I am a former TIMESHARE EMPLOYEE IN MEXICO

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Original Message:

Re: I am a former TIMESHARE EMPLOYEE IN MEXICO (by David K.):

You are a "real estate investor" ? Not a very good one I think. How do you figure 2 weeks time in a villa would be worth $95,000 plus $15,400 annual maintenance fee?

Do the math: To have this place for a full year at those rates would mean a purchase price of $2,470,000 and $92,400 maintenance fee. Don't you think you could buy yourself a small hotel and pay all the expenses for that kind of money?

What possessed you to make such a foolish decision.

mariaa415 wrote:
Hi there,

I purchased a 3 BR / 5.5 bath private Villa at a resort in Cabo almost a year ago. It's a deeded purchase, so it's actually a fractional use property and I have 2 weeks a year.

The story I was told was that I was buying a foreclosure for about $95k and that the market value is $210k. (I do have this in writing.) I was of course told several other unenforceable details but I do have a written guarantee of rental for the villa of $7700 per week NET for 5 years.

I was also told the developer would buy back the fractional rights from me at 75% of market value (not what I paid) so that would be $157k, enabling me to get a quick flip done and a nice profit. I have emails, texts, and audio recordings of this even though in my contract it's stated as a first right of refusal.

The company coerced me into paying off the note completely because they told me they would definitely buy it back within 90 days. 90 days later: they say the people who told me that no longer work there and that they have never bought back any fractional usage contracts nor do they plan to do it.

I am just a real estate investor and broker, not interested in personal use. Now I am looking into selling my contract, renting it out, or getting involved in litigation with the developer and I'm looking for reputable recommendation of resellers, lawyers and rental agencies in the Cabo area. Do you have any suggestions?

There is a lot more to the story but I don't want to get too far ahead here.

Thank you!

Maria