Financial and business news and articles
Posts tagged Featured
Boston Job Market – Don Pinkerton’s Story & Success!
Mar 8th
Aquarium volunteer lands at Revere High
Photo by Angela Rowlings
Don Pinkerton started his new job as a teacher at Revere High School about a year after he was laid off from a financial services firm.
The 51-year-old Swampscott resident used his time and some well-known local resources to reinvent himself. And today he said he feels fortunate to have weathered a difficult situation.
“I know a lot of people are really struggling, and I have friends who are looking for work, so I know how hard it can be,” he said.
Pinkerton said it was solid support from his family and some money that he had saved up for emergencies that gave him the time to execute a career transition.
There was also a valuable stop at the New England Aquarium.
“It was a great experience,” he said of the days he spent assisting visitors at the bustling Boston institution. “I realized I really like being in a science-oriented environment, and I really enjoyed helping to educate people.”
Pinkerton wasn’t paid for his time, but it was rewarding nonetheless. At the aquarium he realized he could thrive as a science teacher.
Aquarium officials say the past year has brought them a 15 percent to 20 percent increase in new volunteers. In 2009, about 100 more volunteers worked 11,000 more hours than in 2008.
“We have experienced a lot more interest due to the economy,” said Mona Chang, the aquarium’s manager for volunteer programs. “People have more time because many of them have lost their jobs.”
Pinkerton majored in a science in college, then spent 25 years in finance. The December 2008 separation agreement he signed with his former employer prohibits him from speaking about the firm.
“I was happy most days and I was paid well,” he said. “The work was challenging, but it was never really me.”
The layoff was a wake-up call of sorts.
In addition to volunteering at the aquarium, Pinkerton helped out at the Museum of Science, took graduate-level science courses at Salem State College, worked as a substitute teacher and received a state teaching certification.
This past December he landed his dream job, teaching biology at Revere High School.
Article URL: http://www.bostonherald.com/business/general/view.bg?articleid=1231184
Pinay designer wins UK fashion award
Feb 26th
LONDON – From a tropical country where few people wear hats, a Filipino fashion designer and milliner, actress and musician has won the British Council’s Young Fashion Entrepreneur (YFE) Award for 2010.
Mich Dulce bested 10 competitors from Bangladesh, India, Libya, Lithuania, Russia, Sri Lanka, Syria and Turkey to become the first Filipino to be honored with the prize.
Judges and the public raved not only about her designs, but about her use of indigenous materials, including sinamay and abaca, the latter a material the British associate with rope, said Leslie Stokes, chairman of the British Council Philippines, which sponsored the local search for the YFE.
The YFE is part of the International Young Creative Entrepreneur (IYCE) awards scheme that includes other sectors from the creative industries like publishing, design, visual arts, and screen (film and TV), communications and interactive.
Dulce’s fashion business, which started out on eccentric frocks and dresses, has now expanded to hats, headpieces, corsetry and bridal wear. Her unique style has been featured on “Young Asian Fashion Designers” published by Daab Publishing in Germany.
In 2007 she was handpicked by no less than Terry Jones, editor-in-chief of i-D magazine as one of 10 winners in Showstudio.com’s PSP AMAZE ME contest in London.
Along with her title, Mich gets a £5,000 grant for a collaborative project with the British Council.
Mich Dulce dabbles in many fields apart from fashion. On television, she has appeared in the sitcom John en Shirley starring Dolphy and Maricel Soriano (2006); the short-lived teleserye, The Wedding (2009), and was a housemate in the celebrity edition of Pinoy Big Brother (2006).
On the music front, she was the vocalist of post-riot grrl band Death By Tampon and currently vocalist of indie pop’s burgeoning powerhouse Us-2, Evil-0.
Educated at Central Saint Martins and London School of Fashion in the UK as well as the Fashion Institute of Technology in New York, she interned with designer Cecile Zamora and with fashion forward designers such as Marjan Pejoski, Jessica Ogden and Susan Cianciolo
Boston Financial Profiles – Boston Business Alliance
Feb 24th
::BFG:: Profiles: The Boston Business Alliance
Vision
The Alliance is the premier resource for small to mid-sized businesses. Our commitment is to remain true to our mission by providing and promoting access to timely and relevant information, free of commercial implications – bringing together business owners and experts. The Alliance will simplify the process and align the best resources, without the initial expenses associated with the search for guiding and valuable input. Alliance members benefit from new contacts and relationships by providing consistently significant information and educational programs that promote greater understanding, strategic awareness, and initiative-based planning resulting in more profitable operations.
BostonBusinessAlliance.com
Mission
To be the single most informative, influential, preferred and valued resource for small to mid-sized businesses owners.
To provide a no-/low-cost resource where business owners and professionals go to ask questions, get answers, and discuss emerging trends impacting their businesses.
History
The Boston Business Alliance (Alliance) had it’s genesis at a coffee shop in Swampscott in mid-2009 when three business people met to discuss how to help each other. The idea immediately led to “how can we help every business person who wants or needs help” without any cost or fee. It had to be more than the traditional networking groups because there are already many good ones in existence. And, the primary focus had to be small and mid-size businesses because of the volume and obvious need and demand.
Ray Arpin, Steve Stanganellis, and Len Bloomberg decided that if the concept of ‘build it; they will come;’ was more than a movie line – a good, interesting, and timely business presentation and event was offered, small and mid-size business owners would come to hear more. By August of 2009, the first event was held, and they came; and they continue to come, in bigger numbers.
The initial vision was to provide no/low cost, timely, and valuable information to attract business owners. Also, they realized that there are many business people out there (even the recently unemployed) who are experienced subject matter experts, with specialization and skills that the business owners need. Where else can business people, specialists, and consultants can meet business owners? Not many opportunities exist, so the vision grew to two primary audiences:
- Small and mid-size business owners
- Individuals with specialization in specific business areas in demand by those business owners.
The Alliance has grown without any advertising, and very little marketing — mostly by word of mouth. The attendance at the montly breakfast meetings has been consistently increasing, month to month. The number of members continues to grow, along with the interest from almost everyone who hears about the Boston Business Alliance — beyond Boston, and beyond Massachusetts. People in other cities and even other countries have expressed an interest in bringing a similar concept to their cities. The first objective of the Boston Business Alliance is to prove itself as a valuable source of information for business owners and members before taking the concept into other cities.
After all, the initial concept was how to help others!
Contact:
Boston Business Alliance
Baldwin Park I
12 Alfred Street, Suite 300
Woburn, MA 01801
617-621-1555
Baldwin Park I
12 Alfred Street, Suite 300
Woburn, MA 01801
617-621-1555
Boston Business Alliance Operating Executives
Ray Arpin
Executive Director
Phone: 617-435-1159
Email: Ray.Arpin@BostonBusinessAlliance.com
Phone: 617-435-1159
Email: Ray.Arpin@BostonBusinessAlliance.com
Company: Arpin Consulting
Mariola Andoni
Chair – Membership & Ethics Committee
Phone: 781-932-7355
Phone: 781-932-7355
Email: mandoni@sunbeltne.com
Walt Wise
Chair – Events & Public Relations Committee
Phone: 617-532-0918
Phone: 617-532-0918
Email: walter.wise@bostonbusinessalliance.com
Company: The BPI Strategy Group
Bob Carroll
Chair – Technology & Internet Presence Committee
Phone: 617-314-9813
Phone: 617-314-9813
Boston Financial – Budgeting is BACK!
Feb 21st
Budgeting is back in vogue, and these websites make it easier
By Kimberly Blanton, Globe Correspondent
Buyer’s remorse hit Scott Schulthess minutes after he flipped open his laptop at a Cambridge coffee shop to review his spending habits last year on PearBudget.com.
“This makes me feel bad,’’ said the 26-year-old computer programmer, focusing in on his June purchase of an iPhone, displayed in his online account on the budget-tracking website. On impulse, he bought the new phone rather than repairing his old one. “Basically, a waste of $400.’’
In tough economic times, more and more people are flocking to budget-tracking websites – Pear Budget, Mint.com, money.Strands.com, Wesabe.com, and JustThrive.com – that give users a sense of where they’re actually spending their money each month. Some budget-tracking sites are even rolling out new features such as iPhone applications, Twitter alerts, and Spanish-language options as they compete more fiercely for customers. Personal finance websites, ranging from budget trackers to financial blogs, are becoming increasingly popular and now attract one in four people who use the Internet, according to Comscore.com, which tracks Web traffic.
“There’s been a profusion of these things, in part because of what’s going on in the broader economy,’’ said Paul Kedrosky, who writes an economics blog in San Diego called Infectious Greed. “People feel they have to be more frugal, so budgeting’s in vogue.’’
These budget-tracking websites are becoming so popular that banks are now purchasing the software for their online customers so they can preserve crucial banking relationships. Budgeting software “is the future of online banking,’’ said Peter Glyman, a founder of Geezio, which sells the software to banks and credit unions.
The theory behind budget-tracking websites is that people often know their money disappears fast but they don’t know precisely where it goes. Seeing, in detail, where spending occurs is the first step to curbing it. To help users budget, these sites sort each expense into a fixed or customized category – rent, utilities, clothing, Starbucks, gym membership – and then compare actual spending to that category’s budget amount, specified by the user in advance. The sites’ colorful charts display whether users are under- or over-budget every month in each category.
A common realization by users of budgeting websites is how much they spend every month eating out, said Aaron Patzer, Mint’s founder and chief executive. Indeed, in a recent survey of Mint users, 90 percent said they changed their spending habits after using the budgeting software, and 40 percent said they cut back on dining out.
“Having the feedback and the awareness that you went to Starbucks 30 times last month changes peoples’ habits,’’ Patzer said.
Schulthess, the Cambridge resident, said he and his girlfriend started taking cooking classes so they could cut their food budget after Pear Budget showed he was spending $500 a month on dining out. Despite lapses like the iPhone splurge, he said Pear Budget helps him stick to his goal of saving 10 percent of his income. Schulthess said he’s saved about $200 per month on food alone.
“If you get laid off or wanted to change your job, you need financial security to be comfortable,’’ he said.
Budgeting websites are free to users, but some earn revenues each time they successfully direct users to financial products, such as credit cards, offered by advertisers, which some say implicitly encourages the use of credit to someone who may instead need to curb their spending.
The sites also differ in how they collect data. Some sites are automated budget trackers, which require users to provide their bank, credit card, IRA, and other account numbers and their online passwords. The budgeting site then uses this information as permission to receive a download of their spending and income data from the financial institution.
Mint, which extracts the data automatically, has emerged as the giant among the sites. With more than 1 million unique visitors per month, according to Compete.com, a website that tracks Internet traffic, Mint became so successful that it was purchased by financial software maker Intuit in September for $170 million. Intuit plans to replace the online version of its famous Quicken software with Mint’s more modern technology, the companies said. Wesabe, which also extracts data automatically, is the second-most-popular site for individuals, with more than 35,000 unique visitors per month.
But many potential customers, particularly older users, are uncomfortable with turning over their account information to a third party. To reach a broader audience, some budget sites are adapting. Money Strands, which was rolled out less than a year ago, offers manual and automatic data entry. Mint.com said that it also plans to offer manual data entry in coming months.
“Many people from all ages say, ‘I would never share that information,’ ’’ said Diane Ty, an AARP senior vice president and expert on personal finance.
MINT.COM
Pros: Mint.com uses state-of-the-art software to extract a user’s financial information from bank accounts, credit cards, and other sources. Unlike some sites, it also tracks a wide range of financial activities, from IRAs to college funds. Other features include a weekly e-mail or text message listing user’s five largest expenditures. Slick, colorful graphics and an iPhone application are also appealing.
Cons: Requires users to turn over account passwords, though the company points out that it does not store users’ personal information – only data – or their passwords. Users report issues arise from downloading data from their bank or other accounts such as an inability to connect to certain financial institutions and glitches in categorizing some expenditures.
Final word: Mint.com is the granddaddy of budgeting websites. The site said that it is working to continually support more institutions.
MONEY.STRANDS.COM
Pros: Rolled out less than a year ago and in use at a major Spanish bank, the budget-tracking website has features older sites lack, including a Spanish-language capability, iPhone app, advanced data analysis, and support for 44 currencies. Key distinction from other sites: automated data extraction, like Mint, but also a manual capability for those leery of turning over bank account information to third parties.
Cons: The newest of the budget-tracking sites is still working out the kinks and responding to user comments and complaints. Does not integrate investment accounts.
Final word: The jury’s out. But Atakan Cetinsoy, vice president of personal finance products, said the company is serious about creating a website that strikes the crucial balance between simplicity and usefulness. An “obvious next step’’ is to integrate users’ investment accounts, he said.
PEARBUDGET.COM
Pros: Popular because it’s really easy to use and simplifies for people who may be overwhelmed by budgeting. Founder responds personally to users’ questions.
Cons: No automated data download – only manual expense and income entry is allowed by the software.
Final word: Created by Charlie and Sarah Park in 2004 and still run out of their Williamsburg, Va., home. Park said he remains true to his original mission of helping people, providing personal service, and creating a homey feel.
WESABE.COM
Pros: The best site for people who seek the emotional encouragement of an online support group to discuss financial issues or solicit solutions to problems such as debt overload. Offers suggestions for low-cost retailers in the user’s neighborhood. Has iPhone and other smartphone apps. User complaints and questions are visible to all – not just members who log in.
Cons: Advice from third parties can be unreliable. Users complain that responses to requests for Web support have slowed, and the company agrees it is running behind. Automated data extraction only.
Final word: The four-year-old company is one of the most popular sites – 37,500 unique visits per month – and suffers from some growing pains. Customer support has slowed but remains a priority: Founder and chief executive Marc Hedlund responds personally on the site to users with complaints and questions.
JUSTTHRIVE.COM
Pros: Cool feature allows users to designate a specific savings goal and track progress toward that goal. The site also provides education or guidance about how to reach goal.
Cons: Automated data extraction only. Budget tracker also can be accessed via MoneyRight.com in the wake of acquisition by Lending Tree.
Final word: For those who find it hard to take directions via e-mail or Twitter, JustThrive is a great bet. It provides good customer service over the phone, which is important for serious budget trackers who aren’t Web whizzes.
The New York Times Company
Boston Financial – Budgeting is BACK!
Feb 21st
Budgeting is back in vogue, and these websites make it easier
By Kimberly Blanton, Globe Correspondent
Buyer’s remorse hit Scott Schulthess minutes after he flipped open his laptop at a Cambridge coffee shop to review his spending habits last year on PearBudget.com.
“This makes me feel bad,’’ said the 26-year-old computer programmer, focusing in on his June purchase of an iPhone, displayed in his online account on the budget-tracking website. On impulse, he bought the new phone rather than repairing his old one. “Basically, a waste of $400.’’
In tough economic times, more and more people are flocking to budget-tracking websites – Pear Budget, Mint.com, money.Strands.com, Wesabe.com, and JustThrive.com – that give users a sense of where they’re actually spending their money each month. Some budget-tracking sites are even rolling out new features such as iPhone applications, Twitter alerts, and Spanish-language options as they compete more fiercely for customers. Personal finance websites, ranging from budget trackers to financial blogs, are becoming increasingly popular and now attract one in four people who use the Internet, according to Comscore.com, which tracks Web traffic.
“There’s been a profusion of these things, in part because of what’s going on in the broader economy,’’ said Paul Kedrosky, who writes an economics blog in San Diego called Infectious Greed. “People feel they have to be more frugal, so budgeting’s in vogue.’’
These budget-tracking websites are becoming so popular that banks are now purchasing the software for their online customers so they can preserve crucial banking relationships. Budgeting software “is the future of online banking,’’ said Peter Glyman, a founder of Geezio, which sells the software to banks and credit unions.
The theory behind budget-tracking websites is that people often know their money disappears fast but they don’t know precisely where it goes. Seeing, in detail, where spending occurs is the first step to curbing it. To help users budget, these sites sort each expense into a fixed or customized category – rent, utilities, clothing, Starbucks, gym membership – and then compare actual spending to that category’s budget amount, specified by the user in advance. The sites’ colorful charts display whether users are under- or over-budget every month in each category.
A common realization by users of budgeting websites is how much they spend every month eating out, said Aaron Patzer, Mint’s founder and chief executive. Indeed, in a recent survey of Mint users, 90 percent said they changed their spending habits after using the budgeting software, and 40 percent said they cut back on dining out.
“Having the feedback and the awareness that you went to Starbucks 30 times last month changes peoples’ habits,’’ Patzer said.
Schulthess, the Cambridge resident, said he and his girlfriend started taking cooking classes so they could cut their food budget after Pear Budget showed he was spending $500 a month on dining out. Despite lapses like the iPhone splurge, he said Pear Budget helps him stick to his goal of saving 10 percent of his income. Schulthess said he’s saved about $200 per month on food alone.
“If you get laid off or wanted to change your job, you need financial security to be comfortable,’’ he said.
Budgeting websites are free to users, but some earn revenues each time they successfully direct users to financial products, such as credit cards, offered by advertisers, which some say implicitly encourages the use of credit to someone who may instead need to curb their spending.
The sites also differ in how they collect data. Some sites are automated budget trackers, which require users to provide their bank, credit card, IRA, and other account numbers and their online passwords. The budgeting site then uses this information as permission to receive a download of their spending and income data from the financial institution.
Mint, which extracts the data automatically, has emerged as the giant among the sites. With more than 1 million unique visitors per month, according to Compete.com, a website that tracks Internet traffic, Mint became so successful that it was purchased by financial software maker Intuit in September for $170 million. Intuit plans to replace the online version of its famous Quicken software with Mint’s more modern technology, the companies said. Wesabe, which also extracts data automatically, is the second-most-popular site for individuals, with more than 35,000 unique visitors per month.
But many potential customers, particularly older users, are uncomfortable with turning over their account information to a third party. To reach a broader audience, some budget sites are adapting. Money Strands, which was rolled out less than a year ago, offers manual and automatic data entry. Mint.com said that it also plans to offer manual data entry in coming months.
“Many people from all ages say, ‘I would never share that information,’ ’’ said Diane Ty, an AARP senior vice president and expert on personal finance.
MINT.COM
Pros: Mint.com uses state-of-the-art software to extract a user’s financial information from bank accounts, credit cards, and other sources. Unlike some sites, it also tracks a wide range of financial activities, from IRAs to college funds. Other features include a weekly e-mail or text message listing user’s five largest expenditures. Slick, colorful graphics and an iPhone application are also appealing.
Cons: Requires users to turn over account passwords, though the company points out that it does not store users’ personal information – only data – or their passwords. Users report issues arise from downloading data from their bank or other accounts such as an inability to connect to certain financial institutions and glitches in categorizing some expenditures.
Final word: Mint.com is the granddaddy of budgeting websites. The site said that it is working to continually support more institutions.
MONEY.STRANDS.COM
Pros: Rolled out less than a year ago and in use at a major Spanish bank, the budget-tracking website has features older sites lack, including a Spanish-language capability, iPhone app, advanced data analysis, and support for 44 currencies. Key distinction from other sites: automated data extraction, like Mint, but also a manual capability for those leery of turning over bank account information to third parties.
Cons: The newest of the budget-tracking sites is still working out the kinks and responding to user comments and complaints. Does not integrate investment accounts.
Final word: The jury’s out. But Atakan Cetinsoy, vice president of personal finance products, said the company is serious about creating a website that strikes the crucial balance between simplicity and usefulness. An “obvious next step’’ is to integrate users’ investment accounts, he said.
PEARBUDGET.COM
Pros: Popular because it’s really easy to use and simplifies for people who may be overwhelmed by budgeting. Founder responds personally to users’ questions.
Cons: No automated data download – only manual expense and income entry is allowed by the software.
Final word: Created by Charlie and Sarah Park in 2004 and still run out of their Williamsburg, Va., home. Park said he remains true to his original mission of helping people, providing personal service, and creating a homey feel.
WESABE.COM
Pros: The best site for people who seek the emotional encouragement of an online support group to discuss financial issues or solicit solutions to problems such as debt overload. Offers suggestions for low-cost retailers in the user’s neighborhood. Has iPhone and other smartphone apps. User complaints and questions are visible to all – not just members who log in.
Cons: Advice from third parties can be unreliable. Users complain that responses to requests for Web support have slowed, and the company agrees it is running behind. Automated data extraction only.
Final word: The four-year-old company is one of the most popular sites – 37,500 unique visits per month – and suffers from some growing pains. Customer support has slowed but remains a priority: Founder and chief executive Marc Hedlund responds personally on the site to users with complaints and questions.
JUSTTHRIVE.COM
Pros: Cool feature allows users to designate a specific savings goal and track progress toward that goal. The site also provides education or guidance about how to reach goal.
Cons: Automated data extraction only. Budget tracker also can be accessed via MoneyRight.com in the wake of acquisition by Lending Tree.
Final word: For those who find it hard to take directions via e-mail or Twitter, JustThrive is a great bet. It provides good customer service over the phone, which is important for serious budget trackers who aren’t Web whizzes.
The New York Times Company
Boston Finance – Sports – Mo Vaughn
Feb 14th
Mo Vaughn’s home runs
By Amanda Fung
Published: February 14, 2010 – 5:59 am
Mo Vaughn (right) and Eugene Schneur revitalized a drug-infested five-building complex in Brooklyn, and made it a decent place to live. Photo by Buck Ennis.
Six months after Mo Vaughn set up Omni New York in 2004, the fledgling real estate firm struck, snapping up a 286-unit affordable housing complex in the Bronx. By the end of its second year, Omni New York had tripled its holdings to a total of 869 units.
As far as most people were concerned, however, Mr. Vaughn was still a Mets first baseman, even though his baseball career ended in 2003.
“I wanted people to take us seriously and know that we were the real deal,” says Mr. Vaughn, who is seated at a Brooklyn eatery with his partner, Eugene Schneur, explaining his transition from baseball hero to real estate mogul—albeit one whose new uniform includes not just sharply tailored suits but large diamond-encrusted hoop earrings. “I wanted respect.”
These days he’s got it—not as the American League’s former MVP but as the managing director of one of the city’s best-regarded and most active buyers and managers of affordable housing. Along the way, Mr. Vaughn and company have earned a place as one of the city’s top choices for turning around distressed residential properties.
Today Omni ranks as a midsize firm capable of competing with the bigger players, swallowing up sprawling properties such as the decrepit 14-building, 416-unit complex in the South Bronx that Omni bought the mortgage on at a foreclosure auction—with the city’s blessing—in December. “Given their track record, they are ideally suited to deal with troubled projects,” says NYC Housing Preservation and Development Commissioner Rafael Cestero.
Since 2004, Omni has spent over $500 million buying and rehabilitating 21 affordable-housing buildings with a total of nearly 3,500 units in the Bronx, Brooklyn, Long Island and as far away as Wyoming. The majority of the buildings they own and manage are Section 8 buildings, whose low-income tenants rely on federal vouchers to help pay their rent. Omni finances its deals using tax-exempt bonds and the proceeds from the sale of low-income-housing tax credits.
Making money and doing good
That is exactly what it did when it acquired the Noble Drew Ali Plaza in the Brownsville section of Brooklyn—the 2007 deal that put Omni on the map. At the time, the five-building complex with 358 units was a haven for drug dealers and addicts, its hallways urine-soaked and graffiti-lined and its apartments crumbling.
Omni purchased the property out of bankruptcy for $23 million with financing from various city agencies, including HPD, as well as federal grants. The developer then poured $25 million into refurbishing everything from new elevators and energy-saving appliances to 326 security cameras. After two years of work, Messrs. Schneur and Vaughn capped off the revitalization by giving the complex a new handle: “The Plaza.”
“Noble Drew Ali, without a doubt, was one of the most complicated projects [we've seen],” says Mr. Cestero. “They restored it to a quality place for people to live by taking a very aggressive approach to renovating buildings.”
Today Mr. Vaughn, who played for the Boston Red Sox in the 1990s, spends most of his time on the operations side of the business, working with Omni’s construction, management and maintenance teams, while Mr. Schneur focuses on the dealmaking.
“I’m the eyes,” said Mr. Vaughn, who got his start in real estate by investing in Manhattan nightclubs with help from Mr. Schneur, then his attorney. “I make sure that everything that needs to get done gets done.”
In fact, Omni was his idea. In Ohio, where Mr. Vaughn spent his off-seasons, he met a developer successfully buying affordable housing using tax credits and decided to try the concept out in New York.
“They are smart people,” says Lisa Gomez, executive vice president of affordable housing developer L+M Development Partners. “They get how to do affordable housing and look to the double bottom line [of making money and doing good].”
Size doesn’t matter
But competition for distressed properties is increasing as the drought in luxury housing deals drags on. Meanwhile, the price of tax credits—a key currency in such deals—has plummeted by nearly a third, forcing Omni to scramble for more state and city subsidies to fill the gap.
“We used to be able to get deals done without subsidies,” says Mr. Schneur.
Omni’s rapid growth also presents challenges. By year’s end, it expects to have close to 5,000 units. For a firm whose two founders visited their early holdings as many as four times a week, the sheer scale of the portfolio now makes maintaining that degree of oversight difficult—even with the aid of a staff at its midtown headquarters that now numbers about 120.
“We can’t cut corners and be complacent,” says Mr. Vaughn. “If we continue to be humble and work hard, we will be fine.”
In fact, Mr. Vaughn and his partner are stepping up their act. Prior to the market collapse, Omni had been priced out of Manhattan. Mr. Schneur recalls one deal where Omni bid $20 million for a Manhattan building that went for $30 million.
Last month, Omni had better luck, buying its first Manhattan properties—two Section 8 buildings in Harlem with 53 units—for $5.5 million. Now, as a number of big, financially troubled properties, including Lawrence Gluck’s 1,230-unit Riverton in Harlem, make their way through foreclosure, they are weighing a bid. Even Manhattan’s vast middle-income oasis Stuyvesant Town-Peter Cooper Village looms as a potential target.
“Size doesn’t matter,” says Mr. Vaughn. “They fit within our philosophy of preserving decent affordable housing.”
Boston Finance – Online Trends – Local Search
Feb 6th
It’s time for the release of TMP Directional Marketing & comScore’s Annual Local Search Study results.
Before we dive into the data, full disclosure: I preside over an interactive division at TMP.
ComScore has administered the study each of the last three years with the purpose of identifying media trends and consumer behavior relative to local search. Trending data provides good insights on how this has changed over those three years.
The study is comprised of two components: an online questionnaire completed by 4,000 respondents and a behavioral component courtesy of comScore’s more than 2 million users. The behavioral component is especially interesting because it provides direct observation of actual local search behaviors.
And Now, the Results…
Year over year, more digital channels become available to more consumers. So it’s no surprise that they’re increasingly being relied on for local business information. Search engines remain the “primary source” of information, while print media usage continues to decline.
Also on the decline is the number of local business searchers who own print directories. In 2009, this represented 84 percent of searchers, down from 89 percent in 2008. Print yellow pages (PYP) usage may be down, but Internet yellow pages (IYP) usage is up, possibly from loyal PYP users migrating online.
The rise of online media as a local business resource is expected. Also expected is the survival of offline media. There is still significant usage.
This illustrates the need for a diversified approach toward media investment in order to nurture maximum lead flow. This is especially true if you’re targeting mature adults (45 years and older). Offline media is still their primary local business resource, 40 percent prefer print directories while only 24 percent prefer search engines.
To understand usage declines, and also identify growth opportunities, it’s helpful to look at the frequency with which media is used.
For example, in the previous graph social media and mobile as “primary sources” of local business information represent 1 percent and 3 percent respectively — not something to get really excited about. However, consider that consumers use them every day or a couple times a week and you begin to take them more seriously (see below chart). Frequency indicates growing reference activity, and in this case it’s a reason to keep emerging advertising opportunities in social and mobile channels on your radar.
Google Maps: Number 1 with a Bullet
Google made significant gains in its share of local searches. Google Maps usage grew from 15 percent market share in the fourth quarter of 2008 to the number one local search site in the second quarter of 2009 with 24 percent market share, according to the comScore IYP/Local Combo Report.
Interestingly, the ascension of Google Maps usage almost directly corresponds with the transition from what was the 3-Pack last spring to what’s now the 10-Pack. Also exacerbating this trend is Google’s use of implicit searches early in 2009. This illustrates the need for national and local businesses to claim their local business listings, and also to ensure that they’re accurate.
Importance of Ratings and Reviews
From 2008 to 2009, usage of consumer ratings and reviews increased to 25 percent (+3) among IYP searchers and to 27 percent (+5) among general searchers. Additionally, people who use social networking sites for local business information are more likely to use consumer reviews (53 percent).
It’s interesting that, while overall usage of ratings and reviews is only 24 percent, its importance during the business selection process is 57 percent! Because users of ratings and reviews heavily rely on them to select a company to do business with, they should be a serious component of any marketer’s online strategy.
2010 Will be the Year of Mobile
Just kidding, it’s still a few years out. The data reveals that mobile search continues to grow as more consumers have access to smartphone devices. Sixty percent of smartphone users say they have conducted a local search on their phone, versus 19 percent of standard cell phone users that have data connection.
According to comScore, only 12 percent of the mobile devices in today’s marketplace are smartphones. As consumers upgrade their existing devices, we should begin to see the mobile segment become more important to local search.
In closing, a greater percentage of local business searchers expect business results to be within 15 miles from their starting location (63 percent, from 52 percent in 2007). Marketers already leveraging local search know this and have seen its benefits: leads that convert both online and offline.
Mary Callahan Erdoes, JPMorgan Chase