Archive for The Process

May
16

When Foreign Persons Sell

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In New York real estate sales there is one sure bet; you will pay taxes.  Whether you are a US tax payer or a foreign investor, the State of New York and the US Government will get their cut.

The question is when will you have to pay up?  The rules are a bit complicated, but one of our favorite legal bloggers, Jerry Feeney explains it like this:

For New York State: people who sell real estate in New York State, whether they are individuals, trusts, estates, or LLCs, must pay the tax at closing on the estimated gain as a condition of the sale, unless they are exempt from payment at closing.  Most transactions are exempt.  However, the exemption is only about the timing of the tax payment, not the obligation to make the payment.   Make no mistake; the seller is accountable to the taxing authority to account for the gains.

If you are a New York State resident, and/or the property being sold was the principal residence of the seller for 2 of the last 5 years, the exemption from paying at closing applies.

For example:  A seller who has owned a condo in New York City that is used as a second home, and is a New Jersey resident must fill out the applicable tax foand remit the tax payment on the estimated gain from the sale or they cannot close.  This is a very good reason to have a good accountant on retainer.

For United States Taxes, people who sell real estate in the United States must also certify at closing if they are exempt from the federal withholding requirement on real estate unless the sales price is $300,000 or less and the property is acquired for a primary residence.  If not, the seller must certify that they are exempt from withholding.  Face it, most New York City real estate is over $300,000.  There are 2 ways the seller could be exempt; if they are U. S. citizens, or resident aliens.  Others are ‘foreign persons’ under the statue and must withhold 10% of the purchase price unless they have obtained a withholding certificate from the IRS approving a smaller withholding.  These certificates can take up to 90 days to obtain, sometimes more, so be sure your attorney starts the process early to ensure a smooth closing.

For Example:  A Canadian citizen who does not have any immigration status in the U.S., and who sells an investment property would be required to have 10% withheld at closing, which must be remitted to the U.S. Treasury.  This seller would then need to file a U.S. Tax return for the year that the property was sold, regardless of whether they have any other U.S. income.

It is vitally important that your team include a qualified attorney and accountant to help you navigate these treacherous and complicated waters.

Based on article by Jerry M. Feeney,  Esq., Residential Real Estate Attorney.

This post is provided as informational proposes only and should not be construed as legal, accounting or tax advice by the RealEstateGeezer. You should seek advice from a qualified professional.

 

 Q:  I am considering purchasing a condominium unit in a small building, but the condominium board does not have an accountant prepare audited financial statements.  Is there a requirement that condominium and co-op boards have accountants prepare audited financial statements?

 A:  No, there is no requirement that boards have accountants prepare audited financial statements.  However, audited financial statements prepared by an accountant provide assurance that the financial statements fairly reflect the building’s financial position.  Consequently, an audited financial statement will provide a prospective purchaser with confidence that they have an accurate picture of a building’s financial condition.  Purchasers considering a condominium or co-op that does not have audited financials should proceed with caution when conducting their due diligence.

 Important Tip:  As mentioned in a past Legal Line Question of the Week, audited financial statements for a condominium or co-op are one of the due diligence items that your real estate broker should request from the seller or managing agent as soon as possible in order to expedite the transaction.

 Based on REBNY article by Neil B. Garfinkel, REBY Residential Counsel Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP   

This post is provided as informational proposes only and should not be construed as legal, accounting or tax advice by the RealEstateGeezer. You should seek advice from a qualified professional

Oct
26

Sorry says the Board: The Price isn’t Right

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Manhattan buyers and sellers have known for years that the real estate market has its share of challenges.  Co-op boards, who can reject applications for many reasons, are now rejecting sales if they think the price is too low in order to protect the property values in the building.

Buyers undergo intense scrutiny during the co-op application process, including providing volumes of financial and personal history, even references for their pets.  Co-op boards can reject an application for almost any reason, and they are not required to state the reason.

Some boards are determined to maintain the value of the building even if it means rejecting serious buyers.  Sellers want to sell their apartments, and buyers are determined to get a good deal or not overpay for the apartment.   Lawyers are fielding phone calls from boards and purchasers seeking legal advice.

For those outside the New York City area, this is astonishing since co-ops are rare.  But in New York City, where co-ops make up about 75% of the housing stock in Manhattan, this is a way of life.  Brokers are becoming accustomed to brokering deals where the contract price would be acceptable to a board, but the seller gives concessions like splitting the flip tax or paying for renovations as part of the contract.

Sometimes the board will reach out to the broker or individuals involved and let them know what the sticking point before flat out rejecting the application.  However, when a board is unwilling to approve based on low price, they run the risk of being considered a difficult board causing people to shy away from the building; or miss the clues that a seller might be in distress and default on the maintenance charges if unable to sell, putting the building in a tough financial situation.

A good broker will be able to negotiate the ins and outs of a board package, explain the pitfalls and advantages, and advise you on what position you should take.  Manhattan real estate is unlike real estate any other place in the world.  Having a broker by your side who knows their market is an asset to your team.

 

Inspired by New York Times article

Oct
02

Legal Question: Gift Taxes and the Lifetime Exemption

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It’s very common in real estate deals for the buyer to get financial help from family members. But what about the gift taxes? Buyers inevitably ask this question, and often have incorrect assumptions about how it works.

Who Pays?: Gifts are not income, and almost all cases it is the donor or the giver of the gift that must deal with the tax implications, not the receiver of the gift. Gifts to one’s spouse, however, are not subject to taxation. But be careful, if there is an agreement to repay, it’s not a gift, it’s a loan, and this has obvious implications for the lender on the deal. Also gifts from an employer to an employee are always considered income, and cannot be treated as a gift even if all the other elements of a gift are present. Be sure the buyer understands that a gift cannot come with an expectation to return.

Annual Exclusion: Each year any individual can give any other individual up to $13,000 (married couples can give $26,000) without it being subject to taxation. And that exclusion can be used for any number of individuals. So a married couple can give their married child a total of $52,000 ($13,000 from each parent to each of the child and the child’s spouse, so the total is 4 X $13,000) in December, and then do it again in January, without any reporting obligation.

Lifetime Exemption: Gifts in excess of the annual exclusion trigger an obligation to file a gift tax return on IRS Form 709, even if no tax is currently due. Under federal law, the estate basic exclusion is $5,120,000 as of 2012. So the first $5,120,000 of a person’s estate is exempt from federal tax, and that exemption applies to non-excluded gifts made during a taxpayer’s lifetime. So even though a federal return is required to be filed, individuals do not pay the gift tax until their cumulative lifetime gift giving (less annual exclusions to individuals) exceeds the exemption amount. But the exemption of $5.2 million, however, is temporary and expiring at the end of 2012. Congress has yet to act on an extension.

 

Information provided by Jerry M Feeney, Esq. Residential Real Estate Law.

This post is provided as informational proposes only and should not be construed as legal, accounting or tax advice by the RealEstateGeezer. You should seek advice from a qualified professional.

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May
10

Real Estate Hurdles Leading to Contract Cancellations

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With the economy showing signs of recovery in many parts of the country, one would think that Real Estate deals would be smooth sailing.  Unfortunately that isn’t the case.  In a new national survey Almost one-third of real estate agents reported experiencing  deals falling through. 

According to the survey by the National Association of Realtors, the reported cancellation rate doesn’t mean that one of every three transactions are falling through, rather more than triple the number of agents are facing  deal-jeopardizing problems in 2011.

 Some of the issues reported:

  • Appraisals below contract price.   Appraisers hired by the mortgage company may have a different opinion of the value of the property, sometimes significantly below the price agreed in the contract.  Foreclosures being used as ‘comparables’ to value non-distressed properties are part of the problem here.  Inexperienced appraisers who are unfamiliar with local trends also contribute to this trend.
  • Stringent underwriting and documentation requirements.  Restrictive underwriting rules at the Federal Housing Administration, Fannie Mae and Freddie Mac can derail signed contracts or delay them for months.
  • Poor service by lender staff.  Agents report “lack of customer service” and “generally bad attitudes” as contributing factors to delays and some contract failures.  However, agents also need to be on the lookout when loan processing deadlines start to lag or communication breaks down, and facilitate the progress of getting it moving again.

The key to closing on a home is to make sure you choose the right agent, lender and other team members who will help you understand the rules and requirements before hand, and stay on top of the professionals involved in your transaction.

Based on Los Angeles Times article.

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Apr
30

In the News

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4/25/12  ‘Sex and the City’ Townhouse sold for $9.85 million:  The home at 64 Perry Street, listed for $9.65 million in early March with sold for $9.85 million, according to city records.  Read the full article at The New York Observer 

4/26/12  Useful  Vocabulary for Building Watchers:  Here are a few  architectural definitions that anyone who wants fluency in New York architecture will find useful.  Read the full story in the New York Times  

4/26/12  Prudential Douglas Elliman releases “The Elliman Report:  Long Island Sales 1Q 2012”:  Mild winter weather brought consumers into the market earlier than usual, causing the number of signed contracts in the Long Island housing market to jump from year ago levels. Housing prices were mixed, as buyers of lower priced properties took advantage of record low mortgage rates. Although properties took slightly longer to sell, listing inventory fell to its lowest first quarter total in six years. Despite the slow improvement in the national economy, we are encouraged by the state of the market in 2012.  See the full repor

4/26/12:  Prudential Douglas Elliman releases “The Elliman Report:  Hamptons & North Fork Sales 1Q 2012”:  The Hamptons and North Fork housing markets showed stability in both price and sales activity. Just as we have seen in prior quarters, the high end of the market continued to show strength. While it took somewhat longer to sell a typical property this quarter, listing inventory continued to decline. Considering the slow pace of our national economic recovery and tight credit, the East End housing market has continued to hold its own.  See the full report 

4/27/12:   Space Shuttle Enterprise’s Historic Flyover Wow’s New Yorkers: Did you see it?  Hundreds of space shuttle shuttle fans braved the chilly temperatures and biting wind Friday Morning along the Hudson River here to catch a glimpse of NASA’s prototype orbiter as it flew past the Intrepid Sea, Air and Space Museum it will soon call home.  See the full article on Yahoo! News 

4/27/12:  Threats, stormy Exits and…:  The setting for the closing on an apartment in the East 50s was a lawyer’s office. Things seemed to be going well between the sellers until the wife found out the price her husband had received for the apartment.  This is New York City, where real estate transactions can literally take on the trappings of a blood sport. Unlike most other parts of the country, it is a place where lawyers are invariably involved in the transaction; at the very least, this increases the number of people around the table.  Read the full article in the New York Times 

4/27/12  Brokers See Bright Future for 2012’s Residential Real Estate Market: The Real Estate Board of New York (REBNY) has released the results of its Residential Brokers Survey for the first quarter of 2012.  With the unseasonably warm weather and favorable market conditions, brokers saw an uptick in activity this quarter and are optimistic about next quarter.  Of the brokers surveyed, 69 percent reported that they thought the first quarter of 2012 was better than the previous quarter.  Additionally, 76 percent of brokers reported that they expect the second quarter of 2012 to be better than the first, a 16 percent increase from last quarter. 

 Their optimism was based on the improving activity in the market.  The survey found that 70 percent of brokers reported completing executed contracts of sale this quarter, a nine percent increase from last quarter.  Another highlight from the first quarter of 2012 was that 74 percent of brokers reported closing rental transactions at or above asking prices, which is a 13 percent increase from this time last year.  In addition, 26 percent of the brokers reported closing sales at or above asking price, a nine percent increase from the fourth quarter of 2011 and a 4 percent increase from the first quarter 2011.

 “Brokers feel changes in the market first and we count on them to help us gauge where the market is headed,” said REBNY President Steven Spinola.  “Based on the survey results, it’s clear that broker’s optimism is coming from an improving market and that their view that 2012 will be a strong year for New York City real estate is justified.” 

 The survey also found a near perfect record of 99 percent of brokers reporting that they received a coop board approval in less than 90 days from the time a completed coop board application was submitted.

 Similar to last quarter’s findings the top features/amenities this quarter were: 1) doorman building, 2) laundry in unit, 3) private storage space, and 4) on-site fitness center.
 The survey was sent to REBNY’s Residential Broker Members.  404 brokers took the survey this quarter.  See the REBNY Q1 2012 Residential Broker’s Survey Results

Feb
07

What Co-op Boards look for in your Financials

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Many co-op boards do a cursory examination of your application:  review financials, check references, interview and make a decision.  But what does it mean ‘review financials’?  In the old days, if the bank gave the ok for financing, that was ‘good enough’; but not anymore.

So what do they look at? 

  • Debt-to-income ratio    
    • Mortgage lenders generally want no more than 28% of a buyer’s gross monthly income to the mortgage payment (Principal, Interest, Taxes and Insurance), or a maximum of 36% for PITI and recurring debt (loans, credit card payments, child support, etc)
    • Co-op Boards usually want to see something closer to 25-30% debt-to-income
  • Income – liquid income
    • Generally the last 3 years of tax returns are reviewed for gross income and adjusted gross income
    • Earning Potential – if your earnings are less than board guidelines, or assets are too weak, but you can show potential for increased income, the board may approve with conditions such as a year’s maintenance held in escrow.
    • Debts
      • Boards also consider other debts, student loans, car loans, other mortgages.
  • Other Factors
    • Location – locations such as Brooklyn or Queens may be less likely to look for large assets and permit more financing than a building on Park Avenue in Manhattan
    • Building size – larger buildings could be easier to buy into than smaller buildings because one or two arrears owners have less impact in a 200 unit building than a 20 unit building.

Boards want to protect their co-op, choosing people who are the right fit.  They also need to stay within the boundaries of discrimination laws.  Reviewing the financials allows the board to decide whether to move forward or not without violating the discrimination laws.

Excerpted from Habitat article

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Jan
23

Maintenance Fees are More than Just Maintenance

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For most buyers in Manhattan, getting past the asking price of a co-op or condo is only the first in a series of seemingly insurmountable obstacles.  The monthly maintenance fee is the second.  From a few hundred dollars a month to a few thousand depending on the various buildings, most owners find the maintenance fee never goes down, and rarely stays constant.   Most are adjusted on an annual basis.

Buyers need to be concerned about the fee as a direct impact on the property value, not just because of the cash going out every month.  The maintenance fee covers operating costs:  Staff Salaries, management fees, heat, water and sewer and other items.  In co-ops, the real estate tax bill and underlying mortgages on the entire building is part of the maintenance fee, and is proportional to the number of shares you own in the co-op corporation.

Condos are different. The common charges still cover the operating costs the same as co-ops, but the property tax bill goes directly to the owner because of the different ownership type.  Condos may have more amenities but lower common charges due to this distinction.

According to the Council of New York Tax Cooperatives and Condominiums, the fees have skyrocketed over the last decade.  For example, the median maintenance fee for co-ops on the West Side of Manhattan rose by 59% between 2000 and 2009, while condo common charges increased by 38% city-wide for the same period.

Increasing Real Estate Taxes are the main reason for the rise in co-op fees.  Both the tax rate and the assessment of property values have increased in recent years.  On the West Side, co-op median real estate taxes increased by 116% between 2000 and 2009.   On the East Side in 2000, 23% of the maintenance paid was attributed to taxes; by 2009, that figure had risen to 33.3%, indicating that taxes were a larger portion of the maintenance fees.

Land Leases are another issue for increased maintenance fees for some co-ops.  As a number of co-ops do not own the land their building sits upon, rather rents the land.  Some of those leases are coming up for renewal soon, and the experts predict there will be a huge jump in cost.

Finding savings to offset the increases is difficult.  Most costs are fixed, including salaries, taxes, insurance, upkeep and utilities.  Several co-ops have hired consultants to check for water leaks, while others are switching to natural gas from oil heat.  Still others are metering each apartment’s utilities separately.

Many co-ops are refinancing their underlying mortgages to take advantage of low interest rates.  Others are generating income by imposing or increasing fees for using the bike room, moving in or out or renting a unit.

Reviewing a building’s financials will give a buyer an understanding of how a building spends its money.  If you disagree with how a building spends the fees, there’s little point in moving there.   See our Series on reviewing building financials starting with  ‘Tis the Season: Many Manhattan Coop Financial Statements Are Released In May.

Inspired by New York Times Article on Jan 15, 2012 by Jim Rendon.

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Jan
20

Enticing Foreign Investors – Buy a home get a Visa?

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Recnetly,  U.S. Senators Charles Schumer (D-NY) and Mike Lee (R-UT)  introduced a bill that would allow foreigners who spend at least $500,000 on residential property to obtain visas allowing them to live in the United States.  The “Visa Improvements to Stimulate International Tourism to the United States of America Act”, or VISIT-USA Act is similar to an existing program that puts foreigners on a fast track to a green card if they invest at least $500,000 in an American business that creates at least 10 jobs.

The legislation would create a new homeowner visa that would be renewable every three years, but would not be a path to citizenship.  There are a number of stipulations and restrictions, however:

  • To be eligible, a person would have to buy a primary residence of at least $250,000 and spend a total of $500,000 on residential real estate.  Other properties could be rented.
  • The purchase would have to be in cash, no mortgage or home equity loan allowed.
  • The property would have to be bought for more than its most recent appraised value
  • Buyer would have to live in home for at least 180 days each year, requiring paying US Income taxes on any foreign earnings.
  • Visa eligibility would be revoked if property was sold.
  • Work visas still must be obtained to hold a job.
  • Neither buyer nor dependents would be eligible to receive Medicaid, Medicare or Social Security benefits.

Some brokers say that a visa incentive to foreign buyers could potentially even triple sales in their markets. 

“California, Florida, New York, Colorado, Hawaii, and Texas — those states will see a huge increase in demand,” Sandra Miller, a broker at Engel & Volkers in Santa Monica, told the Los Angeles Times.

Source:  Los Angeles Times story

Categories : Buyers, Foreign, The Process
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Jan
13

Getting Started – Homework for Manhattan Condo Buyers

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With an aging housing inventory, new condominiums have quite an appeal in Manhattan.  Luxury amenities like pools and play areas, high end finishes add to the appeal.

New condos have a few drawbacks, however: often higher selling prices and closing costs as well as difficulties in obtaining loans.  New buildings must have offering plans approved by the state attorney general’s office, detailing important points about the building.  This complex document can be intimidating to the lay person. 

Bringing in a good attorney familiar with new construction to review the offering plan early in the process can save a client thousands of dollars by identifying taxes and fees that can be negotiated.

Tax abatement is another point that bears close scrutiny.    While it is a great selling point because it keeps monthly costs lower for a while, an attorney can help determine the time span of the abatement and what the tax bill could be when the abatement expires.

Closing costs are much higher on new construction.  Expect to pay the transfer tax and the seller’s attorney fees in addition to the customary closing costs for established apartments.

Be sure the building has a temporary certificate of occupancy, required before you can close on an apartment in a new building.  Check the Building Department Website

Financing a new condo can be difficult.  Buyers may be approved for a loan, but it is entirely possible the building will not qualify.   Certain FHA and Fannie Mae requirements may preclude the building, such as flood zone or percentage of sold apartments.  Individual banks may have their own additional requirements.  Many new buildings have preferred lenders and mortgage brokers to overcome this hurdle.

Appraisals must match the purchase price.  It is not unusual to have difficulties finding nearby comparables to the new apartment you wish to buy, causing appraisals to come in lower than expected. 

Inspections are recommended for new construction.  Cost cutting measures like lower-quality windows and problem with floors or exterior stucco may affect the quality of your life.  Significant problems can be addressed in the contract.  Smaller issues like paint drips or broken screens should be addressed on a ‘punch list’.

Doing your homework now can save you a lot of aggravation down the road.

 Inspired by New York Times Article by Jim Rendon, published October 30, 2011

 

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Nov
08

Congress Restores FHA Loan Limits to previous levels

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As we reported in May,  the Federal Government backed new mortgage lending limits program expired in September, 2011.  This week, the U.S. House and Senate voted to restore the FHA loan limits to the previous maximum $729,750.  According to the National Association of Realtors, this will help provide stability to communities as credit restrictions continue to prevent some qualified buyers from becoming home owners.

The restoration of the limits only apples to FHA mortgages, not Fannie Mae and Freddie Mac, which also expired at the end of September.  The conforming loan limit for these two secondary mortgage market companies will remain at a maximum of $625,500.

While this may be good news for many markets, in Manhattan, where over 70% of the apartments for sale are Co-ops, it probably won’t make much difference.  Most co-op boards require 20-50% down payments and higher income to debt rations (25-30% maximum debt to income).   Lenders for most condos are asking for at least 20% down payment to qualify for a loan.

Excerpts from Daily Real Estate News, November 18, 2011

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Oct
20

What’s the Best Day to List Your Home?

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According to a Redfin study which analyzed 1.2 million listings in 16 markets over 21 months, Friday is the best day of the week to list a home for sale.

  • Homes listed on Friday were 12% more likely to sell within 90 days.
  • Homes listed on Thursday or Friday sold for slightly closer to list price – 94.4% compared with 93.9% for homes listed on a Sunday or Monday.
  • Homes listed on Friday were viewed 19% more by buyers than homes listed on any other day of the week.

“Our theory is that since home buyers tend to tour homes on the weekends (Saturday and Sunday have 2.5 times more tours per day than weekdays), homes listed on Fridays are the freshest in buyers’ minds when they’re making their weekend plans,” the brokerage said in a blog post about the findings. “It also seems likely that many home buyers sort their weekend ‘must see’ lists by date listed, going to see the freshest homes first so they have the best chance of getting in on a potential good deal before other buyers. These factors put homes listed on Friday in front of more touring buyers on the weekend. More tours lead to more offers, and more offers leads to a better price and a better chance of selling.”

Listing in Manhattan? Since we don’t have an MLS here, make sure you take into consideration the 24 hours it takes to submit the listing to the various web sites that will be used by consumers. I suggest, posting Wednesday to ensure total distribution by Friday.

rwb 

Source: “Best Day to List Real Estate for Sale: Friday,” Inman News (Oct. 18, 2011)

Categories : Selling, The Process
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People often confuse the first two stages of the mortgage process.  Often they get pre-qualified and mistakenly believe they are pre-approved.  So what’s the difference?

Pre-Qualified:   This is the first step in the mortgage process.  You talk to a lender and give them overall numbers regarding income, debt and assets.  The lender will evaluate the information and give you an idea of how much and what type of mortgage you qualify for. This is sometimes done over the phone and is not a sure thing, only a ball-park of the amount you might expect to be approved

Pre-Approved:  Is much more involved.  Requires an official application and even sometimes a fee; documentation and extensive check on everything you’ve put on the application as well as your current credit rating.  At this point, if approved, you’ll receive an official commitment in writing for an exact loan amount, with conditions.

Generally, getting pre-qualified before you start looking gives you a starting price you can afford so you’re looking at only properties at or below that price.  Getting pre-approved puts you in a stronger position in offers and negotiations and saves some time.

The loan commitment is the final step in the process.  This approves you the buyer to a specific property.  Your income and credit profile will be checked again to ensure nothing has changed since the initial approval.  It is only issued when the bank is certain it will lend you the money.

Adapted from InvestoPedia article by Brian O’Connell 

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Sep
01

Qualifying for a Mortgage as a Freelancer

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At one point during the credit crunch, getting a loan as a freelancer was nearly impossible.  While it still remains difficult, the loan approval process is one of the biggest challenges.  Be prepared to submit additional paperwork to prove consistent income.

Tips for home-buying freelancers:

  • Pay off other debts, including credit cards, and build a cash reserve.
  • Identify the source of the down payment, whether a gift or loan from your 401(k), and be prepared to show statements.
  • Prepare for a closer examination.  Review at least 3 years tax returns.  If your income increased substantially from one year to the next, be prepared to explain why and whether you expect it to continue.  If your income declined last year, be prepared to explain that.
  • Check with local banks and credit unions which may be more inclined to spend the time necessary to qualify you for a mortgage.

It is always wise to address any credit problems before beginning the house hunt.  With a little preparation and answers to some tough questions, you may be able to get into the home of your dreams.

Inspired by New York Times article by Vickie Elmer, August 26, 2011.

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Recently I wrote a 3 part series on Coop financial statements. In Part 1, we discussed the General Principles of a Coop Corporation and the Telltale signs of a GOOD Building. Part 2 discussed what to look for in Coop Financials. In Part 3 we look at assessing a Coop’s financial condition.

As I pointed out, Coops seldom conduct a study to determine the remaining useful lives of the building’s systems and major components. Additionally, coops are seldom required (if ever) by their governing documents to accumulate funds in advance of the need of such repairs.

Depending on the size of the building, emergency and unplanned repairs can result in a serious increase in maintenance or special assessments. High maintenance and assessments drive down apartment selling prices.

The board did all of this work without raising maintenance or passing a special assessment.

With an Engineering Systems Report, a 5 year Capital Budget Plan and a culture of working together for the benefit of all residents, 360 East 72nd Street was a rare example of a Coop, thanks to its Board, that took a building with serious problems and rebuilt most of the infrastructure….The board did all of this work without raising maintenance or passing a special assessment.

The Costs:

Brick replacements/balconies $8.5 million
A/C chiller $995,000
Oil tank $213,000
35th floor roof $510,000
Elevators (machinery) $510,000
Elevators (cabs) $170,000
18th Floor roof $249,000

Total $11,600,500

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