I got an email from Kelly Kreth who just landed a primo tv client. Here's the trailer.
NEW YORK, NY - Sparkway Media and Sokol Media announce their first joint full-length television production, NY Residential TV. The weekly, hour-long show will debut on CW11 at 9am.
Experienced hosts Cathy Hobbs and Jeff Appel bring eager couples, interested viewers, brokers and real estate experts together as they scan all five boroughs of New York City for the perfect home. Location and price all come into play as Hobbs and Appel give tips and tricks of the trade, ranging from the latest trends to current market values on city properties.
With real estate television programming booming, NY Residential TV sets itself apart by catering to a regional market as well as being multi-faceted in ways other shows are not. Aside from traditional house hunting, showcasing properties and open houses, NY Residential TV will also be a program that assists those who have found a home, decorate; those who need to flip a home, renovate; and those who are looking to buy or sell, negotiate. Hobbs and Appel will show viewers how to find foreclosures, as well as the best way to make your new home "green." In addition the show will include segments on new gadgets, how to “go green,” open houses and new development launch events in the area.
While NY Residential TV can stand on its content alone, Hobbs and Appel bring credibility and charisma to the show. Cathy Hobbs, an Emmy-award winning television journalist and interior designer who was just nominated for this year's annual DIFFA "Dining by Design" Event perfectly complements Jeff Appel, a real estate industry expert and lecturer. The two bring help and humor together in a way that's educational and entertaining.
NY Residential TV will prove to be a powerful medium for sponsors--such as builders, developers, agents and financers--that align with the show's mission of providing great content while showcasing great properties.
In addition to traditional TV spot ads, NY Residential TV's real estate and development sponsors will take viewers on guided tours of homes that their companies are offering for sale. This is an innovative and experimental approach to marrying the right advertisers with quality targeted programming.
For more information on NY Residential TV or other Sparkway programming, please visit: NYResidentialTV.com or www.sparkway.com For interviews or any other press inquiries, please contact Kelly Kreth at Kreth Communications: 201-417-8691 or KKreth@KrethCommunications.com
Propertyshark has rolled out its monthly pdf foreclosure report for the month of April and it is pretty much more of the same.
Queens still reigns supreme with 58% of New York City’s foreclosures, right behind it is Brooklyn and Staten Island while Manahttan and the Bronx have been able to weather the foreclosure storm with only a combined 11% of the month of April.
As I have stated before, if you have the fortitude, the resources and a plan, you can probably find a lot of investment opportunities out there.
On the flipside, it probably sucks ass to be a seller in those neighborhoods or to be a broker.
So when will this all bottom out? Who knows. But it is till going to hurt.
Craigslist scams targeting renters desperate for affordable apartments BY MATT LYSIAK DAILY NEWS WRITER
Monday, February 11th 2008, 4:00 AM
The apartment sounded too good to be true.
A fully furnished two-bedroom with a balcony in Bay Ridge, Brooklyn, going for $950 instead of the $2,200 it would normally fetch because of the tenant's sudden job transfer.
The catch: You have to take it sight unseen - and send a security deposit.
The bogus rental was even more of a steal than unsuspecting would-be tenants thought, part of a growing number of scams cooked up to profit from gullible people desperate for affordable housing in the city, according to Internet fraud and security expert Craig Solomon.
"It is becoming more common because New York apartments have become such a hot commodity," said Solomon. "People are so desperate that they aren't always thinking clearly."
This particular listing on Craigslist.org, the go-to site for frazzled city dwellers, featured appealing photos and a quick response to inquiries from a scam artist who used the alias "JoAnn Rinaggio" and a tale about being transferred to North Carolina.
"I will like to tell you that we are doing this based on trust and I would like you to trust me as I trust you. ... You can see the beautiful apartment in the pictures, but not in person yet," she writes, asking prospective tenants to wire a $550 security deposit and promising a return envelope with the apartment keys.
According to Solomon, "countless" victims fell for this ruse, sent money, never heard back from "Rinaggio" and learned the hard way that the address for the dream apartment, 8235 Fourth Ave., also was bogus.
Documents obtained by the Daily News show the phony name was used by a convicted serial rubber-check writer, JoAnne Smith, who was convicted nine times between 1986 and 2004 for fake checks totaling $20,000.
"Craigslist is made to sell local, and whenever anyone from out of state is involved, red flags should immediately go up," said Solomon. "Avoiding the scam is simple. Try to always do business face-to-face, and never, ever, wire money anywhere."
This is also the advice posted under "avoiding scams and fraud" by Craigslist on its Web site, which urges users not to wire money, give out personal financial information or respond to any offers requiring you to provide escrow money.
"Know that only a scammer will 'guarantee' your transaction," Craigslist warns.
Beth Ann Bovino, a senior economist at Standard & Poor's, found herself caught up in such a scam when someone posted her address and photos of it as a bargain rental.
"Rents are higher and people are in real need of an affordable place to live," said Bovino. "It is sad to say, but these kinds of scams appeal to desperation and greed."
"People need to remember that if it sounds too good to be true, it probably is."
Here's how it works folks. Never ever give put up the money until you are approved and have a signed lease.
The process is very simple, you pay for the processing fee for the credit check. If you are rejected, you look for another apartment. If you are accepted, then you prepare the checks for the lease signing which will be usually 3 months of rent in certified checks. This covers the safety deposit, first and last month's rent. And the broker's check, if you have used one.
You bring the checks to the lease signing. Once the lease is approved by all parties and signed. Then the checks are released.
Co-ops and condos, the process is different since the board will want to see everything up front in the board package. So you should make copies of the checks and have a signed agreement that will return the checks if you are rejected or if you find another place during the review process. As we all know, it could take a week or month for the board to make a decision. So you should be prepared to be rejected and look for a back up.
Preston over at the Observer sent me this link which I sounded like a complete joke.
Developers Vornado Realty Trust and the Related Companies are grasping for options to keep alive a multi-billion dollar redo of Penn Station and related real estate development, as they have asked the city and state to back a loan to build a new Madison Square Garden in the Farley Post Office across Eight Avenue.
The proposal is intended to lure the Garden back to the table, as the company, led by Chairman James Dolan, pulled out of the larger plan in March. The state is considering the offer as one of many options for the project, a state official confirmed.
In this option, the state and city could be saddled with the cost of the arena—said to be in the range of $900 million to $1 billion—should the larger redo of Penn Station ultimately fall apart.
Gov. David Paterson said spending in the $121.7 billion state budget must be re-examined and lowered in the coming weeks, in light of dramatic drops in tax payments from major Wall Street banks.
Whether legislators in both political parties will take those actions this year remains to be seen, given that all 212 of them are up for election in November. In fact, Senate Majority Leader Joseph Bruno (R-Brunswick) candidly remarked that his goal for the legislation session was "to get out of session."
Paterson repeated calls for fiscal restraint that he started making before the budget passed the state Legislature on April 10, during an event in Troy on Monday. The budget is balanced, but Paterson has said he wants to identify permanent spending cuts now that will reduce a potential $4 billion deficit for the 2009-10 budget.
"We can't afford to be rolling the dice on where the economy is going," Paterson said.
In other words: NO ONE HAS ANY F**KING MONEY!
It appears that even former baseball stars are not immune to foreclosure.
Former baseball star Jose Canseco has Calif. home foreclosed Thu May 1, 10:46 PM ET
Jose Canseco, the former AL MVP who made millions during his baseball career, has had his home foreclosed.
Canseco told the syndicated TV show "Inside Edition" that he walked away from his $2.5 million, 7,300-square foot home in suburban Encino because it didn't make sense to continue making payments.
"I do have a judgment on my home and it to me is very strange because it didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else," he said in an interview that aired Thursday.
"You know my life, this financial thing, is a very complicated issue. Obviously, when you make all that money, people think, `OK, let's assume it is $35 million.' People have to understand that $35 million, you're paying the government 41 percent. That leaves you with about $17 or $18 million, not even. Then you're taking care of your whole family."
He added that a couple of divorces cost him $7 million or $8 million.
Canseco said his top earnings year was $6 million and that his financial situation obviously is different than most people who are losing their homes.
"What about other families that we're hearing on TV, that they're saying, `We have nowhere else to go,'" he said. "I mean, that is amazing. I've got books (he's put out two expose-type books on drug use in baseball), we're now trying to produce the movie to both.
"Like I said, my situation was a little more different than most. I decided to just let it (the house) go, but in most cases and most families, they have nowhere else to go."
Calls by The Associated Press to Canseco and to his attorney, Greg Emerson, were not immediately returned.
The lesson here is simple. Do your due diligence and make sure you have the money to cover your payments.
Sexton and NYU should heed 6:10 and on of this clip.
I heard on the radio that NYU was jacking up tuition and read on Gothamist the full details of Sexton’s grand tuition hike of 6 % which tops out to 50K a year.
Sexton’s explanation for this fiscal attack on student’s pocket books is the following.
"Many colleges and universities against which we compete to attract faculty and students have endowment resources per student many times larger," he wrote in an e-mail to the faculty.
The school is not insensitive to the financial strain. It plans a 12 percent financial aid boost for the neediest students.
But that's still not as much help as other private colleges, such as Harvard, are giving out. The Ivy League school plans to actually cut tuition for low-income students.
"We are not in a position to match these institutions, as much as we might wish that all endowments are created equal," Sexton wrote. The cost of NYU certainly puts it in league with Ivy-level tuition. Columbia University charges students $35,516, while Harvard charges $31,456.
The reason why the NYU endowment is so low is probably because he has been blowing all the money like a drunken sailor on shore leave.
Since taking over the university’s presidency seven years ago, Sexton has raised $2.5 billion—which amounts to a million dollars a day. Rather than reserving it for the school’s endowment, he’s spent the money aggressively, going on another hiring spree to increase the university’s faculty by almost 20 percent. He is intent on growing the New York campus by 6 million square feet, and when he realized that NYU needed an engineering school to become a top-ranked university, he went out and bought one: Polytechnic University, the 150-year-old Brooklyn institution. The New York Times asked Sexton in 2003 if his early attempts at raising the university’s profile were about marketing. “Yes,” he responded. “Mythology, salesmanship, branding—it’s all the same thing … The greatest power of a university president is to be the Homer of the community.”
In my opinion, he was doing the right thing. In order to build up the academic equity of NYU, Mr. Sexton had to blow tons of cash to attract the best talent and build the facilities to make it more valuable on the college market.
I knew his spending spree was over when Sexton implemented a hiring freeze for the school.
However, what bothers me is why these events occurred in the first place. College endowments are run like wall street firms. Schools like Harvard Yale and Stanford can afford to lower tuition because they do not need to rely on their students for a cash flow. As I stated before in a previous entry, the elite schools have actually lowered the amount of acceptances because of their endowments.
Now NYU raising tuition is nothing new. However the circumstances of this particular hike have raised an eyebrow or two.
Now what I am about to present is pure speculation, however when you see the pieces put together, it does make a lot of sense.
Let’s take a look at some of NYU’s trustees
Laurence D. Fink Chairman & Chief Executive Officer BlackRock, Inc.
Richard A. Grasso Former Chairman & Chief Executive Officer New York Stock Exchange
Richard Grasso is the former CEO of the New York Stock Exchange and of course we all know why he isn’t the current one.
E. John Rosenwald, Jr. Vice Chairman Bear, Stearns & Co. Inc.
Mr. Rosenwald is a prominent figure at Bear Stearns and we know how that movie ended.
William R. Salomon Honorary Chairman Citigroup
Nuff said.
These are individuals who have played some type of role, positive or negative, in Wall Street and the world financial markets. As trustees of NYU they obviously have a lot of influence on where NYU’s money goes. And I wouldn’t be surprised if that influence has resulted in NYU getting hurt with the rest of the market.
In fact there is evidence to suggest that is the case.
"The story of NYU's endowment management over the past two decades vividly illustrates the dangers of implementing poorly founded investment strategies," said David Swensen, chief investment officer at Yale University.
Perhaps the hiring freeze and tuition hike is Sexton’s way of covering those losses, which is understandable.
But let’s take this further and I admit that this is where it gets a little outlandish but if you think about it, it is plausible and downright creepy.
The trustees that I have presented are prominent figures in their networks. If these gentlemen aren’t hurting, well then they know someone who is. Right now cash is king and credit is dead. So these Wall Street firms need cash infusions to keep them going which are hard to come by especially during these times. That is unless you control a source of liquidity that can pretty much draw blood from a stone.
Do you see where I am going with this?
Perhaps the Sexton’s hiring freeze and tuition hike is not really a response to higher operating costs or a smaller endowment. But in fact it is to create an unofficial cash trough for NYU’s allies on Wall Street who are in dire need of funds. In other words, Sexton is pulling a Bernanke. If you think about it college students are the best source of cash because they have to commit to 4 years of school and it is a tremendous hassle to transfer. And NYU students eventually find a way to cover their costs even it means selling out their future or they leave. If the true reason for this tuition hike is to bailout NYU's buddies, then you are going to have a lot furious NYU students. That is if they are not pissed off now.
Now I am not saying that the trustees themselves are pocketing NYU money. I am sure that is illegal and there are measures in place to prevent that. But I think there are loopholes for them to dole out the money to more appreciative parties.
Now obviously a lot of you are going to say I'm nuts saying that Sexton is using the NYU tuition hike to create a bailout fund similar to the Fed. Then you are going to wonder if I have been seeing black helicopters and cow mutilations. But bear with me for a moment and ask yourselves these questions.
1.Is all this money going to the students? 2.What has NYU’s endowment invested in and what do they plan on investing in the future?
In other words, where is the money trail and where does it lead? That is the only way we will know if Sexton’s reasons are truly justified.
That is not going to happen anytime soon because NYU keeps its finances under very tight security. However I was able to come up with an interesting site that sheds some light on NYU’s finances and it is really nuts, particularly in regards to its debt load.
Which brings me to my next point. This tuition hike could probably be the worst thing for NYU. First of all the cost for college is skyrocketing to the point it is not unheard for people to be in debt for the rest of their lives. We are also entering a recession and the entire country is starting to take a strong look at their expenses, especially their college costs. Even if they are accepted to NYU, students might choose another school because of the cost alone. Which brings me to a personal anecdote.
A couple of years ago a family member of mine was thinking about going to NYU even though he was already accepted to a good school on the West Coast. He felt this way because some of his high school friends were bragging about going to NYU and how they were going to experience New York City. He felt like he was missing out on something by not attending NYU. I told him that he was not missing anything, that he was better off staying on the west coast because his friends were going to encounter higher living expenses, higher tuition and resulting in little added value for their money. Besides, he had plenty of time to live in New York after graduation. So he stayed on the west coast and has never regretted his decision.
Now of course one could argue that NYU has a strong brand name. But obviously that added value is an illusion since you can get a cheaper education at an Ivy League and I don’t care how well NYU is rated, it is no Ivy League. Hell, it’s not even a Williams or a Swarthmore.
Now if I was running the SUNY system, I would be laughing with glee because this presents a ripe opportunity to cherry pick from NYU’s applicant pool. You see, the students who can barely afford an NYU education are definitely going to be able to afford a SUNY education in spades. In fact they may not have to apply for financial aid. And the SUNY schools are no joke. For instance, Stonybrook has some very well known science programs and the rest of the schools are known to be academically sound.
And SUNY would also benefit from the cash rich foreign student demographic. In a recent article in NYT, it presented the story of an elite school and here’s a quote that is of great interest.
“Going to U.S. universities has become like a huge fad in Korean society, and the Ivy League names — Harvard, Yale, Princeton — have really struck a nerve,” said Victoria Kim, who attended Daewon and graduated from Harvard last June.
Now according to Korean standards, there are a lot of stupid rich kids in Korea. I know this for a fact because I have met them. But according to American standards these kids are more than qualified for the SUNY schools. Even though it is not an Ivy League it is still an American university and it is cheap as hell. And Koreans are no different than any other race because they love a bargain. They can get the prestige of an American school at the fraction of the cost, especially with the dollar being so weak. All colleges love foreign students, because they are usually not strapped for cash and they do not complicate things with financial aid since foreign students can't qualify for it.
It is possible that NYU could see a huge drain in their applicant pool, resulting in a huge hit in their cash flow. And if that occurred it would not be inconceivable for NYU to liquidate some its real estate holdings in order to stay out of the red.
As I said before, this is all speculation on my part. And we are not going to know how it all pans out for at least the next 5 years. However, I would recommend with whatever choice you make, look at the numbers. Be aware if you do take financial aid, that unless you get high paying job after college, you are going to be in debt for a long time. And just like I told my relative, even if you do not go to college in New York City, there is plenty of time after graduation to be in New York.
One of the things that fascinates me about real estate is that how seemingly unrelated incidents have an affect on the real estate market. For instance, it appears that we are now facing a food crisis particularly with certain staples like rice. So what does this have to do with new york real estate? Actually a lot.
There are a variety of restaurants that have rice as part of their menu, these include Mexican, Chinese, Thai, Korean, Italian, Spanish, Indian and Japanese. You only need to read Anthony Bourdain’s Kitchen Confidential to know how expensive and stressful it is operating a restaurant particularly one in New York City.
If the costs for these commodities start to shoot up, which they will, then restaurants are going to pass the costs onto their customers. Which is business as usual in New York city. However, that action may yield nothing, considering that we are now in a recession and everyone is making an effort to tighten their belts so they are not likely go out for meals.
Resulting in less profit for restaurants which adds to higher operating costs. I predict that we will see more commercial vacancies as those restaurants that are unable to compete break their leases.
Luke Mullins over at the US. News and World Report emailed his article on how Ohio is dealing with their foreclosure crisis. Basically the state of Ohio is undertaking a massive campaign to implement loan workouts between lenders and owners in order to avoid foreclosures. The state is also going as far as legally challenging these foreclosures.
On the flip side Master Appraiser Jonathan Miller presents a sobering perspective on the loan workout front and has come to the conclusion that it is not really working out.
It seems that every year before rental season kicks, the New York Times does an article on renting your first apartment. I usually avoid writing about these articles because I have covered the material before and it sort of feels like the chestnut that that every New York City paper pulls out when they need filler. However this recent article by Ms. Toy has piqued my interest. It appears that with the changing economic landscape of Manhattan, the rental brokerage community is taking the offensive.
Besides the usual hub bub that Manhattan is really expensive and people are really shocked at what they can get for their money, I did find some points of interest.
Mr. Malin said that the volume of calls his agency has fielded in the last few weeks would suggest the city is headed for another strong rental season. The market was so tight last year that the vacancy rate hovered under 1 percent, but the rate has now inched a little over 1 percent, he said, so there will be slightly more inventory and prices may stay stable.
Daniel Baum, the chief operating officer of the Real Estate Group New York, a brokerage in Manhattan, said he felt the market had softened enough that there might be room for negotiation, particularly in areas that recent graduates would consider better suited for their parents, like the Upper East Side. In certain neighborhoods, he said, “there may be opportunity to get concessions from landlords; maybe one month’s free rent or a chunk of the brokerage commission.”
With more firing than hiring on Wall Street and the real estate market imploding in the New York City area, I am a little skeptical of any reports of a strong rental season. I definitely do see more concessions on the table from landlords and brokers. And if you do not see any, well then you haven’t asked.
To understand the rental market, brokers and recent first-time renters recommend searching the Internet for listings and getting recommendations from friends who already live in the city. That elusive $2,000 one-bedroom apartment, for example, can be found in neighborhoods like Harlem, Morningside Heights and Washington Heights, probably in a nondoorman building. And the average price for studios is below $2,000 in the East Village, the Lower East Side and neighborhoods north of Midtown. Most real estate agency Web sites have guides that explain the intricacies of New York’s rental world. Citi Habitats sends agents to about 20 universities nationwide to offer seminars on what it takes to get an apartment.
Cullen Hilkene, an agent who ran a Citi Habitats seminar at Princeton University last week, said that prospective renters need to know the limitations the market might impose on them. “I give them information so they can figure out how they’re going to be able to live in New York,” he said. “It’s better to know sooner rather than later that they need to bring in a roommate because they won’t be able to rent a studio on their own.”
According to his bio, Cullen Hilkene is actually a Princeton graduate. My initial response upon learning that was "How the hell did he end in this business?" Perhaps I am a being a little elitist, but this is Princeton we are talking about. Not NYU. According to Cullen's bio, he designed and implemented the graduate relocation program. So he is using his Ivy League pedigree for good use and not simply getting by on his rugged mid western good looks and sex appeal.
This is the first time I ever heard of a rental brokerage actually taking the initiative of actually sending agents to universities but I am not surprised that they are doing it. One of the aggravating aspects of rentals is that clients are completely ignorant of their options and what they can get for their money. Often I wasted my time educating these greenhorns only to have them leave me. That is why the saying in the business is “You do not want to be first agent.”
So this particular company is waging a hearts and minds campaign in order to educate their customer first before they look for an apartment. But obviously this agency is not doing this out of the kindness of their heart. In fact their agenda is to implement a mindset into these fresh minds that they need a broker in order to find an apartment,resulting in building a referral base for their rental agents.
It also shows how concerned this company is. From my perspective, this company realizes they can’t afford the luxury of having the clients to come to them. With the recession hitting full swing and the vast no-fee alternatives available online, what this rental brokerage is doing is no different than sales brokers who have gone to Great Britain to sell their Manhattan exclusives. In other words, the rental brokers need to go where the money is.
Alex Sooy, who moved into a two-bedroom near Union Square last June with his roommate, David Isaacs, said he knew the first thing they had to decide was whether to use a broker. For placing you in an apartment, brokers typically charge 15 percent of the annual rent or 1.8 times the monthly rent, which means $3,600 on a $2,000 apartment. Mr. Sooy said he tried looking online for no-fee apartments, “but we would have to go to all these places on our own and work individually with the landlords and that was an overwhelming process.” Like many recent graduates, Mr. Sooy and Mr. Isaacs planned to travel after graduation and they had only three days to hunt for an apartment. “We hated to pay the fee, but it was the easiest way to look at a number of places in a row without having to do so much legwork ourselves,” Mr. Sooy said. Their goal was to find a $3,000 two-bedroom downtown. They visited eight apartments with brokers from two firms before choosing one near Union Square with two real bedrooms, as opposed to ones carved out of a living room, for $3,600. They did not need guarantors because Mr. Sooy works for a consulting firm and Mr. Isaacs works for an investment bank and their combined income satisfied the landlord. Mr. Sooy says his rent is much more than the $400 a month he paid when he was in school and it eats up more than 50 percent of his after-tax income. “I would prefer to have more disposable income,” he said, “but it’s a good apartment and the location is great.”
The added value of using a broker is that you avoid the aggravation and save time when finding a place. However that pretty much applies to only people like Mr. Sooy and his roommate. And if you have seen the news lately, those types of clients are getting pretty rare.
Alicia Schwartz, a former Citi Habitats agent and director of howtorentinnyc.com, said that trolling the Internet for no-fee apartments had become easier in recent years. The Web site Craigslist, for example, offers no-fee listings by owners, no-fee broker listings where the landlord will pay the broker’s commission and fee-based broker listings.
There are also listing services that charge a fee for providing no-fee listings. Ms. Schwartz said, though, that those Web sites can be outdated. “At the height of the rental season, landlord listings change from hour to hour,” she said. “And the only ones who talk to landlords hour to hour are brokers, not listing services.”
I have to disagree with one thing. Do not believe it is just brokers who only speak landlords. A landlord is more than happy to talk to well qualified candidates without a broker. And if you are aggressive enough in calling landlords, you should be able get that place.
Some management companies represent only high-end buildings that would be too expensive for a typical new hire, but others offer a range of apartments. For instance Jakobson Properties, which manages some 2,000 apartments in about 30 buildings in Manhattan and Queens, offers what it describes as middle- and upper-middle-income housing. Peter Jakobson Jr., a principal, said, “Our clientele is in school, going back to school, first job, second job, and not from New York.” He says that Jakobson leases most of its apartments through its Greenwich Village office and its Web site, nofeerentals.com, but that brokers bring in about 35 percent of its business. Ms. Schwartz said, however, that some management companies work exclusively through brokers.
Rental agents dread this particular company and in fact rental agents make an effort to only go to their buildings as a last resort because of those enormous obnoxious no fees signs outside their buildings. The broker knows that once a client sees that sign, the they are going to have a helluva time reeling their clients back in.
Lindsey Zuckerman, who has moved twice and found renters to take over her leases by advertising on Craigslist, knows that first hand. She said that the first time she listed an apartment, she had trouble getting through to her leasing company on behalf of prospective renters, but the company would take calls from brokers. She also said Craigslist might work better for people who aren’t first-time renters. She recently sublet her $2,400 alcove studio in NoLita to someone who responded to her listing on Craigslist. “I got a ton of responses,” she said, “but they tended to be from people who already know the market. Students who wanted to see it a week from when I posted it would have been too late.”
Craigslist was created so that even the dumbest people could find an apartment. Can it be a pain in the ass searching for a place? YES! But it can be done. And knowing the market should take you less than a day just by doing your own online due diligence.
Below is information that is common knowledge for New Yorkers, but if it is your first time coming to New York you should definitely take note of these facts.
Because the competition for desirable apartments can be intense, brokers and renters say that having all the necessary documentation in hand when apartment hunting is crucial.
Leslie Lazarus, the agent for DJK Residential who helped Mr. Sooy find his apartment, said that because landlords have such different policies, prospective renters should have guarantors lined up even if they don’t think they will need them. For people in the financial industry, she said, some landlords will accept bonus potential, as part of their income and others won’t.
And while some landlords will accept the combined incomes of two or three roommates, some don’t and will require one guarantor who can cover the rent for all the roommates.
Many landlords require the same level of financial documentation for both a renter and the guarantor, which means a sheaf of personal records that includes tax returns, pay stubs, bank statements, proof of income for stocks or other investments and reference letters. “That can be a difficult thing for parents to understand because it is so invasive,” Ms. Lazarus said.
Brokers agree that being upfront about credit problems is also important because the $25 to $150 application fee that landlords charge goes toward a credit check. “Some people won’t have a credit history or they’ll have ruined it already with that $30 nonpayment to the cellphone provider,” said Senad Ahmetovic, a vice president at Halstead Property. “You would be surprised to see how many of those cases I’ve had, and they do not realize how damaging that can be to their credit score.”
The best time to plan a visit to the city to view apartments is four to six weeks before an expected move-in date. Brokers say that while most recent graduates want to stay downtown and want to look in the Village or in Murray Hill, more reasonably priced apartments can be found on the far east and west sides of town and on the Upper East Side, where there are more large apartment buildings, including Normandie Court on East 95th Street, a building so popular with recent graduates that it is known as Dormandie Court.
As for those bonuses, if I was a landlord, I would definitely not count on them, not in this economic landscape.
This is an excellent article, however it does feel very broker centric to me. In response to that I will be presenting two entries on the upcoming rental season that will hopefully shed light on how to navigate finding an apartment. Or it may just confuse the hell out of you. Either way it will be entertaining.
The absolutely wrong message to send to potential buyers and sellers.
One of the marketing tools of real estate brokers in Manhattan are mailings. They can range from a postcard announcing an exclusive listing in a building or a sold property. These mailings are usually professionally done by marketing departments so usually they are very slick. Now and then you get some, how should I say this, unusual ones. They often come from the outer boroughs. But I have come across a set of ads that stick out but not for the right reason.
I do not know this broker nor have I met her. And I have nothing against her and I have no desire to start a broker blood feud with her. Out of professional courtesy I have made the effort to cover up the identity of the broker and the location of these listings. I figure why make her life harder than it is? This not about being harsh for the sake of entertainment but to educate.
These listings were sent in a thick heavy stack reminiscent of a coupons in the mail. It gives the feeling that these are not mailings for homes but instead a stack of coupons for Papa John's.
As you have all seen, the first sentence that the recipient sees is
"Is it time for you to cash out?"
Two years ago this would have made people pause to think. Now all it will do is piss people off . Wall Street is getting hammered and there is strong evidence that the dead cat bounce is dead and that the Manhattan real estate market is in for some major chop. Chop in prices that is. When you use the words "cash out" it implies "big bucks", "major moolah" and "jackpot". That term is not in vogue now. This sentence also implies "If you haven't lost your job yet, you will soon. Get out while you can."
YIKES!
The paper choice is absolutely atrocious. First of all the colors scream "I am too cheap to get post cards or get the proper paper for mailings, therefore I have raided my daughter's high school year book club's supplies."
The word "Sale" is utilized prominently on each mailing. This is Manhattan real estate we are dealing with not an outlet store. Sale in New York real estate implies desperation. Sellers do not appreciate that type of impression created on their behalf.
The content of the mailings is absolutely atrocious. There are no pictures of the apartment itself and there is no proper description of the apartments themselves. Just some sparse words and a floor plan.
Square footage is detailed on the mailing. THIS IS A BIG F**KING NO NO! Brokers should never list square footage on a mailing because if the apartment does not appraise and the buyer needs to shell out more money then the broker is looking at major legal trouble.
This last mailing is the biggest sin committed by this broker.
This broker just closed a deal and especially in this market this is a cause for celebration. What this broker should have done was simply write a short yet proud letter about selling the apartment and how they could do the same for prospective sellers. This accomplishment should be presented like a fine wine. Instead it feels like this broker is presenting a can of PBR.
I am quite surprised about all of this considering that this particular broker is aligned with the Dali Lama of the real estate broker world. This broker is also no joke herself. From looking seeing the vast amount of listings on her website she is the high priestess of the broker world.
My suspicion is that her company requires her to put up the capital outlays for marketing so she decided to take the quick and dirty route. But if you are selling Manhattan real estate, you can't afford to play it cheap.
Honestly, there are brokers in Queens who have better mailings. This broker should really rethink her game plan with her marketing. Also the company should make more of an effort for quality control because this also makes them look bad.
