Condo Conversion
When doing a condo conversion do you have to refinance & cash out in order to sell off the units at different stages? :-?
When doing a condo conversion do you have to refinance & cash out in order to sell off the units at different stages? :-?
Not if the bank you're dealing with is willing to release a portion of the note each time.
Have your RE attorney investigate this option with your bank.
Other than that you'll need to do cash out refis with simultaneous closings to satisfy the outstanding note, which can get pretty costly if you've got multiple units.
[addsig]
Thanks for the advice. I am looking to do a condo conversion and trying to cover all of my basis.
What are you converting? A multi-family?
I'm in the process of converting a multi right now.
I just finished the first unit and listed it this weekend.
Paid $595K for a 2-unit multi. I'm listing the first unit for $350K. The second unit is larger and I'm listing that one in a month for $360K.
I stand to gross $115K, less expenses ($55K for rehab, condo docs, realtor's commission, monthly note, etc.), meaning I'll net roughly $60K.
It's tough work, but it's worth it.
Let me know if you need any more insight into the process.
It's an arena of RE that's tough to find any extensive information on.
It's sort of "learn as you go," which can be a little scary at times.
[addsig]
I am looking to convert a mult-family unit. I have spoken to the person that handles approving the conversions in my area. Your advice has been helpful. I am more concerned with figuring out creative financing techniques and total costs involved in the process. What type of financing techniques did you use? :-?
I used an equity line of credit for 20% down to avoid PMI. Then I got a 5-year ARM for the remainder of the purchase price.
Be sure you get a loan with no pre-payment penalty. I can't stess how important this is. Most pre-payment penalties are 2% if the note is paid off during the first few years. In my situation, that would've cost me $12K. Ouch!
Understand that requesting a loan with no-prepayment penalties will limit you to and exclude you from certain loans.
Also, try to get a loan where you can roll the closing costs into the overall note. This way you limit you out-of-pocket expenses.
But, as I stressed earlier, you must get a loan with no pre-payment penalty.
As for other expenses, you'll need condo docs.
In Mass, I needed an architect ($1 sq. ft. living space-- including basement--to create master deed), a surveyor (mine ran me $1000 to plot the land, deed parking) and a RE attorney (roughly $1500) to produce legal condo docs.
Total cost of my condo docs was around $5K, which was close to the estimate I'd heard from others who'd converted in the area.
But for your area, any decent RE attorney should know the correct procedure, or at least know someone he can refer you to who does.
Good luck.
[addsig]
You will need a loan that has a "partial release" clause. This will allow you to sell each unit. We have found that the local community banks are more willing than the bigger banks.
Good luck,
Rey
monkfish, if r still around, I would LOVE to chat with you about condo conversions!
I ordered his book via amazon, not directly from him, hope it arrives soon.
The review I read is positive about the book itself.
A complaint was made in reference to this post being arguementative. We moderators are here to try to keep civility in the forums, we are not here to censor objectionable views.
I do not see this post as being arguementative.
I personally will let it stand, if any of the other moderators feel differently then they can address it.
I do ask that those with differing views treat one another with respect.
NC_Yank - moderator
NC_Yank,
I agree with you -- just because people have differing opinions does not necessarily mean that the post breaks the "argumentative" rule. I, too, feel that the post should stand, and I would like to thank woodsong for doing some "due diligence" here.
Nancy
Lets see.........
One that does not directly answer your question,
Will avoid or change the issue,
Will accuse those that attack him as being liars etc.
Will duck and hide when it gets hot..............
Well ladies and gentlmen, what we are looking at is
a future politician.
NC_Yank
Absolutelly right!
Gentlemen,
I just had to delete a post to this thread. Some of the mods have wanted to shut this thread down but we have kept it open in light of the abundance of evidence that has been displayed. If any future posts are added to this thread let us make sure it is short, to the point, pertient and new information, and not an attack. Facts have the wonderful ability to speak for themselves. There is no need to beat a dead horse.
Thanks
It was my post that was deleted. I was simply trying to relay new and insightful information to everyone here that you need not use the WaybackMachine to see that a "Tom Porchello" on Amazon seems like Robert J. Abalos. Check out the current "Wish List" for "Tom Porchello" -- it says "Terra Trust".
Thanks,
Logan.
Quote:
For proof that Terra Realty International LLC filed with the secretary of state on 6/18/04 please click on this link:
http://www.secstate.wa.gov/corps/search_detail.aspx?name=TERRA+REALTY+INTERNATIONAL+LLC&ubi=602406168
Further searching the Sec. of State site above shows that Mr. Abalos is not the registered agent for any other company within the state of Washington.
The address of the Secretary of State registration appears to be one of those executive rent-an-office places in downtown Seattle:
Registered Agent Information
Agent Name ROBERT ABALOS
Address 1700 7TH AVE STE 2100
City SEATTLE
State WA
ZIP 98101
SEATTLE DOWNTOWN
1700 Seventh Avenue, 21st Floor
Seattle, Washington 98101
http://www.pbcenters.com/locations/washington/executive-suites-seattle/
The link provides a number angry customers can call and ask for Mr. Abalos if they wish to reach him.
So our money appears to be going toward his rental of office space in downtown Seattle. Anyone on here live in Seattle? The location is easy to find on MapQuest or Google.
[ Edited by NC_Yank on Date 06/30/2005 ][ Edited by LFINDFW on Date 06/30/2005 ]
The moderators have discussed this post at great length and we have allowed this post to stand.............however we must still keep to the forum rules.
I whole heartedly advise some to refresh their memories about such...............which includes putting in telephone numbers, personal info and email addresses in a post.
I do believe that much of this is an inadvertent error from copying and pasting, however it does make our jobs harder when we have to go back and continually edit out sections of posts.
I have edited a few, however I would appreciate that any post you participated in be checked and edited as necessary to keep to the forum rules.
thank you
NC_Yank
Another address easily found on the Internet from www.networksolutions.com for Robert J. Abalos in Seattle, Washington is:
Robert J. Abalos
Harbor Steps Apartments
1200 Western Avenue, Apartment 1520
Seattle, Washington 98101
http://www.harborsteps.com/main.htm
***UPDATE: ROBERT ABALOS EVICTED FROM HARBOR STEPS APARTMENTS ON JANUARY 11, 2005 BY SEATTLE JUDGE***
[ Edited by LFINDFW on Date 10/17/2005 ]
Thanks for the heads up. Are there any good resources out there about land optioning & development? Some of his articles seemed to make some sense to me.