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I am interested in purchasing a Coop property for my daughter in Manhattan...

Asked by Voices Member, Tue May 15, 2012

...the lender is basically give me 2 options:
1. Treat this as an investment property
2. Put my daughter on the mortgage

I know it's difficult to get board approval and many board don't allow purchasing for children so in this case which option would make it easiest to get approved for the purchase through the Coop board?

Help the community by answering this question:


The best of both worlds is a condop - priced like a cooperative but the by laws of most allow for unlimited rental after a short ownership period. There is no mortgage recording tax to be paid and closing costs are much less. I have 3 right now on the upper east side ( in the 60's) ranging from $349K to $535K - aproximate footage 450 - 800 feet! Low monthlies and gym in the building. the building allows purhasing for children to live in or copurchasing.
Please feel free to contact me at 917 363 1992 or email me at fhammond@halstead.com
Thank you
Fern Hammond EVP
Halstead Property LLC
1 vote Thank Flag Link Wed May 16, 2012
Hi Ben,

I'm not going to beat a dead horse here. You have received all the right answers from various brokers around the city.

We have the ideal coop starter home, turn key, no work needed and in a central location making it easy to get around. (1) you can purchase with your daughter so both of you are on the mortgage making it a primary residence with a lower rate and (2) the bylaws of the coop are 2 years primary and/or pied e terre then unlimited subletting following that 2 year period.

We've been doing business in this bldg for years on both the sales and rental sides of the business. These are great units to hold onto while your daughter has the ability to upgrade down the road if she is able and wants to without having to sell. Follow this link below for further details and I will happy to answer any additional questions you may have. Looking forward to speaking with you.



Roger Lindsay, VP
Associate Broker
The Lindsay Group

133 W 72 St, Suite 201 || New York, NY 10023
C: 347.909.6494 || O: 212.799.4392 || eFax: 888.308.2772
1 vote Thank Flag Link Tue May 15, 2012
Many Boards also are also not keen on investors and have rules as to how long you can rent the unit. For instance, our former Board was you can rent it for two years once you have lived in it for three. I think they would have less problem with you buying it with or for your daughter. It is in their best interest to have you responsible...best of luck.
0 votes Thank Flag Link Tue May 22, 2012
The vast majority of board applications are approved. For those of you who are new to the process, going through a Board application is a New York rite of passage. The country club thing is alive and well in Manhattan and it will never go away.

Find a condo or a condop. Or find a broker that knows the coop board policies. No point in wasting your time my friend.

For the mortgage, as an investment it be hard to find a mortgage and a good interest rate.

Thank you!

Demsker Realty
"Your Experts in NYC Luxury Apartments & Lofts"
304 Park Avenue South
New York, NY 10010
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0 votes Thank Flag Link Tue May 22, 2012
I know a few Co-op buildings with flexible policy which allows co-purchaser including student, guarantors and unlimited sublet.. They are 1BD Co-Op priced below $400,000.
As a professional investor and real estate broker, I have represented many buyers to find their dream home. You are welcome to contact me at 646-244-9167.

Shu-Fen Striedter
Kian Realty NYC
0 votes Thank Flag Link Sun May 20, 2012
i have a one bedroom condo available in Midtown, no board approval required. Angelan@nestseekers.com for more information, or call me a7 718-791-5427, i have a few others that would allow solely the guarantor to be on the mortgage, best of luck.
0 votes Thank Flag Link Sun May 20, 2012
An "investor friendly" coop would provide flexibility. Tudor City has a couple, I remember from when I was looking for an investment coop many years ago.

0 votes Thank Flag Link Fri May 18, 2012
A Condo with Coop rules may be a better option for you. My mother purchased a Coop for me in Manhattan when I attended college and she dfinitely had a harder time selling it in the end. But at the time the Coop was struggling with vacanies.

So I suppose the best place to start is with a knowledgeable city broker; my favorite agent in NYC is Pauling Evans with Sotheby's: 212-400-8740. She has helped many of my clients with apartment sales and purchases.

Good luck!

Joanna Parker-Lentz
0 votes Thank Flag Link Fri May 18, 2012
Hi Ben,

You and your daughter are cordially invited to my Open House

Sunday May 20th from 12 noon - 1:00 PM

Residence 6K at:
The Residences at Worldwide Plaza
(a white glove, full service luxury condominium)
350 West 50th Street
(between 8th & 9th Avenues)

Residence 6K is a loft-like large renovated corner studio with soaring14' ceilings and great sunny views. Located in "Hot" Clinton/Midtown west neighborhood. No problems purchasing for your daughter at The Residences at Worldwide Plaza.



Hope to see you Sunday!

Mitchell Hall, Associate Broker
The Corcoran Group
0 votes Thank Flag Link Fri May 18, 2012
Mitchell Hall, Real Estate Pro in New York, NY
I am not sure who you are using for a lender, but there are very few investment co-op loans out there, and you are not going to get the best terms. You also will have to put more money down.
If your daughter has sufficient credit, and any income at all, I would be a non-occupant co-borrower with your daughter. The co-op board will prefer that option, because as an investment unit, they have to count that as such on their co-op questionnaires that they complete for anyone else, and would probably rather not, especially if there are stilll units retained by the sponsor. We used to call this a kiddie co-op, and many boards are fine with it because they know that you have the ability to help out should your daughter not be able to handle everything on her own.
0 votes Thank Flag Link Fri May 18, 2012
in some buildings if your daughter is not working you are the only one who should be on the stock and lease. the building will not allow it any other way.
0 votes Thank Flag Link Wed May 16, 2012
Hello Ben,

Is there a particular reason you are looking to purchase a Co-Op? There are some really good deals on Condos right now in the city. Do you know in what area of Manhattan you are looking to purchase?

I have had several properties purchased for me by my parents in the city, so I am very familiar with these transactions both from the parent's side and from the child's and from the professional standpoint of how it is to be done.

I will say that one advantage to having your daughter on the mortgage would be that her credit would be established so long that monthly payments were on time and that the loan amount was not crazy high as to lower her credit score due to debt to income ratio - but if she is young and just needs a place for college or so, the mortgage may be paid down enough by the time she will want to actively use her own credit. This helped me a ton!

There are several co-ops that do allow purchasing for children and even a more select few that do allow investment - but overall, you are correct not many do. When are you looking to make the purchase?

Please feel free to reach out as I'd love to help represent you and your daughter in this transaction.


Travis R. Old

Licensed Real Estate Salesperson
City Sites Real Estate Group
3 W 57th Street (57th Street @ 5th Ave)
New York, NY 10019

Cell/Text: (347) 601 - 9600
FB: http://www.facebook.com/travisrayold
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Follow me or Like me to stay up to date on the best deals, hottest property, and no fee rentals!
0 votes Thank Flag Link Wed May 16, 2012
There are coop boards who do allow parents to purchase for their children. Coop boards will not allow investments this signals that you are planing to rent it out. Why not look at Condos?
0 votes Thank Flag Link Wed May 16, 2012
FIrst of all, there are buildings that prohibit parents buying for children even if you pay 100% of the purchase price in cash. They just won't touch that clientele.

Any lender who says you can treat a co-op as an investment property doesn't know very much about how Manhattan works. That may not matter to you in a lender, but I will not even show co-op apartments to investors. I think it is so ill-advised, and since I work as a buyer's broker, my fiduciary responsibility is to work for the best interests of my client. I do not think buying any co-op to rent out is a prudent business model.

A buyer's agent (everybody gets called "broker" here) could really make a difference for you. The vast majority of sales in NYC involve two brokers, and we belong to a trade association that requires sharing of commissions by the listing agent, so that is how brokers get paid. If I can help feel free to let me know.

Karla Harby
Licensed Real Estate Salesperson
Rutenberg Realty
New York, NY
0 votes Thank Flag Link Wed May 16, 2012
Hi Ben:
As already stated, co-ops are not purchased as investment properties. You would either be buying with or for your daughter. Nowadays many more co-ops allow parents to buy for children then years ago. Each building has its own rules. Many who allow this kind of purchase do so if the child has a job and is able to pay the maintenance themselves. If the child has an entry level job and is capable of covering their maintenance its most likely they do not earn enough yet to also be liable for the mortgage payments so having her name also be on the mortgage is not a good idea. Since both the buyer and the child must both submit full financials for the board package, if it appears that your daughter could be liable for more monthly payments than she is capable of making, the sale will be turned down. There are also some co-ops who will allow the parent to buy for their child elmployed or not but not as many.
This is something that would be better answered with a phone conversation. Depending on what your budget is a condo would be an easier purchase but a co-op is certainly not out of the question for you.

Feel free to contact me if you would like to discuss further. Neighborhood possibilities will also make a difference on what you can get.


Nancy Brennan
email: nbrennan@corcoran.com
0 votes Thank Flag Link Tue May 15, 2012
Hi Ben. Just to make things easy, there are co-op s that allow gifting. It would have to be her pern residence.
You can also purhase where a pied a terre is allowed. No co-op can be purchased as an investment property .
Per say.
I would like to explain more if you would like.
Call me 9173703078
kristine Devine
Web Reference: http://www.belmarc.com/dev
0 votes Thank Flag Link Tue May 15, 2012
That is a tough situation. You may consider speaking to a good mortgage broker to see what other options they can offer, compare to a direct lender... Your solution also depends on your daughter's employment/ income situation and a particular coop board's requirements to that regard (each board has it's own rules). Even if you find a coop that allows parents buying for children, they may either require several years of maintenance in escrow or deny your application if your daughter does not have sufficient for the board current income. You should really sort all these issues out with the coop board through brokers (and read their Rules and Regulations) before going into the contract.
0 votes Thank Flag Link Tue May 15, 2012
Depending on your budget, why not consider purchasing a condo...
0 votes Thank Flag Link Tue May 15, 2012

Congratulations on the decision.

The big problem with Co-ops is that they require a minimum term of living in the property before using it as an investment but there is diverse flexibility and it is on case to case basics.

My suggestion is to hire a real estate agent that will help you through that difficult process, and remember your agent is paid by the seller even if he represents your best interests.

Best of luck with all the rest.

Warmest Regards,

Raoul Sodogandji
International Market Specialist
VP of Sales and Rentals at the RS Group
Licensed Salesperson

(o): 212.252.8772 (EXT.782)
(c): 347.993.8333
(e): raouls@nestseekers.com

"In the past, our growth has been by referral of current clients. We've never really done much marketing." Please refer us to your friends and family.
0 votes Thank Flag Link Tue May 15, 2012
Each building is case to case, so you will need to find a building that will allow purchasing for a child. There are some out there and the key is finding a liberal co-op board that will allow this.

You will really need to work with a Manhattan real estate broker to be able to weed this out building by building.

Co-ops do not make good "investment" properties unless you are only after equity building; but if it is for the possibility of renting it out for rental income for the long term, this is not the type of ownership you should be looking for--but a condo.

Read: How to Buy an Apartment in Manhattan and Get the Best Interest Rate


I feel it is important to note that I am also a part time working real estate appraiser in Manhattan, and I know the true value in an apartment, so I make sure that my clients do not over pay for an apartment that is not worth it's salt. This license and education give my clients a higher level of expertise that most brokers do cannot offer.

If you need help for your daughter's coop purchase with a true real estate professional in every sense of the word, I am happy to help. Feel free to read and watch video testimonials from my past clients at


Jennifer Chiongbian
SVP/ Associate Broker
Rutenberg Realty NYC
0 votes Thank Flag Link Tue May 15, 2012
Hi Ben,

Most coops prefer co-purchasing to a parent buying it outright for their child. Most coops do not want investors so number 1 is not a good option.

They much rather see that your daughter is working and responsible for at least the maintenance and or mortgage payments. They will look at both you and your daughter's financials, credit references etc.

You really need to be working with an experienced local buyer's agent familiar with the coop purchase process. Feel free to contact me. I'm happy to provide expertise and seasoned insight.


Mitchell Hall, Associate Broker
The Corcoran group
0 votes Thank Flag Link Tue May 15, 2012
Mitchell Hall, Real Estate Pro in New York, NY
Hi Ben,

The short answer is: It depends on the building. There is no one-size-fits-all answer to your question, as many co-op buildings in Manhattan are as unique as its inhabitants. Your best bet would be to work with an experienced real estate agent who can help focus your search.

Please feel free to contact me if you have any questions about this process. (As a buyer's representative, it costs you nothing to retain my services, which can help smooth the process considerably.)

Best regards,

Bruno J. Navarro
Licensed Real Estate Salesperson
BOND New York Properties, LLC
1776 Broadway, 19th Floor
New York, NY 10019
347.725.0944 mobile
212.804.8948 direct
270.675.9195 fax
0 votes Thank Flag Link Tue May 15, 2012
The two options the bank gave you are because this purchase of this co-op for your daughter is not a primary residence for you. Treating it as an investment property is one way. Your rate will be higher this way. You are concerned about the other option they gave you, i.e. having her name on the mortgage as you say "it's difficult to get board approval and many boards don't allow purchasing for children." You are correct on this, but the thing to look at is that you cannot purchase in a building that doesn't allow parents purchasing for children, regardless of what's on the mortgage. You are looking at it in reverse. You have to select a co-op that allows parental purchasing in the first place. If they don't allow it, it doesn't matter whose names are on a mortgage. If you don't want to treat this as an investment purchase, you need to purchase a condo or a co-op that allows parents for children.
I would very strongly advise you use a skilled, experienced buyer's agent. We streamline your search, explain and clarify these sorts of questions, negotiate on your behalf and take you through every step of the process, trouble-shooting along the way. The sellers all have agents and so should you. It levels the playing field, and you will save time, money and aggravation.

Jenet Levy
Halstead Property, LLC
212 381-4268
0 votes Thank Flag Link Tue May 15, 2012

I have many years of experience dealing with "coop boards" the rules, board packages, mortgages, buying with children, etc..It really depends and varies building to building the rules and leniences of the buildings and what they will and will not permit.
I would be delighted to discuss this further with you in depth. Please feel free to email me at Laura@kwnyc.com or phone me cell at 917 399 5954.

0 votes Thank Flag Link Tue May 15, 2012
Hi Bed , I can answer any questions you have , Shoot me an email at Dhuckins@bondnewyork.com .
0 votes Thank Flag Link Tue May 15, 2012
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