How to get rid of a timeshare?

[boilermaker75]

I knew a person who was a timeshare king in the 80s/90s. The thing is, the people who go into this are usually doing a bit of sleezy stuff in the background. Perhaps if you can dig up enough dirt, you can negotiate your way out.

 

Or you might disappear.

 

 

Haha, I guess that's a possibility. All the people I knew in the industry were very white-collar.

 

Yes, but they all know a guy!

[oddballstocks]

Sleeze... I think the problem is the whole business model is built off of something that's a bit shady.

 

"Hey guys, let's build a hotel except we'll sell the rooms for a high upfront cost then charge people a yearly fee to use it."

 

Consumers think "oh it's an INVESTMENT" and that they can get out.  Except there are so many suckers buying these things that developers have trouble building enough.  The market is saturated and there's no residual value.

 

How could there be residual value?  You're selling a liability!

[T-bone1]

Sleeze... I think the problem is the whole business model is built off of something that's a bit shady.

 

"Hey guys, let's build a hotel except we'll sell the rooms for a high upfront cost then charge people a yearly fee to use it."

 

Consumers think "oh it's an INVESTMENT" and that they can get out.  Except there are so many suckers buying these things that developers have trouble building enough.  The market is saturated and there's no residual value.

 

How could there be residual value?  You're selling a liability!

 

So you are saying it's like having a long-term below-market lease on a K-Mart??? :-)

[bizaro86]

Perhaps for someone enterprising there is an opportunity here.

If you can buy enough rooms for cheap enough (assuming maint fees are low) then perhaps one can get control and

sell the property outright.  I  have no idea how to do this but just a thought in activist time share investing.

 

I have done this in a regular condo complex, and am in the process of doing it in a timeshare complex. I've only just started, and I estimate it will take me 12-15 years to control the HOA.

 

I've known a number of folks who have tried this at various resorts and failed. The usual issues are that to pull a condo out of the timeshare plan, you need all 52 owners to sell to you, and there are usually a few you can't find or who won't sell. The other issue is the vast majority of places you'll have a significant negative carry, and it just gets bigger the closer you get to control.

 

I think I've licked both issues, but am proceeding cautiously. If it turns out like I expect (10 bagger+) I'll be back here raising a fund in 2032...

 

(And of course, anyone who wants discount rooms for weekdays in San Francisco or Anaheim can PM me)