Based on the weak dollar, tourism is at a record high. Even without Sonesta, they have done a fantastic job in their first year. However, I believe the name sells itself. Unit #1102 is in the final 30-40 days of short sale progress. The appraisal has been done, and my calculations show it to be worth around $235k to $250,000 based on 2008 closed sales. This #1102 Trump Resort Jr. Suite (667 Sq Ft) faces West over the sunset views.
There are now 2 offers on the table, and the buyers have been surprisingly patient in this slow approval process. It should be a slam dunk approval as the seller’s debt is slightly above the asking price. The original asking price (with another agent) was above $300k. The seller has chased down the Sunny Isles Beach real estate market to meet my pricing suggestions and finally sell.
Disclosure: this is my listing. It will soon sell within (or above) the price point disclosed, and I would be happy to receive additional offers for the seller & bank after answering ALL questions…
Beach Resort Income Split
The hotel administration system is complex. Here is information based on my knowledge. I would suggest checking with management also to confirm if this is right on track and 100% accurate.
Option #1– owner chooses to rent out on their own. No services are offered other than the pool. If you or your guests want towel service, beach service, fitness center privileges, or any services, it is an additional 35 dollars per day per person. They make placing your property with the most attractive to avoid these fees.
Option #2– 70/30 split. 70% goes to the hotel; the owner may use it for up to 6 months per year.
Option #3– 60/40 split- 60% to the hotel, and the owner may use certain weeks per year.
Option #4– 50/50 split- (most common) 3 weeks per year, including 1 week as holiday rental (i.e., Christmas)
There are other hidden miscellaneous fees, such as the Trump name usage, travel agency fees, and corporate/group discount fees, which add to another 12% approximately. What is most important is your net, and you will soon find no one will quote you on this as it can change at any time based on season, events, holidays, and acts of God (i.e., Tropical Storm FAY). 2008 Income for 3 MO INCOME on #1102 show $2,147 – $1,172 – $1,883 (Averages $20,808 Year End NET).
My understanding is a 70% occupancy for 2007, with the number estimated higher this year based on the weak dollar. Sunny Isles Beach is rated as America’s top emerging travel destination by TripAdvisor, and we are seeing a great demand pent up for purchase at this price point.When priced at today’s market value, such as #1102, I do not see the Trump International Beach Resort prices dropping more than 10% below where they are today. If you’d like to receive new blog postings & updates once available, you can easily be notified by RSS feed (see upper left column) or by email every time a new posting occurs. Have a productive day, and contact me today or call toll-free at 1.888.383.7326.
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