Dear Members & Friends:
As many of you know, I have been training Condominium Board Members over the past 12 years, always urging the fact that investing money will prevent special assessments.
Since the tragedy in Florida, I received numerous calls from current and past clients recognizing how important investment of Reserve Funds are. And still, most of you complain that management will not move forward. Reason being, insurance will not cover management if in fact they push you into a failed investment. However, all master policies cover Board members, in case of an investment error. To date, none of my former clients ever had to make a claim.
The other holdback is the fact that most condominium documents require 60 to 66% of all owners to agree on an investment. In the past, I have gone door to door for signatures. Seldom, will anyone turn me down. Another simple correction, is to change your documents to read either a lesser amount of owner’s approvals or approval of the board members only. Of course, to change a page in your documents cost about $27.00 per page in Virginia Beach, and a similar amount for Norfolk. To date do not have actuals on other Virginia Cities.
Received a call last week where a community paid a law firm $5000 to update the documents with only approval of the Board President, who of course, is an investor. Again, still working on changing the law to: NEVER PERMIT AN INVESTOR TO BE PRESIDENT OF A COMMUNITY BOARD. Keep your fingers crossed, have only been working on that change for the past 5 years. Think it may pass in 2022, if our calculations are correct.
Right now, best investments are on Municipal Bonds, minimum investment $10,000. pay offs as much as 9%.
Even a Fidelity 401 account can prevent special assessments.
The good news is, CPS member meetings will once again resume in September 2021, first Thursday of each month. Simply e or call me for incidentals!
I am always available for your questions, and there is never a charge.