As the condo real estate market continues to flourish in the US, more real estate investors are looking for lucrative properties across NY.
A condo is an ideal pick for individuals who want to live a simpler, hassle-free life with nearby amenities. Unlike a house, condos require less attention as they’re managed by a union. It is, however, very different to buy a condo than sealing the deal on a white picket fence house.
Skyrocketing ROI and profits on a real estate property isn’t very difficult. Making smart decisions at the right time is the secret sauce to upscale your real estate investment’s value. So if you’ve been thinking of investing in a condo, we’re here to help. Whether you’re buying a property to live in or renting it out, this comprehensive guide will help you.
Let’s get started.
Understanding Condominiums
Before we delve deeper into the essential questions that one must ask when buying a condo, let’s understand these types of properties in detail.
Short for condominium, a condo is a shared property wherein several families can reside in different units. They’re also known as housing units and are replete with amenities and luxurious services. Most condo buildings in New York offer services such as swimming clubs, gyms, gaming centers, pubs, and children’s play areas. However, the quality and quantity of amenities directly affect the price and monthly charges for the property owners.
Here are the top 8 questions you should ask before finalizing a condo property purchase deal.
Question 1: What’s the Condo Community Like?
Since condos are shared between several residents, there’s a single union committee that takes charge of maintenance and upkeep. Every condo building has a specific community, and it’s important to thoroughly assess it before buying a unit.
Certain rules, regulations, customs, and qualities distinguish each community. This is why buyers must always learn the inner working of a condo community before purchasing a unit, especially if they intend to live with their families.
Question 2: Does My Lifestyle Matches Condo Living?
Before plunging into buying this unique real estate property, it’s important to identify whether or not your lifestyle suits the condo environment. In a condominium, you won’t be in charge of all the maintenance, repair, and renovation projects.
Living in a condominium is very different than owning a house. It bounds residents to the rules and regulations of the management committee.
It’s also important to know that condo residents live nearby. Since a condo isn’t a free-standing residence, your place will be attached to the neighbor’s unit. A condo is undeniably an extremely lucrative investment for real estate owners. But if you’re buying one as your primary residence, make sure you’re accustomed to its pros and cons.
Question 3: What’s the Condo Management Team like?
Another all-important thing to do when buying a condo is the management team interview. When searching for potential condos in NY, don’t forget to talk to the management team head. They’re can give you a bird’s eye view of the entire building’s environment.
Be attentive when asking questions to the manager. A lousy manager who doesn’t know much about what’s going on in the building is a critical red flag. Find out whether or not the team is gelled up in making decisions together. Inquire about the monthly maintenance fee and other add-ons.
Question 4: Will I Need Financing?
Now that you’ve found a condo at an ideal location and have learned all about its management team and amenities, the next thing to consider is your budget. Many real estate investors opt for traditional bank and credit union loans. These loans, however, involve stringent policies, terms, and regulations.
Bank officials screen a borrower’s credit history, criminal records, financial status, and much more. To save your time and effort, we recommend you opt for hard money loans instead. Reliable private money lenders like the Insula Capital Group offer flexible hard money solutions to help real estate investors and buyers generate high ROI.
When buying a condo, hard money loans can help you make smart offers. They’re also an ideal financing option for fix and flip projects. Here are some more instances in which choosing a real estate hard money loan can be the best option for you:
- At Insula Capital Group, we can approve your real estate private lending application within a week. When you’re short of time and can’t go through a bank’s long, tiring process, our hard money loans can help!
- If your credit score is not up to the requirements of banks and credit unions, we can help. As the leading private money lending firm in the US, we offer flexible real estate financing without screening credit histories and past financial statements.
- Real estate buyers can sometimes fall short on cash when making buying offer. Instead of asking your friends or family, you can opt for professional hard money lenders in NY.
- Fixing and flipping condosis easier and faster with guaranteed financing which is only possible if you opt for hard money loans.
- Hard money loan programs are customizable. Based on a condo’s location size, and renovation requirements, Insula Capital Group, can curate a beneficial plan to match your financing needs.
Question 5: What are Hard Money Loan Requirements for Buying a Condo?
After deciding that a hard money loan is the best way to fund your next condo purchase, make sure you understand the ins and outs of private lending. This is quite different and simpler than traditional real estate loan procedures.
As we mentioned above, hard money lenders in NY are not concerned with your credit report or financial status. We’ll only take a look at the value and resale worth of your chosen condominium. This property will also serve as the sole collateral for loan security.
Your hard money lender, however, decides the terms based on your investment’s unique qualities. Some of the basic requirements involved in hard money loans for condos include:
- Many hard money lenders work in a particular area. Choose Insula Capital Group for maximum geographical exposure. We offer our robust loan plans across the US.
- Oftentimes, hard money lenders take a brief look at your real estate investment expertise. They may ask you about previous investments their ROIs.
- A hard money loan plan depends on the type of property. At Insula Capital Group, we offer loans for a multi-family mixed-used, single-family residence, fix and flip, and newconstruction loans, among many others.
Once your hard money loan application is approved, your lender will order an appraisal on your chosen condo. If the condominium matches the documentation and information you provided, you will immediately get the money to close the deal.
Question 6: Is There Any Pending Litigation?
Now that you’re all good on the budgeting and financing side, it’s time to plunge deeper into the condo building. Real estate investors should always be very careful about any pending litigation or claims on their chosen property.
When buying a condo in the US, make sure that no damages claims or HOA cases are pending on the management team. This can significantly impact your unit’s resale value and also reduce profits.
The most common type of litigation on multi-family buildings includes HOA penalties. If a building is built without code compliance, HOA can sue the builders for structural defects. Most new condo constructions in the US come with a 10-year warranty, but it has to be fully availed by the management team.
Always check if the exterior elements such as decks, roofs, and windows are well-maintained or not. These fixtures are vulnerable to weather damages and can pile up renovation expenses if ignored.
Question 7: Are the Management Team’s Finances in Order?
Take your time to ensure that the condominium will pay high dividends in the long run. A critical determinant that can help you here is the management team’s financial capacity.
Always make sure that the management puts the maintenance fee on regular repairs and renovations. Ask for a money trail and ensure that they have adequate funds for emergencies such as a major weather event.
Ask for upcoming appraisals and special assessments. Learn whether or not the team has kept in line with all kinds of building codes and assessments in the past. Don’t forget to check that all the necessary elements like staircases, elevators, and driveways are up-to-date-date.
Question 8: Do I Fully Understand the Monthly Maintenance Fee?
The maintenance or association fee is an essential aspect of your total condo living expenses. Its exact amount is calculated after assessing the total average expenses and number of units in a building.
The funds are further categorized into emergency finances, repairs, utility bills, and litigation expenditures. Getting to know the entire concept of association fees is very important to buyers and real estate investors as it impacts their variable expenses in the long run.
A good way to learn more about the value and purpose of association fees is to talk to current unit owners. You can ask them about the services that are offered in return and whether or not there are any tax implications on the fee. Look closely at the repair funds when buying a condo. The building management team has to perform major repairs. It’s a green flag for buyers if the team has allocated at least 10% or more for a less than 10-year-old property.
However, the amount should be more for older complexes. For example, a 20 years old condo building should have at least 25% of the total funds allocated for repairs and renovations.
All in all, condominiums can be a very good addition to your real estate investment portfolio. All you have to do is ensure an ideal location, code compliance, and good rental rates. Moreover, be sure to check HOA, CC&R, and tax compliance before plunging into a deal.
Why You Should Choose Insula Capital Group for Real Estate Hard Money Loans in NY?
Hard money loans offer an improved, easier, and less complex substitute to traditional real estate loans. As multifamily building investments gain admiration among real estate investors, hard money lenders like Insula Capital Groups have marched in to fuel profits.
At Insula Capital Group, our multifamily property loans don’t necessitate minimum underwriting DSCR or repayment forfeits. You can choose to pay off the loan in 12 months or extend the term to as much as 360 months!
Other than real estate hard money loan plans, our light, and heavy rehab financing ensure high ROI for investors. As one of the leading private hard money lenders based in Farmingville, New York, we aim to offer mortgage financing with the best solutions for single and multi-use buildings.
We also offer new construction, fix and flip funding, and buy & hold loans. Our team of qualified hard money lending experts can help you streamline your real investment goals with adequate financing in the US.
Closing profitable deals on condos are the first step toward success in the real estate market. And therefore, you should apply for a hard money loan at Insula Capital Group right away. Most traditional lenders only offer 20 to 40% value real estate financing. In contrast, you can avail up to 100% coverage on your condo costs. Hard money lenders offer hard cash that enables real estate buyers to make down payments on their favorite properties ASAP.
Now it makes sense why smart and savvy real investors are actively choosing hard money loans over bank loans, right?
So what are you waiting for? Call us at (833) 319 3517 to get started or fill out a quick form right away!