Limited Equity Co-op's: Can they be used as an investment?

Question

I came across this option when looking for possible investments that my son who is just out of college could try. I really don't know much about them so any advice would be appreciated.

Don Konipol · Answer

Account Closed, each is different with different sets of rules and regulations. Most only allow you to sell for the same price as you paid, so there is no equity buildup - unless the stockholders vote to discontinue the limited equity format. However, since most of these have taken on large co op loans, the equity buildup is very slow. Also, many are government regulated - i.e. receive tax credits for being part of a program, and can only leave the program once a certain time period has elapsed.

Account Closed · Answer

Thank you for all the information. It seemed like what I found online did have a lot of rules and regs. So I assume you can't sublet or lease them either?

Are there other creative options for investors who are first time buyers with limited credit history?

Limited Equity Co-op's: Can they be used as an investment?

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