It’s all about timing. How often have you heard the expression? In real estate, it couldn’t be truer. My new clients, Pat and Lauren Henderson, are masters at nailing the timing of their transactions.
Back in 2010, the couple started their investment portfolio in the soon-to-be-hip South Boston neighborhood. This was right before the area underwent a massive gentrification. A couple years before Southie’s property values joined the highest in the city, Pat and Lauren had two condo purchases under their belts. In terms of timing, it couldn’t have been a better play – the rise of Southie, compounded by the end of the recession.
Fast forward to Thanksgiving of 2016 and and they found themselves itching to make another move. After hearing nothing but positive things from friends and coworkers about Neponset, they decided to take a hop, skip, and a jump over to Dorchester. After weighing the pros and cons of purchasing a multi-family, the buyers decided to stick with what they knew: the condo market.
“We considered the benefits of buying a two-family – the cash flow, appreciation, and condo conversion story were all very appealing. Ultimately, we opted for a condo. We know condos, and have had success with them in the past, so it was an easy decision,” said Pat.
Why Dorchester? In comparison to other parts of the city, the Dot has a lower barrier to entry. With current inventory starting as low as $217 a square foot (compared to $500 in Southie), buyers can stretch their dollar and get a bit more for their money. All eyes are on Dorchester and there are high hopes that it will follow in Southie’s footsteps. Only time will tell, but there are strong indications that Dorchester is prime for a boom.
“The neighborhood has a great vibe,” comments Lauren. “It feels similar to the way Southie felt back in 2013. With countless development projects underway, there’s great energy, and I’m definitely optimistic about the direction.”
After meeting up to discuss the strategy, we moved full steam ahead to find a property. After touring just three places, Pat and Lauren were ready to pull the trigger.
Perched on the top floor of a recent three family condo conversion, the unit they fell in love with offers three bedrooms, two full baths, two-car parking and a back deck. An additional perk is deeded roof rights with water views.
“I knew it was the one! We both just had a great feeling about it and wanted to get the deal done,” said Lauren.
Since renovated properties are selling like hot cakes, the Hendersons were prepared to act fast. Timing, of course, played a critical role in locking down the unit. In order to beat everyone to the punch, we submitted a polished offer that afternoon. Knowing that we were competing against a few other buyers, we played the timing card right. It was the day before Christmas Eve, and therefore we knew we had a good shot at getting an accepted offer before things escalated to a multi-bid situation.
Within hours, we heard good news from the listing agent. Over the next month, the Hendersons worked closely with their lender to secure financing. For young buyers, and especially young investors, this can be the trickiest part of the transaction. Fortunately, my network of lenders are extremely experienced in navigating challenging situations that can arise with millennial buyers from student loan debt, to commission-based income and self-employment.
Pat and Lauren received the keys to their new pad a few weeks ago and have already started with some value-add projects! They put in a larger closet in the master bedroom and have reached out to a roof deck specialist to get the ball rolling.
A big congratulations to the Hendersons on their new home…I’m already looking forward to celebratory drinks on the roof deck. Cheers!
“My wife and I reached out to Dana after hearing her on the Bigger Pockets Podcast. We had one rental and were thinking about moving out of our current condo and renting that out. She replied right away and set up a meeting for us to talk over our options. From that first interaction on, we knew Dana was the right real estate agent for us.
This was our third purchase and we’ve had great agents in the past, but Dana brings it to another level. She is super responsive, knowledgeable and thorough. Dana brought so much insight to the process- from pointing out key details during house tours that we wouldn’t have noticed, to figuring out the right offer to make, she guided us every step of the way with so much attention that we felt like we were her only clients.
We’ve now bought three condos, and used a different agent for each, but after working with Dana we won’t even think about using someone else on the next one!” – Pat Henderson