Check Out the Board Before Shopping for the Condo

While condo conversions benefit multifamily owners by shrinking the supply of apartments, condo buyers are typically renters, so conversions won't necessarily lead to a jump in occupancy rates.

Condo Conversions

If you're looking for a condominium, checking out the condo board is imperative. The board is an important part of condo life and should play a part in your decision to buy. You need a board in a condo to make decisions, through an established process, about issues arising in the condo. Whether it is deciding when to replace the roof or mediating a dispute between two neighbors, the condo board performs many necessary tasks that keep the condo running well.

Condo board members should be happy to talk to you about the condo, events, policies, CC;Rs, etc.

Another aspect of the condo board is the operating budget and reserve. A condo's reserve and operating budget should be flexible to meet rising costs and emergency issues.

The condo board is an important part of condo life and should be taken into consideration when you are considering a condo for purchase.

The condo hotel trend has been much ballyhooed, so why are lenders still sitting on the fence when it comes to consumer mortgage financing? The secondary markets (FNMA, FHLMC) have not seen enough condo hotel paper to grade the risks/rewards of this proportionately new asset class.

Condo hotel is somewhere between a commercial hotel loan and a residential second home/investment property consumer mortgage, so they don't fit neatly into existing portfolios/guidelines.

The yield/interest rate that a well-healed condo hotel purchaser is willing to pay on a 30-year mortgage is much lower than timeshare and other vacation ownership rates.

Yet even given these challenges it is clear that lenders are closely watching the evolution of the condo hotel market.

The typical condo hotel purchaser is a high net worth consumer who is seeking a quasi-vacation home with hassle-free rental property benefits and investment potential. Underwriting guidelines for most of the existing condo hotel mortgage products require a borrower to qualify for the debt without any credit for the potential rental income from the property.

The greatest risk to lenders and consumers in condo hotel ownership is in the sales approach and intent of the purchase. Is the consumer buying an investment property or a vacation condo alternative? Lenders entering this niche are often unfamiliar with the metrics and cyclical nature of the hotel business, and need to approve condo hotel projects with an eye to the long-term viability of the hotel, not just the credit quality of the consumer. If the hotel is mis-managed, replacement reserves are grossly under funded, or if the viability of the hotel market is deteriorating the consumer's ownership experience will suffer, and mortgage default risk rises rapidly.

Condo Hotel Mortgages - Better Than Traditional Condos

Rewards Of Shopping for A Condo

In the commercial and residential real estate investment market condo conversions have become a controversial topic. Many experts say there are still profits to be made with condo conversions, while others assert that condo conversions are high risk and potentially lead to big losses.

Many condo conversion projects have reverted back to apartments due to slow sales. Condo conversions can be built with more affordable prices in mind if the property is chosen correctly and the plan is designed with working class buyers in mind.

Condo conversions can create affordable housing available to working class families, especially in areas where single family home prices are too high for middle class residents. Investors interested in selling condos to the working and middle class have a great chance of being successful if they buy the right property, in the right location, where affordable housing is a necessity.

Tips for Condo Conversion Success

Don't invest in a property you plan to use as a condo conversion without following these tips:

When marketing a condo conversion property think carefully about your niche markets.

Think Outside the Box with Condo Conversion: Commercial Investment Options

A condo conversion investment can be more profitable if residential space is sold on upper stories while first floor property is sold as retail or office space. If you think creatively about your condo conversion investment you will discover all the possibilities.

Condo Conversions - How to Succeed in a Changing Real Estate Market

;Becoming a member of a condo association can include many benefits. These are usually what makes buying a condo so attractive. Maintenance services are another huge benefit to being a part of a condo association.

5th of 6 Steps to Purchasing a Household or Condo in Florida

You must compare the market value of homes to what the market is actually willing to pay for those homes.

If the value of homes in your area is a lot higher than what people are willing to pay, it is simply better to rent an apartment. The sound of a two bedroom apartment worth $1,200 is a lot easier on the ears than a two bedroom apartment worth $2,300.

The previous article in this series (#4) covered the negotiating step which, when done successfully, leads to a contract for you on the property you want to buy. Getting from the contract to the closing.

The first thing that generally gets done once a contract is obtained is to send a copy of the contract to whoever is handling your financing (if you aren't paying cash). A properly done contract becomes important again at this point as it can protect you in the event that the inspections find serious problems.

If you are buying a house, you will also have to contact your insurance agent to have them get you a quote on homeowner's insurance and, if needed, flood insurance.

If you are buying a condo or townhouse, you will have to verify that the condo association pays for the building insurance. Condo association application and reviewing condo documents and budget, utility account transfers, property survey, etc.

One of the last steps that you will do is a final walk-through inspection of the property.

Cautions for Condo Buyers – Leading Secrets for a Lucrative Condominium Living

If the numbers are good, of course, much depends on when the high-octane condo investment market begins to run out of gas. The real estate market right now, especially the condo market is facing the bust side of the cycle and is not faring up well.

It is notoriously known that Miami is the kingpin when it comes to new condo construction.

Well as everybody knows, Florida is certainly no stranger to condo booms and subsequent busts. Developers typically use the proceeds from the sale of each condo unit to repay their construction loans.

Miami Condo Real Estate Trying To Make Some Difference

One of the changes in the modern world is the growing preference for high-rise or condo living. Retirees and seniors also entertain the notion of buying condo units instead of the conventional residential houses for single-family buildings. One common term is on the defective construction that the building where your unit is located.

Another is the subsidized fees that most developers are imposing on their unit owners especially if the building is newly built.

Knowing top information in purchasing condo units is very necessary if you are aiming for a profitable and productive investment.

Live in Mexico – Retiring in a Playa del Carmen Beachfront Condo

In the commercial and residential real estate investment market condo conversions have become a controversial topic. Many experts say there are still profits to be made with condo conversions, while others assert that condo conversions are high risk and potentially lead to big losses.

Many condo conversion projects have reverted back to apartments due to slow sales.

Real Estate and Affordable Housing: The American Class War

Condo conversions can be built with more affordable prices in mind if the property is chosen correctly and the plan is designed with working class buyers in mind.

Condo conversions can create affordable housing available to working class families, especially in areas where single family home prices are too high for middle class residents. Investors interested in selling condos to the working and middle class have a great chance of being successful if they buy the right property, in the right location, where affordable housing is a necessity.

Tips for Condo Conversion Success

Tip 1. When marketing a condo conversion property think carefully about your niche markets.

Think Outside the Box with Condo Conversion: Commercial Investment Options

A condo conversion investment can be more profitable if residential space is sold on upper stories while first floor property is sold as retail or office space. If you think creatively about your condo conversion investment you will discover all the possibilities. The real estate you buy with condo conversion in mind must be well suited for this kind of project.

Condo Conversions - How to Succeed in a Changing Real Estate Market

Owning your Own Vacation Condo, and Keeping It

The past few years has seen a boom in condo conversions, which allows buyers to generate cash-on-cash returns within a short period of time.

The condo conversion craze began with the low interest rate affliction that was crippling apartment fundamentals. Condo developers were willing to pay a premium to buy and turn rental properties into condos.

Condo conversions can be a double edge sword, however, as conversions likely will hurt most rental markets. While condo conversions benefit multifamily owners by shrinking the supply of apartments, condo buyers are typically renters, so conversions won't necessarily lead to a jump in occupancy rates. Also, many renters currently living in an apartment when it is bought and turned into a condo cannot afford the price of the condo.

To learn more about condo conversion loans, visit Security National Capital at .

Condo Conversions