Jim Pippin

While the destination club industry has seen several clubs fail during the current major economic downturn (High Country Club, Solstice, and LUSSO Collection among others), there are also several clubs not only succeeding, but prospering.

Equity Estates, for one, has seen one of their best sales periods in their multi-year history. Crediting a solid operating structure, and transparency with members, the firm's executives also note that they are buying real estate during a market downturn, which increases the liklihood for future appreciation. Equity Estates' model contemplates selling all of its real estate assets in 2021, and distributing 85% of those proceeds to members.

Also of note is the emerging Abercrombie & Kent Residence Club. Backed by the operating power and hospitality experience of the Abercromie & Kent travel firm, the Residence Club offers tours, homes, and villas for members to experience.

While there is no doubt that the luxury travel market has been hard hit by the current economic malaise, we look to those firms with solid operating models to lead the way to future growth and success.

The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your purchase from start to finish: customized reviews of your travel needs, unrestricted access to our expert advisors, insiders' advice from industry veterans, insightful due diligence support, thorough club comparisons and points of difference, and the best available terms & pricing on your membership, all at no cost to you.

Please reach one of our destination club advisors at 720-222-0440 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.

Join us: we know the way.

One of the common questions we hear at The Veras Group is, "can I finance my destination club membership."

The answer is yes, although it is not through a traditional mortgage (aside from borrowing on a home equity line of credit). One of the best firms for financing is www.firstagain.com, one of our partners at The Veras Group. FirstAgain offers a financing up to $100,000 at very favorable interest rates. One of the companies we work with, High Country Club, also offers a financing option through JP Morgan Chase bank.

Other firms will do short term financing, for a period of a few months to a year or two. Exclusive Resorts offers its destination club members the option of paying the nonrefundable portion of their membership deposits at the time of joining, with the remaining (75% balance) amount due within a few months.

Some clubs will also allow funding of the initial deposit payments on a credit card, and Exclusive Resorts routinely doubles points if the funding is processed on an American Express card. Other firms have extended benefits like this as well, like Ultimate Escapes.

Most destination club members do not finance their memberships, however, and the options are still relatively limited. For more information and options, please contact us and we will be happy to discuss your specific options with you.

The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your purchase from start to finish: customized reviews of your travel needs, unrestricted access to our expert advisors, insiders' advice from industry veterans, insightful due diligence support, thorough club comparisons and points of difference, and the best available terms & pricing on your membership, all at no cost to you.

Please reach one of our destination club advisors at 877-VERAS-07 or 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.

Join us: we know the way.

With over 30 destination clubs in the industry offering terms and destinations unique to their own club, deciding which club is best for you and your family can often be difficult. At our firm, The Veras Group, we have identified four different types of destination clubs, and a close relative, the rental brokerage:

•Non-Equity Destination Clubs

•Deposit Appreciation Destination Clubs

•REIT, Stock, and Fund-Based Destination Clubs

•Specialty Destination Clubs

•Rental Brokerages

Each format has its advantages and disadvantages, and our interest is in assisting our clients with the detailed analysis necessary to make a good decision. If you have any questions about any of these five models, please feel free to reach me at jim@theverasgroup.com or 877-VERAS-07.

Have a great weekend,

Jim Pippin
Founder & Managing Director
The Veras Group
www.theverasgroup.com

Our firm, The Veras Group, specializes in helping clients acquire destination club memberships. There is a lot more to the acquisition process than perhaps meets the eye, and a great deal less information available than on how to acquire traditional second homes or fractional real estate.

First of all, realize that most destination clubs do not provide you with a deeded interest. You are acquiring, typically, a "Right to Use License" which may or may not grant you a security interest in the real estate the firm buys. The structure is much more like a membership at a Private country club.

Second, thoroughly evaluate the cost per night of your membership, versus comparable offerings. Some clubs charge less, some more, and in those firms that charge more, evaluate the additional benefits provided. Some destination clubs provide a vehicle at each residence, some provide transportation to and from the airport, some provide discounted lift tickets or privileged access to beach clubs, etc. Those additional benefits can explain the differences in pricing, and more.

Finally, be sure that the avilability modeling fits with how you will use the club. Some clubs are much better structured for advance planners, and some provide more flexibility and options in your spontaneous travel. No club is perfect, but some are better suited to different types of people.

Our firm, The Veras Group, can help you isolate these differences, and if you or any of your friends or family are considering destination clubs or fractional ownership, please feel free to reach me directly with questions. My email is jim@theverasgroup.com and our telephone number is 970-449-4680.

One of the challenges of the destination club industry is that clubs are spending enormous amounts of money to market their firms, but seeing relatively low responses from those advertising campaigns. We are aiming to help those firms reduce their expenses, while also providing an extremely valuable and hitherto unavailable service to our clients, by helping them sort through options.

As we are building the reputation of our advising/brokerage firm, I'm curious for any feedback on developing a referral network for a new firm. Realtors seem a perfect partner for us, as you are already working with clients on first and second home purchases, and it seems an opportune time to ask whether clients may have thought about luxury fractional ownership or destination club membership.

What would be a meaningful reward/bonus for a realtor to suggest our firm to a client, or to provide us with a name/address to send a complimentary portfolio on our services? We are eager to develop those relationships and please let me know if of interest to you!

Best regards,

Jim