Anyone with experience in converting a co-op into a condo? Of course, you cannot convert a single unit in a co-op into a condo. But, some co-op developments convert their entire housing unit into condos.
I know someone who bought a co-op in a development that was being turned into condos. This person made BIG MONEY just off one deal. The co-op was bought for about $130k, the conversion fees cost about $30k, total was $165k.
The condo’s comp’d out at $280k, and is now under contract for $235k.
I think this is a SICK deal. Nothing more than some paperwork and some updating in the condo.
Anyone have any experience with this?? How do you find these developments going through this conversion phase?
So nobody has any information on this topic?
I’ve ran across several of these. Yes there can be good money in it, but you can also take a bath too. big money = big risk. Go in with your eyes wide open.
Here in Chicago, it seems like every apt. complex has gone or is going condo. The market is flooded right now. I know a couple of people who are taking a bath, too many investors, not enough retail buyers to complete it.
Now if you the one who owned the entire building and convert it and sell out the condos you might be in better shape. But you also have to buy the multi unit building & convert it…sounds risky to me too.
Actually, I have to say that there’s minimum risk involved here.
Remember, the co-op was purchased at 135k and after conversion it comp’d at $285k.
So where is the risk? It almost doesn’t exist, the profit margin is huge.
Well, the real risk depends on the area and if there’s flooded inventory of condos available.
Luckily, this specific deal I mentioned was not in a flooded area, so the demand was right.
As long as there is someone to buy them. If they don’t sell the profit marging is $0. :biggrin