Legacy Luxury
Resignation and Redemption

An equity destination club where members collectively owned the club that held title to the club's real estate portfolio, Legacy Luxury used a resignation policy that factored in the real time value of the club's real estate value.

Members had to remain within the club for at least 24 months before eligible for redemption. Part of the Legacy Luxury business model was to conduct annual appraisals of the club's properties to help maintain proper communication with member/investors. Members could resell their membership back to the club less a 10% transfer fee, but also received a "pro-rata share of the net assets of the company, based primarily on the properties' increase in value since you purchased your ownership interest."

Similar to other destination clubs, Legacy Luxury worked on a "three in, one out" redemption policy, where three new members were needed to join the club before one resigning member was repaid. Once the club reached their full subscription of 350 members, memberships would be redeemed on a one in, one out basis.

Although the club planned to have a solid financial structure, including policies to escrow new membership deposits until a property could be purchased outright and a steadfast support of not leasing properties, Legacy Luxury never fully got off the ground. The small destination club never purchased any properties and likely didn't have any members.