All Forum Posts by: Jason Lee

It's pretty typical.

If you're looking in JC and Bayonne I'd try to get something closer to the Light Rail.

Also, if you're not that familiar with the area the Trulia crime map can give you decent idea of how things change block to block, particularly if you're set on looking in Greenville. Not sure how accurate/up to date the data is but it's good for a quick look.

A lot of the FSBO co-op sales I've seen have ended up with board turn downs because no one, including the buyer's broker, knew how to properly vet the buyer to pass the co-op board, or knew how to put a bullet proof board package together. Different co-ops have different rules, some of the rules are made public, others are not. Pretty much all have a bare minimum requirement for debt-to-income, housing debt-to-income, and post close liquidity as a multiple of the total monthly housing payment. On top of this there is the board package. Presentation of information goes a long way and those that aren't accustomed to putting together packages (that can often end up being hundreds of pages long) often make many mistakes. Also, a seasoned co-op listing agent will know how to present buyers that have unusual income streams, are self employed, are maybe trying to time a sale and purchase, or are doing gifting, co-purchasing, or need guarantors, etc. If you feel like you would be more comfortable having a selling broker representing your interest then you probably should have one. Obviously there is a cost for the service but if it's just shepherding the deal through successfully many would probably take it on at a much reduced commission. If you think you can get away with just having an attorney watch out for your interest, that's not the case. All of the vetting of buyers happens before the attorney ever gets involved and putting together the board package all happens after the contract is fully executed.

Also, just FYI, I don't know that the scenario you described would necessarily be dual agency. It's more likely the broker would have the buyer as the client (who he would have a fiduciary relationship), and you as a customer (that does not have a fiduciary relationship). Many are confused by this... understandably. Either way it would be hard for you to feel as though your best interest are being represented fully.

You should definitely reach out to a seller's broker on your own to confirm the sale price you've agreed to is a realistic market value for your home. I've seen this happen a bunch of times where sellers, who aren't intimately aware of current comps, leave a lot of money on the table (hundreds of thousands!). Remember, that buyer's broker contacted you looking for a deal for his existing client, not to get you the highest sales price (which is what a seller's broker would do).

From an investor standpoint, if one were to pay all-cash they would probably want to purchase somewhere below 130K to get at least 8% COC.

It is illegal to mail a solicitation of a real estate listing to homeowners that opt-in to the cease and desist list in certain parts of Queens and the Bronx. The lists are updated monthly and can be found on the NY DOS website. Search cease and desist list. I'm pretty sure Brooklyn is not included and the Brooklyn MLS doesn't have that many listings in the other boroughs.

Co-op maintenance includes real estate taxes and (if the co-op has an underlying mortgage... most do) mortgage payments. This is in addition to all the other expenses you'd find in a condo HOA or common charges. The deduction for real estate taxes and the mortgage interest gets passed on to shareholders. Each year the board will let you know the tax deductibility per co-op share. Let me know if you have any other questions about purchasing co-ops. It's not the most intuitive process.

Does the board allow adding w/d in the unit? Most do not. Most co-ops have an alteration agreement that outlines all the rules and fees. Boards typically review all major alterations and have to give approval. If you're taking down walls, or doing extensive plumbing (like adding w/d) they might get the building architect or engineer involved. They also typically have minimum requirements for contractor's insurance. Though this is common in condos as well. They often limit work hours to M-F 9-4 with no work on major holidays, etc. And depending on the building you'd have to reserve an elevator to bring in appliances or millwork. All of this can add time and cost to the renovation that you wouldn't have to worry about in a house. GC's will charge more for working in the city... parking, parking tickets, the higher insurance, limited work hours, etc that all adds up and so you can expect to pay more than outside the city.

If the apartment needs updating then you can certainly add value by renovating the kitchen, or bath, or refinishing the floors, swapping out some finishes and fixtures, or even just painting. If you keep things neutral and tasteful it should hold up and add value for resale or sublet down the line. Just don't go overboard.

Landlords typically want more protection, not less. Get the deposit. FYI a single unit condo owner doesn't have to put the deposit in an interest bearing account.

I don't know the Philly market but I'll guess cash flow is a little better there? Regardless, she has to live somewhere during those 4-5 years so if she purchased in Philly then she'd have to rent in Brooklyn? That would eat up any cash flow and end up being much more expensive, no? I'd buy in Bushwick. The Bushwick market is obviously frothy but at that price point (which is still affordable) there's still good upside. I think the last report I saw had lower priced units in Brooklyn median sales appreciating 10% YOY in Q1. Not sure what you mean by easier tenants in Philly. At the price point in Brooklyn she'd be looking at qualifying a tenant with an income very similar to hers (six figures).

Please put her in touch if she'd like to discuss any specific BK numbers.

I only deal with people who want to buy in NYC. From what I see:

1) Because they can afford to and they have no interest in owning 100k properties.

2) And many don't care about cash flow... at all.