Condo Conversion in South Florida
A Condo Conversion or Condominium Conversion has become an increasingly popular real estate investment strategy. Christian N. Folland, Esq., of Folland & Associates, LC is an experienced condominium conversion attorney, representing numerous real estate developers converting many local apartment buildings into condominiums. This specialization allows Folland & Associates, LC to anticipate real estate condo conversion issues before they arise, and effectively guide every real estate developer through the condo conversion process with minimum delays. This quick and smooth condo conversion process saves the developer money in debt service and creates satisfied buyers with a quicker closing on their new condominium.
Condo Reversion to "Un-convert" a Condo Convesion
Recent market conditions and the declining values of real estate have caused many condo conversion projects to be terminated before completion. In addition, completed but unsold condo conversion projects sometimes need to be un-converted, depending on the developer or investor interests. This process, although simpler administratively, requires careful planning and negotiation if units have already been sold and closed on by buyers.
Even with declining real estate prices, the condo conversion process can provide many benefits to a real estate investor including:
- Increased Real Estate Investment Returns
- Quicker Turnover of Investment Properties
- Access to Large Retail Purchaser Market
- Increased Flexibility to Sell Investment Property
Frequently Asked Condominium Conversion Questions:
- What is a Condo Conversion?
- Why use Folland and Associates, LC for a Condo Conversion?
- How can investment returns be increased through a Condo Conversion?
- How will a Condo Conversion more quickly turnover my investment property?
- How do I know if a Condo Conversion is right for a property?
What is a Condo Conversion?
Florida Statutes allow the owner of a multi-family apartment building to subdivide and convert the building and its underlying property into a condo, with individual condominium units. Folland and Associates, LC will draft the new condominium documents and represent the owner/developer before the Division of Florida Land Sales, Condominiums and Mobile Homes during the approval process. This significant change in ownership is an important real estate development option allowing the owner/developer to achieve the highest and best use of the property, and often greatly increase the return on the developer/owner’s investment.
Why use Folland and Associates, LC?
Folland and Associates, LC represents many real estate developers who have converted or are converting their multi-family properties into condos. Christian N. Folland, Esq., a Florida Bar Certified Real Estate attorney and principal of Folland and Associates, LC, oversees the conversion process from start to finish, anticipating and resolving issues before they become problems.
How can investment returns be increased through a Condo Conversion?
Examples of creating value through the use of a condo conversion:
Example #1 Owner buys ten-unit apartment property for $700,000.00. Two years later Appraiser hired by Owner appraises the property at $900,000.00. Total gross profit from a sale for $900,000.00 is $200,000.00.
Example #2 Owner buys ten-unit apartment property for $700,000.00. Owner converts the property to a condominium with ten condo units. Owner sells each condominium unit at a price of $140,000.00 for a combined total sales price of $1,400,000.00. Total of gross profits from the ten sales is $600,000.00.
The above fictitious examples demonstrate how real estate investment returns can potentially be increased through the use of a condo conversion. Actual transactions may be subject to various fees, taxes, and market conditions, which also must be planned for using real estate professionals.
How will a Condo Conversion more quickly turnover my investment property?
A Condo Conversion will allow the owner/developer to sell the entire property to either commercial property purchasers as a multi-family property or individuals interested in a single unit or several units as an investment. Having access to commercial, investment, and individual buyers greatly increases the opportunities to sell the property. Note: Converting to a Condominium may cause an increase in the tax assessed value of the property and result in higher property taxes.
How do I know if a Condo Conversion is right for a property?
Christian N. Folland, Esq., a Florida Bar Certified Real Estate Attorney and principal of Folland and Associates, LC, will meet with the owner/developer and his or her real estate investment team to discuss the viability and potential for any targeted multi-family property. Folland & Associates, LC recommends assembling a “real estate investment team” consisting of real estate professionals including an accountant, Realtor, and mortgage broker before engaging in a condominium conversion. Consulting and discussing a planned condominium conversion with these real estate professionals will help gain maximum investment returns and tax benefits for the owner/developer. Folland & Associates, LC has built valuable business relationships with real estate professionals, including accountants, mortgage brokers, realtors, inspectors, appraisers, architects, and engineers. The professional opinions of these real estate experts are instrumental in helping an owner/developer determine the value of engaging in a condominium conversion for an existing property or the purchase of a new property for the purpose of completing a condominium conversion. We know the Florida real estate condo conversion process. Our goal is to protect you from the common and not so common condo conversion mistakes. We offer affordable rates to small and large developers and a friendly atmosphere where clients are welcome to call or visit the office with questions.
Do you have more questions about the condo conversion process? If you would like to discuss a real estate condo conversion question please call 786-276-9900, email, or visit our office today for a consultation.