21 Jan 2013

Condo Ownership 101

Posted by Orlando HOA Services

Buy_SellPeople buy their condos because they love the neighborhood, amenities, layout, and price. They forget one important factor: they are about to embark on a real estate investment with anywhere from 3 to 300 partners, all of whom are complete strangers.

Now I love owning a condo. I call it home ownership with training wheels. The association handles all of the exterior work; I take care of the inside of my house. There are a lot of things I just don’t have to do.

 But like any business venture, you have to exercise due diligence. Would you invest in any business without checking out the management, looking at the books, and seeing the profit forecast? Of course not. So why would you not check them out before making one of the largest investments of your life? Usually, it’s because most people don’t know how to find this information. That’s what I’m going to tell you about. A well-run homeowner association will have monthly financial reports and yearly reserve reports. All owners have the right to request them, and they should be willing to share that information with any potential buyer.

In the next couple of blogs, I’m going to go over those documents, tell you what they are, and what they mean.

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