I currently live in San Francisco, where real estate prices are out of control! However, I noticed that once you start looking at large apartment complexes, 42 units for example, the price per unit isn't too bad (roughly $325k). How realistic is it to try and find a bunch of people interested in buying a place like this with the intention of converting them into single condos, instead of apartments?

Any feedback would be greatly appreciated :)

@Michael Hudelson I assume you would do this to sell off the condos at a profit. If so you need to start with determining the value you can get for each unit to see if the project feasible.

If you determine the numbers can work you will need to go to the city to find out if you can condo the building and what the requirements are.

Assuming you can do the conversion then it's time to make some offers and get a contract contingent upon approval for condos. You can gather cost estimates for the legal and construction aspects of the conversion as part of your due diligence.

Theres a little more to this equation but this will give you an idea of how to start the process.

Can’t condo convert more than duplexes in SF. 

Time for plan B...

@Amit M. Thanks for letting me know. It's sad news though :(

@Michael Hudelson its very common to create a syndication group to purchase larger assets. If you are interested in condo conversions you should connect with @Benjamin Lapidus because his company crushes it with condo conversions and has a ton of experience. 

@Danny Randazzo @Michael Hudelson we got out of the condo conversion game and the residence game altogether. Once you sell a new condo, you have to manage the HOA for a time and have a contractor's warranty that can last years depending on your jurisdiction that can kill the deal years after its complete. The margins in our market closed up so we don't mess around in that highly litigious strategy anymore.

Great to know @Benjamin Lapidus as a participant in a few HOAs I can't imagine the role in managing them!

Originally posted by @Michael Hudelson :

I currently live in San Francisco, where real estate prices are out of control! However, I noticed that once you start looking at large apartment complexes, 42 units for example, the price per unit isn't too bad (roughly $325k). How realistic is it to try and find a bunch of people interested in buying a place like this with the intention of converting them into single condos, instead of apartments?

Any feedback would be greatly appreciated :)

How do you propose the group comes together and buys in bulk? As the building cannot be sold off individually at the present time (not a collection of condos), the suggestion feels like you would be pooling funds from multiple investors. That is regulated by the SEC and the CA regulator. 

I'm honestly not sure. It was just an idea I had. I'm relatively new to dealing in real estate, so I was unaware of the limitations until after creating this thread. I appreciate the input though! It's helping me learn how this all works :D

Originally posted by @Michael Hudelson :

I'm honestly not sure. It was just an idea I had. I'm relatively new to dealing in real estate, so I was unaware of the limitations until after creating this thread. I appreciate the input though! It's helping me learn how this all works :D

No problem. We are here to learn.

The issue comes from the difference to building a company and building an investment vehicle where investors are in effect, asking you to manage their money for a financial return.