Home » Real Estate

Condominium Conversion, Exploring The Hot Craze

Aug 17, 2007
For the last two decades, Condominium Conversions have emerged as one the hottest commercial property in real estate industry. It has been a hot craze among real estate developers and investors. You can find a huge crowd of Condo developers in the real estate market. A large numbers of people are engaged in condominium business and they are getting rich. In addition, buyers are also enjoying the benefits of having their own house at a very affordable price than paying rent every month. It has been a very effective way of earning great returns within a few months of the investment. In fact, when the prices of single-family homes became unreachable for the common buyers, Condominium conversion came up as a great affordable alternative.

How Does Condominium Conversion Work?
As a condominium converter, the first thing you need to do is an extensive research in order to find out the right location for the condo conversion. A right location is the one where there is little competition with the equivalent single unit homes. However, the price of a condominium unit need not necessarily be lower than that of single-family homes always. In fact, in the areas where condominium units have to compete with affordable single unit homes, the overall prices of condominium units are very low and they provide a great alternative for the buyers to get an affordable unit.

On the other hand, if you perform condo conversions in new developing areas with no competition with the equivalent single unit homes, the prices are much higher and sometimes, even a little bit unreachable for the common buyer. Well, after that you have found a location to perform the condo conversion, you must decide on a few things, such as how much expenditure they should bear in the renovation of the property, how many units they can make in the apartment, etc. You need to be very cautious while spending money on the renovation of the property. Always remember that you are very cautious while spending money on the renovation of the property ultimate motive is to generate a heavy return. Therefore, it is always prudent to work on the renovation in such a way that could enhance the first impression. For example, you should pay more attention to improve the exterior and common places that the owners will share, such as hallways, pools, lawn, etc. Now, you must be thinking that once you have purchased the property and have decided to go for a condominium conversion, where the existing tenants will go. Well, they have two options. They can either vacate the premises, looking for another rental apartment, or they can purchase their apartments. As a professional investor, you should also offer them a certain discount to the actual price that other buyers (who are tenants) have to pay. This way, your strategy must be to first sell the units to the occupants, and then you should do some marketing for the remaining ones to get outside buyers.

Your marketing strategy must present the things in such a way that the buyers must feel that it is very easy and affordable purchase. In order to convince the buyers, you should advertise about the low interest rates, tax deduction, building equity, etc. Try to convince them how inexpensive it is to buy a condominium rather than owning a rental unit and paying monthly fee.

Hence, that is all it takes to go ahead with the condominium conversion venture.
About the Author
James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing
Rating:
Please Rate:
(Average: Not rated)
Views: 152
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources