Looking For Condotel Financing
Can anyone recommend someone that provides little or no money down on condotels? I really like these investments, but they usually require at least 20% down. Any ideas would be greatly appreciated. Thanks!!!
[addsig]
What is a condotel?
The reason that everybody is requring 20% down on these is that they are very much an un-tried product. In addition there is no secondary market for the paper. Sometimes the converters will carry back 2nd mortgages.
Try Centex Home Equity. Im not sure how much you have to put down, but I have done a few Condotel refinances with them in FL. I dont know if they have a retail division, but if you are working with a broker they can definatley use them. Hope this helps
We purchased a condotel in Park City, UT in Nov 2004. We had to put 20% down because our FICO scores were on the low side. (Too many credit inquires) If our FICO scores came in over 690 we could have got a mortgage for 10% down. (They are around 680). We did not mind the 20% down requirement since the unit cost us only $60,000. The unit is rented nightly. Our cash flow looks real good so far.
P&I&taxes&Ins = 367
HOA = 127
Phone = 25
Total expense is $519 a month.
For Jan and Feb our income (after property mangement fees) were $900 each month. Spring and fall might be a little tight but a cash flow of $380/mo on good months should carry us through.
Anyway our mortgage broker was Bryan Williams at 801-898-9473. He is very familiar with financing Condtels.
What is a lot lowered price?
How does one know if they are getting a good deal, excuse my ignorance please. I saw one in Broward near Hollywood Beach, FL for $77k. Thanks, Tim
Find the appraisd value, look at copms, what is the developers strategy for the converstion, our there new ammenties going in, what is the location, what is the draw for vacationers and potential resedintial sales. Find the total costs and what the montlhy rental rate is. I invest with a developer that does mixed resort conversions with short term rentals. I am able to purchase below apprasied value, future ammenities are first class, there is a draw for vacationers and potential resale to residnents, the developer offers a 24 month leaseback (15% of sales price), so i receive guaranteed income for 2 years to cover mortgage, taxes, insurance, HOA, club fees...and during this time the developer is building rental history and renevating the condos building ammenities. You have to have your own exit strategy though, mine happens to be month 18, because i can see what my unit has doen for rental, so i can keep for a cash flow or resale, take the profits and roll into another project with this develper, buy that new escalade or just buy new shoes (lots of them ....there are alot of great conversions out there, you just need to see the big picure and postions yourself for maximum gain
i realize i have typos all over that last post, my apologies...blame it on fat fingers
I dont understand why 20%, i am doing 100% financing offered through several different banks?
I dont want to hack the moderators off, so my apolgies but i do not work for any of these banks just have used them... i live in FL and invest mainly in FL, i have usef 5/3 bank (they have the best program for what i am doing, 100K in account will finance 100% up to 2M unstated). Countrywide, TransAtlantic, AllState Mortgage, Meridian, and Fidelity (used them as a stock collateral)....
cbrechbill1,
could you explain in more detail how a 53 program works and where we can find them, are u stating that countrywide and those other lenders you mention offer that program? thanks, tim
5/3 offers a 100% investment loan, where if i have 100K on account with them, they will loan me 100% up to 2M with a score above 720 unstated income. They will make the payments from this account, i invest with a developer that offers a optional leaseback (24 months equal to 15% the sales price), so i either purchase enough units where the leaseback will cover the banks requirments or purcahse 1 expensive unit. COuntrywide and the others offer different programs, but with 100%-90%, most do 2 loans 80%/20%
I am a recent college graduate looking to live in the area I work. A more affordable option ( home prices in the area of Florida where I live seem to be getting more astronomical by the minute..) is a condotel. Does anyone know if purchasing one of these units as a primary residence is a good idea and what the additional costs associated with doing this may be (Other than the original purchase price). Thanks!
5/3 offers a 100% investment loan, where if i have 100K on account with them, they will loan me 100% up to 2M with a score above 720 unstated income. They will make the payments from this account, i invest with a developer that offers a optional leaseback (24 months equal to 15% the sales price), so i either purchase enough units where the leaseback will cover the banks requirments or purcahse 1 expensive unit. COuntrywide and the others offer different programs, but with 100%-90%, most do 2 loans 80%/20%
You now can get financing through TCI on your Commercial Projects.
Please go to your MyTCI > My Loan Projects area and start your application. You will receive bids on your project from multiple lenders.
Here is the direct link.
http://www.thecreativeinvestor.com/commercial/modules.php?name=LenderFinder&op=loanprojects
I use a form called "Assignment of Buyers Interest".
this simply puts the assignee in my place in the contract.
Thanks.
I need to know how the transfer works, though.
If the buyer is obtaining financing, then do they obtain the full amount of the financing (including my profit) from the lender? Then they would need to see my original contract with my low purchase price? Would the lender lend on a contract plus an assignment fee?
Or do they need to pay me my profit in cash and then step into my contract?
I think you need to talk to a closing attorney, basically when your buyer is ready, you can have simelteneous closing and the closing attorney will go through both the closing and disburse the money to you, and pay the seller.