Condotel financing in Wisconsin?

Question

Hello,

I've been looking at two condos in the Wisconsin Dells area and im running into the issue where they are in "condotel" complexes. Having a tough time finding lenders that would finance this purchase and if possible with 5% down.

Any help would be appreciated.

Thanks,

Andrew

Joe Sroka · Answer

Blue harbor still going ok? Been thinking about that place for sometime now since I have 3 children

Matthew Bossick · Answer

The ended up not lending on this deal. I was actually pretty glad when all was said and done since this deal would have closed 2 weeks prior to the pandemic.

Mandeep Pahuja · Answer

@Matthew Bossick, Can you please share the lender details who funded the loan with a 30 year term for a condotel.

Matthew Bossick · Answer

@Dustin Young Thanks for the reply! I was actually able to get the 5/1 ARM changed to a 30 yr fixed on the condotel.

Dustin Young · Answer

The first go around of refinancing was fine, same bank, no issues, easy peasy. The second time around which is coming up we received a letter that they didn't want to extend the terms and the balance would be due upon completion of the 5 year term. However...because of my new career in investment real estate and a portfolio that has grown my banker has offered to treat it like any of my other properties. It should be rolled in my commercial portfolio. But I have until June for them to change their mind... Good luck!

Matthew Bossick · Answer

@Dustin Young Sorry for reviving this really old thread, but I have a question on refinancing a condotel. I am about to proceed with a 5/1 ARM with 20% for a condotel in Orlando, FL but have concerns about refinancing in year 6. Was it relatively simple to find a lender to refinance the condotel?

Dustin Young · Answer

Correct, at Blue Harbor. We bought REO for $104k but it was still assessed at $330k. Assessment is down to $98K.  I wish I had bought more, management has really turned the place around and occupancy has increased. We had a cold call letter offer to buy us out but with two small kids we declined.