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Condo Conversions: Do Real Estate Investors Know The Pitfalls

Written by: Jonathan Rozek (PRWEB)
2006-04-17 00:00:00

Real estate investors are a highly competitive group. Many cities have "We Buy Houses" signs on every telephone pole, it seems. Now there are indications that the next hot real estate market will be condominium conversions.

That's because demographic trends are pointing toward condominiums: As baby boomers get older, many are looking to trade in their large, high-maintenance homes for condos that are closer in to town, and have no yards to care for.

At the same time, non-traditional families are booming: "Today's middle class looks more like the cast of 'Friends' than 'Ozzie and Harriet,' " says Jason Schenker, an economist at Wachovia Corp. in Charlotte. "They're younger, they're urban and they live in high-cost areas of real estate--these sorts of things are all conducive to the growth in condominiums."

David Lindahl, who invests in real estate throughout the U.S., sees the opportunities, but also sees important risks. "Condo conversions have significant profit potential, if you avoid some major investing mistakes", Lindahl says. He points to markets like Miami: 70,000 new condominium units are expected to come online in the next three years, which is roughly three times the number that were built in Miami in the prior three years.

Lindahl, who has invested in more than 550 properties of all types in the last 10 years, is hosting an event in Denver this May. Its sole focus will be how to invest in condo conversions with lower risk and higher profit potential.

"There are three deadly mistakes to condo investing", Lindahl observes. "There is also a nine-step process to maximizing your profits and minimizing your time investment. Real estate investors that follow my principles will save themselves untold amounts of pain and money."

(Editor's Note: The author of this article is offering a free, 15-page report on condo conversions, at their website: www.condocamp.com/newreport.  This report has not been viewed by this website.)

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