Co-op board approval?

Could you just gift all the money to your son and his wife?

The managing agent is communicating a very typical (and often non-negotiable) requirement, which is that the shareholder needs to be the occupant. If he can make the purchase himself (and you will have to document that the transfer of funds is a gift not a loan), he can be the applicant and you're just his generous parent, not an interested party. The board may still balk at his lack of income to pay maintenance, but he could make the same maintenance escrow offer and especially if there is no mortgage payment it might be persuasive enough.

If this is not what you have in mind, look at condos and buy one of those; a condo board may inquire but generally will not have any practical ability to refuse whoever you want living there.

There are some co-ops that will not approve this situation, no matter what, and others that may consider it. You probably want to work with a broker with neighborhood knowledge who can steer you toward the co-ops that will consider it. If you're dealing with a building that won't approve it no matter what, you're probably wasting your breath no matter what you offer.

Have you inquired as to whether a co-purchasing scenario (e.g., you, your son and his wife will purchase the shares together rather than you purchasing on their behalf) will be acceptable to the board? Many co-ops that do not allow parents buying for kids will allow co-purchasing. This may work if your financial profile is strong enough for the co-op.

Dan Gotlieb
Digs Realty Group
www.digsrealtynyc.com

Buy a condo instead , that's much easier

Even if you gifted the purchase money to your son you may have issues with a board. It sounds like you are looking at a specific building that will not approve your son's situation. Time to move on. There are other co-ops that might allow this, though as Admin points out, you may be better off with a condo. Don't try to beat a dead horse. Clearly this particular co-op is not interested--why waste your time and theirs?

Find a condo. This building might require owners to live there at first; this building might not allow pied-a-terres; this building might allow renters or non-residents but be up against limits that hurt units being financed at banks. There are lots of reasons. Give it up and find a condo.

Have yourself and your son as co-owners. This should work as I have seen it before.

There are big overarching reasons that boards have these kinds of policies. I actually think boards like that are good boards, usually, and the buildings are desirable.

I am wondering why you want to purchase instead of renting. I assume because you think the investment will appreciate meaningfully in a couple of years? Because it's unknown whether the kids will hang around New York. As somebody with a toe in the entertainment business, I can tell you many young actors end up in L.A. Perhaps you plan to move in there yourselves. If not, you might want to run the numbers including transaction costs, remembering mansion tax if applicable.

For those of you who recommend condos, be advised they can be hard to sell if too many units are rented, among many other disadvantages. Co-ops can keep a lid on rentals and therefore it's easier to sell to people who must get loans.

Once boards hear anything related to the words "actor" or "hollywood" or "celebrity" it's all down hill. Can't say I disagree. Personally never really had much respect for an industry where a 6 year often does a better job than an adult.

btw, what exactly is an aspiring actor? You're either an actor or not. That's all good luck and yes buy a condo.

This is not the apartment for you or your son.
1. The board views your son as equivalent to a renter. You can vouch for him as a good tenant but you are still asking for the rules to be changed for you.
2. How would this apartment be an investment if you can't rent it out to anyone and your son will likely move in a couple years? Between closing costs, maintenance and tax it will probably cost you more out of pocket than rent would, and then when he moves you will have to sell it.

Find a nice rental building and save the $$$ and aggravation.

What neighborhood is this in?

We had the same problem and then decided to put all our names on the deed. Then my son was "allowed" to live there.