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

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… America’s First-Second Home Lender

get your project approved for end loans –documents needed are listed on 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 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 let’s work together

Bob Waun, CEO 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

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

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