How to Read and Analyze Co-op Financial Statements скачать в хорошем качестве

How to Read and Analyze Co-op Financial Statements

How to Read and Analyze Condo Financial Statements: https://www.hauseit.com/condo-coop-bu... Save up to 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer... In this Hauseit tutorial, we will be showing you How to Analyze the Financial Statements for a Co-op. If you're watching this video, you're most likely a home buyer, but you could also be a real estate attorney or even a real estate agent. Real estate attorneys are the ones who are tasked with what's called buyer due diligence at the time of an accepted offer and prior to signing a contract. They will generally review the most recent two years of financials as well as other building documentation such as the offering plan the purchase and sublet applications as well as the house rules. They may also review the building's board minutes if those are available. If you're a real estate agent you're probably watching this video so that you can become familiar with how the due diligence process works as well as generally speaking how to interpret financials. It's a very good idea to be able to review financials even if you're not at the attorney. If you're the buyer it's a really good idea because ultimately you're the one who is putting your money on the line. So in any case, you never really want to rely on somebody else but it's good to know that your attorney will review the financials for obvious red flags prior to advising you to sign the contract. Now just a quick note before we go into the analysis. If you are a buyer, friendly reminder that your closing costs at least in New York City can be quite high and it is possibly helpful for you if you'd like to try and calculate them you can visit our Buyer Closing Cost Calculator by navigating to the calculators tab here on the top of Hauseit website. Navigate to the Buyer Closing Costs Calculator a quick preview of what it looks like over here. So you can put in your sales price, say $1.5 million. You can put in the amount financed. You can choose the property type and it will give you an overview of your buyer closing costs. You can see if you're buying anything else apart from a co-op that the closing costs can increase substantially. If you're buying for example, a condo new construction your closing costs are north of 5.5%. So just going back here again, there's the Buyer Closing Cost Calculator. It's more likely that you're buying a co-op and if you are you can also look at the Flip Tax Calculator for for sellers that'll give you a sense for how much you'll have to pay when you're selling and also, you have the Mansion Tax Calculator as well as the Home Affordability Calculator, which also has a nifty ability for you to involve post-closing liquidity into your analysis so that you can calculate true affordability. So let's jump into the financials. This here is a sample co-op financial statement from a building here in Manhattan. The first thing you want to do when you open up your financials is to look at the independent auditors report. Now this is usually at the top of the financials and what you really want to look for is the opinion section and you want to make sure that base they say that the financials 'present fairly in all material respects' the financial position. You're essentially looking for caveats or carve-outs specifically you don't want to see restrictive language such as 'subject to' or 'except for' if you see. If you see anything like that, you're going to want to take a little bit of a deeper dive into the financials just to make sure that there are no obvious issues. So going back into the financials assuming you've read the opinion you can move forward. Now a quick note smaller buildings may not always have what's called audited financials and so if the building's financials are unaudited, you're gonna see a cover letter which says that the firm that's what the financials together basically has no opinion that's totally normal. If the financials are unaudited, it's not necessarily a red flag. If the financials are not audited the reason being is they are significantly more expensive to prepare and therefore many smaller buildings opt to pass on this added expense. So moving forward, the first thing we may want to look at is in the balance sheet. Disclaimer: Hauseit and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial and accounting advisors before engaging in any transaction. Analyzing Condo and Coop Building Financial Statements in NYC: https://www.hauseit.com/condo-coop-bu... Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer... #hauseit #hauseitnyc https://www.hauseit.com