Adam Dahill's Profile
- Adam Dahill
- 917-696-6010
- 2003
- Manhattan
- Condo
- Private Mortgage Banker
- Male
- 30
- http://adamdahill@gmail.com
Author's Posts
November 16, 2009
Pet Insurance?
What's the best pet insurance company out there? I've heard some horror stories about some of them so I wanted to ask what you guys (and gals) thought.
How fast does it take to go into affect?
October 30, 2009
Coop & Condo Breakthrough Loans
Thought I would post guidelines for those interested in combining coop and condo units.
Combining of Two or More Units (Combo)
Written Approval by COOP Board for the Combination of the units is required
Appraisal:
Appraised Value to be based on an "as completed" combined unit per the plans and
specs
Appraiser required to use other similar size units for comps
Address if typical for market and implication on marketability
Renovation Funds would be held in escrow until completion- Estimate would come from general contractor.
Completion should occur within reasonable period post close.
Generally a maximum 180 day timeframe
Loan is not eligible for sale to Agencies or Shelf until work is completed.
Extensions possible but require justifications
Combos are considered as a Refinance
Unless units to be combined are purchased together
Three day rescission period applies
Special Lien Search & Closing conditions
There are two cases where we do a co-op (or condo) breakthrough, with #1 being more common:
1. Someone owns a co-op unit and wants to buy the unit next door (I've even seen breakthroughs where they buy the unit above or below their current unit). We treat the loan as a cash out refi, with our loan being used to pay off the current loan and purchase the new unit. We escrow for the actual construction work (the break through) to be done post closing.
2. Someone who does not own any units currently buys 2 adjacent units and combines them. This is treated as a purchase, obviously.
In either case, we must comp out the unit adequately and also show that this is somewhat common and customary to the area.
A few key points to keep in mind:
- the co-op has to approve the combination of the two units
- they'll need an estimate to remove the kitchen and create the doorway
- an escrow is created to make sure the work is completed
- the end transaction should be one loan for both units (treated as a cash-out refi)
- typically both units will be combined into one stock certificate however it's ok to keep two stock certs as long as they are both referenced on the security agreement.
March 27, 2009
Referral for a Tenant Lawyer?
Long story short I need a referral for a good landlord/tenant lawyer that reps tenants. This is for an old rental from 2004. The landlord is a crazy bastard and was actually illegally renting me a rent stable apartment 3 times the legal rent (I later found out.) he wants additional money now and I'm going to slap a counter suit on his ass and take him to the cleaners. He has harrassed me numerous times of the past 5 years and I am sick and tired of his crap.
I don't want to pay an arm and a leg but I feel that an seasoned attorney would do better in court than I would myself.
please let me know guys.
March 18, 2009
Fed Plans to Buy Up Long-Term U.
Watch out as Rates are about to drop!!!!
Turntimes continue to stink at the large lenders though.
Chase Subordinations are at an 8 week turnaround time.
The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.
CNBC.com
--------------------------------------------------------------------------------
In a statement at the end of a two-day meeting, the central bank's policy panel also said it had decided to hold its target for overnight interest rates in a zero to 0.25 percent range —the level reached in December.
It said rates would stay low for "an extended period," a more explicit vow to stay on hold for a prolonged time.
"In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability," the Fed said.
Prices for U.S. government bonds shot higher and U.S. stocks jumped on the move, with the blue chip Dow Jones industrial average moving into positive territory. The dollar fell sharply.
"This is a pretty dramatic move ... They are trying to bring down all consumer rates," said James Caron, head of global rates research at Morgan Stanley in New York.
In addition to the purchases of U.S. Treasury debt, the Fed said it would expand an already existing program to buy debt and securities issued by the government-backed mortgage finance agencies.
It said it would expand those purchases by a combined $850 billion to a total of $1.45 trillion this year.
The program has already been effective in lowering U.S. mortgage rates.
"Bottom line is the Fed is adding a trillion dollars to their balance sheet and that's a lot of taxpayer money," said Greg Salvaggio, vice president for trading at Tempus Consulting in Washington.
With benchmark rates virtually at zero, the Fed has turned its focus to pumping money into stressed credit markets in the hope of restarting lending and restoring growth -- a policy Fed chief Ben Bernanke has dubbed "credit easing."
Bernanke on Sunday said repairing the tattered financial system was necessary to secure a recovery for the U.S. economy, which has been stuck in recession for more than a year.
The Fed this week began taking bids for a program designed to spur student, auto, credit card and small business lending, and it said Wednesday it would consider expanding that program to cover a wider array of assets.
The consumer and small business credit program will initially aim to inject $200 billion into the market for securities backed by these loans, but the Fed has already said that program could be ramped up to $1 trillion.
March 4, 2009
Home Affordable Refinance INTRO
Below is the link to Fannie Mae's New Home Affordable Refinance Program that came out today. This will allow borrowers to refinance up to 105%
Looks pretty agressive but we are waiting on further details. It looks as though there will be no adjustments to rate for high fico borrowers. We will know more in the upcoming days.
Take a look
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0904.pdf
March 2, 2009
Car insurance recommendations
Does anyone have a recommendation for a good car insurance broker or company?
I'm currently with Geico but I am looking to do a little better. My car is still registered in NY, specifically Westchester Co. I've heard that Jersey insurance is more than NY so I am hesitant to change it over but I may be wrong.
I've heard good things about Encompass.
Any thoughts? Trying to cut down on bills if I can.
January 15, 2009
PLANE CRASH IN THE HUDSON RIVER
Does anyone know what happened yet? Right by the Intrepid. It's a large commercial airline.
November 23, 2008
Where to buy Metal Lockers?
I'm looking for one or two metal lockers to store tools, sports equipment etc... I have extra space in my garage that I would like to store some of these items and need something that has the ability to be locked with a Master Lock. Not that I don't trust my neighborhors but I don't want my tools or skis stolen. I checked out Home Depot but those lockers are that heavy grade plastic, I'm looking for more of a steel product that you would see in an autobody garage.
Any idea where I kind find such a piece? Maybe 2nd hand as I don't want to pay through the nose for it.
November 13, 2008
Tax Credits for Historic Restorations
I'm not sure if anyone has researched this or has had experience with this tax program but I cam upon this online and wanted to share.
page 17 of the pdf goes into NY state.
Unfortunelty Jersey doesn't have anything for me :(
http://www.preservationnation.org/resources/find-funding/additional-resources/taxincentives.pdf
September 8, 2008
Interest Rates Are Awesome
Not sure if anyone is currently in contract or looking to refinance but interest rates are amazing today. They will probably go back up a little in the next few days as this may be a knee jerk reaction to Fannie and Freddie getting bailed out by the gov.
If you are paying 1pt you are at 5.625% on a 30yr fixed.
No points you are under 6% at 5.875% today on the 30yr fixed.
Call you broker or banker if you are currently floating to lock in.
Author's Comments
Just be careful if you go the 203k route. It won't cover all the repairs and there is a ton of red tape with them. I've heard and been involved with some horror stories with them. That is why I am for the moment passing on these types of deals.
Posted by: Adam Dahill at November 19, 2009 6:00 PM in response to Habitable? Financing? Time-Bomb?
my 401k is back to June 2008 levels and I haven't made a single contribution since before that date. I haven't touched it. No rebalancing.
Pretty happy with that to say the least.
Posted by: Adam Dahill at November 19, 2009 5:57 PM in response to 150 Bond Finally Sells—For a Loss
Banks won't lend on the property. If you have your heart set on it you are looking at hard money lenders at 14% rates and 4 points upfront or an equity investor. Maybe a 203k which I'm no longer doing. Call Wells Fargo and ask about it. Don't hold your breath.
-Adam Dahill
Posted by: Adam Dahill at November 19, 2009 4:04 PM in response to Habitable? Financing? Time-Bomb?
Not sure if I want to venture into this arguement but at the end of the day the seller got 1.4 million for a shell. I don't know about you but that is still a lot of money.
It's virtualy impossible to get rehab money these days. You options are FHA 203k (which I no longer offer because they are just too damn work and have all types of problems) and Hard Money at 14% with 4 points at least.
Cash is king in the rehab business these days.
Posted by: Adam Dahill at November 19, 2009 4:00 PM in response to 150 Bond Finally Sells—For a Loss
Thank you Ian for the kind words. You were a pleasure to deal with and you got me what I needed when I needed which makes the process a whole lot faster.
11217- It's best to shop around but also check with your lender to see what they can offer. Feel free to send me an email and I'll let you know what I can do for you as well.
I can always gross up the interest rate a tad in order to cover the closings cost if you would like. So you won't get the best rate available but it won't cost you anything so you will still be ahead of the game. Coop's have the least amount of closing costs of all property types.
Posted by: Adam Dahill at November 18, 2009 3:26 PM in response to Mortgage Broker Recommendation
It took a bit to get used to the PATH but it's not bad at all. The trains are actualy on a schedule so you can time your commute. The PATH runs all night. In the wee hours it's every 30 mins from World Trade on the hour and half hour so you know when to leave if you are out and about.
quikazoid- I bought in a development called Dixon Mills. They are paying down the interest rate and 1yr maintenance now. Converted pencil factory lofts. There is also a new development called the Saffron which is on the cheaper side around 300k for 1bd and 400k for 2beds.
Liberty Harbor is a new mixed-use development of townhouses and condos. Nice but not as cheap.
77 Hudson is one of those on the waterfront that is over the top with amenities but I found it a little pricey for the neighborhood.
Crystal Point is also expensive but it juts out into the water and the views are ridiculous.
The neighborhoods vary downtown. The waterfront is all High rises, the 4 historic neighborhoods is what I realy like.
Paulus Hook- Very upscale and expensive but very quit and safe.
Hamilton Park- Brownstone neighborhood with beautful Park as anchor. New development called Hamilton Square is nice.
Harsimus Cove- Closer to the Grove Path, very similar to Hamilton Park. Brownstone neighborhood
Van Vorst Park- Where I live- Close to the Path and Liberty Harbor. Brownstone neighborhood with some loft buildings. Great beautiful park that is the anchor and really close to all the shopping and restaurants on Grove Street.
There are some cheap BrownDos. brownstones converted in condos that you can get a good deal on these days.
There are deals up on the hill by Journal Square but that neighborhood is still gentrifying and there is not a lot of retail and nighlife yet other than the Indian Row of Newark Avenue which is like Jackson Heights.
Posted by: Adam Dahill at November 17, 2009 1:45 PM in response to Williamsburg or Clinton Hill
Williamsburg to live, but Clinton Hill as a pure investment decision. I'll shut up now.... Go Jersey City :)
Posted by: Adam Dahill at November 16, 2009 6:52 PM in response to Williamsburg or Clinton Hill
But btwn the two choices I would pick williamsburg but only if you could get a good deal by a distressed developer. I think Clinton Hill never got crazy with the condo buzz so if housing continues to soften it will have less to fall. Williamsburg has a great social scene with a ton of restaurants and nightlife but also a lot of vacant condos.
Posted by: Adam Dahill at November 16, 2009 6:47 PM in response to Williamsburg or Clinton Hill
Don't knock it until you visit it but I totally love Jersey City. Moved here not too long ago. Lot of Brookln people moving over here. You have your Brownstone blocks and a bunch of converted factory lofts. You get a lot of bang for your buck over here.
Posted by: Adam Dahill at November 16, 2009 6:44 PM in response to Williamsburg or Clinton Hill
Very few lenders will allow the assignment of a contract. There are a few but slim pickings.
adahill@wcslending.com
Posted by: Adam Dahill at November 12, 2009 9:43 AM in response to Mortgage providers 4 families
A legal 2 family is LEGAL. a single family used as 2 isn't. It's pretty obvious. You can get in a heap of trouble renting illegal aprtments. Just look at that fire in Queens. That landlord is going to either get sued for a ton of money or possibly jail time.
Don't do it.
Posted by: Adam Dahill at November 12, 2009 9:42 AM in response to 2-family vs single?
I would also like to know. I have been toying around with the idea of pulling up my floors and leveling certain sections. No need for new floor but pulling up the old one and new subfloor sounds like it could be costly.
At the end of the day nobody notices it but me but I find myself wanting to correct it more and more.
Posted by: Adam Dahill at November 9, 2009 3:25 PM in response to New Subfloor Under Wide Plank
Sorry was away from the computer all day yesterday. Yes FHA loans have both an upfront MI and a monthly MI.
FHA loans finance 1.75% upfront that goes to HUD and an additional .55% annually. I know it's a lot but it's the only way to get above 80% in Brooklyn these days as PMI companies will not insure 2-4 units in BK.
I have one bank that will do 90% on 2 units only in Brooklyn up to 90% with NO PMI but there rates are in the high 5's low 6's but they are not a Fannie Lender so loan limits donot apply to them.
-Adam Dahill
Posted by: Adam Dahill at November 6, 2009 1:35 PM in response to Mortgage Questions
You are not going to get 1.15 million mortgage when you are buying the property for 1.1 million.
There are a few Rehab lenders out there still if you are looking for HARD MONEY rates and terms. 13-14% rates and multiple points for short term loans.
I would borrow as much as possible with an FHA loan and use my own funds for the renovation. If you are short funds then you should scale back on your renovation or do a little bit at a time. Rome wasn't built in a day.
Just my honest opinion.
Posted by: Adam Dahill at November 4, 2009 1:07 PM in response to Mortgage Questions
Purchase it with 1 mortgage and hold title as TIC (tenants in common) Best way to obtain the most attractive mortgage.
You should be pre-qualified before you start bidding on houses. Once you are pre-qualified obtain a lawyer for when you see a property that you would like to buy.
Posted by: Adam Dahill at November 3, 2009 9:36 AM in response to Buying a Multifamily House
Basically if you already own a unit you can buy the one next door and we will treat it as a refinance allowing you to put down very little if not anything if you have sufficient equity. This is a very dynamic product for those looking to expand but do not want to sell in this market.
-Adam Dahill
adahill@wcslending.com
Posted by: Adam Dahill at October 30, 2009 2:41 PM in response to Coop & Condo Breakthrough Loans
Deal with a firm that handles higher end luxury properties. I wouldn't give an exclusive to a small broker on a property of this type.
Brown Harris Stevens
Corcoran
Elliman
Halstead
Stribling
Theses are the brokers they should be working to name a few. All have extensive online presence.
My question is why exclusive listing? One would think you want an open listing so you are reaching the largest pool of buyers.
Posted by: Adam Dahill at October 28, 2009 4:02 PM in response to Broker Contract?
Hey DIBS. Did you see Case Schiller? Where is your boy BHO?
Posted by: Adam Dahill at October 27, 2009 11:16 AM in response to Open Thread
Problem is that commerical space is going to limit the number of banks that you can go to for financing. You are going to get stuck with a mixed-use loan which is at least a full percentage point higher than normal multi-unit properties.
-Adam Dahill
WCS LENDING
Posted by: Adam Dahill at October 26, 2009 3:20 PM in response to House of the Day: 291 8th Street
Because Brooklyn was a city when NYC absorbed it and Queens was a combination of many smaller towns and villages.
Posted by: Adam Dahill at October 23, 2009 12:59 PM in response to Mailing Addresses: BK vs QNS
Thanks for the referral and kind words Rick but I'm not with Approved any longer. You can reach me at my new office at 212-351-8020 or my new work email. adahill AT wcslending.com
Posted by: Adam Dahill at October 18, 2009 5:02 PM in response to Good Mortgage Broker Needed
The only difference btwn bank and broker compensation is that you see what a broker makes and you don't with the bank. I have acted as both a broker and a banker. It's the same thing regarding rates and fees.
Higher rates have more of a Premium or YSP (yield spread premium) case in point.
5% base price of 100.00
5.125% base price of 100.25
5.25% base price of 100.625
5.375% base price of 100.975
5.5% base price of 101.125
The above is just an example. So at 5% the broker or banker is not making any money/commission. They would probably offer you that 5% rate at a cost of 1pt to the client as that rate is not offering any yield or premium.
Same client can elect to take the 5.375% which nets that broker/banker 100.975 or .975% of the loan amount.
Different loan scenarios have different adjustments to rate. These adjustments are added up and affect the rate you get. Great example is the adjustment for a multi fam which is 1pt. You can choose to pay the 1pt and buy out the adjustment or have it built into the loan usually resulting in a higher rate of about .25%-.375% higher.
So the above rate schedule on a 2 unit property would be.
5% base price of 100.00 - 1 = 99
5.125% base price of 100.25 - 1 = 99.25
5.25% base price of 100.625 - 1 = 99.625
5.375% base price of 100.975 - 1 = 99.975
5.5% base price of 101.125 - = 100.125
So in order for the broker/bank to offer the client these rates they would need to charge 2pts to get to 5% or 1pt to get to 5.375%
I've worked for banks and they get paid the same as brokers for marking up the interest rates, you just don't see how much they make as opposed to brokers who need to show you.
The below link is the Loan Level Price Adjustment Matrix so you can see all the negative and positive adjustments to the price of the loan.
https://www.efanniemae.com/sf/refmaterials/llpa/pdf/llpamatrix.pdf
adamdahill AT gmail.com
Posted by: Adam Dahill at October 16, 2009 2:06 PM in response to How Are Mortgage Brokers Paid?
SAVE THE PINK HOUSE!!!
It's part of the neighborhood now. It would be missed.
Posted by: Adam Dahill at October 16, 2009 10:37 AM in response to Owner Takes Park Slope's Pink House Off Market
FTHB
first
time
home
buyer
Posted by: Adam Dahill at October 16, 2009 12:01 AM in response to Brooklyn Sales: Under a Million
Williamsburg condo looks like a solid deal. Great location and low taxes. great place for a FTHB and or couple with no kids.
Posted by: Adam Dahill at October 15, 2009 1:47 PM in response to Brooklyn Sales: Under a Million
Sorry guys. I have a cold and I'm putting myself to bed early tonight after consuming mass quantities of vitmain C.
Have a drink for me.
Posted by: Adam Dahill at October 15, 2009 11:09 AM in response to PARTY TONIGHT!
For 60k per year I would rather own. That's just me. If they were trying to save money 5k per month isn't a way to start.
Me thinks that people in this article aren't the types that really need to save anything. Writer for SNL????
Posted by: Adam Dahill at October 13, 2009 9:32 AM in response to To Own or to Rent?
Very much legal. The sellers are not waiving maintenance. They are paying it on your behalf for the alotted time period. On new construction condos the listing prices are recorded on the offering plan which is filed with the attorney general's office. If they were to reduce below those prices they would have to file an amendment to the intial offering plan.
Posted by: Adam Dahill at October 8, 2009 6:02 PM in response to Is This Even Legal?
It depends. CMU has a pretty good handle on it.
I would probably pro-rate everything based on square footage. Either that or percentage of downpayment if one partner comes to the table with more money. You could always convert to condo down the line as to divide the interest. That way one can sell without alot of trouble.
The wildcard is who would have access to the backyard? Everyone or just the garden unit owner.
Posted by: Adam Dahill at October 6, 2009 2:20 PM in response to Buying 3-Family w/ 2 Others
Don't buy the property as an LLC as it will severly limit the banks that you can obtain a mortgage from. Buy the property as three individuals and have a separate legal agreement divding the the property into percentage ownership. None of the large residential banks will lend to an LLC on a residential property. TIC is the way to go to hold title.
I don't get why people always insist on holding title as a corporation or LLC. Residential banks will always want you to personaly gurantee the mortgage and will deny the loan if title is held in a corp. The only pro I can see is if you have tenants and one pulls a slip and fall and sues the landlord. Other than that you are giving yourself a lot of hurdles when it comes to financing.
For commercial properties more than 4 units, yes, you need the LLC as commercial lenders will most likely require a corp or LLC
Posted by: Adam Dahill at October 6, 2009 10:35 AM in response to Buying 3-Family w/ 2 Others
You can't destroy the property if you obtain a mortgage on it. When you sign a mortgage you also sign and agree to maintain the property. If you buy it free and clear go right ahead and destroy it if you want.
If you have a mortgage and knock down the property the bank will call the loan due and you will need to pay off the mortgage at that time.
Posted by: Adam Dahill at October 5, 2009 9:30 AM in response to Bizarre Foreclosure Scenario
I love that house. Wish it would get fixed up.
I think Tyler Durten lives there making his soaps.
Posted by: Adam Dahill at October 1, 2009 6:04 PM in response to Thursday Blogwrap
Had a typo up there.
"FHA loans also have monthly MI payment of .55% annually, divided over 12 months for the 1st 5 years."
Posted by: Adam Dahill at October 1, 2009 3:40 PM in response to Downpayment as a Gift
HOLD UP PEOPLE.
landofenchantment is incorrect. Most banks if not all banks allow DP as a gift.
As per Fannie Mae rules if the Loan to Value is 80% or less the ENTIRE down payment can be used as a gift. If the LTV is over 80% the borrower needs to contribute 5% of their own funds. Fannie Mae will accept condos, coops, 1-4 units.
FHA loans have no restriction on DP gift and will let you finance 96.5% FHA will NOT do Coops, and if you want to do a condo with them it's tricky at best and the entire condo must be fha approved. FHA loans have 1.75% upfront premium that is financed into the loan amount. You do not pay for it is cash but the effective loan amount will be higher to cover the FHA premium. FHA loans also have monthly MI payment of .55 annually divided over 12 months for the 1st years.
Regarding Tax implications. I AM NOT AN ACCOUNTANT but banks do not report gifts to the IRS. A great deal of First Time Home Buyers use gifts as part of the down payments.
If the parents buy the property with you, you must qualify for the mortgage on your own. Their income can not used in qualifying for the loan or it will be considered an INV property and subject to INV limits and INV rates.
FHA loans will allow you use your parents as a Non-Occupying Co-Borrower without penalty. See above for FHA loans.
-Adam
Posted by: Adam Dahill at October 1, 2009 3:36 PM in response to Downpayment as a Gift
Tampopo is great. I had to watch it back in art school... yes I went to art school.
Damnn... now I want noodles for lunch.
Posted by: Adam Dahill at September 29, 2009 11:41 AM in response to Open Thread
15th
Posted by: Adam Dahill at September 29, 2009 9:45 AM in response to Open Thread
I just put the 16th into my calendar. I'm a Libra so this party is for MEEEEEEEE!!!!
I know I've be absent lately. Trying to post more, but so bogged down in a ton of stuff. Switched firms, and then the new firm just moved offices, I'm renovating my bathroom, planning a wedding with the Mrs, been out of town every weekend since May, etc... Looking forward to the Fall.
Is the what gone for good? Does he spend all his time on his own blog now?
Posted by: Adam Dahill at September 29, 2009 9:44 AM in response to Open Thread
DIBS. Did you see Case Shiller up 1.2%? Only 2 out of 20 metro areas had declines nationwide. Where is your friend B-Stones Half Off?
Posted by: Adam Dahill at September 29, 2009 9:23 AM in response to Open Thread
Not sure what you are looking for specifically but you can send me an email and we can schedule a time to talk.
adamdahill at gmail.com
Posted by: Adam Dahill at September 24, 2009 9:17 AM in response to Pre-approval for investment prop
ahemm. :)
Posted by: Adam Dahill at September 23, 2009 7:50 PM in response to Co-op Refinance
Your lender should have a list of their approved contractors or ask the FHA 203k consultant.
Posted by: Adam Dahill at September 23, 2009 7:49 PM in response to General Contractor
Be carefull with HSBC. If yuo ever need/decide to refinance they will not allow the assignment of the mortgage (CEMA) to another bank and you are basically forced to use them or pay the mortgage tax again.
I worked for a direct lender for years and I recently left for another firm that banks and brokers loans. I'm brokering more loans now than banking as it's actually an easier process I've found and I have more options. It was really hard to leave working for a direct lender but I got tired of the bending over backwards that they make you do.
Are you getting a Jumbo loan? 5.375% sounds a little high for a true conforming loan. Condo? Coop? Multi-Fam? These are all things to consider when looking for a lender.
Posted by: Adam Dahill at September 23, 2009 7:46 PM in response to Recent Mortgage Experiences?
That sucks. HSBC is also one of those nasty banks that don't assign mortgages forcing you to refi with them or pay all that mortgage tax again. It goes against the free market as they don't have to compete and your are subject to their terms.
I did an interview with a reporter from bloomberg news a couple months back about this with HSBC but I guess it never was published because I have yet to see it in print.
Posted by: Adam Dahill at September 22, 2009 5:50 PM in response to Bad Mortgage Lending Practices?
Those are about right. You can go to madisontitle.com and under calculators they have a title fee calculator.
Patriot Act- Thanks to your friend GWB all loans applicants have to be scrubbed against the Patriot Search now.
Fulltwist- You have a Coop. Coop's don't have title because Coops are not real property but shares in the corporation that owns the building. Coops have drastically lower closing costs than condos and houses.
Unfortunately none of theses fees are "garbage" That said the above are estimates.. you will not have the exact figures until the closing date.
You could probably not have to pay the POA fees unless you or your spouse will not be present and one will be signing on behalf of the other.
Posted by: Adam Dahill at September 22, 2009 5:46 PM in response to Title Fee/Insurance Bill - Help
HSBC communityworks
*Borrowers income must be at or below 80% of the median area income or the property must be located in a designated census tract
Posted by: Adam Dahill at September 15, 2009 9:08 AM in response to Conforming or Jumbo?
417k is the conforming limit
729k is the conforming jumbo limit
conforming jumbos are slightly higher rates.
Posted by: Adam Dahill at September 9, 2009 12:26 PM in response to Advice on Mortgage Rate
Very few banks will lend on Coops with less than 6 units. Of those banks that will they will only do it for properties in the 5 boroughs.
They usually require 2 years financials along with a proposed budget by an accountant as well as the master insurance policy for the building.
I you email me the address I can check to see if it's on our approved coop list.
adamdahill@gmail.com
Posted by: Adam Dahill at August 26, 2009 4:46 PM in response to Coop refinancing requirements
Just heard back from my source and they said that he should not be paid at all on the draws and that he has already been paid in full. Which lender are you using? The guys I use are not well known to the layperson but they do a lot of 203k loans through out the country through wholesale channels.
It may be different but he confirmed my orginal thought that they don't get additional monies throughout the process.
Posted by: Adam Dahill at August 26, 2009 3:10 PM in response to 203k loan draw fees.
There are supposed to be "Less Than" symbols in front of the dollar amounts but they were screwing up the post and the lat dollar amount has a "Greater Than" symbol in front of it.
Posted by: Adam Dahill at August 26, 2009 1:56 PM in response to 203k loan draw fees.
Responses to Author's Forum Comments
Just be careful if you go the 203k route. It won't cover all the repairs and there is a ton of red tape with them. I've heard and been involved with some horror stories with them. That is why I am for the moment passing on these types of deals.
Posted by: Adam Dahill at November 19, 2009 6:00 PM in response to Habitable? Financing? Time-Bomb?
Thanks Adam.
I'll look into 203k with caution.
Posted by: brownlime at November 19, 2009 6:09 PM in response to Habitable? Financing? Time-Bomb?
I don't think 100k per floor may be a good estimate because you may find a lot of structural work, and for what you say not only you may need to build the inside (water damage is very pervasive, you might find mold everywhere, may end up having to re-do absolutely every wall and every floor) and extensive outside repairs, which can be really expensive.
On the other hand if you need a mortgage and won't find lenders for this place (at a reasonable rate) I guess you'll have to continue looking... if so, remember that a place where you can live while it's being renovated, while painful, may be cheaper overall (you won't have to pay rent while paying mortgage, your insurance will be cheaper if you live in the building etc.)
Posted by: Ray at November 19, 2009 9:35 PM in response to Habitable? Financing? Time-Bomb?
Ray,
Thanks for the words of caution.
They confirm my thoughts: The discount on this brownstone should be great enough to cover the not-unlikely problems that may arise, including structural problems. (Assuming I could even obtain financing).
Posted by: brownlime at November 19, 2009 10:30 PM in response to Habitable? Financing? Time-Bomb?
From what you're describing, it's priced too high (way too high), unless it's in prime PS. (Your post-reno comps make me think it's not.) Not only will you have the costs of repairs, but also the time and carrying costs while you obtain the necessary permits. If you've never done a substantial renovation, there's a learning curve. Everything may go great, without a hitch, and entirely within budget, but I wouldn't rely on that. Building priced too high, renovation estimates priced too low.
Posted by: vinca at November 20, 2009 12:38 AM in response to Habitable? Financing? Time-Bomb?
Ah what a man of such little faith you are daveinbedsty! I know people like you just over a year ago were saying home prices could never go down in Brooklyn. I know it is hard to swallow your pride and admit being dumb.
Posted by: hannible at November 20, 2009 9:44 AM in response to Habitable? Financing? Time-Bomb?
Vinca,
Thanks for the input.
I agree that the building has a potential to create many costly surprises. As you say: "Everything may go great, without a hitch, and entirely within budget, but I wouldn't rely on that."
Posted by: brownlime at November 20, 2009 10:26 AM in response to Habitable? Financing? Time-Bomb?
Brownlime - you should talk to a good mortgage broker. A lot of banks used to lend on properties like this (my house was virtually uninhabitable when I bought it, and I had no issues with financing), but lending standards have changed in the last 2 years, so you may need to put more money down as the assessed value will err on the low side. In any event, if you buy the house in the low/mid 900's you would be looking at a conforming mortgage ($729K for single family, $934 for 2 family), which makes life easier.
You definitely should get in there with a contractor prior to making an offer to get a better sense of the actual condition, and price it accordingly. The estimates you've been given are reasonable ballparks, $100k per floor to gut, rewire, replumb, and refinish, but you'll need to throw in $50-70K for replacing all the roof, roof joists, etc. The only real unknown will be damage to the joists on the floors below, and you won't know that until you get in there with a crew.
In short, talk to a good broker and don't rely on anything you read on this forum.
Posted by: wyckoff at November 20, 2009 1:02 PM in response to Habitable? Financing? Time-Bomb?
Saw the house. Its in central park slope between 5th and 6th ave on 2d street, closer to 6th avenue. 20 foot wide brownstone in ps 321. nice block. thought about it but don't have stamina for a building in that rough shape. could be a bargain, though. i'd get an inspector in there to give you a structural report. The seller should be able to get the electricity going before inspection by the bank, and then you may get it judged habitable (although the seller is obviously incapable of doing anything if he/she let it be shown in this condition -- talk to seller's broker). once financed, the most basic of gut renos should cost around $300-400K. if you buy for less than $1M, that should be sufficient cushion.
Posted by: NeedaPatio at November 20, 2009 2:51 PM in response to Habitable? Financing? Time-Bomb?
Thanks wyckoff and NeedaPatio.
Wyckoff- It's good to hear that financing might be possible. A friend told me he got regular financing on the home he bought this year even though the home was of questionable habitability. I also like this advice you gave: "don't rely on anything you read on this forum." Made me laugh. (I wouldn't rely on it, but it's helpful and informative nevertheless.)
But why do you suggest getting a contractor before making an offer? Before I hire a contractor, why not see if the buyer would accept my offer. My offer wouldn't be binding. Otherwise, I'd be wasting my money paying the contractor. Right?
NeedaPatio- You are correct. That's the house I'm referring to. And I think you're also correct that the seller is incapable of doing anything such as getting the electricity working. And you're also right that it would take a lot of stamina to have this place renovated. It would be a big project.
Posted by: Pigeon at November 20, 2009 4:31 PM in response to Habitable? Financing? Time-Bomb?
I don't hate these. Feels very north west coast to me.
Posted by: Adam Dahill at November 20, 2009 12:13 PM in response to Checking In On 660 Bergen Street