Here is an email from a client asking about doing a condo conversion:
Per our conversation and your e-mail, yes we are interested in doing a condo conversion with 1234 Main Street for 3-4 units. Due to the fact that the process may be lengthy we will probably currently, look to purchase a distressed property, fix it up and put on the market at this time. Unless of course the gentlemen I am working with can make it a fast and easy process.
We are still very much focused on learning as much as we can about condo conversions. anything you can do to help us along the way would be fantastic. got any info on the class yet? I would like to meet and sit down with you in the very near future.
Per their property list you sent to me the other day: First we would definitely underbid all properties that have been on the market for over 30 days. second the comps would make the difference on whether we would go out to physically look at these properties.
#22 looks like a good condo conversion. we like this one. I guess it would take the same steps to acquire and convert? how many units/ parking spaces
#20 can this be converted to condos?
#23 condo conversion? how many units, parking spaces?
please send comps for #15, #14, #18, and #19
thank you so much for your advise, efforts and patience. keep your eyes open for sweet investment deals for us.
talk to you soon!
And here is our response:
One of our business models is to empower our clients with as many resources as possible. One very useful website where you can find the answers to many of your questions, including zoning is the DC government website. the website for specific property search is https://www.taxpayerservicecenter.com/RP_Search.jsp?search_type=Assessment you can also find more information pertaining to zoning on http://dc.gov/.
The process for purchasing 1234 Main St. is going to be the same as any residential process except that the purchasing entity will be a business instead of an individual. how is your company set up? is it an s corp., LLC, or an LIP?
Underbidding on these properties is not a problem, just prepare yourselves for possibly lengthy negotiations. I would also recommend that you drive out to the properties that you are interested in. The reason for this is because the value of assessing the location is crucial for investors and that is not possible at without a visit to the site. Your interest in the property should be determined by site evaluation, not by comps. You should use the comps as a determinant for the basis of your offer, not your interest. So, once you have visited each site, and you are interested in any of the home sites, I will be happy to pull comps for those properties.
Also, please reference the properties by their MLS #s, that will help us keep the information in order and minimize communication errors.
As far as how many units can be built out and how many parking spaces, it will be wise to get in touch with engineers.
As a developer, your success will rely heavily on the strength of your team. Some of the key players will be contractors, accountants, engineers, lawyers, and real estate agents & advisors. I recommend that you start interviewing to fill your key player positions.
We also have a separate FAQ on how the tenant rights process works.