Industry Knowledge - Q&A Flashcards
How do condo or co-op have lower carrying costs
- Tax abatements
- Pared back amenities
- Healthy reserve funds
9 steps to creating a stellar co-op or condo board application
- Start prepping early
- Follow the checklist and don’t leave gaps - Include everything asked for and don’t put in more than you need
- If you’re financing, you’ll need a commitment letter
- Include a cover letter and table of contents - One is table of contents and the other explains who you are, where you put your income, your assets post-closing, and your debt-to-income ratio.
- Don’t leave any blanks - Preempt any questions about your finances by providing necessary details. A schedule that breaks things down further and even going into detail about why you’ve made certain financial decisions
- Choose references wisely
- Aim for sincerity and specificity in personal references - Provide talking points or samples of great letters to your reference letter writers
- Double and triple-check the package
- Bring your A-game to the interview
9 negotiating mistakes to avoid when you’re buying in NYC
- Mutually respectful relationships
- Don’t get hung up on a specific sales price—instead, have a price range you can work with and be able to show flexibility in areas that might be beneficial to the seller.
- Always have a plan for your next move in the negotiations.
1. Don’t make a lowball offer that can’t be defended - If you are coming in with a bid well below asking, you also need to have evidence that the apartment is overpriced.
2. Don’t go for just any broker
3. Don’t negotiate single, isolated terms - Instead of focusing on price alone, Walker says it’s much more effective to negotiate a package that takes into consideration other aspects of the deal like the deposit, the contingency, or the closing details, like who will pay taxes and fees and how soon the deal can be done.
4. Don’t disappear if you don’t receive a counter-offer
5. Don’t talk too much in front of the seller’s agent
6. Don’t be rude
7. Don’t forget your Plan B
8. Don’t forget to write a good offer letter - Your offer letter should be carefully crafted and explain the offer as well as the reasoning behind it, referencing supporting information like comparable sales. With your offer letter you should include pre-approval from the bank if you’re financing. Also include the standard financial disclosure statement and if you’re buying all cash, you should include a document showing proof of funds or bank statements to verify you have the money to pay.
9. Don’t forget the the big picture
Difference between a Trust (Revocable Trust, Irrevocable Trust) and Estate.
An ESTATE is everything that you own at the moment of your death and is passed in a one-time distribution to your legal heirs.
Documents required to verify an estate descendent -
1. Probate - In New York state, a will only has to be submitted to probate if the decedent’s remaining assets are worth $30,000 or more. Such assets do not include any property or funds that transferred via pay on death accounts, in trust for (ITF) accounts (a bank account that is registered by an individual but that is managed and monitored by a trustee, all to benefit a third party – the beneficiary.), or joint ownership, as these automatically bypass the probate process.
2. letter of testamentary - are your proof that the court has reviewed the will and reviewed the entire process, concluded that everything was done correctly and confirmed that you are the duly-appointed executor.
A TRUST is a legal entity that can exist for generations and distributes assets according to a series of rules and instructions
- The grantor (also known as trustor, settlor, or creator)
- Both are transfered without probate
- Revocable Trust - a trust in which the terms can be changed at any time.
- Grantor is held liable for claims and creditors - Irrevocable Trust - An irrevocable trust describes a trust that cannot be modified after it is created without the beneficiaries’ consent.
What is the difference between a balcony and a terrace in NYC?
Unlike balconies, terraces can be recessed into the building as opposed to jutting out from the side. The former can also be partially enclosed, while terraces are always open to the sun.
Increases in Rents approved by Rent Guideline board
- Rent hike of 2.75 percent approved for roughly 1 million rent-stabilized apartments
- also approved a 5.25 percent increase for two-year leases
What is Good Cause eviction?
a landlord needs a good reason to evict you, such as if you broke the law or violated your lease.
- applies to market-rate apartments only.
- (For rent-stabilized apartments, tenants can file an overcharge complaint with the Division of Housing and Community Renewal.)
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