home loans

With Condo Hotel you are purchasing
Real Estate, NOT Revenue.

The SEC regulates/restricts any forward looking statements made by the condo hotel industry. It is important for you to do your own research. This is an attempt to help you begin this task, but this should be a starting point, not an end. Our concern is that our borrowers know clearly what they are buying, and can afford the monthly payments should there be NO rental income.

Hassle-free rental income as an offset to ownership expense is the an advantage to condo hotel vs a traditional condo. If you must hire a management company for your traditional condo, and are limited to weekly rentals (which should generate less on a per night use than nightly rentals) your net rental income should be higher for a condo hotel, with less hassle on your part. Your time and money invested has a value that should be used in your determination of the value of your purchase. Services and amenities are also important, both add an expense of ownership, and a benefit for rental potential.

The Math: Consumer
Since most people don’t use a second home more than 30 days per year; a cottage or a condo hotel unit is likely vacant for 330 days/yr. IF we Assume a hotel runs a 65% occupancy = 214 of potential rentable days.
IF the Average Daily Rate (ADR) is $175/night = $37,537 year in potential gross revenue. ($175×214=$37,537)

Many condo hotel Rental Management Agreements (RMA) pay a 41-50% split with hotel management. Assuming this, your income could be $1,370/mo before your expenses of Debt Service, Taxes, Insurance, Dues. At current market rates, $1370/mo supports roughly a $250,000 loan (before taxes, dues, insurance). Numerous assumptions have been made in this example. Hotels traditionally have seasons, and regularly require maintenance and improvement.

With Condo Hotel you are purchasing
Real Estate, NOT Revenue.

Tax Benefits, Potential Appreciation, and Hassle Free Use are other benefits of this form of real estate ownership, but every purchaser should consult their financial advisors.

If living in a luxury hotel, dining out, with turn-down and maid service is your idea of first-class vacation living… and you don’t want to pay for your second home while you back home then you are a candidate for Condo Hotel ownership.

Bob Waun , Founder & CEO

bwaun@vacation-finance.com

As a VP at Paramount Bank, and while at Wells Fargo, Bob innovated lending for Condo Hotel projects. He holds a Master’s degree in finance/economics and BBA in finance from Walsh College and a MI Real Estate Broker’s License. He has personally lent over $750+ million in residential loans, and over seen operations lending $1+billion. He has been a professional guest speaker and taught numerous courses/seminars on real estate finance.

He managed controlled business relationships for a national real estate brokerage in MI and OH, held top sales honors for Wells Fargo in 7 states. Bob has a 17 year track record of cutting-edge innovation in the mortgage finance.

Since 2002, Bob has worked with condo hotel developers and lenders to improve the market for condo hotel financing.

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Modular homes are those created and assembled in factories or a remote space away from the building site. Literally, homes are manufactured and assembled according to the wish of the customer before they are shipped by trucks to the site, where they are crane-set to a preset foundation.

Modular home manufacturers offer a great deal of advantages compared to the usual site-built homes. The whole manufacturing and assembly unit is located indoors far from the ravages of climate and weather. So the assembly of the best quality components is possible without causing any damage or scratching.

The modular manufacturing unit is also able to source the components of the highest quality and top-branded commodities, because they have a separate purchase department that buys these materials in bulk from suppliers at low costs. Bulk buying reduces costs substantially.

There are considerable savings in labor costs also. A site-built home employs many contractors, subcontractors, masons, laborers, etc. But for modular homes, the components are assembled on the shop floor, as in a production assembly line, overseen by a few specialized and highly skilled workers. In comparison, site-built houses hire a large pool of unskilled labor and incur high costs.

Modular homes are built according to local, regional and state codes. This is especially useful in places like earthquake-prone areas where buildings have safety regulations.

Manufacturers of modular homes also promise considerable time savings. It takes thirty to ninety days to manufacture a modular home, compared to four to nine months for a site built construction. The increased efficiency of construction results in greater value for homeowners. They are able to make a twenty- to forty-percent reduction in cost savings, and in half the time. The combination of reduced time, efficient construction, easy customization and lack of skilled labor is making modular or system construction more and more popular every day.

The first task for a prospective customer is to select a modular home manufacturer. The majority of manufacturers are located on the East Coast and may ship only to selected places. It is a wise decision to consult local builders about the manufacturer.

After a manufacturer and a local builder have been decided upon, it is time to choose a floor plan. When these decisions have been made and an initial contract is signed, the manufacturer’s professional staff will oversee the plans, and factory production rolls on. Once the manufacturing has begun, it will finish within a few days’ time. The modular home is then shipped to the site on flat bed trucks. The units are placed on the preset foundation by a crane and fastened together.

Though it may take one more week of tinkering by plumbers and electricians, your new modular home is ready by an average of three months. Compare that to six months to an entire year for a site built house!

Modular Homes provides detailed information about modular homes, modular home builders, modular home loans and more. Modular Homes is affiliated with Storage Sheds.

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Many people are trying to figure out how can they fix their bad credit status these days. But the problem is that they get confused by all of the wrong information they are given to. A lot of companies claim to restore your credit for a very low fee, but most of these companies are scammers and don’t have a good reputation.

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