What percentage vacent is too high in a co-op? (for sale, real estate)
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There are 10 buildings 40 apts in each. So 400 apts altogether. 24 of them seem to be up for sale. 24 apts is 6%. Does this sound normal or like ppl are fleeing?
It doesn't necessarily seem that bad to me given the current economic/real estate climate.Even in the best of climates there is probably about a 3 to 5% turnover rate per year in most buildings.People keep dying and having to move for one reason or another no matter what is going on.Because of the current situation things are taking much longer to sell . Apartments that would have sold in a couple of months a year or so ago now take 6,8 and 10 months to sell so it makes sense that there would be an accumulating buildup of inventory( a glut) in the market.
Thank you for the replies. I was thinking the 6% may be the economy too because it looks like places there had been on the market a while. I guess when I look at the co-ops financials w/ a lawyer we'll see if they can weather it. Thanks again.
Thank you for the replies. I was thinking the 6% may be the economy too because it looks like places there had been on the market a while. I guess when I look at the co-ops financials w/ a lawyer we'll see if they can weather it. Thanks again.
There are a couple of other things you can do.
1) Go or have your lawyer go and read all of the minutes of the board meetings in the last couple of years.You have a right to do this but a lot of people don't bother because you have to go wherever they keep the minutes.They are usually at the office of the management company and you sometimes have to travel a bit.They will not and are not required to send anyone copies of the minutes so you have to go.If there are any outstanding issues like planned major capital improvements,problems that could lead to major capital expenditures,delinquent shareholders,approaching balloon mortgage payments and other such things you will see it in the minutes.These things are not always apparent in a standard year end financial statement.
2) Go and hang out at the entrance to the building or complex in the evening when people are coming home from work and approach them and ask them how they like the building,if there are any problems,etc.You might think this sounds crazy but I did it when buying and it was great.I stood out there from 5 to 7 pm and met about 20 of the 120 owners in the building.If people have a gripe they won't hold back.If they are happy they will say so.I heard both bad and good but overwhelmingly good and it helped me in my process.
I also found out that there was/is a large number of teachers in my building and I am a teacher, which I liked.
There are a couple of other things you can do.
1) Go or have your lawyer go and read all of the minutes of the board meetings in the last couple of years.You have a right to do this but a lot of people don't bother because you have to go wherever they keep the minutes.They are usually at the office of the management company and you sometimes have to travel a bit.They will not and are not required to send anyone copies of the minutes so you have to go.If there are any outstanding issues like planned major capital improvements,problems that could lead to major capital expenditures,delinquent shareholders,approaching balloon mortgage payments and other such things you will see it in the minutes.These things are not always apparent in a standard year end financial statement.
2) Go and hang out at the entrance to the building or complex in the evening when people are coming home from work and approach them and ask them how they like the building,if there are any problems,etc.You might think this sounds crazy but I did it when buying and it was great.I stood out there from 5 to 7 pm and met about 20 of the 120 owners in the building.If people have a gripe they won't hold back.If they are happy they will say so.I heard both bad and good but overwhelmingly good and it helped me in my process.
I also found out that there was/is a large number of teachers in my building and I am a teacher, which I liked.
I don't think your attorney can see the minutes unless there's an accepted bid. Certainly he/she can't see the financials unless there's an accepted bid.
I don't think your attorney can see the minutes unless there's an accepted bid. Certainly he/she can't see the financials unless there's an accepted bid.
Yes,that's correct.You would do this (the minutes) after after they accept an offer from you and before you sign a contract.
You don't want to rely on it exclusively but banks have gotten really good at sniffing out problem buildings too.They keep lists of buildings that have questionable underlying mortgages,too many rented out units or where there are shareholders behind on maintenance or loan payments.Sometimes they charge higher interest rates or won't lend at all in theses buildings.
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