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September 20, 2008

How to turn a brownstone co-op? Commercial property?

Hi folks,

Long time reader, first time poster. We are considering buying our brownstone where we live with 2 other people and forming a co-op.

What's the procedure? I've looked around for a couple of hours looking for a similar thread. Did I miss it?

Also, the COO lists it as one occupancy and 4 lodgers. Huh? Our mortgage broker says 5 residences makes it a commercial property and an ARM loan.

1 BR Garden Apartment (empty)
1 BR Parlour (empty)
2 studios (no kitchen in either) with one tenant (who had not paid rent in 4 years) 1 empty
2 BR top floor (we occupy)

So? What now? Change the COO before we buy? After we buy? Get the Co-op lined up?

I hardly know where to begin.

Posted by evaradke at 10:11 PM | Comments (3)
Categories: C of O

Comments

begin by hiring a good real estate lawyer.

Posted by: bricktop at September 21, 2008 5:43 PM

I 2nd that. Here a good lawyer that HAS EXPERIENCE doing these conversions. I have a few referrals if you would like.

My question to you is why COOP? I would think that a condo coversion would be a much better decision. Small coops are extremely diificult to finance in the residential world these days.

You would need to get a commercial loan with the current c of o. Once the conversion is complete you and the other owners should obtain individual residential loans on your own unit and then you would all need to close the same day to cure and payoff the commercial loan. I wouldn't worry about it being an ARM as 95% of commercial loans are, and this is only a short term position to get you into a residential loan on your individual unit.

Lawyer is your first step.

Posted by: Adam Dahill at September 22, 2008 12:12 PM

I meant HIRE a good lawyer. My spelling is atrocious these days. Hey Brownstoner, let's get some spell check on the comments section so I stop looking like a dumbass. :)

Posted by: Adam Dahill at September 22, 2008 1:10 PM

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