Investor to Buy Co-op Unit?
Hello, our small co-op is seeking an investor to buy a rent-controlled unit. The maintenance exceeds the rent, which is why we want to sell it, obviously at a huge discount. Does anyone have an idea as to how we’d market it? Through a conventional realtor who might specialize in this, or is there anothe…
Hello, our small co-op is seeking an investor to buy a rent-controlled unit. The maintenance exceeds the rent, which is why we want to sell it, obviously at a huge discount. Does anyone have an idea as to how we’d market it? Through a conventional realtor who might specialize in this, or is there anothe way?
Because you can buy for pennies on the dollar.
Say an apartment is worth $600k on the open market. You pay $100k, and, say, $200 a month to cover maintenance/rent gap. Say the tenant lives for 20 more years: you pay about $50-60,000 over those years, including repairs, for a total outlay of $160k, and the apartment may then be worth 750k or more on the open market.
Or, alternatively, you could try to buy out the RC tenant.
I’m sure a savvy investor can figure out ways to offset the carrying costs, too.
wait, why would someone want to buy an investment that costs money, am I missing something here?
Thanks, Adam. Yes, we know we won’t get much for it, but we do need someone to cover the gap. (We actually have 3 RC units but for FNMA lending reasons don’t want to sell to same investor).
Could you send me those realtors’ names (to pasigal@gmail.com), or just list them here?
Have a realtor list it. I have a few I could recommend. You’ll get an all cash buyer and will sit on the property.
Not sure, but I’ve seen some RS or RC apartments listed by Corcoran.
Yeah, that was a big thing back in the 80s. But the way it worked is that developers would package up a half dozen or more to reduce risk to the buyer. Buying a single unit presents a lot of mortality risk. Tenant might be 75 and live another 25 years. And then, if this is really RC and not RS, there is a hand-me-down risk as well.
I’ll give you $1000, sight unseen 🙂