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First, while everyone is quibbling about the tax/reporting issue, no one seems to be noticing the big picture. The LL is obviously hot to get this apartment back. He's been making steadily increasing buy out offers. If the OP is serious, he should get an attorney, and not only have the attorney structure the deal, he should have the attorney front end the negotiation, and push for a significantly higher amount.
If the LL is offering $75K, I bet he's be easily willing to pay $100K and probably more. I'd open at $150-175K, and work toward $125-150K.
And then just pay the taxes on it.
Exactly why someone in this situation needs an attorney experienced in this kind of deal.
If the OP is serious, he should get an attorney, and not only have the attorney structure the deal, he should have the attorney front end the negotiation, and push for a significantly higher amount.
That's it--get greedy. Pretend that you're actually entitled to get paid for something you don't even own.
^^there is a reason why his offers are going up & up. What it is worth depends on a lot of variables. I'd heard of RC apartments going for well north of 6 figures in nyc....cash is always king like it or not
I do not condone it but I don't pretend it doesn't happen....meaning various frauds like tax evasion, getting govt benefits, etc etc happen everyday.
As one stated previously, there is a limit to what some property owners are willing to pay for buyout offers. Again per the article in last Sunday's NYT real estate section a few thought they could negotiate a higher offer from the LL for their RS apartment and were told "no".
The story was about tenants (mostly RS) living in buildings that are undergoing major construction. These are buildings being converted from rental to luxury/high end condos. Cannot recall each building but one was the Evelyn on the UWS, and the other as a mostly market rate apartment on East 68th and Madison with a few RS tenants left.
Each tenant interviewed turned down offers of a buy out but one did counter offer (in the high 300K's IIRC) because she thought that is what her RE lease was worth. Developer (HFZ) said "no" so she is stuck living in construction hell as the building around her is being gut renovated.
Of course for those that opt to remain under such conditions they will sooner or later be living in a brand new "luxury" building. But if history is any guide they will also be treated as red-headed step children at a family BBQ. Unless otherwise provided for in their original leases any of the new amenities offered to new residents will be off limits. This means aside from such common areas as lobby and hallways RS tenants living in such condo converted buildings are just that; playrooms, gyms, laundry facilities, etc... all can be reserved for new high paying residents.
True some property owners will offer big money to get a tenant out of a building, but it all depends upon many variables. Generally the stronger the protections equals a larger offer, however again it depends on what is being planned.
i just keep thinking of our tenant who said no to 100k and kept thinking we would up it. eventually she had a stroke and died and got nothing . we got the apartment back , sold it and that was the end .
So our landlord wants to buy us out for $75,000 (how reasonable is this exactly? I'm in the lower east side). I'm wondering what's best to take this sum of money in - cash vs. check. We're leaning towards receiving it in cash because the check could affect my financial student aid, we'd be forced to pay taxes (which I'm guessing would take up a good portion of the money). Several friends have told me to take it in cash as well. Though several said a check's the better option. Because the thing is, we're planning on taking this money and using it for a down payment in a cheaper city. So I guess my main questions are:
1. Is check or cash best for my situation? When i say cash, I mean physical dollar bills, unless there's a better option I don't know about (money order?) And then get some relatives to write us checks of less than $10,000 so that we don't have to report it?
2. Is it worth it to get a lawyer for this type of thing? Figure out what the apartment is actually worth and try to negotiate more money? Is a legal contract / agreement necessary?
Personal experiences of buyouts in NYC are appreciated too. Thanks, guys.
Get in check or money order, something where there will be proof of this financial transaction. This is not the old days where we all deal in cash, anything in the thousands range should be in check.
Whats the address or name of landlord, in case he owns other buildings and someone on here lives or knows someone who lives in them and can get ready for the big bucks hehe
Like it or not (and personally I don't) NYS/NYC has essentially created a form of property, the rent regulated lease. The LL wants to buy this back from the tenant (the OP here). The LL has been trying to open negotiations on this for some time. The OP sounds like he's ready to deal. If he is, he should do it properly.
And while I don't like rent regulation, in point of fact, if the LL is trying to throw money at the OP to get out, it's because he thinks he'll make even more money.
Quote:
Originally Posted by jackmichigan
That's it--get greedy. Pretend that you're actually entitled to get paid for something you don't even own.
So our landlord wants to buy us out for $75,000 (how reasonable is this exactly? I'm in the lower east side). I'm wondering what's best to take this sum of money in - cash vs. check. We're leaning towards receiving it in cash because the check could affect my financial student aid, we'd be forced to pay taxes (which I'm guessing would take up a good portion of the money). Several friends have told me to take it in cash as well. Though several said a check's the better option. Because the thing is, we're planning on taking this money and using it for a down payment in a cheaper city. So I guess my main questions are:
1. Is check or cash best for my situation? When i say cash, I mean physical dollar bills, unless there's a better option I don't know about (money order?) And then get some relatives to write us checks of less than $10,000 so that we don't have to report it?
2. Is it worth it to get a lawyer for this type of thing? Figure out what the apartment is actually worth and try to negotiate more money? Is a legal contract / agreement necessary?
Personal experiences of buyouts in NYC are appreciated too. Thanks, guys.
First off, congrats on 75k which can be used as a tool for empowerment else where in America. 75k wont do much in NYC.
I don't think you need a lawyer, but to make things transitional, smooth and things that you don't understand a lawyer might be needed but mind you lawyers are not cheap. This is an earned income and it has to be reported or else the IRS and NYS department of taxiation will haunt you. 75k buy out is a lot of money. Me personally I would not negotiate anything 75k is a lot of money. I would high tail out and run out of the city with that money. I'd just be on the safe side and do a 1099, if you don't understand anything than get a lawyer.
First off, congrats on 75k which can be used as a tool for empowerment else where in America. 75k wont do much in NYC.
I don't think you need a lawyer, but to make things transitional, smooth and things that you don't understand a lawyer might be needed but mind you lawyers are not cheap.
This is not true, real estate lawyers are cheap especially if it involves a simple drafting of a contract and reviewing. It should not cost OP more than $500 for legal advise and closing of the deal. In addition my accountant only charges me $75 for tax filing per household while saving me thousands in tax payment, if I would have done it myself through turbo tax.
Most lawyers don't make a lot of money except for corporate lawyers, this is why corporation get away with a lot more than the average guy would ever be able to. The most expensive lawyer for most people would be a defense lawyer when you are in criminal and civil court.
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