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Old 01-11-2008, 09:14 AM
 
490 posts, read 1,595,828 times
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Quote:
Originally Posted by EdJones View Post
When I was in Texas I had a friend who was co-owner of a very small rental building. At the end of the year, if they had a good year and the building didn't need any major repairs or if any of the residents defaulted on their monthly chargers, whatever was left as "extra money (after paying the underlying loan and maintenance people)" was given to the owners as dividend. So they would make extra money that year by means of being share holders of that building.

Does that make sense?

Based on your response I assume that a coop, even if is doing incredibly well financially, would keep any extra money in reserver for future repairs instead of giving it to the share holders at the end of the year.
___________
That dividend in Texas sounds nice but I have never seen anything like that in NY. Maybe someone can tell us if there is such a thing in the NY area?

For what I know, yes, co-ops do keep all their surpluses. And even when they have a surplus, they still give you especial assessments for things such as heat. Because the co-op is a corporation, they are always afraid to go broke-that would put everyone in jeopardy-so having surpluses is an important safety net. Remember also that co-ops in NY are usually in older buildings that need a lot of up-keep...surpluses will not be huge.
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Old 01-11-2008, 11:48 AM
 
Location: NYC
364 posts, read 1,784,010 times
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Quote:
Originally Posted by ambar371 View Post
___________
That dividend in Texas sounds nice but I have never seen anything like that in NY. Maybe someone can tell us if there is such a thing in the NY area?

For what I know, yes, co-ops do keep all their surpluses. And even when they have a surplus, they still give you especial assessments for things such as heat. Because the co-op is a corporation, they are always afraid to go broke-that would put everyone in jeopardy-so having surpluses is an important safety net. Remember also that co-ops in NY are usually in older buildings that need a lot of up-keep...surpluses will not be huge.
That makes a lot of sense. I'll guess I enjoy the tax break instead

Guess what? I was looking through the appraisal report and found that this coop has a nice underlying mortage which runs in the millions. Nevertheless, since they have so many apts, the financial situation seems to be pretty good according to the report. They have 75% owner occupancy in over 200 units. According to my broker that seems to be good.

Besides, the broker told me that pretty much all coops have underlying mortages, with the exception of some that are virtually debt free.

What's your take on that?
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Old 01-12-2008, 11:42 AM
 
490 posts, read 1,595,828 times
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Quote:
Originally Posted by EdJones View Post
That makes a lot of sense. I'll guess I enjoy the tax break instead

Guess what? I was looking through the appraisal report and found that this coop has a nice underlying mortage which runs in the millions. Nevertheless, since they have so many apts, the financial situation seems to be pretty good according to the report. They have 75% owner occupancy in over 200 units. According to my broker that seems to be good.

Besides, the broker told me that pretty much all coops have underlying mortages, with the exception of some that are virtually debt free.

What's your take on that?
_____

It surprises me to know that there may be co-ops without underlying mortgage! I agree with your broker, 75% owner occupancy is good (the higher the better). If it wasn't, you'd hear from your lender pretty quickly. They do not like to finance co-ops with too many rentals.
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Old 01-12-2008, 04:21 PM
 
67 posts, read 233,549 times
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Mahopac is technically in Putnam.
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Old 01-14-2008, 07:54 AM
 
Location: NYC
364 posts, read 1,784,010 times
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Quote:
Originally Posted by ambar371 View Post
_____

It surprises me to know that there may be co-ops without underlying mortgage! I agree with your broker, 75% owner occupancy is good (the higher the better). If it wasn't, you'd hear from your lender pretty quickly. They do not like to finance co-ops with too many rentals.
Is that because too many rentals imply lack of financial stability

Well, what my broker said is that there are very few coops that became coops back when the whole thing started and have paid their underlying mortages over the years, even the ones used for renovations and such. But I don't really know about this info.
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Old 01-17-2008, 11:54 AM
 
Location: NYC
364 posts, read 1,784,010 times
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Default Met With the Coop Board

Update:

We finally met with the Coop Board. They will provided with an answer within the next couple of business days.

I must confess that it wasn't as bad as I thought it would be. The board was very friendly and they interview went well.

Now, I know that doesn't mean they will accept us, but at least the interview process wasn't as painful as other people have told.

Now the wait begins
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Old 01-17-2008, 12:18 PM
 
490 posts, read 1,595,828 times
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[quote=EdJones;2508058]Is that because too many rentals imply lack of financial stability

_________

Yes.

and...
Congratulations on your board interview!!!
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Old 01-18-2008, 08:23 AM
 
Location: NYC
364 posts, read 1,784,010 times
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[quote=ambar371;2542023]
Quote:
Originally Posted by EdJones View Post
Is that because too many rentals imply lack of financial stability

_________

Yes.

and...
Congratulations on your board interview!!!
Thanks!
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Old 01-18-2008, 09:59 AM
 
1,567 posts, read 2,772,384 times
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ed-
how invasive is it and how personal do they get?
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Old 01-18-2008, 02:30 PM
 
Location: NYC
364 posts, read 1,784,010 times
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Quote:
Originally Posted by bxlefty23 View Post
ed-
how invasive is it and how personal do they get?
The interview wasn't invasive at all. In this coop they were very friendly and welcoming.

What's invasive is the paperwork during the application process. You have to provide copies of your pay checks and also copies of your bank statements.

That part of the process is VERY invasive because your "potential" neighbors will know how much do you have in the bank, how much do you spend, etc. I was very uncomfortable during the application process mostly because I wasn't used to giving that kind of info to a complete group of strangers.

Does that make sense?
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