Its absolutely worth $500!! You could part it out for that much or more. Title isn't a big a deal as it used to be. There are places online where you can get a title, it will cost you a couple hundred, but if thats what you want, it can be done.
I picked up a 76' 400F as a parts bike for $100 on ebay, they guy was local, so it worked out well. Same deal, no title and the bike was almost complete, only missing the tank. The motor is free, but the cam chain is broken so it only partially turns. Then again, it's my parts bike.