Posted by John Behle on January 25, 2002 at 19:47:35:
In Reply to: mortagaes and Co-ops posted by RussG on January 20, 2002 at 08:51:01:
A "Co-op" is a stock cooperative. You hold your percentage of ownership through a percentage ownership in the corporation that owns the property. So, in simplicity, if there were 50 units, you would own 1/50th of the corporation.
Then you have a "proprietary lease" that gives you long term lease rights to a particular unit. Title insurance should be no problem as title companies have dealt with stock cooperatives for many decades. Conventional loans on co-ops are harder to obtain and private paper is harder to sell.
I've bought and created paper on co-ops before and would be very leary myself as a buyer. You end up as a minor share holder. I had some paper on an apartment building that had been turned to a co-op. When the market had a downturn, they voted to turn it back into an apartment and didn't even bother to tell me. I only had a small interest, but it was gone overnight.
- Re: Stock cooperatives/valuing portfolios Russ 16:23:49 1/26/2002 (0)