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well we don't yet what will happen .. but i can tell you when the day comes we have to feed the 2 remaining apartments , no matter what they are worth , we are done .we will walk away and the building can have them . we looked in to donating them but charities won't take them with stabilized tenants for the same reasons .
well we don't yet what will happen .. but i can tell you when the day comes we have to feed the 2 remaining apartments , no matter what they are worth , we are done .we will walk away and the building can have them . we looked in to donating them but charities won't take them with stabilized tenants for the same reasons .
well we don't yet what will happen .. but i can tell you when the day comes we have to feed the 2 remaining apartments , no matter what they are worth , we are done .we will walk away and the building can have them . we looked in to donating them but charities won't take them with stabilized tenants for the same reasons .
Why would charities take land with stabilized tenants because they know it will cost them money after they take it off your hands. They would be doing you a favor.
well we don't yet what will happen .. but i can tell you when the day comes we have to feed the 2 remaining apartments , no matter what they are worth , we are done .we will walk away and the building can have them . we looked in to donating them but charities won't take them with stabilized tenants for the same reasons .
I would say, sell it to the tenants. Line up a 30-year mortgage for them and structure it so the mortgage payment is roughly the same as their current stabilized rent. You pay their down payment and the mortgage minus that amount is your net sale price. From the tenants perspective thy stay in their home, their "rent" increase is zero, and they own the place outright after 30 years to sell for a huge windfall (or sell any point before then).
Of course the problem is that they are now responsible for maintenance fees and property taxes, so you might have to structure the mortgage even lower to make them "whole" (actually making out like bandits). But the bottom line is there is no way you walk away from this for ZERO, there's got to be ways to make this work.
one is in their 70's and has been playing games with a grandson staying over trying to get succession rights ..the other is about 60 with a 26 year old son there
I would say, sell it to the tenants. Line up a 30-year mortgage for them and structure it so the mortgage payment is roughly the same as their current stabilized rent. You pay their down payment and the mortgage minus that amount is your net sale price. From the tenants perspective thy stay in their home, their "rent" increase is zero, and they own the place outright after 30 years to sell for a huge windfall (or sell any point before then).
Of course the problem is that they are now responsible for maintenance fees and property taxes, so you might have to structure the mortgage even lower to make them "whole" (actually making out like bandits). But the bottom line is there is no way you walk away from this for ZERO, there's got to be ways to make this work.
the one apartment with the 26 year old is at a slight loss . if they got the apartment free the maintenance and assessments is more then their rent .
the other apartment is at a slight profit but with any assessments it can flip negative .. i will go no lower than 40 cents on the dollar to them .. i don't want to see either one benefit from a deal . i would rather hand them over free to the building and walk away .... we offered them the apartments many times and they had no interest.. at this point it is just on principal that i would not let them get a windfall. especially because of the way they orchestrated the succession rights .
hopefully this week we may get a deal at the 400k .
Last edited by mathjak107; 06-14-2019 at 01:10 PM..
Why would charities take land with stabilized tenants because they know it will cost them money after they take it off your hands. They would be doing you a favor.
Charities like corporations do not have life expectancy...they can outlive us all ....so they can eventually reap very large rewards
Last edited by mathjak107; 06-14-2019 at 02:05 PM..
what if the landlord forecloses the building? then no one will take care of those stabilized units?
Landlords don't foreclose on their own properties, banks, lenders or whoever else provided financing. Even then it has no effect on rent regulated tenants. If the bank, investor or whoever is successful in their foreclosure proceedings they become new owner of property but that includes taking on all rent regulated tenants. Leases are just transferred from previous owner to new; it has happened before plenty of times.
Savings and Loan crisis of 1980's, Lehman Brothers going bankrupt, etc... all involved real estate loans and when places went belly up person or persons and or investors/corporations go around looking for deals.
Truth to tell since the S&L crisis and other events afterwards banks have been very conservative and or cautious with RE lending. Much of the money flowing into market for past decade or so has come from investors or raised on foreign bond markets. A bank might get involved at some point when risk has diminished, but just giving out loans to any phisher who asks is totally over.
Loan to own however is a different story, and isn't totally unheard of still; that is banks, investors or whoever giving a LL or someone looking to buy property money even though they know things won't work out. Then all they have to do is sit back and wait...
what if the landlord forecloses the building? then no one will take care of those stabilized units?
It is a co-op ,there is no landlord so to speak.. if I don’t pay my maintenance then the co-op can take my shares
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