"What every Investor should know about Condo Hotel Real Estate!"
"Vacation Property that generates Revenue"
I love Condo-Hotels. They provide a revenue stream when I am not using
the units, and also give me a great place to stay when I am on vacation or
travelling on business. I currently own, or have owned units in Canada, Florida
and Las Vegas.
Now, I want to be straight up with you here. Condo Hotel Investments
aren't for everyone . They are most suitable for people that
vacation, or, travel to the same destination over and over
again. That said, if you do fall into either of those categories, Condotels
(the other term for a Condo-Hotel) may present the opportunity you have been
looking for.
However, like any investment, you need to do careful planning and
research before making a commitment.
Here is a little story about a mistake I made....
I was looking for a new Condo
Hotel investment in Florida, and evaluating my options. At the time I
owned a Condo-Hotel Residence in a Ski Resort in British
Columbia, Canada, and overall the experience with this property had
been really good.
With this property, the company
responsible for managing the condo hotel had lots of experience, there was an
excellent marketing program in place to insure that the hotel was always busy,
checks from the rental management program came every month and covered
many of my costs , and the property was appreciating in value. I
had chosen the right location, and the right type of investment. What more
could I ask for!
To start the process of looking for my
new condo hotel investment, I did some initial research online, and
located a realtor in the area in Florida I was most interested in.
One of the condotel properties we discussed
shined above the others. I was told that the condo hotel was going to
have a great rental management program to offset some of my costs. I
was also shown number and figures about the type of return I could expect
.
I knew that I was really going to enjoy
this location when I had to travel to Florida on business, and after the
property appreciated I would
sell it for a profit.
I quickly reviewed the rental
management agreement (RMA), arranged for financing, and
purchased the unit.
It was soon after I took possession that I realized maybe this wasn't going to be what I expected.
Unlike my original investment, there was
very little revenue generated and this property was costing me
a tremendous amount of money every month to keep up.
So, why did this happen, and what
mistakes did I make?
The bottom line was:
I hadn't asked the right questions that would have given me the best information before purchasing!
Seems simple doesn't it? Ask the right questions...determine if this will be a
good investment.
For example, a critical question I should have asked was:
"What kind of
experience does the company managing the hotel
have"?
If I had asked that question, I would have found out that this was the first
Condo-Hotel managed by this particular company. That should have been enough to
make me reconsider what I was getting into.
But there was more.....
I next decided to take a closer look at the rental
management agreements provided by each Condo Hotel.
Now, the truth is, I hadn't paid a lot of attention
to the details of the rental management agreement at first.After
all, it was a "Legal Contract", and a lot of the hotel terms didn't really make
sense to me. My regular lawyer was able to give me a pretty good overview,
however, his area of expertise is not related to hotels.
For example, terms like "Rack Rate",
"Net Rental Revenue", and "Allocation of Reservations"
were prevalent througout the agreements, and he was unsure of the exact
definitions.
I figured the next step was to see a lawyer that
specialized in Property Management Agreements
for Condo Hotels and get the details straight from an expert , and
WOW, did that ever open up my eyes.
I spent 8 hours with that lawyer
at a cost of $400 per hour (total cost $3200) to pick
his brain and understand the details.
Now, I am not going to go into the exact details of how the
agreement was structured (that information is in the Manual available at
the bottom of this page), but I will give you an example of another really
important consideration towards your investment decision, and that has to
do with something called Room Reservation Rotation.
The process of Room Rotation is very
important in a Condotel. What this means, is that the Hotel
Managers should try to rent similar units on a fair and equitable basis
throughout the Condotel to try to "equalize" the revenue amongst owners.
For example, all 1 bedrooms are expected to receive the
same overall revenue distributions to the different owners. The
goal is to not favor a specific owner or unit over the other. The
process is usually handled through the Reservation System, or third party
rental rotation system like
ownerrelations.com.
This process is easier said then
done because there are a lot of demand factors that can skew which unit a
hotel guest may be assigned to. The reality is, people staying in a hotel
ask for certain types of units more often then others, and the hotel will
honor those requests.
For example,
rooms in greater demand may include
-
Rooms on higher floors
-
Rooms with
a scenic view
-
The Type
of room (1 bedroom, studio, 2 bedroom)
-
Rooms away
from noisy amenities like elevators, candy machines, swimming pools and
exercise rooms, etc
-
The types of
amenities that may be available in different rooms
-
Previous
stay expectations
-
and more
All these
reasons can result in higher rental renvenue for some units then
others.
Condotel Investor Buying Tip:
When looking at a potential unit, think about what you would want as a guest.
The units in highest demand will provide you with the greatest revenue
opportunity.
Sure, the location of the condo hotel is important, however, the
location of the room you purchase is also very important!
The truth is, I like Condo Hotels. I think that if
you are looking for a good investment with revenue potential, have the means,
and do your homework, a Condo-Hotel may be for you. For me and my family, they
have worked out really well.
But, you need to be INFORMED AND KNOWLEDGEABLE and
make sure you ask the right questions before buying.
"The
Investor's Manual to Condo Hotels"
will walk you through this process, and educate you on the
questions you must ask before making an investment.
For example, here is what you will learn in the Investor's Guide
to Condo Hotels.
-
An overview of Condo Hotels and the different types of
Condotel Investments available (including Fractional property investments) .
-
17 Key questions you MUST to determine whether or
not the property will be a good investment.
-
and most importantly, easy to read and simplified
definitions of a Detailed Rental Management Contract including
terms, clauses to look for, and tips to use when negotiating.
So, what would you expect to pay for all this information. A
$100...$150....perhaps even $200?
Well, let's see what you could
spend to educate yourself
1) You could spend $1000's PICKING THE
BRAIN of a TOP RATED lawyer experienced
in Condo Hotel Property Management Agreements.
2) You could spend 50..75...or even a 100 hours
searching online to get all the details. I do guarantee that the
information is out there....somewhere. The key is choosing what is
relevant, and not relevant.
3) And in the worst scenario, you could spend a
$100,000 or more making a poor investment decision and wonder where you went
wrong.
You could do all that, or...
You can get The Investor's Guide to Condo-Hotels for only
$24.95
That's it. $24.95, and, I also GUARANTEE YOUR SATISFACTION
WITH IT.
That's right. If you don't think that this manual
is going to work for you, return it within 30 days and you'll receive a
full refund.
No hassles, no arguments. No threatening e-mails.
I'm a fair business person who simply
wants you to be knowledgeable and informed. If you're not, then it's your full
right to request and receive a refund.
That's my promise to you.
And, as FREE BONUS GIFT when you
purchase today, you can also download the best selling "Think
and Grow Rich" by Napolean Hill. This book has sold millions of copies and
normally retails at $19.95, but today, you can get it absolutely Free when you
purchase the Investor's Guide to Condo Hotels.
Are you ready to make Smart, Informed Decisions about a Condo-Hotel
investment?
The Investor's Guide to Condo-Hotels is PDF document, so you
will be able to download it and read it today. Even if it is 2:00am in the
morning!
Order
Now
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and Secure - I am PayPal verified
You'll get IMMEDIATE ACCESS to the
manual.
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Here's to a successful and happy Condo-Hotel Investment!
Kind Regards,
Frank Franchini
P.S. I have chosen to make this manual available at $24.95, but that
doesn't mean it will always be that price. You could come back to tomorrow and
find that the price has doubled.
Investor's Manual to Condo Hotels
PO Box 2079
Squamish, BC, Canada
V8B0B4
frankf@gmail.com
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