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