© 2007 - Steve Warren, Inc. All rights reserved.

Tools

Getting Started

Get pre-approved
Make sure the lender will finance a condo on the beach, many will not.
Getting pre-approved lets you know where your comfort zone is and helps
when negotiating on price.  Sellers respond better to pre-approved buyers.
Pick a location
Orange Beach, Gulf Shores, Fort Morgan, Perdido Bay or a spot you would
 love to own, where ever it is.
Pick the condo complex
Look for a complex in the right spot, with the right amenities and built to last.  Condo complexes are not created equal.  Some look good but could have some serious issues to deal with like lawsuits, leins and assessmants.
Find the best condo
Check out all of the condos for sale in the complex.  The one with the highest rental income may not be the best deal.  Low rental histories can be for many reasons some of which have nothing to do with the value of the condo.  Homework pays off in this area.
Negotiate the best price, terms and conditions
Do competive negotiations for the best price.  Play the condos for sale against each other and negotiate for the best deal.  The best "deal" may not be the lowest price.  This requires work by the agent to get behind the scenes and look for leverage.
Get inspections and appraisal
The contract must be written with provisions to cancel the contract if there is an area of concern discovered during the inspection and financial reveiw time period.
Go to close  
The time from the signing the acceped offer and getting to this point can be anywhere from 7 to 45 days.  Prior to close, setup accounts with any required unilities.  The day of close do a walk through to see if everythig is as expected.set up utility accounts
Refinish/furnish as needed
Now is the time to do the painting, decorating and furnishing that matches the purpose of the purchase.  Rental furnishings will be different then that of personal use.
Negotiate with a rental company
Not all rental companies are created equal and some will do better in different buildings.  Check which ones do well in your complex and don't forget to do some promotion on your own.  There are several way to to this without doing the actual rental management yourself.
Enjoy the facility
Now is the time to enjoy the fruits of your labor and expense.  Just take the time to do so, many people get busy after the purchase and find their friends and family using the condo more than they do.  Establish the ground rules for this group early and stick to them.
Sell it for a profit
Profit is not dirty word when selling real estate.  Timing and conditions can impact profit so plan ahead and avoid a fire sale.  The average ownership for a beach condo is 3-5 years.  This can be much longer if it is a second home.
Do a 1031 Exchange
The 1031 Exchange provision in the tax code enables you to sell your condo and defer payment of the capital gains.  The requires the property be classified as an investment rental property and all of the proceeds be rolled into another investment property.  This is a simple process with some very strict rules.  Get advise from a quaified person before your consider selling your property.

This information is intended to give your an overview  and there are many more details to be covered.  Your relationship with your agent is very important so choose someone with experience, patience, detail oriented and able to take a tough position in the negotiating process.

Steve Warren
RE/MAX of Gulf Shores
Gulf Shores, Al 36542