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Longmont RE Trends: Condo Conversions
Investing in Real Estate 8 - Condo Conversions
This blog will discuss a type of real estate investment, fix and flips, in the Longmont area in Denver.
What this investment is: A synthesis of the fix and flip and rental operations - purchasing an apartment building in a neighborhood dominated by owner occupants, then converting the building from apartment building to condominium. Often requires renovation of the units to meet the expectations of owner-occupant buyers in that area. Complex and time consuming, but has wonderful tax advantages compares to fix and flips and often has superior returns to all other asset classes. Ideally suited for the sophisticated investor with extensive experience.
Equity needed: Being able to document your income and your assets will be critical. For a commercial loan, your net worth should generally be at least as much as the loan you are seeking. The good news is that the commercial loan usually does not show up on your credit report, so it doesn't count towards the "four investment home limitation" from Fannie / Freddie.
Importance of credit: Essential. A 720 FICO is a must. A 740 would be better.
Importance of experience with contractors: Critical. ... more
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