THE CURRENT STATE OF REAL ESTATE | QUEENS, NY
- HARDEST HIT INDUSTRIES Restaurants, Hotels, Retail, & Offices
- MORATORIUM ON RENT & EVICTIONS has caused revenue to drastically decline for property owners
- NON-PAYMENTS Owners are seeking deferrals from their banks due to non-payments on rent
- INABILITY TO COLLECT RENT has escalated the hardships to pay mortgages, real estate taxes, and utilities for many owners.
- VILIFICATION OF LANDLORDS has given the population the emotional right or excuse not to pay their rents.

HOW TO PREPARE & WHAT TO DO IN THE WORST CASE SCENARIO
This is a quick guide to to best prepare potential property owners for forbearance agreements, loan modifications, or mortgage agreements to avoid a potential default on a property. Follow the steps below before going to your bank to prepare for the financing process.
STEPS FOR ACTION
- SCHEDULE TIME WITH YOUR ACCOUNTANT to update everything you may need for your bank in regard to
negotiating your mortgage - GET YOUR PERSONAL FINANCIAL STATEMENTS (must be current – within 60 days)
- GET BANK & BROKER STATEMENTS (must be current – within 60 days)
- PREPARE FILES WITH ALL LEASES Make sure all documents are dated and signed.
- DOCUMENT ALL ABATEMENTS AND DEFERRALS, prepare copies signed by landlord and tenant
- ADDITIONAL INFORMATION Current K-1’s. articles of organization 2 yr. of personal and business tax returns
- GLOBAL CASH FLOW statement must be prepared for owners with more than one property (must be current – within 60 days)
It takes a significant amount of time to put together this documentation. You need all of this information in order to start the financing process at any institution. I suggest that this is done professionally with the CPA firm that the investors and owners use for tax returns to put this package together.

RESCUE FINANCING| SOLUTIONS FROM THE LIQUIDITY SOURCE
Now you’ve heard all the problems the NY real estate industry is facing — but what are the solutions? These are some real examples and how we’ve used creative financing strategies to customize a solution for our clients.
- If an owner has sufficient liquidity, there is a reasonable chance they can set up a reserve at the bank, to cover mortgage payments and real estate taxes for 2 years. This will help establish a forbearance agreement.
- If an owner or landlord has multiple properties but the DSCR is under ratio, there are some banks that will consider “asset based loans” on the stable property.
- There are private lenders that will also lend on the stable asset with blinders on the global cash flow.
- Once you get the additional cash, you can potentially make a deal with your bank on forbearance, loan modification, potential lower rates or interest only deal. In all cases you will need to show the bank a plan and how you’re going to pay them back past interest and mortgage payments over time.
FINANCING EXPERTS AVAILABLE TO ASSIST
Owners and investors should consider finding and working with a commercial finance expert, not only a trusted advisor, but someone that is a “solution provider”. Working with someone who specializes in finding access to liquidity customized to your specific needs as an investor and property owner.
