Timesharing Condos??? - Posted by Dan

Posted by Dave T on May 27, 2000 at 22:14:35:

A timeshare is an interval ownership. You “own” the exclusive right to use the property during a specific period of time each year.

I assume that you are not considering buying a timeshare property, but rather converting a property to a vacation rental. What you are describing sounds more like a partnership investment operated as a hotel. As such you should be aware of IRS tax treatment for your property. The IRS will classify your property as business property – not investment real estate. Your depreciation schedule will be 39 years instead of 27.5 years. With a group of investors involved, you will probably need to create a limited partnership to own/manage the property. The general partner will be responsible for filing the partnership tax return and issuing a Schedule K-1 to all limited partners.

If you, instead, purchase and operate the property as you described in your own name, your income and expenses would be reported on Schedule C instead of Schedule E. You may also be subject to self-employment taxes.

Timesharing Condos??? - Posted by Dan

Posted by Dan on May 26, 2000 at 01:12:26:

One thing I have not seen discussed often on this site is timesharing. I live near Branson Missouri where I know there is alot of money being made in this area. It seems like that a good idea would be to get three or so people together and pool our money to purchase condos for timesharing and as an added bonus, our own usage. Like say 4 people get together and purchase a 2 bedroom 2 bath condo for 70 grand, buy furniture for the place for another 3k or so. We each would pay roughly 200-250 a month for this condo. Branson is a year around tourist attraction, bringing in people from all over to see the shows and what-not. Such a condo could probably bring in 100 bucks a night. Say we set a 4 day minimum for leasing the condo out and do this 3-4 times a month. For 16 nights a month at 100 bucks a night that would be 1,600 a month gross income minus 800-1000 a month that we are paying on the mortgage, condo fee, cleanup and utilities. Of course with the hot market down there it could be rented out much more than 16 nights a month. I dont know if this would be worth doing or not but it is just an idea that most of the experts on here have probably heard about.
Anyway any feedback on this timesharing would be great!'
Thanks

Re: Timesharing Condos??? - Posted by chris

Posted by chris on May 27, 2000 at 12:52:38:

Dan-

Atty Robert Bruss has a lot of good pointers in a past edition of his RE Newsletter about buying condos and it is only $4 at https://secure.inman.com/bruss/.

For the timeshare part of your post I can only recommend that you search the archives(top of page) here at CREOnline as well as check out what the timeshare competition is doing in that area. A lot of the tourist areas have timeshares operated by large companies. I’m sure you could even get some freebies the next time you are in Branson by attending their
mandatory sales presentation. This would provide you with much of the info you need to figure out a competitive plan if you decide to do this.

Hopefully others will ring in on this.

-Good Luck,Chris