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SEVEN SEAS RESORT
Prospectus
Timeshare Sales &
Operations
This Prospectus is
based upon the Buyers outsourcing the Marketing & Sales of the Timeshares
and paying the commissions & Expenses as estimated herein. Buyers may choose to perform the Marketing
& Sales themselves and decrease Marketing & Sales cost by 20% or more.
US Dollars
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Total of 27 condos to be sold*
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Expense
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Income
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Net
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* Upon purchase Buyer will have 8 condos available for timeshare
sales. As sales of those 8 condos
proceed the 13 condos will be constructed with funds from those sales and 6
additional condos may be purchased from motivated sellers.
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Sale of 8 condos
(Available upon purchase)
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408
weeks x 12,800 ea.
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5,222,400.00
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Sales
& Marketing Cost: 40%
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2,088,960.00
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0.00
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Sale of 13 condos
(to be constructed)
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663 weeks x 12,800 ea.
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0.00
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8,486,400.00
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Marketing
& Sales Cost: 40%
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3,394,560.00
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Construction
of 13 condos at $75,000 ea. (All
infrastructure is in place)
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975,000.00
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TOTALS
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6,458,520.00
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13,708,800.00
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NET SALES INCOME - (Sale of 1,071 weeks)
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$ 7,250,280.00
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SALE OF 6 ADDITIONAL CONDOMINIUMS
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Expense
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Income
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Net
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To
be purchased from owners who are motivated to sell.
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306 weeks x 12,800 ea.
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3,916,800.00
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Marketing
& Sales Cost: 40%
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1,566,720.00
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Purchase price of 6
condominiums @ average price of 100,000.00 each
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600,000.00
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TOTAL EXP. & INCOME - (Includes
purchase price of 6 condos & sales costs)
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2,166,720.00
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3,916,800.00
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NET SALES INCOME - (Saleof 306 weeks)
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$
1,750,080.00
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TOTAL NET TIMESHARE SALES - (Saleof 1,377 weeks)
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$
9,000,360.00
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TIMESHARE
OPERATIONS
ANNUAL MAINTENANCE FEES INCOME
On-going each year after sellout of
timeshare weeks
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Expense
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Income
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Net
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Annual
Maintenance Fees after selling all timeshare weeks
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1,377 weeks x 425.00*
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585,225.00
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Annual
Resort maintenance, Insurance & Misc.
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247,600.00
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NET MAINTENANCE FEE
INCOME **
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$
337,625.00
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* The Annual maintenance fees must be
increased to achieve this level of income. We used $425.00 for these
projections but it is possible to go as high as $550.00. The current fees are extremely low and were
kept low to facilitate timeshare sales. Standard accounting practices will
support increased fees.
** This is the recurring annual income after
all timeshares are sold out.
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We believe this projected income from the sale of timeshares to be
conservative and with consistent and systematic marketing these cash inflows
targeted are achievable so long as Buyer/s are successful in buying back and
building the additional condos indicated herein. At this conservative cash
inflow level we believe that the cash flows are adequate to finance the
acquisition of the Resort and result in a significant return on investment for
the Buyer as shown.
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