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Financial Health of Sponsor

Started by FreebirdNYC
about 15 years ago
Posts: 337
Member since: Jun 2007
Discussion about
Is there a good way to check the viability / financial condition of a coop sponsor? If no issues make it to the minutes and there are no past due amounts reflected in the financials, is it safe to assume the sponsor is OK? Coop has 20-30% sponsor ownership so not off-the charts but higher than perfect.
Response by NWT
about 15 years ago
Posts: 6643
Member since: Sep 2008

The sponsor files an amended offering plan every year. E.g. http://www.twofifth.com/thirty-seventh_ammend.htm

If the sponsor's having trouble carrying the maintenance, or has the shares in hock, it'd be indicated there.

You should be able to get a copy, along with the financials, from the managing agent.

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Response by FreebirdNYC
about 15 years ago
Posts: 337
Member since: Jun 2007

Excellent - thanks

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Response by ph41
about 15 years ago
Posts: 3390
Member since: Feb 2008

Banks' willingness to do mortgages in the building might also be an indication of financial viability of the sponsor, as some banks will look at rent/maintenance of sponsor units to determine sponsor financial health.

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