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What would you buy for $195,000?

philemer

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For $195,000 I could feed, and clothe, a lot of poor people for a year or two. :)
 
S

Steamboat Bill

Since my original posts in this thread I would NOT advise anyone to invest in a DC – the risk is too great. The DC industry needs to address the simple fact that the only thing that seems to protect your membership fee is that ebullient voice of the salesrep over the phone.

With timeshares, condo-hotels, condos, and fractionals there are deeds and a bunch of real estate laws that hold the agreement together. This is NOT true with DCs. They make it up as they go.

However, if the amount of money you invest with a DC is something that you would have no problems gambling at Vegas, then that amount of money will not be such a loss if the DC decides to liquidate, sell the deeds, and move to Albania tonight. With $1+ M condos and homes as a minimum, it would not take much for the founders to split $100 M.

Perry...this is one topic that I disagree with you....I feel that the current risk to reward benefit for DC's is well worth it for me and offers MUCH better odds than Las Vegas. I can tell you that I have never been told any empty promises by HCC, ER, or any DC I have spoken to. Fact is...they know they have a superior product compared to timeshares.

You MUST buy a DC from a developer and yes...you are guaranteed to lose an immediate 20% if you want to sell...this is actually MUCH better than almost all timehsares out there where you will lose 50% or more when bought from a developer.

I think of DCs like joining a private golf club, hotel social club, or even similar to joining Costco....you are getting access to something desirable for your membership fee....like a great discount at world class destinations.

As far as condo hotels, fractionals, condos....all these have the potential for $100k losses or more. Yes, you may be up 15% in Maui, but I have heard of MANY people in south Florida walking away from their "pre-construction" deposits of $25k or more because the bottom is dropping out. I have heard of a school teacher filing for bankrupcy because she wanted to get rick quick and could not afford to pay the adjustable mortgage on the $700k Miami Beach condo that dropped in value by over $100k and got forclosed.

So far, the DC industry has been pretty reputable. Most owners of Exclusive Resorts and High Country Club are extremely happy. I would bet you $100 that the average member of a destination club is more satisified with their purchase than the average timeshare owner (bought from the developer).

Yes, T&H went bankrupt as they were the original and had a flawed business plan...the T&H members have been absorbed by another DC that bought them out for over $100 million. Thus, the disaster has been solved.

TUG was started by frustrated timeshare owners and most TUGers ONLY buy resale. As far as I know....there are no frustrated DC owners.
 

PerryM

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A house of cards

Bill,

I love the concept of a DC – I could start a DC tomorrow built on premium timeshare weeks only; the concept is that robust. That’s also THE main problem – anyone can start one of these things and from what I’ve seen most are based on a house of cards.

If the DC is 100% deed oriented, or the equivalent*, AND a performance bond backed up managements grandiose dreams with reality, the DC market would explode. Sadly this is not the case – it’s all blue sky.

Let’s discuss HCC (Link: http://www.highcountryclub.com/about/CEO_Letter.asp) :

Facts:
Average property $850,000

Average occupancy 50%

95% are fully owned (5% leased) 23 condos/homes owned

6 members per property

Current membership fee $50,000

MF $8,400



Using the numbers:

$50,000 Membership fee * 6 owners per condo = $300,000 with a cost of $850,000?

We can stop right here – the numbers make no sense at all. The membership fee should $140,000 ($850,000/6)

The DC industry seems to universally charge 8% of the Membership Fee as a MF. That means the $8,400 / 8% = $105,000; that’s what the Membership Fee should be at a minimum.

So the current prices make no financial sense at all. I asked for an explanation when I first bumped into HCC and never got one that made any sense.

HCC has 205 members that paid, let’s say, an average of $35,000 = $7 M.

HCC says it owns 23 homes worth, let’s say, $700,000 each = $16 M.

The numbers just don’t make any sense to me.


Conclusion:

*There is only one DC I’d be interested in becoming a member – BelleHavens where you own 100% of your share of a condo/house and you get back 90% of the CURRENT membership fee – you participate in the real estate appreciation of the condo you bought into. There is NO reason why HCC could not have adopted this model.

But, even with BelleHavens its built on the trust of a voice over the phone – the problem with the entire DC industry. Someday, one of these DC’s is going to go belly up and the rest of the industry is not going to step in and shore it up – this could spell a major setback to the industry. This key point needs to be addressed and I believe a solution is not hard to find.

If this calamity does happen, remember that a member can ONLY sell their membership back to the DC and not to someone else – another major flaw in the DC model. Almost universally you can only get your money back AFTER 2 new members join. If this calamity happens, who is going to want into a DC? This means you could be stuck with your membership for a long long time.

Until then I believe timeshares offer a safer way to invest in destination condos; another form of DC.
 
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PerryM

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Ok, say the numbers don’t make sense

Let’s take the numbers I presented above and try to figure out what’s really happening at HCC and other DC’s. This is a guess and I have NO inside knowledge – I’ve signed no confidentiality documents.

Let’s say a bunch of smart guys/gals decide that they want to buy and invest in private homes/condos in the hottest markets in the world. Being smart they certainly don’t need to use their own money in the process – use someone else’s:

They buy a condo worth $850,000 in Deer Valley in Park City, UT. They put up half that amount in cash of $425,000 and this is pooled funds, each investor only put’s up about 100k – they get 50 or so investors to come up with $ 5M.

They then start a DC and only shoot for getting $425,000 per condo – they just charge $70,000 per membership fee and get 6 – 7 members per condo.

The members are prevented from getting any real estate appreciation and only get back 80% of what they initially paid.

They charge a hefty MF based upon the real value of the condo and that’s about $8,400 per year. 6 * $8,400 = $50k per year to pay the taxes, pay for cleaning and keeping up the place and reserves to replace furniture and fixtures.

This is a sweet deal for the investors – they own the deeds outright and put up just $100k each!

The members are left paying for the investor's condos.

The investors can sell their ownership in the DC for market value to others and those deeds are used as collateral for building other DCs. This goes on and on and on. Then when this DC has too much profit in it the investors liquidate the DC and get all their money and profits back. The members of the DC get back just 80% of their original investment. Is this a great deal or not? (For the investors of course)

To me, the greatest thing, as an investor or bank, is that little phrase “2 in/1 out”. This insures that memberships can ONLY grow and NEVER shrink in number – this is fantastic and the reason lending institutions and smart investors are licking their chops.

This is all just a guess - tell me where I can sign up for this great deal!
 
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Bourne

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The numbers do not make sense because any successful destination club, including Exclusive Resorts, has to use a staggered buy-in model to create a membership base.

Set up Phase
The club has to initially come up with 10+ properties to even start marketing to any prospective member. That is about 8-10 Mil out of the investors pocket.

Charter Phase
Even with a portfolio of 10 properties and being few months in business, the buy in price has to be lucrative enough to make it worthwile for a member to join in. Exclusive started with ~185K at the top level and HCC with 15-20. On top of it, you have to give deals like 80% of the future price. The extreme shortfall is coming out of the inverstors pocket and to a certian extent from new member sign ups.

Growth Phase
At this point, you increase the buy-in price in a staggered manner. As the number of properties grow, so does the reputation and the marketability.

Stabilization Phase
This is where the investors actually make money. The Club has reached a point where the growth of the club and the cost of running it is handled by member signups and annual dues. This is where the calculation between members and properties hold true. To make a point, Exclusive resorts is the only club to almost reach this point. By the managements own addmission, they are few years away from breaking even. i.e. investors to not need to add money into the pool to run the club. In the whole picture, the net unrealized gains in appreciation of properites is what the investors are banking on.

Any club that does not follow this model is going to stunt their growth and probably not be successful.
 

PerryM

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It's a great deal, for the investors at least

Bourne,

Since all the internal workings of these DC’s are secret, like II and RCI, we can only guess – yours makes sense. Those that signed the confidentiality agreements, and know how this works, can’t shed any light on this matter.

I’m assuming that the model I presented would immediately attract both investors and members – start up would need some “Today only” specials like the timeshare market to get the pump primed. Slick salesreps are readily found in the high end timeshares or fractionals.

However, as I understand, ALL DCs can be liquidated anytime the investors decide and the members are left to the “Termination Clause” of the contract they signed as members. That Termination Phase provides, in most cases, for 80% of original membership fee. The investors, on the other hand get ALL the appreciation of that condo/house in the meantime and can then move on to other DCs that will, once again, ask folks to become members and abide by the rules.

Just think of that – anytime the investors have made enough unrealized profit you will get back your 80% of your original membership fee, and they get back big bucks – to use in yet another DC.

Attracting investors should not be any problem at all under the typical DC model.

The DC industry can easily solve my concerns - put up a performance bond and insure the DC will not be terminated for 30+ years under any circumstances and that the Termination Clause is executed per membership rules.
 
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myip

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With $195K, I would buy full ownership Intrawest condo-hotel in Mount Tremblant.
 

RLG

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No offense intended Bill, but you should cut down on the koolaid. Destination clubs offer some attractive features. However, you seem to have far too little appreciation for the risk involved.

The most important difference between a destination club and a timeshare is that with a timeshare you have a legal ownership interest in real estate. With a destination club you usually have nothing but unsecured promises from a company over which you have no ongoing control.

Some examples where you don't seem to appreciate the risk you're taking:

1) You make the comparison between real estate which *could* drop in value versus a destination club which is "guaranteed" to be worth 80% of what you paid.

As far as condo hotels, fractionals, condos....all these have the potential for $100k losses or more..

you are guaranteed to lose an immediate 20% if you want to sell.

Where exactly do you think the funds to pay your 80% are going to come from if the DC's real estate has dropped in value? They typically have little or no equity.

In any case, you can only get your 80% IF they are able to get someone else in at 100%. What's guaranteed about that?


2) You certainly don't understand the gravity of the Abercrombine & Kent/Tanner & Haley disaster.

T&H members have been absorbed by another DC that bought them out for over $100 million. Thus, the disaster has been solved.

T&H was the second largest company in the industry. It raised over $350 million from almost 900 members. Virtually all of the "proceeds" of the sale are going to pay off debt. The members are losing 95-100% of their money. The disaster most certainly has not been solved.


3) You seem to have fallen for the salesman's assurances that "this time is different".

Yes, T&H went bankrupt as they were the original and had a flawed business plan..

T&H's business plan was the same as everyone elses. The problem is that their management was at best incompetent. What exactly did the salesman tell you was different about HCC's business plan?
 

bobcat

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I would not buy anything. I would save it.
 
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S

Steamboat Bill

No offense intended Bill, but you should cut down on the koolaid. Destination clubs offer some attractive features. However, you seem to have far too little appreciation for the risk involved.

The most important difference between a destination club and a timeshare is that with a timeshare you have a legal ownership interest in real estate. With a destination club you usually have nothing but unsecured promises from a company over which you have no ongoing control.

I am NOT offended, I have not been drinking any kool-aid, and I have a 100% appreciation for the risk involved as I have spent several months investigating DCs….and my conclusion was that they offered "Me" exactly what I was looking for.

I have participated in the entire spectrum of vacations: I have stayed at cheap hotels, expensive resorts, crappy timeshares, Disney Vacation Club, Marriott Vacation Club, Westgate ski week, fractional condos, house rentals, condo rentals, bought a full ownership condo in Breckenridge, bought several condo-hotels in Whistler, owned a house in the Florida keys, and even slept in my car once….I am now a proud member of a destination club.

I amazes me to see how much of a big deal people put into "owning a 1/52 deed" of a timeshare and think that really means so much. Trust me….I would much rather be a member of a DC than own a cheap timeshare any day.

Perhaps I am jaded living in Boca Raton where it seems everyone in my neighborhood everyone drives a Mercedes Benz S550 or a Bentley and their house costs well over $1m and they spend $50k to join the Boca Raton Resort just so they can hang out at the pool (golf membership is even more $)…so the concept of joining a club that offers me the ability to stay in 6-star accommodations seems rather natural to me.

The way I look at it….joining HCC costs me about $300 per night to stay in a property that I would normally pay $500-800 per night to rent. Even if I account for the immediate 20% loss after joining…..I would make that back within two years. Thus, after 2 years of being a member….the 20% loss is moot to me.

There are no guarantees in life….I just know that a 1 Bdr condo-hotel in Whistler that sold for $400k in 2003 will now sell for $250k now…that is a $150k loss (but at least the loss is only in Canadian dollars). The studios that sold for $200k in 2004 are now selling for $150k…hmmm not such a great investment huh?

In reviewing the Abercrombine & Kent/Tanner & Haley melt-down…the two reasons they failed were: they leased many of their properties and they guaranteed members the ability to reserve a particular location (even if it was booked). All the DCs now have avoided repeating these two mistakes. It was the GREED of the members and inexperience of the owners that killed the club. Could it happen again….yes, but most DCs have made policies to avoid a complete crash like that.

In reality, I think PerryM has great ideas on how to start a DC….unfortunately none exist like he has outlined.

I am not a shill for the DC industry…just a satisfied customer. Truth be told…I would rather TUGers NOT join HCC as they will only compete with me to snag the best properties at the best times 365 days in advance….I would rather have a lazy rich dude join and not use the club to the fullest.

Only time will tell what will happen to the DC industry, in the meantime I will enjoy staying in the ultra-nice $1m properties and smile as I read about the hassles of trading with RCI, II and the complaints of traders getting the "dumpster view".
 
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S

Steamboat Bill

I would not buy anything. I would save it.

For the record...my membership in HCC cost me $30,000....not $195,000.

This thread was originally started to compare the introductary fee the Exclusive Resorts charges and has morphed into a discussion on the entire DC industry.
 

GregGH

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Lets all take a deep breath .... ahhh ...

Discussing DC vs TS is like my 'Chevy is better than your 'Ford'. For me - TIME WILL TELL.

Anyways - there is a wonderful thread on 'what would you buy with $25,000' on which both Perry and Bill and many others gave WONDERFUL input and I for one was in aww on the knowledge shared.

Just wondering if we might swing back to the center and discuss LUXURY options --if I have $195,000 --what could I buy.

Yes - one single condo hotel or on single DC membership -- but --what about some wonderful combination of things as in the other thread ...just more high end.

Why ... I need the idea's from you smart guys on this. Personally I need something on the beach in both Florida & Hawaii but prefer smaller places. And really looking for opportunities to get into fractionals with a trade like Registry Collection or Elite Alliance ...but they too will take time to be tested and to see what will survive. And what else is out there that hasn't been mentioned yet?? What wonderful option is just waiting for someone to post?

So - back to dreaming and planning ---what would you do if you had $195,000 -- what would you put together as the best portfolio of locations to use or trade
Regards
Greg ( ps - send some warmth from Boca up this way ....:) ccccoooollllddd or what, eh
 

PerryM

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Who owns who?

There is a primal desire, by mankind (womankind too), to own things. I heard a wonderful quote once:

“When you own something, it also owns you”

If I had $195,000 that I felt could be “Invested” into something for vacations but didn’t want to lose it or get tangled up with owning yet, another investment property or third home I would simply open a PayPal(s) account and move the money into their 5% Money Market account.

That $195,000 would generate 5% = $9,750 and say you pay 25% taxes would net out to $7,300 per year to spend on www.VRBO.com

On VRBO I can stay right on the Maui beach or right on the Ski slope, or right next to or on the amusement park grounds. Many of these places are more expensive that a DC property!

Renting is such an alternative to owning timeshares or DC’s or second homes or whatever that ALL decisions MUST be based upon the VRBO baseline.

Right now VRBO has 70,000 places you can rent – most for around the MF the owner pays – that condo/home he bought owns him and he must feed it.

That money is about as safe a place as you can hope for - however it can't hide from inflation and it can't participate in real estate appreciation.

P.S.
So instead of getting involved with the wild and wooly DC market, park that cash in a very safe place and rent 6-star resorts/homes/condos and create your own DC.
 
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caribbeansun

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Perry makes a very valid point - one that I proved just a month or so ago which is that renting can make a heck of a lot of sense. My wife and I just went to New Zealand for 2.5 weeks and this is what we did:

Auckland/Titirangi - B&B (separate quarters - bedroom, lounge, bathroom but no cooking facilities - 3 nights cost $432cdn

Rotorua - Millenium hotel club level upgrade - 2 nights cost $232

Kaikoura - 2 bedroom apartment (all amenities) - 3 nights cost $660

Greymouth - B&B - 1 night cost $208

Wanaka - B&B - (top drawer facility and self-contained unit) - 1 night cost $200

Queenstown - 2 bedroom, penthouse condo/hotel - lake front and very high end - 5 nights cost $1,012

Christchurch - hotel room in small boutique hotel - 3 nights cost $336

There you have it 18 nights with a total Cdn $ cost of $2,948 or roughly $2,500US or $140/night. The places in Queenstown, Wanaka and Kaikoura were as good or better than any TS I've visited. The others we on par with many TS I've visited with the exception that they didn't have full cooking facilities.

I tell you though - the condo.hotel was an absolute steal at that price and was truly a wonderful find. Renting isn't so bad after all.
 

hipslo

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- however it can't hide from inflation and it can't participate in real estate appreciation.

As with any rent/buy decision, the above is the key (sometimes the only) factor favoring "buy", over the long term. Given a long enough time horizon, owning (nearly) always turns out better. The shorter the time horizon, the more likely renting could be the better option, other than in periods of rapid price appreciation and/or inflation.
 
S

Steamboat Bill

There is a primal desire, by mankind (womankind too), to own things. I heard a wonderful quote once:

“When you own something, it also owns you”

If I had $195,000 that I felt could be “Invested” into something for vacations but didn’t want to lose it or get tangled up with owning yet, another investment property or third home I would simply open a PayPal(s) account and move the money into their 5% Money Market account.

That $195,000 would generate 5% = $9,750 and say you pay 25% taxes would net out to $7,300 per year to spend on www.VRBO.com

On VRBO I can stay right on the Maui beach or right on the Ski slope, or right next to or on the amusement park grounds. Many of these places are more expensive that a DC property!

Renting is such an alternative to owning timeshares or DC’s or second homes or whatever that ALL decisions MUST be based upon the VRBO baseline.

Right now VRBO has 70,000 places you can rent – most for around the MF the owner pays – that condo/home he bought owns him and he must feed it.

That money is about as safe a place as you can hope for - however it can't hide from inflation and it can't participate in real estate appreciation.

P.S.
So instead of getting involved with the wild and wooly DC market, park that cash in a very safe place and rent 6-star resorts/homes/condos and create your own DC.

Ahhhhh...on this example I am in 100% agreement with you!

Cash is King

I looked into joining ER for $195,000 last year and now it is $225,000...I should probably update this thread title. In reality, I would have to join at the $325,000 level as the $225k membership does not include any holiday weeks :wall:

At this level of $$$...I would just park the cash in a money market, CD, PayPal account @ 5.02%, or eTrade account @ 5.05% and use the cash for rentals.

Now on the other hand, I already own over $100k in timeshares and just bought a High Country Club membership.

It is time for me to reevaluate my current timeshare holdings to see if I need to sell some as I plan on exploring the HCC membership for the next several years.

Fortunately, I have been able to rent most of my unused weeks and that has generated more cash than 5%
 

RLG

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I guess I didn't adequately communicate the issue which I think is underemphasized in all the cheerleading for destination clubs. Let me restate:

There is a substantial risk that destination club members will lose 100% of their investment and be left with nothing. That risk does not exist in most other forms of vacation ownership.

I agree that destination clubs have a much higher end experience than a "cheap timeshare". I'm not sure how that or your neighbor's Mercedes is relevant to the financial risk issue I'm raising.

The oldest club in existence already has experienced the meltdown scenario. However, "this time is different" for HCC and others.

You think the problem with T&H was that the members were "GREEDY"? Since you didn't explain, I'll guess that you mean they should have known the deal was too good to be true. However, you then go on to talk about what a great deal you're getting from HCC. When HCC goes bankrupt and leaves you with nothing in two years, are you going to say the same thing about yourself?
 
S

Steamboat Bill

I guess I didn't adequately communicate the issue which I think is underemphasized in all the cheerleading for destination clubs. Let me restate:

There is a substantial risk that destination club members will lose 100% of their investment and be left with nothing. That risk does not exist in most other forms of vacation ownership.

I agree that destination clubs have a much higher end experience than a "cheap timeshare". I'm not sure how that or your neighbor's Mercedes is relevant to the financial risk issue I'm raising.

The oldest club in existence already has experienced the meltdown scenario. However, "this time is different" for HCC and others.

You think the problem with T&H was that the members were "GREEDY"? Since you didn't explain, I'll guess that you mean they should have known the deal was too good to be true. However, you then go on to talk about what a great deal you're getting from HCC. When HCC goes bankrupt and leaves you with nothing in two years, are you going to say the same thing about yourself?

Hmmm...I have never been known as a cheerleader.....

I disagree that there is a "substantial risk" that destination club members will lose 100% of their investment and be left with nothing. However, I think there is a "small risk" of this happening and I haven't ignored this risk.

One typical analogy is people that join golf clubs, health clubs, resorts, tennis clubs, boating clubs, car clubs etc....a destination club is not a new concept...it has just been applied in a new way.

The T&H members helped kill the club by insisting that T&H reserve them a house in Aspen when the one owned by T&H wa already reserved. This cost the club dearly.

The new DC's like Exclusive Resorts are here for good! If I had an extra $425,000 + $30,000 MF I would love to join the Elite level. This destination club serves as the proper model for the industry to follow.

High Country Club has adapted the start-up model of ER and applied it to homes that cost 1/3 to 1/4 of a typical ER property. Thus, HCC when it is fully matured with 500-1000 members will cost about $100,000 to join.

2006 and 2007 represents a short window of opportunity for people to join HCC at "lower than market prices"....they raise their price every 6 months by about $10k.

Sure....there will be new DCs in the future and one may have all the features PerryM wants to see and he will possibly join. I for one, feel the temperature of the water is fine and it is time for me to jump in and enjoy a swim.

If HCC crashes within 5 years (and I get $0 back) but I was able to book 15 fantastic vacations....then I will still consider it to be a good deal. If however, HCC is still in business in 10-15 years.....that my friend would represent a home run in my book. If HCC goes bust in 2 years...I will agree that I made a mistake.

HCC is in the growth phase and their books seem very clean. They have done 100% of everything with the best interest of their members. If they get rich in the process...more power to them.

I am not being greedy with HCC....I have realistic expectations and this is the real deal and for me represents a smart purchase (or investment?).

I can only comment that I personally think the average DC members is MUCH more satisified with their purchase than the average Timeshare owner that bought from the developer.

HCC will have a $10k increase in their membership fees in 18 days....if you are thinking of joining...now would be a good time.
 

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Risk exists with everything and yes there are differences in the magnitude of the risk. Of course I have to question the use of the term risk when talking about vacation properties or clubs as there seems to be a line where people stop talking about vacations and start talking about investments and the two don't go comfortably in the same sentence.

Rent - lose 100% of your "investment" but can be the best choice in many situations - small $

Buy a non-branded TS and you will lose 80-90% the day you pass the rescind date on that TS. Buy a branded TS and you'll do better but still likely lose 40-60% (it will vary by location and brand). Moderate to Moderately high $

Destination club. You will lose a percentage of your upfront costs depending on the club - ranges from 0-20%. You could lose everything or just the above %'age. Most closely parallel to TS ownership but at a high level accomodation and with much fewer of the problems that plague TS systems. DC's that use leverage in their business model are at a higher risk of collapse if new sales don't feed the "beast".

Fractionals - personally I think fractionals are too similar to TS for my liking and I think you're asking for pain with most of them. They haven't been around long enough to see what's going to happen to them in the resale market but I suspect they won't hold their value. Moderately high $

If you can find a condo/hotel in a great location with solid management you should participate in the real estate appreciation - annual returns are likely going to be between 6-8% on the cost and another 5-6% on long-term capital appreciation. Of course there are many condo/hotels that won't return anywhere near these figures due to inflated pricing at the front end. Use of leverage - in the event of a change in economic circumstances the investor could struggle to met debt servicing obligations which could put all capital at risk. Like all investments you need to find the good ones. Moderately high to High $

Purchase a second home. Full real estate participation but typically suffer from underutilization as many people won't want to rent out their "home" which means the carrying costs can become a burden. If rented then the investment in time to secure and monitor maintenance etc can become a burden (even when using a service). Use of leverage - in the event of a change in economic circumstances the investor could struggle to met debt servicing obligations which could put all capital at risk. Moderate to High $

There is a decided trade-off between having the cash to go big or putting a smaller amount into renting, TS or fractional ownership. DC's slide into the middle ground and don't promise a return on your investment.



There is a substantial risk that destination club members will lose 100% of their investment and be left with nothing. That risk does not exist in most other forms of vacation ownership.
 

PerryM

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Teach me how

I would purchase about 100 or 200 low end timeshares and sell them for 50% above purchase price every 6 months, rent the excess weeks and net $150-200k in income per year. In 3 years, I'd sell the business for $750-1M.

I'm student #1 - reporting for duty :)
 

BocaBum99

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I'm student #1 - reporting for duty :)

The good news is that timesharing is so lucrative that this algorithm works. The better news is that you can do it all online and you can work in timeshares instead of an office. The bad news is that it still takes more than a full time effort to sustain. I'll have to put together an infomercial for the Robert Allen Institute after creating a timeshare module for his "no money down" course. LOL.
 
S

Steamboat Bill

I would purchase about 100 or 200 low end timeshares and sell them for 50% above purchase price every 6 months, rent the excess weeks and net $150-200k in income per year. In 3 years, I'd sell the business for $750-1M.

This idea....is the best one so far.

But this requires skills to know how to buy low and sell higher. It also requires skills in knowing how to rent.

Either way...it sounds great on paper, but I don't think you would get SBA loans or find anyone that want to buy this business for $1m. Taking on an apprentice or holding the note would be the way to go.

However, if you can wrap this business idea around a slick web site with reoccuring revenue...it could be worth much more than $1m
 

K9HNDLR

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PerryM;215629 If someone were to give me $195k (plus enough to pay the taxes) and stipulated that it MUST be spent on something for family vacations I’d immediately buy into BelleHavens for $200k Link: www.bellehavens.com.



If these were the rules, I would just get a couple of nice beachfront TS in San Diego and put the rest in the bank to collect interest and pay for the MF.

Otherwise, I second the "Pay off my mortgage"!!!
 
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