Lots of folks still seem to use upfront fee companies!

[TUGBrian]

https://therealdeal.com/miami/2017/...4m-for-waterfront-mansion-in-fort-lauderdale/


"founded" the company in 2015 too...

 

[Free2Roam]

Wow! Appears to be a lucrative business. Based on their website, they have a fairly large staff (60+). I really hope their riches are from another source and not just from timeshare upfront fees

 

[Panina]

Sadly people do use these upfront fee companies. Many timeshare owner who have not researched are under the impression that their timeshare has value like other real estate so they believe the companies that tell them what they want to hear. But would they pay a real estate agent up front to list their home? So why do, they pay these companies, unlogical due to wanting it to be true.

 

[ronparise]

Sadly people do use these upfront fee companies. Many timeshare owner who have not researched are under the impression that their timeshare has value like other real estate so they believe the companies that tell them what they want to hear. But would they pay a real estate agent up front to list their home? So why do, they pay these companies, unlogical due to wanting it to be true.

As a Licensed real estate agent I have have required buyers and sellers to pay an up front fee for my services. It is a legitimate, if not common practice. and it makes perfect sense when the value of the property is less than the commission. or when the client has very specific needs that I may not be able to provide, but he wants me to try anyway. For example I had a client that wanted to buy a heating and air conditioning company or companies. But there were non for sale that would meet his needs. I offered to contact every company in a 3 county area to find owners that might want to sell, and then negotiate a deal. Since it was going to take a fair amount of time and since there was no guarantee of success, I wanted to be paid up front. Another time a client asked me to find him several rental properties, either small apartment buildings or single family houses. The price he was willing to pay, was less than market. so there was no guarantee of success. I could see me making hundreds of offers to find that owner or owner willing to come to his price..So i asked to be paid for my services upfront

Timeshares are one of those things that are worth less than than the fee I would want to sell it. The only way I would take a timeshare listing is if the seller paid me in advance

None of this is meant to imply that the practice of taking a fee and then not delivering the agreed upon service is ok, or to say that a demand for an upfront fee isnt a warning sign. All Im trying to say is that a real estate agent that requires an up front fee isnt necessarily a crook

 

[chapjim]

As a Licensed real estate agent I have have required buyers and sellers to pay an up front fee for my services. It is a legitimate, if not common practice. and it makes perfect sense when the value of the property is less than the commission. or when the client has very specific needs that I may not be able to provide, but he wants me to try anyway. For example I had a client that wanted to buy a heating and air conditioning company or companies. But there were non for sale that would meet his needs. I offered to contact every company in a 3 county area to find owners that might want to sell, and then negotiate a deal. Since it was going to take a fair amount of time and since there was no guarantee of success, I wanted to be paid up front. Another time a client asked me to find him several rental properties, either small apartment buildings or single family houses. The price he was willing to pay, was less than market. so there was no guarantee of success. I could see me making hundreds of offers to find that owner or owner willing to come to his price..So i asked to be paid for my services upfront

Timeshares are one of those things that are worth less than than the fee I would want to sell it. The only way I would take a timeshare listing is if the seller paid me in advance

None of this is meant to imply that the practice of taking a fee and then not delivering the agreed upon service is ok, or to say that a demand for an upfront fee isnt a warning sign. All Im trying to say is that a real estate agent that requires an up front fee isnt necessarily a crook

It's all about managing expectations and full disclosure. Ron tries to manage expectations and is committed to full disclosure. The upfront fee companies don't and aren't.

 

[Panina]

As a Licensed real estate agent I have have required buyers and sellers to pay an up front fee for my services. It is a legitimate, if not common practice. and it makes perfect sense when the value of the property is less than the commission. or when the client has very specific needs that I may not be able to provide, but he wants me to try anyway. For example I had a client that wanted to buy a heating and air conditioning company or companies. But there were non for sale that would meet his needs. I offered to contact every company in a 3 county area to find owners that might want to sell, and then negotiate a deal. Since it was going to take a fair amount of time and since there was no guarantee of success, I wanted to be paid up front. Another time a client asked me to find him several rental properties, either small apartment buildings or single family houses. The price he was willing to pay, was less than market. so there was no guarantee of success. I could see me making hundreds of offers to find that owner or owner willing to come to his price..So i asked to be paid for my services upfront

Timeshares are one of those things that are worth less than than the fee I would want to sell it. The only way I would take a timeshare listing is if the seller paid me in advance

None of this is meant to imply that the practice of taking a fee and then not delivering the agreed upon service is ok, or to say that a demand for an upfront fee isnt a warning sign. All Im trying to say is that a real estate agent that requires an up front fee isnt necessarily a crook

Makes lots of sense, thanks for educating me. If others know of legitimate practices like these they wouldn't question the upfront fee thinking they will get what they were promised.

 

[TUGBrian]

you also know full well the vast chasm of difference between what you described above....and what every timeshare upfront fee resale company does.

 

[ronparise]

you also know full well the vast chasm of difference between what you described above....and what every timeshare upfront fee resale company does.

My point is that you are wrong to equate up front fee with scam

 

[TUGBrian]

when 99.9% of the scams in the industry revolve around upfront fees...its a perfectly acceptable thing to do.

when the .1% becomes the majority...you might have a valid argument.

 

[ronparise]

as usual you are absolutely correct Brian.. many, maybe most of up front fee companies are crooks, but the fee isn't the problem. The problem is that some, maybe most, of so called timeshare relief companies dont deliver the services they promise

Except for the personal injury lawyers, most lawyers require that you pay their fees upfront. That was my experience when i went looking for someone to represent me in my recent timeshare exit negotiations with Wyndham. I dont think that 99.9% of the lawyers I spoke with, were out to scam me. Actually I dont think any of them were.

 

[TUGBrian]

The vast majority of the ones that specifically advertise or target timeshare owners to help them "get out" certainly are...

if you go seeking out any lawyer for advice, id say most of them would certainly provide you with factual information as applicable.

however we arent talking about ALL lawyers in this discussion....we are talking about a small subset of them (and also including those who attempt to sound like an actual law firm, but actually have no lawyers at all)

 

[mpeter15]

Perhaps the real crime/scam is not the inability to deliver(given the impossible task at hand) but rather the fact that they intentionally inflate the expectation by lying and telling their clients that their timeshares are worth way more than they are in order to justify the upfront fee. That I feel is the biggest difference between the legitimate and the scam. If they told their clients upfront that their timeshares are worthless on the market, they'll likely have to give it away and pay the fees and in some cases still pay an incentive, oh an by the way depending on the week and resort they still may not even be able to get rid of their client's timeshare, prior to charging that fee then it would be completely legitimate

 

[Brian S]

Ok, so buyer beware on the Lawyer question.. has anyone had success with a lawyer? Which firm are they with? I'm starting to think this may be my only out, besides stopping paying.

 

[TUGBrian]

what efforts have you made thusfar to offer your timeshare for sale for $1 and cover closing costs? or contact your resort to see if they have a cancellation or deedback/surrender program?

 

[breezez]

I have no problem with an upfront fee being charged. I agree with Ron that when your trying to provide a service that doesn’t have any guarantee but requires a lot of work you want paid up front. But to me most of these companies take money and provide no service thats the scam.

But Here’s what I don’t understand about these companies: A lot of theses people are paying $5K have someone supposedly get them out off their timeshare.

Why don’t these companies just be selective and agree to take ownership of them for the $5K or 3-5X Current MF’s. Not as a Vikingship but take them over and get their name on them and then the game is on to divest of them before they burn through the money collected.

Obviously they would have to be paid in full and current on fees to offer this.

Example there are some people on forums this week trying to dump Sheraton Broadway Plantation before another years MF are due. If you paid me $5K I would take it off your hands if it was paid in full and all fees up to date.

MF on a 2Bdr are about $1K this gives me 5+ years to unload it. More if you can consider I get to rent it out also until I sell it. The faster I give it a new home The more I net keep, Until it sells or I find someone to give it to I use my rewards card to pay MF’s racking up bookoo award points and get the benefits of the resort and being part of its network.

Sure you would have to be selective and I would not do this with all timeshare systems or resorts in their system, but many I would.

 

[bogey21]

Back in the days I was being inundated with postcards from these companies I would go to some of their presentations just to see what was going on. I was always amazed by the number of people signing on the dotted line and writing checks. I'd say 75% of those acquiescing were older people who no longer were able to (or just didn't want to) travel.

George

 

[Brian S]

I have posted my ad on Marketplace and on Bargain listings. The timeshare said that I cannot cancel, I can only sell it or transfer it to someone else. I did ask about the deedback, but they have not responded to my inquiry.

 

[LannyPC]

I have posted my ad on Marketplace and on Bargain listings. The timeshare said that I cannot cancel, I can only sell it or transfer it to someone else. I did ask about the deedback, but they have not responded to my inquiry.

It is true that you cannot cancel. Timeshares are deeded property just like your house. If you no longer want your house, you can't cancel it. You have to find another owner.

You are doing the right thing by posting ads in the Marketplace and Bargain Deals.

When you inquired about deeding back, to whom did you speak? That could make all the difference.

 

[TUGBrian]

sadly with all the damage and situation in PR...selling a timeshare there will be extremely difficult for awahile!

I would lead with the fact that you are paying all closing costs and the 2018mf...vs having it buried in the middle of the description.

when speaking with the HOA, did you ask them what happens if you just stopped paying for it?

 

[bogey21]

Plan ahead. When I decided I would be divesting my portfolio I had 7 Weeks. It took 3 years to get rid of them all. In the interim I either used them, rented them or let relatives use them. 3 or 4 were ultimately Deed Backs but trust me it took lots and lots of phone calls to get Resorts to take them back. Getting rid of unwanted Weeks is not an instantaneous process.

George

 

[Brian S]

Ok thanks I will edit my ad. I'm emailing with the "Resort Controller". He said that if I stop paying they will send it to collections. I've been wary of this since they could put a lein or on our house maybe? I'm trying to start that conversation with him eventually. But for now I will be patient but tenacious.

So after a few months if I get no takers, how would I sweeten the deal? Pay for 2019 MF as well?

 

[LannyPC]

So after a few months if I get no takers, how would I sweeten the deal? Pay for 2019 MF as well?

That still would be cheaper than using these so-called rescue/relief/exit companies, law firms, or charities. But in the meantime, if you can't find any takers, I would follow Bogey21/George's advice and use what you have in some way.

 

[PamMo]

Back in the days I was being inundated with postcards from these companies I would go to some of their presentations just to see what was going on. I was always amazed by the number of people signing on the dotted line and writing checks. I'd say 75% of those acquiescing were older people who no longer were able to (or just didn't want to) travel.

George

I was just telling my husband that I'd like to go to one of these meetings to hand out scam warning flyers and TUG business cards!

 

[Caligirlfrtx]

Example there are some people on forums this week trying to dump Sheraton Broadway Plantation before another years MF are due.

I was wondering why so many BP's were showing up for free. I was wondering if something was wrong with this resort lol

 

[breezez]

I was wondering why so many BP's were showing up for free. I was wondering if something was wrong with this resort lol

This is a good resort, but usual gets less on rental than MF’s