CONDO HOTELS ARE RED HOT

1
CONDO HOTELS ARE RED HOT
condo hotel mortgages are not
2
defining condo hotel
Americas First Second-Home Lender

• 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. Yesterdays product.

Learn more_at_ www.vacation-finance.com
Source Bob Waun, White Paper 4, Oct 2005
3
weve been thinking ahead

• Lenders View of Condo Hotel/Hotel Condo
• we are a developers 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 gt 15
• less than 2 years turned over to HOA
• separately metered utilities
• pooled rents
• commercial investment property or second home?
• timeshare/fractional content
• gt 20 project concentration
• no secondary market yet

Americas First-Second Home Lender
www.vacation-finance.com
4
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)

Americas First-Second Home Lender
www.vacation-finance.com
5
lets work together

• get your project approved for end loans
• documents needed are listed on www.vacation-financ
  e.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-financ
  e.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 bankers
  message?

Americas First-Second Home Lender
www.vacation-finance.com
6
Get to Know Our Experienced Team

• Bob Waun, CEO bwaun_at_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

Americas First-Second Home Lender
www.vacation-finance.com
7
leave nothing to chance

• Youre 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 buyers risks
• Appraisals our staff appraisers understand what
  a condo hotel is and is not, we know how to
  properly value your projects sales
• Title Insurance why spend hours explaining your
  project to a title company, we have pros who
  already understand

More _at_ www.vacation-finance.com
8
own your vacation
vacation-finance.com
Americas First-Second Home Lender
www.vacation-finance.com