Buying Basics

If you’re a first time home buyer, one of the first things you should look at is how much you can qualify for. Unless you are purchasing all cash, it’s pretty normal to start your home search with getting a pre-approval from the bank. Please contact us for assistance with that, we’d be happy to help guide you in that direction.

The good news is that it’s generally easier to qualify to get a mortgage than it is to meet the typical rental requirements in nyc.

For example, you might need a 650+ FICO score to secure an apartment rental wheras it’s possible we can get you approved for an FHA loan with a score as low as 580 FICO.

We are not currently a residential lender, however, and so we would put you in contact with a Licensed Mortgage Officer so we can sort out where you stand.

If using a mortgage, you want to get an idea of how much you can qualify for.

After you know how much you qualify for, the next step might be to see if you qualify for a Down Payment Assistance program, where we might be able to find you someone who can assist with a grant of some kind to go towards your down payment.

After that, you might consider whether you’re looking for a Condo, Co-op, House, Multiifamily, Commercial, or Land - depending on your needs. Contact us so we can chat about all that with you.

We will take you on showings, with no obligation whatsoever, and we can help you find the property you love the most.

Currently, it is typical that Buyers are not paying any broker fees in nyc, and although the market may change - currently, we’re seeing that it remains as such. So as a buyer, you, more likely than not, will have no broker fee whatsoever in order to have us professionally represent you.

Once you find the property you like, you’ll work with your broker to put an offer in! We’ll go over, in detail, strategy and important elements such as contigencies and will do our best to secure you the best possible deal.

We will guide you through the different variables at this stage including inspections and appraisals.

After your offer is accepted, we go to the contract stage and the attorneys on the deal will negotiate the final terms of the contract before you sign anything. We will help you select the right attorney that will have the highest standards in getting this done and protecting your purchase.

Selling Basics

It is important that you choose a broker that will take representing you seriously. After all, this is a big investment and you don’t want to trust someone who is going to fall asleep on the job.

Reach out to us and one of our brokers will happy to chat with you and see if we’re a good fit.

We will also discuss any other complex potentials such as potential tax obligations with you and strategies such as the 1031 Exchange.

We are not, however, accountants nor attorneys - and recommend now and will continue to recommend the involvement and consultation with those professionals.

We will assist you in selecting those professionals, if you should need them.

Once we go over what it looks like to list your home or investment property with us, we will begin to professional advertise and bring that property to market in order to effectively find a proper buyer and complete the sale.

We will take care of photography and there’s not much for you to do in order to prepare for the sale. Our brokers will discuss with you any potentials such as the pros and cons of renovating or anything of the sort.

For photography purposes, it is not completely necessary that the property be absolutely clean and photo ready. Our NY Times photographer will do an excellent job in using their expertise in capturing your properties in the best possible light which will include assistance with lighting and digital decluttering, if necessary.

We will market and do our best to convince buyers to come see the property! During showings, there’s also not much for you to do and our brokers will communicate clearly what those showings should look like so there are no surprises. This is especially important in delicate situations such as when a property is occupied with a tenant or when similar discretion and professionalism is required.

We also regularly work with clientele requiring varying levels of discretion and confidentiality and very well understand how to navigate those situations.

We can also elect not to discuss anything with the media or press, if requested.

Once an offer comes in, your broker will present that offer to you and any other offers and discuss strategies with you.

We will negotiate and otherwise do whatever is necessary in order to secure you the best possible deal.

After an offer is accepted, it’s time to bring in the attorneys and they will negotiate the final terms of the agreement prior to you being locked into the sale.

It is incredibly important that an excellent attorney is chosen to protect you in this, and we will assist you in choosing that attorney.

Once the contracts are signed, we will remain with you every step of the way until the deal has closed. We do not fall asleep on the job at any point and allow deals to die.

You can rest assured we will be present and at attention throughout the transaction.

Investing Basics

There are endless ways to invest in Real Estate. Please contact us for in depth analysis of your specific situation.

Here are the basics!

Fix and Flip - Typically you would want to purchase a below market property that has potential for repairing at a cost that would bring its total value under the ARV, or After Repair Value. The difference between the purchase price + your renovation expenses and the ARV = your profit margin.

These are complicated deals because you cannot force them. If the property you purchase does not have a sufficient buffer when you are considering variables such as fees, taxes, holding costs, etc, you could very easily end up with little to no profit or even in a situation where you lose money.

It is extraordinarily important that you have a good broker assisting you on these deals.

When “flipping” the property, you are essentially selling it at market value. What this means is that if a property is purchased at $400k, with $100k spent in renovation, and sold at $600k, your profit margin would be $100k.

Again, it’s highly important that we consider all expenses including fees, taxes, permits, violations, etc - in order to make sure your investment is a solid one.

Buy and Hold

This is a strategy where you are purchasing a property and very simply, holding onto it. Value may come from a combination of potentially placing a tenant(s) inside the unit(s) and potential* appreciation of the property.

Professional Speculation is a form of gambling, however, and it is highly important that it is understood that no one can predict the market. With this in mind, there are specific strategies that investors use in order to maximize earnings and minimize losses in most market conditions.

Please contact us so we can discuss further.

Rental Income

Self explanatory and having been around since the beginning of time, rental income is one of the most reliable and well understood ways of generating wealth.

There are important elements to have thorough understanding of before venturing in this direction, however, so it’s important you’re choosing the correct broker to assist you.

If you’re planning on having tenants and becoming a Landlord or purchasing properties for that purpose, it is important that we consider elements and expenses such as:

Property Management
Pest Control
Vacancy Allowances
Renovations
Repairs
Marketing Costs
Mortgages
Taxes
Maintenance Costs, if applicable
Common Charges, if applicable
Association fees, if applicable
NYC Rental Laws

We will assist you with all aspects of structuring your investments for maximum profitability.

Real Estate Investing Formulas

This section of our website will be evolving soon. It will consist of a brief and general description of some of the formulas we use in order to best strategize and make decisions and help you make decisions on what is a good deal and what is not.

Here are some examples in the meantime:

DSCR - Debt Service Coverage Ratio
Cap Rate - Capitalization Rate
CoC - Cash on Cash Return
Rent to Income Ratio
RoE - Return on Equity
LTV - Loan to Value
ARV - After Repair Value
GRM - Gross Rent Multiplier
ROI - Return on Investment
GOI - Gross Operating Income
GSI - Gross Scheduled Income
CFBT - Cash Flow Before Tax
OER - Operating Expense Ratio
BER - Break Even Ratio
CFAT - Cash Flow After Tax
IRR - Internal Rate of Return
NPV - Net Present Value
FV - Future Value
PV - Present Value
Cash on Cash Yield

As Licensed Real Estate Professionals and not licensed in these other areas - In addition to us providing some assistance with these calculations, it is always recommended that you consult with your licensed legal, financial, accounting, and tax professionals.

Down Payment Assistance Resources

Not too many people know about this one! Did you know that there are Grants and other similar money available for you, if you qualify, that can, potentially, never have to be paid back?

We will help guide you in the right direction in order to see if you can qualify for any of these. We are not currently conducting Residential Lending and so you will be speaking to a Licensed Mortgage Officer for these. Please always make sure to consult your legal, tax, accounting, and financial professionals before making any decisions.

There are programs available at the Federal, State, City, and local levels. There are bank programs available as well as some non-profit community based programs.

If you qualify, these programs might be able to provide you help with your Down Payment so you can afford to purchase the property of your liking.

It is often beneficial to pair them up with other strategic choices. For example, an FHA mortgage for a First Time Home Buyer, owner occupied, might require only 3.5% down. You might be able to secure down payment assitance that can provide an additional 2% down, as an example.

Again, we are not currently offering Residential Lending, so you will be speaking with a Licensed Mortgage Officer from a bank.

Please be sure to verify any and all information with the Licensed Mortgage Officer.

1031 Exchange Basics

Working hand in hand with your attorney and your 1031 Qualified Intermediary, we will take the lead in your transaction to make sure everything is running smoothly. We will assist you in selecting these professionals as it is important to select the best ones available.

In a 1031 Exchange, you will defer Capital Gains taxes by exchanging property that you are selling for like-kind property that you are purchasing.

The strategy behind this is that you can temporarily avoid, or defer, these taxes so that you can continue to improve your properties, portfolio, and your community.

These tax “savings” can be strategically employed to assist in scaling the size and speed of your portfolio growth.

Types of Mortgages and Financing

This section will be a work in progress as we look to organize these basics for you. Please reach out to us as the ideal thing to do is simply to have you chat with a Licensed Mortgage Officer with no obligation of any kind.

Here are some basics:

Conventional Loans
Jumbo Loans
Fixed Rate
Adjustable Rate
Line of Credit
HELOC
FHA
VA
Blanket
Construction
USDA
Interest Only
Piggyback
Conforming
Non-Conforming
Balloon
Second
FHA 203(k)
Interest Only
ITIN
Portfolio
Physician’s
Professional’s
Reverse

We want you to make an informed decision so please drop us a line so we can help you connect with a Licensed Mortgage Officer.

Co-op Basics

A co-op is very similar to a Condo except there is no deed when you purchase. You receive, instead, stocks and a proprietary lease.

Taxes are included in your maintanence costs and the building typically pays it all together and allocates a specific percentage for that along with expenses and general maintenance to all shareholders appropriate to their amount of shares.

Co-ops are very common in NYC and typically have lower price points than condo and sometimes a few more restrictions.

There will usually be a co-op board approval required and we will prepare you for that and organize everything professionally for you.

Co-op unit purchases that might not require a board approval might be if it is a Sponsor sale or perhaps if they are unsold shares.

Condo Basics

Who doesn’t love a nice condo? Condos are everywhere in NYC and they are the purchase of choice, sometimes, when deciding between co-ops and condos - budget allowing.

This is because condos tend to have a slightly higher value/price point and have less restrictions including such elements as subletting and pets.

You receive a proper deed at closing and overall the experience is similar to owning a house. Taxes are paid seperately from the common charges and may or may not be included in your monthly mortgage payment, depending on your situation.

What happens during an Inspection?

We are here to protect you every step of the way in your transaction. We will connect you with and help you choose the best possible Licensed Inspector for your situation. We want someone that is going to be thorough and do an excellent job and help us, as a team, look at the intel necessary to help you strategize the direction you want to go in.

We can and often also use this intel to further negotiations one way or another depending on which side of the transaction you might be on - buyer or seller.

What happens during an Appraisal?

A typical appraisal happens fairly quickly and sometimes doesn’t even require a visit inside the property. An appraisal is usually ordered by the bank, although sometimes paid by you, in order to get a Licensed Appraisal’s objective opinion of the value of the property.

They compare the subject property with recently sold comparables in the area and come up with a report, similar to the Inspector’s report, explaining in detail their opinion.

Banks use this information to decide if a mortgage is okay to move forward on or if an adjustment is necessary.

When the terms “The appraisal came back low! or high!” are used, this typically means that the Appraiser’s opinion was higher or lower than the agreed upon contract price and therefore we then have to act strategically to successfully move forward in a way that protects our client.

This may or may not involve further negotiations, depending on your specific situation

Want to chat further?

Drop us a line at info@thefontgroup.com

We are hired sharks, here to professionally represent and protect you, but we’re also the kindest and most sociable group of people you’ll ever meet. Let’s chat! No obligation or silly commitments necessary or anything of the sort.

Contact us here!