I'm only talking about buying it at or below today's fair market price, not eating an above market portion of the note. Without a huge debt, there's no reason the club, run properly, shouldn't be successful IMO.
I don't mean to hurt anyone's feelings with my comments, only that I'm interested as to the financial risk associated with purchasing this from auction.
Let's assume you buy the mortgage for $3MM (I think I remember the note is for ~$4MM). Assuming you somehow find a bank willing to give you a 25 year $2.5MM note @ 5.00% (little cushion built in)= (-$235M in annual P&I payments)
It costs you $1.5MM a year to keep the facilities running, all in. (-$1.5MM)
You have ~150 members paying ~$5,000 a year in dues. (+$500M)
Significant guest play fees, lodging, pro shop, etc.. (+$250M), F&B breaks even.
That's a $985M loss.
Would you still buy it?
Granted the math above is hardly a detailed financial model, nor does it take into account any actual information from Ballyneal's books. However, my guess is that either Ballyneal needs about 100 more members paying similar or higher dues, or whomever buys the course would have to have deep pockets and no mortgage.