Hello all, I hope this falls under the right category. I live in an unbelievable rental. (1906, small, modest, greatly maintained, had a great landlord for several decades) and an UNBELIEVABLE location. I've been looking to invest but I'm not happy with anything and would prefer just to start building equity with my rental unit I've been living in for the past few years. So ... as my landlord has... [more]
Hello all,
I hope this falls under the right category.
I live in an unbelievable rental. (1906, small, modest, greatly maintained, had a great landlord for several decades) and an UNBELIEVABLE location. I've been looking to invest but I'm not happy with anything and would prefer just to start building equity with my rental unit I've been living in for the past few years.
So ... as my landlord has a small portfolio of rental buildings, he would never consider just selling my unit -- right?
Next step would be, converting my building to co-op? There are a few rent controlled tenants in my building -- meaning it would probably be difficult for my landlord to unload the building for a profit. However, given the nice area, there are several high paying market rate rents that I believe would be interested in purchasing (need at least 15%).
How would I start this process? My landlord obviously has to agree, correct? What would make him want to agree? Would this be possible / worth doing? Where the heck would I start?
Approaching landlord would be my first bet -- but for whatever reason would it be a bad idea to let my landlord know I'm interested? Maybe it would let him know I have the means to invest and would then want to charge a higher rent ...?
Thanks for any help or suggestions!
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Response by fieldschester
almost 11 years ago
Posts: 3525
Member since: Jul 2013
What neighborhood is this in?
How much is your rent? Are you subject to any rent regulation? Any idea of your rent relative to what the building would charge in maintenance? Any idea of your rent relative to the value of the apartment as a co-op?
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Response by Jazzman
almost 11 years ago
Posts: 781
Member since: Feb 2009
He cannot sell you your unit - it's against the law. Crazy but true. Your only chance is to get a group together and buy the entire building from him and then convert is per the conversion laws or hope that he converts the building himself.
It's very unusual for a small landlord to go through the bureaucratic mess this is a co-op conversion so my guess is that your only chance is to get your landlord to sell the entire building and then you convert it.
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Response by milenkopekija
almost 11 years ago
Posts: 15
Member since: Mar 2011
no one converts the building in a co-op anymore...the landlord would go for a condo because its worth more
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Response by NWT
almost 11 years ago
Posts: 6643
Member since: Sep 2008
Sounds as if you wan to do what the tenants of 3 Gramercy Park West did, in 1969. You all buy the building as tenants-in-common, with occupancy rights to your apartments. You'd have a co-ownership agreement setting out everybody's rights and responsibilities. It wouldn't be a co-op, as far as the laws go, so no financing, and the RC apartments wouldn't be automatically decontrolled upon vacancy.
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Response by NWT
almost 11 years ago
Posts: 6643
Member since: Sep 2008
Or those of you who want to buy could join together to acquire it from the landlord, and would then be the sponsors in a co-op or condo conversion.
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Response by NWT
almost 11 years ago
Posts: 6643
Member since: Sep 2008
milenkopekija, there're a few current co-op conversions. E.g., the Carlton House because there's a ground lease. The Chatsworth is going co-op, too. Maybe because the co-op can keep its underlying mortgage, and so buyers don't have to pay as much up-front.
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What neighborhood is this in?
How much is your rent? Are you subject to any rent regulation? Any idea of your rent relative to what the building would charge in maintenance? Any idea of your rent relative to the value of the apartment as a co-op?
He cannot sell you your unit - it's against the law. Crazy but true. Your only chance is to get a group together and buy the entire building from him and then convert is per the conversion laws or hope that he converts the building himself.
It's very unusual for a small landlord to go through the bureaucratic mess this is a co-op conversion so my guess is that your only chance is to get your landlord to sell the entire building and then you convert it.
no one converts the building in a co-op anymore...the landlord would go for a condo because its worth more
Sounds as if you wan to do what the tenants of 3 Gramercy Park West did, in 1969. You all buy the building as tenants-in-common, with occupancy rights to your apartments. You'd have a co-ownership agreement setting out everybody's rights and responsibilities. It wouldn't be a co-op, as far as the laws go, so no financing, and the RC apartments wouldn't be automatically decontrolled upon vacancy.
Or those of you who want to buy could join together to acquire it from the landlord, and would then be the sponsors in a co-op or condo conversion.
milenkopekija, there're a few current co-op conversions. E.g., the Carlton House because there's a ground lease. The Chatsworth is going co-op, too. Maybe because the co-op can keep its underlying mortgage, and so buyers don't have to pay as much up-front.