomorrow I will be in Cambridge looking at multi-families with a good friend/client that’s in town from overseas. He’s a busy guy and we only have time to look on Sunday before he decides to buy something. I’ve been setting up the appointments all day today and 90% of the agents I’ve contacted have gotten back to me. The one that gets me the most (and he will go unnamed) is this one agent who only has one listing. He emails me back and says that he doesn’t work on Sundays. Sundays! The busiest day of the week for my profession. Plus he’s only got one listing. In this market, if i were in his position, I would meet anyone at anytime if they wanted to see my listing.

I feel bad for the seller he represents. Tomorrow night I will be writing an offer for a property we saw that day and it wont be his because he doesn’t work on Sundays!

This folks is an example of an imperfect market. This imperfection - a lazy real estate agent. Who actually is making it harder to sell his property.

Boston Single Family Stats for May 2009

James Morrison — Fri, 12 Jun 2009 05:19:51 +0000

Here are the statistics for Single Family Homes in Boston, MA for May 2009. I plan to post charts on the Single Family, Condo & Multi Family markets in Boston at the beginning of every month with commentary on the comings and goings of our current market.

If I can get this down to a science. I will also include Brookline, Cambridge & Somerville as well.

Landlord Tips - Roof Decks

James Morrison — Thu, 12 Feb 2009 15:50:38 +0000

I just came across this piece of information while talking to one of our Property Managers this morning here at NextGen Realty. Seems that Roof Decks within the City of Boston need to be inspected every 5 years by the ISD.

I never knew this but if you’re a property manager in the city or a landlord you may want to read this. It’s a quick 2 page read.

Roof Deck Inspections

Boston has its own Patriot Act - For Students.

James Morrison — Wed, 11 Feb 2009 23:10:26 +0000

Councilor Ross is at it again. Apparently he thinks last years law to limit undergraduate students to 4 bedroom apartments or less is not intrusive or discriminating enough. Now he wants the colleges to do his dirty work. Councilor Ross has proposed that the Universities in Boston should keep records of and track their students who live off campus.

It seems that the City Council President is a little miffed that the Inspectional Service Department (ISD) is having trouble enforcing his discriminatory law. The Boston Globe reports:

But the law has largely been flouted by students and landlords alike, and the city’s Inspectional Services Department has said that federal privacy laws hamper their ability to determine whether the occupants of overcrowded apartments are students.

I wonder if anyone mentioned this to Mr. Ross as he was drafting the law? It would be very easy for me to rant on about this subject but I would like to point out what someone on Boston.com had to say about this proposal.

How on earth are the colleges going to be expected to sort through which students in their database are subject to the law, since grad students aren’t subject to the new law?

On top of violating the student’s privacy and aiding and abetting a discriminatory law, the universities would then be responsible for figuring out what year and course of study the students are pursuing. Would a student in a 5 year BA/MA program be considered an undergrad, or a grad student? Would a first-year master’s student living with 4 undergrads break the law?

The law is stupid and should be stricken. If you don’t like off-campus housing, let the schools build dorms!

I would guarantee that most of the “problems”, beyond noise and littering, and some public drunkenness here and there, in A-B and Mission Hill is caused by the full-time residents. College students aren’t in gangs, they’re not roving bands of thieves and armed rapists, and most don’t have weapons, which constitute the bulk of the crime in those parts of the city.
by thisisdumb09 February 11, 3:36 PM

It looks like the universities in town agree with thisisdumb09 the Boston Globe reports a “cool” response from university officials who have more important things to do then act as big brother. Instead of dealing with this legal quagmire they would rather have a realistic chance at developing campus housing. Unfortunately neighborhood associations are fighting Boston College over expansion in Brighton, the same holds true for Harvard in Lower Allston, and Suffolk University on Beacon Hill.

Everyone wants college kids to stay on campus. Unfortunately when the campuses run out of available housing and need to expand the neighborhoods scream to the high heavens and foolish laws/proposals like this current one are the by-product. End this viscous circle. The next time Councilor Ross’ constituents complain about Northeastern or BU expanding he should remind them about the late night parties and overall outlandishness undergraduates are stereotyped with and suggest that this is a chance to get them back on campus.

Click Here for the original article by John C. Drake of the Boston Globe.

Click Here to register your opinion with Councilor Michael Ross.

Your Financial Advisor is going to kill me.

James Morrison — Tue, 10 Feb 2009 11:00:10 +0000

Did you know that you can use your IRA to invest in Real Estate? Your Financial Advisor does and he (or she) is very mad at me right now for bringing this up. In 1975 Congress passed the Employee Retirement Income Security Act (ERISA) which is the law that created the Individual Retirement Account (IRA). My favorite part of this law is that congress only specified what it could not invest in: Life Insurance Contracts & Collectibles such as Art.

Notice something missing from that list? If you said real estate you would be correct! Wondering why you haven’t heard about this? Here is what IRA123.com had to say:

Once ERISA was passed, the securities markets were responsible for bringing the IRA and 401(k) to the mass market. The banks and brokerage houses created a misconception that buying stocks, bonds and mutual funds was all that was allowed through retirement products such as an IRA. This is 100% false! Banks and brokerage houses have a vested interest in having you invest in stocks, bonds and mutual funds - not real estate, businesses and other non-traditional investments. Do not let their interests, or the lack of knowledge on the part of your financial advisor limit your ability to maximize the investment potential of your retirement accounts.

I, myself, only became aware of this information in the last couple of days due to one of my more financially astute clients and felt that this information should be passed on. In the name of diversification shouldn’t your portfolio include real estate as well as stocks and bonds? Whether its a multi-family producing rental income or a TIC (tenant in common) there are plenty of ways to preserve and grow the capital in your retirement accounts while sheltering you from the current bear market the financial markets are experiencing.

I’m going to setup an Self Directed IRA folder in the categories on the left hand side of the website. I will go more in depth about this topic and break down examples to help you understand this subject more confidently over the next couple of weeks.

A couple of my large clients are transitioning capital away from hedge funds and private equity groups to invest in large income properties. Why shouldn’t the average investor be able to do the same – and tax free!

Rentals Get Hit – First Time in 5 Yrs – or did they?

James Morrison — Mon, 09 Feb 2009 20:53:38 +0000

Have you heard the news? Pending home sales were up in December ‘08. Could this be the Phoenix rising from the ashes of our current real estate market? I know a lot of economists hope to use this data to show a bottom in the market. Unfortunately, it’s more like the groundhog peeking out of his hole wondering if he’ll see his shadow. Regrettably we’ll still see a lot of mortgage resets in ‘09 which will keep downward pressure on the current real estate market as more properties fall into foreclosure. Looks like 6 more weeks of winter.

Instead of regurgitating what the nation media has already reported I thought I’d go a little deeper and comb through the census data to see how this is affecting the Boston Rental Market. Traditionally when home sales are up it means vacancy rates for rentals are up as well. People are moving out of rentals to buy homes. This causes landlords to either lower rents or offer rental incentives to keep or attract tenants.

Thankfully, I can’t believe I am saying this, due to tough development laws and lack of buildable land in the Northeast, the vacancy rate in our neck of the woods has gone down. You read that right; comparing Q4 ‘07 with Q4 ‘08 the vacancy rate in the Northeast dropped .3% to 6.3% vacancy in ‘08 compared with 6.6% vacancy in ‘07.

Our winters may be cold and our summers short but at least here in the northeast we aren’t breaking our backs to keep our tenants happy and the bank trying to fill vacant units. I hope this helps as you all build up your rental portfolio’s.

To see the complete U.S Census Data – click here.

No High-Def Wiring? Landlord Must give Tenants a Choice

James Morrison — Mon, 12 Jan 2009 20:25:27 +0000

I found this question on the American Apartments Owners Association (AAOA) submitted by Janet Portman of Inman News. If you live in an older apartment building and are having trouble with a High Defintion TV then you definitely want to read what Janet has to say below.

Q: I live in an old apartment complex. I would like to purchase a big new flat-screen TV for my living room, but have encountered a stumbling block.

The landlord has referred me to the DIRECTV agent who services our buildings, but he says he can’t give me high definition until the owners improve the wiring. And when I ask the manager, I get the runaround.

My unit has a large private deck where I could easily mount a satellite dish and run wires directly into my apartment, thus bypassing the present wiring. I heard a year or two back about a law that should apply to a situation like mine — permitting a tenant to independently contract for individual cable or satellite television despite any exclusive arrangements by the apartment ownership. Could you provide me a citation to this statute or ordinance and give any clarification of my options? –Jim A.

A: Your memory has served you well — just about a year ago, the Federal Communications Commission issued a final regulation that forbade owners of multi-unit residential buildings from entering into “exclusive” deals with audio and video providers. The theory behind the rule, which was opposed by apartment industry lobbying groups, was that exclusive arrangements kept healthy competition from flourishing, thereby making it more expensive for tenants to receive their programs. The apartment industry argued to the contrary, claiming that exclusive deals resulted in more competition, for the exclusive deal itself, and that the price savings would be passed on to the tenants. Importantly, the regulation decreed that any existing exclusive arrangements would no longer be enforceable.But here is where your situation and the regulation you remember part ways. Your wish — to receive high-def TV — wouldn’t necessarily be solved by invoking the FCC rule and calling a different cable provider (whom your landlord wouldn’t necessarily have to let into his building — the ban on exclusive contracts didn’t mean that every cable company has the right to enter the building). You’d still face the roadblock of the antique wiring. You have, instead, hit upon a different solution, which is to rely on your right to receive satellite transmissions independent of any wiring in the building or existing cable deals between the owner and a cable company, exclusive or not. Since 1996, the year the Federal Telecommunications Act was passed, landlords cannot unreasonably interfere with tenants’ rights to mount an antenna within their exclusive rented space. You can learn the specifics of this rule by going to the FCC Web site (www.fcc.gov) and typing “Over-the-Air Reception Devices Rule” in the search box

Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of “Every Landlord’s Legal Guide” and “Every Tenant’s Legal Guide.” She can be reached at janet@inman.com.

Credit Crunch ends College Expansions.

James Morrison — Fri, 21 Nov 2008 03:30:23 +0000

Out of the current financial debacle comes a little nugget of good news for our local landlords. As reported in todays Boston Globe by Peter Schworm Northeastern University is delaying its plans to build a 600 bed dormitory on St. Botolph Street. Shelved for the foreseeable future the project was slated to open in 2011.

Which means landlords that own property in the vicinity of Northeastern will not have to worry about vacant apartments anytime soon.

Other colleges shelving on campus building this year include MIT, BU and Harvard University.

How close to the T is this Place?

James Morrison — Sat, 25 Oct 2008 11:15:42 +0000

Every time someone calls me about an ad I have this question always come up. If you have found your way to this blog because you are trying to learn about Boston and her metro area’s let me help you out:

MBTA.com/Ridertools
or
Thrall.net

Whether new to town or a student looking for a T-stop. Both of these websites are amazing and I use them daily when explaining distances and types of transportation available in neighborhoods throughout the city. Give them a try.

Apartment Rentals are Key

James Morrison — Fri, 24 Oct 2008 11:00:28 +0000

I’ve written about this subject before but want to revisit it for the sake of our Landlords. If you are trying to rent an apartment in the off peak season (September - January 15th) then you must drop your keys of with a real estate office that you trust. I recommend NexGen Realty (I work here), Boardwalk Properties or Jacob Realty. All three are powerful rental companies with amazing marketing techniques. Unfortunately if we don’t have the keys to your unit a great tenant may look elsewhere because they were able to get into that apartment on their own schedule. Imagine a bride walking down the aisle to get married without a priest there. 80% of the work is done but you cant finish the ceremony. Same is true in rentals without the keys we cant finish the job.

I know what you are thinking, “But James, I will just meet you there when you have a prospective tenant” or “Here are the tenants phone numbers call them to let them know - they will let you in”, sounds perfect in theory but when life takes over it not so simple. I just cross referenced our last 15 rental deals here at NextGen with our key list and for 11 of those deals we had the keys to the units. Truthfully we are 74% more likely to rent your unit if we have your keys. Also those units were rented within 20 days of listing.

I can understand any fears you might have about handing over keys. Here are some questions to ask your broker when handing them over.
1) Will my keys be kept in a safe?
2) Is there someone there to monitor them. Example: Frontdesk attendant who oversees signout sheets.
3) Do you lend the keys out to other agencies. You want to hear an emphatic NO.
4) Is the Safe or Front Desk under Video Surveillance. You want to hear YES here.
5) Can I get my keys back whenever I want them. Yes, usually we take your originals and make copies though so you always have your own set.

NextGen Realty offers all of these comforts. So please if you need your place rented don’t get left standing at the alter. Gives us a set of Keys!

New Rentals in the Navy Yard

James Morrison — Thu, 23 Oct 2008 18:45:45 +0000

Last month while I was on vacation a block of truly luxurious apartments came on-line in Charlestown’s Navy Yard. Managed by Roseland Properties and called the HarborView at the Navy Yard this building is truly top of the line. Originally slated to be a condominium building it offers much larger floor plans than the traditional luxury apartment complex. My favorite items are the hardwood floors and the amazing views of the harbor and the city skyline. 90% of luxury apartment buildings in our area are carpeted and offer lessor views. I just toured the building a couple of days ago and was very impressed. Look for some virtual tours that I just took for this site tomorrow. For now enjoy some pictures. If you would like to view this apartment complex or others like it in the city feel free to email me. You’ll get my services for free because the buildings pays the brokers fee. Plus I always know what specials they are running.

Local Media Follows College Move-Ins

James Morrison — Tue, 02 Sep 2008 16:51:56 +0000

So I finished my Move-Ins yesterday for all of Boston, go home, and turn on the TV to see Hizzoner standing in a 7 Bedroom apartment over on Chestnut Hill talking about the deplorable conditions of this apartment and the absentee landlord. Which, after watching the segment, was all true the apartment was a mess and the landlord lives out of state. What’s interesting/funny though is that Mayor Menino picked a 7 bedroom apartment to grandstand in. After all he signed into law a city ordnance that bans more than 4 undergraduate students living together. Guess they couldn’t find a 4 bed that looked as bad.

Check out the segment for yourself here: Channel 7 Move In Coverage

Case-Shiller Report: Breaking it Down

James Morrison — Tue, 25 Mar 2008 16:50:49 +0000

The Case-Shiller Report (CSR), which provides a glimpse into the housing market, is closely reported by all the major media outlets but there are some things about this report that aren’t revealed in a 45 second sound bite.

First off, their index for home sales in Boston is down 3.4% which in this market is great considering other area’s of the country are down double digits.

It’s hard for me to say this is an accurate forecast on the health of our Boston housing market. Here’s why:

1) Local Media Outlets lead people to believe that the report covers all of Massachusetts. It does not. The geographical region in which the data collected to compile the CSR for Boston is Boston-Cambridge-Quincy. So its not even an accurate report for the city of Boston’s health let alone the whole state

2) The CSR only takes into account single families. Even further it excludes New Construction Single Family homes. To qualify for the index the home must have two transactions on the title. In other words, the house must have turned over (sold) at least twice. This creates a huge whole in the report since Boston (as well as Cambridge and Quincy) has a very large supply of condos and even in this slow market new homes are being built.

If you want to try your luck at forecasting I would look no further than the Warren Group for local data. They take the concerns raised above into account in their reports.

That said both Professors Case and Shiller are very smart economists and are widely respected in their field - as they should be. I just wish they would fill in the gaps to provide a more accurate forecast of our Boston Market.

Real Estate Investing - You Need the Eye of a Tiger

James Morrison — Tue, 25 Mar 2008 16:07:57 +0000

CNBC landed an exclusive interview with the worlds best golfer Tiger Woods. The beginning of this interview talks about his current investments which included a billion dollar real estate development in the Bahamas.

Check out it out for yourself.

Tiger Woods Interview

Why some apartments rent and why some don’t.

James Morrison — Wed, 19 Mar 2008 22:14:27 +0000

We had a landlord call the office today asking why his apartments haven’t rented yet. That sparked me to look at the rental deals we had closed over the last 3 months to try and find any trends as to why some apartments rent and why some don’t.

I wanted to see if any of these deals had anything in common with each other. Going through the database I found a couple of trends that popped up. You might think that they had to do with certain areas of town and how much the rent was. You’d be mistaken.

Here are the 4 reasons why these units rented. (In order of importance)

1) The landlord gave us keys or put a lock box on the property.
2) The landlord gave us the current tenant’s phone numbers.
3) We had taken video of the unit
4) We had taken pictures of the unit.

After running all the closed deals through our database to check these points I found that 84% of these deals had met all 4 of the points above and that 95% of these deals had met points 1 and 2.

The moral of the story, make your unit easy to show and it will rent! It seems like every two months we are adding another shelf to the key closet. Currently we have over 1300 keys (not including master keys and luxury buildings), these landlords get it.

They make it easy for us to show or collect video/pictures which, in return, gets the unit rented a lot faster than trying to setup a time with the landlord.

Lesson: When you call to yell at us that your unit hasn’t rented – give us a set of keys and a week!

How Safe is this Neighborhood?

James Morrison — Wed, 27 Feb 2008 19:37:55 +0000

Great article today on MSN Real Estate about the limits we as Realtors can go to when discussing the safety of a Neighborhood.

In Massachusetts the standard response of most Sale Agents will be “Under MA law we are not allowed to discuss the safety of a neighborhood. If you’d like, you can research crime statistics by contacting the local police department.” I know. I hate saying it as much as you do listening to it. Unfortunately under fair housing laws it can be seen as steering which is illegal if we promote certain neighborhoods over others.

Check out the link above to learn how to research neighborhoods. I will be adding the websites mentioned in the article to this blog so that you will have a quick reference point when it comes to Crime Statistics, School Systems, and Sex Offenders.

Boston Journalist vs. TomTom

James Morrison — Mon, 18 Feb 2008 10:30:28 +0000

I don’t normally ready the Auto section of the Globe but the headline TomTom appears to have met its match caught my eye.

I don’t want to rehash the article you can read it by clicking on the link above.

The only thing I would like to point out is that Google Maps has the same problem for inter-city locations as TomTom.

Example: 11 Knowlton Street, South Boston, MA will take you to South Street in the Ladder District of Boston instead of the actually address in Southie. You need to enter Boston, MA for everything and provide the accurate zip code. The globe staffer had the same problem with his TomTom.

Check it out. Of course a good broker doesn’t need either. We already know the streets!

Ocean Front Condo’s for less than 250K - Really?

James Morrison — Mon, 18 Feb 2008 04:03:35 +0000

Is your goal is to wake up every morning to the aroma of wind swept salt air and panoramic ocean views? Maybe in retirement? A second home perhaps? Why not now?

Our good friends at the Boston Globe chose to highlight an auction of condominiums going on March 9th by the Atlantica, a beautifully styled piece of New England architecture, located directly across from the Atlantic Ocean. These one & two bedroom units will required bids starting from $215,000 to $315,000 depending on the size and location in the building.

Seems like a great buy. Currently according to the Atlantica sales office a 641 sq. ft. 1 bed 1 bath would run you $300,000 not bad if you can purchase the unit at the opening bid of $215,000. The same holds true for a 1289 sq. ft. 2 bed 2 bath that is priced at $449,900. Thats over $134,900 in savings if your the only bidder.

I say only bidder because it is possible you may be. The Atlantica is located in Revere, right along Revere Beach Parkway. I am not looking to bash Revere tonight. Actually I think the buyers of these units will be pioneers. Revere gets beat up pretty badly in Real Estate cycles. Look no further than to your neighbors at the multi-colored St. Georges Condominium Complex. This south beach inspired building fell to the same fate in the 1980’s. Dress Shoes without socks anyone?

To get back on point, the buyers at this auction will be purchasing at the bottom of the latest real estate cycle. Not a bad place to pick up real estate considering that we’re not making anymore ocean’s. Add in a possible casino (Wonderland Park down the Street is competing for a casino license) and suddenly Revere may become a destination town again. See if those condo’s are still selling for less than 300k then.

Again this will require a pioneering mind. The casino may never come. But then again the Ocean isn’t about to leave.

Housing OK Motgages in Free Fall

James Morrison — Tue, 29 Jan 2008 11:00:05 +0000

The Warren Group has released its year end data for 2007 this week. What strikes me most is not the decline in residential sales or prices (down 5% from ‘06). Instead it’s the huge (and I mean huge) pull back in mortgage originations. Down 60% (60%!!!!) from the highs of 2003 and down 22% year over year.

Here are some of the numbers from the Warren Group:

Home purchase and refinance loans hit their lowest level since 2000 last year, statistics compiled by Banker & Tradesman publisher The Warren Group show. The number of mortgages for one-, two- and three-family homes and condominiums originated in the Bay State dropped from a high of more than 793,000 in 2003 to 325,925 in 2007, representing a decline of nearly 60 percent in loan activity over that five-year span. The number of residential loans also dropped 22 percent compared to the 416,342 mortgages originated in the Bay State in 2006.

With these kinds of numbers brokers are running for the doors at alarming speeds.

Mark McDonough left struggling National City Corp. six months ago to become vice president and sales manager in the mortgage department of Salem Five Bank. About one in five of his former mortgage industry colleagues has had to switch careers in recent months, he said.

“They’re opening bars, doing other types of sales, waitressing or working as nail technicians,” said McDonough.

Eastern Bank Senior Vice President of Mortgage Banking Stephen MacQuarrie said he personally knows “dozens” of people who have lost mortgage jobs as the foreclosure crisis and attendant credit crunch deepens.

Eastern itself had to lay off a few employees due to shrinking loan volume, MacQuarrie said, although the bank also has carefully and selectively hired a few experienced loan originators in the past four months.

On an upbeat note NextGen Realty is hiring!

Sales Data Made Easy

James Morrison — Tue, 29 Jan 2008 02:00:03 +0000

Graph made possible by the Warren Group

Congratulations Team!!!

James Morrison — Tue, 29 Jan 2008 01:00:39 +0000

Today is a Great Day to be a member of NextGen Realty, Boardwalk Properties, and Jacob Realty. Our Companies just crossed the 10,000 Landlords mark in our data base with the official count at 10,008 and growing!

Also we now have over 75,000 listings in the New England Region. Lets make it 100,000 by the end of ‘08!

A special thanks to our customers and clients who continue to keep our Websites at the top of ever search page imaginable. BostonPads.com, OffCampusPads.com, SouthBostonApartments.com, BackBayPads.com and CambridgePads.com are just a couple of your favorite sites to find apartments for rent and sale.

Thank You for your continued support!!!

The domination continues!!!

Great Job!!!

Will no more than 4 students living together solve anything?

James Morrison — Mon, 28 Jan 2008 16:59:42 +0000

Boston’s City Council has quietly endorsed a proposal, spearheaded by Councilman Michael Ross, to cap the amount of students that can rent an apartment in our city.

If passed, what has been marketed as a bill to curb “Animal House Antics” by the Boston Herald, no more than 4 students will be allowed to occupy an apartment. Naturally this has set off a firestorm through neighborhoods such as Allston/Brighton, Beacon Hill, The Fenway, & Mission Hill pitting long time resident vs. landlords who rent to students.

What has caused a lot of consternation is that this proposal now goes before Boston’s Zoning Commission. Which, if approved would usurp the rights of private property owners and place added restrictions and regulations on income properties that they depend on. This is a public taking of private property rights by way of zoning who can live and who can not live in an apartment.

Looking at this objectively I am trying to find the “why” as to what may have caused this latest round of Government vs. Property Owners battle. It seems to me that Councilman Ross’ issue is noise complaints. Scott Van Hooris, of the Herald, mention on more than one occasion that the families in these neighborhoods want the noise levels produced by students to be curbed. Can we really believe that only students make noise?

Councilman Ross has received a few complaints from a very small yet vocal group of people that vote. This is the only reason why he is bringing this issue to the forefront. Councilman Ross also knows that it is very easy to blame students for all matters as it is an easy win because they don’t vote in the districts that he represents. However, is this knee jerk solution going to solve anything?

As a Real Estate Agent who got his start in this city as a rental agent I can confidently say I have seen 100’s of apartments in all neighborhoods. I have seen apartments that students, young professionals, professionals as well as families live in. Let me tell you something folks, students are getting a bum wrap! There are plenty of apartments that I have walked through that are ill kept by all of the above. And Parties? Let me tell you another thing, in talking with hundreds of landlords on the phone, ( this is what I do all day – talk to landlords) I have determined through my non-scientific study that: Landlords actually complain more about professionals and young professionals throwing parties than students.

So lets get back to the matter at hand, will fewer students in an apartment actually solve anything? I have had the liberty of calling over 200 landlords in the past two weeks, and nearly all of them said, “There will be more parties and noise if you give less students more room in the same apartment”. There will be more noise because you created a party room that used to be a bedroom. Another landlord put it best, by saying, “if we put only 4 students in a 5 bedroom (what the %^$#) do you think is going to happen to that 5th bedroom?” He went further on to say, “their going to build a bar in whatever room becomes vacant.”

This makes perfect sense to me. Even to this day, at a party, people usually gravitate to an empty room or a room with the most space rather than a crowed living room. I think we can all agree to that. So in essences what Con. Ross is trying to prevent is actually going to come back and hurt him politically.

Here’s a better solution if the real issue is noise complaints supposedly caused by students.

I would suggest increasing the fine for noise violations. Maybe we should just double the fines? Right now if the police come to your house for a noise complaint it will result in a $500 fine and an arrest. How many students or professionals for that matter will throw a party if the fine is $1000? I know I sure wouldn’t and I believe most of Boston would never throw a party if they knew that type of fine could be levied against them. So aren’t we going about this in the wrong manner? Lets just increase fines and there will be no parties ever because only the rich will be able to afford the fine. I certainly know I was poor in college – a $1000 would send me home packing.

One more thing that I have noticed about college students today that has dramatically change since I was in school is that they actually speak far less than we did 5 years ago. When I walk into an apartment and I am showing the property all I ever hear is students typing away with their head phones on. They prefer email, texting, instant messaging, chatting in online forums and social networks. To be quit honest this new socially wired student has become completely introverted and less social. What I see are students far less willing to throw parties at their house when they can throw one on facebook, my space, & second life. I think we are building a world of kids that will be socially stunted and never be able to communicate.

I would like to point out that students are not a protected class under state or federal laws and although they are vital to the economy of this city they are often the brunt of a couple of politicians pushing their own agenda. We should start embracing America’s future rather than targeting them for easy political gain. We should not make Boston such a difficult place for our best and brightest. If we continue to make them feel unwelcome here they will leave to other states. Where will that leave our city? There have been numerous articles written lately that say we are losing college graduates from our state in unprecedented record numbers. By passing this ordinance, which clearly attacks students, I think we are setting ourselves up, long term, to make intelligent people not want to live here. Do we want to loose our next Bill Gates, Marc Zuckerburg, or Shawn Fanning Do we want to loose that? Shouldn’t we be embracing our young bright minds that helped build our great city?

GBREB - Protects 40B Law

James Morrison — Wed, 09 Jan 2008 18:59:41 +0000

The Greater Boston Real Estate Board has successfully blocked a movement to repeal Massachusetts Affordable Housing Law on Beacon Hill.

Thought this might be of interest to some of my readers.

Having trouble seeing this email? http://www.gbreb.com/GovAffairs/Leg_Update121907.htm

Affordable Housing Law Repeal Update The Massachusetts affordable housing law, Chapter 40B, was placed under attack by a group of individuals that wanted to repeal it. They drafted a ballot initiative petition to be put before the voters of the Commonwealth which required 66,593 signatures of registered Massachusetts voters to begin the process of having the petition appear on the November 2008 ballot. According to Secretary of State William Galvin’s Office, proponents of repealing 40B fell 32,744 signatures short. The repeal 40B initiative received only 33,849 officially certified signatures by the Secretary of State. GBREB would like to thank all our members from each of the 5 Divisions who rallied in defense of this important issue. GBREB has historically, and will continue to aggressively oppose any effort to repeal 40B. The next opportunity for this issue to reappear on the ballot would be in 2010.
Greater Boston Real Estate Board * 11 Beacon Street Boston, MA 02108 * www.gbreb.com

Having trouble seeing this email?

http://www.gbreb.com/GovAffairs/Leg_Update121907.htm

Affordable Housing Law Repeal Update

The Massachusetts
affordable housing law, Chapter 40B, was placed under attack by a group
of individuals that wanted to repeal it. They drafted a ballot
initiative petition to be put before the voters of the Commonwealth
which required 66,593 signatures of registered Massachusetts voters to
begin the process of having the petition appear on the November 2008
ballot.

According to Secretary of
State William Galvin’s Office, proponents of repealing 40B fell 32,744
signatures short. The repeal 40B initiative received only 33,849
officially certified signatures by the Secretary of State.

GBREB would like to thank
all our members from each of the 5 Divisions who rallied in defense of
this important issue. GBREB has historically, and will continue to
aggressively oppose any effort to repeal 40B. The next opportunity for
this issue to reappear on the ballot would be in 2010.

Greater Boston Real Estate Board * 11 Beacon Street
Boston, MA 02108 *
www.gbreb.com

Is that… Mold!?!?

James Morrison — Sun, 06 Jan 2008 10:30:00 +0000

The latest four letter word in real estate is something that is everywhere… literally. I am not kidding. Some down right scary studies have come out about mold; citing brain damage, links to cancer, and reproductive problems, though nothing is definitive yet. Read: it’s still early.

I thought it would be good to devote some time to this subject since a lot of the apartment complexes in the Boston market are older and if not taken care of properly could become subject to mold infestation.

Okay a little bit about Mold. It’s a fungus that is present in every aspect of our environment. Outdoors it breaks down organic objects like dead trees, fallen leaves, and even us after we pass away. Inside it is known for eating dust and dirt found in damp areas of the house. That musty smell in the basement or garage is mold.

Naturally, just about, all the mold we come in contact with is harmless. However, mold strains such as aspergillus and stachybotrus have been known to produce potent toxic spores that can cause health issues. Knowing that lets see how mold spreads.

For mold to multiply two ingredients are needed: moisture & food. Food for Mold could be anything from wood, to insulation, to carpet it all depends on how damp it is. Like termites mold outbreaks can weaken the structures of buildings as they eat away at floor boards and support beams.

To prevent this from happening in your investment property you need to keep a keen eye on water leaks. Faucets, Shower Heads, and Drains should all function properly. Two years ago my best friend rented a two floor apartment in Southie. One of those floors was a finished basement that flooded in that freak storm we had that dropped 5 inches of rain in two days. The basement flooded and although his landlord was quick to react, the standing water in the basement quickly made the sheet rock moldy and it all had to be torn out.

Should you ever experience this with one of your properties please call a Certified Industrial Hygienist (CIH). I know, sounds like the dental hygienist from hell, but this person will help you restore your property and more importantly provide you security should you ever find yourself in a legal jam. There are plenty of them located in the Boston Area.

CIH’s are very thorough with mold remediation (removal) and will provide you with documentation as to what kind of mold is in your property and how they went about removing it. Which helps at a later date should you end up in court.

So to recap, not all molds are harmful. Make sure that there are no damp areas in your properties. Should toxic mold occur call a Certified Industrial Hygienist and let them do their job.

Hope this helps.

For more information visit:
www.cdc.gov Center for Disease Control
www.naahq.org National Association of Apartments

Vote Second Best Business Video on YouTube by The Economist

James Morrison — Sat, 05 Jan 2008 13:00:45 +0000

These two men are the John Stewart and Steven Colbert of Britain. This Video is about the sub-prime markets. It’s about 8 min’s long and extremely funny!

Will Ferrel confronts his vicious landlord

James Morrison — Fri, 04 Jan 2008 23:00:00 +0000

I know this YouTube spot has been going around the net for a while now but thought since I write so much about investment properties and landlord/tenant relations this would bring a smile to your faces.

I still laugh every time I watch this…

Cold and Slow Winter Months = Great Buys

James Morrison — Fri, 04 Jan 2008 19:49:58 +0000

Right now in the Winter of 08, almost everyone trying to sell a house or condo is starting to get ansy and mostly freak out. Not only are we experiencing a slow real estate cycle but, Nov - March is traditionally one of the slowest periods of the year for residential real estate.

A couple of my friends have figured this out and have asked me to help them find condos for them. They realized no one looks this time of year and have visions of great deals, which is very possible right now.

Everyone talks about “Motivated Sellers” but if you happen to take interest in a property owned by someone being relocated or has already moved to a new home elsewhere they will be seriously motivated to make a deal. Especially this time or year when not many people are looking – Advantage Buyer.

If you have questions about what is a reasonable offer this time of year or are interested in looking during this quiet months feel free to email or call me.

Landlords: Don’t Wait to the Last Minute

James Morrison — Fri, 04 Jan 2008 01:30:03 +0000

Ok, with the Holidays past us, it’s time to gear up for the Apartment Rental Season. Agents in my office at NextGen Realty are burning up the phones contacting our landlords about their September ’08 availabilities.

If you haven’t already you should contact your tenants and see if they wish to renew their lease(s). If you have college seniors living in any of your units you are almost guaranteed to see the unit turnover and will want to fish while the fish are running!

If you don’t have the time, call us at 617.208.2100. We’d be glad to contact your tenants or send your renewal letters for you. We often provide this service free of charge for over 9,980 landlords who collectively own over 67,400 units throughout Boston and Massachusetts. You can sit back and relax by the fireplace and let us get out there in the cold and figure out how to rent your property!

We also offer complete range of property management services - and one of the biggest draws this year has been landlords calling us non stop for snow removal! If you are ever interested in a snow removal quote - I would suggest going to www.bostonsnowremoval.com . These guys will come out to your property and give you a free estimate on how much it will cost to keep you both up to code with your local city/ area snow removal requirements (if any) as well as keeping your tenants happy!

Not bad huh!

Happy 2008!!

James Morrison — Thu, 03 Jan 2008 20:35:50 +0000

I hope everyone has returned refreshed from their Holidays. I wish you all the best of luck achieving any goals that you may have set for 2008.

Look for some predictions for ‘08 sometime later this weekend. Still need to catch up on some ‘07 numbers first.

I do have one goal for the Boston Real Estate Blog… 2 Postings a day. That’s simple… right??

Happy New Year!

James Morrison

Charlesview Apartments Complex Gets A New View.

James Morrison — Fri, 30 Nov 2007 16:20:26 +0000

Most of Lower Allston groans when Harvard releases details of its latest land acquisition in their neighborhood.

Not Today!

What’s loving referred to as the communist block, in my office, the horrible looking cement fortress known as the CharlesView Apartment Complex has agreed to a land swap, of sorts, with Harvard University. The residents of CharlesView will locate to, the Harvard owned, Brighton Mills Shopping Center where soon to be constructed apartments, townhouses, and condos await them all within walking distance of a Shaw’s Supermarket and other retailers.

The old location at the corner of North Harvard Ave and Western Ave will be integrated into the Harvard Allston Campus Plan. More Importantly it will be torn down! A massive $1 Billion science complex will spring from the rubble. Basically the Real Estate version of the Berlin Wall coming down!

For more on this Development click here

Commercial Investing. Advantage Small Investors - For Once!

James Morrison — Sat, 17 Nov 2007 11:00:58 +0000

The Wall Street Journal reported a couple of weeks ago about the opportunities that exist in this current market for small investors of commercial properties.

A lot of my clients fit this category and I thought I would pass this information on to the readers of the Boston Real Estate Blog. Unfortunately, the WSJ is a subscription site, so sadly, I can’t link the article to this post. However, I will post the main chunks of it here since it is a great article.

Basically, the credit crunch is putting a strangle hold on the acquisitions department of big institutions. Think REIT’s, Pension Funds, and Private Equity firms that rely heavily on financing when making real estate investments. This has created an opportunity for local small investors who are normally bested by these large firms. Take the Journals example for instance:

When Andrew Brooks first offered $15 Million for a medical-office building in Valencia, Calif., in early August, the seller turned down the 44-year-old orthopedic surgeon.

But just three weeks later, the seller called back Dr. Brooks, who lives in Los Angeles. The two large real-estate investment trusts that had knocked the doctor out of the running with their bids were no longer interested. Dr Brooks believes that the companies were unable - or unwilling - to come up with the cash.

…He quickly put down a “substantial” nonrefundable cash deposit for $800,000 less than he had originally offered, and is waiting for the deal to close.

You better believe deals like these are happening in Boston! Southern California is certainly feeling the affects of a slow real estate market more than the Boston market. But that does not protect us completely from failed projects and squeamish institutional investors.

Right now the sweet spot for “small investors’ is the $5 - $15 million range, especially for apartment buildings and retail centers. These rents will work for the smaller investors who are looking for cash flow. At this price level institutions, who have to meet certain yield requirements for their investors, would be speculating on property appreciation and in this market it wont provide the returns they are looking for.

My appointment book can verify this. 75% of my time these past couple of months has been servicing my commercial clients. This opportunity will fade as the credit markets loosen and the big firms get back into the game. For now though the small guys are getting some great deals!

Reference:
Small Investors Gain an Edge in Properties, By Kemba J. Dunham, The Wall Street Journal

Buyers should Copy Investors

James Morrison — Fri, 16 Nov 2007 10:30:40 +0000

Yesterday I spent the afternoon looking at apartment complexes with one of my original clients. He is an elder gentleman who will remain nameless because he is well known within the real estate community.

We were discussing the current market conditions for residential sales. He simply began to shake his head and wave his hands in disgust saying, “I don’t understand why more people aren’t buying homes.” I countered with the current credit crunch… he gave me a look that said if you were my grandson I would slap you upside the head.

His advice and he told me to put this on my computer, meaning the Blog, is that if you can afford to buy a home right now do it! He literally said, “to hell with what might happen in the next year… you can’t time markets… if you are going to live in that home for more than five years you will be very thankful!”

Now, he is doing the same as an investor. Apartments, Retail Centers, Office Parks, he wants to see it all because he feels the timing is right. I reminded him that commercial real estate is different and he reminded me that I was busy playing with GI Joe’s the last time this opportunity occurred (early 80’s - due to the change in the tax code) when he was on a buying frenzy.

His simple - yet highly profitable advice - by now! Smile and Wait.

MA Casino’s

James Morrison — Thu, 15 Nov 2007 11:10:38 +0000

A lot has been written about the Governors Casino plan for the State. I have held back from talking about the subject because I feel the opening of an actual casino is years away… if ever.

But, speaking hypothetically, I would like to point out what will mostly likely happen to the towns that do capture a casino. A lot of home owners are in two camps. Either the prices of their homes will plummet or increase. Honestly it’s a little bit of both. If you look at the statistics of homes in the towns where casinos such as Mohegan Sun and Foxwoods were built, you will see that homes dipped in value as the casinos open and then within a year returned to normal (pre-casio) projections.

Those who own homes abutting the actual casino might see a loss in value. Say if a parking lot is going up across the street or the service entrance is visible from your property. For the most part if these projects are built, they will be destination resorts and you won’t be looking at either. Most likely your home will be across from one of their golf courses which may increase the value of your property.

If you find yourself abutting land that has been optioned for a casino by a developer make sure you follow the development process closely and worked with your elected officials and city planning boards to limit as much exsposure to any negative impacts (such as above) that might occur.

The clear winners, in a casino town, will be landlords. Those who own multi-family properties in these areas will experience a one time explosion in job growth that will translate into higher rents from their properties as employees of the new casinos move into town. The supply demand curve will tighten and landlords will reap the benefits. One Caveat; keep your properties up to date.

Thats basically my take. If these casinos are built on the South Shore and Western Suburbs it will in the long term be a plus for their local economies and real estate values. I hope that these Casino’s are built in towns like Middleborough and Palmer, as to fit the destination development model, and not area’s such as Boston and New Bedford. I understand that Suffolk Down (Boston) or New Bedford will prosper from them economically but these are the areas where the after affects and negative generalizations of casino’s will occur due to an urban location.

Renters Insurance - Get it !!!

James Morrison — Wed, 14 Nov 2007 18:00:07 +0000

While in the office last night I ran into one of my fellow agents who looked like his dog just got run over. Turns out his apartment was broken into and he lost his Laptop, TV, DVD’s and a number of other things.

I asked him, “Do you have Renters Insurance?” You might of thought I kicked him while he was down. Turns out I kinda did - he didn’t have any.

I know a lot of students and young professionals follow this Blog to get an idea of what rental markets are starting to heat up. I am going to take a second and speak directly to them. Get Renters Insurance! It is extremely cheap compared to home owners and car insurance and covers all personal assets!! Contrary to popular (and incorrect) belief the landlord is not responsible for your personal belongings.

If there is a hole in the wall, leaky faucet, or broken window the Landlord is on the hook. If there is a theft, hurricane, or explosion your personal belongs will not be covered by the landlord along with a number of other things.

Please continue with this article from MSN it is the best nuts and bolts article I could find about renters insurance on the web.

If you would like some local providers of renters insurance please email me

Tight Real Estate Market in Boston. You bet for Rentals!

James Morrison — Wed, 14 Nov 2007 10:30:04 +0000

Banker & Tradesman, yesterday, reported that despite the current slowdown in residential sales statewide the rental market is looking at projected increases of 3.9% in 2008 and 3.8% in 2009 due to good/average job growth. Every area of the Boston Metro region experienced growth except the North Shore due to a glut of new apartments.

Companies like AvalonBay Communities, Northland Investments Corp and Roseland Property Corp. have added thousands of apartments on the North Shore. AvolnBay has built roughly 1,000 apartments in Saugus, Danvers and Peabody

What I found surprising is that our market will absorb the glut of condo’s that have been languishing on the market for sale and are now looking for renters instead. Here is what Mark Hickey, Real Estate Economist of Property & Portfolio Research, the company who created this report, had to say…

Boston is a supply constrained market for apartments. A lot of people [investors] like Boston because supply is predictable and it is difficult to build…noting that it can take years to get a project through the approval process

and on the glut of condo’s…

Boston did not have the level of ground-up condo construction that happened in the Southeast and Southwest… also noting that in the Boston market condo’s tend to be larger than apartments making conversion difficult

To close out this post. The average rent of a two bedroom apartment in Metro Boston is $1,523.00 and the vacancy rate stands at about 5%. The vacancy rate impresses me more than the rent. There are an awful lot of projects about to come online in the next two years and we’ll continue to absorb all of them.

Original Article: Things getting Tight Within Rental Sector, By Aglaia Pikounis, Banker & Tradesman.

Tis the Season - for Exam’s

James Morrison — Tue, 13 Nov 2007 18:21:44 +0000

This morning I received a call from my boss, and CEO of NextGen Realty, Demetrious Salpoglou. The cheerful sound coming through my cell phone meant only one thing - our yearly real estate exam was today.

Every year Demetrious in all of his impressive/annoying OCD mannerisms administers a 115 multiply choice exam that combines both the legal aspects of the Greater Boston Real Estate Board and our own office policies. Sounds like fun - right? Well, not exactly. As I walked through the front door you could hear the groans coming from the senior agents as they worked their way through the exam.

No one likes exams. But I will say this. Every single agent in my office is now on point due to this exam. As much as we hate it, we’re all able to provide a more professional experience due to this hated exam.

If your wondering what I got on the exam? Demtrious (D as we call him) was smiling, meaning that I get to take it again. I got a B+

No chance of grading on a scale either. Even though I missed by one dam question!

Luxury Apartment’s, Luxury Condo’s and Now… Luxury Office’s

James Morrison — Thu, 08 Nov 2007 02:00:29 +0000

This is a great idea!

As reported in the Boston Globe this morning Ronald Druker (the man behind Heritage on the Garden & Atelier|505) has submitted plans to the city to redevelop the infamous Shreve, Crump & Low building into a swank luxury office building. The property is being designed by Cesar Pelli.

Most office developments focus on finding tenants and then negotiating build out costs for the space that they decided to lease. Meaning when they look at potential sites it is usually a wide open space with wires and drop ceilings hanging all over the place. Druker is presenting a lavish turn key option to the likes of hedge funds, lawyers, and private foundations. That makes it much easier for them to just move in. This is an excellent way to stand out in a market that is currently seeing amazing growth in the commercial areana.

My Favorite part. This Office Building will have Balconies off of some of the offices. An amazing view of the gardens and the ability to walk outside to enjoy it will offer some serious bragging rights.

Boston Globe, Opulence is Key to New Project, By Thomas C. Palmer Jr.

College Housing Hunt Begining Early

James Morrison — Wed, 07 Nov 2007 20:48:38 +0000

Advisory to Landlords in Allston, Brighton, Brookline, Mission Hill, Northeastern, and Mission Hill neighborhoods. Our website traffic is starting to trend up considerably and earlier than last year. Seems like some students are preparing to find an apartment for Sept 08 before they go home for the holiday break.

Now is the time to call your students especially those who may be seniors and ask them what their plans are. It is always better to be ahead of the curve when it comes to student rentals.

Websites seeing a bump in traffic are:

MissionHillPads.com
OffCampusPads.com
BrooklinePads.com
SymphonyPads.com
AllstonPads.com