Shell Island Resort is a GLUT at the Moment

Shell Island Resort is a Glut at the Moment 2024

Hey everybody it’s Jay, the owner of wilmington-real-estate.com, and the home page for that site is right here. It is the best site in southeast North Carolina. Also compared to everyone else around here actually it's the only real real estate blog with heavy duty, deep dive content on various niches of real estate. Okay so Ocean Lakes neighborhood, and depth how do the numbers work HOA fees in Brunswick Forest, what happened to Kure Beach...it became like Wrightsville Beach, you know etc. I have a whole bunch of serious articles and pieces. I'm gonna real quick point out an observation about shell island resort. I’ve been a top realtor there at shell island resort on the list side and the buyer agent side for quite a while, and it’s crazy right now you have, let’s see how many is this? You have one, two, three, four, five, six, and then I think it even scrolls down more, i don’t know how to use this dumb thing, good lord, yeah and then another one right here. So you have seven active units for sale and at my website it shows really well, one, two, three, four, five, six, seven units for sale that are active. Some of them have been active for let’s go back and highlight that, one year, 392 days, two years, 727 days, that’s pretty wild. It tells you there’s some stubborn sellers out there that’s for sure.

Is there something wrong with shell island resort? No, the price has peaked. I think some people realize it's done. It’s not going up anymore so we’re out of here, that’s just a theory that these sellers sort of waited a few months too long to bail or cash out though. Or maybe they just have life curveballs and they’re, moving their money, play money, you know 1031 money. They’re moving it somewhere else. I recently sold two units at shell island resort and it’s because the investors wanted to move their money somewhere else and it’s their prerogative. So we did not sell for top, top dollar because we wanted to just move the money to a different investment property. So they did not ask me for top dollar, they asked me to get it sold, so we did.

So these have been listed, some of these forever, 625, 595, 625, and now a 619, I mean good lord, what what what planet are these people living on. So I sold a guy with whom I have six transactions with. We sold one for 560, because that was his prerogative. Could we have gotten more? Yes, I believe the market value is more closer to around 575 now. So a lot of these people could get a quicker sale if they’ll just come down, they might be shooting themselves in the foot long term, etc. then their question is what’s going on here? Well you can see going back to last year, this is October, prices have stayed pretty flat here: 545, 555. There was one higher sale, but generally they’re they’re there around you know $560,000 for example unless there’s some special reason, like it's a ninth floor unit.

What are the Numbers at Shell Island?

So I’ve just been blown away as someone who just loves shell island resort that I’ve never I don’t know if I’ve ever seen seven active listings before. It’s sort of freaky. If you’re interested in that community I would recommend throwing out 550 offers to multiple units and seeing if somebody wants to do business and then you go from there. How do the numbers work here? Well basically they gross for example $57,000 and then you subtract $6,000 in hoa fees so you're at 51,000 and then you subtract a few thousand of taxes so you're at $48000, you have the Inlet assessment every  five years that averages out to maybe you know a $1000 a year, but it may be much less so now your down to $47000 and then you have the onsite property management fee that's 36%. It’s a whopper and I can find you properties with higher return on investment (ROI) than shell island resort, that is for sure. But when you take that out, I don’t have the calculator right in front of me, in the end, for example, you're keeping $25000 for yourself when all these fees get added up. So you take $25000 divided by 575 and you get an idea of where your numbers are. However when you do a proforma and you take depreciation and stuff instead of a 4% return you might be getting a 6.5% return you know something like that.

They’re a great place and reliable place to safely put your money and you know what you’re getting, and there's so surprises unless you get a hurricane but even at shell island resort they’re heavily. Insured investors still got I believe 20,000 to 10,000 checks maybe back in 2019 or when units were not available to rent because they had some income insurance there. I don't think any other places had income insurance in place that I've heard of anyway so it’s run very well but the management fees are extremely high. You get these high management fees too in Myrtle beach markets but down there you’re allowed to actually with many of those buildings that have lazy rivers, bowling alleys, etc. You can bring in your own outside manager there and often get it managed for 15%. However down in North Myrtle Beach condos you don’t have as much opportunity for appreciation because there’s so many condos in Myrtle beach and north myrtle beach. I mean it’s mind blowing but you can get higher return on investment year in year out if you’re just looking for annual returns and what you keep with cash flow. In North Carolina we do have let me just peek up here to atlantic towers real quick and show you just because it has such a different way of doing things. There we go, sorry about that you guys. Okay there’s about two active now there was about six before. The thing that's interesting about Atlantic towers, it's also a condotel highrise Carolina beach but instead of a 36% management fee if I recall correctly they’re a 19%. So you can actually keep more of your money over here and down there. So I've got all the inside juicy details on a bunch of condos from North topsail Beach where you might have a $13,000 hoa fee because of additional insurance assessments added on. The Kure Beach Ocean dunes can have a $20,000 hoa fee in kure beach. But my point is I've got it all memorized practically across a whole bunch of beaches to help you, but for now shell island resort is having a hard time. There's a glut of listings; there in one way though, it's an opportunity for buyers to send out feeler contracts even orally and offer to do business with somebody.

7 Properties
$625,000
Neighborhood: Shell Island Resort
1
Beds
1F11/2
Baths
540
Sq.Ft.
1986
Year Built
23
Days on Site
100441189
MLS
$595,000
Neighborhood: Shell Island Resort
1
Beds
1F11/2
Baths
565
Sq.Ft.
1986
Year Built
30
Days on Site
100439827
MLS
$625,000
Neighborhood: Shell Island Resort
1
Beds
1F11/2
Baths
565
Sq.Ft.
1986
Year Built
30
Days on Site
100439828
MLS
$580,000
Neighborhood: Shell Island Resort
1
Beds
1F11/2
Baths
590
Sq.Ft.
1986
Year Built
40
Days on Site
100437709
MLS
$619,000
Neighborhood: Shell Island Resort
1
Beds
1
Baths
580
Sq.Ft.
1986
Year Built
69
Days on Site
100432162
MLS
$599,900
Neighborhood: Shell Island Resort
1
Beds
1F11/2
Baths
586
Sq.Ft.
1986
Year Built
282
Days on Site
100327371
MLS
$575,000
Neighborhood: Shell Island Resort
1
Beds
1F11/2
Baths
534
Sq.Ft.
1986
Year Built
403
Days on Site
100378754
MLS

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