So you’re interested in entering the world of property management? Have you thought about how you’re going to get into this potentially lucrative market? Let’s face it; unless you’ve just inherited a large sum of money or are otherwise independently wealthy you’re going to have to borrow. This is where apartment financing comes in.

Before you go down to the local bank or investment company, it might be a good idea to ask yourself how long you expect to own the apartment building or complex. Is this a long-term investment? The answer to this question can significantly impact the type apartment financing you should get.

If you are planning on owning the property for a couple of years or less, most experts agree that an adjustable rate mortgage (ARM) will be your best method of apartment financing. Like the name suggests, an ARM is a loan will an interest rate that may change with time in accordance with an index. ARMs will usually offer a better initial interest rate than other loans in order to offset the risk of future interest rate fluctuations. Moreover, the mortgage holder is
also protected by a maximum interest rate, or ceiling, that may be reset every year.
Individuals planning to stay in the property management business for the long term may want to look into a fixed rate mortgage. A fixed rate loan will guarantee
the same interest rate over the life of the mortgage.

If interest rates are historically low at the time you receive the loan, this type of loan will lock you in at the best possible rate. On the other hand, if interest rates are historically high at the time of the loan, you could be stuck paying higher interest than you would have with another method of apartment
financing.

Another important question you may want to think about before seeking an apartment financing source is the estimated cost of the property. This may seem like a fairly obvious question to consider when looking for a loan, but far too many first-time investors just take the interest rates they’re given without question. If the property you’re interested in is selling for over $500,000, a direct lending source or investment company can give you a better interest rate than most banks or credit unions. However, if you’re looking at a smaller apartment
building selling for under 500k you may want to see what your local bank can offer you.

With both banks and other lending institutions eager to provide apartment financing,
new options have emerged in recent years. Generally smaller banks and other lending sources like direct lenders have a greater degree of flexibility in their loan-offering lineup. In an effort to attract more borrowers, many of these lenders are now offering either non-recourse or partial-recourse loans.

The traditional recourse loan offered by most institutions meant that the lender could have claim on the personal or corporate assets in the event of the default of the mortgage holder. A on-recourse loan on the other hand means the lender cannot hold you personally liable if you fail to repay the debt as promised.
The only recourse of the lender is to take the property you’ve pledged as security for your loan, but he cannot claim any other assets or money from you if you default.

If you plan to build the apartment building instead of buying it, some lenders
may offer you a partial recourse construction loan. This means that until work is finished on the project, the borrower is responsible for the entire amount of the construction loan. However, as soon as the project is ready for occupancy and the apartment building has some value for the lender to seize, the borrower is responsible for only 50% or less of the value of the construction loan in the event of a default.

Whatever method you choose to provide apartment financing, it is important
to make sure you understand all the details. Choose a lender that has both the experience and desire to sit down with you and take the time to answer your questions clearly. The right lender will go a long way in helping you find success in the exciting world of property investing and management.

About the Author

Cameron Brown is an internet marketer specializing in http://www.10xmarketing.com/res/ranking-automation.asp. For information on http://www.sncloans.com/aptfinlndpg.html, visit http://www.sncloans.com.

Apartment Financing Explained

Renting to tenants is no longer "where the money is" for real estate investing. I became a multi-millionaire landlord in the 1980s by buying $10 million in rental houses. Yet, I consider this real estate investing approach the biggest mistake in my real estate investing career. I call it my "$10 Million Mistake."

Back then, real estate investing in rentals was buying a house, renting it to tenants for a rental fee that covered the mortgage, and waiting for an increase in value. Interest rates were as high as 25%. Inflation was rampant. You could buy a house, and it would almost double in value in 10 or so years.

Boy, have things changed in real estate investing! Interest rates have recently been the lowest in 46 years. Inflation is flat. The same rental house in some areas is appraising for less today than it appraised three years ago. The major profit to real estate investing in rentals is the pay-down of the mortgage by the tenant. Otherwise, profit comes from the difference between the rental fee and the mortgage payment.

One month vacancy per year, which is not uncommon, might convert into an annual investment loss, even if (1) tenants don’t leave owing rent, (2) the property is not damaged, or (3) repair cost is negligible. All of these possibilities are very unlikely.

One month vacancy per year can eliminate usage profit for the year. Spend your time on fix up repairs, even part time, and you go more in the hole. How much you lose depends on how much your time is worth.

Real estate investing is intended to be profitable. Vacancies, repairs, and time expenditure might mean you are only making a donation to the great cause of improving the nation’s housing. The scenario changes if the mortgage is negligible and note payments are significantly less than rents. But the beginning investor does not often create this situation.

Fixing up properties for resale is a better venue for real estate investing today. Go a step beyond the norm, and learn how to help a renter get financing for your fixed up house. Go another step by converting a junker into a "Dream House," and you will attract prospects to your property like bees to honey. Turning a "Plain Jane" into a "Doll House" demands extra work, but attracts better quality buyers. Real estate investing is extremely profitable, but your choice of real estate investing venue is critical to optimal profitability.

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" – http://www.AAREIT.com/.

Real Estate Investing in Rentals ? the $10 Million Real Estate Investing Mistake

Not Your Typical Vacation Home

What could be more perfect that owning a luxury vacation home at a landmark resort and receiving rent revenue whenever you’re not using it? Condo hotels are the newest trend in vacation home ownership. Live in it when you’re there; rent it when you’re not.

So how do condo hotels differ from owning a traditional vacation apartment or condominium? These are not your typical second homes. They are fabulously-furnished condominium suites in some of the most famous hotels and resorts around the country. The properties are usually large, high-rise, luxury hotels operated by a big name like Four Seasons, Ritz Carlton, Sonesta, Starwood or Hilton. Prices range from $200,000 to over $1 million for prime properties.

Generate Revenue to Defray Mortgage Costs

How do condo hotel owners find renters? This is what makes the program so appealing. When owners are not using their unit, it is put into the rental program of the hotel. By capitalizing on a hotel’s name recognition, advertising, national affiliations, centralized reservation system and management expertise, unit owners typically receive a higher level of rental income than they would from a traditional vacation home. Plus the hotel takes care of dealing with the renters, as well as all housekeeping and maintenance of the condo hotel units. Talk about hassle-free!

The Real Appeal of Condo Hotels Is Appreciation

While it’s nice to receive rental revenue on your vacation home, the more important factor from an investment standpoint is its appreciation. Condo hotel units have been appreciating at a far faster rate than single family homes and condos in the same areas.

Most condo hotels are purchased directly from the developer. With limited inventory, condo hotel units have been moving at lightning speed. In fact, almost all condo hotels sell out in pre-construction, long before even a single spade of dirt has been overturned. And as is the case in any situation where supply is greatly outpaced by demand, condo hotel owners have been seeing tremendous appreciation in their units.

World-Famous Resorts Attract International Attention

Most condo hotels are located in seasonal resort areas. South Florida, particularly Miami Beach and Ft. Lauderdale, is one of the country’s hottest markets with world-famous properties like the Fontainbleau, Canyon Ranch Living and Trump International leading the way. Las Vegas and some of the Caribbean Islands are also popular condo hotel destinations.

Who’s buying? The answer, in a nutshell, is everyone. That is, investors and vacationers who recognize the appreciation potential of a revenue-generating vacation home. That appeal isn’t limited to U.S. buyers. The concept of condo hotels has had international appeal with buyers from Latin America and Europe competing with Americans for the best properties.

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Learn More About Condo Hotels

Condo hotels have tremendous investment appeal in today’s market because of low interest rates and a tumultuous stock market that has investors looking for safer alternatives. Investors who take the condo hotel plunge can enjoy all the amenities of vacationing in a first-class resort while watching their units appreciate exponentially.

For more information on condo hotels including listings of available properties, visit http://www.condohotelcenter.com.

Joel Greene is the President of Condo Hotel Center located in Miami Florida, which specializes in the sale of condo hotels. Visit his information-packed web site, http://www.condohotelcenter.com., for more on condo hotels and to see condo hotel listings, photos and prices. You can also sign up for his free Property Alert newsletter to be notified when new properties come on the market.

Condo Hotels Offer Luxury and Great Investment Potential

Condo hotels are one of the hottest products in today’s real estate market. New properties are cropping up in different parts of the country and new buyers are entering the market daily. Things have been moving so quickly in terms of condo hotels, but sometimes it’s worth taking a moment to step back and look at the big picture.

Condo Hotels In General: There is a spreading enthusiasm about the condo hotel concept. More people are recognizing its potential and therefore creating demand for more inventory.

Condo Hotel Buyers: The average buyer is 35-50 years old. Buyers for Florida properties, where condo hotels are most prevalent, come from all over the U.S. On the international front, most foreign buyers interested in U.S. property are from South America and Europe.

The vast majority of buyers want condo hotel units primarily as investments and are focused on the potential for appreciation with the side benefit of hassle-free ownership. They see the ability to actually use their condo hotel unit as a vacation home as important but secondary to their goal of investment diversification.

Condo Hotel Market: Virtually every single property that has come on the market to date has sold out in pre-construction. Most of these properties are mega high-rise buildings with on average 200-500 units, and with some in excess of 1,000 units.

The speed with which these properties sell out is often as surprising to buyers as it is to the developers themselves. For example, the MGM Grand in Las Vegas, a 576-unit condo hotel, was expected to sell out in two years. It sold out in two months! The Platinum, a 255-unit property in Las Vegas, also sold out in just a matter of a couple months.

Hot Areas: South Florida continues to be an extremely popular area and one that has shown strong and steady appreciation. As already mentioned, the condo hotel trend which began in South Florida has now spread out west. Las Vegas is leading the pack with many new condo and condo hotel developments in all price ranges being built.

Growth in Florida: Looking at South Florida, it’s easy to see what is happening. Miami Beach, the hottest area, is all built up. There just isn’t any undeveloped land. That’s causing a couple of things to happen. Developers are heading to the northern end of Miami Beach (North Beach) and areas still further north such as to Sunny Isles and Ft. Lauderdale.

A new trend is developers buying existing structures in Miami Beach and either upgrading them, as in the case of The Mimosa which was the former Brazil Motel, or knocking them down and starting over, as in the case of One Bal Harbour in which a multi-family, high-rise building (Harbour House) was demolished and a five-star condo hotel built in its place.

Finally, some properties are beginning to crop up inland. These condo hotels may not have oceanfront views; however, they’re within a few short blocks of a beach. Because they’re not on the ocean, these properties tend to be priced more economically.

Properties: The most popular properties continue to be those with a franchise name, one that brings a reputation for four- to five-star quality or a name that is already well-known. A prime example is Canyon Ranch Living in Miami Beach. People recognize the Canyon Ranch name and feel confident that this property will be of the same five-star caliber as its Arizona counterpart. Of course, it doesn’t hurt that this property will have a 60,000 sq. ft. rooftop spa and fitness center.

The Selling Process: A lot of properties take reservations of more than half the total project long before they’ve even prepared their purchase contracts. This means that many of the best units are reserved months before any money changes hands and often before even the first spade of ground has been turned over. Those early investors are seeing some amazing appreciation on their investments.

Prices: Like anything for which there is more demand than supply, prices keep going up, up, up. Developers often raise their prices 3-5 times from when they start selling until they sell out.

Developers are no longer discounting prices at the beginning of the selling process when they are anxious to get a few sales under their belt. This used to be common practice; it is no more because demand is so great.

There are sometimes, however, some price adjustments made at the very tail end of the sellout phase when developers want to close out their property and move on to their next project. Generally speaking, with regard to price, the best time to get in is usually early on in the first pre-construction offering.

Quality: Most condo hotels being built are of four- to five-star quality. The reason is two-fold: 1) There is demand for the types of services provided by four- and five-star properties, and 2) Oceanfront land is so costly that it makes more sense for the developer to put in a luxury property with units that he can sell at a premium price rather than lower priced units.

Financing: It’s getting a little easier to get condo hotel financing. There was a time when most banks and mortgage companies weren’t even familiar with the term condo hotels. They now know it and also recognize the viability of these properties. They are more accommodating in expediting these loans.

Contracts: Contracts that allow assignability have become rare. In the past, at some properties buyers could place a deposit on a unit in the pre-construction phase and then flip their unit prior to when they had to close. Developers now want to be sure that they don’t compete to sell their last few units with investors who purchased early at pre-construction prices and are now re-selling them at below the developer’s current prices.

Resales: Some condo hotel unit resales come on the market. Of course, this is to be expected. Some of the earliest buyers now want to move on to something or somewhere else. However, the resale market is still relatively small, and it’s hard to find a bargain.

Advice to New Buyers: How can buyers choose a condo hotel unit that will be a good investment? It’s best if they can work with a real estate broker who specializes in condo hotels and can make them aware of all products on the market. Aside from that, they should look for the following elements:

Location: Real estate is all about location. Beachfront properties in South Florida have done exceptionally well in recent years. Their appreciation has been significant. If you prefer a property that is not on the ocean, it’s a good idea to select one in an area where you can expect to have business driven to your property, such as near a major convention center or in Downtown Miami near the financial district.

Franchise: It’s always safest to go with a major company, well-known internationally. Four Seasons, Hilton, Starwood, Rosewood, Setai and Trump are excellent examples. Ask yourself, would you likely stay in a Holiday Inn for $69 or the independent hotel across the street for $62? Many investors or hotel guests will pay a little more for the comfort level they get with a well-known, well-respected franchise.

Management Company: Compare the management companies and their rental sharing program. You will likely feel more comfortable investing your money in a condo hotel with an experienced, top-notch management company vs. an independent operator. Also, it’s worth noting that an established management company does worldwide marketing and likely has a state-of-the-art reservation system that will help ensure your unit is rented as much as possible.

For more information on condo hotels including listings of available properties, visit http://www.condohotelcenter.com.

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Joel Greene is the President of Condo Hotel Center located in Miami Florida, which specializes in the sale of condo hotels. Visit his information-packed web site, http://www.condohotelcenter.com., for more on condo hotels and to see condo hotel listings, photos and prices. You can also sign up for his free Property Alert newsletter to be notified when new properties come on the market.

Condo Hotel Trends – A Look at the Big Picture in Vacation Home Ownership

Here is a step by step guide for buyers looking to buy a condo in any area. These are important tactics to make a solid and accurate judgement on the property you’re looking to purchase.

- When purchasing a condominium make sure that you ask for the last three to six months of the condominium minutes. This infomation will provide you with alot of insight into what is happening in the building.

- Obtain a copy of the Declaration, the bylaws, and any rules and regulations from the Condo Association.

- To make sure you are buying into a financially sound building, it is also advisable to find out if the building has any outstanding loans with a bank. Some buildings may take out loans instead of doing a special assessment as a way of doing major work such as new elevators or the exterior facade of the building.

- Make sure you obtain a statement from the Condo Association of any capital expenditures anticapted by the Board within the current or succeeding two fiscal years.

- Find out from the Condo Association if there are any pending suits or judgements in which the Board is a party.

- If the building is newer, find out if the parking is deeded or assigned and whether you can sell it to a purchaser outside the building .Also, make sure you see the exact location of the garage spot before you write a contract to purchase the property.

- Buildings with substantial reserves and lower assessments tend to appreciate at a faster rate than other buildings in a similiar location. Keep in mind that assessments are based on how many amenities are in the building.

- Resale in six flats tend to have better resale value than three flats. The rationale is that a six flat unit is a wider unit since it is constructed on a 50 x 125 foot lot.

- The more horizontal a unit is the more apt it will have better resale value. Vertical units tend to have more hallways and typically do not have split bedrooms.

- The higher the ceilings in a unit the larger the unit will feel. Most people typically prefer 9 foot ceilings or higher hence the height of the ceilings will usually effect resale.

About The Author

Sheldon Salnick is a Realtor with Rubloff Residential Properties. He has worked with new construction buyers for the last 13 years and has represented over $200 million in new construction. For more information or guidance in the purchase of a new construction home, townhome or condominium please visit http://www.SheldonChicago.com” target=”_new.

info @ SheldonChicago .com

Important Information For Condo Buyers

I teach students how to set up a new business name on paper and then move their personal debt into the business name.

This will dramatically improve your personal credit score and help you make money as a real estate investor.

It’s as simple as using my system to set up a new business name and then use my list of companies that offer new business lines of credit.

Then when you start receiving these business credit cards and lines of credit you can transfer a personal credit card balance onto your new business card. And make that debt you owe disappear from your credit report!

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Of course you will still have to repay it. But the power of this technique is that your credit score will go up when this personal debt gets transferred out of your name and into the name of a new business.

And you will keep your personal credit score high when you continue to go out and get business lines of credit to use for your real estate investing activities.

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Setting up new business lines of credit is the most important thing you can do to PROTECT yourself as a real estate investor.

Because these business credit cards and lines of credit allow you to draw cash from them to keep as a reserve when you are buying, rehabbing, or just holding rental property.

You MUST make sure you keep adequate cash reserves for the unexpected issues that ALWAYS come up when you own real estate.

And the best way to get cash reserves without using all your own personal money is to follow my program -

HOW TO BEAT THE SYSTEM in real estate investing.

I can show you how to quickly get a new business line of credit no matter what your credit score is.

And this new business line of credit gives you cash for anything you’re doing in your real estate investing activities.

See how to get $20,000 cash for real estate investing, NO QUESTIONS ASKED. This program helps all my students get a new business line of credit regardless of their personal credit score.

And this program also teaches you exactly how to find the BEST FORECLOSURE DEALS.

The program is called HOW TO BEAT THE SYSTEM in real estate investing. And it includes -

1. Unlimited free live tele-coaching.

2. A money system to get business credit.

3. A foreclosure system to have someone else find you the best deals.

4. Software that will analyze your deals.

5. Bonus material with insider secrets on what to look for in a profitable deal.

Sincerely, Thomas Kish
President of CashFlowExperts.Biz

Tom is a full time real estate investor. He has purchased and sold over 5 million dollars worth of real estate in less than 2 years.

Tom is an expert in using new business lines of credit instead of cash to buy real estate. There is no one else teaching anything like this SYSTEM of real estate investing!

Check us out at: http://cashflowexperts.biz/cmd.asp?ad=137545

Personal Debt Can Disappear When You Set up a New Business

There are many frequently asked questions and any local real estate area. In our area here at the local Delaware Beaches, the most frequently asked questions are how to get a good deal and if there are any fixer-uppers available.

We are constantly asked if there any good deals available. The ironic part of this is the person who asked that would not have enough data or awareness or knowledge or information to know if a property is a good deal or not. In our area fixer-uppers are seldom good deal. Frequently the land value of real estate here is 75 to 100% of the price of the property.

We have a cute little cottage for sale now in the second block from the ocean for $1 million, and the land is worth $1 million. Ten miles west of the beach we have a home for sale a large lot for $180,000. The lot is worth $200,000. However, the house needs to be torn down, so we have reduced the price of a lot by the amount you will take to remove the house. Is either one of these homes, a good deal? No! In each case, the land is a good deal. In the first case, the home is worth zero and in the second case, the home is a liability.

Another question, I am asked us if we are buying at the top of the market now. I have been asked that question for 35 years, and I have heard it asked for 30 years before that. When I first heard the question, beach lots were selling for $25 that are now going for $1 million or more. Every year, there have been people who think the market has topped out, and they will wait and get a better purchase price.

My answer to the question of whether the market will go down or not is that it will not go down. And if you want a good deal the best deal is to buy now before the price goes up, because it will continue to go up, as it has in the past.
Copyright 2005 by Jody Hudson http://www.JodyHudson.com and http://www.Kate-Jody.com

Jody Hudson has been a realtor in America and Delaware for 35 years.

Real Estate Local FAQs.

Condo-hotels have evolved as a better, more reliable second home alternative to time-shares. They are usually attractive, high-rise hotels on the ocean or in other prime locations, and range in price from the mid $200,000s to over 1 million, depending on the size, location, and amenities.

Many of the biggest names in the hotel industry have condo-hotel buildings, including Hilton, Four Seasons, Clarion, and Ritz-Carlton. Donald Trump has numerous condo- hotel facilities across the country, including a building in Fort Lauderdale and another in Sunny Isles, Florida.

In general, condo-hotel properties have been highly successful with all or nearly all units selling out within months of the first offering. For example, the Ritz-Carlton Key Biscayne is a beachfront property with 188 condo-hotel units, all of which sold out a year before the building was even finished. Needless to say, the values of the condo-hotels in this building have gone up significantly.

There are several reasons for the popularity of condo-hotels. When you purchase a property, you purchase a condo unit in the hotel. Unlike a time share, you have access to the property whenever you want, and it is put into a rental pool when you are not in residence. Although developers can’t guarantee the properties will rent, management by a well-known hospitality group will typically result in several weeks of rental income. This is one of the biggest appeals of condo-hotels because the rental income can offset some of the costs of owning a vacation property.

In addition, the management company takes care of renting the unit, using their connections and expertise. You don’t have to worry about any of these details. Most rental agreements split the income 50/50 between the management company and the owner. However, some properties offer more favorable arrangements, and this is another aspect to consider when deciding which property to purchase.

Despite the fact that the property is in a hotel setting, a condo-hotel is considered a private residence, and owners are eligible for mortgage interest deductions and all the other tax advantages that come from owning a second home. However, most condo-hotels do not allow you to live in the unit year round. This is because the management company wants to rent out the unit when you are not there, so both you and they can profit from that rental income.

Each condo-hotel property has its own residence restrictions that indicate the maximum amount of time you can live in the property. This is an important piece of information to consider before purchasing a condo-hotel unit. Most owners do not intend to live in their condo year round, so this is not a concern in typical circumstances.

Why not just rent a hotel room? In addition to the investment aspect, condo-hotels usually offer more room than a standard hotel room. Most suites are one or two bedrooms, and larger units are available. Condo-hotels typically have cooking facilities and other homey features that hotel rooms do not. This makes it ideal to have family stay with you when they come to visit.

With the advantages they offer over time shares, it’s easy to see why so many people looking for a vacation property investment they can also enjoy when they want are now looking at condo-hotels.

For more on finding and buying the right condo-hotel, check out Make Your Next Home a Resort, the 2005 Guide to Condo-Hotels, Fractional Shares and Resort Residences. You can download the Guide as a pdf file at http://www.InvestingIN.com/realestate/resorts/resort4u.htm

Leon Altman is the founder of the InvestingIN Real Estate Letter – http://www.InvestingIN.com/realestate/LtrSignup3.htm- and its parent website, http://www.InvestingIN.com – a website that provides articles and newsletters about opportunities in different areas.

Condo-Hotels ? A New Second-Home Alternative to Time Shares