Condo Conversions?

[wallacehobbs]

Hi,

I was wondering has anyone done a condo conversion?

ie:  Buying an Apt. Building and converting it over to condo's and selling them one by one?

Any Real Life feedback would be appreciated.

[tedjr]

Howdy Wallace:

I was involved here in Austin with an 80 unit conversion on East Riverside Drive. It is still condos but we ended up selling all the units to a Ca group who finished the repairs and rented them as higher class apts. I was the construction super and sales super and a partner as well. I could have made a pile of money had it worked. My first impression when I saw the property was why condo these. I was right. The owners and our partners still got their money out of the deal and actually hired my dad to help with their other projects in Waco. It was a great learning experience.

[wallacehobbs]

Thanks for the information.  

[tesw]

I'm doing a 20 unit in Phoenix right now.  Good money in this, and you have to consider the 10 year liability window and do everything possible to reduce your risk.

Tes

[Loanforbiz]

Hello I am from San Diego where condo conversions are on every corner. I have never done one myself.

DP

[tesw]

Well, you have to be pretty sure that you can complete and sell before prices go south and interest rates go north.  You need an attorney who has a specialty in this field.  You need need a surveyor to do a plat map and a drafter to draw floor plans of each unit type.  Then you need to get permits - probably your GC would pull - could be separate ones for each type of work and each unit - and related city inspections.  An owner can do certain work under own supervision, but not electrical, etc. unless so licensed.  

Well, there's some thoughts!   Tes

[shayas]

The angle not considered here is finding a lender for Condo Conversions. Many of the classic conduit/condo lenders are starting to restrict their lending area. Many have blacked out the Vegas, Florida and even NY markets. I am currently finding financing for a few condo-conversions across the country.

One other point - find out where pre-sales are legal. It can help out down the line with financing them.

[tesw]

Lender should also be willing to do financing for condo sales, as there may be few comps to appease another lender.

Tes