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Five Tips on How To Set Up Private TimeShare

By Jason Lee
Filed under: Timeshares         Words in this Post: 606



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1. LOOK FOR POSITIVE PROPERTIES. The prospective Timeshare properties should have benefits that are extended throughout the year. These benefits might not appeal to everyone, but you will only sell that segmental benefit to the person who wants that specific use, so there will be little or no negative time for sale.

2. ANTICIPATE THE KIND OF MARKET YOU WILL BE SELLING TO BEFORE YOU TIE UP THE PROPERTY. If the property is in the mountains and one of the benefits to sell is ski time, you will want a property that is well located to ski areas. Even though you want the place for the cool summer nights and don’t care about the proximity to the lifts, you need to consider the needs and benefits for the other owners.

3. MAKE OFFERS THAT TIE UP THE PROPERTY BUT GIVE YOU AN OUT.
When buying a property for a syndication or private timeshare ownership, you will want to make sure that you don’t get locked into a deal that you can’t handle by yourself. One of the best ways to give yourself this out would be to make your offer subject to the full 100% subscription to the joint venture you are forming. Give yourself ninety days or more which begin after you have approved the inspection of the property. Don’t forget to also allow yourself time to make the inspections without being rushed. Nothing beats honesty in this kind of transaction, and if the seller is anxious to make a deal he or she is apt to go along with you. After all, you are trying to buy his or her property.

4. HAVE ALL YOUR BASES COVERED. This means anticipate every possible question that will be asked and have the right answer. The most important questions to deal with will center around the following: who is in control, upkeep, time periods, income potential, how to sell, and form of ownership. In the beginning you are in control. After that the group votes in a new person every year or so. You make the rules up front, so make sure you have a printed list of exactly how all this is going to work, and what penalties there are for those who don’t come up with their share of expenses, and so on. The tougher the penalties are the better everyone will like it (because everyone thinks someone else will be the one to default). The same goes for upkeep; have it all down pat. Have a local company who will do the cleaning after every visit (to be paid for by the person who used the facility last. Let people shift their time around, but have a clear understanding of how that will work. As to income, it is important that you have a local company who will rent out the facility, but also line up a couple of barter organizations in your home town who will trade you and the other owners services and goods for time at the facility. How to sell and the form of ownership is something you need to discuss with your lawyer. The logical way is not to restrict the sale of time, but to require the owner to offer it first to the existing members. A first right of refusal generally works well.

5. HAVE A GOOD JOINT OWNERSHIP AGREEMENT DRAFTED BY A LAWYER. Explain to the lawyer that you are going to do a joint venture form of private timeshare. Have the lawyer go over the specific kinds of forms of ownership you can use and make sure you’re aware of the laws of the state where the property is located.

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Author: Jason Lee

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