Open House Picks: Six Months Later
Comment: Blah. Open House Picks 10/31/08 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
Comment: Blah.
Open House Picks 10/31/08 [Brownstoner]
Previous Six Months Later Posts [Brownstoner]
gemini: Obviously the buying group has to figure out who buys which apartment and the price to be paid by each member. That either falls into place or it doesn’t. You can figure that out over drinks with your group after you all go to an open house. If the group doesn’t agree, it doesn’t bid. But if I’m right about this I think there is enough value to be picked up that the discussions should be relatively painless. Group negotiations are much more difficult when there is less value being picked up.
Lechacal – if we were in the market for an apt and not a house, we’d consider joining!
Lech – I think its a great idea and would be onboard once we sell the house and wait a few months to get our credit back in order and will have the cash to do it
however – what happens if people all fight over 1 condo over another?
That’s how I feel about Park Place condos – they are nice – but really imo I only dig the 1st and 4th floor units (as they have outdoor space)
lechacal – I like your idea. It’s an interesting variant on a notion that some in my circle call “The Compound.”
No, seriously though. I think it’s a pretty goddamn good idea.
That being said, I have a deviously simple plan for buying an apartment that I just thought up. I am perfectly comfortable sharing it, so here it is. No pride of authorship here, so if anyone else has what it takes to copy this model please go ahead.
1. Find a newly converted brownstone with 3 or 4 units. (like the one I linked, just for example)
2. Get together with a few other couples (or individuals) who are in the market. They should be friends and/or people you trust. Everyone needs to have solid finanicals.
3. Let the condos sit on the market for a good while. Those new conversions aren’t going anywhere in this market. There are real issues with trying to convince someone to buy first and real issues with financing the first couple of purchases. In this market those things can die on the vine without the first couple of units sold.
4. Let the developer start to get really desperate just to get out from under the thing without going insolvent.
5. Present the developer with cross-conditioned, simultaneous bids for all 3 or 4 units (with pre-approved financing if possible) at a very significant discount to recent comps and to asking price. The message is basically: this is the only way you avoid going under. Without us, you can’t move the first couple of units, and if can’t move the first couple of units this place will belong to the bank shortly.
6. At the end of the process you have bought nice new apartments at a great price and — best of all — the other condo owners are all people you know and trust who have strong financials.
I am starting to really love this idea.
I can’t give a good prediction of how much of a price chop is needed until I see it, but based on the listing I would think much more than 20%. The whole brownstone-condo-conversion-with-just-a-few-units things has really lost its appeal for many reasons. I find it difficult to justify anthing north of a million dollars for that place given everything else that is on the market now. It’s a narrow property, not in one of the better school districts (I think – but the 282 debate continues), and the lower level is one of those quasi-subterranean deals.
20% – I think it needs a million dollar chop!
there’s a nice 2 BR condo on Park Place btw 6th & 7th ( it’s a bit smaller) but
they are asking $850K for the duplex and it’s been sitting since December – so obviously both prices have to come down much more in order to move them!
I’d say 700K could move them both am sure
Lech – seems like a cheap reno on that Berkeley place. I would say it needs a 20% chop at least to get a deal done.