Investor's Guide to Condotels, Condo Hotels and Fractionals
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INVESTOR\'S MANUAL TO CONDOTELS
AND FRACTIONALS PROPERTIES
Your guide to making a smart investment in a Condo Hotel or
Fractional Unit, and how to save yourself from YEARS of Frustration
and Agony.
"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
[2]. _
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
100% Safe and Secure - I am PayPal verified
[3]
YOU\'LL GET IMMEDIATE ACCESS TO THE MANUAL.
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 [4]
InsideCondoHotels.com © 2007
