Melanie Fox and Daba White prepare a pitch for prospective investors on how Manhattan co-ops work. They cover the basics: shareholders own the building through a corporation and get proprietary leases, the board oversees operations and finances but has limited power, and co-ops have strict rules on who can lease and for how long.
Chapters
You did. Like you, you have a co op in New York and you would like to explain to us how that works and see if Deal Hunter can give us a breakdown and then you can validate the information for us as an expert on that. Because I don't think anybody on this call actually knows about a co op in New York.
Oh, okay. So I'm going to write it, but before I submit it, I'll see if I, if I got it right. So I could say I am a shareholder in a New York City Manhattan co op and I'm on the board. Like that?
Yep. And then, and then tell it that you would like to explain it to a group of investors so that we can explore how to, how to become passive investors in, in the model that you have. See if it can explain that to us.
Become passive investors in the same model we have. So like.
It'S what you mean?
Just tell me if I didn't understand.
Yeah, no, that looks good. Go ahead and just send it and see if it, see if it's able to give us a, at least a little bit of a pathway.
Okay. See if I don't know anything about how to make it passive. Well, I guess I could sort of have one thought about how to make passive income out of it, but. Sorry, I think you're on a delay. Can you say it again?
Yeah. So if you read it, you could probably validate some of the information there as far as like how a co op operates or functions and how the, how the structure looks. Right.
Sure. Do you want me to comment as I read?
Sure.
Okay, so the overview says we operate as cooperative housing co op in Manhattan. We where shareholders collectively own the building through a corporation and receive proprietary leases for their units. Yes, except I don't know if it's going to say this. You can. There are very strict rules on how much you can lease out because it's not a condo, it's a co op. So Manhattan co ops are very strict as far as how many years you can lease it out and also who can come in and also how many times you can do it. So yes and yes, but as members of the board, we oversee building operations, finances, improvements. Yes, yes to everything. Except this is very limited.
Okay.
We'Re so what? Passive investors. We are offering a way for passengers to bind to our model through structured capital contributions. Investors won't hold the direct lease or unit but will hold equity shares in a separate investment vehicle that turn into become shareholder in the co op. Okay, so if I can interpret this, the way that it was explained to me the way that it it was explained to me years ago when I was looking for a co op versus a.
