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Timeshare Industry Final

In the timeshare indsutry, financing is critical because...

Both developers and purchasers need financing.

Which of the following is NOT a component of the cash flow projection?

Approximation of annual resort maintenance fees

Acquisition financing

funds that pay for the land

Equity financing

"seed money"

Construction financing


Development financing

prepares site for improvements

End loan financing

funds for consumer purchase

Timeshare financing does NOT allow for which of the following...

Developer resale initiatives.

Progressive lenders that offered coordinated sequencing of all of the loans necessary for timeshare development entered the industry in which decade?

. 1990s

What are the components of the initial loan submission?

information about the developer, the employees, the project, the expected loan types, amounts and sequencing.

If a lender chooses to secure their own appraisal, they are required to reveal all of the details of the appraisal to the developer.


Appraisals for the purpose of supporting timeshare financing are no different than appraisals to support individual home purchases.


With regard to timeshare financing, the value of a property is...

Income - (expenses + the time value of money)


determines whether engaging in development of project is practical and profitable


legal structure, historical performance, detailed resumes of key players


collateral in the form of end loan financing


bundling a variety of loans for sale to investors

A developer seeking equity financing is asking a lender to...

Put up most of the money to launch the project.

What is the typical term for acquisition loans?

4 years

Pre-sale financing provides funds for sales...

of units that have not yet been built

In end-loan financing, the down payment and term are typically...

10-20% and 5 to 10 years

Financing is an interesting and typically optional component of the timeshare industry.


In timeshare sales, the personal selling approach is referred to as a...

Consultative sales process

During the timeshare sales process, the "order of the day" is intended to...

remove prospect anxiety

During the sales presentation process, the "intent statement" is used to...

Let the guests know that the sales executive will ask them to buy something after the presentation

In the timeshare sales process, the sales executive is able to build the financial case for the product if...

The prospects usually spend approximately $4,000 to $5,000 on vacations annually.

Because of the nature of "relationship selling", the timeshare sale is generally made...

Within the first 15 minutes of the process.

Because of the complexities of the product, the timeshare sales person will spend approximately what percentage of the timeshare presentation on product knowledge?


During the timeshare sales process, financing is discussed during which phase?

Trial close

Approximately what percentage of timeshare sales are to existing owners?


The current industry average closing percentage is...


In the timeshare industry, the sales process normally follows which sequence of decisions...

Why vacation, why timeshare, why this company, why this location, why today

Approximately how many people who are offered a timeshare tour will accept the offer?


In the typical timeshare sales process, approximately how many purchasers will rescind?


Because of the upfront tour requirement, timeshare marketers can expect that what percentage of prospects will "show up"?


Timeshare marketing may be more appropriately referred to as...

Lead generation

Which component results in the greatest cost percentage for timeshare companies?


The typical price of a timeshare mini vac will range from...


In timeshare sales, the term VPG refers to...

The average contract amount for all guests seen

In timeshare sales the conversion rate refers to...

The percentage of prospects who end up purchasing

In the timeshare sales process, whose responsibility is it to get the buyers in front of the sales executives?

The marketing department's

Which term refers to the percentage of people who will purchase the mini vac they are offered?

Booking rate

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