What is a condo conversion?

A condo conversion is an apartment complex that is purchased by a 
developer. The developer then converts the individual apartments 
into condo's and often times spends a large amount of money 
renovating the units and the surrounding landscaping. The developer 
then has only a select few real estate companies help to sell these 
units. The units are sold first to investors only at a significant 
discount. As sales happen, the price level rises and eventually any 
units that are left are sold to the general public for at or above 
market value. These units are very investor friendly and appreciate 
in value over the course of days and weeks from the time one is 
sold. On the average, units are sold to first level investors 25K-
35K under market value. 

How do I buy one?

First, reservations are taken after an announcement is made through 
e-mail only that a property has been released. Once released, the 
developer will normally require an escrow reservation of either 5% 
or $5,000. More often, it's a flat $5,000 that sits in an escrow 
account to reserve a spot in a lottery. Although there are a few 
methods for selling these units, the most common method is through a 
lottery system. Once all investor reservations are in, the lottery 
takes place and names are drawn at random. Once your name is drawn, 
you may select a unit that has not already been taken before you. 
You are then given an appointment to see the inside of the unit you 
have selected. If you view the unit and are not interested, the 
$5,000 is of course refunded. If you are interested however, then 
it's time to find the financing for the purchase (If it's not all 
cash of course). 

Who handles the transaction?

Licensed real estate brokers and licensed mortgage brokers handle 
all transactions just the same as if you were purchasing a normal 
home.

Property types vary greatly. Sometimes the apartment complex turned 
condo complex is extremely upscale and beautiful and no developer 
renovation is necessary. Other times, the property will be more 
scaled down, but with developer assistance becomes a very nice condo 
complex. Prices for these units also vary greatly and are not 
released until the actual property is ready to be sold. Either way, 
they sell out quick, fast and furious whether it's to investors or 
the general public. 
In as much information as I have provided you, there is no doubt you 
have more questions. The easiest way for those to be answered is for 
you to contact me personally.  I can be reached at 561-385-5978 
seven days a week. If you would like to be added to my condo 
conversion e-mail list (only way to find out about property 
releases), please e-mail me at [EMAIL PROTECTED]

Thank you,
Nancy Kavanagh
Realtor/Licensed Mortgage Broker
Century 21 – Richards Realty, Boynton Beach Florida.

P.S. There will be a free seminar on condo conversions on July 28th 
from 6-8 p.m. at my Century 21 office. Please call me for more 
information or directions.






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