Special Assessment Help

[Will Sampson]

I bought a 1 bed condo in Panama City Beach in the beginning of 2022, it has been a profitable investment but cheap, so not a ton of cash flow. Unfortunately, the HOA is about to drop a special assessment for nearly $2 million divided by 30 owners. I do not have the equity and not a ton of cash lying around. The HOA claims they have not had much success finding financing options. I would appreciate some advice on financing a special assessment and any recommendations for places in Florida to assist...I'm trapped!

[Nathan Gesner]

Man, this is tough and one of the reasons I warn against investing in an HOA. My first investment ever was a little townhome in 2004 that I bought for $67,000. Three months after purchase I received a notice that my HOA special assessment of $4,000 was due. The HOA President showed proof that she had informed my agent several times of the special assessment coming up and even provided him a letter that he could share with me. He never told me about it.

Unfortunately, my agent was my father-in-law.