HOW TO BUY A UNIT IN PLAZA RESORT & SPA IN DAYTONA BEACH. TALKING ABOUT VALUES

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

PlazaThis is now a daily occurrence. I get e-mails or calls from people who are interested in Plaza Resort and Spa, a premier Daytona Beach condo-hotel. They are asking how to buy a unit in Plaza Resort & Spa in Daytona Beach. Lets start talking about values.

Prices start from high $40s, nice 4-star resort, and with prices like these it beats any other condo-hotel in the area.

The problem is that my callers think that these prices are the market values in Plaza, and nearly everyone thinks that in this market they can get things for half of the price.

Unt#

Bedr

Bath

Size

Price

 2006 price

Pennies on $

728

0

1

427

$48,900

 $  197,721

 25

721

0

1

576

$49,000

 $  266,716

 18

336

0

1

427

$49,900

 $  294,261

 17

524

1

1

736

$49,900

 $  307,262

 16

621

1

1

576

$54,900

 $  261,381

 21

433

0

1

372

$55,000

 $  294,300

 19

616

0

1

372

$55,000

 $  206,791

 27

1108

0

1

462

$55,000

 $  317,022

 17

729

0

1

427

$55,900

 $  197,721

 28

110

0

1

339

$56,750

 $  186,300

 30

718

0

1

372

$57,000

 $  232,200

 25

1103

0

1

372

$58,900

 $  225,540

 26

333

0

1

372

$59,900

 $  274,673

 22

1416

0

1

379

$60,000

 $  242,292

 25

420

0

1

372

$64,500

 $  162,200

 40

1402

0

1

372

$65,000

 $  251,225

 23

116

0

1

427

$69,000

 $  258,100

 27

1109

0

1

513

$69,900

 $  367,323

 19

705

0

1

513

$73,999

 $  409,762

 18

519

0

1

372

$74,900

 $  202,700

 37

Well, market values in Plaza Resort & Spa are NOT in the $40s and $50s. They are 3 times higher. Average price for the unit in Plaza Resort & Spa including all these cheap units is still $165,210.10. And this $165,210.10 is half price from what it was in February of 2006, when units were sold by the developer. So, if you are looking to buy for 40-50 cents on a dollar, it will be 40%-50% from $165210.10.

Not $48,900, not 49,900, not $54,900. Why then it is a surprise that there are offers already on those units and often more than one offer for a unit?

Look at the table with the list of 20 least expensive units. Blue lines show the units that my clients have put offers on. Some accepted, some still waiting, but these are only my clients. I am not the only one selling in Plaza Resort & Spa in Daytona Beach .

9 out of 20 least expensive units are my clients’ units. Well, we sell more than anybody else there now, maybe more than all others combined, but still we are not the only one.

And the way we get so many units is because our clients either acted within the first few hours after the listing pops up on MLS, or they authorized me to present offers on their behalf. Timing is crucial when  buying in Plaza Resort & Spa.

Not that the real estate market in Daytona Beach is hot, not that the condo-hotel market in Daytona Beach area is hot, it is not, but Plaza Resort & Spa is a small island of hot-hot market.

Why? The answer is simple. Look at the table. You can buy units here from 16.24 cents on a dollar to 39 cents on a dollar. None other condo-hotels offer that much value.

For the last month or two, the prices have changed from the mid- to high $30s to $50s. And when the market is hot, who moves fast he gets the prize.

Now, that you know the values, and if you want to get a unit in Plaza Resort & Spa, do not sit and research and think. Procrastinating may cost money.

For the update on Plaza Resort & Spa or questions call Jon Zolsky.

Click HERE to see MLS listing in Plaza Resort & Spa 

For other blog posts about Plaza Resort & Spa check these links:

http://activerain.com/blogsview/959589/Why-Is-It-So-Expensive-Wrong-Question
http://activerain.com/blogsview/821535/Oceanfront-Unit-in-Plaza-Resort-Spa-For-Just-86900
http://activerain.com/blogsview/791490/The-Plaza-Resort-Spa
http://activerain.com/blogsview/715670/Plaza-Resort-Spa-Life-After-Bankruptcy
http://activerain.com/blogsview/696817/Daytona-Shoreline-Hotel-Tycoons-File-for-Chapter-11
http://activerain.com/blogsview/622333/Buying-a-Condo-Hotel-Real-Life-No-Nonsense-Scenario
http://activerain.com/blogsview/619452/How-To-Spot-A-Real-Deal
http://activerain.com/blogsview/570982/Plaza-Resort-Spa-Resort-Condo-Hotel-Market-Snapshot FunCoast realty logo

 

 

 

  

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Rainmaker
973,701
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

Jon, this is an outstanding value. What are the monthly fees?

May 12, 2009 09:54 PM
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Debe Maxwell
Charlotte Homes for Sale - Charlotte Neighborhoods
www.AtHomesCharlotte.com | Savvy + Company Real Estate

Hi Jon!  WOW!  What a gorgeous place and AMAZING values!  I was just discussing with my brother-in-law, that we all need to invest in one of these!  I'll let you know if I talk him into it!!

Have a wonderful Wednesday and best of luck selling these awesome condos!

Debe in Charlotte

May 12, 2009 09:56 PM
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Jon Zolsky, Daytona Beach, FL
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Sharon - $529 a month plus $16 with pennies a month for Liability and content insurance, which is mandatory if you keep it on rental program.

The good part is that they generate enough income to offset both maintenance fees and taxes, if you calculate it on the annual basis. Meaning that you will get a fat check in February, March, in summer months, but not as great in January, so you might have to write the check to cover the gap in the slowest months, but my clients tell me that through the year the unit pays for itself and there is some cash for the owner after all expenses paid.

In this slow economy not all condo-hotels break even, while they were just 3-4 years ago.

May 12, 2009 11:22 PM
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Jon Zolsky, Daytona Beach, FL
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Debe - this is a 4-star resort with good amenities, good location. I have overstreched myself already and I am watching these deals with my hear bleeding (LOL)

Never in my dream could I imagine that the prices in Plaza would go so low...

May 12, 2009 11:25 PM
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Patricia Kennedy
For Your Home in the Capital
Evers & Company Real Estate, Inc.

What am I doing up here?  I should buy Unit 524 and head down there!  The building looks fabulous, and yeah!  What could happen at that price? 

May 13, 2009 07:39 AM
Anonymous #6
Anonymous
ADAM

John,

the HOA fees and the 50% cut for rent that the property management gets is definitely high. I spoke with Ashley and she told me you have the financials. Before I make a decision I need to review the financials and get a good idea of what the occupancy rates have been and typical rental rates as well as property tax rolls.  As you said time is of the essence so please get this data to me as quickly as you can please.

June 08, 2009 11:54 PM
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Jon Zolsky, Daytona Beach, FL
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Adam,

Ashley is the wrong candidate to talk to. She is Owner Realtions Manager and works with the owners, not with Buyers. It is just not her job.

In Daytona Area 50% to the management company is not a lot. Plaza takes 50% AFTER they take 3% for CC operations, and after they take 10% for cleaning, and after they take 3% for Furniture and fixtures replacement reserve. For the property like this they are operating on a very slim profit margin. But I think that what important is that they are renting the units and are in the black  according to the owners. But this is not and may not be a cash cow now and in the future.

Occupancy rates are not open to the public. It is the hotel operation and I do not expect them to disclose any part of it. They can always rightfully say that you can get the rental income figures from the Seller and this is all that matters for the Buyer. Rental rates (or rack rates) could be on the Internet, but I do not have them as hotels operate on "what you can get" basis. I know that today oceanfront room is $149 a night, ocean view is $129 a night and city view is $119 a night. The rate fluctuates week from week due to the season and even more so by the event.

Here is a very important thing. Rentals are part that I can't touch. Discussing income, derived by the effort of the third party (Southeast Management) is considered sale of the securities by SEC, and I am not licensed to sell securities and may easily lose my license.

We sell real estate and by law are not allowed to advertise any financial benefits of the purchase besides pure real estate (enjoyment, even resales at profit in the future, etc). You can have this information, but it has to come from the Seller. During the Due Diligence time we ask Sellers to provide you with this information, and they may instruct the Management to give the rental information to the Buyer, so we get it and forward to the Buyers, but we do not keep it. My clients who have units in Plaza tell me that they are "of course, in the black", but this is about the units which have no mortgage. My client tells me that it is not a great investment in terms that it has no great income, but that he does not have to reach into his pocket to pay maintenance fee and taxes.

This does not mean that you can't get it, it simply means that you have to get it from the Seller. And the way it is done is as part of Due Diligence. Meaning that when we have an agreed upon contract (price, terms) then the Seller has to provide the condo docs, budget, minutes of the last meeting, last quarter financial statement (as per contract). At this time you can also request the rental history from the seller. Sometimes it is not easy, like in foreclosures, where we can't get anything from the Lender. So it is sometimes a fight to get it, but we manage it for the Buyer. However, doing it before there is an accepted contract is not working.  

Taxes are public information, however, the buyer's taxes will not be the same as Seller's taxes. In a falling market the buyers' taxes most probably going to be lower, in a heating market they most probably will be higher. For the practical purposes you can calculate your taxes at 2%-2.2% but this is just an idea of the taxes, not exact. Taxes are public record and you can search it at: http://webserver.vcgov.org/vc_search.html Use the address as 600 Atlantic and you will get Plaza.

Adam, still I am confused. Do you have a unit in mind? I think this could be a good starting point. Then we can go from there.

I hope I answered your questions, 

June 09, 2009 01:09 AM
Anonymous #8
Anonymous
ADAM

John,

 

Nothing against you but this is one of the many problems I have with realtors. Ashley said the realtors can help me get the financials from the sellers. Why would I want to enter into a contract with out knowing any numbers. I don't need exact figures but conservative approximations not guarantees are very helpful. I see MLS income property listings all the time where the typical or actual rents and approximate gross annual incomes are disclosed. Sure you have to be careful with the wording  but if anything the more available info the easier it can be to sell the unit.

No I don't have a specific unit in mind because I don't have enough information like the location of the rooms and an idea of an average from the seller or realtor as to how often each month the unit is being rented.

 

For what its worth I had a realtor supposedly representing me that made $17,000 dollars on a sale and he basically did nothing. Most of my emails to him went unanswered and the property absolutely sucked. The association is still in the process of suing the developer for appauling workmanship. As a first time buyer I trusted my realtor and like a used car salesman he took me for a ride. So needless to say I am alot more careful with my real estate purchases now and very very weary of realtors.

June 09, 2009 04:40 AM
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Jon Zolsky, Daytona Beach, FL
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

The incomes discussed on MLS are usually about the properties rented by owners, and that is not the income derived from the activities of third parties, and there is no problem here. As there is no problem when we sell income producing property.

Income is different each month and in March there will be a fat check and in December there will not be enough, but if you calculate the whole year, the income according to my clients is covering maintenance fee and taxes. No matter how you look at it, you will come to the same.

Even if you know their ADR, you will end up with the same.

Ashley is saying that I have to handle it, but I do not lie. I do not have any figures for rental income for each type of unit. Ashley is not giving me those, she is not allowed, this is private info. Numbers are available to Buyers when they are in contract. Considering that there are oceanfront, ocean view and city view units, their incomes are different. My information about units paying for themselves come from Oceanfront units. I myself do not have that info on oceanside units and city view units. Knowing that Maintenance fee is $528.50 a month and taxes about 2%-2.2% of the value, you got yourself the needed approximate number. If you do not believe me, you can ask Ashley for the rental income numbers for any of the units in Plaza. See if she gives them to you. She would not give them to me, without the owner allowing it.

I do not have a problem to send the list of units there and mark oceanfront, ocean view, and city view, but I would still prefer to first show you the property, before writing any offers.

I understand that there are investors, who look at the numbers and when they see that they can buy, for example, a $300K property (what it was sold for in February 2006) for about $50K, which is in operation and assumably covers all the expenses, the consider it low risk and they buy not seen. That's fine.

If you, however, want to make sure that you not only buy something with good potential (due to the difference in value before and now), but that it is something that you like to use yourself, I would strongly recommend that you visit it before making any steps. 

June 09, 2009 08:14 AM
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Jon Zolsky, Daytona Beach, FL

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