Logan Kessler 🐀

@MarhinDeMosr @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire I think it becomes more doable if it’s held by the co-op instead of tenants directly. Makes a tenant leaving less of a headache

Double checked - yes, they get lowered tax rates, less than half as long as they are owned only and don't rent. The interest is another issue. They can get a 1% loan for the major repairs stretching it out over 30 years without breaking he bank. Mortgage loans for owner co-ops is lower, but still 5.88%. It puts the total monthly max around $1900 instead of $2200. Then again, this would be 30 years and done, at which point you'd be left with taxes, insurance and maintenance to pay for. That leaves the tenants decide if they can afford another $400 a month each. With major repairs complete and regular maintenance, it would certainly be a better home than before... Past that, the usual complications - resident responsibility of their share of debt unless they sell their apartment to someone else, a resident dying before 30 years are up... etc. Doable if they are willing to pay the price for 30 years.

NOW: Mamdani says his admin will transfer ownership from bad landlords to non-profits. “For buildings that have suffered chronic neglect, we will work to transfer ownership to responsible stewards. Stewards that include community land trusts, non-profits, or even the tenants themselves.”

@Class0305 @Oswald_A_Lisker @MarhinDeMosr @breccastoll @realDailyWire 100% we are shooting ourselves in the foot by catering to a generation of individuals responsible for breaking the generational cycle our system is built around

@TheLoganKessler @Oswald_A_Lisker @MarhinDeMosr @breccastoll @realDailyWire I blame boomers.... Literally got handed the world on a silver platter by their parents, and refuse to pass anything down to their kids. They unironically march at "No Kings" rallies without realizing they're the kings....

@JBologna27 @js81tn @Class0305 @breccastoll @realDailyWire That seems predatory

@TheLoganKessler @js81tn @Class0305 @breccastoll @realDailyWire The biggest piece you are missing is that the majority of these complexes rely on late payment fees as well. Not a good look for tenant owned

@js81tn @Class0305 @breccastoll @realDailyWire New York offers loans to co-ops at sub-market rates, I would imagine they would offer assistance in the process as well.

@TheLoganKessler @Class0305 @breccastoll @realDailyWire I’m just trying to figure out how 100 tenants would get through underwriting (not all of them will qualify) and where would down payment money come from. It’s not just a simple “walk into a bank and get a loan” kind of situation.

@Oswald_A_Lisker @Class0305 @MarhinDeMosr @breccastoll @realDailyWire Biggest mistake we made was letting investment firms pump up residential properties

@TheLoganKessler @Class0305 @MarhinDeMosr @breccastoll @realDailyWire it's too big now. The private equity and investment firms like Black Rock and Black Stone are too exposed. It would destroy the global economy if all the properties they owned across the world suddenly devalued by 50%

@Class0305 @js81tn @breccastoll @realDailyWire I think a good step would honestly be to extend the benefits given to coops to small landlords making good-faith efforts to meet standards

I do understand what you're saying, and on paper in makes sense. Unfortunately, it hasnt seemed to work that way. I used to work in NYC as a project manager for residential building. Its just not as easy as that. The politics/unions alone will bleed you dry. Im not saying it "cant" be done. Im just simply relaying what we experience and the real worlds results.

@Oswald_A_Lisker @Class0305 @MarhinDeMosr @breccastoll @realDailyWire I agree, inflated property values hurts everyone involved: landlords included

You don't seem to understand that the reason it's expensive is because it's being propped up by the governments of the world. Trump said he had the ability to crash the housing market overnight, bringing down prices for homes and rent. He said he wouldn't because it would destroy the boomers wealth.

@Class0305 @MarhinDeMosr @Oswald_A_Lisker @breccastoll @realDailyWire I agree, current solutions are a bandaid at best: there needs to be a compromise between reasonable rents and cost. I don’t think the utility model would be awful?

Oh, for sure! But this isnt really about your typical co-op or tenant owned space. The people who can afford that already have no problems with the current real estate climate. These things are being done specifically for rent controlled tenants and spaces. Im more focused on the fact that if you control the inputs, you're effectively controlling the output. You can tell someone, "Hey, you can only charge X for Y". Then turn around and tell them they need to spend Z, to make their product better. Especially when Z>X.

@Class0305 @js81tn @breccastoll @realDailyWire Under an HDFC they likely qualify for a DAMP tax exemption reducing the tax burden to $13k-40k/mo(your range). They also have access to below-market interest rates, 4% instead of 7%. Even adding $1k on top of a base $1,500/mo(mortgage) is below-market for NYC

You are missing soooo much.... A 100-unit NYC multifamily building can easily have: Property taxes: $25k to $80+k/month Insurance: $10k to $40+k/month Union labor/supers/porters: massive cost (NYC REQUIRES UNION LABOR) Heat/hot water/electric common areas Elevators Roof/HVAC/plumbing failures Facade compliance (Local Law 11) Lead paint/asbestos compliance Legal fees/evictions/nonpayment Vacancy loss Repairs between tenants Reserve requirements from lenders Water/sewer bills Management/admin/accounting

@MarhinDeMosr @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire I looked into it, co-ops can be exempt from rent control(since the tenants get to collectively set the rates). They also have reduced property taxes and access to below-market interest rates.

Not even close. Subtract $700 from this and that's what it would cost the current owner. And worse, this assumed amortizing the repairs over 30 years. Corporations can, co-ops can't the same way. Current estimates - $250,000 for each unit the first year to repair major issues. A co-op would need to secure a loan to pay major maintenance costs, so they wind up paying over $330,000 in interest on top of the $250,000. A corporation could simply pay the maintenance costs and simply raise rent about $700 to cover the costs. But, aside from tenants being able to pay the extra or not, Mamdani has frozen rents. He has these older units locked into just under $1500 a month. Even accounting for a $700 difference in expenses per unit, there simply is no way to do the repairs without losing money on the property for 30 YEARS. So, yes Mamdani has made it too expensive for landlords to do required repairs on these older buildings. But he's also made it even more prohibitively expensive for the tenants to form a co-op.

@js81tn @Class0305 @breccastoll @realDailyWire Let’s assume tenants form a collective and borrow under a commercial loan at ~7% for a loan of $30 million over 30 years for a complex of 100 units. Thats $162k/mo or $1,620/mo per tenant. You charge an additional $500/mo: $2,120/mo; that’s $50k/mo for any other expenses. Doable.

@TheLoganKessler @Class0305 @breccastoll @realDailyWire How would the tenants pay? It’s not like just anyone can go out and get a loan.

@Class0305 @VERYGREEDYPIG @breccastoll @realDailyWire I know people hate them but HOAs

You also have to consider your neighbors in that purchase. You think a couple with 2 young kids, is gonna buy in the same building as those who dont value ownership on the same level? Neighbors effect the investment decision when it comes time to move, or renovate. If you decide to renovate to the tune of $100k, but you will never get your investment back because all your neighbors dont care and trash the building. All of the sudden the condo in gentrified Brooklyn for $200K more makes more sense from an investment perspective. As, progressive as people claim to be, they still dont want to live in that type of environment. Its why they kicked the immigrants out of Marthas Vinyard in 3 days.

@Here4thevi38022 @khacterina @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire Yes, adjacent to a credit union vs a bank kinda

@TheLoganKessler @khacterina @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire So they would become capitalist.

@Class0305 @erik_london @breccastoll @realDailyWire But we can build a datacenter and another lane approved same day ofc

@TheLoganKessler @erik_london @breccastoll @realDailyWire Oh you found a frog on your property!? Well, now you have to do a $1.2 million dollar environmental impact study.

@VERYGREEDYPIG @Class0305 @breccastoll @realDailyWire Ad hominem.

@TheLoganKessler @Class0305 @breccastoll @realDailyWire 🤣 you’re retarded

@The_Memeries @Class0305 @breccastoll @realDailyWire That’s dumb 😭

@TheLoganKessler @Class0305 @breccastoll @realDailyWire Usually taxes. Sitting on a decrepit property often is better for them than selling it. Blame NYC and NY.

@Class0305 @erik_london @breccastoll @realDailyWire I agree those need to be overhauled

I work on the engineering side of residential. I can tell you with 100% certainty. The reason property is as expensive as it is, is because municipalities hold us hostage with regulations that add's 10's of millions of $ to the overall project. That gets passed on to you, the buyer.

@xHumanCapitalx @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire Better than private equity imo

@TheLoganKessler @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire Tenants union? What could possibly go wrong?

@Psalm1839_ @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire Buying an apartment is already possible?

@TheLoganKessler @Oswald_A_Lisker @Class0305 @breccastoll @realDailyWire Yea let’s let each unit have 50 owners, what could possibly go wrong? 😑

@Mona809 @Class0305 @breccastoll @realDailyWire I mean they would probably be evicted like they are under the current system. The only thing changing is the owner of the property, the system otherwise is identical

@TheLoganKessler @Class0305 @breccastoll @realDailyWire Why don’t the tenants just buy a house or an apartment instead of renting? If the tenants were suddenly the owner of their apartment, they would magically be able to afford the payments, renovations, improvements and repairs? What happens if they don’t pay their portion?