Miami Beach Condo Fiscal Health

Villa Del Mare

A building's fiscal health is a key consideration in any purchase today. Too many buildings were blind-sided by investors, armed with 100% financing and spread way too thin, who not only renegedĀ on their mortgage payments, but also their condo fees. It's not uncommon to see one investor having bought several units in several buildings and default on them all. This can have a dramatic snow ball effect; leading to reserve depletion, poor property management, increase in monthly maintenance fees, and yes, even special assessments to cover the deadbeats! How do you protect yourself? Make sure you know the facts: 1) What percentage of unit owners are more than 30 days delinquent? Most banks today will NOT lend if this number is greater than 15%! 2) Has the reserve account been properly funded? This is important. If the association has been "borrowing" from the reserve account to fund the operating account, you should know this. The reserves are monies put aside for future maintenance of … [Read more...]