Navigating Reserve Planning

Robert Nordlund 0:07
So welcome to our program today, called navigating, reserve planning. You always learn more when you see lessons applied. So rather than a lecture about what we want to teach you, we’re going to look at what I thought were three interesting scenarios and make those some some learning opportunities. This is the agenda that we’re going to follow in today’s program. And of course, it has to start with what’s the problem? What are we trying to accomplish here? So I want to make it clear that mother nature and Father Time are ravaging your association on a daily basis, trying to take it down to the ground. And they are unrelenting. So they are doing things like you see here. These are photos from site inspections on the left, roof that’s aging, fences that are falling apart, asphalt and drains that are deteriorating, things that people do. This might be where kids were throwing baseballs, lacrosse balls, or other things, and maybe mold or mildew or other associations. This is one clearly you can see what the palm trees in the background in a warm environment, but deteriorated roof, beat up tile front entryway, it’s cracking along the line. So there’s something structural going on, just the deterioration on a balcony here that you see this is staining just the unsightliness. And this is a front door landing area right behind me taking this picture is the pool. So it’s a pool deck that’s delamining. So this happens throughout the country. All of our clients, you’re facing ongoing deterioration. And then not just that, but we came to June 24 of 2021. We woke up to the news that Champlain tower South had collapsed. It took 98 lives. We learned in that tragic collapse and all of a sudden, underfunding reserves was much more than just delaminating bull deck or a leaky roof or minor things like that, a battered up set aside in so what we have here is a situation where the board is legally responsible as the officers, to manage the affairs of the Association on behalf of all the other owners. And so that’s their role. The manager is there to help, but they’re there. They don’t have the power. They’re there to assist, coach, comfort, console sometimes advise, but they’re in the role of someone who’s recommending. A point I want to make is that it’s all about bills to pay. And Elon reminded me before the program that a lot of associations do a pretty good job paying the operating bills. That’s basically they get an invoice, and after receiving that invoice, they just pay that bill. It’s pretty much something they expect. Now, in the last year or two, insurance bills have gone up, and so that causes a struggle, but still, most associations do pretty good job with the operating bills. The place where they’re not succeeding is reserves, and that’s because they’ve got this idea that why should I care? See this picture of this older gentleman here talking about, why should I set aside reserve funding at my age, I live in the present. I don’t even buy green bananas. And that’s this idea that reserve funding is for the future, and it’s not really. Everything is deteriorating on an ongoing basis. And there’s that deterioration bill that is best and wisest for associations to pay on an ongoing basis, that’s reserve funding. And if associations pay reserve funding along the way, offsetting ongoing deterioration. When they get to the future, everything’s going to be okay. So in this situation where the board’s legally responsible to take care of the Association, and the association is just deteriorating every day, every week, every month, every year, what’s a person to do well. We certainly hope they just don’t sit around, twiddle their fingers or sit on their hands and say we’re doomed, because there’s a better alternative. That better alternative is to go get help, and that’s what we do here in the reserve study industry. We have gone up and down this path, more deterioration, less deterioration, different associations, types, gone up and down this path many times, literally 1000s of times, with our clients pointing out the direction forward, helping our clients stay on the trail and get safely and successfully to the future. So it’s that i. Idea, I want to reinforce here that our clients usually do a pretty good job of paying those operating account bills, where they get invoices, where they struggle and where the problem is. And we’ll illustrate this with some cases in just a moment. The problem is usually the associations where they ignore or underestimate those costs of ongoing deterioration and the quick hit the early score here is that reserve funding is often 25% of total budget. That’s just if anyone was to ask me on the street, what do you do? I say, Well, I recommend associations set aside about quarter of their budget towards reserves that’ll help them have enough money to pay for roofing and painting and asphalt all those kinds of things. Because if you’re not paying that deterioration bill a little bit along the way over time, someone else in the future will, and that’s patently unfair. So many of our clients think that it’s a question about collapsing the budgeting funding, keeping it nice and low, making up for it with special assessments and loans. And when you think about that, that’s not really a good argument, because the homeowner is going to pay either way. It might as well help them know what the true cost of ownership is at the association and put it into budgeted funding. That way everyone’s paying their fair share. They know what they’re up against, and those unwelcome special assessments go away. Okay, so what are we talking about here? This is a profile of reserves, percent funded across the country. On the left is the zero to 30% range, zero to 1010, to 20 point to 30. The middle is the yellow fair range, and on the right is the green strong range. You can see there’s plenty of associations that are in the strong range, plenty of associations that are in the fair range, and works out to be about 28 to 30% of associations are in this weak range. And why do we care? Well, it’s because, when you look at risk, compared to percent funded the associations that are experiencing special assessments because they just plain don’t have enough money to take care of things that’s all in the weak funded association. So these are the ones making all the news. And this is what we do as reserve state providers, trying to counsel our association clients, moving them from the weak range into the fair range, and then from the fair range into the strong range, because you look and you see the risk of special assessments, unexpected surprises is almost the zero when you’re out in the fair range. And that’s what we want. We want our clients to be looking like this, not those deteriorated scenarios. Because really, it’s all a matter of just paying the bills. These are predictable reserve deterioration bills. So that’s a problem that we’re trying to face. And then let me turn to this portion of the program and turn the microphone over to Elon. We’ll talk about our first case study that we call waking up to a problem. Elon,

Elon Goldman 8:24
hey, thanks, Robert and Hello, everyone. So I want to introduce, yeah, this first case study. The name of this association we call sleepy villas. The Association is a 157 unit townhome Association built 1987 so it’s 37 years old. Also has 37 buildings, and it has some of the assets here, one pool and the home values are, they range from 200,000 to about $275,000 apiece. Now the interesting thing here is the new management company required a reserve study to be completed, and the reserve study seriously woke the Board of Directors up to a problem that had been growing right under their eyes, but it was obvious when they began to notice. So let’s take a look at the results of the study. The board or the sorry the association, is $410,000 in reserves. Siding and roofing needed to be replaced now, which was evident by the 20 plus years of deterioration, and the association was 4.4% funded. And remember what you just learned that nearly 1/3 of associations out there fall into this weak range and have a high incidence of special assessment. So that’s not uncommon. What we did here is we recommended large increases in reserve funding and a special assessment. And in this case, you know, it’s very difficult for the association to pass a special assessment and catch up from 20 plus years of deterioration. So we’re going to take a look at what they did and how they did it by taking a look at our online software tool called you planet.

Robert Nordlund 9:59
Yeah, hey, Elon, I just want to jump in on this one. Want to make it clear that sleepy villas is what we call this association. Is not the true name. This is a bunch of real people and a real association. So we want to be careful. This was some private consulting that we did for them. But notice that this is 157 unit town home Association, they had 400,000 in reserves. And until you know what you’re really up against, 400 some $1,000 sounds like a lot of money. You think that’s what they were thinking at the time? Yeah,

Elon Goldman 10:32
I think so. And I have this conversation with clients all the time, you know, some might say, hey, we have half a million dollars in reserves, or even a million dollars in reserves. And my response to, you know, prospective clients, or clients we’re working with at the start of a study is, hey, we don’t really know where you stand, percent funded wise, until we finish the study. So you know who you saying you have $410,000 again, it’s unknown. And let’s, let’s do the inspection, put together this funding plan and see what’s really going on here. Yeah,

Robert Nordlund 11:00
find out if that’s a good amount or not, or what that means. Okay, so what’s that look like, and what did they do? And as Elon suggested, let me pop you into what we call you planet. This is from our Client Center. All our clients are here. This is what a portfolio manager would see their list of properties. So we’ve got, this is sleepy villas. Okay, here we go, and we look at you planet and back to you. Elon,

Elon Goldman 11:37
yeah. So before we get into kind of what we did here. Let’s talk about what happened. So the Association had this harsh news that was delivered significant reserve funding increase from $50 per month to $133.76 per month, which is almost an $84 $84 increase, plus a $7.7 million special assessment, which comes out to about $49,000

Robert Nordlund 12:06
a unit. Wait, $9,000 special assessment, which home is only worth 200 some

Elon Goldman 12:13
Correct? Yeah, there’s a pretty large townhome community. A lot of surface area of siding, a lot of roof surface area. These projects are very, very expensive, and as we know, maintaining real estate’s expensive, so yeah, pretty costly, and it’s unfortunate, but we’re going to show you how they worked out of this, and really were able to accomplish the tasks at hand.

Robert Nordlund 12:33
Wasn’t that big, special assessment, actually, why we did exactly what you’re about to walk us through, correct,

Elon Goldman 12:40
correct. Yeah, and let’s take a look at that. So what we did here is we, I’m going to go through these, some of these, you know, big ticket items, these big projects, and give you an idea of how, how much they represent, the total deterioration. What’s the value of that here? So the first project, or first component here, is the concrete driveways and walkways. So we phase that out over 10 years, and we did 10% repair replacements every single year. So it’s 100 100% over the next 10 years. And those assets alone equated to 70% of the total reserve funding. 70

Robert Nordlund 13:16
or sorry, sorry,

Elon Goldman 13:18
excuse me. 7% 7% um, the next component, we’ll take a look at the concrete roadway assets. So again, 10 phases, 10% every phase, and that was 9% of the total reserve funding. And the next we’ll take a look at siding project. This is going to be a big one. So what we did for siding? Okay, so,

Robert Nordlund 13:41
I mean, let me catch up with you. Yeah, yeah, let me catch up. So we have the basically concrete infrastructure. There was about 16% of total, and we spread it out so they could do a little bit at a time. So we tried to soften the blow there, but with deteriorated siding, see the here’s the pool and here’s the building exterior. Okay, here we have the siding. And yeah, so

Elon Goldman 14:06
siding, we have three phases. So you can see 238,400 gross square feet. And we’re going to factor for a third of that square footage for these three phases. What you’ll see is that the useful life is 40, but the remaining useful life is zero. So we’re saying, hey, this will be done all at the same time, but we’re giving the opportunity, the board, the opportunity to potentially defer the second or third phase. So just kind of setting it up in a way, since we know that cash is an issue, and there’s going to, you know, they’re gonna have to special assess and increase assessments. So that’s what we did for siding, and that represents 40 and a half percent of the total funding. Yeah, it’s a lot. So a lot of siding at this place, correct? Yep. And the next component we’re gonna take a look at is roofing. So we also set it up in a similar fashion, three different phases, a third of the total surface area for. Phase, potentially allowing the client to defer the second or third phases. And the roofing equates to 25.5% of the total reserve funding. And to back that up, go to gutters and downspouts. We we kind of set that up and again, a similar way, but we want to make sure that at least push the client in direction that say that the roofing replacements and the gutter and downspout replacements will occur at the same time. Since the contractors the vendors, will be up there replacing the material on the roof surface, the roof deck, they’ll have access to the gutters there too. So it’s best for economies of scale to get those done at the same time, if possible. So we set that up in a similar fashion. Yeah.

Robert Nordlund 15:43
Well, Elon, I want to just reinforce something that you’ve said. When I am scrolling up and down this, there are maybe 50 components here, and it looks like a lot of things, but I like the way you summarized it, that the concrete stuff is about 16% the siding was, what 45 ish percent, yep. And then the roofing type things are 25 ish percent. So if I did the math correctly, that’s about 86% 87% of the entire reserve study is driven by those three things, correct, complete stuff, the siding stuff and the roofing stuff. And, yeah, all of a sudden the story becomes a lot clearer, and able to tell them that, hey, you have 4% of the money you should have at this time based on how old things are, and it’s all driven by your concrete stuff, siding stuff and roofing stuff, right? Yeah, that’s

Elon Goldman 16:41
pretty common for a lot of the clients who work with typically, they’ll have three to five big ticket items that are driving the funding and the reserve study. So this was, yeah, it was interesting to see, but yeah, I think it was 85% I didn’t comment on the percentage of the total for the gutters and downspouts, but that was 3% Yeah, it was a, you know, it’s a large reserve bird just on those small, you know, few components, and it was all about those and, you know, it was, to no surprise, the right our recommendations too much for the board to handle. It’s a lot of money, yeah,

Robert Nordlund 17:11
which is exactly why we kind of broke it into pieces so they could with the planet. Well, I’m don’t want to steal your thunder. Tell, what they ended up doing. Bunch of town hall meetings, a lot of ringing of hands, but they got to a solution. And

Elon Goldman 17:28
yeah, that yes, let’s, let’s go ahead.

Robert Nordlund 17:31
Okay, so what did they do?

Elon Goldman 17:33
Yeah, once, uh, these results were delivered to the board, and then they molded over. They had town hall meetings to relay with the results to the rest of the community to really come up with a plan of action, because once the board gets these results, you know, again, we’re talking big numbers here, even if it was just a large assessment increase and no special assessment, the association needs to know. So they were coming up with a good plan to really drive home the results and how they were going to put together a plan of action to get these projects done. So what they did was they used you plan it significantly coming up over a few months of time. With the combination of phasing out those projects, we had discussed increasing the reserve funding, they passed a $7,000 per home special assessment and obtained a $6,000,000.15 year bank loan, which that came out to about $40,000 per home. Now you may be thinking again, that’s a lot of money, but the expectation here is that home values will nicely support this investment. You know, this association is going from a tired old, deteriorated state to a property that is nice and really pleasing to look at. Yeah, I

Robert Nordlund 18:43
bet the over a five year point in time, those homes are going to pop up $100,000

Elon Goldman 18:48
yeah, I would think so at least. Yeah.

Robert Nordlund 18:51
Well, that’s fantastic. Now, another thing I like about this is how the Board did not just throw their hands up and say, We can’t do it. I’m going to sell my home. This board took their job seriously. They were helped by the new management company, and they wrestled with this, and they put the time in. And I really think they’re all going to make a whole bunch of money turning that depressed and deteriorated Association into a nice place to live. Yeah, I

Elon Goldman 19:20
agree. I think those are, they’re really costly projects and prospective buyers. No, I understand that. That’s, that’s value into the into the unit they’re potentially going to buy. Okay,

Robert Nordlund 19:30
let’s turn the page and start talking about case study that has to do with surprises at an association. All

Elon Goldman 19:39
right, yeah, this is an interesting one, so let’s take a look. Here. We have an 84 unit, five story building with four elevators, pool and a spa. It’s built in 1975 so it’s 49 years old, so older building, and although older, it’s a nice building in a major metropolitan area. So we conducted a with site visit update for the. 2023 fiscal year, and the association started experiencing some surprises in 2024 now let’s take a look at the results again. The starting balance for the association was projected at $823,000 they were 56.3% funded. We recommended reserve funding of $19,900 per month and keynote here they were on schedule for a custom carpet installation.

Robert Nordlund 20:25
Okay, so, and then the surprises started. Yeah,

Elon Goldman 20:29
let’s take a look at these a little bit deeper. So surprise number one, the Treasurer, who was actually unfortunately suffering from cataracts, he accepted the delivery of custom carpet, and the installer started cutting the material and installing it. And you know, some board members were on vacation, and upon their return, they noticed that it was actually the wrong color, and it was plainly just the wrong material. So in this case, since the delivery and installation was already authorized, the Association had to reorder the carpet, because the mill simply made it wrong. And so yeah, there went $140,000 so it’s a huge surprise. Let’s take a look at surprise number two, also pretty interesting, because I’ve never really seen this before. So the elevators at this association became began failing regularly, and an investigation evaluation of results found that the motors were designed for conveyor belts, you know, one way motion, and not back and forth elevator service. So the board realized they they really needed to start this elevator modernization 12 years earlier than anticipated. That’s, yeah, very significant, because we all know that elevators are very costly, so they were not, you know, not prepared to handle something like that. So let’s take a look at you planet and see you know what the Association did to overcome these challenges. And Robert, before we dive into those two surprises, let’s take a look at something scenario where the association gets a nice payback.

Robert Nordlund 21:58
There we go. I glad we’re going to take this little detour. Okay, so I’ve got you plan it up here for surprise condo association. I think I know where you’re going to go.

Elon Goldman 22:08
Yeah. So our initial recommendation was $19,900 per month in reserve funding. But what we want to do is take a look at our control panel and the interest, so you can see that the interest there, we had 4% I already just was 4% and so but before we change it to 4% we had assumptions. The association was getting 1% interest earning on their money. But we really did a detail, had a detailed discussion with the board and talked them into doing better because of current rates, so they were actually able to obtain rates at 4% and so what we’re going to do here is take a look at what would the reserve funding have been if they kept that 1% rate, here, and compare that to the reserve funding at 4% so we’re gonna run, yeah, go ahead. Okay, run this whole solver. So

Robert Nordlund 23:11
it shows that they at 1% they needed 22, 820, per month, and they were at 19 900 Have you done the math on them? Yeah, 99

Elon Goldman 23:22
Yes. So the difference there is $2,920 per month, or $35,040

Robert Nordlund 23:30
per year, or a few hours of effort to get 4% on their money instead of 1% correct.

Elon Goldman 23:37
So it’s a super important reason why any you know board member here today should, yeah, have that discussion with the rest of the board. Talk to bankers and potentially, you know, put their money in and some account that has higher interest earning, fantastic.

Robert Nordlund 23:51
I like, like that. Okay, let me get this back to the the way we left them at 4%

Elon Goldman 24:01
all right, and take a look

Robert Nordlund 24:04
that’s stabilized. This is, that’s

Elon Goldman 24:07
why you plan it so great. We have these buttons, you know, that reset this data pretty quickly. And again, it’s it’s such a great tool that our our clients get to use.

Robert Nordlund 24:18
There we go. There we go. I must have changed something else. Okay, well, let’s go. Let’s go to what was happening at the association. All right. So let’s

Elon Goldman 24:29
take a look at the first surprise. So we’re going to navigate to carpet, which in our component list is number 601, so we have the remaining use life set as zero. Project cost is $140,000 because this project was planned. So what we need to do here is deduct another $140,000 from their projected starting reserve balance, because they have to spend an additional 140 on the new material. So if we do that math, Robert, that’s going to be $683,000

Unknown Speaker 25:02
Okay,

Elon Goldman 25:04
okay, got it, and let’s go ahead and go to the elevator. Surprise, okay,

Robert Nordlund 25:11
scrolling down, got it.

Elon Goldman 25:14
So if we look here, the component set up with the 25 year useful life, 12 year remaining, because that’s how much time the associate, or, you know, we thought was left based on the, you know, the elevator at the time, surprised we didn’t know about but now that we know the elevator needs to be modernized, we’re going to drop that down to zero. And that is a $540,000 project. How true? Yeah, so we’ll do that.

Robert Nordlund 25:38
Okay, so elevator is zero remaining life at 540,000 carpet is still this year at 140,000 but we spent that money on the wrong color carpet, and now let’s go over and see what kind of a problem we have on our hands.

Elon Goldman 25:56
Okay, so first thing that I want to point out as percent funded. So before I’d mentioned that percent funded was 56% now it’s 40% so a pretty substantial drop in percent funded. And let’s go ahead and hit the full solver button to see what we get there.

Robert Nordlund 26:15
Okay, social assessment and increase in funding. Yeah.

Elon Goldman 26:20
So we went from funding wise, $19,900 to 21,006 90, and that’s on a monthly basis. Then $85,000 680 $85,680 special assessment. But what we’re gonna do here is clean that, yeah, reduce that to, let’s reduce to 84,000 so it’s an even $1,000 per unit, and that’s the scenario we, the board, had put together so and it’s not that’s not really a bad place to be considering, you know, this large increase in funding needs, essentially, because the association was 56% funded. Think that’s a reason why it turned out a lot better than it could have been. Yeah,

Robert Nordlund 27:00
yeah, we even the loss of $140,000 that dropped it and, yeah, 140,000 divided by 84 units is, I don’t know, 15 $1,600 and they were able to only have $1,000 premium special assessment, while we could probably see it here. Yeah, that a big elevator project in the first year. Yeah, so there’s a lot of value in having a strong reserve fund that can insulate you from special assessments and surprises. Yeah.

Elon Goldman 27:34
And in this case, you know, who knows? You know, if they were around 100% funded, fully funded, they may have not even needed a special assessment, and could have, you know, incurred those costs without, really, you know, big hiccup at all.

Robert Nordlund 27:47
Yeah, I believe that’s correct. Yeah, okay, that’d be my guess, too. All right, back to the program. Yes, let’s go ahead. Okay, so association was financially unprepared. They had two significant blows. So what did they do? And Elon, yeah, so

Elon Goldman 28:05
let’s sum it all up here. The association dropped from 56% funded to 40% funded. Increased reserve funding from $19,900 per month to 21,006 90 per month, and they passed a special assessment of $1,000 per unit. So that’s not too bad again, considering the challenges and the costs they had to face excellent

Robert Nordlund 28:29
Okay, let’s talk about scenario number three, we have some clients that do enjoy working with youplanet, everyone. All of our professional level of service clients have access to it free with the completed reserve study, or clients that are not Association reserves professional clients, they can subscribe for $399 per budget season. And let’s show you what that looks like. So I’ll take you back to you plan it, and we’ll launch a scenario where we have an association that just has a subscription, so no information to start with. And let me show you what that looks like. So now they have access to the tool, and you’re staring at a blank screen. But most associations have some form or another of reserve planning. So let’s import what they’ve done before, and I’ve got a import file here, and instantly, here are all the components I kind of forget how big of an association this was to have these components got balconies, intercoms, so I’m thinking of mid rise stucco paint, a pool, metal carport roof and flat roof, okay, and we go to a control panel. And I think this place had. About 250,000 Yeah, well, I wish it was that easy to say. And let’s give them the same kind of thing, 4% interest and save that and go to recommendations. And as you’ve seen us, we can just click the Full solver to provide a full funding solution, and they it’s recommending 34 to 70 per year with a 60 some $1,000 special assessment. And that seems like a lot, but Oh, yikes. Yeah, they’ve got a lot going on in this first two years, and

Elon Goldman 30:40
that might be a lot for them. And they can also hit that baseline solver button, which is a great feature, just to give them with enough cash, you know, to get complete their projects without having still a special assessment in there. Yeah,

Robert Nordlund 30:53
still a special assessment. But the reserve funding went from 34,000 or so down to 30,000 you want to see if we can tune this a little bit? Yeah, let’s do it. If you and I were doing this, what would we do? Well, I’d go to tables and look to see which components are most significant. Balconies is 10% stucco and stucco and roofing. Let’s, let’s look at roofing, see if we can manage that a little bit. So let’s go to components. Go to roofing and flat roof, indeed, is 15 years usual life, one years remaining. What do you say? We hire a roofer for five or 10 grand and to get them to kind of fix the worst areas of the roof, and so we can push this replacement out another year. That’s a great idea. Okay, now what happens? You can see that that roof project got pushed out a year. And young, what do you Oh, let’s see if we can make that special assessment go away. No, they just, they crash and burn eventually.

Elon Goldman 32:13
Yeah, we just increase their reserve funding a bit. And I think that, yeah, let’s

Robert Nordlund 32:17
I think you’re right. Let’s do that. Okay, I like a zero special assessment,

Elon Goldman 32:22
38,000 maybe.

Robert Nordlund 32:24
Let’s try 35 because we have friends at this association. See, we’re gonna sneak up to it. Oh yeah, 35 that works, yeah, even 30 they could get by with, I bet, 3433 Yep, yeah.

Elon Goldman 32:40
And, you know, I like to tell clients, it’s Yeah. For on our side, I think when we’re crafting reserve studies, we don’t just simply hit these full solver and baseline solver buttons. We really take the time and do custom evaluations and custom plans. But sometimes, you know, for for clients who are just looking at a quick scenario or quick change, those buttons really do help? Yeah, and

Robert Nordlund 33:01
that, I think what we’ve shown here is the interaction between ongoing maintenance and reserve planning. And by golly, if you can spend 10 grand on a roofer to do some tune up on the roof and save a 2030, $40,000 special assessment, Yeah, boy, that’s money well spent. Yeah,

Elon Goldman 33:23
I agree it’s a good, good scenario, good alternative here.

Robert Nordlund 33:27
Okay, well, that’s kind of a quick demo of you plan it and what you can do with online tool, with some software tools if you want to be doing your own reserve planning. Okay, back to the program, and that brings us to the conclusion time and let me just bring this program to a close. What we want to reinforce is that question, where are your choices leading your association? You can sit on your hands, or you can invest time as a board member, as a manager, and help the association do the right thing and do some wonderful things for property values. There’s a lot of possibilities in front it’s not always going to be smooth sailing, as we showed here. There’s possibilities of finally trying to be the responsible ones, and waking up and seeing what problem 20 years of board members left for you, but you can solve that, or maybe it surprises. There’s going to be obstacles, because we’re talking about the future, but there’s guides out here. There’s reserves, a professionals like Elon and myself. There’s no reason to stumble forward by yourself. It’s going to be a journey to get to the future. There’s going to be some twists and turns, but it’s worth a trip talking property values, taking good care of the building owner, enjoyment, maximizing property values and the homeowners are depending on you to be making the good decisions. Don’t have to do. Yourself, you can get some help. So we’re here at Association reserves, reservesday.com We’ve done this all across the country for 38 years. Now we have some additional resources, like our understanding reserves book. It’s available on Amazon, or you can download chapter one for free. I’ll make sure a link to that free chapter one is in the outline, and we spoke to you about you plan it. It’s a great little tool to help you with your reserve planning decisions at your association. Free to our client, associations, 399, per budget season. For all others, I’ll make sure there’s a link to subscribe in the outline, if you want to go down that path. And we have large number of free resources, you can go to YouTube, search for reserve studies, find our content there, give them a like, subscribe to our channel. And speaking of more free content, we’ve got our weekly 30 minute podcast for board members to encourage and equip board members. It’s called HOA insights, common sense or common areas. You can subscribe from all major platforms or listen from our website. HOA insights.org or it also is on YouTube, and it’s a great way to hear current events, to sharpen your skills, to hear from subject matter experts on various topics, meeting minutes, financials, insurance, some storytellers, and I just inked a expert today that will talk about investing reserves, great stuff. It’s a great another platform we have all for board members, and at this point in time, let me bring the program to a close again. Usually at this point in time, hand it over to Paige to handle Q A but Elon and I are here to help you with your questions for a few minutes, as long as you’d like to stay with us,