Real Estate Financing, Loan Program for Condo Hotels & Other Property

Q: I am considering purchasing a condo hotel unit or other type of vacation home property. However, I’m concerned that I won’t be able to get real estate financing in this economy, despite my good credit. Can you recommend any loan programs?

A: Yes, loans are available, even in today’s credit-crunched economy. We at Condo Hotel Center have come across an innovative finance program for real estate through a reputable lender.

You’ll need to meet only one qualification: you must own a securities portfolio (stocks, mutual funds, CD's, bonds or T-bills), which you can pledge as collateral.  The real estate lending program works this way:

• Minimum loan amount of $100,000; maximum loan amount of $200 million+. 

• Terms are typically 1-7 years.

• Interest rates currently start at 4.35%, interest only.

• There are no upfront fees.

• No pre-payment penalties.

• The loans have limited recourse and no margin calls.

• Borrowers undergo no credit checks or FICO scores to qualify.

• Borrowers can use the money for practically anything. 

• Loans can be completed quickly, typically in less than 5 days.

• Stocks are safe and secure.  They remain in your account, name and title.  Never sold or traded.

• No appraisals are required. 

• Hassle-free process.

At the end of the term, a balloon payment of the loan balance is due.  You can choose to pay it off at that time, or alternatively, you can take any of the following three actions:

1. Refinance the loan.
2. Sell the securities that you’ve pledged to repay the loan.
3. Walk away from the securities you’ve pledged, even if the value of them at that time is less than the amount borrowed, and no negative credit bureau reports will be filed.

The loan company is well respected throughout the industry.   The Better Business Bureau has rated this company A+. 

If you think this loan program could be of interest to you, contact me, and I would be delighted to give you more details.   Joel Greene, Joel@CondoHotelCenter.com.

The above question was submitted via e-mail by a visitor to www.condohotelcenter.com. The answers were prepared by Joel Greene, a licensed real estate broker with Condo Hotel Center which specializes in the sale of condo hotel units and fractional ownerships in private residence clubs.