The Orlando Condo Blog

Lennar homes have opened a town home vacation resort close to Disney called Paradise Palms. Current pricing for Paradise Palms resort includes a turnkey furniture package and a private heated pool (only two 3-Bed left for this deal) – for the three bedroom unit the price is $189,990. Financing may be possible as well as $5,000 in closing costs paid.
 
Amenities of the community include a 9,500 sq ft club house with:

• Grotto style heated community pool
• two spas
• Tiki bar and grill
• Kiddie pool area
• Sundries shop
• Game room
• Movie Theatre
• Fitness center with sauna
• Other onsite amenitiesLighted tennis court
• Basketball court
• Sand volley ball court
• Bocce ball court
• 24/7 guard gated entry
• 10 minutes to Disney

  

  

  

  
  

  

  

  

  
  
  

  Each Town home will include:

• Granite countertops
• 18″ tile throughout the downstairs
• CleanSteel appliances
• Full size washer and dryer

The HOA is $438/mo and covers: Twice weekly trash pick up, Cable, internet, and home phone, Roof reserves for future repairs/replacement, Maintenance of exterior of buildings/grounds, PLUS all the amenities mentioned above.

For more information, the latest incentives and a tour, contact us here at Condo Metropolis on 407-290-3408.

A fortune teller asked me to gaze into her crystal ball. “I see wear and tear in your building’s future. I see a new roof will be needed. I see cracking paint and asphalt in need of repair. I see (gasp!) a depleted reserve fund!”

It doesn’t take a fortune teller to predict that common elements are going to wear out and it doesn’t take a crystal ball to predict that HOAs are going to need money and a plan to fix them. So why do so many HOAs fail to properly plan for these predictable events and expenses? Continue Reading »

The statutes governing community associations require notice of meetings to encourage owner participation.

HOAleader recently published an article on this subject: HOA Meetings: Does Your State Have Rules for Your Meeting Agendas?

Here are some handy reminders – there are additional options in the statutes. This list is not intended to be all inclusive. Continue Reading »

Question: What can the homeowner association do with bank owned properties that go delinquent or let their tenants break the rules?

Answer: Bank owned properties can become common in HOAs when the real estate market is not moving homes quickly enough. Foreclosed homes can remain vacant for long periods, may have yards full of weeds, maintenance issues and HOA fees may go unpaid in months.If your HOA is having such problems with bank owned properties, here are several good options for solving these problems:

1. Treat the bank like any other owner – don’t wait for a sale to get paid.  
2. Use liens to ensure payment of assessments and correction of rule violations.  
3. Aggressively pursue foreclosure if the bank refuses to pay. Since there is no longer a mortgage against a bank-owned property, any HOA lien will be in first position. This means it is extremely likely the HOA will be paid quickly after a foreclosure action begins. If the owner-bank does not pay in full and a foreclosure sale is completed, the HOA would end up owning the property free and clear! by Eric R. Jaworski, Esq.

As of July 1st 2010, although condo owners are no longer required to carry home owners insurance, if they do carry insurance (and they should), then that policy must include coverage for “special assessments” by the board of directors.

To quote the new statute 627.714(1): For policies issues or renewed on or after July 1, 2010, coverage under a unit owner’s residential property policy must include at least $2000 in property loss assessment coverage [special assessment coverage] for all assessments made as a result of the same direct loss to the property, regardless of the number of assessments, owned by all members of the association collectively if such loss is of the type of loss covered by the unit owner’s residential property insurance policy, to which a deductible of no more than $250 per direct property loss applies…

You probably read that 3 times before it made sense. Bottom line, check that your insurer is up to speed and is covering you for a minimum of $2K towards special assessments. I think I’d up to $3K myself to be safe.

Condominium conversions became tremendously popular (because they were profitable) during the housing boom.  Many old tired apartment buildings were converted to condominium ownership, remodeled and then the units sold.  In some cases the developer substantially remodeled the building and improvements by updating plumbing and electrical systems, replacing the roof, replacing or modernizing elevators and “gutting” the interiors.  In other cases the developer merely installed tile where there was carpet, upgraded the kitchen with fancy cabinets, stainless steel appliances and granite counter tops then painted before selling the units. If the developer of the conversion project funded converter reserves, unit purchasers are left without statutory warranties.

Bermuda Dunes Condo Conversion, MetroWest, Orlando

When an apartment building is being converted to a condominium, Section 718.616, Florida Statutes requires the developer to provide each prospective buyer, as part of the Prospectus or Offering Circular, with certain inspection reports from professionals. These reports focus on the physical condition of various portions of the building and improvements. With respect to certain aspects of the building (such as the roof, structure, heating, plumbing and electrical systems), the owner must disclose the age of the component, the estimated remaining useful life of the component, the estimated current replacement cost, and the structural and functional soundness of the component. The specific purpose of the disclosure requirement is to protect the prospective purchaser by allowing them to make an informed decision whether to purchase a “new” unit in what may be an old building.

Continue Reading »

If you’re a regular reader of the Orlando Condo Blog, then you’ll know by now that most condos have to be FHA approved to attract lending these days (but see our blog below on a bank that claims it can now do Orlando condo loans).

So how does one find out which Orlando condos are FHA approved? Well, we can certainly help with that, however, there’s a new website out there allows a user to search, BY ADDRESS, whether a unit is not only FHA approved, but eligible. 

The site updates daily on all of the continuing eligibility criteria such as owner occupancy, FHA concentration, whether the 10% rule is violated etc., so that the inquiring party, be it real estate agent or buyer, can know that their transaction can close, and not wait weeks into the transaction until the HOA certification is ordered and paid for, only to find out that it is ineligible. 

There is also an ability to order a detailed litigation report to see if there is any legal action involving the association, and if so, know if it affects the financing of the property. There is a cost, but at $2.99 it’s an enormous time saver and well worth the cost.

At this time, 101 Eola condos are FHA approved both the Vue at Lake Eola and Star Tower condos may be on track in the near future. Until then, read the blog referred to above and perhaps we can find you a loan on a downtown Orlando condo that is not FHA approved.

Question: Our pool and clubhouse are 15 years old. The board wants to build a larger pool and upgrade the clubhouse which would require a $200,000 special assessment and drain our reserves.

Answer: The board has no authority to expand the common area amenities. Its authority is to maintain existing amenities in good condition. However, if an appropriate majority of the members are in favor of raising and spending this money for this purpose, that is acceptable. However, the “appropriate” majority may be a super majority of two thirds or more depending on how your governing documents read. This requirement could effectively kill the proposal.

Well, it was just a question of time – and it’s been a very long time it’s true - but it sounds as if Orlando condo loans may slowly be creeping back onto the mortgage radar, at least for certain kinds of purchases.

Yes, there are caveats, and we still don’t know of any loans for those wretched Orlando condo foreclosures at the $50K price range, but I did receive an email this week from a bank claiming to be able to loan on “non-warrantable” condos and Orlando condo condo hotels. Here’s the scoop:

• Up to 1.5 million at 80% loan to value for owner occupied and 75% for second homes.
• For Orlando condotels, the maximum loan is $500,000 at 70 -75% loan to value.
• Both loan programs require strong borrowers with 720 credit scores and at least 12 months of PITI of non- retirement reserves.
• An ARM product is available with 3 to 7 years of fixed rates with a 30 year amortization.
• Loan amount must be $100K or greater.

Orlando condo conversions may also qualify for domestic residents under certain circumstances. (Foreign national loans are still limited to persons coming into the US that have an employment contract with a US corporation).

For all loans, including Orlando condo hotels and Orlando condo conversions, the following provisos apply:

• No structural or environmental issues.
• Properties must have a full kitchen and a separate bedroom.
• Must be owner occupied or second homes only.
• The project must be complete (phase complete is ok) including common areas.
• No pending litigation. 
• Must have adequate insurance.
• Must have established HOA reserves if it’s a turn over from the builder.

So, in practice, which sorts of projects are we talking about? Here are the main candidates:

An obvious local condo hotel candidate is the Lake Buena Vista Resort and Spa condo hotel near Disney. Foreclosure pricing is typically just over $100K, down from around $3-400K. No loans have been available on this product for a couple of years now, with all deals being all cash only.

Here’s another fantastic condo deal in Winter Park which could qualify. This one’s a one-off.

Downtown Orlando condos. These typically meet the $100K or greater price tag and satisfy the above requirements. This could be a bid deal since lending has been a huge issue on all of these projects. There are some fantasic downtown Orlando condo deals but while many investors have $50K in cash, very few have the necessary $200K or more. Thus, a luxury penthouse reduced by a million dollars may be a steal, but without a loan, it has been pretty much untouchable.

If you are currently unrepresented by agent and would like to use Condo Metropolis as your broker, call today to see if can qualify for one of these new condo loans: 407-290-3408.

55 West Condos, downtown Orlando 

•  2 – 2.5 months free on select units! Not have much left at these prices!
• $100.00 Moves you in with a 30 day move in!

Call Condo Metropolis on 407-290-3408 to register and take a tour asap. For more info on downtown Orlando condos (for rent or sale) see our 55 West condo page and also our Downtown Orlando Condos page.

President Obama signed the Dodd-Frank Financial Regulation Reform Act into law Wednesday, be­ginning what will inevitably become a maelstrom of angry lobbying and  political jockeying.  Obama described the 2300 page behemoth as a “common sense approach to long-needed financial regulation”.  I don’t know about you, but ‘common sense’ usually doesn’t need to be explained in a tome about twice the length of Tolstoy’s War and Peace. Continue Reading »

Orlando condo sales are back with condo buyers coming from every corner of the globe to snap up a piece of Orlando real estate.

 The following graph says it all.

The median price for a unit in Orlando during June 2010 was $52,800, down 3 % from 2009, according to the recently released industry report. Prices were up from $49,900 in May.

The median price for condos across Florida state was $95,000, down 16 % from June 2009.

With 889 units sold during June, Orlando condo sales remained among the strongest of any metropolitan area within the state of Florida. The pace of condo purchases in Orlando was 68 percent greater than it was a year ago.

Of course, most of these are Orlando condo foreclsosures, but that’s great news for condo associations whose coffers have been decidedly thin of late.

Remember, in this price bracket we are now in a very firm seller’s market. Surprised? It may seem odd when other sectors of the real estate market are slow, but with about a dozen buyers for each piece of condo inventory that remains, it’s not as easy as it once was to pick up a bargain.

For more info on how to acquire an Orlando condo foreclosure, contact Condo Metropolis: 407-290-3408 or email Info@CondoMetropolis.com

New legislation (SB 1196) looks set to help condo buyers during these tricky times. It also encourages bulk buyers of condo inventory by removing some of the liablity previsously associated with such purchases, ie. they will no longer be considered the communities new “developers” for the purposes of lawsuits just because they now own a portion of them.

The Distressed Condominium Relief Act went into effect on July 1, 2010. The new law, signed by Governor Crist on June 1st, broadens the power of Florida condo associations and assists those currently facing financial difficulties, helping bulk buyers in particular, in that process. 

Other useful provisions in SB 1196 include the following:

Condo insurance: for the interior of the unit no longer required (doesn’t mean you’d be stupid not to get it).

Cost of ownership lowered: by repealing the requirement that owners purchase individual owner insurance coverage;

Sprinker retrofits: no longer mandatory in condos over 75 feet high;

Lenders pay more back fees: on bank owned condo foreclosures. (Previously limited to 6 months.)

Delinquent owners get dinged: condo owners more than 90 days delinquent can now be denied use of common and recreational areas;

and here’s the biggie:

Diversion of rent: COAs can now divert rent from owners who are foreclosing and not paying their mortgages and HOA fees directly into the coffers of the COA. This one will be interesting. Watch this space.

For more information on buying and selling Orlando condos, contact Condo Metropolis on: 407-290-3408.

Community leaders should understand the financial wherewithal of the associations they lead.  Unit and Home Owners also have rights to review financial records.  It seems like we hear about theft of association funds more and more these days.  Simply leaving finances in the hands of a manager, bookkeeper or treasurer is not enough.  For some practical ideas how to stay “in the know”, please see the following article published by HOAleader:

Five Questions to Ask Your Manager about Your Homeowner Association’s Finances

The U.S.A. and England have moved from “in a relationship” to “it’s complicated” over the one-two punch of BP’s massive oil spill trashing the Gulf of Mexico (now holding the esteemed “greatest American ecological disaster” slot) and our 1-1 tie in the first game of the World Cup. 
 
Facebook status joke?  You betta’ believe. 
 
And as if Europe wasn’t interesting enough, bond ratings agency Moody’s downgraded Greece’s debt to near junk bond levels last Monday.  That’s gotta be a fun way to start your week for Greece’s finan­cial overseers.  Market reaction was kept muted due to the fact that everyone who had access to CNBC knew this was coming for a while.  The effect was essentially already baked in to investor portfolios.  Still, it is another click that Europe’s sovereign debt crisis moved towards the abyss of long-term eco­nomic malaise, tighter austerity measures and a Japan-esque lost decade.
 
Existing home sales posted a surprising 2.2% loss in May despite the bump from the $8000 tax credit.  New home sales took a much more substantial tumble, dropping 32.7% month-over-month.  Home demand is tightly tethered to the employment situation, and as unemployment grinds along at near 10% levels it is going to stifle any sort of skyrocketing good news.  Still, the trend for home sales has been tepidly positive for the past 12 months.  And this may be the impetus needed to get more Federal attention to the still fragile housing market. Continue Reading »

Plantation Park Condos, Orlando

As most of you probably know by now, I’m not a fan of short sales - unless a buyer bails on one that’s ready to close. Well here’s one such deal at Plantation Park condos. The buyer has been working out this one-bedroom deal with BOA / Freddie Mac for about 8 months, and just as it’s ready to close, they’re pulling out because they have to move to Chicago at short notice. A shame for them, but easy pickings for someone else, all without the hassle of multiple offers on a bank foreclosure deal.

Plantation Park is a great little community built in 1996, just a stone’s throw from the Disney gates and about half a mile from the famous Outlet Mall. There are very few competitors in terms of condos in the area and should be easy to rent to Disney employees etc. It currently has a tenant who may want to stay however, and Condo Metropolis can provide the necessary professional property management for out of state / overseas buyers. (Typical rent on a 1/1 is currently about $700-800 and typical management fee is 10% of rent.)

These condos are pretty hard to get and the current buyer put contracts in on several in order to get this one. As you can see from the photos, it’s in good condition with decent appliances and a patio. Seller put in new A/C unit in place in April. A/C units are the biggest expense item in that complex because developer never replaced those at the time of conversion, so this is a huge plus. The garage you see does not come with this condo.

You will not find this Plantation Park condo listed on the MLS since it is now a pending sale, however here is the old Plantation listing which contains all the info including taxes and HOA fees etc.

Buyer must be ready to close this deal at short notice. Could be a week, most likely two, but should be ready to close in the next 30 days at most, unless any final hiccups. Commission will be paid by bank, only a $295 service charge will apply.

Call Condo Metropolis on 407-290-3408 to submit a contract on this 2nd floor Plantation Park condominium. CASH only, Proof of Funds / deposit required.

This is a short sale and the listing price may not be sufficient to cover all encumbrances, closing costs and other charges and sale / price of property at  is conditional upon approval of third parties.

The Mosaic Condominium

Ater a couple of years renting, Mosaic condos near the Mall of Millenia are now selling again.

The 27-building, gated, Mosaic condo complex is one of Orlando’s nicer condo conversions (built 2003) and the current owners have elected to go for individual sales over a one-time ‘bulk’ sale to a new sole buyer.

The Mosaic condo community has 451 units in total and about 170 remain. About 30 contracts have been written in the last month since sales began and there seems to be no doubt that the Orlando’s condo scene has reached bottom and is beginning to bounce back.

All Mosaic condo homes have high 9-foot ceilings, crown molding and all appliances including washers, dryers and alarm systems. Each condo has an assigned parking space. Garages are available for purchase at $5,000. Usually condo with view will have $1,000 premium. Homes with upgrades (granite counter top and stainless appliances) may also attract a premium.

View Larger Map

Mosaic condo prices are currently roughly as follows but are subject to change:

• 1/1 = $60-70K. Rents for $700-800 a month, COA about $200 depending on floorplan;
• 2/2 $89-92K. Rents for $985-1000 a month, COA about $300 depending on floorplan;
• 3/2 $109-120K. Rents for $100-1300 a month, COA about $365.

Typical cap rates appear to be 5-7% and taxes should be around $2K per year, depending on floorplan. Please note these are CASH ONLY deals since there are currently no loans available on Orlando condo conversions. Proof of funds will be required (usually in the form of a bank statement).

Many of these Mosaic condo units are already leased and this will be attractive to many investors. Orlando’s condo specialists Condo Metropolis are also able to assist with professional property management, to complete the investment process. Call 407-290-3408 for more info and to submit a contract on one of the remaining Mosaic condominium units.

SB 1196 Includes New Remedies for Collecting Money Owed to Associations, but Unanswered Questions May Create Liability Exposure. 

Community leaders and managers have complained for years about investor owner delinquencies.  Why should the owner continue to collect rent from his or her tenant without paying maintenance fees and/or assessments?  Sure, both the Condominium and Homeowners Acts allowed the association to apply to the Court to request the appointment of a rent-receiver, but to take advantage of that provision it had to file the foreclosure lawsuit.  The law requires notices to the delinquent owner, preparation and recording of the claim of lien, filing and serving the foreclosure lawsuit – all before the association could ask the Judge for authorization to collect rent.  It could take several months to obtain the appropriate Court Order – all while the account remains delinquent. In some cases the tenant moves out before the association has the chance to collect any rent.  Of course there are costs and expenses involved with that whole process.  Continue Reading »

Associations have new enforcement mechanisms available – due process requires careful planning & paperwork for associations to take advantage of these new remedies effectively.

 Condominium Associations:

Up until now condominium associations had to have authority to levy fines in the recorded governing documents and did not have the ability to tell delinquent owners to stay out of the pool or gym.  That changes as a result of SB 1196. Continue Reading »

Altamonte Springs, Orlando: The Village town homes have just a dozen developer units left for sale. Half of these are 2/2 townhomes.

One-bedroom condos (826 SF) start at just $69K (used to be $149K), with 3/2 town-homes (1465 SF) retailing at just $95K (used to be $250K).

Pay no commission through Condo Metropolis and get your HOA dues paid for one year and a home warranty! Maybe even some $$ towards your closing costs. Investors looking to take all 12 may qualify for special pricing. Buyers looking to re-rent these units will find some of them are already rented and local property management is available.

Please note that loans on condos are still virtually non-existent and cash will be required with proof of funds at time of offer.

For more information and a tour, call Condo Metropolis on: 407-290-3408 or email Info@CondoMetropolis.com referencing The Village Townhomes of Altamonte Springs.