Condo as an entry to multifamily?

Question

Hey guys,

it´s really cool that BP has a subforum for nearly everything. I wondered where I should put this post but here it is- innovative strategies. But you will tell me, if this is innovative at all or just crazy.

So anyway, the idea is to buy a condo. And then use that as an entry to take over the wohle house. You buy one, get to know the other owners and make them offers, when the time is right.

This might only work for smaller multifamly, everything 6 units or less. Less stakeholders, higher possibility.

And it´s only possible when you know in advance the other condo owners. So you can get a feeling for if they are willingto sell in the near future.

Now the questions:

Has anybody done something like that?

What strategy would you use to get more controll over the HOA?

All the best,

Flo

Justin Fernandez · Answer

Honestly, just ask them if they'd ever be willing to sell before they think about it. Time and situations changes all minds.  Talk about buying other properties and eventually they'll be primed enough to go to you first, when they're ready. But that's just food for thought.

Thomas Youngman · Answer

6 units. 1-2 bed each. Good location.

How do we go about it, to be honest be ready to offer whenever one of the other owners wants to leave. As I say I expect it will take years!

Flo Schn · Answer

Cool, how are you planning to do it? What is the situation with the property (how many units etc) ?

Thomas Youngman · Answer

Hi,

I haven't done it yet but we are considering the same option in our place.

In reality though I think it will take decades for the other owners to want to sell.

Tom