How To Flip Condos Before They Are Built? - Posted by Nick

Posted by Reif on May 06, 1999 at 21:17:23:

One problem with this is the Homeowner Association fees. From what I understand, the builder keeps them as low as possible, in order to sell the condos as fast as possible (plus, of course, everything is new - doesnm’t need a big repair fund). Once the developer turns the condos over top the homeowners, they realize they can’t get by on the bare-boned developer budget, and the fees go up.

I don’t think this is a deal breaker, just something to watch out for.


How To Flip Condos Before They Are Built? - Posted by Nick

Posted by Nick on May 06, 1999 at 09:13:00:

Hello everyone;

The condo market here in Chicago is hot.

I heard that some people flip a condo for as much as
$10,000 to $15,000 profit!

How can I flip a condo?

Please help! I am sick and tired of sitting on the sidelines.

I finally decided to actually take action!

Re: Interesting… - Posted by Stacy (AZ)

Posted by Stacy (AZ) on May 06, 1999 at 16:47:51:


I don’t know for sure, but I’ll take a crack at it. It sounds a though investors are signing purchase agreements with developers before the condos are built. I know for the new houses I’ve bought, this normally only takes about $500 to $1K earnest, until it gets to the “customization” phase, where the tile, paint, carpet, and any upgrades are about to be installed, and then more money goes into the kitty. Each builder will have a different payment scheme…some will have you contribute more money at the framing stage, etc.

Then, it seems these investors are waiting until the condo development has sold-out, and are either assigning their contracts or simul. closing with new buyers. I would prefer assigning the contract, since I wouldn’t want to deal with the extra deposits before closing.

It doesn’t really surprise me that flippers are making 10K to 15K. If you are first to buy in a development, you usually get a better price than the last buyers. My last new home appreciated by over 10K before I even moved into it because the builder had raised the prices monthly throughout the project.

Anyway, this is my guess. Hmmmmm.