With some crafty internet work, I found a group of investors in my area who are looking for a birddogger/wholesaler to work exclusively for them… awesome for me!
I am working with them in a couple ways, and one is finding a buyer for their time share. They are looking to get out of a property they say is worth 18-20 g’s for 10. I would like to make 2 on the deal, as I am a student, and they are starting to knock on doors for dorm room payments!
I am looking for advice on selling this time share… any experiences? Any ideas? It is in Florida, near orlando in November… so off traffic-ish.
If you look online, you can find out what it’s worth. There are timeshare resale sites and there are some on ebay as well. I’d be skeptical of what it’s worth. That may be what they paid for it and timeshares are worth less on the resale market.
I know a thing or two about timeshares since I managed a sales staff in that industry. The reason they want you to expend your energy is because timeshares can be gotten on the secondary market for 30-40 cents on the dollar. Unless they’re used every year for personal use, they’re an extremely poor investment. That’s why you sit through a 2 hour hard core sales presentation for the privilege to purchase one.
I’d suspect your investors aren’t quite as smart as they think they are. Don’t expend too much energy, you simply can’t compete with the outrageous marketing budgets of Fairfield, Hilton, Ramada et al.
Do timeshare companies make as much as it seems? I did some rough math and they must be ridiculously profitable. The fact you can sell all 52 weeks of what amounts to an inexpensive condo is crazy. Then the people pay for the maintenance of it so you don’t have expenses after construction. The break even point seems very low.
Indeed, timeshare companies do make that much money. They typically spend about $800-$1,000 in marketing per qualified lead they talk with. Their sales staff is hard charging to the extreme, since they’ll make 2-4K per deal. The sales managers (ask me how I know) make killer overrides and bonuses. It’s not uncommon for a top rate sales manager to make 200-300K per year from a motivated staff.
By law, a TS resort may sell the same unit 50 times, with 2 weeks per year for maintenance down time. Average yearly maintenance fee of $500. Average acquisition, around 8K.
A TS resort in Mexico is part of my retirement plan. You see the numbers…no further explanation needed.
Yes, the math seemed rather amazing from what I’ve seen of that business. It’s one I plan to keep my eye on for future reference and investing. It sounds like your time as a sales manager was rather lucrative That and you learned about the industry. Gaining industry knowledge while making money at the same time is a nice combination.
That’s why I just worked a 7 months as a personal trainer at a gym. I weight train competitively so the trainer certification test was easy for me. I now know the ins and outs of how gyms work. They clear 20-40% net profit. That’s another area of interest for me once I raise more capital.
It’s the businesses that spawn from an area of personal interest that have the greatest potential for success. Passion seems to be the common denominator, don’t you think?
Yes, I’d have to agree with that. People rarely succeed at things they don’t enjoy. I really enjoy the finance aspects of REI and plan to focus my energies there.
Pretty much, timeshares are a pain in the neck, and I should focus on finding rehabs, as opposed to diverting time into promoting the timeshare… Did I catch that about right?