Bayport Funding | The Smart Money Lender

VOLUME 2 | Q2 2020

BAYPORT FUNDING IS OPEN AND FUNDING

We are fully operational and remain committed to the safety and best interest of our staff and our borrowers. We continue to fund business purpose loans for experienced real estate investors.

Online applications, fast underwriting process, remote closings.
Contact us today to get funded.

BORROWER Q & A

Q: Are you still lending?
A: Yes. Bayport is lending on 1-4 family properties, fix and flip, at 80% LTC and 60% ARV.

Q: Do I have to make payments?
A: Your loan was underwritten with 6 months’ reserve of interest payments, real estate taxes, and insurance. These loans are not dependent on rental income to support payments, and borrowers should be well positioned from a liquidity standpoint to handle their payments.

Q: Are there exceptions?
A: There is a small group of borrowers that have excellent payment histories who have been extraordinarily affected by this crisis. We are working with them on an individual basis after reviewing their written impact statements and verifiable documentation.

Q: Have borrowers been able to flip their homes and close?
A: Yes. Borrowers are paying off their loans through selling their properties to end users. There are many banks that are still closing on these transactions. If you are in contract and your buyer says their bank has the inability to close, contact us and we will be happy to refer you to banks that are closing.

Q: What happens if my credit score goes down due to a Covid-19 related reason?
A: Your first step should be to reach out directly to credit card companies, other creditors, and the credit bureaus. You may be able to work out a payment plan with credit card companies and other creditors. Additionally, credit bureaus may allow you to add a 100-word consumer statement to your credit report to explain your situation. Most importantly, continue to pay what you can: lenders and creditors still expect timely payments.

Q: What is the ETA for a reintroduction of your low-doc perm refinance program?
A: The state of the rental market is still unclear, and our low-doc program is underwritten primarily by DHCR and rental income. Until we can determine that rental tenants are making consistent payments in full, we cannot comfortably underwrite loans using that criteria. We do expect to reintroduce the product when the economy begins to reopen.

HOT TOPICS

New York State Senate Bill S3060e – NY Fix & flip tax
If passed, the bill will Incorporate an additional 20% tax on properties sold within one year and 15% tax on properties sold after one year but less than two years after purchase.
>> READ MORE

Coronavirus hammers the already battered NYC luxury housing market
The high-end market is suffering already. The middle end of the market is clicking on like there's nothing wrong with it, and the low end of the market has actually gotten stronger surprisingly.
>> READ MORE

Welcome back to your post-corona office. You probably won’t recognize it
Thermal cameras, bacteria-fighting HVAC systems and contactless coffee machines. Welcome back to the office – you may not recognize it.
>> READ MORE

The COVID-19 Era: What Every Real Estate Investor Needs to Know
Investors armed with detailed information about how commercial real estate markets typically operate during risk-off environments are well-positioned to identify opportunities when volatility reigns.
>> READ MORE

PRO TALK

What to do if your next real estate investment property
doesn't have a natural gas hookup

If you're looking at your next real estate investment in the five boroughs and the property does not have natural gas hookup, here's what you should know.

All work on gas piping systems must be done by:
- 1.Licensed Master Plumber; or
  2.Person with a gas work qualification; or
  3.Person with a limited gas work qualification
All gas pipe final inspections must be performed by Buildings Department inspectors in the presence of the permit holder, Registered Design Professional, or Construction Superintendent.
Check for availability
The first thing you should do is contact the energy provider to confirm the availability and proximity to existing gas facilities. The type and/or size of gas service requested by a customer may not be available at a specific location. Gas service may only be available through special negotiation and at the expense of the customer.
Apply for natural gas service
Now that you know that natural gas service is available, an application for any new, additional or an alteration to an existing service should be made as far in advance as possible to ensure adequate time for engineering and construction details to be arranged.
Check for underground lines
By law, excavators and contractors working in New York State must contact 811 (New York 811 in the five boroughs of NYC and Dig Safely NY in Westchester County) at least 48 hours but no more than 10 working days (excluding weekends and legal holidays) prior to beginning any mechanized digging or excavation work to ensure underground lines are marked. Excavators and contractors can also submit locate requests online.

For safety reasons, homeowners are strongly encouraged to call as well when planning any type of digging on their property. For excavation work completed on personal property, it is the contractor’s responsibility—NOT the homeowner’s—to contact 811.
Where will the gas meter be located?
1-3 Family residential gas meters will be placed outdoors. 4 –dwellings and larger, commercial and mix-use will be placedoutdoors unless “Waiver” exceptions apply.
Does the gas meter need to physically protected?
Yes, gas meters, regulators and associated gas piping that may be subjected to vehicle damage must be adequately protected. Pipe posts or bollards shall be installed by the customer. Certain installations may require more substantial protection.

For a full list of NYC plumbing regulations and requirements, please visit https://www1.nyc.gov/assets/buildings/pdf/2018_Gasworks.pdf

RECENT TRANSACTIONS

Paterson, NJ $165,000	Wading River, NY $272,000
South Ozone Park, NY $810,000	Mastic Beach, NY $188,000
Shirley, NY $252,000	Jamaica, NY $615,000

THE LEGAL CORNER

Affar Baksh, Esq.

Closings During the Coronavirus Pandemic

1. How has the Coronavirus pandemic affected the closing process?
Definitely added many hours initiating and executing a contract of sale; however, made it very easy for me because clients signed the lending documents without me present at times. I think this would not be accepted in the future. If, however, this is the new norm, then this would be awesome for me because it would save me 3-4 hours per deal. We will have to wait and see.

2. What steps has your practice taken to remain open for business?
Upgraded servers and used VPN and online legal software to keep seamless operation for staff.

3. How are clients reacting?
Reluctantly accepting the situation.

4. How long do you anticipate until things go back to “normal”?
Next spring only because of economy. I think lenders and clients are afraid of loss of employment. I am doing 15-20% of what I used to do.