I was recently interviewed in Mortgage Professional America and one of the key questions was “what is the root cause of the condo crisis”. It seems like everyone is just now talking about the crisis in condos and attached dwellings, but this should not be a surprise to anyone in real estate. The root cause of the financial crisis in condos/townhomes is years in the making and was easily preventable.
Here is the root cause of the current crisis in condos/townhomes/ and as result many HOAs:
“If you look at how these HOAs came out, a number of them came out in the ’80s and early ’90s,” Weinberg told Mortgage Professional America. “A lot of what they were doing is they were taking Class C apartments, making them condos, and selling them off. They were inexpensive housing. Sounds great.
“But nobody wants to pay higher HOA dues for something 10 or 15 years in the future. That’s why they were affordable housing, because they couldn’t buy a single-family home. All of that has led us to where we are today.”
If you missed my recent interview with Mortgage Professional America, it is a must read. In the interview I discussed what properties are most at risk and what happens now.
Additional Reading/Resources:
HOA struggles, condo crisis worse than headlines suggest, lender warns | Mortgage Professional
What the latest inflation upsurge means for the mortgage market | Mortgage Professional
We are a Private/ Hard Money Lender funding in cash!
If you were forwarded this message, please subscribe to our newsletter
Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. I’m not an armchair reporter/writer. We are an actual private lender, lending our own money. We service our own loans and own commercial and residential real estate throughout the country.
My day job is and continues to be private real estate lending/ hard money lending which enables me to have a unique perspective on the market. I don’t accept any paid sponsorships or ads on my blog to ensure accurate information. I’ve been writing this for almost 20 years and have over 30k subscribers. Please like and share my blogs on linkedin, twitter, facebook, and other social media and forward to your friends 😊. I would greatly appreciate it.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, and Florida. We are recognized in the industry as the leader in hard money lending/ Private Lending with no upfront fees or any other games. We fund our own loans and provide honest answers quickly. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games). Learn how to find a reputable hard money lender and why Fairview is the best hard money lender for investors.
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Tags: Hard Money Lender, Private lender, Denver hard money, Georgia hard money, Colorado hard money, Atlanta hard money, Florida hard money, Colorado private lender, Georgia private lender, Private real estate loans, Hard money loans, Private real estate mortgage, Hard money mortgage lender, residential hard money loans, commercial hard money loans, private mortgage lender, private real estate lender, residential hard money lender, commercial hard money lender, No doc real estate lender
