Flipping Rich

I stumbled upon a site today that really got me thinking…

Lets face it, the condo conversion game in the Twin Cities is nearly dead, for a number of reason. A few of those reasons are:

1. For buyers of projects, or buildings to convert, the prices are so escalated (per unit) that it doesnt make economic sense.
2. The cost of doing the conversion itself, attorneys, surveys, and city hoops does not make sense anymore.
3. Bad media has killed it.

Folks, condo and/or coops have been around a lot longer than most of us. Condo conversions themselves have been around long enough, it just really had a lot of steam over the last 8 or so years in the Twin Cities area.

Ultimately though what really gets me is when entities get involved in what an owner of a property can do with said property, condo conversion, or otherwise.

To the orgs trying to halt this, and yes, you are trying to stop condo conversions by making it nearly impossible (mostly economically) to do them, your arguements are weak.

Here are some arguments Ive read:
Loss of Affordable Rental Housing - This assumes that property owners will keep rent where they are. Meaning, is the goal also to regulate what owners can and cannot rent properties for (monthly rent)? Perhaps property owners could do the opposite and raise amounts of rent by 50% across the board. Is that going to happen, probably not, but the point is, rents can go up and down, if you want to keep affordable housing, then back property owners on other issues. Lets face it, how often is the landlord the good guy?

Violation of Tenant Rights - Probably true, I have little doubt. However how many developers HAVE done things by the book? Most I suspect. In fact, I would wager more tenant rights are violated in non condo conversion settings. If i own a property, I would like the right to keep it as it is, or split it up, thank you very much.

Condo Buyers Lack Basic Protections - Huh? More holes than I care to count. First though, with decent advice from a realtor, this is probably covered. Second, there is NO truth in housing inspection required for existing condos. So if you really think the TISH protects anyone, it protects condo conversion buyers because it is a requirement of sale. It IS NOT a requirement on pre existing condos. I should add that the TISH inspection is really no little protection for condo or home buyers. It covers about 50 housing points like smoke detectors, back flow preventors, etc. Buyers, get a home inspection, the TISH is not a solution in any terms.

Breaking-up Communities: Displacement of Low-Income People and Loss of Economic Diversity - This could very well be true. And while sad, I do not believe it is the responsibility of property owners in general or in whole.

My overall point is, its my property, keep your hands off. Isnt the dream home ownership?! The average single family home price is outside many first time buyers home price. Condos fill that gap. Condos must also prevent land sprawl (I gotta believe). I mean how much wildlife, farmland, trees are saved by building UP, not out.

Lastly, perhaps, is these bad property owners, are there laws preventing them from just keeping a building empty, or tearing the damn thing down and building a bigger better condo project? If the goals are the above mentioned, making it harder to do a conversion is not the answer.

By the way, I am a property owner. I have also done condo conversions. My first conversion was a vacant competely rundown 4 unit building. After about 3 months of working on the project I actually received applause from neighbors as I left the building. No joke. And while I have buildings that would justify a condo conversion (and plenty of profit) it is not worth the headache. Although frankly, rental property is just south of a migraine.

Take your pot shots, but anyone that does, you’ve missed the point entirely. AND, I am far from condoning any wrongs other developers have done.