November 15th, 2011 — 4:20pm
An important factor in buying or selling an apartment is whether the building itself has been approved by one of the three government entities (or quasi-government entities) involved in the home lending industry.
Approval allows a purchaser’s loan to be either sold by the lender to Fannie or Freddie (buyers of home mortgages) or be insured by the Federal Housing Administration (the “FHA,” a loan insurer). Approval is important even for the “all cash” buyer because their eventual buyer might need a loan and sellers need to know if their building is approved when figuring out how to market the apartment. Continue reading »
Comment » | Financial Statements, Financials, Get the Co-op in order, The Buyers World, The Sellers World
March 8th, 2011 — 6:24pm
Keep Your Eye On The Ball: When purchasing a co-op apartment, a purchaser is actually buying shares of a corporation and not just an apartment. I imagine that most people would not invest a large sum of money in any other business without knowing the financial condition of the business. Yet, when it comes to buying a co-op, most people never think of asking how the co-op’s business is doing. Continue reading »
2 comments » | Do Your Diligence, Financial Statements, Financials, News
February 6th, 2011 — 4:15pm
It’s Not Easy Being Green.
Just when you thought you were starting to get a handle on this market, there is now something new to ponder. New York City Local Law 84/09 requires that by May 1, 2011 buildings that are 50,000 square feet or larger will have to report to the City their usage for electricity, gas, fuel oil, steam and if equipped with an automatic meter reading equipment, water. Continue reading »
3 comments » | Do Your Diligence, Financials, Going Green, News, The Sellers World
January 24th, 2011 — 9:23am
While conducting due diligence on behalf of clients in connection with co-op purchases, we have encountered situations where co-op corporations have instituted assessments on all of the tenants’ shares. While the existence of most assessments can be telling concerning the overall financial health of a building, a yearly assessment to offset the building’s real estate tax abatement is a typical practice in New York City and not an assessment that should concern a potential purchaser. Continue reading »
Comments Off on Not All Assessments Are Bad Assessments | Can you Afford it?, Financials, News
January 19th, 2011 — 1:18pm
It’s not just four walls! The client calls and says that they have finally found the apartment they have been searching for. The broker is sending the deal memo today and by the way, since there is another buyer lurking, can the contract be signed by the end of the week?
The answer is simple. Yes we can BUT. Do you really want to buy an apartment in a building you know nothing about?
Would you like to know if there has been a bedbug problem? Continue reading »
Comment » | Do Your Diligence, Financials, Find a Lawyer, Fly-By, News, The Buyers World