With a small amount of available land in the Washington D.C. area, condo conversions have become a popular and rapidly growing trend. Converting existing rental properties into condominums that will be sold separately is a profitable deal for many investors and developers. The market for this continues to grow although there is some chatter about residents who are unhappy with this movement. if you are thinking about starting a condo conversion process, here is the basic overview of what you need to know!
Understanding The Basics of Condo Conversion
What is a Condo Conversion?
Condo conversion is the process of turning an existing building into multiple units that will be sold separately. This development trend became popular in Washington DC around 2013 and has been a rapidly growing (and profitable) focus of many projects around the city. Typically a condo conversion takes a series of row homes and restructures them to fit multiple condo units to sell individually. You will have changed the title and at times, even the use of the building.
How Do You Choose a Building to Convert?
Start by evaluating your goals. What type of return on investment are you looking for? Doing your research, speaking to professionals (such as experienced condo conversion realtors and lawyers) will save you from starting the construction from ground up and help you choose the best, most profitable building. An important partof your first steps will be to identify the appropriate financing and a clear understanding of the DC Condo Laws.
What Does the Conversion Process Look Like?
Start by doing your research and becoming an expert in the details of condo conversions in DC. Understanding the right steps and the regulations is critical for success. First, begin by building your credit and researching the best, most profitable neighborhoods. Find the best places to convert when it comes to numbers and potential profit for the area. Then go ahead and apply for the financing you need (consult with an expert) and start working on a business and marketing plan. After financing is secured, you will go ahead and submit legal documentation to the government. If the building you've chosen already has tenant, you will also have to submit documentation to them. Don’t forget things like issuing your letter of intent and completing an inspection.
Next, you’ll start the remodeling process for the condos. It’s important to find a good contractor and approach them with a plan for remodeling and restructure. What style will your new condos be? What features will be included in each unit? Develop and fully prepare your remodeling plan before hiring a contractor in order to find the best fit for the best price.
Finally, once your remodel is finished you are able to list and begin selling your condos. It’s critical to hire an experience and reliable full service agent to sell your condos. An agent who will market each unit thoroughly utilizing professional staging and photography as well as online marketing efforts is the best choice. Work with your agent to develop a marketing strategy that will attract and build buyer interest to sell your condos.
Please remember that the above is a general, basic overview of the condo conversion process. If you’d like more information, please contact us here and let’s talk!
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