All Forum Posts by: Alice Green

Brandon, you need give some more information about your property?

@ Bill

I am sorry if I have hurt someone but these are my thoughts based upon the experiences me and my company has experienced. We do not work in big states, so I definitely wasn't referring to those states and I was only talking about condos as per homes perspective. I know there are different types to it but as I have said I have seen people making profits with condos as well but you have to be smart and experienced.

In Chicago or Califorina that may work. But in the states like Texas, NC, AZ, VA etc, condos values fall faster and harder than single family houses. Also it is hard to differentiate yourself between the competition in the same complexes. So, if a new REO comes up, you may loose money

I think there's always risk involve. What if there's a decline in the price of other condos in neighborhood? All of them looks similar. You can only do the changes in the interior but you can't increase a room or a bathroom in there. So, if someone else change the price in the vicinity, automatically you have to reduce it too. Do you have much options left with that?

I totally agree with you Josh. I believe there are lots of opportunities with the interior but my whole point behind this discussion was that in the end, condos should be purchased in lesser prices as the profit margin is a bit thin, as many members have agreed.It's just that, you should be smart enough to make your move and a bit experienced too.

These were some of the things, which I have discussed and with condos you know that there isn't much to do on exteriors.
Yes I am from Salt lake City.

As most of the people are talking about drawing comparison between SFR and condos. I would like to give an example. In most neighborhoods, there are no two homes that are exactly identical and if somebody has a property for selling and they lower the price, someone else may not have to lower their price in order to sell their property because there are enough differentiating facts when it comes to the property itself. The floor plan is a little bit different because there are differentiating features when it comes to the property itself. But when you are talking about condos, there are no differentiating features other than the color of the paint or other than the carpet that is being put in or the color of the tile, which most buyers are not going to pay a lot of extra money unless it is a new bill to get some of those features. The only thing that you can do is compete on price. You have got more risk with condos because you are competing on price and anybody else that changes price in the neighborhood is going to have a direct impact. When you are selling condos, you need to be the cheapest condo out there.

They could be good Silver but if they do not require a lot of repairs because with repairs the chances of profit declines. Even then if you compare it with another normal house, the profit margin in the latter would bigger than the condos.

I think condos are best only when they do not need any repairs.

Congratz. So, whats your next plan? another short sale or something else?

Even the repairs Jason, one cant afford that much while having a condo. They are definitely not great investments, you just have to buy them for less money. For example if you are purchasing a condo under $55,000 that is what it is going to resell for. You need to buy that condo at 25% minus the cost of repairs. If the property does not need any repairs and it is a condo, you could pay $13,750 for it. If that property does need even $5,000 worth of work, the most you are going to be able to pay for that property is $8,750, if it is going to resell for $55,000. So, its quite obvious that they carry a lot of risk.