For all we know, the direction of Donald Trump’s life might have taken an early turn in high school English class, courtesy of a famous quote by the poet William Blake:  “The road to excess leads to the palace of wisdom.”  Never mind that some believe Blake was taking a shot at excess, implying that you really can’t know (be wise about) what constitutes appropriate behavior until you cross the line.  Be it an obsession with birth certificates, preening for the camera, or an over-the-top glee at faux-firing people, no one would ever accuse the Donald of staying on the discreet side of the line.

        Which brings us to The Point Golf Club, the upscale golf community

Would you pay $2,000 more in dues to see your home's value go up $100,000?

club on Lake Norman, north of Charlotte, NC, which Trump and his son Eric are attempting to purchase.  Last night, the pair flew into town in the black painted Trump private jet and then landed at The Point in a black Cadillac Escalade for a closed-door meeting with club members, according to the Charlotte Observer.  (Trump seems to have a favorite color…except in U.S. Presidents.)

        Some of The Point’s residents fear the road to excess is leading to their own buttoned-up community.  But, to be fair, there is no denying that when Trump takes on a golf club or any other property, he puts his money where his mouth is, and in this case, his mouth says he wants The Point; it is therefore unreasonable to assume he is looking to be a passive investor in The Point.  (Is there anything passive about The Donald?)

        Some of The Point members argue that Trump’s very excessiveness will cause him to raise dues significantly.  There is some logic to that, but one could also argue logically that as the quality and reputation of the club at The Point increases, so too will the market values of members’ homes.  For the sake of argument, would you rather pay 20% more in dues over time on, say, $10,000 per year, or accept a 10% increase in the value of your $1 million home?  You don’t need to work for Donald Trump to figure that one out.

        Members will vote later this month on whether to accept Trump's reported $7 million offer.  If they think deeply about it, club members may come to reconcile that Trump’s highway of excess could lead to much loftier values for their palaces.  And that will make everyone wiser in retrospect.

     In its pre-foreclosure days, the Tryon, NC golf community called White Oak couldn’t get itself noticed.  Despite a terrific, yet unfinished golf course and an impressive 980 hilly acres, White Oak’s developers sold just 29 lots and completed just four houses.  Last year, the golf course began to go fallow, the Irish developers began desperately to look for investors to provide survival funding and, out of time, they finally walked away from a few million dollars in obligations late last year.  The golf community is currently in foreclosure proceedings, but the original Irish investors, now out of the picture, must be asking themselves, “Where was all this love when we were here?”

        Two locally owned firms are fighting each other for the property in a state-sponsored auction that amounts to a poker game with unlimited raises. In North Carolina, a “winning” bid for a property in foreclosure can be “upset” by other bids within 10 days.  The “upset bid” restarts the clock, and that bid can be lost to yet another higher bidder.  For a prized property, this bid and re-bid process can go on until all parties put down their paddles.

        A paddle has been going up every week or so in Tryon since

The competitive bidding for a formerly unloved golf community may signal that smart money elsewhere is also betting on the economy.

February 1 when Tryon Equestrian Properties was the high bidder at a little over $3.675 million.  But within the prescribed 10-day “upset bid” period, Overmountain Trace Holdings entered a bid of about $3.86 million (we are rounding off because the early multi-million dollar bids were actually made down to the penny).  Tryon Equestrian countered, again within 10 days, with a $4.5 million bid (no pennies here) but at the end of February, Overmountain topped that with a $4.725 million bid.  Tryon Equestrian or any other bidder has until March 8 to come up with a viable offer of at least $4,961,250 (and a required deposit equal to 5% of the bid).

        Because I recognized White Oak’s potential to attract serious golfers and equestrians alike, and because one of our dedicated readers owns property there, I offered the developers that I would nose around for potential funders to help them get through their rough patch.  I spoke with industry sources with connections to investors in large properties, and they all said basically the same thing (I’m paraphrasing):  “There are many properties in trouble, and the money will be looking first at established communities like The Cliffs Communities and Reynolds Plantation.  White Oak is last in line.”  But there is so much money on the sidelines looking for a home (literally and figuratively) that even a roughed out community with a golf course that requires additional investment is attractive to some investors.  Clearly, that is the case at White Oak.

         This is a signal that the bidding for bigger prizes like The Cliffs, where the bankruptcy court may be entertaining an "upset bid" type process, could intensify; recent statements by The Cliffs board imply they are expecting bids to exceed the "winning" offer by Steve and Penny Carlile.  Even more importantly, investor activity at both ends of the golf community market is a signal that the smart money thinks the economy is improving.  And there is nothing “upsetting” about that.

WhiteOakClubhouseSign

What might have been:  Before the housing market tanked, White Oak's developers had big plans.  Now the golf community is in foreclsoure proceedings, with two investors locked in fierce bidding which is approaching $5 million.