SHEEPSHEAD BAY'S ONLY INDEPENDENT NEWS BLOG

Courtesy of New York Times

In a real estate piece profiling the square-mile community, the New York Times portrayed Brighton Beach as a place where condos, co-ops and generally tall buildings are thriving despite a battered market. And fueling that success was an ocean view and a bustling community – and housing stock that can be easily demolished.

Starting around 2005, so that residents inland could enjoy (and pay accordingly for) panoramas, developers began erecting apartment towers as tall as Ms. Correa-Pinto’s. On those lower-slung blocks, the buildings seem gargantuan, like redwoods among ferns.

Keep reading the NYT excerpt, and see what we think they forgot to ask.

Anti-trash sign posted in the front window of an apartment building.

The message on this sign addresses what seems to be a growing problem all around Sheepshead Bay: trash left in front of residences by its very own residents.

In case the ALL CAPS message is too ‘loud’ to read, here’s the full text:

To those leaving their coffee cups, cigarette packs, & other trash next to lobby window stop it.

You might find your trash left by your apt. door & the management & all tenants made aware of what disrespectful slobs you are. As adults you should know better.

Rising co-op prices could alter Sheepshead's character for years to come (Photo courtesy of Lisanne Anderson)

What to do, what to do, what to do? When panic consumes much of the real estate market, many of my clients were still able to find good values for co-ops in Sheepshead Bay. Last week I completed two closings, one for $150,000 for a one bedroom in Gravesend and another for $225,000. You can’t find prices like that in nieghborhoods as good as Sheepshead Bay anymore. However, cue the tax man, because Governor David Paterson now wants to put a mortgage recording tax on co-op purchases.

Let me explain: When one buys a home, let’s say in Midwood, the purchaser will pay anywhere from 2.05 percent to 2.175 percent mortgage tax on the amount of mortgage they take out for the property. That occurs at the closing. However, since co-ops were not considered real property for tax purposes (they were thought of as personal property, more specifically shares in a corporation), co-op purchasers would literally pay a fraction of the closing costs that purchasers of homes and condos would.  We’re talking thousands upon thousands of dollars in savings, which is, among other thing, what made co-ops a good value. Now, to close a budget gap (until our next one shortly thereafter) Governor Paterson wants to do away with this exemption. You can imagine that co-op owners and propsective owners aren’t thrilled by this.

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Ronnette Gleizer was one of more than 20 residents of 2800 Coyle Street protesting the co-op board
in the building's lobby

Residents of a Sheepshead Bay co-op apartment building have turned a series of disagreements into an ugly, bitter, and personal fight pitting neighbor against neighbor.

The worst part is, it can happen in almost any co-op.

The entrance to 2800 Coyle Street sits about halfway up the block, between Emmons Avenue and Shore Parkway. Last Tuesday, January 26, all was quiet on the sleepy street. But inside, about 20 disgruntled residents gathered in the lobby donning protest signs and trading war stories about the building’s overseers.

They said they were there to oppose the “Tyranny and Corruption of the Majority Board of Directors,” specifically five members of the eight member board that they say run the gamut from incompetent, to corrupt, to an organized crime syndicate. (Technically the board has nine members, including one appointed by the sponsor, LeFrak organization, who remains neutral.)

“It’s just amazing the tactics that they use,” said Diane D’Agostino, a former vice president of the board. “It’s like I’m not even living in the United States of America. I have never been treated so horrendously as I have been by this board. It’s terrible.”

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Real estate is a nebulous industry, filled with scams, screwballs, and the occasional sweet deal. That’s why we’ve asked a locally born-and-bred real estate lawyer to make sense of it all. Sheepshead Bay bankruptcy and real estate lawyer Daniel Gershburg will contribute a regular column about the real estate scene. His first piece gives buyers tips for getting into that coveted Sheepshead Bay apartment co-op, a segment of real estate that represents a huge chunk of sales in the neighborhood.

So you want to buy a co-op in Sheepshead Bay? But you have questions that your real estate broker refuses to, doesn’t, or can’t answer. What do you do?

Well, what I can tell you is that when you buy a co-op in Sheepshead Bay, or anywhere for that matter, the first thing you should do is do some internet research on the address. You can try looking on Trulia.com. But my search would be more general. There are tons of forums online discussing issues with co-ops. From aggrieved co-op owners complaining about poor management to lawsuits against corporations, you can find everything. But that’s just the start. You should also ask your real estate broker about whether they have had past clients in the building and if they could put you in touch with any so you can ask them about their experiences. Is this out of the box? Absolutely. But it works better than many other things out there. Do your research before you purchase a co-op in Sheepshead Bay.

But let’s take this a step further. Say I am purchasing a co-op in Sheepshead Bay. I’ve done my research, spoken to people in the building, and now I have my interview. What can I expect?

Anything. That’s right, anything. A co-op is a corporation. The board of directors are therefore making a business judgment as to whether or not you “fit in” financially and otherwise with the building. Now unless you have a habit of fighting pit bulls in your apartment, you’ll likely be fine so long as your financials are okay. Having said that, if you are rejected for one reason or another, the co-op technically does not have to disclose the reason you were rejected, other than saying, “Sorry you can’t live in this co-op in Sheepshead Bay, try Brighton Beach.” Yes, yes you can try and sue and all those good things, but it will cost you money and will usually not leave you in a better position. The best way to avoid this embarrassment is to literally be as prepared as possible. Each co-op has a “package” which has to be prepared including your financials, references, et cetera. Make sure you go over this diligently before the meeting and everything is complete. Make sure you look prepared for the meeting.

When you buy a co-op in Sheepshead Bay, when will the closing take place?

This is one of those “Why is the sky blue?” questions. There are so many variables involved here. Typically a closing for a co-op in Sheepshead Bay will take place immediately after the co-op approves the individual and the bank clears financing. There are, however, many hurdles and obstacles that your attorney will have to navigate for you. Sometimes the bank is late, or they haven’t apprised you of issues they have, which delays financing. Sometimes the board won’t meet for several months, thereby delaying the closing and causing you to make sure your rate for your loan is locked with the bank. Sometimes the management company’s attorney will request a delay in closing to make it occur at a convenient time for them. There are literally multiple variations that could delay your closing, so make sure you choose an experienced real estate lawyer in Brooklyn to help you through this. It’s not a sales pitch, it’s reality. Just ask anyone who has gone through the process.

Daniel Gershburg Esq., is a real estate and bankruptcy attorney with offices in Sheepshead Bay and Manhattan. The practice was specifically set up to change the way people view attorneys, by incorporating radical ideas like calling people back quickly, returning emails, giving clients ’round the clock access to their cases and charging low fees. For more information please visit Brooklyn Real Estate Attorney Daniel Gershburg‘s website.