Back on SAT - Blogs/Chat Back Monday
Its been amazing the past few days here at the real estate conference in San Fran. Lots of great talent here and great speakers showing off future tech, directions of industry changing companies, and top bloggers.
Ill be back Friday evening and will return to posting and live chat on Monday. Thanks for bearing with the light postings this week!!
Posted by ollie
Fri Aug 3rd, 2007 04:15 PM
Noah,
I would be interested in your advices regarding appropriate levels of reserve common charge funds a buyer should see when carrying out due diligence on a condo/co-op.
I would imagine that the appropriate level depends on the age and condition of the building.
Do you use any benchmarks when evaluating various properties (e.g. at least 3-4 times annual operating expeneses for pre-war in average condition etc)? It is difficult to get meaningful data on this but would value your thoughts/experiences on this matter.
Cheers,
Ollie
Posted by Noah
Sat Aug 4th, 2007 12:08 PM
Ollie - General rule of thumb is that the bldg should have at least 4 MONTHS of operating expenses in reserves should every shareholder/owner default on maint for that period of time!
Hopefully more, but that is general rule of thumb as minimum to look out for. Anything less leads to a risk of maint assessments should the bldg need capital improvements or such.