Getting out of a Vacation Property

[kdhastedt]

On a different note... Keith you are in Grand Junction, Colorado? Man I bet that is beautiful.

Yes, we are...the area is great...the Colorado National Monument (http://www.nps.gov/colm/) is 15 minutes away.  The Grand Mesa (http://www.fs.fed.us/r2/gmug/) is 45 minutes the other way.  Some of the best skiing in the world (Aspen, Vail, Telluride, Steamboat Springs, etc. is within a couple of hours).  The hunting and fishing are fabulous (the largest herd of elk in the world is in NW Colorado).  But GJ is high dessert.  We get very little show, not a lot of real cold and tons of sunshine.  We've only been here a few months, but it beats NW Louisiana!

Keith

[christopher w]

I went to school at CU. I love Colorado. I was at vail/breckinridge/keystone last month. What is the investment real estate market like there? You know that Co. does not require a brokers license so you could broker your own loans if you wanted too.

[kdhastedt]

Nah, I got enough trouble trying to keep a POS telephone switch and all of the other miscellaneos stuff running around here...

Keith

[lucymay]

...when you allow your emotions to dictate your decisions - you'll try and use lies or disceptions to drive your actions.

the funny thing is, it's the emotions that are the ultimate deceiver.

Truer words have not been spoken. I can't tell you how many instances flashed through my head when reading that, regarding a person I'm currently dealing with. Act rashly and emotionally, then rationalize and justify, then start putting a "spin" on it, which turns to deception(self and outward), which turns to flat-out lying, which then just spins out of control and becomes perpetuated. Most always it's become to avoid whatever consequences the original action/decision bears on them(anyone else be damned). The person I'm dealing with has been doing this for so long they've become totally self-delusional and expects/believes that everyone lies. They couldn't believe I don't tolerate it and wouldn't do it when asked.

[petemfa]

Florida is a mess right now.   Insurance companies decisions to raise rates down there because of "increased hurricane risk" coupled with property tax increases that are incredible. And, building boom that has gone bust.  GET OUT!  Be happy your not on the hook like dozen's of my friends who all jumped on the Florida pre-construction condo mania bandwagon and can't rent them never mind sell them.  My best friend is a broker down there.  The last 2 rentals he showed had NO ONE living in the entire phase.  Nothing says home like a ghost town!  If your worried about $7500 you obviously aren't putting $250,000 down on this thing.  Bail out NOW>  I can give you 26 people I know who wish they had.  I agree with the advice you were given about running numbers but in this case the problem in finding CONSISTANT renters.  Not vacationers,  That mortgage is not going to stop coming in June, July and August when the vacation trade does.

[EZLoanz]

Another option not mentioned worthy of consideration that would allow for you to get from under a majority of the property, but still allow you a slice.

Convert the property to allow for fractional ownership. 

If done properly, your ownership shares can be paid with the profits you earn from selling the other ownership parcels. 

If you still want a place to go to on vacation without the financial burden of keeping a second home; this allows you to have your cake and eat it too. 

Regards,

Scott Miller

[Sean_L]

Florida is a mess right now.   Insurance companies decisions to raise rates down there because of "increased hurricane risk" coupled with property tax increases that are incredible. And, building boom that has gone bust.  GET OUT!  Be happy your not on the hook like dozen's of my friends who all jumped on the Florida pre-construction condo mania bandwagon and can't rent them never mind sell them.  My best friend is a broker down there.  The last 2 rentals he showed had NO ONE living in the entire phase.  Nothing says home like a ghost town!  If your worried about $7500 you obviously aren't putting $250,000 down on this thing.  Bail out NOW>  I can give you 26 people I know who wish they had.  I agree with the advice you were given about running numbers but in this case the problem in finding CONSISTANT renters.  Not vacationers,  That mortgage is not going to stop coming in June, July and August when the vacation trade does.

I didn't know it was that bad in FL....=[

[petemfa]

Here's what I know about some people who got caught up in the pre construction condo mess in Florida.

It started out with a couple of guys I know. About 3 -4 years ago they went to Florida to buy condo's for vacation and retirement homes.  Everything was right with the world.  They bought  pre construction and the fuse was lit.  By the time their units were done they had offers for $100,000 more than they paid.  1 year had gone by.  Remember that.

Well now the greed takes hold.  Both guys buy 2 more EACH!  No intention of living in them like originally planned, just to flip.  But by now this story is being told all over the country.  The last units they bought they LITERALLY had to CAMP OUT at the brokers open house office to get their units.  600 people were in line with them. All sold out in 2 HOURS !!!  1200 UNITS!!!

They buy and of course use an interest only loan with a 3 year arm.  Well it's 3 years later.  The market has dropped and all the campers are trying to sell their condos.  Problem is the game is over.  These guys can't get out because they owe more than they are now worth and because of the wonders of interest only they have no equity.  The appraisals are killing these guys when refi. time comes.  and the snowball just keeps rolling. 

Just wait, it's gonna get worse.

[Rich_in_CT]

I think I'll wait for the bottom to drop out......then buy down there.

[jsstinson]

Eh, things are already dropping...I am working a few pre-foreclosures...hoping to take a 5/5.5 3400sf 1.3mil appraised beach house for under 900K...

I feel like a vulture circling and waiting for something to drop dead. 

[ChurchBroker]

Well, I live here in Orlando and I can honestly say that yes, the rental market for both timeshares and homes is not great.

Not bad, but not great.

I am curious about which timeshare it is, though.  I have no problem with detailing what I know (having been here for years and having owned a timeshare here also) but it would be best if I knew the locale.

However, it's been worse before and may get worse yet.  But here is a statistic that will put it all into perspective.

This year, the state of Florida expected an increase of almost 45k students to our state.
We got under 500.
Not 500k, under 500 - total.

Why is that important?
Well, simple.  They based that number of expected students on growth rates of previous years and (wait for it, wait for it) the number of homes that were being built/converted.

And now that many (and I mean many) homes that were once apartments are now condos at twice the rent - no one can afford to stay in them.  An apartment that was 1k a month is now a 2k condo.
And the houses, well the houses are just about using the same math - about 2x more in rent. 

Now for timeshare, this shouldn't be an issue - you would think. 
But now, (for the last year actually) desperate homeowners have gotten smart and will rent their new home for less than people will spend for a small time share.

Big new house, 4 beds, 3.5 baths, pool, new appliances.... vs. 900sqft. box on the 13th floor with one bathroom that everyone shares and the elevator is always filled with people and their luggage and at least one kid with dripping pool water that forgot his towel....

Ah, vacation.

Run the numbers but get some advice too.

Enjoy,

[Speedy Word]

Sean,

I completely disagree.  There are many, many people who conduct themselves with honesty and integrity.  When I give my word, I stick to it.  I don't try to weasel out of agreements that I make.

Mike

That's true. But some people change when it comes to money... If the salesman makes one promise and does another, well, your sh*t out of luck. You can try complaining to BBB but that rarely works b/c of this:

http://www.thetruthaboutthings.com/index.php?page=bbb

[TMCG]

i'm curious to know what happened with this situation...