Thread: Trump Ocean Club

am a prospective closer for a Hotel Condo in the Trump Hotel. I have paid the required deposit of $112,500 am due to pay the balance of c$294,000 if I wish to close, having been in on this from the beginning. I am increasingly conderned that we have been duped over this investment. In the UK we were advised by the Trump Sales Agent that the deal was that we would get 50% of the rental income, less £1 per sq metre per month, less 4% for FF&E. This, even at a daily rental of only $150 and an occupancy of only 50% would give a profit of $12,400 per year. At an occupancy of 80% this increases to $21,000.
We have only just had sight of the Management Agreement and the Rental Program. The Fixed Costs for us are horrendous, amounting to c$2000 per month and with the other charges, including the 'Incentive' payment of 15%, amounting to a total of 21.3% will result in a loss of c$8,000 and a profit of only c$2,000 using the same criteria. And this is without any insurance premium or monthly membership fee for the Club-when it comes, requiring a further $15,000 joining fee.
I am now faced with the decision on whether to close or not, as will be the case for many other prospective owners. If I decide to close it will cost be a further $294,000, plus another $15,000 Club joining fee. I can buy a Condo for $200,000/250,000. So why close? If I sell, after closing, I will get less than $200,000 taking account of fee reductions. If I walk away I lose $112,500. This latter has to be the cheapest option. What do you think? Frankly I think we have been stuffed and illegally.

1.There is no point in closing on your numbers.
2. Realtors routinely lie through their teeth to get a sale.
3. Yes, you have been stuffed.

See the TOC investor jitters thread for other people in your position and what they intend to do about it. If you were in at the beginning in 2006 you should only have paid about $215,000 for a hotel condo unit?