Condo Owners Get Creative
Posted by: Carleton Sheets in rent, Recovery, Real Estate Market, Real Estate, Market Value, Housing Market, fair market value, Economy, Distressed, Creativity, condo, Comps, association on Aug 11, 2009.
One of my staff members recently sent me an article about a group of condo owners in Chicago who are taking a stand on the eight or so neighboring condo units that are in various stages of foreclosure. Members of the condo association are knocking on doors in an attempt to pass a referendum that would allow the association to purchase the "distressed" units and then rent them out until the housing market stabilizes.
This would address two major concerns: (1) Their units would hopefully retain their value, and (2) buying and renting the distressed units would provide a temporary "fix" to the monthly loss in assessment fees.
This plan is not without its risks, of course. And this type of purchase may not work with the bylaws and management/ownership structure in other condo buildings and associations. But I applaud the condo owners and associations who are thinking of creative ways to turn a bad situation into a better one!
Have you or other investors in your area had to be more creative when purchasing or selling properties in this market? I'm looking forward to hearing from you.
