Living Beaverton - Your guide to everything Beaverton


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)



Thinking of buying? Start your home search by clicking here
Thinking of selling? Find how much your home is worth by clicking here


Don't forget to follow us on Social Media to keep up with the latest real estate information






Comment balloon 1 commentRespect Realty LLC • April 12 2007 09:48PM
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… more
Beaverton Oregon Real Estate Investing: Using the IRS 1031 exchange…
What is a 1031 exchange and why do I need it? If you an investor and don't know the answer to these questions, then pay attention, it could save you thousands on your taxes. A 1031 exchange is a way for you to sell a property that has had a capital… more
Beaverton Oregon Real Estate: I can't tell you that… But here is…
I understand you want to live in a nice neighborhood with no crime, but I can't tell you that. (No matter how many times you ask) There is a reason I can't, the law written under the fair housing act says that I can't steer a client to a certain… more
Beaverton Oregon Real Estate: Don’t be in the dark when selling your…
When you walk in to a lot of houses today do you notice there are no lights in the living room or family room? Why is this? It was original done to save money on wiring and permits in a lot of homes. What the builder wanted you to do is put lights… more
Why is my friend’s credit score so much higher than mine? We make the…
Q: "Why is my friend'scredit score so much higher than mine? We make the same amount of money. " This question was asked of me lastweek by one of my buyers and it made me realize that if one person wasasking it, more people would like to… more
Control you own future with your retirement
One of the best ways to control your retirement is contributing to your 401K every year. The only problem is the maximum you can contribute per year is $14, 000. But there is a way to get almost unlimited money contributed to your retirement and get… more
Owner willing to finance or do a Lease-Option (SOLD)
Owner will carry a contract or do a Lease-Option Location: 97396Owner Financing or Lease Option available. Interest rate to be determined by the amount of down payment. Lease Option for 2 years (Lease Price to be $150K) Zero Down Payment… more
Pay off your mortgage years earlier without even realizing it
There are many things you can do to lesson the time of your mortgage and increase your equity without really doing anything that will affect your monthly budget and below I have given you just a few. Did you know that if you pay half your mortgage… more
How to net 10-15% more for your fixer property than it appraises for
Do you own a fixer property and want to sell, but don't think you can get what you need out of it? You have two options. One is you can spend thousands and fix it up yourself, but if you need money out of the sale, then more than likely you don't… more
Learn to make money on any investment property
As a Real Estate agent, I love to hear an owner say, "I'm tired of throwing away money every month on my investment properties. " That means one of my investors is about to come in and make BIG money, every month, month after month. I even… more