Looking for partners in Watercolor purchase

[moepaul]

Several vacation clubs are offering homes in Watercolor, http://www.private-escapes.com is one of them. Helium report gived reviews on each club

It may be worth looking into

 

[Franny]

There was an incident recently in Watercolor where investors have three homes under contract. They then begin selling fractional. Watercolor has stepped in and refuses to allow the investors to close. Personally I believe this is a great way to allow people to own without all the financial stress.However, St Joe is attempting to block these types of sales although they sell fractionals in their condo's in Watercolor.

 

[bamasam]

I don't think they could legally step in and stop a couple of people from getting together and buying a house though. And, honestly, with the way the market has slowed you'd think they would want to promote sales any way they can. I know the market is picking up some, but not like in 04-05. Joe tends to change it's own rules. Look how they extended the build out dates on lots. They added 2 additional years because they recognized the fact that people who purchased lots after several flips were not able to flip nor build within their alloted time because it has become a lot more expensive (once you add in the cost of the lot) to build and the interest rates have gone up. Even some builders are feeling the strain. I've had some builders offer to remain a partner in a home if we wanted to buy an ownership interest in one they've got on the market because they can't get them sold. And to be fair, St Joe really wants their communities to build out and be successful so I think they won't be trying to block any sort of purchase. Anyway, that's just my thoughts...

 

[scooterbug44]

I think advertising that you are selling fractionally and quietly selling to a LLC that just happens to be several families combined for vacation fun would be two different things in St. Joe's eyes. The first is competition, the second is a home w/ one "owner".

 

[SablePoint]

There was an incident recently in Watercolor where investors have three homes under contract. They then begin selling fractional. Watercolor has stepped in and refuses to allow the investors to close. Personally I believe this is a great way to allow people to own without all the financial stress.However, St Joe is attempting to block these types of sales although they sell fractionals in their condo's in Watercolor.

There were 3 homes purchased (or attempted purchase) back in March or April by the Private Escapes company mentioned above. These are probably the same 3 you're talking about Franny. For whatever reason, JOE has issues with their business model. I'm assuming that JOE knows more about them than we do and has a valid reason for stopping it.

But with regards to a few individuals buying a house together, there are already many small partnerships in WaterColor where several families have purchased a vacation home together.

I believe that JOE makes a distinction between the two.

Thanks,
Wayne

 

[SHELLY]

There were 3 homes purchased (or attempted purchase) back in March or April by the Private Escapes company mentioned above. These are probably the same 3 you're talking about Franny. For whatever reason, JOE has issues with their business model. I'm assuming that JOE knows more about them than we do and has a valid reason for stopping it.

But with regards to a few individuals buying a house together, there are already many small partnerships in WaterColor where several families have purchased a vacation home together.

I believe that JOE makes a distinction between the two.

Thanks,
Wayne

According to Private Escapes' website, they've already got 3 properties in Watercolor. What that company does is purchase properties around the world and then it sells memberships in the "club." The members pay a big chunk of change upfront to buy in, then pay annual dues and a daily rate for use of the property. Apparently, members are also entitled to get a portion of the profit if the club sells a property. :roll:

The sales pitch of these destination clubs is that one can vacation at spectacular locations and facilities (condos, homes, castles, yachts, villas, etc) around the world without having all the ownership hassles (down payments, mortgages, insurance, taxes, property/furnishing upkeep and management) and not being tied down to the same old-same old place year in and year out.

Good concept at first blush, but some of these clubs have already filed Chap 11. Wouldn't surprise me in the least to find out later on that some of the 'founders' of these clubs (and their friends and relatives) have unloaded their depreciating "vacation investments" (at a hefty profit to themselves) into these clubs.

I also don't doubt that JOE is frowning on the private sector "fractional" sales concept--JOE's balance sheet is bleeding red and it is now doing fractional sales gigs itself. If JOE has a scintilla of business sense left--and is able to write and rewrite the rule book--it will do what it must to crush the competition.

.

 

[tistheseason]

We have a fractional partnership (we still call it fractional even though we only have one deed and we each have shares in the LLC). So far so good. We love that our house is not on a rental program -- it's furnished nicer than a rental and it's better taken care of. All of our partners had to pay cash and no one can leverage the house. I think it's a great way to have a vacation house. . . .but I'd be careful to select good partners!

 

[bamasam]

We have a fractional partnership (we still call it fractional even though we only have one deed and we each have shares in the LLC). So far so good. We love that our house is not on a rental program -- it's furnished nicer than a rental and it's better taken care of. All of our partners had to pay cash and no one can leverage the house. I think it's a great way to have a vacation house. . . .but I'd be careful to select good partners!

For the most part that's what I've been hearing. Sounds like you have come up with a great way of running your partnership and that's what we're trying to do.

 

[Jollydog]

We have been putting partial ownership groups (5) together since 1982. It's a great way to have your OWN place at the beach. We have one in Blue Mountain and one in Orange beach. We are putting one more together in OB and also one in Blue Mountain(if you are interested). We have also discovered over the years it can be a good investment, if you do it right. As your friends discover what you have, some will become very interested in joining your group if a share becomes available as they will from time to time. Good luck.

 

[bamasam]

A quick question for anyone with expereience or point-of-view, how do agents in the SoWal area view the "partnership" proposition in terms of an opportunity for an earned commision?

I ask b/c we have had mix results (not in the SoWal area) in the past with agents regarding parternships.

We see the partnership option as a win-win situation for agents. First, we will use an agent to to purchase the home. Now we may not have our partnership complete when we make the purchase so we may list additional partnership shares through an agent.

To us this seems like a win now and win later situation for an agent.

Thoughts?