Please Join Sullivan Multi and Local Area Marines
Friday, December 1, 2006
1 India Street, Portland, ME
2 to 7pm
▪ Visit w/ Santa
▪ Military equipment display
▪ Check out military vehicles
▪ Donate a toy to “Fill the Humvee”
▪ Enjoy refreshments – coffee and donuts provided by Dunkin Donuts
Please bring a new, unwrapped toy
*Cash donations also accepted
Wednesday, November 29, 2006
Thursday, November 23, 2006
Post Election Market
On the Monday following the election, the Sullivan Multi phone started ringing with calls from buyers. By 10:00 AM Monday morning, we had scheduled 5 showings for 5 different properties - a record for Sullivan Multi in any market and simply amazing in this down market. It would not have occurred to us that the election was a factor except that we had noticed a similar pattern two years ago.
Back in 2004, our first year in business, we had a nice two unit listed near Woodford's corner. The property had a steady run of showings up until a few weeks prior to the Presidential election. The showings dried up and we were forced to question the price. Remember, two years ago, we were in the middle of a very hot market. The election never occurred to us as a factor to consider.
After much debate, we recommended to the seller to hold to his price. Sure enough, the week following the election, the showings picked-up and within two weeks the nice two unit was under contract.
The beginning of September was busy for about two weeks but then buyer activity slowed significantly. Post-election Monday came and the phone started ringing off the hook. The buyers are back! While I don’t have scientific proof of cause and effect relative to the election, the pattern seems pretty clear. It is a good reminder to keep global events in mind in the midst of local issues, seasons, weather, and the holiday season.
Everyone is trying to figure out this new real estate market. Is the bubble bursting? Many believe that the spring will tell the truth. For the last couple weeks, the truth is that there are buyers still willing to pay a fair price for decent properties for a long term investment while locking at a good interest rate - a good formula in any market.
Back in 2004, our first year in business, we had a nice two unit listed near Woodford's corner. The property had a steady run of showings up until a few weeks prior to the Presidential election. The showings dried up and we were forced to question the price. Remember, two years ago, we were in the middle of a very hot market. The election never occurred to us as a factor to consider.
After much debate, we recommended to the seller to hold to his price. Sure enough, the week following the election, the showings picked-up and within two weeks the nice two unit was under contract.
The beginning of September was busy for about two weeks but then buyer activity slowed significantly. Post-election Monday came and the phone started ringing off the hook. The buyers are back! While I don’t have scientific proof of cause and effect relative to the election, the pattern seems pretty clear. It is a good reminder to keep global events in mind in the midst of local issues, seasons, weather, and the holiday season.
Everyone is trying to figure out this new real estate market. Is the bubble bursting? Many believe that the spring will tell the truth. For the last couple weeks, the truth is that there are buyers still willing to pay a fair price for decent properties for a long term investment while locking at a good interest rate - a good formula in any market.
Monday, November 06, 2006
Multi Unit Real Estate Tips - Raise Your Rents
The Sullivan Multi Minute Tip: Raise Your Rents!
Are your rents at market value? How do you know?
As we go through many apartments in the Greater Portland area, we often surprised at the great disparity in rents. One day we see an average 3 bedroom for $1000/mo in a marginal area of Portland. The next day we see a 3 bedroom with parking and water views for $950/mo with heat included! What gives?
There are two explanations. First, most experienced landlords rent units just below market value. This enables them to find good tenants and makes it hard for those good tenants to leave. Avoiding turn-over is the gospel of successful landlords!
The second reason for low rents is simply the landlord’s lack of awareness. You do not know what other similar units are renting for if you are not out looking. So get out there. Read the paper, search on craigslist.com, and see what other similar apartments are renting for.
In the short term, low rents result in a significant loss of potential income (obviously). For example, $100 per month under market in three separate units is $3,600 per year of lost pre-tax income. What if you invested that money?
There may be an opportunity to raise your rents even higher! We see all kinds of creative ways that some landlords get higher-than-market rents. How about furnishing your apartment? If your property is in a nice part of town, tenants may pay up to $200 more per month for a furnished apartment. How about finding a business that needs corporate rentals. You are the investor! Find the angle! There is always a way to do a little better than the average landlord and see a significant return over time.
Finally, in today’s buyer’s market, higher rents equal higher prices. Think of it this way – every rental increase is instant equity in your property!
Sullivan Multi Monthly Minutes are sent to you from Bill Sullivan, Brit Vitalius, and John Graham, the ‘Multis in Greater Portland, That’s All We Do’ people. Bill and Brit are principals of Sullivan Multi Family Real Estate, LLC, One India Street in Portland. FMI Call 207-771-5556 or go to http://www.sullivanmulti.com/
Are your rents at market value? How do you know?
As we go through many apartments in the Greater Portland area, we often surprised at the great disparity in rents. One day we see an average 3 bedroom for $1000/mo in a marginal area of Portland. The next day we see a 3 bedroom with parking and water views for $950/mo with heat included! What gives?
There are two explanations. First, most experienced landlords rent units just below market value. This enables them to find good tenants and makes it hard for those good tenants to leave. Avoiding turn-over is the gospel of successful landlords!
The second reason for low rents is simply the landlord’s lack of awareness. You do not know what other similar units are renting for if you are not out looking. So get out there. Read the paper, search on craigslist.com, and see what other similar apartments are renting for.
In the short term, low rents result in a significant loss of potential income (obviously). For example, $100 per month under market in three separate units is $3,600 per year of lost pre-tax income. What if you invested that money?
There may be an opportunity to raise your rents even higher! We see all kinds of creative ways that some landlords get higher-than-market rents. How about furnishing your apartment? If your property is in a nice part of town, tenants may pay up to $200 more per month for a furnished apartment. How about finding a business that needs corporate rentals. You are the investor! Find the angle! There is always a way to do a little better than the average landlord and see a significant return over time.
Finally, in today’s buyer’s market, higher rents equal higher prices. Think of it this way – every rental increase is instant equity in your property!
Sullivan Multi Monthly Minutes are sent to you from Bill Sullivan, Brit Vitalius, and John Graham, the ‘Multis in Greater Portland, That’s All We Do’ people. Bill and Brit are principals of Sullivan Multi Family Real Estate, LLC, One India Street in Portland. FMI Call 207-771-5556 or go to http://www.sullivanmulti.com/
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