i am in the midst of aquring or trying to aquire a co-op which i thought was the same as a condo but now I am learning this may not be the case. it’s a good deal but I am worried now that there may be problems with the co-op board. Are there any investors out there with experience in co-ops? Are there any nuances that that neec to be taken into consideration? i am looking to flip this property.
Thanks for any help in adavance.
Co-ops are the purchasing of shares. Each unit has a certain amount of shares and many times Co-Ops will set a mininum you can sell your shares for. Also the financing is much different. You do not pay property taxes and the it is built into the maintance fees since you do not own the land, the Co-OP does. Also they generally require much more finacial data in the purchase process and chances are will not allow flipping so easy in this market. Also banks have issues with seasoning of title which is generally 12 months now. Banks will not want to see you making a hugh profit and may not approve a new buyer so fast.
Find a really experiences mortgage broker for advise and I am sure they can recommend a realtor to answer some questions that deal with Co-Ops. Best thing would be to look for brokers in NYC since there are tons of Co Ops and they know the ins and out.s…
Thank you yrush for your response. once i learned this unit was a co-op and not a condo i figured what you said might be true. Can you tell me how this might affect appraisal of the unit? I have a deal with 50- 70k equity in it maybe more based on what I think it will appraise for, however, these numbers are coming from comparables of other properties in the immediate area that are all condos. I was gonnna use that to justify value to pass on to another investor or end buyer. this unit is in the only co-op village in an area of other villages. it’s definately one of the best units in the best development but the comps i’ve seen are for condos not co-ops. Again any input would be appreciated.
I really do not know about comp on a Co-Op. Also you may have a contract or accepted offer but will the Co_op allow the purchase price. It is stock shares your recieving they may not want to devalue the stock.
Your purchase and your end buyer’s purchase may also have to be approved by the board. If they don’t like you for any reason your deal might be dead.