I?m not sure how ?Own Your Own? works, but it sounds different from what I have in my mind. I don?t want to have a land. (Well, at least in that way Is it possible ?Own Your Own? is like Co-op, which you buy a share of the company?
My understanding of condo conversion is that once you do all the work with city and county and file a master deed, along with two separate deeds, you have yourself a brand new condo. And those two separate deeds will/can include a part of the land. Some land will probably remain as common area.
You make homeowners association to handle common needs. As long as you don?t assign yourself or your company as manager of the HOA, then when you sell all units, you are out.
I?m still pretty much very beginning of learning this stuff?so please correct me if I am wrong.
Hi. I posted this to the commercial board, but the traffic there seems to be not much, so I am posting here as well.
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I was looking at MLS this afternoon. One duplex in my area is going for $850K. This is single story duplex look more like two houses side by side. Condominiums which are in bigger communities are going for around $550K. The condos I am comparing have the look of apartments.
I have read some article about condo conversion in the archive and understand that a master deed have to be filed, by-law have to be drawn up, physical conversion work have to be done, notice has to be given to tenants and condo type financing have to be secured.
Here are my questions
Assuming the physical work is minimal (ie separate utilize already etc) and general repairs are all it needs, isn?t it fairly simple and easy to get a condominium type blanket loan on this? (The article I read explained about the need to make a plan presented to the bank in details and they might be picky.)
If I live in one of the unit, does that help secure the loan?
I am assuming condo converted from duplex, which look more like town house style, is more desirable than apartment looking condos, therefore I can demand more. If the apartment looking ones are $550K, mine can go over $600K. Is this true? (I don?t find something like this listed.)
If #3 is true then I can get $1.2M for them after spending $850K, one year of waiting (the time I need to give to current tenants), some legal fee, and some repairs. 1,200K-850K-50K (repairs, fees and cost) = $300K. Plenty left for me. Am I missing something?
Re: Conversion: From Duplex To Condo - Posted by Joel Daviod
Posted by Joel Daviod on June 13, 2006 at 20:14:51:
I saw a posting from last year about a duplex condo conversion…did you go ahead with it? If so are you living in it and finally how did you finance it? I am trying to do the same thing but the banks seem to be giving me a hard time. Any help would be appreciated!
I have been involved in one of these types of deals and am looking for more.I flipped this duplex to an associate of mine.He took a duplex and turned it into condex’s… these are townhomes but each unit is seperatly maintained by each owner. No condo docs or trusts or condo fees. It’s a pretty straight forward process in MA, an attorney to do some paperwork and a survey company. Couple thousand bucks.
My associate did minor renovation to one unit, new carpet, paint. And a major renovation to the other unit… new kitchen, baths, appliances. I flipped it to him for &185k. He held the building for a year, sold one unit for $175k and we (I work as his agent) have the other unit under contract for $180k right now.
Condo’s are really hot here now and I’m looking at doing more of these… I think theres good demand for these units.
Re: Conversion: From Duplex To Condo - Posted by Killer Joe
Posted by Killer Joe on April 25, 2005 at 01:38:52:
whyK,
In Long Beach they had/have neighborhoods where you could buy an ‘Own Your Own’ which was basically what you are contemplating. The twist is the buyers don’t own the land, you keep that, and they pay you every month, too.
The units would sell for less than a condo, however. So a trade off of instant profit vs long term income is an issue. But if you own the land a generation from now (what?), where would you be?
Is it possible ?Own Your Own? is like Co-op, which you buy a share of the company?