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September 29, 2009
Tenancy in Common
We are trying to buy in Park Slope (been renting here for 10 yrs), but even with the slightly reduced prices, it's been impossible. So, we're considering a tenancy-in-common. We really want a yard for the kids (and for my grill-happy hubby). We would prefer people we don't know but seem sane and can come to a (legal) agreement with. So, I'm putting out feelers here for anyone thinking of the same in the Slope area. Also, another question, has anyone financed a TIC? I would assume we'd have to be an LLC to start, but can you give me other info on what else is required? Typical down, etc? Thanks all.
Comments
Here's a piece from the Times on TIC. Very common approach in San Francisco, but less so here.
Posted by: ralph gardens at September 28, 2009 4:08 PM
I posted a ISO TIC partner 2 months ago and got 0 (zero) responses. I posted on Park Slope Parents and some others and got 10. At present have one very interested party, one almost.
Unfortunately I'm selling the upper duplex, so no yard space...but let me know if you want to share more info (rather not here.) Also have great TIC lawyer (in case you're oe who talked to me, my property is on Carroll).
Posted by: cmu at September 28, 2009 4:41 PM
cmu- my email is sharpg@live.com. Would love the lawyer rec and any other advice you have. Thanks!
Posted by: sharpg at September 28, 2009 5:13 PM
CMU -- If you own the building, what's the rationale for selling into a TIC rather than dividing the property into condos? Is it just the legal costs associated with division and registering the condo?
Posted by: Boerumresident at September 28, 2009 5:39 PM
Are you talking about TIC as a phase before conversion? Or staying as a TIC?
Posted by: jland at September 28, 2009 6:45 PM
br/jland: basically, i want to stay in the house...have to settle with to-b-ex. So it's a matter of 1-selling (not too good an idea, and I'm very attached to my space;) or 2-converting to condo (takes 12-18 mo, costs a lot and I'm not the best in terms of negotiating with bureaucracy;) or 3-TIC 1/2 house at, say 15-20% discount (because TIC is difficult to re-sell) with a view of converting to condo while the 2 partners live in the space (then time's not an issue.)
So my rationale is that I'm giving my partner a deal in return for a 5yr (say) committment to staying in place; we can then convert to condo/ sell / get another partner etc. It's a good deal and a win-win for me. Personally, I'd stay here until my 11-yr old goes to college and later, so my horizon is 9-12 years at least.
If this were SF, there'd be people lining up to buy it. As I've lamented before, New Yawkers are a notoriously untrusting bunch! But I may have a sale...cross my fingers.
Posted by: cmu at September 28, 2009 7:55 PM
Makes sense. I too knew a couple of people who bought houses in San Francisco (mostly in upper Castro and Noe Valley) as TICs and then converted to condos.
Good luck with the prospective sale.
Posted by: Boerumresident at September 29, 2009 8:55 AM
there's a whole wide world out there that isnt park slope. why not buy somewhere you can afford? this doesnt sound like a good viable solution. does anyone else agree?
*rob*
Posted by: Butterfly at September 29, 2009 10:52 AM
wait, i just saw that youve been in PS 10 years already, so i guess can feel your plight of leaving a neighborhood youve been in for so long..
*rob*
Posted by: Butterfly at September 29, 2009 10:54 AM
I've done this in NY but financing was tricky, the bank wanted only one of us on the mortgage, then both names went on the deed. It worked for us, but doesn't help your situation since on paper you have to be able to afford it individually, even if the partner is paying for half. Maybe you can find more flexible banks.
Posted by: Deda at September 29, 2009 11:08 AM
*rob*, are you boycotting the OT? Please come back.
Posted by: CarrollGardened at September 29, 2009 11:45 AM
*rob*- Yes, it's really difficult for us to imagine leaving Park Slope... we've made many connections here, esp. since our family lives elsewhere. It's just frustrating to see the prices soar out of our reach, and think about the ridiculous amount of money we've spent on rent and made someone else rich. We're doing what we can.
Deda- Thanks for the insight on the financing. I'm thinking being an LLC and therefore pooling our resources will hopefully help us get through it.
Posted by: sharpg at September 29, 2009 1:18 PM
I think you should talk to a good mortgage broker about this plan first. Going the LLC route may mean you're only eligible for higher commercial interest rates which will increase your monthly payment / decrease the price point you can afford. We had a good broker, who in the end recommended only one of us should apply, which got us an FHA loan with a smaller downpayment and a great rate.
Posted by: Deda at September 29, 2009 1:28 PM
Also, if you do go the LLC route there is no need for the TIC, as the only owner of the fee is the LLC. From a cost perpective that is probably easier to accomplish than a TIC, but as noted you may not have access to traditional mortgages at FHA rates.
Instead of the LLC taking out a commerical mortgage, you could have each LLC member borrow individually, but again I would guess the rates will be higher.
Posted by: Boerumresident at September 29, 2009 1:52 PM
Interesting ideas, thanks all!
Posted by: sharpg at September 29, 2009 1:59 PM
My partner and I have been renting in Park Slope for 7 years and we've also been discussing trying to do TIC in the neighborhood. sharpq - how much would you be looking to spend on a building. and cmu - how much are you selling your duplex for?
Posted by: h_t at September 29, 2009 2:23 PM
h t- Email me at sharpg@live.com so we can discuss. Thanks.
Posted by: sharpg at September 29, 2009 2:28 PM
h_t: I'm beginning to think I got a low appraisal! But my ad said 740k for 45% share. 2 floor, 2 bath, 1400 sq ft.
You don't need LLC except for personal liability reasons, which may be chimerical anyway. TIC can be a private agreement between 2 or more.
Posted by: cmu at September 29, 2009 2:45 PM
cmu - that seems like a reasonable price for the neighborhood, but unfortunately it's above our range!
sharpq - i'll be in touch! thanks.
Posted by: h_t at September 29, 2009 2:49 PM
why not find a first floor condo/coop with backyard outdoor space, or something similar with a deck or rooftop deck?
we have a 2000 sq foot condo with a backyard, a deck and lower level patio, and is more yard than some with brownstones get. We only looked at condos with outdoor space and found tons.
Also, couldn't you find a ground floor or parlor floor coop with outdoor space? Have 2 different friends that bought coops that included the backyard.
Posted by: wine lover at September 29, 2009 3:06 PM
wine lover- We would only want a yard, but have found that the interior space is usually too small for 4 people. It's been struggle... we've been looking since February.
Posted by: sharpg at September 29, 2009 5:55 PM
DO NOT DO THIS
YOU WILL GET SCREWED!!!
Posted by: Ben Gazi at September 30, 2009 11:14 AM
I'm interested in Selling my TIC ownership in a 4 story Brownstone in Stuyvesant Heights, Bed Stuy. It is located on Decatur Street between Lewis and Stuyvesant Ave (One of Best Most Sought After Blocks). You can own Upper Duplex with complete Roof Rights. Convert to Duplex for one family or rent out one floor and live on the other floor. Currently the top two floors are set up as separate apartments. Close to Utica Ave A. Around the corner from Peaches Restaurant and Breadsty Coffee Shop. Cash Deals only. Looking to get $450K.Your share of Current carrying charges for building is about $1200 per month (includes heat, small mortgage, taxes).. Houses on this block sell for $950K and up...
Any interest???
Posted by: Oldlady at October 1, 2009 7:40 PM
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