You don't know that there was an auction of new construction, partially completed new construction, existing and vacant houses, vacant lots and that the Lender got nearly 50 cents on the dollar. You don't know that Sun Prairie is our own "Little Phoenix". You don't know that condo projects are reverting back to rental communities. You don't know that condos in Sun Prairie on languishing on the market for actual years at prices 25% off their 2004 sale prices. You don't know that there are "brand new" condos for sale, sitting empty and never occupied since they were built in 2007. It doesn't matter that developers are now absorbing the maintenance,property taxes, utilities, insurance and holding costs.
Come on, if there is a Lender who will finance a condo spec, we need to know who it is...and sentence him to prison. There are lots and lots of unemployed construction workers who would welcome the opportunity to swing a hammer. Lots and lots of wanna-be realtors who would hold an open house every day and bring their own balloons.
The ONLY thing missing: Buyers.
There are currently enough condos on the market to lasts for the next year and a half at the current pace of sales. But in 2013, we just might need some more condos in Sun Prairie.
Don't be so negative!
I think Laud hit it right on the button. The new condo applications that I see moving are in Harlan Hills .... $400,000+ custom applications and they are pretty much sold out. I would never suggest risking a buildout on any condo application right now - specifically if you think you are going to turn it around and sell it. Right now lenders are only offering financing for primary homes and in some instances 2nd homes for vacation applications (lots of cash and super credit required). Spec application financing is pretty tough to get. You pretty much need cash up front. Unless you have the cash to sit on a home or a condo don't take the leap in believing you will have a quick turn-a-round. I do believe opportunities are to be had but you really need to anaylze the location and the price points.....condos are not the ticket.
Best of luck,
Donna Birschbach - The Birschbach Team
Unless you are looking at a very unusual and special opportunity, it may be best to explore resale options prior to entering into a new construction undertaking.
If you were thinking of getting a construction loan for such a project you will find it nearly impossible to securing financing.