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Peter, Home Buyer in Minnetonka, MN

Anyone familiar with the Cloud 9 Skyflats in Minnetonka, MN?

Asked by Peter, Minnetonka, MN Mon Jul 13, 2009

I am seeing that there are a handful of condo units for sale but at a really cheap price and some that say cash only. Units are at about 70% cheaper from when they were originally sold. Anyone might know why they are so cheap? Does anyone know if there is something wrong with this buliding/complex?

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I also am familiar with the Cloud Nine Sky Flats. Just a few years ago you about 20 of the 164 Units were in foreclosure. I worked with investors who were renting them out hoping to hold them long enough to break even. Very contemporary nice units however there is no green space and your right on the freeway. Entertaining in the outdoor grill area is deafening. For the money you could find better options.
8 votes Thank Flag Link Wed May 21, 2014
Yes! They are interesting, spacious, well-located, well kept and I wouldn't mind living there myself! I have had several prospects interested them, but have not actually sold any yet for a variety of reasons. I think it is possible to buy well there right now, with a few precautionary thoughts, and if you would like to see these, I do know them well. Just call me, all you have to do is call me Liz, 612-986-4105 Associates Realty, LLC

PS I know how to deal with foreclosures; I have sold several and bought some for myself, including several condos. You can purchase appropriately and create a winning situation for yourself.
0 votes Thank Flag Link Mon Jul 13, 2009
Hi Peter,

I think there are a number of things that have brought the prices down at Could 9. The condos were converted from an office building during the peak of the market a few years ago. Developments tend to have a lot of excitment around them when they're being built (or in this case coverted) which can tend to make the prices higher. The market has since gone down considerably but adding to that is what the competition to these units are. Foreclosures have brought prices down even more. The units that state cash only may be due to the condition of the unit and also that the association may not be FHA approved, meaning you can't get an FHA loan on the building (with a possible spot approval exception). I've also heard that converting an office building into living space didn't work out so well due to how it's configured. An example is that none of the windows can open.

If you need more information, I can put you in touch with a colleague that used to sell over there.

Patrick Howard- Edina Realty
0 votes Thank Flag Link Mon Jul 13, 2009
Peter,

Be very careful with a purchase here. A good deal might not be all what it is cracked up to be. An association that has so many condos in foreclosure is likely to be in trouble financialy. If and when you write a purchase agreement in here you will have a state mandated right to review the condo documents including (among other things) their balance sheet. Take a long hard look and if it doesn't look good - buyer beware. In my mind there are three ways for an association to remedy too many nonpaying units.

1. A one time assessment to bring things current.
2. Throw their hands up and file bankruptcy.
3. Raise the dues on everyone to cover the shortage.

No matter what they decide to do, if you buy here and the financial really aren't strong (I haven't seen them, I am just guessing), you will want to prepare for a change in the association.

Just my thoughts

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Mon Jul 13, 2009
cloud 9 has gained some interest over the past few months, the link below explains a little about the building.
0 votes Thank Flag Link Mon Jul 13, 2009
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