I am sorry that this is more of a query but I am just here thinking & this idea pops in my head while watching Night Shift. I thought...could you convert a hospital into an apartment complex. I went to google & found some examples but came on here & couldnt seem to find it. I havent researched this section of the forum but could you give meal a general rundown to try to analyze a deal of this kind? I would be greatly appreciated to be turned onto the right track. I would need to find investors/partners for this deal and looking for a no money or as less as possible due to my current situation & lack of experience. I have not done any investing yet but have read a lot. I also have a few people i can reach out too for investing in this deal.
Oh, I was thinkibg of trying to get a loan in a way where my investors can put up the cash for the down payment & a few yrs of rhe loan payments till the property is converted & on its feet.
No one will give you money for this deal. You are talking about a hospital to multifamily conversion that will probably be an 8-figure deal. Even if you knew a few investors with 8 or 9 figure net worths looking to invest in such a project, they would want a GP with decades of experience managing such a complicated project. Costs could easily run double what is projected if you don't know what you are doing. This is about as high risk as you can get in real estate, even if the person leading the project is experienced at this kind of project.
I figured that would be the case & yes they do have that time of wealth. Is wholesaling possible if i do a lot of the beginning leg work on the analysis.
I would hope a local would chime in here, but my guess would be given the relative affordability & abundance of land in the majority of Texas (assuming this deal is close to where you live), this project would be a non starter since conversions tend to work best in more expensive areas like the West & Northeast. It would probably be much cheaper and less complicated for a developer to put up a 100-unit garden style apartment complex.
However, if this deal were potentially profitable in Laredo, TX or wherever, the ways you could make money off it would probably be some kind of fee from the developer for bundling some equity partners together for him, or just in proving your acumen to one of these high net worth individuals so they would invest directly with you in the future. This is a large, complicated endeavor, so I would expect it would take a few years for any fee to pay out.
Wholesaling, is this just forum chatter? Stop trying to go elephant hunting with a slingshot.
The hospital I was born in is now a retirement home, much better suited to a hospital layout, there are higher and better uses of such a property than taking it to a residential use, the lowest yielding project for a large building unless it was a luxury joint. And your area won't support that.
Check out the Principles of Real Estate, highest and best use and what is more valuable. :)
Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com
I will look into all of this. Thank you for all this helpful info. I am still looking for a good 4 plex as a first investment through access of a fha loan or build on a lot through a fha 203k loan. I just thought of the idea & wanted a basis of how to improve a community in my city. I also did think of section 8 or another elderly geared facility with shops/PT&OT clinic, there is already a set up for a pharmacy, a coffee shop, & a restaurant. Just so that the reno isnt to killer. Thanks for the knowledge & help. I will stick with the niche I have been researching heavily on.
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