What is Flip Tax?

As a Real Estate Broker in Queen, New York I’ve helped numerous families and first-time home buyers purchase a co-op. This type of real estate transaction requires a lot of attention to detail. In the video above I break down one of those details.

What is a Flip Tax?

A flip tax is a fee that is associated with the selling of a cooperative (co-op) unit. It is a fee charged by the co-op board upon the sale of a property. It can range in price from co-op to co-op. It could be a percentage of your profit or a flat fee per share. The fee is typically paid by the seller of the co-op. Not every co-op board requires a flip tax. 

Pro’s of a Flip Tax: 

Keeps building’s reserves high, which allows for a steady maintenance fee. 

Cons of a Flip Tax: 

It has to be paid and could eat up your profits. 

When purchasing a co-op with a large flip tax it is wise to evaluate how long you plan on keeping this investment. Does the building allow unlimited sublet? A large flip tax can really eat into your profit if you are planning on using your profits to upsize in the future.

What Are The New NYC Rental Laws? [Explained]

If you’re a New Yorker, chances are you’ve heard something about the recent change in NYC Rental Laws. The new rules effect both renters AND landlords – and they are applicable to all residential rental units. What are the new laws? Keep reading about the New York State Housing Stability and Tenant Protection Act of 2019.

• The new law applies to all residential rental units, including rent regulated and free market, co-ops and condo units.

• No deposit or advance can exceed one month’s rent.

• Within 14 days of tenant vacating premises, landlords must return security deposit and if retaining any portion thereof, must provide an itemized statement and reason within the time period.

• Where a tenant vacates a property in violation of terms of lease, the landlord must mitigate damages by renting premises.

• It is unlawful to refuse to rent to a prospective tenant because he/she is or was involved in a prior landlord/tenant summary proceeding.

• Fees charged for credit and background check (“Report”) are limited to its actual cost or $20.00, whichever is less.  Tenant must be given a copy of the Report and actual receipt showing cost.

• If tenant gives the landlord a Report conducted in last 30 days, fees must be waived.

• Eliminates vacancy bonuses.

• Cost of renovations can only be passed on to tenants for 15 years.

• Landlords can only pass on to tenants 2% of the construction cost of Major Capital Improvements (MCI).

• Judges can push back an eviction for up to 1 year to allow a tenant to find suitable living arrangements in the same neighborhood at a similar rent.

• If a landlord uses force to evict a tenant or illegally locks tenant out, the landlord can be charged with a misdemeanor crime of unlawful eviction and charged with a civil penalty of $10,000.00 per violation.

• 51% of tenants in a rent-stabilized apartment must agree to a tenant or co-op conversion.

• Landlords cannot charge a late payment fee higher than $50.00.

• If a landlord plans on raising rent over 5% or not renewing a lease, the tenant must be given at least one month’s notice. 

Now these are just a list of the highlights within the new rules. We highly recommend consulting with an attorney regarding specific details – especially if you feel your landlord is in violation.

Are you looking for a rental in Queens, NY? Click Here to View a List.

How To Save To Buy A Home in Your 20s

In recent years, the average age of first-time home buyers has become lower and lower. With interest rates at record length lows, and more awareness being built around financial literacy and wealth building, we decided to share a few tips for those of you in your 20s looking to own real estate.

Regardless of your annual income, it is very possible to strategize and save enough money to become a home owner – which opens the doors to becoming a real estate investor!

In this video Queens, NY Real Estate Broker Alexander Fazelani breaks down 5 strategic ways to begin building wealth through real estate in your 20's - a time when many of us are not necessarily at the income bracket we hope to be in to consider purchasing a home.

Looking to purchase a home in the next 3 months to 24 months? View homes for sale today and familiarize yourself with the market! As always, we are here to be a resource for you and your network. Feel free to call us at 347-707-3098 or 917-915-4417 (or email info@iarealtygroup.com) with your real estate questions. We’re happy to help!

Finding Queens | Episode #2: El Coyote Restaurant Forest Hills, NY

Are you a fan of Mexican Cuisine? Are you visiting or living in Forest Hills, NY? Well then we recommend you try out El Coyote Restaurant on Austin Street. Now we know they aren’t the only place in the area, BUT it’s definitely one of the best places!

In the second episode of our new Youtube Video Series “Finding Queens”, Licensed Real Estate Broker Alexander Fazelani of Ian Alexander Realty Group shares his favorite things about El Coyote Restaurant in Forest Hills, NY. A great restaurant for Mexican Cuisine in Queens, New York.

El Coyote is located at 70-09 Austin St 2nd Floor, Forest Hills, NY 11375 and you can check out there website here: https://elcoyoteny.com/

Queens First-Time Home Buyers: To Buy Now or Later?

Are You Saving Up Money To Become a First-time Home Owner?

The idea of saving up for a larger down payment in hopes of lowering your monthly payment seems like a great idea…at first glance. We want to share the TRUTH with you and we couldn’t think of anyone better to break it down than Eric Braun (@notyouraveragelender) from Contour Mortgage. As a mortgage professional in New York, he’s constantly striving to share helpful and empowering information about real estate and financing with his community.

“…spend $63,600

because you thought it would be better to wait.”

Here’s what he had to say about the topic:

“A lot of people when considering to buy their first home say they are, ‘trying to save more money to put down, so I can have a lower monthly payment.’ Which I understand the thought process on, BUT please look at this example...

Home Purchase Scenario #1:

📅BUYING NOW:
Purchase Price: $500,000
3% Down: $15,000
Interest Rate: 4.5%
Monthly Payment: $2,457 (principle and interest).

Home Purchase Scenario #1:

📈BUYING LATER:
Purchase Price: $510,000 (2% appreciation which is conservative)
3% Down + $24,000= $39,000 (that is assuming you can save $2,000 a month for a year)
Interest Rate: 5.25%
Monthly Payment: $2,567 (principle and interest)

BREAKING IT DOWN:

🔎As you can see, even with saving an EXTRA $24,000 (assuming you can in 12 months) once you factor in interest rates rising and property values appreciating (at 2% mind you) your monthly payment is still $110 more!!!!

📈$110 a month over 30 years is $39,600.

🏦 This is not even to mention another 12 months of renting.

Breaking It Down (If You’re Currently Renting):

Let’s assume your current rent is $2,000 a month. Multiply that by another 12 months, and that will equal another $24,000 handed over to your landlord.🤴💸 That is a whopping $63,600 when you combined those two numbers because you thought it would be better to wait.

🤔Please take note of this and reconsider waiting.”

Now, when Eric shared this on Facebook he did make a note to mention, “P.S. This is NOT a sales tactic. My business will be just fine if you wait a year.”

Here at Ian Alexander Realty Group, we often hear the same logic from first-time home buyers who are waiting to take the home ownership plunge. Much like Eric, we understand that purchasing a home is one of the biggest investments you may make in your lifetime and it’s important to do it when you’re ready.

One thing we can say for sure is that Eric’s example just makes mathematical sense, and we can’t argue with math! If you’re unsure about whether or not you have “enough” of a down payment, we highly recommend speaking with a mortgage professional sooner rather than later. They really can guide you financially and help you make an educated decision.

Contrary to popular misconceptions about real estate professionals, it’s really in our best interest to help our clients SAVE MONEY! After all, professionals like Eric Braun and our team are in it for the long-haul and this means we’re after building life-long relationships with our clients. Nothing says “we care” like saving you $63,600! Right?