What You Should Be Aware Of Before Condo Investing

What You Should Be Aware Of Before Condo Investing

Condo InvestingAccording to many investors, one of the best things about condo investing is you never have to worry about continuous repairs after purchasing. This is primarily because of the association that maintains the building including the unoccupied units. The association has funding allotted for the continuous maintenance of the building and for emergency repairs as well.

Despite not having to worry about subsequent repairs after purchasing a condo unit, there are still things that you need to consider before you actually buy a unit. And if you’re looking to have a successful investment, it is imperative that you spend time studying other aspects of your investment.

Other aspects to consider before condo investing

1. Your primary purpose of buying a condo as an investment.
How successful your investment will become greatly depends on your primary purpose for making the purchase. If you want to rent it out or live in it independently as well as how long you plan to stay in the condo unit will help you decide whether or it is really a good form of investment.

2. Homeowners’ association dues are paid on top of your monthly condo unit payments.
The benefits you get from the homeowner’s association are indeed appealing and are often enough for some investors to sign the contract and buy a unit. On the other hand, you need to look at how much association dues you will be required to pay and add that to your monthly payments to have a general idea of how much money you pay for your condo investment every month. This way, you’ll be able to determine whether or not it is indeed a good and financially beneficial investment.

3. Homeowners’ association rules have restrictions and limitations.
The association operating and overseeing the entire condo building will likely have rules, limitations, and restrictions that you need to be aware of. You need to learn and study these rules before you make a purchase decision. This will help you avoid any misunderstanding that could happen between you and your landlord.

4. Advertising can become expensive easily.
If you don’t do your homework and conduct a thorough research about advertising in condo investing, you will surely end up spending more money than what you have planned for. There are lots of contractors and service providers who will offer their services to you. Spend time looking through their offers and confirming their legitimacy. If possible, work with someone recommended by your friends, relatives, and colleagues so you can be sure in hiring them and that you’ll get the service you are expecting.

Contact Jerry Pinkas Real Estate Experts for more information on condo investing.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-839-9870
http://myrtlebeach-condosforsale.com

Your condo investing partners!

Condo Investing Guide For First Time Investors

Condo Investing Guide For First Time Investors

Condo InvestingIndividuals who are looking for alternative ways to invest without homeowner responsibilities such as maintenance and renovation would truly benefit from condo investing. Buying a condo unit and renting it out is a lot different from buying and renting a single-family home.

If you feel that this is the type of investment that would suit your needs and demands, here are the top three things you need to carefully look at for your first condo investing venture.

Overall condo unit inspection

Much like buying a home, you will need to conduct a thorough inspection of the condo unit before you decide that you really want to purchase it. Although you can do the inspection on your own, it’s best that you hire a professional inspector to ensure that every area and corner of the unit is inspected. Plus, a professional inspector knows the signs of damage and wear and tear that may not be easily obvious to you. Listing all the areas and things that need repair may help you get a better deal from the seller. You can use it to propose a discount on the total purchase price or demand the seller to do the necessary repairs before you pay the full purchase amount.

All financial statements

To ensure that you are taking the right route with condo investing, you need to carefully study the financial statements of the unit you are considering buying. Basically, you’ll need to look at the expenses that you will be paying for at the beginning of your investment – which includes buying the condo and any other renovation or upgrades that it needs – and throughout your investment, which includes ongoing maintenance costs and monthly association fees.

You may also want to look into the condo association’s reserve funds and find out whether or not there is enough to cover any unscheduled or emergency repairs. If not, you will have to pay for these from your own pocket, which may negatively affect your profits.

When studying monthly association fees, make sure you consider the unit’s percentage interest and calculate whether or not you’d still make profit if you plan to rent the unit. If possible, work with a certified accountant to be sure that you won’t miss any important financial detail.

Legal documents

What you need to specifically review in the condo unit’s legal documents are the exact dimensions of the condo unit that you will be purchasing, the building features and amenities that you are entitled to exclusively use (i.e. balcony, parking space, etc.) as well as those that you can use along with other condo building owners (i.e. gym, spa, entertainment room, conference areas, etc.)

To find out more about condo investing, contact Jerry Pinkas Real Estate Experts now.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-839-9870
http://myrtlebeach-condosforsale.com

Helping you ensure a profitable condo investing.

Choosing The Right Neighborhood For Your Condo Investing

Choosing The Right Neighborhood For Your Condo Investing

Condo InvestingIn condo investing, there are other things you need to consider aside from the specific unit that you need to buy. You also have to carefully think about the neighborhood where you will be buying. This is most especially true if you plan to rent out the condo unit. Keep in mind that location is one of the primary motivating factors for most renters.

In addition to attracting lots of potential renters, buying from the right neighborhood will also help make your condo investing journey smooth and flawless. Listed below are some of the factors of the right neighborhood to invest in.

  • Distance from place of work

Consider whether or not the neighborhood you are planning to buy from is near or far from most businesses and schools, if you’re looking to rent to families with children. You are likely to get more offers if you buy from a neighborhood that is near to most places of work. Don’t forget to consider traffic times when calculating distance. There are places where there is heavy traffic so going to work takes more than hour instead of 15 minutes if there is no traffic.

  • Access to transportation

Not all renters have a car of their own. So you also need to make sure that you start your condo investing in a neighborhood that has easy access to all types of transportation. Make sure that there is a direct route to the common places of work so your tenants won’t have to make a lot of transfers, which makes them more tired and causes them to be late for work.

  • Availability of necessities

These include the other areas that you frequently visit aside from your office and school such as the grocery store, mall, bank, pharmacy, hospital, laundry service provider, gym, and many others. If you buy from a neighborhood that is near to all of these services, your renters will have no problem finding their way in the neighborhood. Plus, they wouldn’t have to spend time and money on driving or commuting around town to find the establishment that they need.

  • Options for entertainment

It is also worth it to consider if the neighborhood has a wide range of options for entertainment like night clubs and restaurants. If you plan to target young professionals or college students, this is definitely worth considering. Keep in mind that if your goal is to rent the condo unit, you need to make sure your prospective tenants have everything they need to live a satisfying life in your condo unit.

Location is important not only in condo investing but also in other types of real estate investing as well. Contact Jerry Pinkas Real Estate Experts now to get professional assistance in finding the best location for your condo investment.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-839-9870
http://myrtlebeach-condosforsale.com

Your condo investing needs come first.

Top Condo Investing Tip To Overcome Condo Board Challenges

Top Condo Investing Tip To Overcome Condo Board Challenges

Condo InvestingYou may, at some point of your condo investing venture, decide to become part of your condo building’s board. Now this will be convenient for you especially if you own more than one unit in the building. For one, it will help you easily manage your time and your condo units. If you went ahead and served as one of the board members of the condo building where you own several units, you will have to prepare yourself in facing some challenges.

Here is a list of the common challenges you’ll have to address as part of the board along with some condo investing tips to help you resolve these challenges.

  • Issues with the building property’s manager

There are times when the rules set by the building property’s manager don’t align with how you and the rest of the board envision the property operations. This may be because the property manager’s rules are difficult to understand or it may be too stringent for the unit owners and/or renters.

What you need to do to resolve these issues and prevent more problems and conflicts from arising between the board and the property manager is set up a meeting that includes a representative from the building management company. Invite them for an open discussion of the rules and what you could all do to compromise for the betterment of the building and its occupants.

  • Communication problems with condo unit owners

In a condo investing venture, you will have to keep regular communication with your buyers and sellers to ensure everyone is up to date with the status of a certain condo unit. It is much the same when serving as part of the condo building’s board. It is your responsibility to keep all the unit owners and occupants involved about the changes and updates in the building’s guidelines, budget, and rules.

When there is no proper and frequent communication between the board and the unit owners or occupants, it will cause misunderstandings on both sides, which could sometimes lead to costly problems. This is most especially true if you are communicating regarding updated payments and pending dues from the unit owner.

  • Reserve funding and maintenance needs

Every condo building should have a reserve funding, which comes from the payments made by the owners of the individual units. It is important that you and the rest of the board monitor the building’s reserve funding along with the status of pending maintenance needs.

The reserve funding is saved for emergency and unexpected repairs and renovations on the buildings, particularly those that cannot be put on hold like roof repairs or plumbing problems. The board should closely monitor this and inform each unit owner on the total reserve funding and the needed repairs. All condo unit owners should be kept informed about the reserve funding, how it is calculated, and what it is spent for.

Call Jerry Pinkas Real Estate Experts now for more condo investing tips.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-839-9870
http://myrtlebeach-condosforsale.com

Your partners in successful condo investing.

Condo Investing: The Buying Process

Condo Investing: The Buying Process

condo investingCondo investing is indeed a smart way to spend your hard earned money. Whether you opt to rent the unit or use it as a vacation house and sell it later when the time is right, you’ll surely be getting more of the money you spent in the purchase. But of course, you will need to choose wisely which unit to buy and go through the entire buying process with much care.

Steps in buying a condo

To ensure a successful condo investing venture, you will need additional information on the steps in buying a condo.

  • Getting approved for a mortgage

Most real estate professionals would agree that the first step of the buying process is getting approved for a mortgage. In fact, you should do this as soon as you’ve found the property that you want to buy. Getting approved for a mortgage early on – even before you make an offer – gives you an edge over other potential buyers. Let the seller know that you are interested in buying the condo and that you are already approved for a mortgage. This makes the entire sale process much quicker, plus it makes you a more credible buyer than other buyers.

  • Making an offer

The amount that you offer to the seller to purchase the condo should be competitive, especially if you are not the only one making an offer to the unit. At the same time, the offer should be something that is well within your budget and wouldn’t leave you financially at risk after the purchase.

To ensure this, work with a professional real estate agent in determining a fair and reasonable price for both you and the seller. What most real estate professionals would suggest is looking at how much similar properties in your area have been sold for. Make sure the properties you are looking at have similar size and amenities with the condo unit you are considering buying.

You also want to consider the current market when determining the amount to offer. Current market conditions will tell you whether or not you are making a fair offer to the seller.

  • Creating the sale agreement

After making an offer to the seller and the seller agrees to your offer, you will have to agree on other aspects of the sale as well. This includes which appliances and furniture you are buying along with the condo unit, how much you will pay for the deposit and closing fees, and others. You and the seller will also have to decide when you will pay for the deposit and closing fees, any pending repairs or renovations in the unit, when the title will be transferred to your name, and many others. As soon as you’ve agreed on this, the seller will have to put these into writing. Upon receiving the contract and agreement, have a real estate lawyer study it and make sure your interests are well represented.

  • Closing the sale

After everything that has been agreed in the sale agreement – such as repairs and additions that you requested – has been completed, you are now ready to close the sale. At the closing, be sure you have your real estate attorney with you to help with reviewing all the final documents that you need to sign. Although you most likely already know what each closing document will entail, it is still critical that you and your lawyer review them before signing. This is to ensure that nothing has changed without your knowledge and that the purchase will go through as agreed by both buyer and seller.

To learn more about successful condo investing, contact Jerry Pinkas Real Estate Experts now.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-839-9870

http://myrtlebeach-condosforsale.com

Helping you ensure your condo investing success!

4 Essential Aspects Of Successful Condo Investing

4 Essential Aspects Of Successful Condo Investing

Condo InvestingMany first time investors are considering condo investing. According to them, condos are the easiest to maintain among all types of real estate properties. Maintenance is governed by the homeowners’ association (HOA), the cost of which can be added to your monthly payment. HOA’s have a fixed amount so you as the investor don’t have to worry about any increase on this fee.

To ensure you succeed with your condo investing, here are 4 essential aspects that you need to keep in mind.

  • Your target market determines the condo’s location and size.

To help you find the most suitable location and size for your condo investment, you first have to determine your specific target market. To whom would you prefer to rent your condo unit? Are you looking for long-term tenants like young professionals, families, or retiring couples, or do you want to rent it to short term vacationers or tourists?

Both types of tenants require different locations and/or size of a condo. For long-term tenants, you need an average-sized condo unit that is located in a safe and secure neighborhood and near to public transportation and employment including commercial businesses and industrial corporations.

Short term tenants, however, require a large spacious condo unit with lots of sleeping area. If possible, furnish the condo unit with lots of sofa beds, beds, and sleeping mats as these are what vacationers will mostly need. Keep in mind that they want to rent your condo so they have somewhere comfortable and safe to sleep and rest for the night after a long day of touring and sightseeing.

  • Rent should be more than your monthly expenses.

Profiting from condo investing relies on how you calculate the monthly rent that your tenants pay. Of course, it should be more than your monthly expenses so make sure you include every fee that you are required to pay for every month or year and include these when calculating the rent. Among the primary expenses that you need to include in your calculation are the HOA dues, additional maintenance fees, mortgage payment, and annual taxes. It also helps to consider the financial condition of your target market and ensure that the rent will not be too high for them. Also, compare your rent with your competition and make sure your rent fee is on the same level as theirs.

  • Hiring a screening company to help you get tenants will benefit your condo investing greatly.

Although this may not seem as a priority expense and it may not bring you immediate benefits, hiring a screening company greatly helps to ensure that you get quality tenants, those who pay on time and are not destructive. This is most especially helpful if you are looking for long-term renters. You want those who are looking for a permanent home near their place of work as well as those who have a stable employment. If you fail to screen your tenants properly, you may end up with tenants who will give you a lot of headaches and cause to pay for a lot of repairs in the condo unit.

  • A management company will help you look after your condo when you live far away from the unit.

If you have your eye on a condo unit that is far from your permanent residence, you can consider hiring a management company to look after the condo unit. There are lots of service companies that provide this service along with marketing your condo unit in the neighborhood, ensuring the unit is clean when renters first arrive, checking the unit for any damage before the renters check out. This is most especially helpful when considering short-term renters.

Call Jerry Pinkas Real Estate Experts for more information on successful condo investing.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-839-9870

http://myrtlebeach-condosforsale.com

Your partners in successful and highly profitable condo investing!