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yelenahorton · 8 months ago
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Sell Smarter Not Harder: You’re Pro Guide to Home Sales!
Welcome to 'Sell Smarter, Not Harder: You’re Pro Guide to Home Sales! Your Pro Guide to Home Sales!' In this comprehensive video, we delve into expert strategies and techniques to help you maximize your home sales potential. From staging tips to negotiation tactics, we cover everything you need to know to succeed in the competitive real estate market.
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Yelena Horton | Global Real Estate Advisor
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sralasvegas · 1 year ago
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Real Estate Agent Broker in North Las Vegas
Find Your Dream Property in North Las Vegas! We are your trusted real estate agent broker in North Las Vegas and are here to assist. With our in-depth knowledge of the local market, we'll help you discover the perfect home or investment property. From luxury estates to cozy condos, we have a diverse listing portfolio. Start your real estate journey with us today.
Call: 7028053008
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remaxlasvegas · 10 months ago
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Amargosa Valley NV Properties
Amargosa Valley NV properties is a small town located in Nye County, Nevada, about 100 miles northwest of Las Vegas. The area is known for its natural beauty, with the Amargosa Desert and the Amargosa River running through the area, and for its proximity to the Ash Meadows National Wildlife Refuge and the Death Valley National Park.
Rural NV Properties
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Amargosa Valley NV Properties offers a diverse range of homes and properties to cater to various needs and preferences. Whether you're looking for a cozy single-family home or a spacious estate, the options available in Amargosa Valley NV Properties are sure to meet your requirements. With a buyer-friendly housing market and a favorable climate, Amargosa Valley presents an enticing opportunity for real estate investment. We will explore the different property types, delve into the housing market trends, highlight the amenities and facilities, and identify the best neighborhoods in Amargosa Valley. We will provide valuable tips for buying property in this promising region. Let's dive into the world of Amargosa Valley NV Properties and discover the exciting possibilities that await.
Available Property Types
The diverse range of available property types in Amargosa Valley, NV caters to a variety of preferences and budgets, offering options such as single-family homes, condos/townhomes, luxury apartments, and large acreage properties. These properties provide ample opportunities for individuals and families looking to invest in the Amargosa Valley NV Properties real estate market. Whether someone is looking for a cozy single-family home, a stylish condo or townhome, a luxurious apartment, or a sprawling acreage property, there is something to suit every taste and budget. The real estate listings held by the site owner are marked with detailed descriptions and specifications, making it easy for potential buyers to find the perfect housing option in Amargosa Valley, NV. With a wide range of property types available, Amargosa Valley offers something for everyone in the housing market.
Housing Market Trends
The Amargosa Valley NV properties housing market in NV exhibits noteworthy trends that reflect the current state of real estate in the area. According to data from the Greater Las Vegas Association of Realtors' Internet Data Exchange Program, the median listing home price in Amargosa Valley, NV is $48,000. Houses for sale in the area typically spend an average of 194 days on the market, indicating a slower-paced market.
Amenities and Facilities
Amargosa Valley NV properties offers a wide range of amenities and facilities to cater to the diverse needs of its residents and visitors. In terms of real estate, Amargosa Valley NV Properties provides various options for renting, including apartments, luxury apartments, and townhomes. The area boasts real estate listings with large acreage, ranging from 9.53 acres to 320 acres, offering different preferences to potential buyers. Access to social media platforms allows users to connect with listing brokers and stay updated on available properties. Home sizes in Amargosa Valley vary significantly, from a modest 728 sqft to expansive properties spanning 268.13 acres. With decreasing home prices and a slowdown in market activity, now is an opportune time to explore the amenities and facilities that Amargosa Valley NV Properties has to offer.
Tips for Buying Property in Amargosa Valley
When considering a property purchase in Amargosa Valley, there are several key tips to keep in mind. It is important to do thorough research on the real estate market in the area. This includes understanding the current trends, prices, and availability of houses in Amargosa Valley NV Properties. It is advisable to work with reputable brokerage firms that specialize in the area. These firms have extensive knowledge and experience in the local market and can provide valuable insights and guidance throughout the buying process. Potential buyers should carefully consider their budget and financing options to ensure a smooth transaction. Visiting the property in person and conducting inspections is crucial to ensure that the house in Amargosa Valley meets all requirements and is in good condition.
Frequently Asked Questions
What Is Amargosa Valley Known For? Amargosa Valley NV properties is known for its diverse range of homes and properties, favorable housing market for buyers, and inviting climate with pleasant temperatures throughout the year. It offers something for everyone, making it an attractive destination for residents and tourists. What is the source of the Amargosa River? The Amargosa River proudly claims two sources, depending on who you ask – a surface water one and a hidden, subterranean one. On the surface: The Amargosa's story begins near Beatty, Nevada, at the southern foot of Pahute Mesa. Here, at an elevation of around 3,900 feet, Thirsty Canyon Wash dumps its precious cargo into the thirsty earth, marking the official start of the river's visible journey. From there, it flows southwestward into Oasis Valley, painting streaks of life across the parched desert landscape.
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fr.wikipedia.org Amargosa River source, Pahute Mesa, Nevada Below the surface: But the Amargosa's tale goes deeper. Its true source lies in a vast underground reservoir known as the Carbonate Aquifer. This hidden treasure trove of water stretches across the Mojave Desert, fed by a complex network of springs and seeps. The Amargosa River taps into this aquifer at various points along its course, replenishing its surface flow and sustaining the fragile desert ecosystem. So, there you have it! The Amargosa River, a desert lifeline, draws its lifeblood from both the visible and the unseen, a testament to the intricate dance of water in this arid land.  What is the elevation of Amargosa Valley? Amargosa Valley sits at an elevation of 2,664 feet (805 meters) above sea level. This places it in the lower to moderate range of elevations typically seen in the Mojave Desert, contributing to its characteristic landscape of flat, sandy expanses interrupted by rocky mounds and hills. What county is Amargosa Valley in? Amargosa Valley is located in Nye County, Nevada, although the Amargosa River itself straddles the border between Nevada and California. The vast majority of the valley, including the unincorporated town of Amargosa Valley, falls within Nye County's jurisdiction.
Amargosa Valley NV Properties
The area is relatively rural and is primarily used for farming and ranching.
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As for land and properties, there is a variety of options available in Amargosa Valley, including residential properties, commercial properties, and large plots of land that are ideal for farming or ranching. Prices for land and properties in the area vary depending on the size and location of the property, with some properties costing as low as $50,000 and others going as high as several hundred thousand dollars. It is worth noting that this area is still relatively rural and many properties are not connected to city services such as water, sewage and electricity, so buyers should be prepared to install their own septic systems and wells if they choose to purchase a property in the area.
Nye County NV Properties
There are several reasons why someone might consider purchasing land or property in Amargosa Valley NV properties, Nevada: - Scenic beauty: The Amargosa Valley is known for its natural beauty, with the Amargosa Desert and the Amargosa River running through the area, and for its proximity to the Ash Meadows National Wildlife Refuge and the Death Valley National Park. - Outdoor activities: The area offers a wide range of outdoor activities, such as hiking, camping, fishing, and hunting, making it a great place for outdoor enthusiasts. - Privacy: The area is relatively rural, and many properties are located on large plots of land, providing a sense of privacy and seclusion. - Investment potential: The area is growing in popularity, and as more people discover the beauty and potential of the area, the value of land and properties is likely to increase. - Self-sufficiency: Many people who purchase land in the area are interested in living a more self-sufficient lifestyle, growing their own food, and raising animals. - Affordable: compared to other locations in the state or nearby cities like Las Vegas, the land and properties in Amargosa Valley are relatively affordable. - Natural Resources: The area offers natural resources such as water and minerals, which can be beneficial to those who plan to establish a business or use the land for farming or ranching. Keep in mind that this area is relatively remote and can be isolated in terms of services and access to amenities, so it's important to research the area and make sure it fits your needs before making a purchase. Amargosa Valley NV properties are active in both Clark County and Nye County, Lincoln County. The Amargosa Valley near Pahrump and Death Valley and about 2 hours from Las Vegas. Rural areas real estate services including Amargosa Valley, Beatty, Indian Springs, Las Vegas, Pahrump, Sandy Valley, Searchlight, Alamo, Moapa. Research homes, lots and land for sale in Amargosa Valley, NV including acres of undeveloped land, small residential lots, farm land, commercial lots, and large rural located in 89020 zip code. Amargosa Valley NV Properties Amargosa Valley NV properties offers a diverse range of homes and properties that cater to various needs and preferences. The buyer-friendly housing market in Amargosa Valley presents a promising opportunity for real estate investment. The region's pleasant year-round climate further adds to its appeal for residents and tourists. With a variety of property types available and a range of amenities and facilities, individuals with different requirements can find a suitable option in Amargosa Valley. Top Realtor! When buying Las Vegas homes for sale. Amargosa Valley NV Properties Read the full article
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5mybestarticles · 11 years ago
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Trumped: the multi-million-dollar lawsuit over Toronto’s most controversial new condo-hotel
The Trump tower, downtown’s tallest new condo-hotel, is a monument to excess. And, like its tycoon namesake, it’s surrounded by controversy: 38 investors are suing the hotel for millions. Lessons from a post-crash real estate market
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In the city’s new five-star hotel landscape, the Ritz represents elegant European classicism, the Shangri-La cool, Asian chic, and the Trump unfettered American pomp. Like its loud-mouthed namesake, the Trump is brash, proud and full of bluster. Stock, the hotel’s restaurant and bar, is outfitted with shiny tufted black leather seating and silver accents. Its lobby, a shimmering expanse of marble and mirrors, seems sprung, fully formed, from the imagination of Joan Collins.
The hotel’s developer, Talon International, is run by Val Levitan and Alex Shnaider, two Russian-Canadian entrepreneurs. Levitan made his fortune manufacturing slot machines and creating bank note validation technology, and Shnaider earned his in the post-glasnost steel trade. The Trump is their first Toronto real estate venture. In 2002, during a meeting in Shnaider’s office at Dufferin and Finch, they agreed on a plan to build the city’s biggest, fanciest, five-starriest hotel. They both travel frequently for work and agreed that Toronto’s hotels lacked the quality of the ones they stayed at in London, New York and Moscow. Back then, Toronto’s swankiest option was the old Four Seasons, a dour brutalist tower in Yorkville. But the city was emerging as a major North American financial centre, a place where serious players were coming to do big international deals. These titans were in need of boardrooms in which to meet, bloody steaks to consume, and high-thread-count sheets to sleep between.
In 2004, Talon bought a site at the corner of Bay and Adelaide for $27.4 million. The location was perfect—smack in the centre of the business district. This was before the cultural revitalization of the city’s downtown core, but Levitan and Shnaider could see the signs: the revamping of the Bay’s flagship department store, the plans for the new Bell Lightbox, not to mention a phalanx of condos and restaurants springing up in the city centre. By the time the hotel was completed, it would be the anchor point of a tourist-friendly downtown.
The luxury hotel required a famous brand, which is how the pair ended up approaching Donald Trump. At the time, Trump’s reality show The Apprentice was riding high in the ratings, and the Trump brand was associated with luxury, success and business prowess, not with headline-making Twitter spats and an aborted Republican leadership bid. They worked out a deal to license the Trump name.
They planned a 65-storey mixed-use building consisting of a restaurant and bar, a day spa, 118 condos—some as large as 4,400 square feet and selling for up to $9.1 million—and 261 “condo-hotel suites,” traditional hotel rooms that Talon intended to sell as residential real estate investments. The condo-hotel set-up was unusual in Toronto. It’s an attractive model for developers because it allows them to raise capital up front from investors.
Donald Trump is a shareholder in other Trump developments in Chicago, New York and Las Vegas, but not in Toronto. The hotel would bear his name and his style, and an affiliate of his management company would run the day-to-day hotel service. According to the early marketing brochures, it would be a model for “Manhattan-style luxury living in Toronto.”
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By the time the Trump opened in 2012, ten years after the plan was hatched and more than two years later than originally scheduled, the financial climate had, of course, drastically changed. The hotel now felt like a throwback to a cockier, pre-recession era, back when hedge fund managers ruled the world and Bernie Madoff was a respected financial guru. A group of buyers now regret their investment in the building, and millions of dollars in deals between them and Talon are on the verge of collapsing. The group claims their condo-hotel units often sit empty, and they’ve launched a series of lawsuits alleging the Trump sales team misrepresented how much profit they’d make. The defendants say the lawsuits have no merit, that no misrepresentations were made. The claims have yet to be heard in court.
The Trump investors believed they’d bought into a get-rich-quick scheme. How did something so promising go so wrong?
Before there was the Trump Tower, there was the Trump tower sales office, a glass-fronted box that stood on the same prime corner from which the hotel would eventually rise. A polished young sales team sold a steady stream of units, over the phone, online and in person, to a diverse cross-section of buyers—including elderly Korean pensioners, wealthy Nigerians and a now-defunct U.K. company called WorldWide Properties, which bought four floors of hotel units with the intention of flipping them.
When the Trump broke ground, half of the residential condos had sold, as had 191 of the condo-hotel units, which ranged in price from $736,000 to $3.8 million. The suites could be rented out as part of the hotel, providing extra income to buyers. In the Trump system, occupancies are organized in a strict, computerized rotation, which ensures that the least rented room jumps to the front of the queue. The hotel charges service fees for maintenance (linens, towels, cleaning, etc.) and management, but the rest of the rental profit goes to the owner of the room. The promotional material declared that “investing in hotel suites is a trend that’s sweeping the United States… The reason? Great cash flows, no concern for maintenance and reasonable cash requirements as a down payment. Leverage is key, especially in these times of low interest rates.”
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chrisfrominvis · 11 years ago
Text
Trumped: the multi-million-dollar lawsuit over Toronto’s most controversial new condo-hotel
The Trump tower, downtown’s tallest new condo-hotel, is a monument to excess. And, like its tycoon namesake, it’s surrounded by controversy: 38 investors are suing the hotel for millions. Lessons from a post-crash real estate market
Tumblr media
In the city’s new five-star hotel landscape, the Ritz represents elegant European classicism, the Shangri-La cool, Asian chic, and the Trump unfettered American pomp. Like its loud-mouthed namesake, the Trump is brash, proud and full of bluster. Stock, the hotel’s restaurant and bar, is outfitted with shiny tufted black leather seating and silver accents. Its lobby, a shimmering expanse of marble and mirrors, seems sprung, fully formed, from the imagination of Joan Collins.
The hotel’s developer, Talon International, is run by Val Levitan and Alex Shnaider, two Russian-Canadian entrepreneurs. Levitan made his fortune manufacturing slot machines and creating bank note validation technology, and Shnaider earned his in the post-glasnost steel trade. The Trump is their first Toronto real estate venture. In 2002, during a meeting in Shnaider’s office at Dufferin and Finch, they agreed on a plan to build the city’s biggest, fanciest, five-starriest hotel. They both travel frequently for work and agreed that Toronto’s hotels lacked the quality of the ones they stayed at in London, New York and Moscow. Back then, Toronto’s swankiest option was the old Four Seasons, a dour brutalist tower in Yorkville. But the city was emerging as a major North American financial centre, a place where serious players were coming to do big international deals. These titans were in need of boardrooms in which to meet, bloody steaks to consume, and high-thread-count sheets to sleep between.
In 2004, Talon bought a site at the corner of Bay and Adelaide for $27.4 million. The location was perfect—smack in the centre of the business district. This was before the cultural revitalization of the city’s downtown core, but Levitan and Shnaider could see the signs: the revamping of the Bay’s flagship department store, the plans for the new Bell Lightbox, not to mention a phalanx of condos and restaurants springing up in the city centre. By the time the hotel was completed, it would be the anchor point of a tourist-friendly downtown.
The luxury hotel required a famous brand, which is how the pair ended up approaching Donald Trump. At the time, Trump’s reality show The Apprentice was riding high in the ratings, and the Trump brand was associated with luxury, success and business prowess, not with headline-making Twitter spats and an aborted Republican leadership bid. They worked out a deal to license the Trump name.
They planned a 65-storey mixed-use building consisting of a restaurant and bar, a day spa, 118 condos—some as large as 4,400 square feet and selling for up to $9.1 million—and 261 “condo-hotel suites,” traditional hotel rooms that Talon intended to sell as residential real estate investments. The condo-hotel set-up was unusual in Toronto. It’s an attractive model for developers because it allows them to raise capital up front from investors.
Donald Trump is a shareholder in other Trump developments in Chicago, New York and Las Vegas, but not in Toronto. The hotel would bear his name and his style, and an affiliate of his management company would run the day-to-day hotel service. According to the early marketing brochures, it would be a model for “Manhattan-style luxury living in Toronto.”
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By the time the Trump opened in 2012, ten years after the plan was hatched and more than two years later than originally scheduled, the financial climate had, of course, drastically changed. The hotel now felt like a throwback to a cockier, pre-recession era, back when hedge fund managers ruled the world and Bernie Madoff was a respected financial guru. A group of buyers now regret their investment in the building, and millions of dollars in deals between them and Talon are on the verge of collapsing. The group claims their condo-hotel units often sit empty, and they’ve launched a series of lawsuits alleging the Trump sales team misrepresented how much profit they’d make. The defendants say the lawsuits have no merit, that no misrepresentations were made. The claims have yet to be heard in court.
The Trump investors believed they’d bought into a get-rich-quick scheme. How did something so promising go so wrong?
Before there was the Trump Tower, there was the Trump tower sales office, a glass-fronted box that stood on the same prime corner from which the hotel would eventually rise. A polished young sales team sold a steady stream of units, over the phone, online and in person, to a diverse cross-section of buyers—including elderly Korean pensioners, wealthy Nigerians and a now-defunct U.K. company called WorldWide Properties, which bought four floors of hotel units with the intention of flipping them.
When the Trump broke ground, half of the residential condos had sold, as had 191 of the condo-hotel units, which ranged in price from $736,000 to $3.8 million. The suites could be rented out as part of the hotel, providing extra income to buyers. In the Trump system, occupancies are organized in a strict, computerized rotation, which ensures that the least rented room jumps to the front of the queue. The hotel charges service fees for maintenance (linens, towels, cleaning, etc.) and management, but the rest of the rental profit goes to the owner of the room. The promotional material declared that “investing in hotel suites is a trend that’s sweeping the United States… The reason? Great cash flows, no concern for maintenance and reasonable cash requirements as a down payment. Leverage is key, especially in these times of low interest rates.”
Promotions featured an airbrushed picture of Trump, along with a personal endorsement: “We’re going to do something very special in Toronto.” Trump himself, the ad said, “has an undeniably keen eye for a deal.” The ad neglected to mention that Trump wasn’t the project’s developer, just its smiling face.
Sarbjit Singh, a 49-year-old warehouse supervisor from Milton, was one of the early buyers. Singh first heard about the Trump in October 2006 from a real estate agent who told him it was a great investment opportunity. He and his wife, Kimberly, had recently bought a house and just had their second daughter. He didn’t have the money to buy another property. “I was only making between $50,000 and $60,000 a year,” he says. “I’m a regular person, not rich.”
But the prospect of getting his own piece of Trump magic proved too tempting. He claims the agents at the Trump sales centre told him he couldn’t possibly lose money since the “absolute worst case scenario” was that the hotel ended up at 55 per cent occupancy, and even then the projected returns were healthy. “I asked them a long list of questions,” he recalls. Who was going to arrange the mortgages? What would the interest rate be? Would the property be categorized as commercial or residential (commercial properties come with much higher interest rates). He alleges the sales associate assured him he had nothing to worry about. According to Singh, they said Talon was already working on financing with lenders, and it would all go smoothly. The units would qualify for residential mortgages. Singh then asked at what point he could flip the unit, and the agent told him directly after closing. “You’ll make a lot of money,” he remembers the agent telling him. “Even if you don’t sell, you’ll be making lots of money from the reservation program.”
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Armed with Talon’s projection sheet, his head dancing with trust funds for his daughters, Singh went to his mother and father, who are retired and living on a pension. He convinced them to take out a $150,000 line of credit on their house, which they owned outright, so he could put down a deposit of $173,400 on an $869,000 suite. He believed, like many other investors I spoke to, that he was buying a piece of real estate directly from Donald Trump and that he couldn’t lose. “I bought it on the strength of his name alone. He’s Donald Trump—hotels and real estate are his business, not mine. I trusted that it would work.”
Construction of the Trump Tower got off to an inauspicious start. It took two years to receive planning permission from the city, and there were more delays after Talon broke ground in late 2007. Because of the site’s small footprint—15,000 square feet—only one crane could be employed at a time. Shnaider admitted it was a bit of a nightmare. “I wouldn’t do such a project again in Toronto,” he said. More significantly for investors, the economic reality changed. As Levitan put it, “It was a very complicated project that became delayed, and in that time the economy fell apart. How can I control that?” In the new market, the projection sheets Talon had distributed with the initial sales package weren’t worth the creamy stationery they were printed on.
In March 2012, Sarbjit Singh took possession of his unit and started paying monthly fees of $8,207, which covered realty taxes, common fees and interest. He expected his rental profits to more than offset the fees, but when the first revenue statements came in, he knew something was wrong: in four months, his unit had been rented 49 times—roughly a 40 per cent occupancy rate and lower than the “absolute worst case scenario” the agent had discussed with him. Singh’s room was running at a loss. When he called hotel management, they told him the bad news: because of the dampened hotel market, they’d been renting his room out at a discounted rate. (Rooms at the Trump that were forecast to cost $550 to $600 per night have been available for $400 on Expedia.) Singh was losing approximately $5,000 a month.
His problems didn’t end there. He visited several major banks and was told the property was commercial, not residential, and thus he’d need a commercial mortgage, for which he’d need to put 50 per cent down—money he didn’t have. Even if he could find the down payment, the commercial interest rates would raise his mortgage payments beyond what he could afford to carry.
Last November, Singh ran out of reserve cash. He stopped paying his fees and is now working in the evenings and on weekends in an effort to pay his parents’ line of credit. He recently missed a mortgage payment. He has no idea how he’ll get out of debt.
Singh retained the Toronto law firm Heydary Hamil­ton last November and filed a suit against the developers. Another 37 buyers have also filed suits. A Heydary lawyer named Mitchell Wine, one of the team of 14 lawyers and articling students working on the Trump cases, told me purchasers and representatives of more than 100 units have contacted his office. The firm has filed statements of claim detailing each of the investors’ stories and accusing Talon and other named parties of misrepresentation, breaches of the Ontario Securities Act, breach of contract, breach of the Condominium Act and conspiracy. Each claimant is asking for well over a million dollars in damages, plus their deposit money back with interest. Pleadings are being finalized, and preliminary motions were scheduled to be heard just after this issue went to press. In response, Talon is seeking to have the action by investors dismissed.
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The investors’ suits name Trump Toronto Hotel Management Group and Talon International Inc., as well as Trump, Shnaider and Levitan personally. They allege that the defendants misled investors about the units by providing financial projections that overstated how much they would earn, and by understating expenses (such as occupancy fees). According to the investors’ statements of claim, Talon breached the Ontario Securities Act by selling the units as investment products.
The plaintiffs’ cases centre on a 2004 OSC ruling, which required Talon to market the units as mainly for occupancy, not as investments. Talon was also prohibited from forecasting or guaranteeing profits from the reservation program. And yet, included in the Trump’s original sales package are several charts entitled Estimated Return on Investment, which show detailed breakdowns of the income buyers could expect from their condo-hotel suites. They describe projected common expense fees, housekeeping expenses, estimated taxes and a mortgage projected at six per cent interest. The rental income, in turn, is projected at hotel occupancy rates of 75, 65 and 55 per cent.
Late last year, the OSC investigated the Trump deal to determine whether regulatory action was needed. They met with purchasers and Talon’s lawyers, read over all the documents, and in early December announced they would not be pursuing regulatory action on the matter. When I asked for an explanation, the OSC refused to provide one. The investors’ suits will proceed regardless of the December decision.
The fact is, Talon did warn the Trump buyers about the risks involved in buying condo-hotel units in its disclosure. “A real estate investment is, by its nature, speculative,” the document states. “If a purchaser is purchasing the real estate as an investment, the purchaser should be aware that this investment has not only the usual risks when purchasing real estate, but also those risks that are inherent to the nature of real estate securities.”
A disclaimer in the Trump disclosure lists a series of variables, many of which might seem alarmist if they hadn’t come to pass. These include, but are not limited to, “cyclical downturns arising from real changes in general and local economic conditions; varying levels of demand for rooms and related services caused by changes in travel patterns; the financial condition of the airline industry and the resulting impact on air travel…contagious illness outbreaks, natural disasters, extreme weather conditions, labour shortages, work stoppages or disputes.” There is also a clause, as required by the Condominium Act, stating that each buyer, upon receiving and reading the disclosure document, has 10 days to back out of the deal. According to Levitan, five people did just that.
Investors like Singh claim they didn’t take the warnings about risks seriously because they’d been completely convinced that the investment was a sure bet. It’s a bit like your trusted GP prescribing you a medication and then rattling off the side effects in a super-fast radio ad voice as you leave the office. If what these buyers say is true, the Trump sales team underplayed the risks and overplayed the benefits of buying their condo-hotel units. But sales pitches are hyperbolic by design.
Talon’s statement of defence denies all wrongdoing, including the allegations of misrepresentation and breaching an OSC ruling, and demands the investors forfeit their deposits and pay individual damages of $750,000 each. Levitan says they have a good case for further damages, due to all the bad press the case has received, but they are still “hoping for an amicable solution.”
In Talon’s specific response to Singh’s claim, the company denies that the Trump sales agents promised he could get a residential mortgage or guaranteed a rate of return from the reservation program. It also denies that any promotional material he received breached the OSC ruling. In Levitan’s view, the buyers’ lawsuits are purely opportunistic and won’t stand up in court. Normally, if buyers want to walk away from a deal, a developer will buy back their investment. But the Trump units were sold at the peak of the market. As Levitan points out, “Everything has changed.” Given this reality, Talon is not eager to buy back the units it sold off for millions in the middle of the condo boom. That’s how people—and developers—make money: buying low and selling high. Why should they absorb the cost of others’ bad financial timing?
The group of disgruntled buyers, Levitan says, is primarily composed of people who did not attempt to rescind the deal in the allotted time frame, then realized they couldn’t secure financing and decided to file suit. The fact that they don’t have the money to close only shows that they probably shouldn’t have taken the risk in the first place. “Instead they claim that they thought they were buying from Donald Trump and we promised them a rose garden,” Levitan says with a snort. “It’s a pure form of extortion.”
He says he’s sad for the people who got in over their heads. He’d prefer “the world to be a rosy place in which people are always happy with their investments,” but that didn’t happen with Trump. “So what am I supposed to do?” he says. “Go to the drywall contractor and say, ‘Sorry, but I can’t pay you because 30 investors aren’t paying me?’ ”
Raymond Diep, a Toronto real estate lawyer at the firm Aaron & Aaron, which handled a number of the Trump condo-hotel closings, said his firm’s clients weren’t happy about losing money each month, but they chose to take a long-term view on the investment. “They realized that things might be negative now, but in the end the market would go up again.”
None of Aaron & Aaron’s clients were going to go personally bankrupt on the Trump deal; they absorbed their losses and decided to wait it out. Diep believes the Heydary lawyers are cashing in on private desperation. “They’re making it look like a shady investment, but it’s not really like that. The investors had high expectations. It was the height of the market. Now that it’s slowed down, they’re having regrets about it. It’s that simple.”
Sarbjit Singh, who is in no position to close in cash, says that Talon should have said that only investors of high net worth need apply. Instead, the Trump project was sold as a great investment for people of modest means, like himself. “If you need to be a millionaire to close, they should have targeted millionaires.”
Donald Trump declined to speak with me, but Ivanka, his daughter, agreed. The 32-year-old is vice-president of development and acquisitions for the Trump Organization. When I reached her, she was in the back of a chauffeur-driven car on the way to the airport. “It was very important to me to give you some time,” she said the moment she got on the phone. Ivanka is a glamorous blond jewellery designer and former model with a business degree from Wharton. Over the years, her father has used her as the new face of Trump, trotting her out at public events and even appointing her as a judge on The Apprentice.
Ivanka is an excellent human shield for her father, who is no stranger to lawsuits. He has been sued by investors on several hotel projects and has launched his own litany of suits against a long list of perceived offenders, including an unauthorized biographer, a former Miss U.S.A. contestant, Deutsche Bank and the comedian Bill Maher, who offered, on The Tonight Show, to pay Trump $5 million if he could prove his father was not an orangutan. Trump sent him a copy of his birth certificate, but Maher did not pay up.
Ivanka said she is staggered by the investors’ claims that they believed they were buying their units directly from Trump.
“I don’t know of many people who wouldn’t retain a lawyer to explain to them how this relationship works,” she says. “It’s articulated exactly in the purchase documents… We’re just like the Ritz or the Four Seasons. It’s not different in any way.”
She says the claims against her father and his company are completely without merit. When I point out that people were led to believe they would make money and now they are losing it—and, similarly, that they would be able to secure financing where now they cannot—Ivanka bridles, her voice rising in the controlled manner of one who is used to conflict but not to having her authority questioned. She points out, quite rightly, that with any investment, whatever the asset class, and especially with real estate, those who approach things with a long-term perspective tend to do best. She says the unhappy buyers in the Trump Toronto case are suffering from a severe case of buyer’s remorse—which is nobody’s problem but their own.
She objects to the implication that the investors were misled in any way, and each time I try to suggest that perhaps the sales tactics were overly aggressive, she jumps in and loudly talks over me, extolling what she calls “the beauty of the asset,” by which she means the hotel itself.
“I wish that everyone could be happy, but sometimes these things can be a challenge,” she says airily. “It’s important to remember that the lawsuit doesn’t relate to us in any way. We have no contracts with these people, and we didn’t sell them real estate.” With that, she declares she must go, says a quick goodbye and hangs up.
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marshallstrue · 12 years ago
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Trumped: the multi-million-dollar lawsuit over Toronto’s most controversial new condo-hotel
The Trump tower, downtown’s tallest new condo-hotel, is a monument to excess. And, like its tycoon namesake, it’s surrounded by controversy: 38 investors are suing the hotel for millions. Lessons from a post-crash real estate market
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In the city’s new five-star hotel landscape, the Ritz represents elegant European classicism, the Shangri-La cool, Asian chic, and the Trump unfettered American pomp. Like its loud-mouthed namesake, the Trump is brash, proud and full of bluster. Stock, the hotel’s restaurant and bar, is outfitted with shiny tufted black leather seating and silver accents. Its lobby, a shimmering expanse of marble and mirrors, seems sprung, fully formed, from the imagination of Joan Collins.
The hotel’s developer, Talon International, is run by Val Levitan and Alex Shnaider, two Russian-Canadian entrepreneurs. Levitan made his fortune manufacturing slot machines and creating bank note validation technology, and Shnaider earned his in the post-glasnost steel trade. The Trump is their first Toronto real estate venture. In 2002, during a meeting in Shnaider’s office at Dufferin and Finch, they agreed on a plan to build the city’s biggest, fanciest, five-starriest hotel. They both travel frequently for work and agreed that Toronto’s hotels lacked the quality of the ones they stayed at in London, New York and Moscow. Back then, Toronto’s swankiest option was the old Four Seasons, a dour brutalist tower in Yorkville. But the city was emerging as a major North American financial centre, a place where serious players were coming to do big international deals. These titans were in need of boardrooms in which to meet, bloody steaks to consume, and high-thread-count sheets to sleep between.
In 2004, Talon bought a site at the corner of Bay and Adelaide for $27.4 million. The location was perfect—smack in the centre of the business district. This was before the cultural revitalization of the city’s downtown core, but Levitan and Shnaider could see the signs: the revamping of the Bay’s flagship department store, the plans for the new Bell Lightbox, not to mention a phalanx of condos and restaurants springing up in the city centre. By the time the hotel was completed, it would be the anchor point of a tourist-friendly downtown.
The luxury hotel required a famous brand, which is how the pair ended up approaching Donald Trump. At the time, Trump’s reality show The Apprentice was riding high in the ratings, and the Trump brand was associated with luxury, success and business prowess, not with headline-making Twitter spats and an aborted Republican leadership bid. They worked out a deal to license the Trump name.
They planned a 65-storey mixed-use building consisting of a restaurant and bar, a day spa, 118 condos—some as large as 4,400 square feet and selling for up to $9.1 million—and 261 “condo-hotel suites,” traditional hotel rooms that Talon intended to sell as residential real estate investments. The condo-hotel set-up was unusual in Toronto. It’s an attractive model for developers because it allows them to raise capital up front from investors.
Donald Trump is a shareholder in other Trump developments in Chicago, New York and Las Vegas, but not in Toronto. The hotel would bear his name and his style, and an affiliate of his management company would run the day-to-day hotel service. According to the early marketing brochures, it would be a model for “Manhattan-style luxury living in Toronto.”
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By the time the Trump opened in 2012, ten years after the plan was hatched and more than two years later than originally scheduled, the financial climate had, of course, drastically changed. The hotel now felt like a throwback to a cockier, pre-recession era, back when hedge fund managers ruled the world and Bernie Madoff was a respected financial guru. A group of buyers now regret their investment in the building, and millions of dollars in deals between them and Talon are on the verge of collapsing. The group claims their condo-hotel units often sit empty, and they’ve launched a series of lawsuits alleging the Trump sales team misrepresented how much profit they’d make. The defendants say the lawsuits have no merit, that no misrepresentations were made. The claims have yet to be heard in court.
The Trump investors believed they’d bought into a get-rich-quick scheme. How did something so promising go so wrong?
Before there was the Trump Tower, there was the Trump tower sales office, a glass-fronted box that stood on the same prime corner from which the hotel would eventually rise. A polished young sales team sold a steady stream of units, over the phone, online and in person, to a diverse cross-section of buyers—including elderly Korean pensioners, wealthy Nigerians and a now-defunct U.K. company called WorldWide Properties, which bought four floors of hotel units with the intention of flipping them.
When the Trump broke ground, half of the residential condos had sold, as had 191 of the condo-hotel units, which ranged in price from $736,000 to $3.8 million. The suites could be rented out as part of the hotel, providing extra income to buyers. In the Trump system, occupancies are organized in a strict, computerized rotation, which ensures that the least rented room jumps to the front of the queue. The hotel charges service fees for maintenance (linens, towels, cleaning, etc.) and management, but the rest of the rental profit goes to the owner of the room. The promotional material declared that “investing in hotel suites is a trend that’s sweeping the United States… The reason? Great cash flows, no concern for maintenance and reasonable cash requirements as a down payment. Leverage is key, especially in these times of low interest rates.”
Promotions featured an airbrushed picture of Trump, along with a personal endorsement: “We’re going to do something very special in Toronto.” Trump himself, the ad said, “has an undeniably keen eye for a deal.” The ad neglected to mention that Trump wasn’t the project’s developer, just its smiling face.
Sarbjit Singh, a 49-year-old warehouse supervisor from Milton, was one of the early buyers. Singh first heard about the Trump in October 2006 from a real estate agent who told him it was a great investment opportunity. He and his wife, Kimberly, had recently bought a house and just had their second daughter. He didn’t have the money to buy another property. “I was only making between $50,000 and $60,000 a year,” he says. “I’m a regular person, not rich.”
But the prospect of getting his own piece of Trump magic proved too tempting. He claims the agents at the Trump sales centre told him he couldn’t possibly lose money since the “absolute worst case scenario” was that the hotel ended up at 55 per cent occupancy, and even then the projected returns were healthy. “I asked them a long list of questions,” he recalls. Who was going to arrange the mortgages? What would the interest rate be? Would the property be categorized as commercial or residential (commercial properties come with much higher interest rates). He alleges the sales associate assured him he had nothing to worry about. According to Singh, they said Talon was already working on financing with lenders, and it would all go smoothly. The units would qualify for residential mortgages. Singh then asked at what point he could flip the unit, and the agent told him directly after closing. “You’ll make a lot of money,” he remembers the agent telling him. “Even if you don’t sell, you’ll be making lots of money from the reservation program.”
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Armed with Talon’s projection sheet, his head dancing with trust funds for his daughters, Singh went to his mother and father, who are retired and living on a pension. He convinced them to take out a $150,000 line of credit on their house, which they owned outright, so he could put down a deposit of $173,400 on an $869,000 suite. He believed, like many other investors I spoke to, that he was buying a piece of real estate directly from Donald Trump and that he couldn’t lose. “I bought it on the strength of his name alone. He’s Donald Trump—hotels and real estate are his business, not mine. I trusted that it would work.”
Construction of the Trump Tower got off to an inauspicious start. It took two years to receive planning permission from the city, and there were more delays after Talon broke ground in late 2007. Because of the site’s small footprint—15,000 square feet—only one crane could be employed at a time. Shnaider admitted it was a bit of a nightmare. “I wouldn’t do such a project again in Toronto,” he said. More significantly for investors, the economic reality changed. As Levitan put it, “It was a very complicated project that became delayed, and in that time the economy fell apart. How can I control that?” In the new market, the projection sheets Talon had distributed with the initial sales package weren’t worth the creamy stationery they were printed on.
In March 2012, Sarbjit Singh took possession of his unit and started paying monthly fees of $8,207, which covered realty taxes, common fees and interest. He expected his rental profits to more than offset the fees, but when the first revenue statements came in, he knew something was wrong: in four months, his unit had been rented 49 times—roughly a 40 per cent occupancy rate and lower than the “absolute worst case scenario” the agent had discussed with him. Singh’s room was running at a loss. When he called hotel management, they told him the bad news: because of the dampened hotel market, they’d been renting his room out at a discounted rate. (Rooms at the Trump that were forecast to cost $550 to $600 per night have been available for $400 on Expedia.) Singh was losing approximately $5,000 a month.
His problems didn’t end there. He visited several major banks and was told the property was commercial, not residential, and thus he’d need a commercial mortgage, for which he’d need to put 50 per cent down—money he didn’t have. Even if he could find the down payment, the commercial interest rates would raise his mortgage payments beyond what he could afford to carry.
Last November, Singh ran out of reserve cash. He stopped paying his fees and is now working in the evenings and on weekends in an effort to pay his parents’ line of credit. He recently missed a mortgage payment. He has no idea how he’ll get out of debt.
Singh retained the Toronto law firm Heydary Hamil­ton last November and filed a suit against the developers. Another 37 buyers have also filed suits. A Heydary lawyer named Mitchell Wine, one of the team of 14 lawyers and articling students working on the Trump cases, told me purchasers and representatives of more than 100 units have contacted his office. The firm has filed statements of claim detailing each of the investors’ stories and accusing Talon and other named parties of misrepresentation, breaches of the Ontario Securities Act, breach of contract, breach of the Condominium Act and conspiracy. Each claimant is asking for well over a million dollars in damages, plus their deposit money back with interest. Pleadings are being finalized, and preliminary motions were scheduled to be heard just after this issue went to press. In response, Talon is seeking to have the action by investors dismissed.
The investors’ suits name Trump Toronto Hotel Management Group and Talon International Inc., as well as Trump, Shnaider and Levitan personally. They allege that the defendants misled investors about the units by providing financial projections that overstated how much they would earn, and by understating expenses (such as occupancy fees). According to the investors’ statements of claim, Talon breached the Ontario Securities Act by selling the units as investment products.
The plaintiffs’ cases centre on a 2004 OSC ruling, which required Talon to market the units as mainly for occupancy, not as investments. Talon was also prohibited from forecasting or guaranteeing profits from the reservation program. And yet, included in the Trump’s original sales package are several charts entitled Estimated Return on Investment, which show detailed breakdowns of the income buyers could expect from their condo-hotel suites. They describe projected common expense fees, housekeeping expenses, estimated taxes and a mortgage projected at six per cent interest. The rental income, in turn, is projected at hotel occupancy rates of 75, 65 and 55 per cent.
Late last year, the OSC investigated the Trump deal to determine whether regulatory action was needed. They met with purchasers and Talon’s lawyers, read over all the documents, and in early December announced they would not be pursuing regulatory action on the matter. When I asked for an explanation, the OSC refused to provide one. The investors’ suits will proceed regardless of the December decision.
The fact is, Talon did warn the Trump buyers about the risks involved in buying condo-hotel units in its disclosure. “A real estate investment is, by its nature, speculative,” the document states. “If a purchaser is purchasing the real estate as an investment, the purchaser should be aware that this investment has not only the usual risks when purchasing real estate, but also those risks that are inherent to the nature of real estate securities.”
A disclaimer in the Trump disclosure lists a series of variables, many of which might seem alarmist if they hadn’t come to pass. These include, but are not limited to, “cyclical downturns arising from real changes in general and local economic conditions; varying levels of demand for rooms and related services caused by changes in travel patterns; the financial condition of the airline industry and the resulting impact on air travel…contagious illness outbreaks, natural disasters, extreme weather conditions, labour shortages, work stoppages or disputes.” There is also a clause, as required by the Condominium Act, stating that each buyer, upon receiving and reading the disclosure document, has 10 days to back out of the deal. According to Levitan, five people did just that.
Investors like Singh claim they didn’t take the warnings about risks seriously because they’d been completely convinced that the investment was a sure bet. It’s a bit like your trusted GP prescribing you a medication and then rattling off the side effects in a super-fast radio ad voice as you leave the office. If what these buyers say is true, the Trump sales team underplayed the risks and overplayed the benefits of buying their condo-hotel units. But sales pitches are hyperbolic by design.
Talon’s statement of defence denies all wrongdoing, including the allegations of misrepresentation and breaching an OSC ruling, and demands the investors forfeit their deposits and pay individual damages of $750,000 each. Levitan says they have a good case for further damages, due to all the bad press the case has received, but they are still “hoping for an amicable solution.”
In Talon’s specific response to Singh’s claim, the company denies that the Trump sales agents promised he could get a residential mortgage or guaranteed a rate of return from the reservation program. It also denies that any promotional material he received breached the OSC ruling. In Levitan’s view, the buyers’ lawsuits are purely opportunistic and won’t stand up in court. Normally, if buyers want to walk away from a deal, a developer will buy back their investment. But the Trump units were sold at the peak of the market. As Levitan points out, “Everything has changed.” Given this reality, Talon is not eager to buy back the units it sold off for millions in the middle of the condo boom. That’s how people—and developers—make money: buying low and selling high. Why should they absorb the cost of others’ bad financial timing?
The group of disgruntled buyers, Levitan says, is primarily composed of people who did not attempt to rescind the deal in the allotted time frame, then realized they couldn’t secure financing and decided to file suit. The fact that they don’t have the money to close only shows that they probably shouldn’t have taken the risk in the first place. “Instead they claim that they thought they were buying from Donald Trump and we promised them a rose garden,” Levitan says with a snort. “It’s a pure form of extortion.”
He says he’s sad for the people who got in over their heads. He’d prefer “the world to be a rosy place in which people are always happy with their investments,” but that didn’t happen with Trump. “So what am I supposed to do?” he says. “Go to the drywall contractor and say, ‘Sorry, but I can’t pay you because 30 investors aren’t paying me?’ ”
Raymond Diep, a Toronto real estate lawyer at the firm Aaron & Aaron, which handled a number of the Trump condo-hotel closings, said his firm’s clients weren’t happy about losing money each month, but they chose to take a long-term view on the investment. “They realized that things might be negative now, but in the end the market would go up again.”
None of Aaron & Aaron’s clients were going to go personally bankrupt on the Trump deal; they absorbed their losses and decided to wait it out. Diep believes the Heydary lawyers are cashing in on private desperation. “They’re making it look like a shady investment, but it’s not really like that. The investors had high expectations. It was the height of the market. Now that it’s slowed down, they’re having regrets about it. It’s that simple.”
Sarbjit Singh, who is in no position to close in cash, says that Talon should have said that only investors of high net worth need apply. Instead, the Trump project was sold as a great investment for people of modest means, like himself. “If you need to be a millionaire to close, they should have targeted millionaires.”
Donald Trump declined to speak with me, but Ivanka, his daughter, agreed. The 32-year-old is vice-president of development and acquisitions for the Trump Organization. When I reached her, she was in the back of a chauffeur-driven car on the way to the airport. “It was very important to me to give you some time,” she said the moment she got on the phone. Ivanka is a glamorous blond jewellery designer and former model with a business degree from Wharton. Over the years, her father has used her as the new face of Trump, trotting her out at public events and even appointing her as a judge on The Apprentice.
Ivanka is an excellent human shield for her father, who is no stranger to lawsuits. He has been sued by investors on several hotel projects and has launched his own litany of suits against a long list of perceived offenders, including an unauthorized biographer, a former Miss U.S.A. contestant, Deutsche Bank and the comedian Bill Maher, who offered, on The Tonight Show, to pay Trump $5 million if he could prove his father was not an orangutan. Trump sent him a copy of his birth certificate, but Maher did not pay up.
Ivanka said she is staggered by the investors’ claims that they believed they were buying their units directly from Trump.
“I don’t know of many people who wouldn’t retain a lawyer to explain to them how this relationship works,” she says. “It’s articulated exactly in the purchase documents… We’re just like the Ritz or the Four Seasons. It’s not different in any way.”
She says the claims against her father and his company are completely without merit. When I point out that people were led to believe they would make money and now they are losing it—and, similarly, that they would be able to secure financing where now they cannot—Ivanka bridles, her voice rising in the controlled manner of one who is used to conflict but not to having her authority questioned. She points out, quite rightly, that with any investment, whatever the asset class, and especially with real estate, those who approach things with a long-term perspective tend to do best. She says the unhappy buyers in the Trump Toronto case are suffering from a severe case of buyer’s remorse—which is nobody’s problem but their own.
She objects to the implication that the investors were misled in any way, and each time I try to suggest that perhaps the sales tactics were overly aggressive, she jumps in and loudly talks over me, extolling what she calls “the beauty of the asset,” by which she means the hotel itself.
“I wish that everyone could be happy, but sometimes these things can be a challenge,” she says airily. “It’s important to remember that the lawsuit doesn’t relate to us in any way. We have no contracts with these people, and we didn’t sell them real estate.” With that, she declares she must go, says a quick goodbye and hangs up.
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dirtymoneyenough · 11 years ago
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Trumped: the multi-million-dollar lawsuit over Toronto’s most controversial new condo-hotel
The Trump tower, downtown’s tallest new condo-hotel, is a monument to excess. And, like its tycoon namesake, it’s surrounded by controversy: 38 investors are suing the hotel for millions. Lessons from a post-crash real estate market
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In the city’s new five-star hotel landscape, the Ritz represents elegant European classicism, the Shangri-La cool, Asian chic, and the Trump unfettered American pomp. Like its loud-mouthed namesake, the Trump is brash, proud and full of bluster. Stock, the hotel’s restaurant and bar, is outfitted with shiny tufted black leather seating and silver accents. Its lobby, a shimmering expanse of marble and mirrors, seems sprung, fully formed, from the imagination of Joan Collins.
The hotel’s developer, Talon International, is run by Val Levitan and Alex Shnaider, two Russian-Canadian entrepreneurs. Levitan made his fortune manufacturing slot machines and creating bank note validation technology, and Shnaider earned his in the post-glasnost steel trade. The Trump is their first Toronto real estate venture. In 2002, during a meeting in Shnaider’s office at Dufferin and Finch, they agreed on a plan to build the city’s biggest, fanciest, five-starriest hotel. They both travel frequently for work and agreed that Toronto’s hotels lacked the quality of the ones they stayed at in London, New York and Moscow. Back then, Toronto’s swankiest option was the old Four Seasons, a dour brutalist tower in Yorkville. But the city was emerging as a major North American financial centre, a place where serious players were coming to do big international deals. These titans were in need of boardrooms in which to meet, bloody steaks to consume, and high-thread-count sheets to sleep between.
In 2004, Talon bought a site at the corner of Bay and Adelaide for $27.4 million. The location was perfect—smack in the centre of the business district. This was before the cultural revitalization of the city’s downtown core, but Levitan and Shnaider could see the signs: the revamping of the Bay’s flagship department store, the plans for the new Bell Lightbox, not to mention a phalanx of condos and restaurants springing up in the city centre. By the time the hotel was completed, it would be the anchor point of a tourist-friendly downtown.
The luxury hotel required a famous brand, which is how the pair ended up approaching Donald Trump. At the time, Trump’s reality show The Apprentice was riding high in the ratings, and the Trump brand was associated with luxury, success and business prowess, not with headline-making Twitter spats and an aborted Republican leadership bid. They worked out a deal to license the Trump name.
They planned a 65-storey mixed-use building consisting of a restaurant and bar, a day spa, 118 condos—some as large as 4,400 square feet and selling for up to $9.1 million—and 261 “condo-hotel suites,” traditional hotel rooms that Talon intended to sell as residential real estate investments. The condo-hotel set-up was unusual in Toronto. It’s an attractive model for developers because it allows them to raise capital up front from investors.
Donald Trump is a shareholder in other Trump developments in Chicago, New York and Las Vegas, but not in Toronto. The hotel would bear his name and his style, and an affiliate of his management company would run the day-to-day hotel service. According to the early marketing brochures, it would be a model for “Manhattan-style luxury living in Toronto.”
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By the time the Trump opened in 2012, ten years after the plan was hatched and more than two years later than originally scheduled, the financial climate had, of course, drastically changed. The hotel now felt like a throwback to a cockier, pre-recession era, back when hedge fund managers ruled the world and Bernie Madoff was a respected financial guru. A group of buyers now regret their investment in the building, and millions of dollars in deals between them and Talon are on the verge of collapsing. The group claims their condo-hotel units often sit empty, and they’ve launched a series of lawsuits alleging the Trump sales team misrepresented how much profit they’d make. The defendants say the lawsuits have no merit, that no misrepresentations were made. The claims have yet to be heard in court.
The Trump investors believed they’d bought into a get-rich-quick scheme. How did something so promising go so wrong?
Before there was the Trump Tower, there was the Trump tower sales office, a glass-fronted box that stood on the same prime corner from which the hotel would eventually rise. A polished young sales team sold a steady stream of units, over the phone, online and in person, to a diverse cross-section of buyers—including elderly Korean pensioners, wealthy Nigerians and a now-defunct U.K. company called WorldWide Properties, which bought four floors of hotel units with the intention of flipping them.
When the Trump broke ground, half of the residential condos had sold, as had 191 of the condo-hotel units, which ranged in price from $736,000 to $3.8 million. The suites could be rented out as part of the hotel, providing extra income to buyers. In the Trump system, occupancies are organized in a strict, computerized rotation, which ensures that the least rented room jumps to the front of the queue. The hotel charges service fees for maintenance (linens, towels, cleaning, etc.) and management, but the rest of the rental profit goes to the owner of the room. The promotional material declared that “investing in hotel suites is a trend that’s sweeping the United States… The reason? Great cash flows, no concern for maintenance and reasonable cash requirements as a down payment. Leverage is key, especially in these times of low interest rates.”
Promotions featured an airbrushed picture of Trump, along with a personal endorsement: “We’re going to do something very special in Toronto.” Trump himself, the ad said, “has an undeniably keen eye for a deal.” The ad neglected to mention that Trump wasn’t the project’s developer, just its smiling face.
Sarbjit Singh, a 49-year-old warehouse supervisor from Milton, was one of the early buyers. Singh first heard about the Trump in October 2006 from a real estate agent who told him it was a great investment opportunity. He and his wife, Kimberly, had recently bought a house and just had their second daughter. He didn’t have the money to buy another property. “I was only making between $50,000 and $60,000 a year,” he says. “I’m a regular person, not rich.”
But the prospect of getting his own piece of Trump magic proved too tempting. He claims the agents at the Trump sales centre told him he couldn’t possibly lose money since the “absolute worst case scenario” was that the hotel ended up at 55 per cent occupancy, and even then the projected returns were healthy. “I asked them a long list of questions,” he recalls. Who was going to arrange the mortgages? What would the interest rate be? Would the property be categorized as commercial or residential (commercial properties come with much higher interest rates). He alleges the sales associate assured him he had nothing to worry about. According to Singh, they said Talon was already working on financing with lenders, and it would all go smoothly. The units would qualify for residential mortgages. Singh then asked at what point he could flip the unit, and the agent told him directly after closing. “You’ll make a lot of money,” he remembers the agent telling him. “Even if you don’t sell, you’ll be making lots of money from the reservation program.”
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Armed with Talon’s projection sheet, his head dancing with trust funds for his daughters, Singh went to his mother and father, who are retired and living on a pension. He convinced them to take out a $150,000 line of credit on their house, which they owned outright, so he could put down a deposit of $173,400 on an $869,000 suite. He believed, like many other investors I spoke to, that he was buying a piece of real estate directly from Donald Trump and that he couldn’t lose. “I bought it on the strength of his name alone. He’s Donald Trump—hotels and real estate are his business, not mine. I trusted that it would work.”
Construction of the Trump Tower got off to an inauspicious start. It took two years to receive planning permission from the city, and there were more delays after Talon broke ground in late 2007. Because of the site’s small footprint—15,000 square feet—only one crane could be employed at a time. Shnaider admitted it was a bit of a nightmare. “I wouldn’t do such a project again in Toronto,” he said. More significantly for investors, the economic reality changed. As Levitan put it, “It was a very complicated project that became delayed, and in that time the economy fell apart. How can I control that?” In the new market, the projection sheets Talon had distributed with the initial sales package weren’t worth the creamy stationery they were printed on.
In March 2012, Sarbjit Singh took possession of his unit and started paying monthly fees of $8,207, which covered realty taxes, common fees and interest. He expected his rental profits to more than offset the fees, but when the first revenue statements came in, he knew something was wrong: in four months, his unit had been rented 49 times—roughly a 40 per cent occupancy rate and lower than the “absolute worst case scenario” the agent had discussed with him. Singh’s room was running at a loss. When he called hotel management, they told him the bad news: because of the dampened hotel market, they’d been renting his room out at a discounted rate. (Rooms at the Trump that were forecast to cost $550 to $600 per night have been available for $400 on Expedia.) Singh was losing approximately $5,000 a month.
His problems didn’t end there. He visited several major banks and was told the property was commercial, not residential, and thus he’d need a commercial mortgage, for which he’d need to put 50 per cent down—money he didn’t have. Even if he could find the down payment, the commercial interest rates would raise his mortgage payments beyond what he could afford to carry.
Last November, Singh ran out of reserve cash. He stopped paying his fees and is now working in the evenings and on weekends in an effort to pay his parents’ line of credit. He recently missed a mortgage payment. He has no idea how he’ll get out of debt.
Singh retained the Toronto law firm Heydary Hamil­ton last November and filed a suit against the developers. Another 37 buyers have also filed suits. A Heydary lawyer named Mitchell Wine, one of the team of 14 lawyers and articling students working on the Trump cases, told me purchasers and representatives of more than 100 units have contacted his office. The firm has filed statements of claim detailing each of the investors’ stories and accusing Talon and other named parties of misrepresentation, breaches of the Ontario Securities Act, breach of contract, breach of the Condominium Act and conspiracy. Each claimant is asking for well over a million dollars in damages, plus their deposit money back with interest. Pleadings are being finalized, and preliminary motions were scheduled to be heard just after this issue went to press. In response, Talon is seeking to have the action by investors dismissed.
to be continued...
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martinreynarealtor · 1 year ago
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Buying a High-Rise Condo in Las Vegas
High-Rise Condos in Las Vegas: Elevate Your Lifestyle in the Entertainment Capital. Las Vegas, renowned for its vibrant nightlife and iconic Strip, offers an equally dazzling real estate experience with its high-rise condos. These luxury living spaces provide residents with breathtaking views of the city's skyline and surrounding desert landscapes. Offering the perfect blend of urban convenience and resort-style amenities, high-rise condos in Las Vegas are the epitome of modern living.
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getrealestate · 1 year ago
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Spectacular Las Vegas Strip View Condo for Sale
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luxrealestateadvisors · 2 years ago
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Condos For Rent Las Vegas NV
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Looking for condos for rent in Las Vegas, NV? Luxury Real Estate Advisors can help! Our experienced team specializes in luxury condo rentals and can assist you in finding your dream home. Contact us today to start your search!
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yelenahorton · 8 months ago
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Experience Red Rock Country Club Living: Your Ultimate Guide
Experience Red Rock Country Club Living. Welcome back to the exclusive world of Red Rock Country Club! Another part of our series, prepare to be dazzled as we unveil the revamped features and amenities of this prestigious club. Join us as we take you on a guided tour of the newly enhanced facilities, showcasing the breathtaking landscapes, world-class golf courses, and luxurious amenities that define the Red Rock experience. Read more: https://www.youtube.com/watch?v=T0p7gc7haxI
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citycentre123 · 2 years ago
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Las Vegas NV Real Estate
Las Vegas, NV, real estate market is dynamic and ever-changing, and Yelena Horton Global Real Estate Advisor is your partner for success in this market. We have a deep understanding of the local real estate landscape and can provide you with exclusive access to the latest listings and off-market opportunities. We specialize in luxury homes and high-rise condos and can help you find the perfect property that suits your style and preferences. Contact us today to learn more about the Las Vegas, NV, real estate market and how we can help you succeed.
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dewrealestatelv1-blog · 5 years ago
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Dew Real Estate Agent in Las Vegas NV | Luxury Real Estate For Sale in Las Vegas
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Dew Real Estate LV
  Million Dollar Homes for Sale in Las Vegas
With two months to go, you’re starting to see progress and even getting a little excited about what’s ahead. Agent Commercial Multifamily Las Vegas Staying focused is important now as you work with your family to begin the process of cleaning and downsizing your household belongings. Summerlin Real Estate 
Summerlin Realtor 
By now,     the moving company has been selected. At this point, request any     checklists or helpful aids for your family’s move. Summerlin Real Estate Agent
Prepare a     comprehensive list of everyone you’ll need to notify of your move. Update     your contacts/address book to ensure you have the most updated     information. Real Estate     Agent Summerlin
Plan to     stop by your local post office station to pick up a Mover’s Guide and an     Official Change of Address Kit, which will need to be submitted to the     post office two weeks before your move. Real Estate Agent in Las Vegas
With the     family, start to sort out household items and any other belongings you     don’t intend to take to your new location. Plan a date for a garage sale     and notify your friends. Luxury     Homes and Estates Las Vegas NV If you prefer, plan to sell your     excess goods online through Craig’s list or other services. Whatever isn’t     sold, plan to donate to a charity. Luxury Homes in Las Vegas
  You’ve     selected your new home in Las Vegas and are arranging financing. With your     agent, you’ve scheduled a tentative closing date. Mountains Edge Real Estate
Visit your     child’s new school Web site to learn about schedules and the enrollment     requirements. Realtor     Mountains Edge Are your child’s immunization records and     birth certificate in order  Mountains     Edge Real Estate Agent
Ask your     real estate agent for referrals regarding a daycare/child care provider. Real Estate Agent Mountains Edge     homes for sale consult the information provided in this guide on what to     look for in a daycare/child care provider and the options available. South West Real Estate
Let your     local religious leader know that you’ll be leaving the area and ask for     their referrals for names of houses of worship in Las Vegas. Real Estate Agent Las Vegas
Select an     insurance company High End     Real Estate for Sale in Las Vegas to set up coverage on your new     home, its contents and your automobile. You’ll have an updated inventory     list from the move, which will come in handy. Realtor in Las Vegas
Notify     your child’s current school of your move date and arrange for records to     be transferred to the new school system. Top Real Estate Agents Las Vegas
Reconfirm     the pickup and delivery dates with your mover. If you need storage, make     arrangements with your moving company now.  
Luxury Homes in Las Vegas NV
Is it your responsible to pay the moving company when they arrive? Determine payment details to avoid any confusion. Realtor Luxury Homes
Continue     sorting belongings, dividing them into what will go in the van, what will     go with you and what you are giving away or disposing of. Macdonald Highlands Homes for     sale
If you     have high value items (like antiques) that you will be shipping, obtain an     appraisal and get receipts. Macdonald     Highlands Realtor
Make     travel arrangements. If you will be flying, remember that most airfares     are cheapest if booked at least 30 days in advance. Real Estate Agent Las Vegas
Reach out     and network with others, such as co-workers in Las Vegas and your real     estate agent for physician referrals. Realtor Macdonald Highlands
Take care     of financial arrangements like transferring bank accounts, contents of     safe deposit box, notify your broker or investment counselor and settle     any outstanding bills. Southern     Highlands Realtor
If you     have a pet, take it to the vet to be immunized in preparation for the     journey. Real Estate Agent     Southern Highlands
Arrange     for transportation of your pet and obtain copies of your pet’s records or     licenses.
  Southwest Vegas Real Estate Agent
If you are     moving into or out of a high-rise building, contact the property manager     and reserve the elevator for moving day. Southwest Vegas Homes for Sale
Drop off     the completed return of address information to your local post office and,     if possible, let your neighborhood letter carrier know that you’re moving.     Realtor Southwest Vegas
If     necessary, consider hiring a sitter for kids and pets on moving day. Real Estate Agent Southwest     Vegas
Clean out     your refrigerator and plan to eat the frozen food left in the freezer. Queensridge-Peccole ranch Real     Estate Agent Throw away perishables you won’t eat in the next few     days. Real Estate Agent     Queensridge-Peccole ranch
Plan to     give any plants you can’t take with you to a loving home. Spanish Trails homes for sale
If you are     driving to Las Vegas, make sure your car is serviced and the tires are     checked. Realtor Spanish     Trails
Now is the     time to pack your luggage and anything you are not sending with the     movers. Spanish Trail Real     Estate Agent Keep it all together in your corner of your bedroom     so you can add to it up until the time you leave. Real Estate Agent Spanish Trail
Use only     those household items you absolutely must, like towels, sheets, pans, a     coffee pot, a broom and a few tools; anything else should be packed. Realtor Spanish Hills
Spanish Hills Real Estate Agent
Explore     the new area with your family and try a new restaurant and plan to shop at     your grocery store. Realtor     Anthem Country Club Preparing the family’s first home-cooked meal     can be a real celebration. Anthem     Country Club Real Estate Agent
It’s time     to purchase home furnishings, including drapes and additional furniture     for empty rooms. Real Estate     Agent Anthem Country Club
Reach out     to your new neighbors and introduce yourself and your family. Chances are,     the neighbors have children of similar age, which will help your child to     feel a part of the new neighborhood. Realtor Henderson
Join a     health club and get back to the routine that has been disrupted by the     move. Henderson Real Estate     Agent
Now is a     great time to peruse your copy of Relocation Resources Las Vegas to learn     about regional attractions, recreation and other fun facts about living in     the Valley. Henderson Homes     For Sale
Luxury Real Estate for Sale in Las Vegas
 There is now additional urgency as major decisions are being made and the community is learning about your move, which will generate phone calls and well wishers. Try not to get distracted from the main event as six weeks remain. Real Estate Agent Luxury Homes
Las Vegas Realtor
You’re nearly half-way there and so much has already been done. Las Vegas Real Estate Agent Give yourself a pat on the back and try not to stress out about what you’re forgetting! Reassure the family that everything will be great in your new home. Get them excited about features in the new home and activities they can look forward to. Recommended Realtors in Las Vegas
Luxury Home Real Estate Agent in Las Vegas
Now, you’re either feeling stressed out or you’re in denial! If you’re overwhelmed, ask others for help and organize an informal get-together. Macdonald Highlands Real Estate Agent In exchange for help in packing and sorting, you’ll supply the treats for kids and wine for the adults. Not only will you get help, but you can enjoy spending time with good friends for the last time in your home. Real Estate Agent Macdonald Ranch
Southern Highlands Homes for Sale 
Queensridge-Peccole ranch homes Real Estate At last, the final week has arrived along with the last-minute thoughts about what’s still not done. Queensridge-Peccole ranch homes for sale You should be off work this week to address the final details and provide moral support to your family. Realtor Queensridge-Peccole ranch
You can finally relax even though unpacking is yet to begin. Congratulate yourself and your family on surviving the move. Anthem Country Club homes for sale
 Real Estate Agent Henderson
As you peruse the immense amount of Las Vegas information, you’ve no doubt created a list of questions that you need answers to.  Multi Family Commercial Real Estate How to get around the city. What your anticipated living expenses will be. Multi Family Commercial Realtor How to contact fire, police and hospital services. Even how to adapt to the desert climate Commercial Multi Family
 David E. Wyner, dewrealestatelv
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linqcondo36-blog · 4 years ago
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Property Hotel Buyer Tips instructions Condo Hotels May Be the Finest Vacation Home Deal To get Small Investors
Be sure to think of all options before buying a holiday home.
This article makes it easier to recognise the positives and negatives of property hotel ownership as a possible, really-makes-sense substitute for owning either the outright vacation home or possibly a limited use timeshare.
People generally require a clean, relaxed place to sleep and a middle meeting place for family. The real action and enjoyment, however , generally takes place beyond your home during vacation exercises. So larger living rooms do not always equate to more significant vacation ownership benefits.
Rental hotels (often referred to as the "condotel") are usually smaller sized packages located in popular resort place such as seaside, mountain edge, and desert playground web 20 such as Las Vegas. Some condotels are also situated in downtown as well as University settings. Although any condotel appears to visitors to certainly be a typical hotel, individuals find purchase single suites, or perhaps room, within the hotel. You will discover both new, purpose-built Condotels and conversions. The Linq at Beauty World condo
For example , with Orlando a new Condotel can be purchased at The Blue Went up by or The Palms Hotel and also Villas. Both are near key theme parks and equally offer comfort and convenience. Right after are price, size, resort star rating, feel connected with luxury, amenities, and persisted operating expenses. The price currently will range from about $339, 000 to millions inside Blue Rose, to with regards to $139, 000 to $189, 000 at The Palms Lodge and Villas. The Pink Rose is under progress, will be larger and more fantastic, have a five-star rating, and get much higher operating costs linked to ownership. The Palms Hotel room and Villas condotel is often a conversion from a Hilton model hotel, smaller in size, three-star performing, comfortable but not luxurious, and has now lower operating expenses in connection with ownership.
In a fixed-weeks or maybe points based timeshare, consumers purchase very limited use of some sort of resort. Buyers of a condotel or outright vacation residence own their residence overall. In both cases an master can usually stay in it, purchase it, or sell it. In most cases, however , the owners model use may also be somewhat confined.
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In condotels, in-house motel management companies rent out the particular individually owned units regarding their owners. For this service many people receive a portion of the lease income for that specific system. Condotel owners and their tenants have use of the resort's conveniences while staying there. If an owner can use typically the amenities while a letting guest is staying in all their unit depends on particular condotel association rules and the rental filing documents in that status.
Owning a condotel differs via buying and managing a regular condo or vacation property in several other respects.
Although typical condos are built by means of housing developers, condo areas are often developed by hotel along with resort companies such as The Ritz Carlton Hotel Company, Starwood Hotels & Resorts as well as Four Seasons Hotels. Condotel prices are usually substantially larger per square foot over a traditional resort condo.
Extra cost of purchase, howevr, assure some benefits. The owner features access to the in-house supervision company services. Management will probably market and rent this by the night or to get long or short periods of time. The operations company charges owners part of rental income (typically 40% to 60%), in addition to handles the maintenance, room get-ready after a guest departure, coffee grounds keeping and accounting. Managing also oversees hotel features such as pools, sport process of law, golf courses, exercise spaces, and so forth. The Linq price
When buying a traditional getaway condo or single family house, an owner must get an outside management company publicize and lease the property. There could possibly be far less flexibility in putting your vacation property in and out of an rental program. Finally, often the management company may not be competent to effectively market the property across the country. Hotel management companies typically have access to Global Distribution Programs (GDS) with many important online in-bound reservations programs by Pegasus, Sabre, and the more modern Secure-Res.
Many condo lodge buyers have had past achievements with condotels in Fl. Florida destinations often give high-demand tourist activities and plenty of past buyers bought at some time when real-estate prices ended up appreciating. Today, appreciation presents itself likely in the long-term and not as rapid as the first 2000s.
A prospective condotel buyer should ask: "Does the resort area where hotel is located really draw in tourists and result in hotel room guests? ". In verifying with the Orange County Readers and Convention Bureau, the right formula to this question in the Orlando, fl area market is a big "yes". Annual occupancy at all Holiday hotels averages over 60 per cent and many resort properties near important attractions have even bigger occupancy.
Ask the managing company about the condotel's REVpar, an acronym for Profit Per Available Room. That dollar figure is the most widely used food industry benchmark for judgement, judgment a hotel's gross profit potential.
The bottom line is always in relation to "the numbers". Whether your capacity to pay enables the purchase of a new five-star luxury condotel or maybe a more modest three movie star property, check all the statistics and cross-verify information wherever possible
Condo hotels today be aware of less than 10% of all family vacation homes in the U. Nasiums., according to the National Association of Realtors. But you should find that this form of vacation property between a single family vacation household and a resort timeshare is a overall best deal.
The Linq @ Beauty World by BBR Holdings. Hotline 61009963. Get Discounts, Direct Developer Price, Brochure, Floor Plan, Price List & More. New Freehold Mixed Development Condo in Bt Timah
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linqcondo17-blog · 4 years ago
Text
Property Hotel Buyer Tips : Condo Hotels May Be the Very best Vacation Home Deal Regarding Small Investors
Be sure to take into account all options before buying if you want a home.
This article makes it easier to know the positives and negatives of property hotel ownership as a possible, really-makes-sense substitute for owning either a great outright vacation home or possibly a limited use timeshare.
Tourists generally require a clean, cozy place to sleep and a core meeting place for relatives and buddies. The real action and exciting, however , generally takes place outside of the home during vacation routines. So larger living places do not always equate to better vacation ownership benefits. The Linq @ Beauty World Showflat
Rental hotels (often referred to as the "condotel") are usually smaller sized bedrooms located in popular resort location such as seaside, mountain aspect, and desert playground complexes such as Las Vegas. Some condotels are also situated in downtown as well as University settings. Although any condotel appears to visitors to be considered a typical hotel, individuals find purchase single suites, or maybe a room, within the hotel. You can find both new, purpose-built Condotels and conversions.
For example , inside Orlando a new Condotel could possibly be purchased at The Blue Went up or The Palms Hotel and also Villas. Both are near key theme parks and the two offer comfort and convenience. Right after are price, size, resort star rating, feel regarding luxury, amenities, and continuous operating expenses. The price nowadays will range from about $339, 000 to millions inside the Blue Rose, to with regards to $139, 000 to $189, 000 at The Palms Lodge and Villas. The Azure Rose is under improvement, will be larger and more magnificent, have a five-star rating, and possess much higher operating costs linked to ownership. The Palms Hotel room and Villas condotel is actually a conversion from a Hilton company hotel, smaller in size, three-star scored, comfortable but not luxurious, and possesses lower operating expenses in connection with ownership.
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In a fixed-weeks or maybe points based timeshare, customers purchase very limited use of some sort of resort. Buyers of a condotel or outright vacation household own their residence downright. In both cases an operator can usually stay in it, hire it, or sell it. Occasionally, however , the owners model use may also be somewhat minimal.
In condotels, in-house motel management companies rent out often the individually owned units on the part of their owners. For this service they will receive a portion of the local rental income for that specific system. Condotel owners and their lessees have use of the resort's conveniences while staying there. Regardless of whether an owner can use the actual amenities while a hiring guest is staying in their particular unit depends on particular condotel association rules and the rental filing documents in that express. The Linq @ Beauty World
Owning a condotel differs via buying and managing a standard condo or vacation house in several other respects.
Whilst typical condos are built simply by housing developers, condo accommodations are often developed by hotel along with resort companies such as The Ritz Carlton Hotel Company, Starwood Hotels & Resorts as well as Four Seasons Hotels. Condotel prices are usually substantially larger per square foot compared to a traditional resort condo.
The excess cost of purchase, howevr, brings some benefits. The owner provides access to the in-house managing company services. Management may market and rent this by the night or regarding long or short periods of time. The administration company charges owners a part of rental income (typically 40% to 60%), in addition to handles the maintenance, room get-ready after a guest departure, lands keeping and accounting. Supervision also oversees hotel features such as pools, sport tennis courts, golf courses, exercise bedrooms, and so forth.
When buying a traditional getaway condo or single house, an owner must seek the services of an outside management company to advertise and lease the property. There could be far less flexibility in putting your vacation property in and out of your rental program. Finally, the particular management company may not be capable of effectively market the property across the country. Hotel management companies generally have access to Global Distribution Devices (GDS) with many important net in-bound reservations programs by Pegasus, Sabre, and the new Secure-Res.
Many condo lodge buyers have had past accomplishment with condotels in California. Florida destinations often offer you high-demand tourist activities and lots of past buyers bought at a moment when real-estate prices have been appreciating. Today, appreciation shows up likely in the long-term although not as rapid as the early on 2000s.
A prospective condotel buyer should ask: "Does the resort area when the hotel is located really appeal to tourists and result in hotel room guests? ". In looking at with the Orange County Guests and Convention Bureau, the response to this question in the Orlando, fl area market is a big "yes". Annual occupancy at all Holiday hotels averages over 60 per cent and many resort properties near important attractions have even bigger occupancy.
Ask the supervision company about the condotel's REVpar, an acronym for Earnings Per Available Room. This specific dollar figure is the most widely used food industry benchmark for judgment a hotel's gross earnings potential.
The bottom line is always in relation to "the numbers". Whether your finances enables the purchase of a new five-star luxury condotel or maybe a more modest three superstar property, check all the amounts and cross-verify information whenever you can
Condo hotels today are the reason for less than 10% of all family vacation homes in the U. T., according to the National Association of Realtors. But you might find that this form of vacation title between a single family vacation residence and a resort timeshare will be the overall best deal.
The Linq @ Beauty World by BBR Holdings. Hotline 61009963. Get Discounts, Direct Developer Price, Brochure, Floor Plan, Price List & More. New Freehold Mixed Development Condo in Bt Timah
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