Coop Building Mortgages

Make 10% a red line- don't let interest expense get above 10% of total. The avg of many many buildings I have looked at is 7.5%. Rates are higher because it is a small underserved market and foreclosure is a particularly messy option.

National Cooperative Bank (http://www.ncb.coop) probably does more than any other single bank.

Ours is with New York Commercial Bank. We're on our third CEMA, all three with different banks.

dc:

1. where is the building, and what are its apartments worth
2. $25,000 to $50,000/unit is most likely very reasonable

Washington Heights (Cabrini), apartments range from $500 to $650 a square foot
Crescent - 10%, really?

I agree w/ rb345 about debt per unit, range depending on value of units. Rates for building mortgages tend to be 100 to 200 bps higher than for individuals. Players in the space include NY Community Bank, National Cooperative Bank, Emigrant, Recap, and First Funding. Meridian Capital is a broker.