Condo Hotels can be a very profitable piece of real estate. Especially in busy and industrious areas such as New York, this type of property can produce some extremely lucrative financial results in the long-term. It is important to ensure that a condo hotel stands out and has a unique appeal given the large amount of rental property that is available in large cities.
This can sometimes seem to be easier said than done. Condo hotels require a large amount of upkeep, utilities, and staffing in order to function properly. Given these expenses and the fact that these types of establishments are often slow to start up, finding financing for condo hotels can be difficult. This is especially true in bigger cities where a number of well-financed and popular condo hotels already exist.
A number of factors can influence an investor’s decision when it comes to getting involved in this type of real estate. Some of these factors include:
- The History: A piece of property with a history attached to it can have good (or bad) PR in the surrounding area. This can greatly influence the success or failure of any future establishment on said property, and can thus affect a financier’s decision.
- The Location: While it may seem like an obvious factor, many underestimate the degree to which location can influence a potential financier. This also includes how many competitors are near the establishment. In a large city such as New York, this is a very important aspect.
- Size and Layout: In this type of property, the size and layout of each individual unit can greatly affect the organization’s chance of success. Those who are considering financing this type of property will undoubtedly be interested in such factors
Finding financing options for a condo hotel is often dependent on helping financiers understand the property and the potential for long-term financial benefits. Utilizing a proper program based on research and industry standards is key for convincing financiers to become involved in such a project. For more information on financing for condo hotels, contact the experts at Starr Mortgage Company!