We know of only a few large communities where the Board has received approval of owners to invest reserves. Most Condominium Documents require two thirds of owners to approve investing. No management company that we are aware of will get involved in investments as their insurance does not cover this ability. However, a community of 200 units that we know of had a CPA on the Board and was able to almost double their Reserves in three years. We can’t all be that lucky!
However, once you are self managed, we will assist you in getting the majority of owners to agree to investing. Keep in mind that most small to medium communities will never have enough money for large repairs. In these cases a “Special Assessment” is authorized. Owners hate special assessments! Unsecured Condominium loans for repair can cost as much as 16% interest.
We suggest meeting with several well known certified investment companies where you will feel confident in their advice. While CD’s pay low interest, you are better off with your money in CD’s than a savings account. This is a basic alternative.