Printed from at 06:33 AM, Dec 3 2016
Talk » Sales » Discussing 'coop has small reserve but no mortgage'

coop has small reserve but no mortgage



I am looking at coop that is about 160 units and has 120 k in reserve and the co-op should also have a line of credit of 400,000.00. The realtor claims these funds are very healthy because the underlying co-op mortgage will be paid in full in a couple of months and the building should have no problem obtaining another mortgage in case of any emergency.

Could this be a safe investment?

Thanks so much!

how much is monthly now? will it decrease once the mortgage is paid off?

It is tough to say without looking at the financials. How will the underlying be paid? I'll be glad to look into it further from our coop database if you would like.

Hi Sunny, I couldn't help but eavesdrop on your generous offer. Would you mind if I sent along a FS to you as well? This one building I am looking at seems very interesting...

More important than either of the points you have given are:
* Does the operating budget balance or run a small surplus at current maintenance charges? You need to see the income statement to determine.
* Where are property taxes going for this building- you can get a forward look on propertyshark or the recent bills on the Dept. of Finance website.

* Where is this building in the Local Law 11 inspection cycle- that could mean higher charges in an upcoming year. This you can determine on the Dept of Building website under Facades.

No mortgage is a mild positive- I would guess a majority of co-ops have some small level of mortgage.

No mortgage is stupid, this is a deadbeat country, you need to become the mainstream!

depends on what future needs the building has (roof leak, boiler, asbestos removal, replacement of elevator, etc). 400k credit line will get wiped out with an elevator replacement and special assessments might be a reality in the near future. I echo the financials review statement and also would add to look at minutes to ascertain which improvements will be needed in the next year.

UE98, please feel free to contact me with any questions. Thanks.

Thank you!

Thank you guys for the comments!


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