The combination of converting to condominium and retaining equity in the form of rental units can be effective to create short-term leverage and build long-term cash flow. Paying down the initial mortgage with the sold condo units, one can refinance the remaining condo units to take money out of the project for other property purchases. The rental income can be allocated to pay operating expenses and at least a portion of the expanded mortgage, the proceeds of which could be used as a catalyst to start the next project.
Dramatic change in practice is enabled through a radical shifting of roles by expanding our capacities - and our risk - to employ the lever of real estate development to re-constitute the nature and potential of architectural practice. By instigating our own developmentprojects, Latent is re-shaping professional alliances and challenging professional barriers - adding expertise in both construction and finance to our active repertoire.