Equity Estates: (in reference to a post that wondered about EE)
I'm a member of EE...the way to think about it (Perry M and the end of the world scenarios apart---not to say they couldn't happen, but for those of us who choose to see a different, possible future...) is this:
Medium High-end Property Investment Hedge Fund, where you get to stay in the investments until the fund wraps up in 12 years.
The basic structure is:
---You must be a "qualified" investor, with a certain amount of liquid assets, net worth and/or both to buy in (just like a hedge fund)
---It's an SEC regulated private investment---which means nothing except that your attorneys will recognize the structure when you put the papers in front of them--and you will too, if you do these sorts of investments (1/10, 2 and 20, GP, LP, LLC, all the normal buzz words)...
---They get paid by taking a percentage out of the portfolio's value every year as a management fee and then 20% of the total profits when they cash in the portfolio in 12 years
---It does NOT have the high touch of Quintess (which I've experienced) or perhaps A&K either---all their "concierges" are contractors, not employees, so don't expect them to be able to get you into Per Se on a drop of a hat when you stay at the New York residences, for example. They do not generate the "once in the lifetime" thing; this has never seemed to break the heart of my (young) kids who are happy to be with mom and dad in warm and interesting places...
---It's family oriented; more than half the members have school age kids, the homes have usually 3 or more bedrooms (one NY residence has two; it's beautiful and in compensation, has an indoor pool, hot tub and work out rooms)...I raise this in contrast to, say, Ritz Carlton DC, which tends to be about condos with more luxury, but less kid friendly set ups (bed rails, bikes, games in the closet, etc etc etc)
---The members LLC owns the properties
---Some properties are allowed to be leased, by the terms of the operating agreements; every 7 members (or 8, for the more expensive ones), they go buy something...
---The leverage on the properties can rise to as high as 25%---but is currently below that
---Holidays are apportioned by a lottery system, not a points system.
---After being a member for 1 year, you can resell your share on the open market if you wish at whatever the fair market price for your share is (you can get---I assume with a fairly substantial haircut).
---Last update, 2 of the 80 something members had dropped/withdrawn/sold, everyone else was traveling.
---They had a red banner year last year, sold a bunch of memberships...
---They have a strategic alliance with a European Equity Club which gives members access to something like 23 European houses during part of their season in return for part access to the Equity Portfolio (seems fair enough)
Comparing them to some of the competition, having had the privilege of staying with friends in their D/Cs ---
---Homes are a little less luxurious than Quintess'---and service is less all over you (at Quintess, the concierge checked in multiple times a day---with EE, once your travel is set up and you are checked into the property, you have to call/tag them for stuff---Having said that, they are always responsive, within 20 minutes, to text/call...)
---Locations are slightly off the high end luxury track (so, rather than in the Trump in NY, or on 5th Avenue or in Millenium near Lincoln Center), they are about 2 blocks out of the most ridiculously high end locations...They have all worked fine, safe, enjoyable---and probably, under the idea that it's best not to own the nicest house on the block, better 12 year hold investments.
---Oddly, and I have no explanation for this, Equity Estates finds better chefs than Quintess---no clue as to why, no explanation for it, but it's been true in Hawaii, SoCal and Hawaii. Utterly clueless as to why. Happy about it though...
---You won't find info about EE (financials and whatnot) up on the web 'cause it's a hedge fund, in essence...If you want that stuff, get in touch with them, sign the NDA and kick the tires...
For what it's worth, I miss Destination Club Forums too!
Good to see the crowd back posting...