Real estate in Cuba: co-ops

I was on vacation in Cuba last week. It was magical. Not only that, but I met a really cool woman from Jackson Heights on a bike tour! What a small world we live in.

Let’s talk about real estate! Working the room in Cuba.

Naturally, I was interested in how real estate worked over there. I am fascinated by the crumbling Spanish buildings and the Soviet built high rises. Like, how did they figure out who lived where? Who took care of what? Why were some buildings falling down and others looked great?

Can you imagine how breathtakingly wonderful these apartments could be with a little TLC?

The answer was interesting. After the revolution, the people were given the deeds to wherever they were living. If they were living in an apartment building, suddenly they were in business with their neighbors. Just like a New York City co-op!

This had me thinking. Co-ops are really bizarre institutions, aren’t they? Unlike a condo, which is real property, with a co-op you purchase shares in a corporation which holds the deed to the building. And we get into bidding wars in order to go into the business of owning a building with a bunch of people that we do not know, and most likely would never choose to go into business with in any other situation.

Meanwhile, most co-op purchasers literally have no idea whatsoever about what goes into owning a building. Yet, we do it, because it’s generally a more affordable means toward owning property in New York.

Getting a stake in the business is a real process. You have to lay your soul bare to your prospective neighbors by giving them all your personal information. You allow them a glimpse at your spending habits by providing months of bank statements. (“Wow, this person really spends a lot of time at the wine store!”). Perhaps you will need to pen a personal essay explaining your life story (undoubtedly highlighting your selflessness and willingness to work for free), and impose on friends and associates to write letters of recommendation. Then eventually, if you are qualified, will invite to come “interview.” It’s crazy, right?

What do you think about co-op buying process?