Condo Conversions

[Jenelle]

Hi there,

I am a law student writing an article on condo conversions, focusing on California and San Diego specifically. I was wondering if anyone had any experience as either a converter (renovating and selling) or as a purchaser who would like to talk with me about it?

For instance, if anyone has done a conversion, did you thoroughly renovate or did you do minor cosmetic upgrades and resell? What was your motivation to do one or the other? And as a purchaser, any “horror stories” regarding deferred maintenance, underfunded HOAs, etc.?

I really appreciate any help or information anyone may have. Also please note I would like to be able to use this information in the article, which requires me to cite to it. Unfortunately, I can’t cite to anonymous blog comments (I wish, it would make my life easier!) So please be aware that I’d like to actually interview you, so please e-mail me at [email protected] if you would like to talk with me.

Thank you!

[patb]

my dad bought 5 condo’s that were a conversion from an apartment
building.

The good part was the building had had some 15 years to shake out bugs

the bad part was there were no reserves so big repairs came as
special assesments.

[patb]

my dad bought 5 condo’s that were a conversion from an apartment
building.

The good part was the building had had some 15 years to shake out bugs

the bad part was there were no reserves so big repairs came as
special assesments.

[patb]

my dad bought 5 condo’s that were a conversion from an apartment
building.

The good part was the building had had some 15 years to shake out bugs

the bad part was there were no reserves so big repairs came as
special assesments.

[patb]

my dad bought 5 condo’s that were a conversion from an apartment
building.

The good part was the building had had some 15 years to shake out bugs

the bad part was there were no reserves so big repairs came as
special assesments.

[patb]

my dad bought 5 condo’s that were a conversion from an apartment
building.

The good part was the building had had some 15 years to shake out bugs

the bad part was there were no reserves so big repairs came as
special assesments.

[HLS]

Jen..
I am in the mortgage biz,, getting conversions financed today can be nearly impossible, (along with some other condos) due to litigation, defects, foreclosures, too high % of rentals, association financials, budgets or inadequate insurance.

The only buyers will be cash buyers going forward.
In many cases these conversions are poorly built apartments that were sold to unsuspecting buyers as the cheapest property around. Some would have been better off buying a manufactured(mobile) home.

An engineers report can be required unless it was a complete gut rehab.

A few years ago the prices of apartment buildings exploded based on the assumption that they could be rezoned to condo. Many greedy owners that were offered a huge profit declined, as they wanted “more”… others took the money and ran.

Jen, you can contact me if necessary [email protected]

[HLS]

Jen..
I am in the mortgage biz,, getting conversions financed today can be nearly impossible, (along with some other condos) due to litigation, defects, foreclosures, too high % of rentals, association financials, budgets or inadequate insurance.

The only buyers will be cash buyers going forward.
In many cases these conversions are poorly built apartments that were sold to unsuspecting buyers as the cheapest property around. Some would have been better off buying a manufactured(mobile) home.

An engineers report can be required unless it was a complete gut rehab.

A few years ago the prices of apartment buildings exploded based on the assumption that they could be rezoned to condo. Many greedy owners that were offered a huge profit declined, as they wanted “more”… others took the money and ran.

Jen, you can contact me if necessary [email protected]

[HLS]

Jen..
I am in the mortgage biz,, getting conversions financed today can be nearly impossible, (along with some other condos) due to litigation, defects, foreclosures, too high % of rentals, association financials, budgets or inadequate insurance.

The only buyers will be cash buyers going forward.
In many cases these conversions are poorly built apartments that were sold to unsuspecting buyers as the cheapest property around. Some would have been better off buying a manufactured(mobile) home.

An engineers report can be required unless it was a complete gut rehab.

A few years ago the prices of apartment buildings exploded based on the assumption that they could be rezoned to condo. Many greedy owners that were offered a huge profit declined, as they wanted “more”… others took the money and ran.

Jen, you can contact me if necessary [email protected]

[HLS]

Jen..
I am in the mortgage biz,, getting conversions financed today can be nearly impossible, (along with some other condos) due to litigation, defects, foreclosures, too high % of rentals, association financials, budgets or inadequate insurance.

The only buyers will be cash buyers going forward.
In many cases these conversions are poorly built apartments that were sold to unsuspecting buyers as the cheapest property around. Some would have been better off buying a manufactured(mobile) home.

An engineers report can be required unless it was a complete gut rehab.

A few years ago the prices of apartment buildings exploded based on the assumption that they could be rezoned to condo. Many greedy owners that were offered a huge profit declined, as they wanted “more”… others took the money and ran.

Jen, you can contact me if necessary [email protected]

[HLS]

Jen..
I am in the mortgage biz,, getting conversions financed today can be nearly impossible, (along with some other condos) due to litigation, defects, foreclosures, too high % of rentals, association financials, budgets or inadequate insurance.

The only buyers will be cash buyers going forward.
In many cases these conversions are poorly built apartments that were sold to unsuspecting buyers as the cheapest property around. Some would have been better off buying a manufactured(mobile) home.

An engineers report can be required unless it was a complete gut rehab.

A few years ago the prices of apartment buildings exploded based on the assumption that they could be rezoned to condo. Many greedy owners that were offered a huge profit declined, as they wanted “more”… others took the money and ran.

Jen, you can contact me if necessary [email protected]

[AK]

Parents invested in a condo conversion at the tail end of the ’70s boom. After brief appreciation the market tanked, and comps fell by 40% or so (for those units that actually sold). The seller failed to disclose that the complex was in the middle of a flood zone, which everyone found out the hard way a few years later. By then the lender (a well-known S&L of the era) was the only party left to sue. HOA fees doubled within a few years due to vacant units.

They were able to sell at a break-even price in 1989. Since then the complex has gone through a major boom-bust cycle and comps aren’t that far above 1979 levels.

[AK]

Parents invested in a condo conversion at the tail end of the ’70s boom. After brief appreciation the market tanked, and comps fell by 40% or so (for those units that actually sold). The seller failed to disclose that the complex was in the middle of a flood zone, which everyone found out the hard way a few years later. By then the lender (a well-known S&L of the era) was the only party left to sue. HOA fees doubled within a few years due to vacant units.

They were able to sell at a break-even price in 1989. Since then the complex has gone through a major boom-bust cycle and comps aren’t that far above 1979 levels.

[AK]

Parents invested in a condo conversion at the tail end of the ’70s boom. After brief appreciation the market tanked, and comps fell by 40% or so (for those units that actually sold). The seller failed to disclose that the complex was in the middle of a flood zone, which everyone found out the hard way a few years later. By then the lender (a well-known S&L of the era) was the only party left to sue. HOA fees doubled within a few years due to vacant units.

They were able to sell at a break-even price in 1989. Since then the complex has gone through a major boom-bust cycle and comps aren’t that far above 1979 levels.

[AK]

Parents invested in a condo conversion at the tail end of the ’70s boom. After brief appreciation the market tanked, and comps fell by 40% or so (for those units that actually sold). The seller failed to disclose that the complex was in the middle of a flood zone, which everyone found out the hard way a few years later. By then the lender (a well-known S&L of the era) was the only party left to sue. HOA fees doubled within a few years due to vacant units.

They were able to sell at a break-even price in 1989. Since then the complex has gone through a major boom-bust cycle and comps aren’t that far above 1979 levels.

[Author]

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