Our objective is to provide you, the commercial or residential condo resort buyer with an unbiased data and the right tools to evaluate the options available to capitalize on your real estate investments. We are committed to presenting you with investment options that offer the right options to make your transaction a success.

Luxury Condo Resort investing, like any type of investments is not right for everyone. The purpose of our services is to provide you with the right tools to evaluate the risks, rewards and to make your own personal determination of your own individual sustainability.

There are several reasons why an investor would consider investing in one or more condominium units, not the least of which is pride of ownership and in some cases, occasional personal use. However, in most cases the primary objective of the condo resort investor, as is typically speaking about most luxury resort property investors, is long term equity growth and positive cash flow.

In fast growing markets, luxury properties can generate large capital gains in very short periods of time. If a property is a new development as oppose to resale of an existing unit, holding on to your property could present several advantages to the investor, as long as there is a reasonable exit strategy in place. Many International Condo Resorts offer a rental income guarantee. The rental income guarantee means that the investor is guaranteed to receive a certain percentage of the unit price per year for many years, when the purchaser enrolls in the rental program. In this case, the management company will take care of most of the expenses associated with the unit and the resort.

There are many factors driving the condo resort market. A growing population here in the United States, for example, including the large and affluent “Baby Boomers” generation and their successors, who have waited to marry and start families for financial or social considerations, are shifting their sites from a suburban life-style to a more metropolitan life-style. Many, who purchase condo resort units, purchase with the knowledge that their investments will be paid off by the time they are ready to retire. For the purpose of establishing our initial conversation, let me point out a few basic tenets associated with investing in condo resort developments:

• Market Considerations – First and most important question when considering any type of real estate product is whether the demand in the market place is sufficient to absorb the proposed new inventory.

• Property Considerations –It is usually the biggest mistake most investors make when purchasing investment properties, is to look at the property as if they were the occupant. Most investors would not like to live in their rental properties and yet it is the single most important consideration made to develop a personal feel than it is to analyze if the property offers a rental income and if it is well positioned against competitors in the area.

• Financial Considerations – The borrowing power if each individual will investor will depend on his/her credit worthiness, credit scores and available credit of lines with can be used for down payments. These are some of the questions you should be asking your real estate broker regarding the development: What types of loans are available to me?; How much money is needed and by when?; Is there an escrow account?; Is there a rental income guarantee?

• Cash Flow investing X Equity investing – Luxury properties are generally more suitable for investors pursuing equity because it gives them the additional benefit of using the property for personal use. Most condo resort developments have a range of investment options to attract different type of investors. If the property is held for the production of income, determining if it yields a positive cash flow can be answered by most real estate agents. It also may hold additional tax advantages related to managing and maintaining the property. Most investors don’t like to touch anything than less than a 10% capitalization rate. However, having an exit strategy in place and depending on each individual situation, this rate may vary.

• Entrance and Exit Strategies – The two best times to acquire new development property are either early in the development or at the very end. The early approach capitalizes on the builder’s motivation to get some sales early for construction financing considerations. On the other hand, buying from a developer at the end of a project leverages the developer’s financing to finish up and move on. With pre-construction investing, and luxury condos in particular, exit strategies and timing will be heavily influence by what the market conditions at the time of completion are actually like when the product is delivered and how long you might be required to hold on to it before you can exit.

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