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Beaverton Oregon Real Estate: Making money with Condo conversions


There are three ways to make money in the condo conversion market
. The first thing you need to understand is what a condo conversion is and how it works.

A condo conversion is done two ways. The first way takes an old apartment complex and goes through the steps of setting up an HOA and CC&R, getting the tax ID's, brings them up to code and converts them to individual condo units. The second is taking a complex that was built as a condo unit, but became apartments because the market wasn't ready for condos. Each unit is then individually updated and put the market. Usually what happens is the conversion takes about a year from the purchase of the building to the sale of the first unit and then it can take another year for all the units to be updated and sold on the open market.

OK, now for the three ways you can make money in the condo conversion market. The first way is to be the person who does the actual condo conversion. Buy the complex, goes through the process of gaining permits and updating them and putting them back on the market. This can be a great way to make a lot of money in the right market, but it does take a lot of time and money.

The second way is to be an investor and buy properties prior to them going on the open market. You can usually save a lot of money by being one of the first to invest in the property. This can give you a great opportunity to buy a rental property at a greatly discounted price and as more units are sold and the rents increase your costs will not, but your profit will.

The third way to make lots of money is to be an investor who buys the property and then lease options the property back to another buyer. If you buy in the early stages of a condo conversion you can get the condo for about 25% less, than the price would be in the 2 years after the lease-option time is up. Imagine tax free capital gains after two years of 25%. (1031 exchanges) Try to get that from your 401K.

For more information on how to get in to the condo conversion market feel free to contact me anytime. For more information on capital gains and your tax situation, please contact your tax advisor.


Respect Realty LLC (Expect More)

 

At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.

 

Reach out today, we look forward to talking with you!

 

Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)

(503)564-3130

info@RespectRealtyNW.com

www.RespectRealtyNW.com

 

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Comment balloon 1 commentRespect Realty LLC • April 12 2007 09:48PM
Beaverton Oregon Real Estate: Making money with Condo conversions
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