Condo hotels are red hot
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CONDO HOTELS ARE RED HOT… PowerPoint PPT Presentation


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CONDO HOTELS ARE RED HOT…. …condo hotel mortgages are not.

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CONDO HOTELS ARE RED HOT…

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CONDO HOTELS ARE RED HOT…

…condo hotel mortgages are not


Condo w/ Rental Program: a traditional condo with a working kitchen, over 600 sq ft, possibly with access to hotel amenities, but situated outside of the hotel. Less than 15% commercial space in the project. Financing is plentiful, easy and up to 100% for your buyers thru FNMA/FHLMC.

Resort Condo: similar to above, a traditional condo ‘carved out’ within a mixed use resort, may participate in limited rental program, but likely to be used primarily as second home.

Condo Hotel: typically a new construction hotel project, with suites that exceed 600 sq ft, traditional living floor plans with kitchens. Condo units are part of the nightly/transient rental business of a commercial hotel.

Hotel Condo: typically a conversion of an existing hotel to condo ownership. Units are less than 600 sq ft, have limited kitchen/wet bar, full hotel amenities, nightly rental, entirely part of the commercial hotel operations. Limited second home use, a rental for 11+ months/yr.

Condotel: a less than 3-star motel that has been converted to condo ownership. Yesterday’s product.

defining ‘condo hotel’

America’s First Second-Home Lender

Learn more@ www.vacation-finance.com**Source: Bob Waun, White Paper #4, Oct 2005


we’ve been thinking ahead…

Lender’s View of Condo Hotel/Hotel Condo

  • we are a developer’s best exit strategy…

  • buyer financing is your problem too…

  • a condo-tel (motel) is not a condo hotel, many lenders do not see a difference

  • lenders do not use the rental income to qualify

  • why FHMLC/FNMA/lenders struggle to finance condo hotel:

    • less than 600 sq ft

    • no ‘real’ kitchen

    • commercial percentage > 15%

    • less than 2 years turned over to HOA

    • separately metered utilities

    • pooled rents

    • commercial investment property or second home?

    • timeshare/fractional content

    • > 20% project concentration

    • no secondary market – yet…

America’s First-Second Home Lender www.vacation-finance.com


we offer…

  • 80% portfolio arm mortgages

  • rates within 75 bps of a typical investment home purchase

  • no minimum sq ft or kitchen requirements

  • a ‘real’ understanding of a true condo hotel and why your buyers want them

  • 100% project financing – one stop

  • experienced people who understand buyers to reinforce your sales effort

  • Unique Insurance and Commercial Loan solutions

  • unique point-of-sale joint marketing relationship (with approved projects/developers)

America’s First-Second Home Lender www.vacation-finance.com


let’s work together

  • get your project approved for end loans

    • documents needed are listed on www.vacation-finance.com

  • have your buyers pre-approved on site. when you bought your last car, did you wait 2 weeks to get approved for the loan?

    • see our exclusive quick app at www.vacation-finance.com

  • does your project work for a second home buyer?

    • is it an expense offset or are you selling income?

  • is your sales effort complimented by the banker’s message?

America’s First-Second Home Lender www.vacation-finance.com


Get to Know Our Experienced Team…

  • Bob Waun, CEO [email protected]

  • Tom Balames, Chairman

  • Sharon Jacon, VP Florida Lending

  • Sara Hansemann, VP Operations

  • JH Heck, N. MI Lending

  • Ed Walsh, Commercial Lending

  • George Yedinak, Wholesale Lending

  • Danielle Hammel, Ins/Risk Mgmt

    Over 15 years experience on average…

America’s First-Second Home Lender www.vacation-finance.com


leave nothing to chance

You’re buyers are elated about their condo hotel purchase while on vacation…

What will they worry about when they go home? “buyers remorse is a natural/real phenomenon”

  • Answer their concerns before you close the sale…

    • Financing: get your buyers approved at the point of sale

    • Insurance: We have developed a unique condo hotel liability insurance product, that truly covers your buyer’s risks

    • Appraisals: our staff appraisers understand what a condo hotel is and is not, we know how to properly value your project’s sales

    • Title Insurance: why spend hours explaining your project to a title company, we have pro’s who already understand

More @ www.vacation-finance.com


own your vacation

vacation-finance.com

America’s First-Second Home Lender www.vacation-finance.com


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