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Professional Co-Signers and Guaranteurs

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Professional Co-Signers and Guaranteurs

Postby JaneB82 » Fri May 04, 2012 10:01 pm

Do many people use professional co-signers/guaranteurs to rent apartments in NYC?

In the case of a prospective tenant whose credit has been ruined by a demand for several months' rent and fees on a lease that was vacated because of a very dangerous situation, would landords accept a professional co-signer/guaranteur? The situation is such that the tenant would have had a legal right to vacate the lease under the circumstances, but she did not know this (should have requested it in court at the time).

Would NYC landlords overlook this with a professional co-signer and rent in advance?
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Postby TenantNet » Sat May 05, 2012 1:26 am

What do you mean by professional? Never heard the term applied to co-signers. Usually it's one's parents with the financial means to pay the rent.
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Postby JaneB82 » Sat May 05, 2012 10:24 am

There are companies that you can hire as co-signers or guaranteurs for apartment rentals, mortagage applications and other loans.

You first have to apply, and if you are accepted you most likely pay them about one month's rent as a fee. They then become liable for the entire amount of the lease should a tenant default. Or for a lower fee, they will be liable for 3 months' rent only.

There must be quite a few people in NYC who for one reason or another don't have great credit. How to they find a roof over their heads? And surely if you pay some months in advance...

I know that business comes before people here, but I cant believe that everyone who rents in Manhattan is cookie cutter perfect on paper, with problem-free, robotically conforming lives.
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Postby TenantNet » Sat May 05, 2012 11:02 am

Maybe there are such companies, but I would think the cost would be inordinate or a scam. You might get a better deal from your local Goodfella.

Manhattan is cookie cutter perfect on paper, with problem-free, robotically conforming lives.


You must be new to NYC. Ever since Bloomberg and Quinn took over, that describes most new tenants. That's what they call displacement.
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Postby ronin » Sun May 06, 2012 2:31 am

It sounds like a useful service but I haven't heard of one here. In NYC the general plan for people without perfect credit or deep pocketed cosigners is the homeless shelter. Bloomberg and his pet lackey Quinn seem to enjoy harassing the homeless with bogus housing programs and disrupting the availability and safety of shelter.

And Tenant, the goodfellas have upped their rates considerably to keep up with the competition. Legal lenders (I use the term loosely as it is referring to companies breaking NY usury law but following federal law and another state's law) are charging a whopping 489% for a 3 week loan.

Yes, you guessed it. Even the loan sharks are getting displaced by corporate competition...
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Postby TenantNet » Sun May 06, 2012 8:47 am

This is how you get around it ...

Form a LLC (about $100 filing fee), then claim you're a developer. You don't have to own the land as Bloomberg and Quinn will help you get the land from someone else by abuse of Eminent Domain laws.

Then take about $10,000 and contribute it to Quinn's campaign for mayor in 2013. You can bounce the money through other people in your office for friends, calling them "retired" or "housewife" to get around reporting requirements. That happens all the time.

For another $10,000 hire one of the Quinn-approved lobbying firms. Not required, but helpful. They run fund raising parties for Quinn, so you might get double your money there.

So now, without land (see above) or financing, just announce to Crain's and other real-estate-owned media your plans to build something outrageous in one of Manhattan's low-rise neighborhood. Anything will work except maybe stadiums, or Walmart ... the latter because Quinn is still sucking-up to Stuart Applebaum of the Retail Workers union for its support during the campaign.

Applebaum, as you might remember from last week, went apoplectic because Quinn finally supported the so-called living wage bill that had been so watered down (by Quinn) that only a few hundred workers in the entire city would benefit. That didn't stop Applebaum from pulling a few dozen troops out for a City Hall press conference where one of the "troops" went rogue, called the mayor "Pharaoh Bloomberg" and Quinn pretended to be upset and walked out.

Well, in any case, now all you have to do is get City Planning and the NYC EDC/IDA to move the project. The latter will give you tax-free municipal bonds. What that means is that the city will pay for up to 60% of your project. Not kidding, it happens every day. You also might get low-income tax credits.

City Planning will allow you to build a much higher building by promising fake affordable housing to all the poor people making up to $150,000. That's a scam program called Inclusionary Zoning, supported by Quinn and all Democrats feeling the need to claim they support affordable housing and "working people."

And if that's not enough, you can use Vito Lopez's favorite scam, which is 421(a) Housing. While Inclusionary Zoning allows you to -- in some cases -- build an extra 20 floors (remember, each of those higher floors can be sold for up to $1,000,000 each), the 421(a) housing, or 80/20 as it's often called, will give you tax rebates for as long as the building's mortgage. All you have to do to get that is declare 20% of the units to be rent stabilized. But that's not hard as there's no enforcement by DHCR anymore, the courts are bought (Ronin, you will attest to that), and the so-called RS units can start at $3,000 or more.

The point of all this is that who needs loan sharks when all the Goodfellas are in City Council and the NY Legislature?
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