Condo Conversions
Does anyone have any experience doing condo conversions? I am trying to get an idea on how many units it takes to make a conversion make sense. Also, where do I find someone reasonably priced to do the docs and how much should I expect to spend. I am focusing on 8-25 unit deals.
In a hot area like you live in a duplex conversion into condominiums might make sense. Find a local real estate attorney who is familiar with condo conversions to help you get the documents togeather. You may need to get a rezoning. You will also need to form a condo association to take over management when homeowners own a higher percentage of the project than you do.
My attorney estimated that I will have about $15,000 in total fees for converting a building. I ended up finding only one attorney in my city with any experience in the area. I'm sure there is a few more but this is likely a very niche area for attorneys.
Doing the conversion wrong will delay the process when dealing with the city and if you get on the city's bad side you may be stuck with an attorney bill, a property you don't know what to do with, and bad rep.
My attorney seems to think that conversions can only make sense financially if we are talking about 100-200 units but obviously the numbers don't lie.
GOOD LUCK
Mike, I own some condos and there is no association at all. If you are are converting something as small as a duplex, I don't see much need for an association, as long as it's stated in the sales agreement that the owner is responsible for yard maintenance and whatever on his/her portion of the land. That's assuming, of course, that the land is part of the deal. In my case, it is, and if you had only a duplex, it could easily be. If it was a 57plex, I can see a problem. I remember lufos mentioning that after a certain number of years, a condo became the property of the land owner again anyway... or something like that - ask him.. By the way, Lucius, what happened to those photos you promised to email me??? 3:15am thoughts, something to consider. Zach
myfrogger, are you suddenly working out of Pontiac? Sounds familiar, haha! Z