# Equity Estates and DCs



## dpicarillo (Mar 27, 2011)

Hello everyone

New to the forum and have just started my due diligence process on potentially upgrading my vacation experience using destination clubs. Have done a little web searching and have read sherpa's report.

I was hoping to glean some opinions and viewpoints of some of the experience folks on this forum.

I have reviewed most of the web sites of the destination clubs and I have been particularly interested in Equity Estates.

Does anyone out there have experience with this company. Pros, cons.
I would welcome any and all input.

Thanks ahead of time

Newbie to DC


----------



## NeilGoBlue (Mar 27, 2011)

As you can see, I'm a member of AK... And, Equity estates is the only other club I would consider right now besides AK, if I was looking to buy more nights.

Overall, it has favorable reviews on this forum.  If you search the forum, you'll probably find some stuff.

I'll let the members of EE who are on this forum respond directly.

P.S.  I did some due diligence on them a couple years ago when I was considering expanding my DC membership.  (looking at adding another 15 nights or so) Overall, I was impressed with them. (chose to stay with what I have with AK)


----------



## Kagehitokiri2 (Mar 27, 2011)

welcome to the forum! 

http://tugbbs.com/forums/showthread.php?t=130505
http://tugbbs.com/forums/showthread.php?t=142055
http://tugbbs.com/forums/showthread.php?t=132611


----------



## travelguy (Mar 30, 2011)

EE is one the current favorites of the dwindling DC industry.  This may be partially because they are one of the few who have not evaporated with their members money.

I do NOT have a favorable opinion of the EE business model but will add that I've not done any extensive due diligence.  My concerns are previous statements from EE about how they pay for marketing, office expense, executive salaries and other ONGOING overhead costs.  Unfortunately, these discussions by EE representatives has been deleted with the UE takeover of DC Forums.

So my major concerns with EE would be:

1) Previous statements from EE Execs that are conflicting on what expenses are paid from which member funds (deposits, annual dues). 

2) Max Debt Cap issues that Kage has discussed in his posts.

Full disclose is that I'm not a big fan of equity DCs due to the poor ROI in my view.  I believe that the current market provides for DC quality accommodations and services at a much lower price and no capital outlay albeit with more effort.  As a former DC member, I do believe that DCs are a MUCH better way to travel but not at the current premiums being charged.  This is complicated by the ROI available on raw capital in the current investment markets.

In short, I believe that DCs will eventually evolve into leaner, more cost efficient business models with limited capital requirements from members and still provide top quality travel accommodations and services.  However, now is not the time to purchase into the existing DCs IMHO.

Whatever you decide, make sure that you do EXTENSIVE due diligence including financials, cash flow projections and executive background checks.  Many of the failed DCs did not provide this transparency and now we know why!  It is also prudent to have a legal review of the contracts since an equity DC is an investment vehicle.

Good Luck!!


----------



## Kagehitokiri2 (Mar 30, 2011)

travelguy said:


> I believe that DCs will eventually evolve...*limited capital requirements*



re lease only >


Kagehitokiri2 said:


> "sustainability" for example at 5:1 ratio >
> 
> $12K dues - $5K leases
> $24K dues - $10K leases
> $48K dues - $20K leases



ideally a deposit should be about access to a property for the least amount nightly. potential values cannot be matched by non-owned.


----------

