| Condos can be a wonderful lifestyle choice. A | | | | investment. Take the time. Be smart. Through |
| wise, well researched condo purchase may be a | | | | careful research and due diligence, you'll follow the |
| golden investment, but keep in mind some very | | | | yellow brick road to a successful purchase. |
| important considerations. Take note that the | | | | HOW MUCH GOLD IS IN THE POT?: THE REPAIR |
| purchase of a condo is very different from the | | | | FUND |
| purchase of a single family home. In the case of a | | | | Know what is in reserve. The general rule: If the |
| condo purchase, those neighbors whom you hope | | | | complex is 1-10 years old, the repair fund should |
| will be the kind to help you out in a pinch will also | | | | cover 10% of the cost of replaceable items. At |
| be your co-investors. As in any business | | | | 10-20 years old, the fund should offer 25-30% |
| relationship, stepping into one should be done with | | | | coverage. With a complex 20 years or older, the |
| savvy and careful research. | | | | fund should cover at least 50% of repair costs. |
| Here are some golden rules for a perfect condo | | | | IS THE RENTER POPULATION OVER 10%? |
| purchase: | | | | If so, make sure there are clear rental policies. In |
| READ THE BIBLE! | | | | some cases the condo management company will |
| The "condo bible," in this case. "What is the condo | | | | also manage the renters. If this is the case, find |
| bible?" you ask. It is the minutes of the condo | | | | out more about their screening process. Ask to |
| association; they'll be your strongest guide to a | | | | see their rental lease and have your lawyer look it |
| smart purchase. Preview these minutes and it will | | | | over. Talk to other tenants and get the low down. |
| be well worth your time. Here you will find | | | | Again, there may be rental information and |
| evidence as to any possible management | | | | history in the association's minutes. If you are |
| difficulties. Ongoing gripes and complaints may | | | | digging for gold and don't want toPr end up with a |
| indicate management problems and a lack of | | | | lump of coal, heed the sages' advice; leave no |
| cohesive vision amongst the association. Other | | | | stone unturned. |
| things may be highlighted in the minutes, such as | | | | ELIMINATE THE ENEMY: HAS THE CONDO |
| projects that are underway or proposed. Find out | | | | ASSOCIATION HAD ANY LEGAL ISSUES? |
| the delinquency rates of current owners. This | | | | Contact a real estate lawyer and go over the |
| could be an indication that the association is | | | | bylaws of the association. Are the association's |
| underfunded. These are all details that a seller | | | | bylaws consistent with the laws of the state |
| may not have mentioned but which are | | | | you're purchasing in? Never underestimate |
| paramount in the consideration of your condo | | | | discrepancies that might cost a fortune if left |
| purchase. | | | | unchallenged. |
| DOES THE ASSOCIATION'S INSURANCE COVER | | | | Look into these essential details and you will be |
| YOU, AND TO WHAT EXTENT? | | | | able to make a condo purchase with ease and |
| Get your hands on a copy of the certificate of | | | | confidence. Remember, the foundation of a wise |
| insurance, which is a summary of the condo | | | | purchase is not only in the building itself, but in all |
| association's policy. The replacement costs within | | | | those niggly legal details. Happy digging, and may |
| the policy should match the estimated costs of | | | | you strike gold and find the dream condo you've |
| rebuilding. Also the certificate should contain a | | | | been looking for! |
| building-ordinance clause. This clause indicates that | | | | For more information on Minneapolis lofts and/or |
| the insurance will cover the cost of bringing the | | | | condos in The Mill District, contact Andy Asbury |
| building up to code if there is any rebuilding to be | | | | of The Asbury Group. Andy's a Minneapolis |
| done. Understand exactly what the association | | | | REALTOR® specializing in loft and condo |
| policy covers. Again, all this research will clarify the | | | | transactions. |
| future potential for a not-so-great, or great | | | | |