Your #1 Income Property Resource.

 No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information

 Welcome to! Visit the Real Estate Investing Forums.

Real Estate Articles 
 Real Estate 
 Second Home
 Success Stories
 Real Estate Q & A
 Real Estate News
 Real Estate Law & Policy
 Money Making Ideas
 Home Improvements
 Tax and Insurance
 Appraisal and Inspection
 Log Homes
 Mobile Homes
 Home Buyers
 Constructions and Home Buildings
 Real Estate Investing 
 Vacation Home
 Rental Property
 Preconstruction Investment
 Marketing Secret
 Joint Venture
 Land Investment
 Lease Purchase
 Probate Real Estate
 Real Estate Clubs
 Short Sales
 No Money Down Investing
 Fixer Uppers
 Resort Home
 Loft Apartment
 Property Development
 Tax Incentives
 Investing Strategy & Tips
 Real Estate Wholesale Property
 How To Articles
 Subject To
 Real Estate Books
 Apartment Investing
 Commercial Real Estate
 Residential Property
 Hotels and REITs
 1031 Tax Deferred Exchange
 Investment Property
 Real Estate Advanced Techniques
 Trust Deed Investments
 Creative Home Buying
 Wholesale Real Estate
 Real Estate Auctions
 Tax Lien Certificate
 HUD Homes
 Real Estate Regional USA
 Austin, Texas
 Colorado Springs
 Reno, NV
 Market Analysis
 Property Management
 Condo Conversion
 real estate guru
 Bank Foreclosure
 VA Homes
 Buy To Let
 Rent to Own
 Tax Deed
 Stop Foreclosure
 Retirement Planning
 Real Estate Investors
 International Real Estate
 United Kingdom
 Real Estate Seminars
 Condo Hotel Investments
 NNN Properties
 real estate notes
 Real Estate Education
 REO Properties
 Life Estate
 Income Properties
 Mortgage and Finance 
 Mortgage Leads Generation
 Mortgage Leads - Leads Mortgage
 Mortgage Marketing
 Creative RE Financing
 Hard Money Lender
 Debt Consolidation
 Income Property Financing
 Home Equity
 Credit Repair
 Mortgage Tools
 Home Construction Loan
 Commercial Loans
 Owner Finance
 Private Lenders
 Discounted Notes
 Assumable Mortgages
 Seller Financing
 Equity Lines of Credit
 Real Estate Pros 
 Real Estate Agent and Broker
 Mortgage Agent and Broker
 Real Estate Marketing
 Real Estate Consultant
 Real Estate Resources 
 Mortgage Foreclosure Example
 Mortgage Origination forms
 Property Transfers
 Tenancy Agreement and Form
 Internet and Online

Real Estate Investing : Investment Property Last Updated: May 14th, 2012 - 22:24:01

Condos and Co-ops: Not a Good Place to Start

Email this article
 Printer friendly page

Condos and co-ops probably are not good place to start  your career as real estate investor. Of course, the two types of properties are used for investments all the time, and they can produce extremely well. If you buy into a development early, even in the preconstruction phase, the value of your unit can climb quickly. In fact, some investors specialize in reading the market and buying units before they are build. This often called buying units in the dirt. The risk is high, but the rewards cab substantial. However, for an inexperienced investor the risk may be too high. It's easy to buy into the plans for a development and lose money, and it's even easier to buy into the plans for a development and lose money. Even if you are fortunate enough to buy into a sound development, the added burdened, rules and regulations, not to mention the fees associated with condos and co-ops, can hinder your freedom as investor.

Stories run around in investor circles about getting rich quick with condo and co-ops. And in the right market and with the right insights, you can get rich quick. I have seen investors buy units from blueprints and make close to $20,000 profit in less than 90 days. Some investors buy heavily into a single development in hopes of it being the mother lode of real estate. The strategy can pay off. If you own an units and make $20,000 on each of them in six months, that equates to a profit of $200,000 in just half year and with passive income. Not bas! But if you misread the development and the units don't sell or rent well, you can be stuck in financial quicksand with nowhere to run and no money to drag you out.

The underlying risk of condos and co-ops make them both potentially lucrative and equally dangerous. As an investor, i normally advise first time investors to look at small apartment buildings as foundations for their rental portfolios. In certain cases, a condo or co-op can be an excellent first time investment, but the odds are higher that inexperienced investors will regret their purchases. As with single-family home, it can be difficult to buy a condo or co-op that will produce enough rental income to carry its cost of ownership. If the market doesn't appreciate quickly and if the development is not popular, a condo or co-op can drag you down.


Do you own real estate articles or stories and want to share with other investors? 
You have chance to win
$100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:


© Copyright 2001 - 2010 by            Page copy protected against web site content infringement by Copyscape   



Visit Real Estate Forums for every real estate investing topics!  Enter Here


Top of Page

Home Courses Real Estate Forms Income Properties For Sale Forums CalculatorReal Estate Education    

Copyright © 2001 - 2010, All Rights Reserved. Privacy Policy in Observance.