Condo Conversions-Developers/Purchasers

[rosecorp]

Hello,

Hoping if the members/developers experienced in Condo Conversions will share their experiences
and provide suggestions.

Also,if we could hear from the purchasers of similar conversions,share their experiences,pitfalls
and suggestions.

Thanks

 

[housingrental]

Hi Rose
If you`ve yet to, check out REIN`s book on this

 

[Thomas Beyer]

benefits: profitable exit for developer if done well

issues to be managed / to be concerned about:

1)needs partially dischargable mortgage
2) needs sales channel that can close many units at once
3) need major upgrades in suites and in common areas .. i.e. needs MAJOR CASH to complete
4) not all types of properties make sense
5) not all areas make sense
6) taxes will go up (AB) or may go down (ON)
7) municipality may not allow it
8) may be stuck with 2-12 units, possibly teh worst ones to sell later
9) needs major marketing/sales effort that costs $s
10) banks take 90-100% of net sales proceeds to leave you your $s at the end only
11) easy in principal .. hard in the real world

I have done 2 conversions in Alberta (24, then 42) .. aborted 3 .. and about to do a 3rd one this year (47 units) !

What is your SPECIF question / issue ?

How many units ? Where ? Upgrade status ? Suite size / suite type ? Mortgage to be discharged ?