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January 28, 2008
Getting Ahead of the Curve in a Building Undergoing a Co-op Conversion
Is it possible to purchase a unit that the sponsor in a coop building is going to renovate before the sponsor actually renovates and sells it through a broker? I know that many sponsors at coops with low(er) owner occupancy rates have exclusive deals with particular brokers, but I wonder if these agreements would preclude the sponsor from selling an unrenovated unit directly to a buyer. My thinking is that you'd be able to buy the unit at a substantial discount, do the renovations yourself (and avoid the cheapo sponsor renovation), and avoid paying the broker's fee that is likely built into the price. I'd love to hear from anyone who has any insight.
Thanks
Comments
Doncha think, just maybe, the sponsor is renovating to MAKE A PROFIT on the renovation? So why would they give up profit to sell to you at a discount?
Posted by: guest at January 29, 2008 12:27 AM
What if you're ALREADY a tenant and want to purchase a unit?
Posted by: guest at January 29, 2008 12:55 AM
Still don't see the incentive for the developer, unless he's unexpectedly short of cash.
Posted by: guest at January 29, 2008 12:04 PM
what if you're a rent-stabilized tenant and want to buy your unit?
Posted by: guest at January 29, 2008 12:49 PM
Now that I can understand. I have friends who had inherited rent controlled units when their building went condo - they were young and had no money to buy - while having had a nice place to live all these years, had they had the ability to scrape up a few thousands for a downpayment, they'd be sitting on a million or more in equity right now.
Posted by: guest at January 29, 2008 1:17 PM
Now, if your rent is much less than the maintenance will be on your unit, then the sponsor might have some incentive to sell to you - because if you stay there, the sponsor has to kick in the difference between your legal rent and the maintenance to the coop every month. Why are you asking here? If you want to buy it, make an offer to the sponsor....
Posted by: guest at January 29, 2008 1:20 PM
Just for clarification, I'm not the OP, I guess I kind of hijacked his post! (sorry OP) My understanding is that I can't make an offer to the sponsor since it's only in the red herring phase. I heard that some people were signing deals, but that they're not legally binding? But I would like to buy my unit.
Posted by: guest at January 29, 2008 1:44 PM
To 1:44pm
Try to find a clever real estate lawyer who can help you.
Posted by: Ysabelle at January 29, 2008 2:06 PM
A bunch of the large pre-war apartment buildings around Ocean Parkway in Kensington have old wooden sides hanging on their walls advertising coop apartments for sale. When apartment hunting, I called one, got through to some offices, left my contact information with a human and a few weeks later got a call back from one saying the sponsor now had an apartment to sell. Unrenovated. But I'd already made an offer on another apartment by then. I'd def recommend this though, if you're interested in big prewar buildings - walk around an area you like, and look for those weathered signs. They seem to still function!
Posted by: guest at January 29, 2008 2:55 PM
OP here. 2:55, I'm glad to hear you got a response directly from the sponsor albeit to late. I tried your strategy with a few buildings, but unfortunately was not able to get in touch with a human, just answering machines and wrong numbers. It sounds like it's worth trying again, though. I'm curious to know at how much of a discount the sponsor was selling the apartment.
Posted by: zev299 at January 29, 2008 10:39 PM
To: Zev299
I have a 4 bed 2 bath in a pre-war apt. building in Lefferts Gardens & the prices on them are almost the same - cheap reno or no reno, but regardless you can get great deals in prewars call me if you want more info 7184044191 in general you can always make an offer to the sponsor they love it when people are running after them.
Posted by: guest at January 30, 2008 11:30 AM
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