Alright, so here are the facts: I recently became a permanent resident of the USA. I own a business abroad which is my only source of income at the moment. I knew from the start my lack of US work history and US source of income could be a problem when buying an apartment. So when I saw an apartment I really loved, I talked to the broker, who told me the co-op board of the building was very... [more]
Alright, so here are the facts: I recently became a permanent resident of the USA. I own a business abroad which is my only source of income at the moment. I knew from the start my lack of US work history and US source of income could be a problem when buying an apartment. So when I saw an apartment I really loved, I talked to the broker, who told me the co-op board of the building was very lenient and only cared that you had enough in your bank accounts to pay for maintenance. I figured, since I was paying cash and I would still have more than $100,000 in savings after closing, that I wouldn't have a problem. So before signing the contract, I called the managing agent to double-check and he just told me to send in bank statements for the past 3 years to show growth in my bank accounts in lieu of an employment letter. I signed the contract and turned in my board application but now he is asking me to submit an employment letter but I simply cannot provide that because I am not employed in the United States. My sole source of income is from my investment in my foreign business. I am afraid that if the board turns me down I will be accused of acting in bad faith and the seller will keep the earnest money. How likely do you think this is to happen?
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Response by mngmist
over 11 years ago
Posts: 71
Member since: Jun 2010
A letter from your CPA may do the trick.
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Response by Aaron2
over 11 years ago
Posts: 1713
Member since: Mar 2012
If your lawyer is doing his job, your sales contract should require the return of your earnest money in the event the board rejects the transaction. I believe the standard REBNY contract includes this language. Since you are technically 'unemployed', you need to submit sufficient documentation to evidence your investment income over a period of time, and, if you are counting your investment as an asset, something that validates the valuation of the business (e.g., evidence of your ownership, and the investment's balance sheet). Your CPA, or the financial officer of the company should be able to put together a reasonably convincing set of documents.
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Response by front_porch
over 11 years ago
Posts: 5321
Member since: Mar 2008
This is an old thread, so I don't know if OP is watching it, but he/she should offer to escrow 1-2 years' of maintenance as part of the purchase application. I'm not an atty, so I can't comment on the status of the earnest money, but in this situation offering an escrow would put many boards at ease about the applicant's financial situation.
ali r.
{downtown broker}
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Response by Flutistic
over 11 years ago
Posts: 516
Member since: Apr 2007
First of all it is not earnest money. Earnest money is different, I've paid it, and we don't do that in the NYC market.
Earnest money is money paid to get the property off the market, pre-contract. It's not a deposit that is paid at contract signing.
Assuming the usual contract is used, a board rejection means the entire deposit goes back to the buyer. Period. End of story.
Whether maintenance in escrow would change things for this buyer, or not, depends entirely on the Board of Directors of that building. It can't hurt to offer. With a lenient board it might well work.
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Response by pleasantstead
over 11 years ago
Posts: 79
Member since: Nov 2014
>This is an old thread, so I don't know if OP is watching it, but he/she should offer to escrow 1-2 years' of maintenance as part of the purchase application. I'm not an atty, so
Not only are you not an attorney, but you aren't a good financial advisor or negotiator. The OP is paying cash for the apartment, and with only $100K left, should outright volunteer 2 years of maintenance in escrow? What about a cushion in case the OP has a problem with his or her investment in the foreign business?
A letter from your CPA may do the trick.
If your lawyer is doing his job, your sales contract should require the return of your earnest money in the event the board rejects the transaction. I believe the standard REBNY contract includes this language. Since you are technically 'unemployed', you need to submit sufficient documentation to evidence your investment income over a period of time, and, if you are counting your investment as an asset, something that validates the valuation of the business (e.g., evidence of your ownership, and the investment's balance sheet). Your CPA, or the financial officer of the company should be able to put together a reasonably convincing set of documents.
This is an old thread, so I don't know if OP is watching it, but he/she should offer to escrow 1-2 years' of maintenance as part of the purchase application. I'm not an atty, so I can't comment on the status of the earnest money, but in this situation offering an escrow would put many boards at ease about the applicant's financial situation.
ali r.
{downtown broker}
First of all it is not earnest money. Earnest money is different, I've paid it, and we don't do that in the NYC market.
Earnest money is money paid to get the property off the market, pre-contract. It's not a deposit that is paid at contract signing.
Assuming the usual contract is used, a board rejection means the entire deposit goes back to the buyer. Period. End of story.
Whether maintenance in escrow would change things for this buyer, or not, depends entirely on the Board of Directors of that building. It can't hurt to offer. With a lenient board it might well work.
>This is an old thread, so I don't know if OP is watching it, but he/she should offer to escrow 1-2 years' of maintenance as part of the purchase application. I'm not an atty, so
Not only are you not an attorney, but you aren't a good financial advisor or negotiator. The OP is paying cash for the apartment, and with only $100K left, should outright volunteer 2 years of maintenance in escrow? What about a cushion in case the OP has a problem with his or her investment in the foreign business?