Covenants with your investment property? Get to know your HOA.

HOA?  The very mention of these three letters is quite effective for getting some emotional responses in a hurry in our market.  While some people speak respectably about their HOA, all too often these three letters can bring out some nasty words and emotions from those people you thought were always so kind!  The mere mention of them has killed more than just a few deals.

But wait!  HOA's can be an ally, especially if you are an investor.  A good HOA can help you in many ways, many of which they do not often tend to advertise such as:

1) Let you know about other potential deals in the neighborhood you are looking at that are off market.

2) Let you know about where the neighborhood is going with future developments.  These can sometimes be selling points to your investor Buyer whether a rehabber or landlord.

3) Put you in touch with contractors that are not only reputable and trustworthy, but know the neighborhood well.

4) Prioritize your needs because you simply asked.  It is amazing how powerful a business a people business is when you simply ask.  You won't get everything you want but you'll never know how much you will get simply by asking.

5) Put you in touch with other investors!  The value of this need is immense!

Now keep in mind, once you are on the HOA's good side, STAY THERE.  Follow the rules and ask questions if you are not sure about something.   If you make a mistake and they call you out, own up to it and apologize.  Mistakes happen as we are all human.  However, some Buyers try to side step menial stuff.  The credibility you lose is not worth the few bucks you might save.  Do things right and good things can certainly come your way.

HOA's are a tool and relationship builder.  They are an important part of your due diligence when considering a property.  Do your homework on them, leverage them and benefits can indeed be reaped by both sides.

Who knows, you might even get a discount on the dues!  And who wouldn't like that?