Hard Money Co-Ops? What is a Co-Op?

Rehabbing, Fix and Flip, Rental Properties
1

On Blazeic Funding web site in the program II, the guide lines state that it is used for residential properties only. 1-4 family, condo’s, townhomes OK. No mobile homes or CO-OPS no exceptions. Can anyone please explain what a CO-OP is? Thanks for your :help

2

Here is a good definition : http://en.wikipedia.org/wiki/Housing_cooperative

3

I would avoid co-ops if your looking to rent. it out In a co-op, you own shares in a corporation, you don’t own the individual unit–you just have a right to a space in the building. The underlying mortgate on the building is ususally not paid off yet so your at much more risk if the other owners default. Also, they often have restrictive rules about renting the units out. There are many horror stories about co-op boards. Even to do a fix and flip you could have problems with the board. Unless your in one of the few places where there are a tons of them like New York City, I would avoid them completely.