Developing Family-Owned Residences into Townhouses

[TonyMandrique]

A family friend was planning to develop family-owned principal residences into townhouses and wondering if any REIN members have done this in the past. If so, sharing your experiences and thoughts would be very much appreciated. Thanks.

 

[Thomas Beyer]

You are talking condo conversion i.e. converting existing rowhouses on one title to several ?



or are you talking re-development i.e. tearing down a house and building 3-4 THs ?



Your question is rather vague.



I have done several condo conversions.



Share some more specific details please so I or others can help you.

 

[TonyMandrique]

[quote user=ThomasBeyer]or are you talking re-development i.e. tearing down a house and building 3-4 THs ?



Sorry about that.....the family is planning to demolish adjoining old residential properties and build 9-10 townhouses. They got ball park figures of whole construction costs from developers/builders doing projects in the area. But, the family members are overwhelmed with the idea and not really sure how to proceed. By the way, the properties are situated in a hot market in Toronto. Any suggestions or comments are very much appreciated. Thanks.

 

[bizaro86]

[quote user=TonyMandrique]But, the family members are overwhelmed with the idea and not really sure how to proceed.



Might it be better to sell the parcel as a ready development site to an experienced developer/builder? You may be able to negotiate taking some of the purchase price in kind (ie. as a townhouse) if they'd prefer that.



Regards,



Michael

 

[TonyMandrique]

[quote user=bizaro86]Might it be better to sell the parcel as a ready development site to an experienced developer/builder? You may be able to negotiate taking some of the purchase price in kind (ie. as a townhouse) if they'd prefer that.


They are considering these options. They will meet the developers/builders in the next few days and may decide.



Thanks Thomas and Michael for your feedback.

 

[housingrental]

This

Good post Michael

If I have a lot that works great for a convenience store I'm not operating a convenience store on it. I'm not in that business. Sell it to someone that is.



[quote user=bizaro86][quote user=TonyMandrique]But, the family members are overwhelmed with the idea and not really sure how to proceed.



Might it be better to sell the parcel as a ready development site to an experienced developer/builder? You may be able to negotiate taking some of the purchase price in kind (ie. as a townhouse) if they'd prefer that.



Regards,



Michael

 

[TonyMandrique]

Thanks Adam for sharing your thoughts. They might consider this.

 

[Thomas Beyer]

Adjoins properties ? One ? Two ? 4 ? More details please !

Development is a business which requires deep skills and access to capital. Does the home owner have that ? Why not sell and get out ?

 

[TonyMandrique]

[quote user=ThomasBeyer]Development is a business which requires deep skills and access to capital. Does the home owner have that ? Why not sell and get out ?



Thanks Thomas.



They may have access to capital but limited business experience and skills. The family may decide anytime.



Thanks again.