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|Subject: Re: intercst a Homeowner||Date: 10/14/2012 10:35 PM|
|Author: SeattlePioneer||Number: 45835 of 63257|
Did you do any research on the Condo Association, intercst? What percentage of their condos are defaulting on paying dues, what kind of reserves has the condo association accumulated against future repairs, and how old is the development?
Absolutely! I've rescinded offers on five other condos over the past year after reviewing the HOA financial statements and Board Meeting minutes. The Treasurer of one HOA was renting his garage to the HOA for $360/month -- you can almost get an apartment for that.>>
As usual, intercst displays commendable shrewdness in analyzing the Condo Association before buying, rather than discovering there is a mess after the fact.
Condo associations can be fine experiences in self management for condo members, but they can also be disasters waiting to pluck condo owners of their money and equity.
<< About 15% of the units are in arrears on dues. Foreclosures are selling quickly, so I expect that to come down over the next year.
Buying in a turnaround situation can have a lot to recommend it, just like with stocks.
I hope intercst will keep us apprised of his relationship with the condo association from time to time and let us know how things are working out business wise for the condo.
I hope intercst's condo purchase turn out to be a great deal and a good experience for him. There ought to be gales of tears being shed by apartment managers over losing intercst as a tenant.
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