Got the building...Now should I condo convert?

2 Replies

I just got a large apartment building. It's already individually strata titled. I'm just debating whether or not I should try selling off the units. I paid just over 2million for the building. It has about 50 units and if I could sell them as condos at the market rate I should be able to make around $45k net per door, ending up with a total next profit before tax of around $2.25m . Probably would be the best thing to do with the building. Especially since it's across the country, long ways away. Then I'm thinking I could take those funds and buy several properties, perhaps even right here where I live. Anyone have any thoughts on this? Or any insights on the best way to do a condo conversion? Or would you just buy and hold and not sell it off?

Condo conversion is a topic all to itself. You have to know
your market to know whether condos are selling well and
whether there is a demand for them.

I would not assume right off that condo converting is the
way to go.

But...whether to hold your building depends on whether it
is cash flowing. Do your rents cover your mortgage, taxes,
and the like? If so, hold it.

Condo Conversion is amazing if you have the knowledge of how easily sell the condos to investors and owner occupiers. I just did a conversion this past month and sold a 14 unit building out within a month.

I packaged the deal into 14 separate Joint Ventures at a 50/50 profit share. The JV partner put up their credit to qualify for the mortgage and my company put up the 20% down payment with a 5 year targeted exit strategy.

The deal was incidently no money out of my pocket as I used the increased equity spread from financing the 14 individual units as investment condos versus buying the building as a single apartment based on cap rate.

If any investors would like to know more or work with my company on Apartment Building Condo Flips visit my website:

www.realestatejvclub.com

Thane

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