Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: condo hotels
Old 06-16-2005, 02:45 PM   #21
Thinks s/he gets paid by the post
greg's Avatar
 
Join Date: Jun 2005
Posts: 1,071
Re: condo hotels

Laurence & th-- I think about a 25% of net worth is tied up in RE (including home). I've always considered RE the equivalent of bonds. But this new venture is more like buying zeros w/o the strips--very risky in a changing interest rate environment or housing bubble. Someone needs to know what they're doing. I hope it's me. Opps, here comes Martha. I'm outta here.

Hurricanes can really muck things up. We sit with an unused hotel for one or two years, dealing with insurance and repairs while the world passes us by. Dieing time is here. Have fun.
__________________

__________________
Compounding: Never forget! Never not remember!
greg is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: condo hotels
Old 06-16-2005, 02:51 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: condo hotels

Scary what wind can do...
Attached Images
File Type: jpg hurricane wall off.jpg (34.8 KB, 70 views)
File Type: jpg Resort-Hotel-damage-12-a.jpg (40.9 KB, 72 views)
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: condo hotels
Old 06-16-2005, 02:53 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: condo hotels

Couple more
Attached Images
File Type: jpg hurricane holliday.jpg (15.5 KB, 70 views)
File Type: jpg normal_Hur.Hotel.pic1.jpg (33.1 KB, 70 views)
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: condo hotels
Old 06-16-2005, 06:34 PM   #24
Recycles dryer sheets
 
Join Date: Aug 2004
Posts: 218
Re: condo hotels

Just nature's way of cleaning up the old stuff. Hurricane codes are MUCH stronger in Florida since Andrew. We stayed through Jean, it was awesome. No damage to our building, but some old one's down the beach really took a bruising.

Martha, could you explain the part about can't force the rental pool. The one I'm in, it's required (at least that's how it was explained to us). That's why it's a condo hotel. In fact we can only use it 3 months out of the year.

Beachbumz 8)
__________________
Life is good.
Beachbumz is offline   Reply With Quote
Re: condo hotels
Old 06-17-2005, 07:29 AM   #25
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: condo hotels

Beach, the issue with requiring the rental pool is a securities issue. If the units were sold requiring the owner to join a rental pool, arguably that is a security which has to comply with state and federal law governing securities. The promoter of the security would need to find an exemption from securities registration.

The developer on my project (who was a lawyer in a former life) heard about a project in Florida where the buyers of the units had to join the rental pool and the promoter also sold units by giving all sorts of projections on how the units would cash flow and make big money for the owners. One of the condo buyers didn't want to be part of the rental pool and complained to either the state or the feds. Government told the promoter that it was selling a security, did not meet an exception from registration, and the promoter had to buy back everyones condo unit.

Beach, this is second hand knowledge but does seem to fit with the little I know about securities law.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: condo hotels
Old 06-19-2005, 08:04 AM   #26
Dryer sheet wannabe
 
Join Date: Jun 2002
Posts: 21
Re: condo hotels

For what it's worth, the Chicago Sun Times has an article today:* http://www.suntimes.com/output/hlife...s-condo19.html


































































































































































__________________
stevelb is offline   Reply With Quote
Re: condo hotels
Old 06-19-2005, 08:15 AM   #27
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,149
Re: condo hotels

stevelb,

Congratulations. You now hold the board record for "Most White Space".

(At least you aren't arguing about whether or not to pull the plug...)

REW
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: condo hotels
Old 06-19-2005, 08:33 AM   #28
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: condo hotels

The article Steve posted also raises the securities issue:

"The Securities and Exchange Commission considers the condo offering a security if income and expenses from the rental units are pooled and if a condo unit is sold with the explicit expectation the buyer will earn money or derive tax benefits from it. If the development is structured as a security, it can only be sold by a securities broker and it is easier for an investor to sue the developer under the SEC's anti-fraud rules, according to Los Angeles attorney Jim Butler.

Most developers choose not to sell their projects as securities to avoid the SEC complications, so they are prohibited from discussing the economic or tax benefits from a rental arrangement or project on how much a condo unit can earn in rental income. Many buyers make decisions without all the facts."

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: condo hotels
Old 06-19-2005, 09:28 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: condo hotels

Quote:
Originally Posted by REWahoo!
(At least you aren't arguing about whether or not to pull the plug...)

REW
I think they should have tried reversing the plug... :P

(For you old farts old enough to remember homes wired without the extra ground)
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: condo hotels
Old 06-20-2005, 10:48 AM   #30
Thinks s/he gets paid by the post
greg's Avatar
 
Join Date: Jun 2005
Posts: 1,071
Re: condo hotels

It looks like we're in. Housing bubble? There aint no stinkin housing bubble.

Hurricanes? There aint no stinkin hurricanes.
__________________
Compounding: Never forget! Never not remember!
greg is offline   Reply With Quote
Re: condo hotels
Old 06-20-2005, 02:41 PM   #31
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 452
Re: condo hotels

Let's see.... 825 X 600 = $495,000 minimum price for a 600 sq ft condo.
A person would have to have their head examined if they fell for that deal !
__________________
renferme is offline   Reply With Quote
Re: condo hotels
Old 06-20-2005, 03:08 PM   #32
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: condo hotels

Quote:
Originally Posted by bennevis
Let's see.... 825 X 600 = $495,000 minimum price for a 600 sq ft condo.
A person would have to have their head examined if they fell for that deal !
The buyers' rationale is that they can get a place on the beach with lots of amenities, fly in on a number of weekends and use it themselves, and when they are not using it, the room is rented as a hotel room by a professional hotel manager. They say why buy a cabin for the same amount in upstate New York, which won't have any cash flow, when they can buy a hotel unit on the beach and actually get some money out of it when it is not being used.

Not something a midwesterner would buy.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: condo hotels
Old 06-20-2005, 03:44 PM   #33
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 452
Re: condo hotels

Is it like a timeshare, where the owner has to pay some ridiculous yearly fee for "maintenance" ? And what could someone expect to net out of having a hotel manager rent the unit on a daily basis when the owner is not using it ?
__________________
renferme is offline   Reply With Quote
Re: condo hotels
Old 06-20-2005, 08:46 PM   #34
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: condo hotels

Quote:
Originally Posted by Martha
... and when they are not using it, the room is rented as a hotel room by a professional hotel manager.
Dumb question, but how do you know how often the room has been rented out? And how do you verify that additional rents haven't been collected under the table?
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: condo hotels
Old 06-21-2005, 08:04 AM   #35
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: condo hotels

Nords, I don't know the answer to your question ( though I guess it is the mangement company's problem) but it doesn't really matter to the investment analysis. We buy the project, the condo conversion is completed, the condos are sold, the amenities are sold and the managment contract is sold. Nothing is left and the goal is for all to be sold in a matter of months.

Bennevis, it isn't like a timeshare because you own the entire unit. It is yours. You can join the hotel rental pool and have your room rented out as a hotel room to make some money. Still looking at how the condo fees work.

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: condo hotels
Old 06-21-2005, 08:45 AM   #36
Thinks s/he gets paid by the post
greg's Avatar
 
Join Date: Jun 2005
Posts: 1,071
Re: condo hotels

[quote Nothing is left


Hey, DW, if there's nothing left, why are we doing it?
__________________
Compounding: Never forget! Never not remember!
greg is offline   Reply With Quote
Re: condo hotels
Old 06-21-2005, 08:47 AM   #37
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: condo hotels

All that is left is the money in our pocket.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: condo hotels
Old 06-21-2005, 08:49 AM   #38
Thinks s/he gets paid by the post
greg's Avatar
 
Join Date: Jun 2005
Posts: 1,071
Re: condo hotels

Thanks, now I get it.
__________________
Compounding: Never forget! Never not remember!
greg is offline   Reply With Quote
Re: condo hotels
Old 06-21-2005, 08:51 AM   #39
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: condo hotels

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: condo hotels
Old 06-21-2005, 08:53 AM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: condo hotels

Hey, you two get a room!
__________________

__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Questions on Selling FSBO condo in Northern CA free4now FIRE and Money 59 02-27-2007 03:03 PM
Condo conundrum Mr._johngalt Other topics 3 10-12-2006 12:26 PM
Hotels and noise!!! newguy88 Other topics 23 09-25-2006 03:48 PM
Condo conundrum MRGALT2U Life after FIRE 4 02-04-2006 10:19 AM
rent or buy condo for business jakester Young Dreamers 2 07-11-2005 12:34 AM

 

 
All times are GMT -6. The time now is 06:51 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.