Page 89 - New Agent Real Estate training book

Condotel script for first time buyers

Introduce yourself; explain you are the onsite sales agent for the resort.

(show them the listing inventory printed out)

We have a combination of 1, 2, and 3 bedrooms units usually available, which are a mix of

ocean front and ocean view. What type of unit would you be interested in, and what price
range?

(determine price range and unit type, narrow down on MLS sheet based on availability)

Are you familiar with oceanfront condo buildings? If not, let me explain how ownership works
here, even though this place operates like a hotel or resort, all of these units are privately
owned. Our average owner is from out of state, they use their unit as a vacation spot a couple

of weeks out of the year, and rent it out the rest of the time through the front desk to help
cover their costs.

Let me ask you a question, if you were to see a unit you liked, would you be using cash or would
you need to finance?

The reason I’m asking is to explain your options, If you are paying cash the transaction is
fairly simple, if you need to finance I need to explain how that works. This type building
is classified as a “condotel”, which means it’s a condo but functions also as a hotel
building. Many banks will not write a mortgage on a second home condotel building, so
you will need special financing. There are a few local banks that will lend on these
projects; however, they usually require 25% down and the terms are shorter that a 30
year fixed mortgage. I can put you in contact with bankers that I know can handle this
project, I just wanted you to know this upfront. I already know that your local bank or
big name banks probably can’t do these loans, and I don’t want to see you waste time
and loan fees for no reason.

Is 25% down something you could do?

(If they don’t have all cash, and can’t do a condotel loan, offer to show them non condotel
properties with conventional financing)

(If they are fine with the cash or condotel financing, you can show them units)

As an owner, you own your unit, just like a regular piece of property; however, you also on part
of the building. All owners together comprise what is called a Home Owner Association or
HOA. Together owners are responsible for maintaining their unit and also taking care of the
building, just like any other condo building. The HOA maintains the building exterior, common