how exactly do condo building owners make bread

cash money 1999

cash money 1999

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Pardon my ignorance but how do condo building owners make money after all the condos have been purchased

you still have to pay property tax
maintain the buildings plus up keep of the property .

Most of the condos I know of also pay the water bill

I'm sure there's also liability insurances

Possible security .

Always wondered this , Probably A silly question with an easy answer I never thought of .
 
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HOA fees to maintain the building.

Taxes, water, upkeep... All that can be relatively cheap if you're getting $600+ from each tenant from hoa

Correct me if I'm wrong, Re Famb, buy with condo and townhomes, you're only buying from stud to stud... So INSIDE the home....

The walls still belong to the owner, if that makes sense
 
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not understanding the question.

are you talkin bout the property developer that built the building or the individual owners?

if youre talking about the developers, they make money by physically constructing the building and then selling off the units to prospective homebuyers.
 
Fontaine said:
HOA fees to maintain the building.

Correct me if I'm wrong, Re Famb, buy with condo and townhomes, you're only buying from stud to stud... So INSIDE the home....

The walls still belong to the owner, if that makes sense
Click to expand...

Yes and no.

Think of a condo as one big house with multiple bedrooms. Each person who has a bedroom owns their individual bedroom outright. And all of the people that have an individual bedroom collectively own the common areas that make up the rest of the house (like the living room or kitchen or yard). Since everyone collectively owns and uses the common area, they all chip in to maintain it (via HOA fees and supplemental assessments).

sorry, that was a poor analogy but hopefully it makes sense.
 
Condo building owners own the land. Condo owners own everything between the walls. Some condos are rent to own too so they make money that way but its basically just like commercial real estate the asset is in the land not the actual building.
 
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lol. fee simple over LH. ur maint fee basef off sq.ft owner ship just like prop.

so bigger units more fees
 
Mojodmonky1 said:
not understanding the question.

are you talkin bout the property developer that built the building or the individual owners?

if youre talking about the developers, they make money by physically constructing the building and then selling off the units to prospective homebuyers.
Click to expand...
the developers of the land .

I kind of figured the association price might cover it but I've only rented so I didn't know how much the fee generally is
 
CASH MONEY 1999 said:
Mojodmonky1 said:
not understanding the question.

are you talkin bout the property developer that built the building or the individual owners?

if youre talking about the developers, they make money by physically constructing the building and then selling off the units to prospective homebuyers.
Click to expand...
the developers of the land .

I kind of figured the association price might cover it but I've only rented so I didn't know how much the fee generally is
Click to expand...

yea, the developer of the land is making their money just on the initial sale. They incur the cost of buying the land, planning, and building the property. They then sell each individual and will recoup their cost and make their profit at that time. Once all the units are sold then thats that for the developer, they dont have any hand in the upkeep or HOA costs or anything like that UNLESS they get sued of course.

Thats what happened at my place. We (well the HOA on our behalf) ended up suing the developer for construction defects to some of the common area and the settlement just went into the HOA fund to offset the cost of future upkeep and maintenance.
 
CASH MONEY 1999 said:
the developers of the land .

I kind of figured the association price might cover it but I've only rented so I didn't know how much the fee generally is
Click to expand...
Developers factor in the cost as a marketing ploy for potential buyers.  Basically a developer buys the land, develops it as in, build it, then sell the units off.  So a developer that develops a higher end luxury condo, will usually command a higher 'monthly maintenance' fee because that's what's required.  The thing is, maintenance fee just goes up with time to cover expenses.
 
Developers take on the most risk in the process of real estate but they make s lot of cash...

I always wonder which would I rather be...

Broker , developer, property management, or owners of the land (like a REIT)

All places where you can cash in... Just different types of cash flow.
 
Fontaine said:
Developers take on the most risk in the process of real estate but they make s lot of cash...

I always wonder which would I rather be...

Broker , developer, property management, or owners of the land (like a REIT)

All places where you can cash in... Just different types of cash flow.
Click to expand...

Prop Mgmt is probably the easiest. Its almost a requirement that you have to be brain dead and inefficient to work for a property management company.
 
Mojodmonky1 said:
Prop Mgmt is probably the easiest. Its almost a requirement that you have to be brain dead and inefficient to work for a property management company.
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lowest risk is prop management...

It would be super awesome to cop an office building... Sign tenants to triple net leases, and just clean that bish up at night time...

Or higher 3 dudes to maintain it, with a concierge during the day... Profit

:pimp:
 
Fontaine said:
lowest risk is prop management...

It would be super awesome to cop an office building... Sign tenants to triple net leases, and just clean that bish up at night time...

Or higher 3 dudes to maintain it, with a concierge during the day... Profit

:pimp:
Click to expand...
yooo :pimp:
 
Anyone own a property management company or worked for one? I have some questions.
 
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