# Private Escapes



## Steamboat Bill (Feb 13, 2007)

I just got this e-mail today...I must be on a DC hit list or something...

Dear Prospective Members,

As you may know, Private Escapes is a leader in the private destination club sector with over 320 members and 55 club-owned residences.  Our Members enjoy exclusive and unlimited access to an international portfolio of luxury homes and I invite you to visit our web site at www.privateescapes.com for additional details, including floor plans and interior/exterior pictures of the residences.

Due to strong demand, we extended our 100% membership deposit redemption policy until January 31st, 2007.  All Prospective Members who submitted their Reservation Agreement on January 31st were provided the standard 21 days to complete their due diligence and finalize their decision. 

Effective February 21, 2007, Private Escapes will accept its last Membership funding that secures the 100% redemption policy.  Thereafter, we will adopt the industry accepted standard of a 20% transfer fee upon resignation.

Should you have an interest in joining the Club prior to the policy change, your due diligence and final decision must be completed by next Wednesday.  If you would like to take advantage of this final offer, please let me know.  Thank you.  

Regards,

Jerel Keith
Membership Director
Private Escapes Destination Clubs

One Magnificent Mile
980 N. Michigan Ave #1175
Chicago, IL 60611
Phone:  (312) 654-2745


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## PerryM (Feb 14, 2007)

*It's official, the DC industry is a bona fide loser!*



Steamboat Bill said:


> I just got this e-mail today...I must be on a DC hit list or something...
> 
> Dear Prospective Members,
> 
> ...



I love the term “*Industry accepted standard of a 20% transfer fee up resignation*”.  Does that mean the DC industry is a bona fide loser?  This is quite a sobering statement.

Even the timeshare industry doesn’t boast of bona fide loss of capital “invested”.  The developers have the good sense to just hide that fact.  They talk about “Handing that deed down to your heirs” and thus never have to address resales and any loss of their bloated sales and marketing expenses.

The DC industry needs some therapy, they are as stupid as the Options Industry in the Stock Market – “You can only lose all your money you invest in Options and no more”, like this is some kind of virtue.


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## Steamboat Bill (Feb 14, 2007)

PerryM said:


> I love the term “*Industry accepted standard of a 20% transfer fee up resignation*”.  Does that mean the DC industry is a bona fide loser?  This is quite a sobering statement.
> 
> Even the timeshare industry doesn’t boast of bona fide loss of capital “invested”.  The developers have the good sense to just hide that fact.  They talk about “Handing that deed down to your heirs” and thus never have to address resales and any loss of their bloated sales and marketing expenses.
> 
> The DC industry needs some therapy, they are as stupid as the Options Industry in the Stock Market – “You can only lose all your money you invest in Options and no more”, like this is some kind of virtue.



People can make Millions of dollars trading options...it is a risk they take knowing they can also loose 100% of their original investment.

As the snowboarders say..."No guts...no Glory"

Yes, joining a DC guarantees you a 20% loss....I only wish the entire timeshare industry could match this statement when a newbie buys a timeshare from a developer....

I appreciate the fact that the transparency of the DC industry spells this out right on the membership plans pricing pages.

DC's cater to wealthy people that are very business savy....they know BS when they see it....


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## PerryM (Feb 14, 2007)

*Who decided that a standard loss of 20% is ok?*



Steamboat Bill said:


> People can make Millions of dollars trading options...it is a risk they take knowing they can also loose 100% of their original investment.
> 
> As the snowboarders say..."No guts...no Glory"
> 
> ...



I’m not sure I agree with that statement – rich folks like to run with whatever the rich folks seem to be doing.

The DC suffers from huge gaping holes of reliability:

1)	The 2 in/1 out in effect can mean that they can never sell their membership back to the club
2)	Why 20% - who came up with that fixed loss as being the “Industry standard” – seems to be an accepted profit for the folks who run the DC
3)	DCs can just go out of business and the members would have a rude "Wake up call" - just who get's what?  Do the lenders, who have attached liens to the deeds get serviced first?  You better believe it.

Why not 100% of the purchase price – why do the DC owners need 20%?


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## Steamboat Bill (Feb 14, 2007)

PerryM said:


> The DC suffers from huge gaping holes of reliability:
> 
> Why not 100% of the purchase price – why do the DC owners need 20%?



I don't think the word "reliability" applies because most DC's (including T&H) have provided their members high quality 6-star accomidations since the DC industry inception.

I agree with you that the members should get back 100% of their membership fee and I would like to sell my membership on the open market...but I also want to buy Starbucks coffee for 50c, not $3...I also want Marriott to sell MMC for $8k, not $17,500....I also want Deer Valley to only charge me $20 for lift tickets....I also want to pay $1.50 per gallon of gas...and I want to get Disney ParkHopper tickets for $15.....etc.

Plain and simple.....DC's can hold back 20% because that is what members are willing to give up. Remember, you only lose 20% when you sell your membership back to the club. Most golf memberships and resorts memberships do NOT allow you to sell your membership. These are PRIVATE clubs and they want the ability to screen members.


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