WHAT ARE CO-OPS?
In San Francisco, unlike other cities, majority of high-rise buildings are condominiums. Nevertheless, there are1700 people residing in co-ops or cooperative apartments. In these buildings, proprietors are the shareholders of an organization that owns the buildings; thus, a coop structure is similar to that of a corporation.
Each owner is a shareholder with shares allocated based on the market value of their unit. Like any corporation, a housing cooperative has a board of directors, however, every shareholder has an influence on how the Co-op is run. The value of their shares – and thus the sales price of their unit – can fluctuate. I’ve compiled a list of co-ops currently on the market, with prices ranging from $525,000 to $25,000,000. However, financing options for co-ops can be limited and challenging.
Recently, a listing agent reached out to me, seeking my expertise as a problem solver. The agent had a listing for a co-op unit at 1200 California Street, Unit 8B, priced at $2,087,000. Typically, co-ops require 30% down payments and are funded by specific banks. But I was able to find a lender willing to accept a 20% down payment – a difference of $209,000 in this case. This lender even offers loans up to $1,200,000 with as little as 5% down.
For those interested in learning more about co-ops, I’ve attached a video that provides an in-depth look.
Need assistance? Feel free to call me: (415)225-7920, or email: [email protected]
Best wishes,
Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983
NMLS #205637
DRE #00874630