Do you consider this a "liquid" asset?

Doesn't seem liquid unless you can prove there is an established market for this type of asset. When you say they could be sold what is this based on? Even if you estbalish a PV based on discounted cash flows I would think you wouldn't be able to treat it as a liquid asset in excess of 70% since you generally only treat 70% of publicly traded stock value as liquid assets...

I know nothing of coops and their requirements. But in the real world, unless you can sell it (say) same-day without resorting to a fire sale price, it isn't liquid.

Take this as an opportunity to question the wisdom of the "everyone" you are quoting.

Present value of rights to an income stream from an illiquid asset should be considered a liquid asset, that's rich.

Not liquid. List it under "other assets" and make sure the value you declare is defensible.

ggman - There is an establish market and I could sell it tomorrow easily - we have had offers from buyers and i know the current operator would jump at the chance to buy it from me today to relieve royalty obligations in the future.

Thanks West - that seems fair to me - again getting to what a board would consider, i wonder if it would be enough to sway the after purchase liquidity requirements - the building i'm looking at requires the value of the apartment, this would get me far over the top if they were to consider it

Sell the rights, monetize the investment and buy the co-op if you think that's a better long-term investment. OR skip the co-op and rent whereby you pay your rent out of the income stream if you think the value of the mineral rights are a better investment.

It's not about the investment value, I need a home and it's about passing a strict board. I have excellent credit and strong income, I'm on the board in my current building, everything is great on paper but the liquidity requirements are insane.

if you are dealing with a strict board, it is not us you need to ask but them. W81 and inonada are correct that this is an illiquid asset, but your overall situation is the kind of situation that a board might bend the rules for. Check in with seller's broker.

ali r.
DG Neary Realty

I guess bottom line is its all up to the coop board since its based on their judgement rather than a set of rules/industry standard. It will just be how financial savy they are and how easily you can convince them this asset is liquid. I would put in liquid assets (not because I think its a liquid asset but because that is more strategic for the application) and footnote with supporting documentations from third parties. Also, just because someone is willing to buy it from you today doesn't mean its readily marketable in the future. If possible why don't you create a put option agreement with the operator for the right to sell your interest to him at a price measured based on certain metrics and set a floor.

Those mineral rights are not liquid assets. They are marketable assets, but aren't immediately liquid. Even if there are buyers, there isn't a clear market price or a means for you to sell immediately should the need arise. They will certainly help bolster your financial profile with the coop, but should be classified as "Other investments."

Hey My kids have $50 in quarters in their piggy bank. Can w67 list that as liquid assets when i submit a financial board package?

Maybe if you gotta list your wife's jewelry as part of your application, hmmmmmm you're better off rethinking your finances.

Is apple at $390 liquid?

Financial strategery! List it above the 30 day liquid. List the 50lbs you are over weight as 'prepaid food'.

flmaoz.

do you want to be taken seriously?

>do you want to be taken seriously?

by whom?

asked and answered.

>asked and answered.

Oh, we got ourselves another Judge Judy.

SE, why?

Oh look, Judge Judy has transformed to Marsha Clark.

SE, why?

jm8: Sell those mineral rights in a property out of state.
Then you will have a bteer finacial package to present to the Board.
As ali wrote: "the Board might bend the rules for."
However, if those rights are worth money, just sell at the present value and get the money for it.

you idiot.

*jms8* ...: you will have a better financial package to present to the Board.

Idiot...how long do you this would take?

sad C0lumbia C0unty that you've come to this.

What!

Was that an exclamation point?

I'm going to assume that's just a fat finger or another stroke.

SE why?

What's her name says "bark bark bark, command command."

Mrs. C0lumbia C0unty?

It was just a suggestion.
No "bark", no "command".
Only an alkie troll such as alanhart would perceive my comment in that way.

Will home equity line and cash I expected to receive from the sale of my property (already with buyer's signed contract and buyer's pre approval letter be counted towards liquid assets? Should I use home equity line for down payment for the new property so I can free up cash/liquid asset?