Selling and buying -Coop

For the most part Bridge Loans disappeared after the financial crisis. I vaguely recall one or two banks offering bridge loans somewhat recently- though you might not find too many banks willing to offer this option. That said, there are strategies you can employ when you are buying and selling simultaneously that can give you some flexibility in this situation though much will depend on the nature of your search as well as your current co-op.

Something most people don't realize about bridge loans is that usually you have to be in contract already on both the apartment you are buying and the one you are selling to get one.

*UptownSpecialist* <<<<>>>---

Thanks so much for your response! ---
I had a feeling Bridge Loans were somewhat a thing of the past.. It all seems so stressful, I'm in love with an apartment on the market, but more then likely I won't have a chance.. Care to share some of your strategies?

I hadn't thought about this topic in a long time - selling and buying in NYC (especially co-ops) is so complex that I can't imagine timing it just right. I ended up selling, renting for 6 months while I kept looking and then moving into the place I finally bought. If you tell people that in other parts of the country, they look at you like to have two heads...

Lanzz,

Oh wow, that's exactly what I'm trying to avoid, renting and moving twice .. UGH!

If you have enough assets, arrange a for line of credit that you can use as a "bridge loan" during the transition between 2 apartments.

One option is that you ask the buyer of your current apartment for 2-3 months post closing rental agreement at slightly above market rate once the sale price is agreed upon.

I created a 2 page document for my clients on buying and selling simultaneously and while I try to post here when I can- I can't post all my suggestions. Here are a few ideas though they might not suit your personal situation and since you are talking about a co-op- not all co-op's will be flexible on some of the options .
• Post Possession Agreement - Asking the buyer to allow you to remain as a tenant for a pre-determined period once the sale closes. Not all co-op boards will permit a post possession agreement. Also worth noting, since you are asking the buyer for a concession, you should be prepared to give something up. It is fairly common for the buyer’s attorney to request an amount be held in escrow until the seller moves out.
• Short Term Rental – This strategy assumes you are willing to sell without another home identified or without a post possession agreement. This could be a bit inconvenient by needing to move twice but will maximize negotiating power for both deals.
• The All-Cash Offer (once the sale closes)- While all cash offers are extremely common in Manhattan, if this is a possibility – it will be one tool in a buyer’s toolbox. An all cash offer without contingencies will be viewed as a stronger offer, but this could be potentially be viewed similar to offers with financing contingencies.

Thanks >>UptownSpecialist>>> for your wealth of information, much appreciated.

Bridge loans are alive and well.