I recently transferred my real estate license to Circa Properties, a move that I had been contemplating for a long time. Actually, I have been thinking about it since Christopher Thiemet opened his office last January. I was hesitant to transfer because I love my RE/MAX office and my brokers, but so much about the Circa mission coincided with my own philosophy and business model. The Circa office is in the City, which is where I do a majority of my business. It’s more convenient for me and my clients to have the facilities so close. But it’s inspiring to me that Circa is truly committed to investing in St. Louis by locating within the city limits.
I am excited to be working as part of a team again. The agents in the office are diverse but still city-focused, and the office atmosphere is one of cooperation and collaboration. Circa’s modo is The Art of Partnership and that spirit resonates in the agent/client relationship as well as agent-to-agent interaction. Originally I placed my license with RE/MAX because their business model allowed me to run my own business the way I wanted. There was excellent infrastructure already set up and the brand recognition of RE/MAX is unparalleled. However, when working as an independent agent there were often times I felt like my clients weren’t getting the best service because of my inability to be in two places at once. At Circa, there will be a team of qualified agents to back me up. The infrastructure that I was so excited about at RE/MAX is even better at Circa. Christopher has set up all the right systems but has also implemented additional services and exceptional internet & print marketing opportunities which will allow me to better serve my clients.
A bit of history: Christopher and I actually began our real estate careers at the same time. We met as rookie agents in another St. Louis brokerage about four years ago. We acted as a team for a little over a year. Since then, we have been colleagues and competitors, both focusing on the Central and south city markets. Recently we worked a sale together where I represented the seller and he represented the buyer. Ironically, the seller of the home was the mother of one of the clients Christopher and I had helped two years before. The buyer in that same transaction was another client we had worked with previously as partners. Coincidence? Maybe… but it was simply too eerie to ignore.
I am really happy to be working with team at Circa!
This is a six unit building on Laclede with the Park East Tower to the east and Forest Park to the west. Each unit has approximately 1100 sq. feet, two bedroom and a finished porch off the kitchen.
Gross potential income at $900 a month per unit=$64,800.00 less vacancy at 5% ($3240) less yearly debt service ($38,328 with purchase price of $600,000, 20% down, 30 year fixed at 7%)
Gross Operating Income of $23,232.00
Net Operating Income of $13,232
Capitalization Rate of 2%
(Taxes are just under $4000, Insurance was estimated at $3000 Utilities and Misc estimated at $3000). To learn more about NOI click here or Cap Rate here.
This is a superior location close to the park, BJC, Metrolink, universities and all the amenities of the CWE. Seemingly you would have your choice of tenants. But a cap rate of 2% is terrible. Things to help ensure a better cap rate would be a lower sale price, a higher down payment or a better interest rate.
Until very recently if you lived in any home for 2 of the last 5 years you could avoid capital gains taxes. This was a nice loophole for properties that once generated cash flow. It meant that you could buy a rental property allow it to generate income and then live in it for 24 month to avoid paying capital gains. For a single person the exclusion pertained to any gain up to $250,000. A couple could exclude up to $500,000 from capital gains.
However attached to a new bill for mortgage relief is a provision that prohibits this exclusion. For example, say a couple buys a second home in 2006 to use as their vacation home. Three years later, in 2009, they sell their primary residence and move into the vacation home, making it their main home. They sell that home in 2011, realizing a gain of $200,000. Under the proposal, 20% of the gain, or $40,000 (one year of nonqualified use after 2007 divided by five years of ownership), isn’t eligible for the capital gains exclusion. The other $160,000 can be excluded from income because the two-year usage and ownership tests were met.
Read the full article here. And make sure to consult your accountant in the future when selling a second home or rental property.
Business has been non-stop. Typically, December has been a good month for me. However December 2007 has been the most productive by far. Highlights include the sale at 3917 Shaw. It closed on December 3rd for the full asking price. 4514 Miami was another that sold really fast again for full price. Just goes to show that when sellers price appropriately for the market it doesn’t take that long to find the right buyers. Marketing is important, but setting the correct price is crucial.
My buyer clients are really happy this month too. Particularly the new owners of 2833 Russell. They have some work to do. But this old house is solid and stately. The pocket doors are working, the stairs are grand and the woodwork is pristine. Many of the rooms will need to be taken down to the studs, but in the end this is going to be a spectacular house. The owners are planning to retire in it so I feel good knowing that they got it and will really put some much needed care with thought and attention to detail.
The semester is over. I turned in my literature review last Tuesday and have been reading for pleasure ever since. Sustainability: Planning to Avoid Collapse was the title of my final paper. Sounds apocalyptic but I decided on the title after reading The Limits to Growth a paper written by MIT researchers in the late 60′s. Check it out here. My paper surveyed sustainability concepts in the writings of Ebenezer Howard, Patrick Geddes, Ian McHarg, Peter Calthorpe, Stephen Wheeler and Timothy Beatley & Kristy Manning
“Where you find a people who believe that man and nature are indivisible, and that survival and health are contingent upon an understanding of nature and her processes, these societies will be very different from ours, as will be their towns, cities and landscapes” That was one of my favorite quotes from Design With Nature by Ian McHarg. This book is probably my favorite new discovery of the semester.
I write all this simply to let you know that this blog is not dead, but this blogger has been just a little overwhelmed–in a good way.
Anyway, now that I am coming up for air, I promise to a better job reporting on the STL housing market and all my other city discoveries and distractions.
Dawn Griffin Real Estate Blog
I’m an experienced Saint Louis Realtor specializing in St. Louis City as well as neighborhoods like Webster Groves, Maplewood, Clayton, University City and Ladue. With an undergraduate degree in Education and Master's in Urban Planning and Real Estate Development — I have the heart of teacher.
I have been immersed in Residential Real Estate, helping home buyers and sellers understand the market, manage the ambiguities and negotiate the best terms for themselves. I am consistently voted a 5-Star Agent by clients and featured as one of St. Louis' Best Agents in Saint Louis Magazine.
