Manhattan Real Estate – Building Financial Report – you must to read

Financial Statement

Financial Statement

When it comes to apartment building investments in Manhattan, you always have to know the Financial Report of the building. The reason is very simple because you invest an individual unit in a building – a multiple-unit dwelling and joint ownership with others in the common area. Therefore, the building should have a financial statement for Income, Expenses, and Assets to maintenance the common area as well as the building. The building should have cash or reserve fun to operate the expenses, repairs. and improvements . Viewing over the past three years financial statement will help you to know exactly what the gross income and expenses have been used in the building in order to determine approximately how much the apartment is worth, what the expected rate of return will be, as well as to see whether or not there is any maintenance or common charge increase in the near future. Or is there any assessments request in the near future.

First, analyze the incomes and expenses to look closely at all the expenses for each year for at least three years. To find out which expenses have increased and which have decreased from those years. If the increased expense is made for significant improvements of the property, this could add value and benefit to the owners of the building.

Basic the building needs a reserve fund to make improvements or repairs. The fund could be received from flip tax (most co-ops), monthly maintenance / common charge. Sublet fees, commercial rents, laundry income or other revenue source. If the reserve fund is deficiency, there could be either increase monthly maintenance or has an additional assessment to cover. Therefore if the building has commercial rentals, asking for a snapshot of the building’s rental revenues and when will be the leases end. For co-op building, investors have also investigated the building’s Underlying Mortgage.

A NYC professional attorney would assist buyers to go through those steps. However, if you become an educated buyer, you will get good money return. Real estate is a long-term investment opportunity. In this shifting real estate market, you may be able to purchase investment real estate that will secure your financial goals for the long term.

Manhattan Real Estate Market is very unique. The entire purchase process is different than anywhere else in the world. If you are interesting to have a FREE consultation, if you have any question about sell real estate in Manhattan, contact me directly Diana Wu at 516-320-0231 (cell) or email me at diana.wu@elliman.com.

I have the privilege and pleasure to work with The Voda Group at Prudential Douglas Elliman. The Voda Group has been the top, award winning sales team at Prudential Douglas Elliman since 2003. Our team’s hard working will help your real estate goal extremely successful.

To learn more about our custom-designed marketing plans, visit my website at:  http://www.elliman.com/real-estate-agent/diana-wu/4623 to receive a complimentary valuation of your home, or to discuss any real estate related topics, please contact us today.

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