Posted by David Krulac on June 18, 2005 at 07:43:03:
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Condo Tel - Posted by Wade
Posted by Wade on June 16, 2005 at 14:24:19:
Can someone please explain what the term “Condo Tel” means? I am looking at purchasing a couple of vacation condos, and one of lender’s I have spoken with mentioned that if the condos have “Nightly Rents” or a Front Desk that it would be considered a “Condo Tel”, making it much more difficult to finance.
Any ideas?
Re: Condo Tel - Posted by Jason (SC)
Posted by Jason (SC) on June 16, 2005 at 18:07:28:
I mostly deal with condo-tels. They are mostly in resort area. The basic idea is it is a building that operates the same as a hotel but each unit is individually owned.
The banks are starting to close up some to these types of properties. They have recently tighten on the ratios of investors to primary/secondary home owners allowed in a building and LTVs are going down also.
Generally they have a reservation desk, a maid service and useually they are high rises. Most banks are requiring it to have been converted atleast 2 years if it was a conversion project. A few banks I know of want the resort to be less than 10 acres total. The list continues on depending on what bank you go to and what property it is.
And if you are buying one try to get one that is at least 500-550 sq ft. It will make life and financing a lot easier
Jason
Re: Condo Tel - Posted by Dave T
Posted by Dave T on June 16, 2005 at 18:06:40:
CONDOTEL is a blended word for condominium hotel. A condominium hotel project that has rental and reservation desks, short-term occupancy, food and telephone services, and daily cleaning services; and, is operated as a commercial hotel even though the complex is owned by a small number of people.
My local bank will not lend on Condotel properties.
Hotels, Motels, Condo-tels… - Posted by Cletus
Posted by Cletus on June 16, 2005 at 15:31:52:
See what your lender says when you tell them you want to rent it out by the hour…
:oO
Re: Condo Tel - Posted by ski
Posted by ski on June 16, 2005 at 20:10:41:
Do you know what the word “HO” means??? Just kidding.