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