Barrier Island Duck - Building for Sale - Need money for upgrades

[Nolathyme]

I own a unit at Barrier Island Station in Duck, NC. Due to low maintenance fees over the years and a lack of reserves, the BOD is looking at possibly selling one of the buildings to give us some much needed cash. They found a company they are looking at with the help of the sale is TOWB. https://www.towb.life/ . Has anyone heard of them before?

I took the numbers that TOWB gave us in a webinar and presented them below:

I think there are 12 units to be sold.

A couple recent sales in the 200 building averaged $600,000

$450,000 is one estimate of potential sales price

12 X $450,000 = $5,400,000 or 5.4 M of the $5.4 M , only $2,730,000 will go back to Barrier Island. The $2.73 M number is coming from TOWB.

The company, TOWB, has lined up a loan at 15%, so the interest rate alone is going to cost the owners assoc $525,000 .5 M.

Interest cost $525,000
Foreclosures $669,000
Title work $79,560
Communication $10,000
Legal Fees $50,000
Appraisal $1,000
Deeds $139,250

Total $1,473,810

Sales of units $5,400,000
Expenses $1,473,820
To Owners Assoc 2,730,000
To TOWB or something else $1,196,181

Does this seem reasonable?

 

[SBiswas]

Unfortunately, I also own in Bldg 100 and attended the webinar. I did not believe everything they said. This timeshare has been an endless pit. I am not going to put in this lost cause.

 

[pedro47]

The resort ocean front land should be worth a half million dollars. IMHO

 

[Brett]

The resort ocean front land should be worth a half million dollars. IMHO

Like this OBX ocean front land
(not worth half million dollars IMHO)

 

[DrQ]

Yeah I know TOWB.

They liquidated our Inverness by the Sea (Captain's Cove) timeshare in 2019. Their business model is to buy condos for pennies on the dollars and redevelop them. In our case, the timeshare was in a death spiral of dwindling (aging) membership and a building that had structural issues existing in a coastal environment where the salt air rusted the superstructure of the condo and preventive maintenance was put off until major repairs were needed.

The final letter is here:

Inverness By the Sea Galveston to Reopen

The long wait is over. I was told on the phone that the property will re-open May 31 2009. I was surprised to get a person as I have been calling for many weeks with no answer. It turns out my week begins May 31.

tugbbs.com

To sum up:
If you read the PDF I posted, the numbers are grim. 2600 weeks and only 796 paying members. They have been keeping MF's low (~$750/yr) but did not build in any reserves in fear of losing more paying members. Truth being said, I would have been willing to pay $1K/yr to establish a proper reserve account.

c'est la vie