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diy reserve study projections

Started by JimR24 • 15 replies • 291 views

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JimR24 (Texas)
Posts: 399
Posted:
I have been wondering if any of you have ever tried a "do-it-youself" reserve study. Within my hoa experience, I have experienced - and have been involved in - two professional reserve studies and both have been extremely helpful and both did a great job. I think i understand all techniques and terminology - and i have experience with spreadsheets. I have been wondering about doing reserve projections for my hoa and sharing the results. What do you think? Anyone else done this? - and if so, how did it go? oljim, in texas
Lovin' life with my honey!
and, President of HOA in Texas
MichaelT21 (Arkansas)
Posts: 200
Posted:
Quote:
Posted By JimR24 on 12/23/2022 10:26 AM
I have been wondering if any of you have ever tried a "do-it-youself" reserve study. Within my hoa experience, I have experienced - and have been involved in - two professional reserve studies and both have been extremely helpful and both did a great job. I think i understand all techniques and terminology - and i have experience with spreadsheets. I have been wondering about doing reserve projections for my hoa and sharing the results. What do you think? Anyone else done this? - and if so, how did it go? oljim, in texas

I thought about it, and then realized it'd take me 50 hours to set everything up. Instead of making my own, I worked with the reserve study company to fix theirs and now it will be a simple task to update theirs each year. More time efficient.
MaxB4
Posts: 3,513
Posted:
I use the software of someone that came onto this forum some years ago. It was $99 at the time but has since increased in price. He has had numerous updates, so he has stayed on top of his products. To date, I have used it for all 72 of my clients. I do not do the original study, but maintain them going forward.

While most boards use the study as scrap paper, I use it as a financial tool. When items within the study are maintained or replaced, the pricing is updated. The longevity of the item is like a budget, in need of updating based on current financial conditions.

Use the search function of this site and you might find a link to his product.
MaxB4
Posts: 3,513
Posted:
On a side note, it takes me an hour to set up a reserve study. 50 hours, tels me you're taking way too many breaks.
MichaelT21 (Arkansas)
Posts: 200
Posted:
Quote:
Posted By MaxB4 on 12/23/2022 10:51 AM
On a side note, it takes me an hour to set up a reserve study. 50 hours, tels me you're taking way too many breaks.

That's because you used software.

My 50 hour estimate was if I did everything in Excel from scratch.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By JimR24 on 12/23/2022 10:26 AM
I have been wondering about doing reserve projections for my hoa and sharing the results.
How often does your HOA pay a company to do a reserve study?

Regardless I think reserve studies should be updated annually, either in-house or for a small fee (and possibly for free) by the reserve company who did the most recent study. If your goal is to point out to the board those numbers in the current study that should reasonably be adjusted (like estimated remaining useful life and or estimated cost to replace), and you intend to review the numbers and infrastructure annually, then I think this could be useful.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Hi Jim,

I have done this.

I provided some information in an old thread when I did our Associations first reserve study:
Subject: Reserve Studies/Funds 101

My updates were done yearly and identified in updated studies.

I'm willing to share - email me [email protected]
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By MichaelT21 on 12/23/2022 10:52 AM
Posted By MaxB4 on 12/23/2022 10:51 AM
On a side note, it takes me an hour to set up a reserve study. 50 hours, tels me you're taking way too many breaks.


That's because you used software.

My 50 hour estimate was if I did everything in Excel from scratch.

Ok, 2 hours if a did it from scratch in Excel, which BTW is software. The "software" I use is written in Excel.
JimR24 (Texas)
Posts: 399
Posted:
Thanks Tim = sending email to you. oljim, in texas
Lovin' life with my honey!
and, President of HOA in Texas
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JimR24 on 12/23/2022 11:23 AM
Thanks Tim = sending email to you. oljim, in texas

My reply has been sent.
KerryL1 (California)
Posts: 14,550
Posted:
When was your last professional study, Jim? Does your HOA have a lot of reserves components?? A lot of mechanical & eletronic ones?
JimR24 (Texas)
Posts: 399
Posted:
Hi Kerry - thanks for the question. I have been involved in two other professional studies at a former hoa residence. I am with a new hoa now and it is only recently been transferred from developer control. I believe - if a reserve professional would define our reserve components - there would be only two. The two are our private road and our gate. What do you think?
Lovin' life with my honey!
and, President of HOA in Texas
TimB4 (Tennessee)
Posts: 21,059
Posted:
Jim,

Those would be the two big ones.

Being gated, what about fences?
Entrance Monuments?
Street Lights?
Signage (road signs)?
Storm Water Management?

Does the development have playgrounds?
Sidewalks?
etc.
TimB4 (Tennessee)
Posts: 21,059
Posted:
OH, and another one - gang mailboxes (as the Post Office won't replace, the Association will).
JimR24 (Texas)
Posts: 399
Posted:
Excellent Tim - good list. No playgrounds or sidewalks but good thinking. Thanks for helping me! oljim in texas
Lovin' life with my honey!
and, President of HOA in Texas
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I recently talked to several Reserve Study companies and all refused to quote. Two said they had no available staff in my area. One said we were to small for them. One never replied back.

That said, the President and I disagree on the need for one. I maintain we are small enough (no amenities, small private patio homes) to prepare one ourselves. He is scared our dues may not be large enough to cover the 3 main cost items we face.
1. Fence repair/replacement. On going.
2. Roof replacement. Estimated to begin in 2027 and be over 7 year period.
3. External house shell replacement. Estimated to begin in 2040 and be over 7 year period.
Above based on normal wear and tear. Owners responsible for any damage.

We recently had a dues increase so the President is comfortable and thinks maybe we can undertake the study ourselves.

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