Beware the Condo Conversion

I've said in the past to only look at condo conversion as a last resort. If it is just too good of a deal to pass up. Now, you might be even more weary.

A lot of the conversions are 10%, 20% or 30% occupied and they aren't getting a lot of buyer's these days. So, at best you'll live in a community for a long time with most of the units empty. You'll be fighting the conversion company if you ever plan to sell. Or at worst, they'll decide to rent the rest of the units out. They'll even disguise it as a "Rent to Own" secenario. But, you'll get to live in a community that's 20% owned and 80% rented. And, if you ever decided to sell, it will be virtually impossible. The lenders won't lend in such a community, so you'll live there for a long time.

So, if you visit a condo conversion community, ask how many units are rented or not sold. Better yet, if you plan to visit a community like this, take your own Realtor. That Realtor can research the owner/renter/vacancy ratio and represent you in all transactions.

And if you don't have a Realtor - I'd love to help you out. Call me.

For other information on condo conversions click on the label below.