Condo Conversion Question...

Comments(7)

• 
  Boston31st March, 2004

  You need an attorney for the condo docs & an architect for floor plans. That is probably it (Cannot say for certain without the details). I could certainly tell you who to use. However, I am uncomfortable posting others' names & #'s here. Feel free to email me directly; **Please See My Profile**

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  nathaninc5th April, 2004

  I have heard that it costs about $4000 to do a condo conversion. I am also looking for a good lawyer and architect to aid with the process. I found someone on the web who purports to have had a lot of experience with condo conversions. Email me (see my profile) & I'll give you the URL. I think someone like this, if he really knows what he is doing, would be useful. I don't know much about condo conversion except that it can take between 2 months to 6 months. This is one of those topics where it seems to be absurdly hard to get some definitve answers. Any idea why? Seems like the time is ripe for an "Idiot's Guide to Condo Conversion".

• 
  monkfish7th April, 2004

  Hey, Nathaninc.
  
  Here's what I've learned about the conversion process.
  
  I recenlty spoke with an architect, who quoted me $1 per sq. ft of living space. This includes the basement.
  
  The property I'm converting is about 3500 sq. feet (again including the basement) so the plans will obviously run me $3500. He said it will take them about two weeks to get the plans done.
  
  I'm not exaclty sure how much legal fees are because my friend is a RE lawyer and is charging me next to nothing. As for time, he said he could turn the legal docs out in a week.
  
  One of the more challenging aspects of this whole conversion was the financing. It seems as if banks make the process as difficult as they can for investors.
  
  I ended up going with Washington Mutual because they are the only lenders who would give me a loan with no closing costs and no prepayment penalties, which was key.
  
  Anyway, they told me that when I sell these units there's only one way to pay off the original note: simulatneous closings.
  
  That said, there are actually two ways to do the simultaneous closings. One way is I need to find two buyers who are both willing to close on the same date. For obvious reasons, that's close to impossible.
  
  The other way is to sell one unit and then do a cash-out refi on the other, at the same time, on the same day of course. This would satisy the original note because I'm selling one unit and then I'm in essence purchasing the second. This gives me the convenience to sell the second at a later date, as oppossed to finding two people to buy at the same time.
  
  Either way, the banks make you jump through hoops to make this happen.
  
  I close on my multi on Monday, then the rehabbing begins. I plan to have both units back on the market by the weekend of May 8.
  
  Take care.
  [addsig]

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  myfrogger7th April, 2004

  A ball park figure including everything is about $15-20k! It doesn't matter much how big the unit is. I could write a book here so I'm going with the short version rather than the 10 page version.
  
  I might write an article about it someday.

• 
  monkfish8th April, 2004

  "A ball park figure including everything is about $15-20k! It doesn't matter much how big the unit is."
  
  Huh?
  
  Frogger, I'm not sure what you're talking about.
  
  How can every conversion cost between $15-20K for docs and plans, when I just explained that my total cost will be $3500?
  
  Granted, I'm not paying any legal fees, but still there's no way they'd total $12 to 17K, by your math.
  
  Also, your claim that costs are the same no matter how big the units are is ridiculous.
  
  Again, every architect I've talked with charges by sq. ft of living space.
  
  So how then could a complex of 10 units/15,000 sq. ft cost the same as one with 3 units/ 4500 sq. ft?
  
  I'll answer for you: they can't. It's an impossibility.
  
  You said you were giving us the "short version."
  
  Well maybe you should give us the longer version, so you can back-up your unfounded "flat rate" claim.
  [addsig]

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  InActive_Account8th April, 2004

  If you use a home plan designer you can save 30-50% on the design work. Are you required by the city to have an architect stamp on the plans? What type of building are you converting?

• 
  Boston8th April, 2004

  In MA, the stamp is required. No way around it in Suffolk County.