My wife and I recently decided to join Crescendo and wanted to share our experience with the decision making process and why we ultimately decided to go with Crescendo.

Over the last few years, we had toyed with the idea of buying a lot on the coast for later building or buying a condo. However, our initial enthusiasm to buy was dampened by the high cost of purchasing and maintaining a second home, the time commitment of managing the property, the limited amount of vacation time that we could realistically take, and the desire to visit different destinations.

I thought that the fractional residence concept was interesting and addressed many of our concerns, but I was not happy with the variety of destinations offered by the leading companies. I also knew that the mark up on fractional interests was typically high (as compared to purchasing a 100% ownership interest), and I wasn’t sure whether the interest could be sold easily enough for full or increased value.

When we looked at destination clubs, I was disappointed that with most clubs, the members don’t own the houses. This was particularly bothersome to me after the Tanner & Haley bankruptcy from the standpoint of the security of our deposit. We decided that we would join an equity destination club unless a non-equity destination club clearly offered a much better value proposition. We also eliminated any non-equity destination clubs that didn’t appear to have solid backing.

As part of our destination club analysis, I did numerous detailed spreadsheets comparing buying, renting and joining destination clubs, and it became clear to me that with any reasonable level of appreciation over the next 10 to 15 years, buying was the least expensive followed closely by Crescendo, and far ahead of renting and other destination clubs, particularly the more expensive destination clubs with access to similar properties such as Crescendo. Any appreciation significantly reduces the cost per night of Crescendo, and I thought that over a 10 to 15 year period, it was safe to assume some level of appreciation. The tax benefits of Crescendo also reduce the cost per night substantially. While buying was somewhat less expensive long term assuming reasonable appreciation and a sale of the property after the term, it was the worst from a cash flow perspective, particularly if purchasing a comparable property, and is obviously limiting from a destination variety perspective.

As noted above, we looked at some other equity destination clubs, but I liked Crescendo’s model better. We are buying into the LLC that owns and purchases the properties. I felt uncomfortable with the idea that to receive any appreciation, I would be dependent on the increase in membership cost over the long term, knowing that competition could very well have a dampening impact on the cost of memberships.

Crescendo not only provides us with a diversified portfolio of destinations, but also 60% of any appreciation and tax benefits unlike any other destination club. Since Crescendo is only for accredited investors and cannot advertise the investment generally, they consequently have significantly reduced marketing costs, and at least 80% of my investment goes to purchasing houses and 10% into a reserve fund, instead of 70% or less like many other destination clubs. I liked the idea that our interests are directly aligned with the founders of Crescendo and that the founders are making their money on the back end like us, not as each member joins. It is in Crescendo’s best interest to keep the owners happy over the long term. With some softening in the luxury residential real estate market in certain areas, I also liked the idea that they are acquiring the bulk of the portfolio over the next three years. Additionally, I wanted to get our membership cost back if we changed our mind down the road, not just 80% or 90%.

The Helium Report’s destination club guide was a great resource in our decision making process. I went through over a hundred of the questions listed in the guide, and I got clear and consistent answers to all of my questions from Crescendo in a patient, non-salesmen like manner. I never felt like I was being pressured or told what I wanted to hear. As part of the process, I spoke with several owners who were all thrilled with their experiences with Crescendo and its management. I was given current financials and projections. Their usage structure made sense to me. Crescendo has both an on-site concierge and a pre-trip planning coordinator for each trip, in addition to an internet reservation system. They don’t have any leased houses. They have a very satisfied membership based on the after trip surveys, and each house is stocked with amenities at the highest levels.

We feel great about our decision to go with Crescendo. We have all of the benefits of other comparable destination clubs but without the typical drawbacks.

–Mark. H, Charlotte, NC