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I seriously considered it. But then I looked at the locations and did some research into AirBnBs in the areas. Not worth the the risk of giving my money to someone to manage like that. You are better of finding an 8% cash over cash deal buy a million dollars worth of rental apt you actually own and AirBnB in really nice places without the risk or location limitations.
Is that just a timeshare?
Sounds like a scam. The house always wins in these.
I don’t think it’s a scam, but it isn’t risk free. Basically a pool buys into houses in appreciating vacation markets. They share maintenance and use. Then when they sell the portfolio, you get your $ plus a portion of the gains. There could be losses, and the management company is paid for their work before profit distribution. But it has returned well in the past, and is a way to get exposure to vacation market without the responsibility of one house. It is not a timeshare because it is not indefinite - defined entry and exit.
No, but I was thinking of investing in Del Boca Vista.
Mentor
I couldn’t afford that in the 90s.
Curious to hear as well, have also been considering it.
Can you please explain more? What is this?
Like investing in a specific project?
Mentor
It bears some similarity to a timeshare setup - fractional ownership + a defined number of nights.
Some structural differences:
- It’s a portfolio of high end vacation residences (I think they say like $2-$6MM per property) in desirable locations, rather than a single place with random trade or reciprocity rules
- Your time floats rather than being tied to a specific week
- Includes concierge service so you get high end amenities at the properties where you stay
- Set up to have significant extra capacity so that it’s not too hard to find a desirable vacation when you want one
- There’s a defined exit strategy where they sell off each tranche of property after 10 years
I like the concept on paper, but it’s a fairly hefty amount of money (entry cost right now is about $300K), so I’m not just gonna jump in.
Sounds like a timeshare. That is the reason you have entire law firms helping people try to break these contracts. I can’t think of a single person that is happy about this purchase after 5 years...
Better of short squeezing GameStop if you are going to throw your money away.
Yes. have done it. places are amazing, especially at first but maintenance of expensive spots in exotic locations always catches up and resort partners abuse the relationship (worst offender is Tuckers Point in Bermuda, which I own directly). BTW, owners are on the hook for hurricane cleanup...
Don't do it. Always more fun to have the freedom to choose from anywhere, or can rent the same spot annually with more flexible timing. Yes each trip is more expensive (think opex vs capex trade) but it's better than worrying about your "investment," which these aren't.