Hi, I have just come across an opportunity to invest in a "Co-op" I am not familiar with investing at all, so this is where I need help to find out if this is a great deal, good deal, or not a deal at all. They are asking 7K to purchase a share, with monthly payments of $732 for the next 5 years. Eventually the co-op , which are now townhomes will become condo ownership. In 5 years I will have the choice of purchase for below market value (of about $40-50K) and I also have the right of refusal to buy or sell my share. So could someone please tell me is this something that I should invest in as a starter investor? Thanks for your input!
know that a co-op is not ownership of real estate - it's a proprietary lease - you don't get a deed with a co-op, any co-op.
i'm not that familiar with conversions from co-ops to condos or townhomes.
these are all seperate things as well. you say it's a co-op with townhomes - in new york at least - co-op, condo, townhome are all totally different.
for a co-op to convert to a condo or townhome - the corporation that buyers own SHARES of, not land or real estate, have to convert the leases to ownership.
i guess the current corp offers buyouts to the current owners and actually that's probably what this is, if you buy now, you'll get a discount on future buy out - but like green said - you have to really do some due-diligence and obtain information on the corp - like you would if you were to buy stock - you should have access to financials, company ownership and management, etc.
what about subletting the unit as well?