At the Downtown Plaza condo hotel in Toronto, Canada, who will pay maintenance in the guaranteed rental plan?
The owner. He pays for everything except your debt service. Q: If the buyer doesn’t choose the guaranteed 6% rental plan, how will rental income be divided between the owner and management? A: All revenue for the property will be pooled together so that each member will get an equal share on a pro rata basis. Q: How would you get financing from the U.S. for the Canadian condo hotel? A: My lending source says that it is probably not going to be possible. He suggested dealing with any of several Canadian banks. My sales consultant at the property said that Canadian banks are financing these purchases, but may request 35-40% cash down. This is obviously higher than the 25% required by the developer, as per the contract. Of course, when you factor in the conversion rate of money, it is more like 30% cash down US. Q: What are the terms for payment of the 25% deposit? A: 1% of the purchase price is due at the signing of the contract. There is a 10-day rescission period. (This is shorter than