Real Estate Investing: Find Great Deals

INSIDE:Thinking About Selling?.....................2

Are You Ready to Refinance?...........3

Financing Your Business with Home Equity..............................4

Pros & Cons of Using Your Savings.....................................5

First-time Home Buyer? ...................6

How Home Equity Works..................7

Premier Advocate for MWBEs..........8

Laws of Succession..........................9

Wills & Estate Planning...................10

When deciding to go into realestate investing, undevel-oped lots can have great po-

tential. Purchasing a parcel of land canbe one of the best investments you canmake. A landowner has great (but notunlimited) freedom in how to developtheir land, and land never expires, so itspotential is essentially infinite. So, buy-ing undeveloped or vacant land can berisky business, so read on to find tipson purchasing a parcel of land.

Do Your Homework: Before You GetOnto the LandBefore anything else happens, figureout your priorities. Decide what youwant the land for, what amenities andwhat location you want, what you'relooking for in terms of neighbors orlocal government, and, of course, knowyour budget. More specific questionswill arise around taxes, fees and per-mits for building and available utili-

ties/water access – but, first, just start withyour ideal land plot and work backwards(and into reality) from there.

Research the Land ItselfOnce you find a plot that fits your needs onpaper, get out onto it. Walk the land with aneye on the topography, any unexpected hillsor valleys? Is the groundsolid/fertile/arable, (depending on whatyou need)? Are there neighboring proper-ties, size and shape of the plot, and anyother elements that the walk brings to yoursenses (smell and hearing as well as sight)?.Ideally, do this walk in the fall, so there isno foliage hiding your view of the propertyand what's around it.

Don't Lose Hope: It's Costly, But ThereAre Deals Out ThereRemember that developing the land willincur costs too. Budget for as many foresee-able costs as you can, including: a land sur-vey, well/utility installation, legal fees,

land-clearing, landscaping and road con-struction. That said, there are places youcan look at for deals on the initial land pur-chase, including property lots for sale(which are cheaper the farther they arefrom major cities, road access and already-connected utilities) or bank-owned plots.For those, you can talk to your real estate

agent about asking local banks for listsof their foreclosed properties, whichtend to be cheaper as banks look tosell them off.

Don't Be Afraid to Ask: Speak to AnExpertFinally, talk to people. Ask localsabout the neighborhood, previous usesof the land and potential surprises(like calm paths that turn into snow-mobile trails in the winter). Connectwith professionals in the local healthdepartment, zoning and building de-partments, accountancy and otherareas of development for in-depth an-swers to your municipal questions.

Remember: while you will need totalk with many professionals in yourdue diligence, let your local real estateagent be your first point of contact.

A good place to start is Equity SmartRealty. Call us at 888-670-8845.n

REAL ESTATE AGENTSWANTED: APPLY NOW!

It's time to make a career choice that you will LOVE.

Send your resume to info@equitysmartrealty.com

Purchasing Your Home?Check Your CreditResearch shows that people who

plan carefully for big pur-chases, like owning a home, are

less likely to run into financial troublelater. So if you are thinking about buy-ing a home this year, let’s make a plan.The first step: Check your credit.

It’s always a good idea to reviewyour credit reports and scores periodi-cally, even if you’re years away fromshopping for a home and a mortgage. Ifyou’re planning to buy a home thisyear, we recommend checking yourcredit reports and scores as soon as pos-sible.

The better your credit history, themore likely you are to receive a goodinterest rate on your mortgage loan.Lenders will use your credit reports andscores as important factors in determin-ing whether you qualify for a loan, andwhat interest rate to offer you. If thereare errors on your credit report, youmay have trouble qualifying for a loan.

mit a dispute to correct any inaccu-rate information nUnderstand how credit scores arecalculated and how it impacts yourhome purchase

For all of the above, and to betterunderstand the credit process in homepurchases, call 888-670-6791 andschedule an appointment.n

So, don’t delay in checking your credit. Re-view your credit reports and take steps tofix any errors. It’s the first step to buildinga strong financial foundation for your newhome.

It’s important to: nLearn the difference between a credit re-port and a credit scorenComplete our checklist to help you re-view your credit report for errors and sub-

Smart homeownersand first-timehomebuyers

read thispaper!

EQUITY SMART REALTY2

Thinking About Selling? 3 Reasons Why You'll Absolutely Needa Great Real Estate BrokerWhether you're familiar with the

market or you've never sold ahome before, an effective real

estate broker can be exactly what you needto make for a positive market experience.With the world of real estate in a constantstate of turmoil, here are a few reasons whythe right broker can successfully guide youthrough the muddled waters of the market.

A Skill for CommunicationIn case the real estate market makes younervous, it's particularly important to havethe kind of broker who will keep you in theloop and give you the information you needto make an informed selling decision. Abroker with the powers of communicationwill be able to give you honest advice whenit's required, like if it's time to lower theprice of your house, so that you can havesuccess in achieving the offer you're look-ing for.

A Willingness to Work HardThere are many brokers out there who won'tbe willing to put in additional effort for a

client, but the kind of broker you will wantto choose should be someone who is a go-getter and will chase potential business foryou. Instead of waiting around, an idealagent should be following up with potentialbuyers and ensuring that they're chasingany leads that may secure the purchase ofyour home. If you have to ask them to beproactive, they are probably not the rightperson for the job.

A Bevy of Client ReferencesA real estate broker who is worth his salt,should not hesitate to provide you withclient references so you can make an in-formed, educated decision. Instead of ask-ing for their personal references, though,request the names of their last ten clients asthis should give you a pretty good grasp ofwhat their capacities as a broker are, andhow they will serve you. If they are cageyabout providing references, you'll want tomove on to your next potential broker.

The real estate market is rife with a lot ofthings to know and it can be complicated tojump into the tides, but the right broker can

actually make the process of selling yourhome a lot less stressful. If you're currentlylooking for a home and are not sure whereto turn, you may want to contact one of ourreal estate professionals for more scoop onthe market.

Equity Smart Realty (ESR) specializes ina customized marketing strategy tailored toeach seller’s individual needs. Our goal isto bring you the highest offer in the shortest

amount of time. Our experienced team havesuccessfully marketed and sold residentialproperties throughout New York City. ESRassists buyers in locating and purchasing-properties in the following areas: Brooklyn,Queens, Staten Island, Manhattan, Bronxand other counties in New York State.Schedule an appointment today. Call 888-670-6791. n

SAVING YOUR HOME 3

Whether you've decided to reno-vate your home or you wouldlike to consolidate your debt, re-

financing your mortgage can be an optionin times of money trouble; however, it's im-portant to know whether or not this is theright step for you. If you've been consider-ing refinancing recently and are wonderinghow to come to a decision, here are somequestions you should ask yourself beforewading into the water.

Do You Have the Extra Time?It may sound silly, but looking into the de-tails of financing your mortgage can takeup a lot of time, and if it's going to be stress-ful or tax your abilities too much, you maywant to hold off until things change. Be-cause there are so many details associatedwith refinancing, and the security of yourlargest investment hangs in the balance, it'simportant to have the time to research andunderstand all the small stuff so you don'tfall victim to a bad loan or confusing mort-gage terms.

What’s My Interest Rate?It's entirely possible that refinancing maynot be worth it if you can't get the interestrate you're expecting, so don't be taken inby low rates you may have come across.

Many unreliable lenders will offer the low-est rate to get your business, so it's a goodidea to do the research and go with some-one you can trust. Your credit score and fi-nancial standing will have a lot to do withthe rate you qualify for, but if the interestisn't as low as you've calculated, it may notbe a beneficial financial decision in the end.

Will This Help My Financial Situation?No one decides to move forward with a

mortgage refinancing without thinking thatit's a good financial decision, and that's whyit's so important to carefully weigh all of thevariables before deciding refinancing is foryou. From a job loss to a home relocation,there are many things that come up in lifethat we are not always financially preparedfor, so make sure to consider as many pos-sible pros and cons as you can before mov-ing forward with this option.

Many people think that refinancing their

mortgage will improve their financial situ-ation and eliminate their debt, but it's im-portant to consider all of the outcomes ofthis choice before coming to any final de-cision. If you're currently considering refi-nancing, you may want to contact one ofour mortgage professionals for more infor-mation.n

Are You Ready to Refinance Your Mortgage? LearnHow to Do a Quick Refinancing Self-Assessment

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Though many business owners atsome point tap into home equity asa financing source, you need to de-

termine whether this strategy is right foryou.

First, you should know the basic differ-ence between the two primary kinds ofhome equity debt. A home equity loan is aone-time lump sum that is paid off over aparticular amount of time with a fixed rateand number of payments. A home equityline of credit—also known as a HELOC—works more like a credit card because it hasa revolving balance. Interest is due on theoutstanding balance and that rate may varyover time.

As long as your home has appreciated invalue, there will be a bank or mortgage bro-ker who wants to loan you money in theform of either a home equity loan or line ofcredit right up to your credit limit. It's intheir best interest because they make moremoney that way. Yet just because you qual-ify for a home equity line doesn't mean youneed to use it, particularly as a bank for in-vestment purposes.

Quite a few things need to go your wayfor you to use your home equity line effec-tively. While home equity loan interest ratesmay cost you less than borrowing fromother sources, such as a bank or even froma brokerage account, you still need to bevery careful and perform your due dili-gence.

To borrow home equity effectively, youneed stable interest rates and rising homevalues. In other words, this strategy worksbest during a strong economy. It's up to youand/or your team of advisors to determinethe pulse of the local and national economy.

Even if you're operating in a strong eco-nomic environment, many financial plan-ners would tell you that if you need toborrow from home equity, you may not bein the strongest financial position to makean investment in the first place.

Here are the things you should discusswith a trusted financial advisor before tap-ping into your home equity:

nWill your investment deliver a greaterafter-tax return than you'll be paying for theloan?

Financing Your Business with Home Equity

nDoes your home equity loan or line carryan adjustable rate? If so, a jump in interestrates may make what you owe even moreexpensive and further offset any gains youmake in your investment. If rates fall, it'sgood news, but given current conditions, itmakes sense to be cautious.

nHow much is property appreciating eachyear in your neighborhood on average? Isit enough to further offset the cost of yourinvestment? Keep in mind that no one ispredicting the type of double-digit propertyappreciation we saw before 2004.

nHow will this loan work for you from atax perspective? Keep in mind that intereston home equity loans is generally not tax-deductible if you aren't using the debt to

buy or renovate a property.

nWhat if you need your home equity bor-rowing power later for an emergency—thereal reason most of us should open a homeequity line and then avoid using it? Couldyou handle that emergency if your borrow-ing was strained to the maximum?

nHow liquid is this investment? If you hada sudden major expense, could you turn itinto cash without major hardship?

nHow much other debt do you have? Doyou have significant balances on credit cardor auto debt? That may raise the rate youpay on your loan—another potential cut inyour investment profit potential.

nFrom a cash flow perspective, will you beable to service the debt—make the loanpayments—assuming your investmentusing the home-equity funds doesn't workout?

Home equity is a good option for many im-portant financial goals, but you have to bal-ance risk against potential reward. In manycases, it's good to hold home equity in re-serve for a real rainy day.n

Source: www.entrepreneur.com

EQUITY SMART REALTY4

Because membership in the local chamber offersnumerous benefits and keeps business owners ontop of important, ever-changing issues and trendswithin their community and local marketplace.

Why Join Our Chamber?

reasons to join:

lBrings credibility to your businesslIncreases your visibility in the communitylCreates networking opportunitieslGain a voice in governmentlMake business contactslReceive Chamber newsletters lAcquire customer referralslAttend Chamber events and programslBenefit from promotion and publicitylFree small business consultations

Ready to joinour Chamber?Keep in mind,

however, that you can’t just be a member

of the Chamberto reap the benefits

of Chamber membership.Paying your

annual dues just isn’t enough.

You must also make an investment

of time and effort in Chamber activities

and become involved. Simply put,what you get out of

Chamber membership

is directly relative towhat you put in.

Become a Chamber member today.Call 718-722-9217 or visitwww.chambercoalition.org

Time to takeyour businessto the next level!

GET MONEY FOR YOUR BUSINESS!

HOME OWNERSHIP 5

If you've been perusing the real estatemarket with the hope of purchasing ahome, you may be aware that the

amount of money required for a down pay-ment can be very expensive and can oftendrain your savings. However, there’s somegreat news for first time home buyers. Wefind that after surveying large groups offirst time home buyers that the single mostdificult hurdle to overcome is havingenough money for the down payment. Evenif the credit and household income is ac-ceptable, we find very few have a 20%down payment and that the majority arehaving dificulty saving even the 3.5% downpayment required for an FHA loan, whichis the most popular loan for first time home-buyers.

Periodically the market hears the plightof the first time home buyer and comesthrough with some new solutions. One ofthe most popular solutions today is the useof down payment assistance loans. The waythis program works is the following:

lIf you have a 640 credit score and suffi-cient income you can qualify for a 3%down payment assistance loan up to$15,000.lThe qualifications are very similar to thequalifications for other common mortgage

programs. It requires a 3.5 down paymentbut 3% of that comes as down payment as-sistance not from your pocket. lThe minimum cash requirement from thebuyer would be 1%. So if you are purchas-ing a $400,000 house where the sellerwould be contributing towards your closingcosts, then the minimum cash requirementfrom the buyer would be $4,000. How greatis that!

Think of all the benefits. By not using allyour cash for a down payment you can useyour extra money for moving expenses, tobuy furniture or simply to save for a rainyday. Also, let’s not forget about the peoplewho don’t have an adequate savings alto-gether. We must asume that if you are inter-ested in being a homeowner you should beable to round up between $3,000 and$5,000 to meet the 1% requirement. The

next great thing is for purchasers of 2-fam-ily homes which usually require 20% downpayments on conventional loans. This mort-gage, as just explained, can be used forthese transactions as well.

We hope you all find this information veryvaluable in helping you to achieve yourdream of home ownership. We will alwaysstay on the cuttting edge and continue toupdate you as new and exciting things areintroduced to the marketplace and we sin-cerely hope that through this informationwe have helped to change peoples' lives forthe better.

Three percent is a great number when itcomes to a down payment. The magic num-ber for a down payment is usually 20 per-cent, so this is a really good deal. If you'recurrently on the market for a new home,you can contact us at 888-670-6791 formore information.n

Introducing the 3 Percent Down Payment Assistance Program

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First-time Home Buyer? Avoid These 3 Common Mistakes Deciding to purchase a home will be

one of the biggest investment deci-sions you'll make in your life, but

it can be confusing for the first-time homebuyer to know all the ins and outs of buyinga home. If you're wondering what thingsfirst-time buyers often forget about beforepurchasing a home, here are three importantthings that you'll want to keep in mind:

Ignoring Their Credit HistoryIf you have a high debt load or you haven'tbeen making your minimum payments, itcan be pretty frightening to consider look-ing at your credit report, but it's very impor-tant to do this before applying for amortgage. A lender will be taking a look atyour credit history and reviewing it care-fully before approving your application, soit's important for you to be aware of whatyour credit history says about you and howit might impact your mortgage.

Buying Too Much Home It's easier than you might think to beswayed into purchasing your dream home,but it's necessary to keep a cool head andmake an informed decision so that yourhome investment can be financially benefi-cial for you. The amount you should bepaying for a home on a monthly basis

should leave you with enough so that youcan pay for the necessities, any existingdebts and any extras while still having wig-gle room in case of emergency. While youmay want to spend a little more, this canend up being a mistake if things don't go asplanned.

Forgetting the DocumentationThis may be among the easiest of steps, butnot having the appropriate documentationcan push back your home purchase, so en-sure you have all the necessary paperworkfor when you need it. Beyond the Verifica-tion of Rent you'll need from your previous

landlord, it's also important to make surethat you have liquid assets – not just invest-ments and Registered Retirement SavingsPlans (RRSPs) – as this will prove to thelender that you can handle a financial hur-dle in the event that it arises.

There are so many things involved in ob-taining a mortgage that it can be easy to for-get some very important aspects ofapproval. By being aware of your credit his-tory and keeping your payment price withinyour means, you'll be well on your way toa sound purchase. If you're currently look-ing at homes, you can contact us at 888-670-6791..n

HOME OWNERSHIP6

Call Equity SmartRealty at 888-670-6791for a FREEconsultation.

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EQUITY SMART 7

When delving into the world ofreal estate and investment prop-erty, there are many terms that

will come up that require further explana-tion. Whether you've never heard the phrase'home equity' before or you have a little fa-miliarity, here are the ins and outs of whatit means and how this asset can help yourfinancial outlook.

All About Home EquityEssentially, home equity refers to your por-tion of the value of your home, and theamount of this figure is important becauseit is included among your assets when de-termining your net worth. If this soundsconfusing, think of it this way: if you havecompletely paid off the cost of your home,the value of your home equity is this totalamount. Of course, because most peopleseek a lender to borrow money from whenthey purchase a home, their home equitywould consist of their down payment andwhatever amount they've paid down on themortgage since purchase.

An Example of Home EquityTo provide further clarification, let's use theexample of a house that has been purchasedfor $300,000. In the case that a down pay-ment of 20% has been provided at the timeof purchase, the equity in the home wouldbe $60,000. Since this amount is the per-centage and cost of the house that's beenpaid down, this is the amount of the housethat is actually owned and this will be fig-ured among an individual's assets.

How Home Equity WorksAs you pay the amount that you owe onyour home each month, you are paying offyour total debt and thereby increasing yourequity. Since this amount of money is con-sidered an asset that belongs to you, it canbe used down the road to buy another homeor invest in other important things like ed-ucation or retirement. While paying off theamount owed on a home is a considerableinvestment, if the value of your home in-creases, this means that you'll still owe thesame on it but your home equity will haveautomatically increased.

As an asset that is part of your financial net worth and can be used down the road to fundother investments, home equity is a very useful term to know when it comes to purchasinga home. If you're on the market for a home and are considering your options, you maywant to contact one of our local real estate professionals for more information. n

Understanding How Home EquityWorks and Why Buying a Home CanBe Your Best Investment

Battery Park City’s Anthony Peterson:Premier Advocate for MWBEs

IN THE COMMUNITY 8

Deteriorating shipping piers onceupon a time dominated thepanorama in The Hudson River in

the Lower West Side of Manhattan, now thesite of The Hugh L. Carey Battery Park CityAuthority (BPCA) that lies west of WestStreet, adjacent to our financial hub andlower Tribeca and is surrounded on threesides by the picturesque Hudson River.BPCA, which has attained global accoladesas an exemplary model for community re-newal, was officially established in 1968,and is a NYS public benefit corporationwhose modus operandus is to plan, developand maintain a community revolving arounda commercial, residential, retail and parkcomplex situated on a 92-acre parcel of land.

Anthony J. Peterson, the Director of Di-versity Programs for BPCA and a longtimesupporter of the New American Chamber ofCommerce, has been honored with the dis-tinction of being one of NYS’s premier ad-vocates for minority and women businessowners (MWBEs). After embarking on hisstellar career that stated while still in highschool and culminated in his current posi-tion, he is empowered with the solemn re-sponsibility of ascertaining that they are incompliance with Executive Article 15a.Under its auspices state governmental agen-cies are legally mandated to award a specific

percentage of their contracts to this popula-tion. BPCA is committed to providing guid-ance to those who are qualified to bid forcontracts. Peterson’s succinct reason fordoing so is because “it’s part of our mission.The Authority believes it’s the right thing todo.”

Since 2001, Peterson has been a majorplayer in helping MWBEs obtain an astro-nomical $750,000,000 in contract awards atBPCA, very easily exceeding the gubernato-rial initiative. With Peterson at the helm itwasn’t necessary for them to scramble to bein compliance. They wanted to correct thewrongs that deprived MWBEs of the chanceto share the wealth.

As Peterson said, “Just to give you a littlebackground. Back in 2010,when the gover-nor came in, we set the goal of 20% [of con-tracts being awarded to MWBEs]. We werebasically at 19% already. Then in 2014 whenhe announced the goal of 30%, we were ba-sically up at the 26-29% range. So we werealways ahead of the curve.”

Entrepreneurs will readily attest to the factthat the bidding process is complex and la-borious, but they can be confident thatBPCA will help them navigate thelabyrinthine bidding process which they doby “conducting workshops, for example, theone we did at the New American Chamber of

Commerce [International & MulticulturalBusiness Expo]. At the workshop we helpnavigate the process especially the paperprocess which is mandatory.” They endorsea competitive public bidding process and so-licit bids based on such criteria as experi-ence, credentials, availability and financialstability.

Peterson continued, “We have our Com-petitive Edge Conference. We work withabout 20 city and state agencies. We were theones that started it….We do this every yearto provide technical training for MWBEs.We help navigate the process.”

Peterson added, “BPCA is working in con-junction with MWBEs in the following cate-gories: services, construction andprofessional services, for example, parkmaintenance, office supplies, electrical com-panies, diving firms that do underwater workfor us here at BPCA. “

Two milestones define their history—firstthat it metamorphosed a dilapidated tract ofland into a successful model for communityrenewal in 1968, and now it built its firstgreen building built in 2003, the Solaire. AsPeterson said, “Speaking of our green guide-lines, we were one of the leaders—we builtthe first green building— the Solaire.” Thisresidential tower was the recipient of the TopTen Green Award by the American Institute

of Architects in 2004, and is the first build-ing designed consistent with the environ-mental guidelines instituted by BPCA; itearned its green label by consuming less en-ergy, reducing peak demand for electricity,fueling heating and air conditioning by usingnatural gas and is free of ozone-depleting re-frigerants.

MWBEs should certainly have an equalopportunity to compete for the billions ofdollars in goods and services procured by thegovernment and the private sector annu-ally—they should be full participants in oureconomic boom. But the shocking and de-plorable reality is that, there still is disparity.But BPCA is committed to removing thatdisparity with Peterson at the helm.n

AnthonyPeterson

HOME OWNERSHIP 9

Laws of Succession for New YorkRelating to ApartmentsIn general, it is possible for a person

who is an occupant in an apartmentleased to a family member to become

a tenant (succeed) after the primary tenantleaves if the family member lived in theapartment for two years or more prior tothe tenant’s departure, or since the begin-ning of the tenancy, or since the com-mencement of the relationship. If theperson asserting succession rights is dis-abled or over 62 years of age then the pe-riod of co-occupancy is only one year.

The minimum periods of occupancy arenot considered interrupted by military duty,enrollment as a full time student, court-or-dered relocation (not involving the lease orgrounds for eviction), temporary relocationbecause of employment, and hospitaliza-tion or other reasonable grounds as deter-mined by the Division of Housing andCommunity Renewal on application.

It is also possible for a member of a "non-traditional" family to gain control of theapartment if he/she can show "emotionaland financial commitment." Courts mayconsider the following:nlongevity of the relationshipnsharing of household expensesnintermingling of finances such as creditcards or bank accountsnengaging in family type activities to-

gethernformalizing legal obligations throughsuch things as wills, powers of attorney anddomestic partnership declarationsnholding themselves out as family mem-bers in public activitiesnregularly performing family functions foreach other

Do I have rights to my mom's apartmentwhen she moves?In general, if you are not disabled or over62 years old, you would be protected bysuccession if you lived with your mothercontinuously two years before she left theapartment. If you are disabled or over 62,you would have to live with your mother

for at least one year prior to her move. If you didn't live in the apartment for two

years before your mother left, you don'thave the right to the apartment and thelandlord need not accept you as the pri-mary tenant. S/he could move to evict you.However, if one of your siblings was in res-idence, he/she might meet the successioncriteria and you would be able to live thereas an immediate family member. Also, ifyou lived in the apartment before and leftonly because you were enrolled as a full-time student, serving in the military, or be-cause of a temporary work assignment, oryou were hospitalized, the period in whichyou were away might not count as an ab-sence.

How do you actually claim successionrights?Succession rights can only be claimedwhen the primary tenant dies or vacates theapartment. At that time, the tenant claimingsuccession should send a letter by certifiedmail to the landlord explaining that the pri-mary tenant has vacated the apartment andthat he/she would like to sign the next re-newal lease. If the primary tenant has diedthe death certificate should also be in-cluded with the letter. The landlord mayask that you forward copies of documentsthat prove you meet the definition of fam-ily member and that the apartment has beenyour primary residence for more than twoyears. When the current lease is up for re-newal that is when you would sign a newlease.

If two family members would like to signthe renewal lease they can do so and bothwill be exempt from paying the vacancy al-lowance provided they meet the require-ments for succession. n

Source: NYC Rent Guidlelines Board. Pleasenote that the information provided herein doesnot represent official policies or opinions of theCity of New York or the Rent Guidelines Boardnor should this information be used to substitutefor advice of legal counsel.

Fire Your LandlordCaribbean American Weekly's pre-purchase education program is known as the Fire YourLandlord Seminar. This seminar is designed to take the mystery out of the home-buyingprocess and prepare first-time homebuyers to make the important choices related to homeownership.

The seminar covers such topics as:nKnowing your financial situationnCredit and credit issuesnThe types of home ownershipnThe role of the lendernUnderstanding the loan-closing processnYour legal rights and responsibilities as a home ownernTax benefits of home ownership

and Become an American Home Owner

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To register: Call 718-722-9217Email: info@mynacc.orgVisit: www.chambercoalition.org

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Location:26 Court Street Suite 701Downtown Brooklyn

MOVING FORWARD10

Understanding Wills & Estate PlanningWills and estates are comprised of

many strategies for families orbusiness owners to consider.

This is a critical planning process that re-quires a professional estate planning attor-ney who understands the client’s goalsrelating to their family or their business andabout their future legacy, that is, to whomthey want the assets to be distributed to.

The areas to consider are the state lawrules that cover wills and intestacy, theownership and trust. What is a probate? Itis a process of “proving” the will; these arepublic records. A court process is necessary;the executor (administrator) is responsiblefor locating the beneficiaries. They alsomust identify and value the assets, do thefiling and pay estate taxes; in addition, theyare required to settle cases and disputes anddistribute the property.

What does the family or business assetslook like upon the death of a spouse or busi-ness partner? Are their assets probate es-tate? Is the property set up or jointlyowned? What is their existing life insurancepolicy? How about retirement plans,401(k), IRA, etc. Are there already proper-ties in a trust? The main question at the endof this process is: who gets this flow of as-sets? The surviving spouse, children, grand-children, charity or Internal RevenueServices (IRS)? Is the property passed bya will or intestacy? How about a deed or acontract? Regarding a will, who are the des-ignated beneficiaries? Selecting the

guardian for your minor children is ex-tremely important. Does the will allow forestate planning? Does the will have instruc-tions for fiduciaries on your managementand investment decisions? Key decisionsalso include a health care proxy and powerof attorney.

Who should be a trustee of the trust? Thestate laws may limit rights if the trustee is abeneficiary. If it is an individual or familymember, should it be a corporation, bank,professional organization or a trust com-pany? Types of trust can be the following:

Trust for Minors, Special Need Trust, Uni-fied Credit Trust, Life Insurance Trust, orMarital Deduction Trust.

There is also a Revocable Trust which agrantor can change or terminate. In an Ir-revocable Trust, the grantor cannot changeor terminate the trust.

Please consult a professional estate plan-ning attorney who understands the federaland state estate tax laws and has a full un-derstanding of your overall assets structureand your family dynamics on how you wantyour assets to be distributed properly.n

Investing In a VacationHome?With approximately one million

people having purchased va-cation homes in the last year,

this type of residence is gaining popular-ity for those who are interested in a homein a beach setting or a vacation hot spot.However, while a second home can seemlike a great purchase and solid invest-ment opportunity, there are different re-quirements that go into this type ofpurchase. If you're considering a vaca-tion home, you may want to be aware ofthe following financial factors:

The Down Payment AmountIf you currently have a primary resi-dence, you may be aware that you don'tneed to put down 20 percent or even 10percent in order to make a home pur-chase, but things are different when itcomes to a vacation home. Because youwill be taking on an additional mortgage,there is greater risk involved, and thismeans you will likely have to put in atleast 10 percent. Because of this, manyhome buyers utilize the equity they havein their first home to make up the downpayment.

About the Credit ScoreMost people who have a credit score ofmore than 500 have the ability to use amortgage product and purchase a home,but if you're buying a second property,you'll need a higher credit score in orderto facilitate the purchase. Because thereis more risk involved, lenders will wantto make sure you're a good bet.

The Income RequiredSince you've been through the mortgageprocess for your first home, you're prob-ably aware that your debt-to-income(DTI) ratio needs to be a certain amountin order to qualify for a mortgage. Whileyour DTI for a primary residence may bea little bit higher since it's your only pay-ment, this ratio will be lower for your va-cation home since it's higher risk. Thismeans you'll require a slightly higher in-come than for your primary residence inorder to get approvedn.

FINANCIAL EMPOWERMENT 11

New Year's is a time to both reflecton the past and set importantgoals for the future. Why not in-

clude improving your personal finances inyour list of resolutions? The Departmentof Consumer Affairs (DCA) offers thesetips to help you manage, grow and protectyour money in 2017 and beyond.

1. Check your credit report and buildyour credit history. You are entitled to afree credit report every year at annualcred-itreport.com. Be sure to correct any errors.Use your credit card only for purchasesthat you can pay off in full every month.Using a credit card responsibly will helpyou build your credit history and increaseyour credit score. A strong credit reportmeans you will have lower interest rateson loans, which increases your disposableincome.

2. Open a safe bank account. If you don'thave a bank account, start the New Yearby opening one that’s safe, affordable andright for your needs. All New Yorkers canopen an NYC SafeStart Account—theCity’s FREE bank account with an ATMcard, no overdraft fees, and no monthlyfees if you have a minimum balance ofonly $25 or in some cases even less.

3. Develop and stick to a budget. Start bylooking at your credit card and bank state-ments for the past quarter. If you arespending more than you are earning oraren’t able to save enough, then expensesshould be reduced. Budgets are only asgood as your ability to stick to them so youmust be disciplined about following yoursto get your finances in order.

4. Make a plan to pay down your debt.Even if you have personal loans and homemortgage accounts, there is a way out ofdebt. A free financial counselor can helpyou negotiate with creditors, consolidatepayments and create a payment plan. Ifyou are being harassed by a debt collector,check that they are licensed and demandwritten proof of the debt.

5. Enroll in an automatic savings plan.Even if it is a small amount, save on a reg-ular basis so you are prepared in the caseof an unexpected emergency such as ahealth problem or job loss. Consider whatyou will need to cover the down paymenton a home, establish your children’s edu-cation fund and grow your retirement nestegg. An automatic savings plan helps yousave effortlessly using direct deposit or au-tomated transfers.

6. File your taxes and claim your re-fund. Did you know that the Earned In-come Tax Credit (EITC) could be worthup to $10,000?

7. Plan for retirement. If you have theopportunity to save for your retirementthrough a plan sponsored by your em-ployer, you should budget to contribute aset amount each month so you reach themaximum limit each year. You also cancontribute to a traditional Individual Re-tirement Account (IRA) or Roth IRA.

8. Be an informed consumer. If some-thing sounds too good to be true, it proba-bly isn’t true. Get contracts that are clearlywritten, make sure you understand thembefore signing and keep all receipts fromyour transactions. Before selecting a ven-

dor, shop around, and get quotes and ref-erences. If you are buying a used car, hir-ing a home improvement contractor orgoing to an employment agency, check tosee if they are licensed and get tips by vis-iting nyc.gov/consumers.

9. Protect yourself from identity theft.Create unique passwords for each onlineaccount and make sure they have capitaland lowercase letters, numbers and sym-bols. Never share your password with oth-ers and change it several times a year. Also,avoid giving personal information online,by email or on social media sites. If youare the victim of ID theft, report it to yourlocal police precinct and file a complaintwith the Federal Trade Commission (FTC)at ftc.gov/idtheft or call 1-877-ID-THEFT(1-877-438-4338). Place a fraud alert onyour credit report with one of the threecredit reporting agencies: Equifax, Exper-ian or TransUnion.

10. Get financial counseling if you needhelp. Learn how to reduce debt, get helpnegotiating with your creditors, understandyour credit report, create a budget, im-prove your credit score, open a bank ac-count, and start saving for emergencies andthe future.n

10 Resolutions to Fix Your Finances

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