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July 26, 2007
all cash/ no mortgage co op
Thinking of buying a co op in Brooklyn. Its an all cash co - op .No mortgage. The building has no debt. Its a great deal. Does anyone have any advice or experience with this kind of purchase? Also does anyone know of a good real estate lawyer in the Sunset Park area ?
Comments
What is the deal? I have bought two houses with cash. It isn't much different. No mortgage. No closing costs. What is your concern?
Posted by: anonymous at July 26, 2007 9:30 PM
I left a post about this a couple days ago. These old coops are a good deal if you can pay cash. No mortage and the whole building was paid off long ago. It's a no brainer.
Posted by: Rick at July 26, 2007 10:14 PM
But unless the building accepts mortgages in the future, you will also have to sell to a cash only buyer and those can be tough to find.
These buildings are definitely a great deal, but the potential profit is also lower, so it depends on how long you want to stay there I think.
Posted by: bolletje at July 27, 2007 10:16 AM
Just curious, what's the connection between the building having no underlying mortgage and accepting only cash purchases?
Posted by: John at July 27, 2007 2:39 PM
There's no connection, per se, but several co-ops in Sunset Park don't accept mortgages and don't have one themselves because they were built by Finnish immigrants in the 1920's and the Finns abhorred all forms of debt. However, it can still be challenging to get financing from a bank to purchase an apartment in the Finnish co-ops because most of them only recently began allowing bank financing and their paperwork is unorthodox, very old fashioned (and sometimes in Finnish!). Additionally, the co-op board may be inexperienced with the very concept of mortgages and how they work and don't seem to understand what kind of paperwork the banks are looking for them to have.
Posted by: bolletje at July 27, 2007 5:24 PM
If you can only sell to an all cash buyer in the future you are limiting yourself. I bought all cash in bklyn heights a few years ago.as long as you have an income to support your other expenses the board will love you!
Posted by: guest at July 27, 2007 6:55 PM
If you can only sell to an all cash buyer in the future you are limiting yourself. I bought all cash in bklyn heights a few years ago.as long as you have an income to support your other expenses the board will love you!
Posted by: guest at July 27, 2007 6:56 PM
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