Danger - Timeshare Scams - But It All Sounded So Good

The concept of Timeshares came from Europe in the 1960s, and the first American program began in 1969.

Timeshares are basically one of two types; either one fee simple - a deeded property which can be left in a will to your heirs; or two a vacation membership with a "right to use" which has a limited term.

A timeshare is a unit of time, usually a week in a condominium-style facility at a resort, which may be purchased for an infinite or limited period of time.

Timeshare Ownership Products

Today, there are several types of timeshare programs from which to choose, enabling you to purchase the type of vacation ownership that best matches their needs and lifestyle.

Timesharing is a term which describes a method of use and ownership. It denotes exclusive use of accommodations for a particular number of days each year. Usually sold by the week.

Legal Forms

The purchase of a timeshare can take many legal forms. Under a fixed-unit, fixed-week deeded, the purchaser receives a deed allowing the use of a specific condominium at a particular time every year.  

Under a right-to-use plan, ownership of the resort remains with the developer. The purchaser reserves the right-to-use one or more resort accommodations for a specified number of years, ranging generally from 10, 20, 30, 40 and sometimes up to 50 years, after which all rights return to the developer.

Club Memberships

These type of plans come in a variety of forms, they are most commonly known as a club memberships.

Vacation intervals are sold as either fixed or floating time. With fixed time, the unit, or unit type, is purchased for a specific week during the year.

That week is reserved for the same owner every year, subject to cancellation if the vacation owner does not plan to use it in a given year.

Floating time is the use of vacation accommodations usually within a certain time or season of the year. The purchaser may also receive a deed under a floating arrangement.

Within floating time, the price differences are based on the demand within each season. The owner must reserve the desired vacation time in advance, with a reservation confirmation typically provided on a first-come, first-served basis.

Then there is the vacation clubs or point-based timeshare programs which provide the use of accommodations in multiple resort locations.

With these timeshare products, club members purchase points which represent either a travel and use membership, or a deeded real estate product.

These timeshare points are then used much like money to access the deferent size accommodations, season, and number of days at the participating resort.

Fractional Ownership

That brings us to what’s called fractional ownership which enables the buyers to purchase a large share of fractional ownership usually from 3 to 26 weeks. This type of ownership is very popular in beach, ski, and island resort areas around the world.

It all sounds so great but not so fast, if it’s all so great, the question must be asked, why are there some many timeshare cancellation in the timeshare today’s market place?

The answer is because for the most part, the way timesharing is sold. If we were to list the ways that the timeshare resorts are training and retraining their salespeople to scam you that would be a very long list because the ways goes on, on, and on!

If you have become part of this big timeshare scams list by buying a timeshare you now know what I’m talking about.

We have valuable FREE information that will help you discover how to cancel timeshare contract – yes, you can permanently cancel your timeshare payments, all maintenance fees and your entire timeshare contract.

If you own a timeshare and would like know how to cancel a timeshare, to learn more about a timeshare cancellation see our frequently asked questions or give us a call.

To find out more about timeshare cancellation log onto our website:

www.TimeshareCancelCenter.com

-----------------------

www.TimeshareCancelCenter.com
5036 Dr. Phillips Blvd. #221 Orlando, Florida 2819-3310 USA

For A Free Consultation, Call 24/7: 1-855-600-9053   

Investing in a Timeshare? Financial Risks and Warnings

Financial Risks And Warning For Investing In A Timeshare

If you own a timeshare or are thinking about purchasing a timeshare here’s news you can use. A leading news story reported that they spoke to timeshare owners, financial advisers, and industry representatives to help you identify the costs, benefits, and drawbacks of owning a timeshare.

Timeshare Ownership Pros And Cons

Pro: Save on travel expenses. Timeshares come equipped with a full kitchen and laundry facilities. And can save you money by cutting out extra expenses, like paying for a coin-operated washer-dryer. Access to a full kitchen also enables timeshare owners to stay in more often to make home-cooked meals.

Con: Timeshares can be very difficult to resell if not impossible to resell. It’s also important to know what kind of real estate interest you actually own when you purchase a timeshare.

In about 95% of timeshare sales in the U.S. you’ll actually get a deed to a property, called a “timeshare estate” under state law, which often means you can rent the share out, sell it or exchange it, and pass it on to your heirs.

What They Tell You

The timeshare sales people tell the buyers that timeshare is like any other deed in real estate you can hold it in perpetuity, though you have to pay the maintenance fees each year, just like property taxes.

And they also tell the buyers that the buyers can sell the timeshare anytime they want too. What they don’t tell the buyers is like I said before timeshares can be very difficult to resell if not impossible to resell.

Con: Timeshares outside the U.S., such as in Mexico, are known as “timeshare licenses” or “memberships” which typically only give you a right-to-use for only as long as the contract permits and can have many other restrictions. One important fact is that, if you sign a contract outside the U.S. for a timeshare in another country, you will not be protected by U.S. laws and it is also very difficult to do a timeshare cancellation.  

Timeshare Scams And Fraud

Con: There is also a substantial amount of timeshare scams and fraud in the selling and reselling timeshare industry. Scammers prey on timeshare owners, promising to resell their timeshare for an upfront fee. So you pay the several hundred dollars upfront and never hear from them again.

Con: With traditional timeshares, not only do many buyers get involved in many timeshare scams but they also have to pay a lump sum upfront, which allows them use of a specific unit at the same time every year.

In today’s timeshare market, a one-week interval is most common, but the time frame can be shorter or longer depending on the unit. Timeshare owners are also required to pay annual fees that cover maintenance costs.

Average Price Of Timeshare

Con: Timeshare cost a lot of money. The average sales price for a one-week timeshare is approximately $16,000, with an average annual maintenance fee almost $700, according to the American Resort Development Association.

Con: These days, timeshares increasingly operate on a points system and these points cost a lot of money.

For all these and many more reasons today timeshare cancellation are on the rise, big time! If you have purchased a timeshare and would like to cancel but are not sure how to cancel the timeshare we can help you.

Most timeshare buyers are unsure that they can handle the task of doing a timeshare cancellation or they have succumb to the timeshare high pressure sales or one of the many timeshare scams and would like to cancel.

If you own a timeshare and would like know how to cancel a timeshare, to learn more about a timeshare cancellation see our frequently asked questions or give us a call.

To find out more about timeshare cancellation log onto our website:

www.TimeshareCancelCenter.com

-----------------------

www.TimeshareCancelCenter.com
5036 Dr. Phillips Blvd. #221 Orlando, Florida 2819-3310 USA

For A Free Consultation, Call 24/7: 1-855-600-9053   

Time Share Scams - You Need to Avoid - How to!

How To Avoid Timeshare Scams

A timeshare, also known as vacation or fractional ownership, is a real estate program in which a residential property is divided among many owners who have purchased the right to use the property for a specific period of time.

Timeshares are one of the top sellers in the travel and hospitality industry. Thousands are available and millions of people "own" them. But that doesn't mean timeshares are a good idea. An article on MarketWatch.com tells us that timeshares are generally marketed and sold to people who really can't afford them.

The idea of timeshares originated in France over 50 years ago when a developer in the French Alps decided to sell shares in a property rather than trying to rent rooms.

That original timeshare model proved to be successful and it increased in popularity in Europe throughout the 1960s, when escalating property prices made it difficult for most people there to afford a vacation home.

Today, over 10 million timeshare owners worldwide have access to more than 6,000 resorts in 95 countries.

An estimated $10 billion in timeshares are sold every year, making them one of the top money producers in the global travel and hospitality industry.

Types of Timeshares

A timeshare involves a room or rooms at a resort destination. Instead of paying full price, each owner pays only a share of the property’s total cost and can only occupy it during an assigned number of shares purchased.  

Most timeshare purchases are deeded or “fee simple”. This means that the purchaser is buying an actual share of ownership in the real property, and can resell, rent, give it away or bequeath it to their heirs, just as with any other type of real estate.

This kind of timeshare share may be for a specific week(s), a specified season(s), called floating system; or one where the usage week(s) changes from year-to-year on a fixed schedule or rotating timeshare system.

Non-Deeded

In contrast, all non-deeded timeshares, are known as right-to-use, or vacation-interval timeshares, they more closely resemble a lease. The buyer owns the-right-to-use the property for a specific period of time, and usually for a number of years, but doesn’t actually own it. At the end of the term, usage rights go back to the original property owner.

Two variations of the timeshare concept are vacation clubs and points-based programs. A vacation club is a company that owns multiple timeshare properties in different locations, which are rented to its vacation club members. Club memberships can also be bought, sold or passed to heirs.

Membership in a timeshare points program provides the buyer with a specified number of points that can be exchanged for timeshare usage at various properties owned or contracted by the operating companies, which are often hotel chains or well-known resorts.

How To Avoid Timeshare Scams

Even though the unpleasant sales practices in the timeshare industry get lots of press most timeshare companies still rely on the high pressure and hard sell approach.

Potential buyers are always encouraged to stay for a very lengthy sales presentation with the promise of extravagant prizes like free vacations, cash rebates, etc., if they endure the entire sales spiel. However, the gifts aren’t always what they seem, and often come with some kind of fee or hook.

Moreover, timeshare salespeople are taught to wear down potential buyers and overcome their objections and reluctance to buy by offering attractive big price discounts but only, if the buyer signs a contract on the spot.

As with any other sales pitch, the key to avoiding a bad deal is to never make an impulsive decision and never sign anything simply to escape the high sales pressure.

Instead, interested parties should always take the information home, read the entire contract over very carefully and make sure all of the costs, including maintenance fees and assessments are fully explained.

Buyers should also understand the benefits of legally rescission periods, during which a contract can be unilaterally cancelled within several days of its signing.

Knowing that a sale is reversible and that all upfront monies are required to be returned, can protect a consumer from his or her own impulsive decision making. Rescission laws vary from state-to-state, so information needs to be obtained from each state.

If you already own a timeshare you also need to be very aware of timeshare scams in the timeshare resale market.

Finally, timeshare buyers are advised to be very wary of purchasing timeshares in foreign countries, as they will not be protected by U.S. laws in cases of fraud.

The Big Timeshare Myths

I can get a great deal on a timeshare and go for vacation every year and save lots of money!

I can always sell my timeshare if I don’t want it anymore and get my money back.

Timeshare Truth

Timeshares are one of the biggest scams on the market today. Once you are stuck in one, you are stuck in a big, deep black hole. The first two words that should come to your head when you hear the word timeshare should be . . . run fast, so you can escape that annoying, high-pressure salesperson!

Questions To Ask Yourself

Ask yourself this, why would you pay thousands and thousands of dollars for a place that you might get the chance to visit for one week each year?

And a place that you have absolutely no equity in the timeshare.

And don’t forget, you have to pay extra ongoing high priced "maintenance fees."

And reselling that timeshare is almost impossible.

And the timeshare is basically just a very big expensive, which many timeshare owners call an ongoing headache!

Are You A Timeshare Owner

If you already own a timeshare, the good news is, your timeshare contract can be canceled. Yes a cancel timeshare can be a reality.

We have valuable FREE information that will help you discover how to cancel timeshare contract. Yes, you can permanently cancel your timeshare payments, all maintenance fees and your entire timeshare contract.

If you own a timeshare and would like know how to cancel a timeshare, to learn more about a timeshare cancellation see our frequently asked questions or give us a call.

www.TimeshareCancelCenter.com

5036 Dr. Phillips Blvd. #221 Orlando, Florida 2819-3310 USA

For A Free Timeshare Cancellation Consultation,
Call 24/7: 1-855-600-9053   

How to Earn More and Work Less with Note Investing

Whether you know it or not, you are probably already involved in note investing but on the wrong side of it. Investing in notes is the process of buying debt in the form of credit cards, student loans, mortgages, or car loans. But instead of making payments, you collect payments from the borrower, which include a higher than average interest rate.

Many investors think that note investing sounds too good to be true, or may even think it is a scam. This could not be further from the truth. Note investing is simply the process of purchasing debts that borrowers owe. Once you purchase the debt, you earn interest each month until the debt is paid in full by the borrower. This interest can range anywhere from 3% on a mortgage note to well over 15% on a debt like a credit card. The interest rate is not subject to changing market conditions so you earn the same rate over the life of the loan, which can be anywhere from a few months to 30 years, depending on the terms of your investment.

While there are many types of note investing like credit cards or car loans, there are some specific advantages that come with investing in real estate notes. Investing in notes that are tied to the real estate market is very similar to trust deed investing. Basically, you purchase a mortgage debt from a bank. The bank benefits because there is less of a risk of loss in the case of default because it has capital from you. You benefit because you can now start earning the interest that is paid by the borrower each month. While this may be a relatively low rate, it is usually a high payment due to the amount of money involved in the transaction. You can earn hundreds every month compared to a credit card note which may have a higher interest rate but generally a lower balance so the monthly interest payment is less.

Higher monthly payments makes real estate note investing one popular way to start investingin notes is to invest in real estate notes. In this situation you basically buy a promissory note that is part of a mortgage. You hold the note and earn interest. You receive payments each month until the mortgage is paid in full and then you get back your initial investment. You don’t have to work for your payments, you sit back and let the cash flow in.

Risks and Benefits of Non-Performing Notes

Real estate note investing also has an extra opportunity for smart investors to earn high returns, non-performing notes. A non-performing note is exactly what it sounds like, a debt that is currently not being paid. When a mortgage is not being paid, the bank has two options, foreclose on the property or sell the note to an investor. While several years ago foreclosure was the first choice, many banks are now opting to sell non-performing notes.  By selling the note rather than going through the expensive and sometimes drawn out process of foreclosing, a bank stays out of the chain of title, doesn’t become liable for the property’s environmental conditions and doesn’t have to worry about ownership issues. The sale of non-performing notes is a cheaper alternative to foreclosure.

Once you own a non-performing note, you basically fix up the note the same way you would fix up a property. You can renegotiate the terms of the note with the borrower if you goal is long term monthly payments and interest earning. Or, if you would prefer to own the actual property that you hold the note on, you can foreclose on it and take possession. From here you can rent it out, fix and flip it, or hold onto it until it appraises for the amount you want to sell it for. Regardless of which avenue you take, you will make a profit on your non-performing note.

The greatest risk with non-performing notes is that you will lose money during foreclosure. You can help make this less likely by knowing all the laws related to foreclosure in the state where you own the note. Make sure to take into account any extra expenses the foreclosure process may entail.

Call us today to get started with note investing and non-performing notes!

At Level 4 Funding, we specialize in alternative investment strategies like investing in notes. We can help you through the process to help you start working less and earning more!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Pitfalls of Trust Deed Investing and How to Risk Less

Many homeowners think the only people involved in their mortgage are them and the bank. However, this is not usually the case as most loans also have a trustee who has engaged in the process of trust deed investing as a way to build an investment portfolio.

Trust deed investing is generally considered a relatively safe investment because it is backed by real property than can be used as collateral in the event of default. However, like any investment there are risks. Namely, deeds of trust are not insured by the FDIC so there is not guarantee that you will get your money back. Also, if the borrower declares bankruptcy then the home cannot be easily foreclosed on without a lengthy legal process. Depending on the outcome of this process, it is possible to lose some or all of your investment.

These risks are not unique to trust deed investing as every type of investment does have some inherent risk. There are a few ways to minimize these risks and maximize your profits. First and foremost, work with a private lender or equity firm that is experienced in trust deed investing. Make sure that your lender has loaned on deeds of trust before and can explain the process to you, including any and all risks.

You can also help mitigate risks by doing your due diligence. Research a property’s title status and market value. This will help you make sure there are no issues with the title that would prevent a foreclosure. Knowing the market value will help you ensure that the property will be worth the amount of the loan or more in the event of default. This is especially important because the bank will get paid back before you do so you want to be sure there is enough money to recoup your investment. Sound intriguing and want to know more? Keep reading to learn the ins and outs of trust deed investments and how you can get started today!

How Trust Deed Investing Works

When you buy a property in Arizona and finance through a bank like Wells Fargo or Bank of America, most people think the bank holds the deed to the property. This is not the case. Usually someone’s grandma in Oklahoma or an investment banker in New York purchases a promissory note, funds your loan, and retains the legal title to the property. Sounds complicated, but really it is not, it is all part of trust deed investments.

The investor in trust deed investments purchases an interest in a mortgage through a promissory note. The investor can purchase the full mortgage or a part of it. If the investor purchases the full deed, he/she must have enough capital to fund the whole mortgage. If a fraction is purchased then the investor puts up a fraction or percentage of the value of the mortgage or promissory note. In this case the investor has the option to purchase a first or second deed of trust. A first deed of trust means that the investor is first in line to be paid back in the event of default while a second deed investor is more at risk for losing his money.

Once you have purchased trust deed investments, you officially hold an interest in the mortgage. You also hold the legal title to the property on behalf of the bank (the borrower retains possession of the physical property). Each time the borrower makes on time payments, you earn interest from the bank. The interest rates on trust deed investments are often higher than the interest rates on stocks and bonds. Once the loan is paid in full either by sale or after the mortgage term, you get your initial investment back. Basically, the bank pays you to hold onto a piece of paper for them.

But why? This is the main question that holds many people back from trust deed investing. Why would the bank pay you interest to hold a paper for them? The reason has to do with foreclosure procedures in the event of default. The bank cannot hold the title to a property so if there is no trustee, the borrower retains both the legal and physical tittle to the property. If the borrower defaults, this makes it very difficult to foreclose. If the legal title is held by a third party, a trustee, the trustee can foreclose on behalf of the bank, making the process much quicker for the lender.

Trust Deed Investing is a Win-Win for the Investor and the Bank!

Learn more about this lucrative investment strategy by calling a private lender or equity firm today! While trust deed investments are safe when done correctly, loop holes and other paperwork issues can get in the way. Make sure you use a financial professional to help you navigate the world of trust deeds!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027