CONDO HOTELS ARE RED HOT…

…condo hotel mortgages are not

defining ‘condo hotel’

• 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.

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

America’s First Second-Home Lender

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…

we’ve been thinking ahead…

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

• 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)

we offer…we offer…

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

• 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

let’s work together

• Bob Waun, CEO bwaun@vacation-finance.com

• 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…

Get to Know Our Experienced Team…

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

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

leave nothing to chance

More @ www.vacation-finance.com

own your vacation

vacation-finance.com

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