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Florida is goin’ down (still further) …

RIP

As pointed out in this post, yet another million-dollar real estate concept has bitten the dust in Central Florida. This time it’s the condo-tel. Que? Let me explain — the idea is both simple and (if you ask me) makes perfect sense. It springs from the same well as the idea of conventional condo’s; specifically, a hotel looks to guests to “buy” their room or suite, then “rent” it back to the hotel to book with other guests when the owner isn’t there to use it. Many hands lighten the load. Everyone wins. Well, not everyone. See, although it has been just a year since the condo-tel movement (fad?) peaked in places such as Orlando and Miami, it is already officially dead according to news people and analysts from Las Vegas to Florida. Why? Turns out that people who placed deposits are backing out in droves, primarily because (you knew this was coming) they were planning on buying with HELOC money they now can’t borrow due to the liquidity crunch that sabotaged their home’s value, caused interest rates to soar, given underwriters around the country Excedrin headaches, and sucker-punched real estate from coast to coast. Plus, with former mortgage cream-puffs such as American Home Mortgage unable to fund $800 worth of home loan commitments (and counting), it looks like the crisis continues to resonate even with innovative ideas like the condo-tel.

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    […] you ask me) makes perfect sense. It springs from the same well as the idea of conventional […]Read More… [Source: bankruptcy […]