Private Residence Club Perspective Part 1
David Disick, President, David M Disick & Associates.
Fractional Life is joined by a true innovator in the fractional industry. David successfully launched Franz Klammer Lodge, the first PRC in the United States back in 1994 and continues to be at the forefront of fractional development.
Over to David for the first of his bi-monthly ‘Perspectives’ discussing fractional issues and news.
Historical Perspective
When I inaugurated the Private Residence Club (PRC) industry in the mid '90s with The Franz Klammer Lodge in Telluride, United States of America, little did I realize how fast the PRC segment would grow. Today, there are $2 billion in annual sales; the industry has performed well notwithstanding the current general real estate economic climate and projections for expansion are extraordinary.
Financing
The growth creates both the challenge and the opportunity. With growth, obviously more financing is needed. However, in the current market, that can be challenging. First, the general real estate economic climate obviously creates a non-positive atmosphere. Even though the 2007 results show a healthy fractional real estate PRC market notwithstanding current general climate, general climate can be an impediment. I had one financing source say to me: (a) I agree with you, David, that the PRC market has remained and will likely remain healthy; (b) however, I am just concerned about how bad the current general climate will become; and (c) even though the general climate has not affected PRCs, I am hesitant to invest at this point. We are refining techniques to deal with this non-sequitur.
And even if we can deal with it, there is a second challenge. Fund managers are in a frenzy to invest in "distress properties" because of the profit potential and it is a challenge to get them to focus on the opportunity in PRCs by reason of the "fractional multiplier" and the ability to buy quality property at favorable prices because of the difficulty of selling quality property at true inherent values in whole ownership format. Again, we are refining techniques to deal with that and these issues will be the subject of subsequent perspectives.
I am fond saying "don't hold it against me, but I used to be a Wall Street lawyer." I and my team have spent substantial efforts over the years in educating the Wall Street community as to the profitability potential in our industry and by and large, if I do say so, we have been pretty successful. We have generated significant interest in offshore institutions, domestic investment funds and others, and high net worth channels, and significant expertise in how to access the money.
These topics will be the subject of the next Perspectives, to be followed by discussions of unique marketing and sales initiatives for today's world.
Articles
Art:
Fractional art donations prove charity starts at home
Boats & Yachts:
Fractionalize This
Classic Cars:
Classic Car Club Feature
Getting the most out of your fractional ownership experience
Why Not Rent?
You've Always Loved Cars?
Fractional Life hits Le Mans
Destination Clubs:
Savings through Foreign Exchange
Fractional Finance Solutions
Destination Clubs- an alternative?
Fractional Ownership Heads to Europe
Private Residence Club Perspective Part 1
Quintess
Ultimate Resort
Calistoga Ranch
The Weybridge Collection
The Villas at The Grand del Mar
The Solstice Collection
Vacation Visions: Exceptional Exterior and Interior Designs of Residence and Destination Clubs
Why the Boomers will change second home ownership in the US
Middle East Leisure Real Estate Market Booming
Bear Mountain Resort - A View from Paradise
New Association For Fractional Ownership
The New Vacation: A Time to Retune, Re-Connect
Helicopters:
Flying without Wings
Racehorses:
A Horse by The Name of Fractional Life
Running Down a Dream
Corporate Hospitality:
So Long to the Suite Life
Hotels:
Savings through Foreign Exchange
Aircraft & Jets:
Can't afford that jet? Rent it
How Private Aviation Works
Private Clubs:
What are the ingredients for the ideal Private Residence Club?
Savings through Foreign Exchange
Fractional Finance Solutions
Property:
Savings through Foreign Exchange
Fractional Finance Solutions
Fractional Property- the legal issues
Fractional Property Regulation
Fractional Ownership? We'll have a piece
Keep The Door Open
Why Fractional Property?
The Benefits of Fractional Ownership in Private Residence Clubs
Middle East Leisure Real Estate Market Booming
New Association For Fractional Ownership
Saving Homes, Homeowners and Banks Through Fractional Ownership?
Lifestyle:
Savings through Foreign Exchange
Convergence in the Fractional marketplace
The stock market for songwriters
Supercars:
Eco-road-warriors- How will the supercar club line-up of the future change?
Fresh metal- What's new on the supercar front?
So Why Not Buy?
You've Always Loved Cars?
Supercars- The cars of 2006/7
Let's Take The Lamborghini
Fractional Life hits Le Mans
Ascari Racing Festival Weekend
Fractional Supercars at the MPH Show
GROUP20 The SuperCar Club announce their 2007 Road Show in aid of Children In Need
New supercar club with green credentials
Luxury Motorhomes:
Denver RV show ready to roll
Vinevards & Wine:
Wine
