Buying a Condo-Hotel in Daytona Beach

It was Monday November 2. My telephone rang. Showing a Canadian number. The gentleman introduced himself and told me he read my blogs. Could I show them condo-hotel properties?

Of course.

We meet in our office. They pretty much know what they are looking for, but they are open to suggestions. They have a lot of questions, they want to know pros and cons of owning a condo-hotel.

Instead of steering them in one direction (You want condo-hotels? Here's what you should buy), I am trying to make sure this is what they will be happy with in couple of years. I am not the first agent they met. They went to someone else, and most probably met more than one agent. They are not complaining, but I can feel that they are a bit frustrated. They are going to spend money and they want to spend it wisely. The agents tried to sell them without educating them. They want a fair deal, but being from Canada, they are not sure what a good deal is. They need guidance.

There are many sides to owning a condo-hotel. I can't simply say that this one is the ultimate best. It depends. I can't make it simple. And they quickly learn the issues.

There are no ideal condo-hotels in the area. Whether it is physical condition, or rental situation, or a divided Board of Directors (or even worse - a misguided Board), there is always something which is affecting the resort now, or may affect it in the future.
I am human, and I avoid some properties, and sometimes it is more of a gut feeling rather than real numbers or real facts behind. But doing it for years, I have developed this 6th sense, that tells me that with everything else equal, stick to this resort and pass on the other.

Sometimes I can only rely on instincts. I often catch myself on saying things today that are different from what I was saying 5 years ago. A lot of things happened, even those that we could not have imagined happening before.

Until 2004 the question "What would happen if a destructive hurricane comes?" was more from the science fiction. But August 2004 has changed it. Before 2004 I would say that there was unlikely the way that a condo-hotel association could be terminated, but we have seen it in 2005. Are we getting smarter? Maybe simply more experienced...

When I tell people about the potential or existing problems, two things happen. They either say that this is not for them, or they get into it with the understanding of the issues. Both scenarios are OK. The problem with condo-hotel is that people have wrong expectations and do not really know what they are getting into.

Therefore, my goal is to give realistic expectations. Constant questions and answers while we are touring the properties. Condo-hotels one day, residential condos another. After which they say "Thank you. We will let you know if we decide to go ahead with any of the properties".

And this is OK. Because this is their money, and they have all the rights to get scared, to decide to wait, or simply get in the car and go to St, Augustine or Jacksonville. They are buying a vacation property, and it can be where there is warm climate, nice sandy beach, and warm Ocean. Which is anywhere in Florida.

They called me next morning. Could I arrange showing of that unit in Ocean Walk again? And could I bring the draft of the offer with me?

It is a short sale. I called the agent as I always do. It gives me the indication whether my clients would waste time, or have a pretty good chance of closing. Sounds like she knows what she is doing. Yes, she would agree to small things that we wanted.

We looked at the unit again, met with owner's liaison, asked her questions, got the rental agreement, and now we have the offer accepted by the Seller, signed and taken off Active on MLS.

Now it is a waiting game for me and my clients. Meanwhile they are talking to their attorney and their tax man to make sure they are structuring the deal the right way. Don't forget, they are Canadians, and besides FIRPTA, I really can't help them with that. But we have time.

They told me that I helped them understand the issues, and they are thankful for that. And I am thankful that they were able to process all the information I was giving them, and, believe me, there was a lot. I give more than they would have expected. Because my goal is to have happy customers, not just customers.

if you want to call me, here's the number: 386-405-4408. Tell me you read it on Active Rain. And stay warm.