Timeshare resort developers often use industry-specific financing services because they understand the unique needs of the timeshare industry. These services can provide developers with the financing they need to purchase land, build resorts, and market and sell timeshares. Whether you're building a resort from the ground up, buying or expanding an existing resort, or need additional liquidity from your timeshare or resort, securing financing can be essential for the longevity of your business.
What to Look for in a Bank
A resort developer should look for a bank that has experience in financing resort and timeshare properties. The bank should also be able to provide financing for the purchase of the property, as well as for the construction and development of the resort. The bank should also be able to provide financing for the operation of the resort, including the maintenance and upkeep of the property.
The banking needs of the timeshare resort industry are unique because the industry is highly regulated. Timeshare resorts must comply with a variety of state and federal regulations and must meet certain standards in order to operate. As a result, timeshare resort developers must work with banks that understand the industry and can provide the necessary financing.
Five Tips for Researching Timeshare Financing Options
It is important to do your research before you enter into any timeshare financing agreement. Here are five tips to help you when researching resort financing.
1. Know the Difference Between Pre-approved and Pre-qualified Financing
Pre-approved financing means that you have already been approved for a loan up to a certain amount. Pre-qualified financing means that you have been given a general idea of what you may qualify for, but have not yet been approved for a loan.
2. Compare Interest Rates and Terms from Different Lenders
Not all lenders offer the same interest rates or terms, so it's important to compare your options before you choose a loan.
3. Make Sure You Understand All of the Fees Associated with the Loan
Some lenders charge origination fees, application fees, or other miscellaneous fees. Be sure to ask about all of the fees before you agree to a loan.
4. Read the Fine Print
It's important to read and understand all of the terms and conditions of the loan before you agree to anything.
5. Get Help From a Professional
If you're not sure about something, or if you have questions, it's always a good idea to get help from a professional. Working with a reputable company like Western Alliance Bank that specializes in timeshare and resort financing can help make sure you have an expert to guide you through the process. They've mastered the art of understanding the unique needs of the timeshare industry and can help at every step of the process.
Choosing Your Resort Financing Solution
Before choosing your resort or timeshare financing solution, consider what aspects of your project your lender can support you with. Your loan needs might span from land acquisition, construction loans, homeowners association (HOA) loans, and more. Working with one lender that can support you in your specialized needs for your timeshare financing can ensure your lending process is smooth by working with a comprehensive solution.
When researching resort and timeshare financing, it is to your advantage to work with a lender specializing in your specific needs. Finding a comprehensive solution with industry-specific expertise to support you in your resort and timeshare financing will give you the guidance you need to feel confident in your investing decisions.
