Author Topic: Buying coop for elder  (Read 2048 times)

Offline jackinjh

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Re: Buying coop for elder
« Reply #15 on: June 01, 2018, 01:35:27 PM »
Thanks Armen, that is every helpful. I think that is why the agent discourage us since I told her I also have a coop, which they assume I have mortgage etc.

Wilrfan, condo is the best option, but then we will have to do mortgage which is another mess having 4 individual agrees on what to do and who to take the mortgage. And there isn't much Condo in JH either.

Offline agentarmen

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Re: Buying coop for elder
« Reply #16 on: June 01, 2018, 02:38:18 PM »
Welcome!

You or your siblings carrying a mortgage on another coop you own (or any other type of property for that matter)  should not be an issue as long as your income and your siblings income combined is sufficient to carry your respective obligations and the proposed monthly maintenance on coop you want your mother to live in.

Deals that are slightly out of the box may at a glance seem complicated, but at the end it comes down to the same approval guidelines. Yes it will be more paper-heavy than a deal with less purchasers involved. But with no mortgage (as you proposed), a coop has first position lean on the property and complete leverage on all shareholders. Barring specific rule forbidding co-purchase, this is a perfectly doable deal.

It is completely true that a board can and may turn down an application without giving a reason. Yet fear of board turn down should not be a reason not to seek a housing alternative that makes most financial and practical sense. That risk and many other risks exist in real estate regardless of a buyer profile.
« Last Edit: June 01, 2018, 09:55:57 PM by Shelby2 »
Armen Meschian
Licensed Associate Real Estate Broker

CORE
673 Madison Avenue
New York, NY 10065
t:     212-612-9694
c:     917-848-6928
f:     212-612-9650
am@corenyc.com

http://www.JacksonHeightsListings.com

Offline jackinjh

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Re: Buying coop for elder
« Reply #17 on: June 03, 2018, 05:34:24 PM »
Thanks!

We saw another condo past weekend, the buyer and their agent ask us to show 2 yr of tax income before we can submit offer. Is that something they can ask for? Usually I submit that to the coop after offer accepted.

Offline jackinjh

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Re: Buying coop for elder
« Reply #18 on: June 03, 2018, 11:27:11 PM »
Thanks!

We saw another condo past weekend, the buyer and their agent ask us to show 2 yr of tax income before we can submit offer. Is that something they can ask for? Usually I submit that to the coop after offer accepted.

Mean seller*

Offline agentarmen

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Re: Buying coop for elder
« Reply #19 on: June 04, 2018, 09:26:02 AM »
Thanks!

We saw another condo past weekend, the buyer and their agent ask us to show 2 yr of tax income before we can submit offer. Is that something they can ask for? Usually I submit that to the seller after offer accepted.

Less common with Condos but more standard diligence with Coop offer submissions. If you list income and assets on the offer form, you must be able to show proof. Same way you are entitled to seeing the physical property and reviewing building financials before submitting your offer. In the initial screen we generally advise that you redact social security numbers and account numbers from statements.

To be perfectly clear, you don't HAVE to provide them, but in my experience, sellers are more likely to accept an offer that has attached proof of income and assets. In some cases sellers may even accept a slightly lower offer that is better prepared, than one that is higher but shows reluctance to show proof. It's important to understand, that a seller is not only looking at price, but also your ability to put together documents and to pass the board in their building. In these cases, less is not more.

Now, (regardless of coop or condo) if we are discussing your specific case, of you and your siblings buying together, you must have the entire proposed deal structure and documents ready in folder at all times. You must properly educate the listing agent on what you intend to do and how, so they can confidently relay it to the seller. This includes names of purchasers, their respective income assets and proof there of when call upon.

Remember, price is not the offer. Offer is comprised of several factors - Price, Down Payment, Financing, Conditions, Contingencies, Qualifying Factors. Always ask yourself, if you were the seller, what would you need to know to make an educated decision who to go into a deal with.

Armen Meschian
Licensed Associate Real Estate Broker

CORE
673 Madison Avenue
New York, NY 10065
t:     212-612-9694
c:     917-848-6928
f:     212-612-9650
am@corenyc.com

http://www.JacksonHeightsListings.com

Offline jackinjh

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Re: Buying coop for elder
« Reply #20 on: June 04, 2018, 04:15:59 PM »
Thanks again Armen, this is very helpful. We will get our act together so we won’t get reject on the spot again.

One will think my first coop purchase make me experienced but this is very helpful.

Offline CaptainFlannel

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Re: Buying coop for elder
« Reply #21 on: June 10, 2018, 10:13:03 AM »
I've known seniors who downsized from elsewhere using the money from the sale of their previous home to make an all cash offer. Of course, that requires their previous home to have sold enough to afford a coop here. In those instances, these are folks with zero debt, so of course their debt : income ratio met any board requirement.

Social security, pension, and investment income is income, so if the senior has enough money in the bank and the carrying cost (maintenance) : income ratio was met financial requirements would be met overall. If there isn't enough money in the bank to meet board requirements after closing, children should be able to gift that money (with perhaps a legal document to the board attesting the money is a gift and not a loan.)

I commend you for thinking ahead jackinjh. Your mother absolutely could live another 20 years, and I'd guess you're looking at family history of longevity as well as being mindful that your mother is likely to live longer than her parents.  My siblings and I are having these kinds of discussions with our own mother at the moment (which I wish we had started a decade ago), and while she doesn't particularly enjoy contemplating how many years she may have left on this planet (and nor do we), in order for her to have a decent quality of life as she continues to age it has to be done.

Jackson Heights Life

Re: Buying coop for elder
« Reply #21 on: June 10, 2018, 10:13:03 AM »