co-op cash req

either fake or an idiot

The requirements vary. The broker saying "typical" probably means the board will look at overall position rather than apply a rule. No reason for the brokers to lie.

You don't believe what the brokers say because they're telling you you won't pass, or they're telling you that you will?

ali r.
[downtown broker}

What other facts might make you fail the board?

Just curious as to why you'd do an all-cash deal if the majority of your remaining assets are illiquid? Tying up another 2/3 of your liquid assets may not be a very smart move.

As for your question--generally a board wants to see that you have anywhere from 2-4 years of mortgage and maintenance in the bank; and for more difficult building they may require a purchaser to have in excess of that amount.

The brokers that I’ve talked to on various apts all say no problem with the boards but when I talk to sellers that have a different take. Some of the comments that I’ve read here adn elsewhere seem to suggest a reserve of at least equal to purchase price. So I was wondering if there was some general guideline.

Don't like borowing money and have a high enough steady income where I don't mind being a liitle light in cash for a short period.

If you have a broker, why are you communicating directly with the seller?

Squid is correct--- the bd. is probably looking for 2-4 yrs. mtg. + mtn. If it was 1x or 2x the purchase price you would know.

The RE you own even without mortgage is not liquid. Liquid = cash, stock, bonds.

If you are savvy enough to have earned/saved/managed $7M+ you can handle this purchase without anonymous opinions.

The broker offered to put us in direct contact. You don't know who I am just some general information so I value the anonymous nature of the board. Like I said I'm looking for advise and opinions. I don't want to disclose to the board detailed information like account numbers etc. unless I feel positive about the outcome.

ieb: The fact is it varies greatly depending on the building. Call the management company directly. Let the broker know that you are doing so. Brokers are generally nervous about this but let them know you don't want to tie yourself up in a possible rejection. You have the right to do this regardless what the broker is telling you.

Ask the management company who the managing agent is. The managing agent should be able to tell you straight away if the structure needs to meet any ratios (ie liquid to price). IF there are certain ratios, make sure you meet them. If there are no such ratios, ask the managing agent what they generally like to see, and begin getting into the details of the price, your personal situation. Play nice because if you decide to move forward you may find out you need this person later on...

"I don't want to disclose to the board detailed information like account numbers etc. unless I feel positive about the outcome."

you don't disclose anything until you are in contract. Then, you bend over backwards and the hazing begins. If you don't feel comfortable with disclosure, or saying sure no problem to just about every awkward request....buy a condo.

Thank you Ir. I think that I got what I was looking for. We can close this thread.

$2.5 million purchase all-cash, so no mortgage. He has another $1.25 million in cash and close to another $4 million in investments. I don't think there is any trouble here.

waverly - again, depends on the building.

ieb, I hope you're getting a good discount for your all-cash offer.

lr - I agree, but if it was one of the few building where this might be a concern the OP would know this already. It's not like those buildings hide their selectiveness. The broker has a deal on the line, so they would say something to save their own ass.

"$2.5 million purchase all-cash, so no mortgage. He has another $1.25 million in cash and close to another $4 million in investments. I don't think there is any trouble here."

Financially, maybe there's "no trouble".