co-op finanacials

anyone?

"They've also been running for the past 3 years at a loss of $4K('09), 17K & 55K('07)."

Sounds like crap. How many assessments and/or maint. increases have they done in the last few years?

How many units? These raw numbers spread over six units would bum me out, spread over 80 units wouldn't.

ali r.
DG Neary Realty

I think the assessments have been an extra month's maintence the past 2 years.

And there are 85 units in the building.

It's about $600 in maintaince per month, so spead over the year is only $50 extra.

I thought coops MUST run at a loss (or breakeven, but not more) ... ?

from the limited info you provided, it doesn't seem bad. at least they have reduced their losses over the past few years. you should find out what major work needs to be done to get a better idea of where the maintenance or assessments are going.

My two main concerns were the low reserve (20%) and the balloon payment due in 2013. I'll also find out abou the major works in the near future.

can you put a # on the 20%. that would make it easier. as you can expect, a 80 unit building or a 150 unit building will pay close to the same for a new roof for example. one of the buildings may have a doorman and thus the reserve number can become meaningless. you can also find out if the building has a line of credit out and for how much. this way they don't need to go the route of a new mortgage or major assessments, but just tap the line.

reserve = 105k