Staff Writer-Tampa Bay Business Journal
Investors are targeting condominium properties and gaining control of association boards, says Sean Galaris, president of LM Funding.
The Tampa-based financial services company provides capital to condo associations by buying their delinquent assessments and keeping a portion of the collections.
Once in control of the association boards, Galaris says investors are driving up fees to the point that many long-time residents can’t afford the payments. That’s causing a growing number of homeowners to abandon their units and get foreclosed.
This creates more opportunities for investors to pick up additional units at pennies on the dollar, lowering values.
“This is not a today problem, but a tomorrow problem,” Galaris says.