Brooke Davida, SVP
The Corcoran Group
You say you are a cash buyer, wanting to buy a co-op from overseas. What you don't mention, and what no one below asks, is the critical question of whether you intend to occupy it or if it is an investment.
If this is an investment, you should only be considering a condo. Co-ops expect that the unit be owner-occupied. If you are planning to occupy it, you are going to need to prove that you will be working here, have ties here, and are establishing residency here. That is to show that you will be occupying it going forward, but to get the approval, having no credit history here (you say it is excellent in your country but not established here) is going to be a stumbling block as is the inability to produce a variety of other documents required in most board packages, i.e. landlord letter, employer letter here, references here, etc.
As to whether the board would accomodate your interview and closing to be one visit for you - they generally set up the interview on their own schedule, and the time it takes the attorneys to schedule the closing could leave a gap, making your visit is more extended than you would like.
All things considered, by far the best option for you is a condo.
Hope this helps.
Halstead Property, LLC
Licensed Real Estate Salesperson
As for what needs to be done in order to purchase in NYC, consult the many answers below. Good luck.
Your question has many facets on how to answer this. I will just give the basics. I typically give my clients who are unsure of how to navigate a co-op board; a 10 point guideline on how to pass, a sample of a co-op board package and what questions are typically asked, and a financial steament that is pretty much across the board for what co-ops require in NYC. From there, I let them decide if a co-op is truly the right fit for them, expecially if they are foreigners. Many foreigners finding this process financially and personally intrusive. If they are willing to jump through the hoops, then WE (buyer and agent) determine how stringent of a co-op board the buyer is willing to go. Lastly, your credit rating in your home country will not count when purchasing in the US. If you wish to receive the sample co-op application and 10 point guideline on how to pass the board interview, as well as a list of the financials they ask for, please feel free to contact me.
Whether it is a co-op or a condo, it will all depend on the building you will like.
And let's not forget about Condo-ops.
Did you choose a co-op yet? do you have a specific building in mind. Some co-ops are pretty easy going.
You financial and your personal background is very important too.
And most of all why are you buying in NYC? is it an investment? A pied a terre? a corporation purchase?
In most coops, you must reside there for the first two years etc..
I work for citi-habitats Relocation and I work with many international people and every buyer is different
It is best to contact me and chat over your background and your requirements and then i will be able to guide on your best purchase. You can contact me anytime...
Sr. Asso broker
While cash is usually king many coops prefer buyers/shareholders to have a small mortgage and liquid assets rather than spending all their assets on the purchase. Lenders provide protection to coops. A coop is personal property not real property. Coops are less expensive but more difficult to purchase.
Only the coop board can initiate a foreclosure. When a buyer has a coop loan, the lender, the buyer and coop sign a contract called a recognition agreement. The lender agrees to give the coop the 1st lean on the apartment. In exchange the coop notifies the lender when a shareholder is 3 months in arrears the lender will pay the coop the maintenance. The coop is guaranteed their maintenance.
A sponsor unit in a coop or a condop may be a viable option or alternative to a condo. Coordinating a board interview, approval and a closing may be difficult.
Feel free to contact me. Local real estate questions are always welcome. I live and work on the Upper West Side.
Mitchell Hall, Associate Broker
The Corcoran Group
Coop boards require to show your financials and liquidity and every board views this differently. Also coops most of them want you to reside in the unit and use them less as a pied a tier...If the coop will allow you to live in the apartment part time and you have enough documentation you can provide that shows assets and liquidity a coop board may approve you....but you should really like to buy a condo it's truly much easier.
If you need any help please let me know I'd love to find/sell you a great place! Laura@kwnyc.com