A trust fund buying a coop?

generally coops do not allow business entities to purchase units. moreover, lenders are not keen on it either due to the lien of the coop on the shares/unit. too easy for a business entity to walk away and the coop foreclose on the shares. you don't have that other lienholder hanging out there with a condo or commercial property. I will say that coop board members may not be that sophisticated to understand why purchasers may prefer to have a business entity or trust purchase shares but then they don't have to be. They run the place. It is easier, IMHO to buy under an individual and then transfer midstream to a trust. Once you are in, the board members will be more amenable to such situations. The lender is another story and your rate will certainly increase. But then every coop is different.

I just sold my coop to a person purchasing with a trust fund so it is possible. I think it really is up to the coop board. Good luck!

Out of curiosity, why would a trust want to own a coop instead of an individual - is there a tax reason?

Perhaps a parent is buying for their child but doesn't give them the asset until a certain time or they are gone.

Some people may want to place a coop in a revocable trust to reduce their net value for estate planning purposes, medical care reasons, etc. I suppose you could conceive of nefarious reasons like not wanting looming creditors to have access to the shares, but I'd think that would come out in the admissions packet and credit checks of people involved.