# Cabo Azul/New Trust



## coachr32 (Apr 3, 2013)

DRI is putting this former MGV property and placing it in its own trust. No other resorts are in this new trust. CEO is trying to make this the DRI flagship resort. DRI is nickel and diming visitors for everything they can get. MGV owners are feeling the "pressure" to convert their ownerships over to DRI and to be part of this trust. Salesmen are up to the usual misinformation sales talk to scare owners into the conversion.


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## Rent_Share (Apr 3, 2013)

Your beginning to be enhanced say the DRI faithful,


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## Bill4728 (Apr 4, 2013)

Of the old MGV resorts there are only two which were MGV only( the cancun resort in LV was the other). The others had a large number of owners who owned at the resort but were not members of MGV.  Therefore those resorts may one day be in the DRI trust but not soon.


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## csalter2 (Apr 4, 2013)

*The Resorts need work*

Bill, 

I have visited a couple of the resorts and I have got to say they need work. I live near the Riviera Oaks & The Riviera Resort & Spa in Capo Beach in California. The resort needs a facelift and the rooms need refurbishing. 

Palm Canyon in Palm Springs needs work too.

Call it "enhancing" or whatever, but work is needed.


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## coachr32 (Apr 4, 2013)

DRI is putting the Cabo Azul resort in its own collection/trust. Not the US, Hawaii or any other trust that DRI already has. There is now the Cabo Azul collection.


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## drguy (Apr 4, 2013)

The units that will be in the DRI Trust are the units that are completed or sold as DRI after the transfer.  The units that were completed prior to the transfer remain in the MGV Trust.  At least that is what we were told.


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## Bill4728 (Apr 4, 2013)

coachr32 said:


> DRI is putting the Cabo Azul resort in its own collection/trust. Not the US, Hawaii or any other trust that DRI already has. There is now the Cabo Azul collection.



Boy,there are many people out there now trying to give away their MGV memberships for free and every one of these must continue to offer Cabo Azul as a resort option. SO buying cabo azul as a stand alone resort doesn't make much sense to me.


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## dougp26364 (Apr 4, 2013)

Bill4728 said:


> Boy,there are many people out there now trying to give away their MGV memberships for free and every one of these must continue to offer Cabo Azul as a resort option. SO buying cabo azul as a stand alone resort doesn't make much sense to me.



Sounds like the sales staff is really ticking off a lot of current MGV owners. It doesn't help that DRI takes over resort groups in financial distress and lacking in maintenance/upkeep. They bring the resorts up to DRI standards but the owners feel the pinch with quickly escalating MF's.

I currently own two resorts that had poor management. That management kept MF's low but, they also went bankrupt and left the resorts they managed lacking. I got the MF bill for one of them this year and the fee's jumped somewhere around 25 or 30%. The other is an EOY ownership and will have to wait until the end of this year to see the effect on our MF's. The management company that's taken over that resort was the management company during the bankruptcy. It might not jump 25 or 30% but they let us know (if you read between the lines) that they were just maintaining the resort and not making improvements. Reading between the lines, they were just doing the minimum. I expect to see a fee jump higher than normal in December. 

I'd say there will be a lot of units for free on E-bay real soon but, both management companies at these two resorts employ a poison pill, requiring very high transfer fee's around $1,500. The one applies that fee to future MF's and/or SA's. I haven't asked the other officially yet, I've just seen the fee advertised on a unit for sale on E-bay. The one unit I'd like to get rid of and we're thinking about getting rid of the other one as well. Those fee's will make it harder and, because of that, there may not be a ton of those units hit the free adds on E-bay.


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## Bill4728 (Apr 5, 2013)

The good thing about MGV memberships is that the transfer fee is small ~$100. So if someone does want to go to one of these 8 resorts you can get in for nothing but the ongoing MFs.


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