This works with any sales source. We are going to give specific ones for eBay, since it is the most common but the concepts are the same. First, we need to cover some essentials for process setup first.
Just buy a resort with a deed. Special real estate laws cover deeds to protect you. The key is how you own it. Do not contract memberships or points.
When a timeshare is sold, information is required.
Who is the new owner?
Where is this owner located and how can he be contacted?
What is the IRS ID for this owner (SS # or EIN #)?
Why? When the resort sends invoices, they know that some people will not pay, will not use the timeshare again, and will usually only respond to legal threats. Those legal threats are: first, cut your future use; second, send you demand letters; third, send it to the collection; and fourth, submit negative reports to the credit bureaus. This threatens your future credit rating. Of course, not everyone uses or cares about their credit. Any action they take is linked to the SS # or EIN #. Even at the same address, it is illegal to cross numbers for reports on different legal entities. This is important.
Which one would you prefer to give as a gift? Your personal name, social security number, address and phone number or a legal business name and your information? It’s up to you.
Follow these specific steps. Total costs must be less than $ 200.
1st, Incorporate. You can join in any state, but we will suggest Nevada. Go to LegalZoom.com to start the process. Select the affordable plan for Nevada. At the time of writing this article it was $ 75. It’s simple and you don’t really need the rest of the services.
Within the Articles of Incorporation make it clear that the purpose of the company is “to buy, rent and sell real estate for profit.” You now have a corporation established to take care of the written properties, including timeshares.
Second, get a registered agent. Nevada has a list of them on the Secretary of State’s website (nvsos.gov). Under the Business Center heading, click on “Resources.” Then click on “Registered Agents”. Finally, click on “Annual Listing of Registered Agents 2011” at the bottom of the page for a list of commercial agents. Contact several to get a good price. The registered agent is simply someone in the state who can agree to provide legal services for you and forward them. They do not assume responsibility or control. it can even be a friend who lives there. All they do is forward or mail whatever they receive. The cost is between free for a friend and $ 150 for an RA.
Third, obtain a Taxpayer Identification Number (TIN) with the IRS online. Once you have done the above, go to the IRS home page. Click on the “Companies” bar option. On the next page, click the “Apply for an EIN Online” link. Read that page, then click the “APPLY ONLINE NOW” link. Follow the process to obtain an EIN for your new corporation.
Fourth, get a bank account. Go to any bank and ask to open a simple business bank account. You can also find the free ones on the Internet. This process is free.
Fifth, determine when and where you want to go on vacation. Search for specific timeshares in your desired area, time and condition.
6th, Start making offers. Remember, CASH is KING! Start at $ 1 and the seller pays the closing costs through a licensed closing company. Everything is negotiable, but you will be surprised what you can get. What you really want is to make sure a closing company handles the deal for about $ 400. If the week is wrong (be a little flexible), make the sale dependent on the seller getting signed approval for the exchange of your resort week before closing. Don’t accept without it.
At closing, do everything in your corporate name and make sure your personal name NEVER appears on the deed. That is what protects you.
Plan this well in advance, at least 6 months after your offer is accepted. Sometimes it takes a few months to get the deed and you don’t want to miss your vacation because of that.
Now is the time to go to eBay. We are going to use the following example (fill in your own options). We have decided that we want to vacation near Disney World sometime in the summer of next year, which falls in weeks 25-35. We want at least 2 bedrooms.
1. Log in to eBay.
2. In the search box, type “Orlando timeshare.”
3. From the list below, check each one that meets the criteria for the 2-bedroom summer term.
4. Check the bid history to make sure there are no other bidders.
5. The ones that still fit, in the seller information box on the right hand side, click on the “seller name”.
6. On the seller information page, click “Contact Member” below the portrait.
7. Send a short message stating your name requirements in writing, who pays the closing costs, and your maximum acceptable offer. This is your starting point of negotiation.
8. If they respond, continue the negotiation until final acceptance by both parties. This will become part of the closing process that YOU will send to the closing agent. If not followed, file a complaint with eBay and request a refund.
9. Don’t be impatient. If you don’t find one the first time, remember that new ones always appear every week.
10. Keep track of the names of vendors you contact. You will find that many dealers list many timeshares. Once you’ve made an offer to one, see how they respond and avoid them in the future or accept them for future purchases if they work well for you.
If you use some other auction website, do essentially the same thing using their different process.
Seventh, legitimize your actions. Once you have the deed, start advertising the week for sale and / or rental on various free online services, CraigsList.com, Oodle.com, and anywhere else you can think of. KEEP RECORDS! Price it high to discourage a sale until you take your vacation. After your vacation (you took it because it didn’t sell) put a lower price on it for a month or two and then lower it entirely. This should take you about 2 hours to calculate the first time and about 1 hour every year thereafter.
When the resort bills come in, ignore them. All the resort can do is send letters to your company, send them to the collection, and threaten to ruin your credit. If someone calls you at your home, tell them it is private and to call the company directly to the Resident Agent. If they continue, send them a letter to stop calling. You can find several examples on the Internet by searching for “credit stop calling me letter”. Then they should stop calling.
The first time, your cost is about $ 600 if you pay closing costs. Next year it will only cost about $ 400 for a similar $ 2,500-per-week vacation at a different resort. After all, your business is ready to buy, rent, and sell real estate.
Enjoy!