Wouldn't it be neat if that unwanted timeshare went away--and they paid you for it?

[Larry M]

Wouldn't it be neat if that unwanted timeshare went away--and they paid you for it?

When I first joined TUG, years ago, I asked about getting rid of a timeshare I had inherited. No one in the family had ever used it. It was out in the middle of nowhere and had no attractions nearby. The association had offered to take the (January in Arkansas) unit back if I paid $150 in lawyer fees. I naively asked whether that was a good deal and was deluged with "Pay quick before the offer goes away!" responses.

This one may top that. I bought a timeshare in 2010 and used it for 4-5 years. Then we got a summer place (trailer and cabin) and preferred vacationing there. I've been letting my son and his family use the timeshare since then. The sunset clause is effective on the first Sunday in 2026, and I've been resigned to just paying maintenance fees until then. But then I received communications from the board.

The first one acknowledged that MFs had continued to rise, in part to damage caused by hurricanes Matthew and Florence, and in part because the prior board had never bothered to act on delinquent accounts, either by collections or foreclosure and most of the money was no longer recoverable. As a result, there's been a lot of deferred maintenance. That communication included a survey on members' opinions regarding early liquidation and payout. "Most owners" desire to terminate the timeshare agreement...and to sell our property with profits distributed among owners.

The entire communication is attached. We are asked to vote on two questions:

1. Consent to early termination of the Egrets Resort Timeshare plan pursuant to South Carolina law
2. Consent that the Board of Directors are affirmatively empowered to administer and effectuate the sale and/or restructuring of units in such manner as they shall reasonably determine pursuant to South Carolina statute Section 27-32-500, et seq., exclusively in their fiduciary role and duty as Trustees and in the best interest of all owners and without the need for any further owner vote or action to order or approve any such sale or restructuring, including creating a new timeshare or similar plan related to the occupancy and use of some of the units for the benefit of owners who desire such use rights.

The first question merely changes the sunset date. The board still must go through all the procedures outlined in the deed to get member consent and votes to liquidate or continue. Just contacting all the members will be onerous.

The second question has a simpler procedure but could be tricky if the majority of owners of any particular unit vote NO, requiring the board or an owner in that unit to file a complaint to effectuate a sale.

So while it seems messy, it looks like I am getting out of the timeshare earlier than I thought, AND I am getting paid for it at no cost to me. Since I only paid $1500 for it, there's a chance that I could even make money on it.

 

[wackymother]

We had this happen. I bought a timeshare on eBay for $1000. We liked it, but the reviews on the place went down and down. Eventually the board of directors at the timeshare passed a decision to sell off individual units as condos. They started doing that, so you might stay in a unit and the unit next door might be occupied by the full-time owners.

We were starting to think about trying to give the timeshare back, but I figured eventually they might use the money from the sales to fix the place up, and the reviews would improve, and etc. etc.

Before that could happen, though, the manager called and said they were going to sell our unit. So she offered me a choice: move us to a different unit, same week, or pay us $1500 for our week. I accepted the $1500 so fast her head probably spun.

So I am one of the very, very few people in this world who has actually made a profit on a timeshare!

 

[daverunfast]

Glad to see it, there are plenty of HOA controlled properties that would be better suited by a board looking to maximize value in this manner. An effective owner value maximizing rental program would be another way to get at that equity.

Let us know how it proceeds.

 

[Larry M]

Glad to see it, there are plenty of HOA controlled properties that would be better suited by a board looking to maximize value in this manner. An effective owner value maximizing rental program would be another way to get at that equity.

Let us know how it proceeds.

Well, since you asked, the attached PDF arrived today. Since the original deed specified an expiration of first Sunday in January of 2026, I was expecting the expiration to be first Sunday of 2022, but the actual new date is an unspecified date in 2021. Owners have an option to make an offer for a condominium.

 

[daverunfast]

Thanks for sharing. You might get some cash. If they're worth 300k a piece you should be looking at between 5k and 9k per contract depending on how the delinquents are handled.

Good work by the board, hope the sales go smoothly

 

[Larry M]

Thanks for sharing. You might get some cash. If they're worth 300k a piece you should be looking at between 5k and 9k per contract depending on how the delinquents are handled.

Good work by the board, hope the sales go smoothly

Given your estimate, I will be nicely ahead since I paid $1500 for it. It would certainly cover the hurricane assessments, too.

 

[escanoe]

@Larry M I would like to ask you to buy a lottery ticket for me, please sir?

 

[Joycesen]

Well, since you asked, the attached PDF arrived today. Since the original deed specified an expiration of first Sunday in January of 2026, I was expecting the expiration to be first Sunday of 2022, but the actual new date is an unspecified date in 2021. Owners have an option to make an offer for a condominium.

I can now download it

 

[Joycesen]

I have not been able to download it. Do you get it mailed ?

 

[Larry M]

I have not been able to download it. Do you get it mailed ?

It downloaded fine for me--and no one else has complained--but I have converted it to a JPG image, just for you. Let me know if you still cannot open it.

 

[dandjane1]

We are (relatively) frequent users of the Wyndham at Edisto Beach, and it's precisely that there are no big attractions nearby, why we love it! The main attraction every evening is watching the sunset. During horseshoe crab reproduction season, the spectacle of seagulls gorging on the crab eggs floating at the shoreline is a sight to behold.There are many plantations that can be visited at less than an hour's drive away, and Charleston isn't far either. There are many good seafood restaurants locally, and only a few miles away is an interesting little local museum. There are several excellent state parks in the area, one with a great interactive museum.
While all this may not fill the bill for a family with teenagers, Edisto might just need a second look - a little deeper. This of course has nothing to do with Egret Pointe's problems.

 

[Larry M]

Absolutely a wonderful place. After I was widowed I took several girlfriends there on at different times. The only real drawback is that some years in week 33, the mosquitoes would eat you alive, especially after dark. We used to take a bottle of wine to the point and watch the sunset, and the dolphins returning upriver, but even that could be spoiled in a bad year.

Week 33 was the perfect time to own. The South Carolina schools are already back in session, so the area isn't crowded. It's a time when the pools, the beaches, the restaurants, the hot tub, and even the mini-golf course are nearly empty.

If you really love Edisto, consider buying a condo when they go on sale.

 

[lkc1234]

Does Wyndham plan to sell the timeshares on Edisto Beach?

 

[Larry M]

Does Wyndham plan to sell the timeshares on Edisto Beach?

Not that I know of. Ocean Ridge was originally developed by Fairfield, which Wyndham acquired. For some reason (lack of capital?), when the property was first developed, the Egret's Pointe Townhomes buildings on the Ocean Ridge premises were built/owned by an independent association. That is the operation that is shutting down.

Owners had access to Fairfield/Wyndham facilities (entrance, parking, pools and hot tub, bike rental, social activities, loan of board games and DVDs, beach area, etc,) but not the Wi-Fi (go figure!). Owners had to enter the Wyndham Guest Reception facility to get a parking pass, but it was an opportunity to get restaurant and activity coupons. Once they figured out that you were an Egret's Pointe owner, they didn't hassle you to attend an "owner update."

 

[Larry M]

Woo-Hoo!

I paid $1500 ($1000 for the unit, the rest was closing costs and fees) for it. Really enjoyed it for the years I used it. My son and his family enjoyed it for the years they used. Now it's going away--but I received this progress report via email today.

Dear Owners, October 12, 2021

As you know Egrets Pointe Townhouses is going through the transition from Timeshare Ownership to individually owned townhouses. The termination agreement was voted on by owners on June 12, 2021.

There has been a lot of work being done behind the scenes to prepare for the transition and we are excited to announce that we have had our first 2 closings. Unit 495 closed on 9/30 for $367,000 and unit 478 closed on 10/7 for $378,000. The units are listed with a local broker Marie Bost, who has 3 additional units (488, 490, 491) currently under contract, with closings scheduled over the next 45 days. When your unit closes, you will receive a letter informing you of the sale, along with a check for your distribution of the sales proceeds. Going forward, updates will be posted on Egretspointe.com under the owner’s section.

We are diligently working to address maintenance issues and prepare the units for sale.

Even if you count ten years of maintenance fees ranging from $800-$1200 and the $200 assessment for Hurricane damage, it looks like I will come out just fine if my unit, 483, comes close to these two.

 

[T_R_Oglodyte]

For awhile, between 2000 and about 2005, I flipped several timeshares for profit. Not big money, but netting $1000 on each transaction.

 

[Larry M]

For awhile, between 2000 and about 2005, I flipped several timeshares for profit. Not big money, but netting $1000 on each transaction.

Not bad!

 

[dioxide45]

Woo-Hoo!

I paid $1500 ($1000 for the unit, the rest was closing costs and fees) for it. Really enjoyed it for the years I used it. My son and his family enjoyed it for the years they used. Now it's going away--but I received this progress report via email today.


Even if you count ten years of maintenance fees ranging from $800-$1200 and the $200 assessment for Hurricane damage, it looks like I will come out just fine if my unit, 483, comes close to these two.

Any idea what your distribution amount would be from the ~$350K? There would be closing costs and other legal costs, so I suspect it isn't just $350K divided by 52?

 

[Larry M]

Now that you mention it, they are refurbishing all the units before selling them so they will deduct for that as well as the closing costs. But remember, the HOA board is managing this, not a management company, so it shouldn't be padded. The broker is a local broker. Hopefully the HOA negotiated terms with her.

 

[DRIless]

I happen to know the Principal in the Egrets Pointe scenario and they are actively pursuing resorts in areas where the laws are favorable to executing these sunset deals. The HOAs are actively involved in making these things happen with the help of the outside company.

 

[GrayFal]

So I am one of the very, very few people in this world who has actually made a profit on a timeshare!

@wackymother why am I not surprised

 

[pedro47]

Not that I know of. Ocean Ridge was originally developed by Fairfield, which Wyndham acquired. For some reason (lack of capital?), when the property was first developed, the Egret's Pointe Townhomes buildings on the Ocean Ridge premises were built/owned by an independent association. That is the operation that is shutting down.

Owners had access to Fairfield/Wyndham facilities (entrance, parking, pools and hot tub, bike rental, social activities, loan of board games and DVDs, beach area, etc,) but not the Wi-Fi (go figure!). Owners had to enter the Wyndham Guest Reception facility to get a parking pass, but it was an opportunity to get restaurant and activity coupons. Once they figured out that you were an Egret's Pointe owner, they didn't hassle you to attend an "owner update."

My son visited this resort this year and he loved the resort. It was quiet and he, enjoyed the area because of the ocean fishing.

 

[shorep]

When a unit is 'sold' back the TS company is it ok to bamboozle the TS company with wild claims about the financial benefits that will accrue from the transaction.???????? Do you have to make a 'presentation'&buy them breakfast??

 

[Larry M]

When a unit is 'sold' back the TS company is it ok to bamboozle the TS company with wild claims about the financial benefits that will accrue from the transaction.???????? Do you have to make a 'presentation'&buy them breakfast??

Well, it's actually the HOA, but I'm sure they wouldn't mind.

 

[T_R_Oglodyte]

For awhile, between 2000 and about 2005, I flipped several timeshares for profit. Not big money, but netting $1000 on each transaction.

Not bad!

It's a lot harder to do that now. Prior to the financial crash in 2008, the resale market for timeshares was much more robust. Properties that now have nominal value sold for a reasonable amount of money. A couple of examples, from my experience. A platinum level membership in Raintree was worth between $5000 and $10,000. A deeded ocean front or floating view week at the Point at Poipu was worth between $8000 and $15,000. Club Regina weeks in Mexico, 1-bedroom peak season, 2026 expiry, were $500 t0 $3000.

Those are actual sales values, with the bands reflecting the illiquidity of the market. If you knew the market, and you knew where and how to find motivated sellers and how to find interested buyers who weren't scouring the bottom of the market, you could buy at the bottom end at sell at the top end, though.

At those prices you could make a bit of money. Looking back at my records, $1000 was the minimum I made. I made almost $3000 on a Whistler Whiski Jack ski week, but that was a bit lucky because I stumbled across a buyer who wanted that week at that property.

For the amount of work involved, it didn't make sense to push hard into this. I would do something when I came across a good opportunity, usually as I was researching whether I wanted to buy a particular locations. And with the collapse of the market and non-recovery of the market in 2008, any spread that is available is too small to consider.