FAQ

What is a Destination Club?

Members of a Destination Club share a portfolio of fully furnished, multi-bedroom homes in resort destinations around the world, and have access to beach, golf, mountain, and city residences on a scheduled basis. Members pay an upfront deposit and annual dues for exclusive access and first-class service. Originally launched in 1998, the Destination Club industry has expanded rapidly in the past few years. Today Destination Clubs are the fastest growing segment of the luxury travel market, representing nearly 4,000 member households. Over the next 10 years, the potential market is projected to be 50,000 to as many as 500,000 member households. (Helium Report)

What is an Equity Destination Club?

Destination clubs are generally classified into one of two categories - equity or non-equity. The main difference between the two is the addition of ownership benefits and appreciation potential in equity clubs. Members of non-equity clubs have no equity ownership and are simply paying for use of the club's portfolio

What is Legacy?

Legacy is the premier equity destination club in the luxury travel industry. Legacy provides its exclusive equity members with the benefits of phenomenal life experiences at club properties, coupled with superb asset protection and meaningful ownership. Member-owners pay a one-time, refundable membership deposit and annual dues to use the Club's magnificent portfolio of multimillion-dollar homes, which will be situated in resort destinations throughout the world. Members also receive first-class personalized service that includes help with vacation planning, pre-arrival grocery shopping, restaurant and activity suggestions, daily housekeeping and assistance from a personal concierge. Each home is uniquely and professionally decorated by Legacy's interior design team, and contains fine furnishings and high-end amenities to complement the outstanding properties and beautiful locations.

What makes Legacy an Equity Club?

Much like a private golf country club, members of Legacy are equity members and collectively own the Club that holds title to a diversified portfolio of luxury real estate. When you become a member of Legacy, eighty percent of your membership deposit is used to purchase the residences and is always secured by these tangible assets. Legacy is a member-owned destination club, and our equity structure provides outstanding asset protection and genuine ownership—not simply use privileges, as is the case in non-equity clubs.

Why should I invest in Legacy?

Legacy is the premier private equity investment group that combines the economic virtues of investing in a diversified, highly desirable real estate portfolio with the lifestyle benefits of vacationing in luxury residences in the world's most cherished destinations. Legacy owners invest in the company because they seek a first-class and hassle-free vacation lifestyle and desire the security and potential return of real estate ownership.

How many Owners and Residences will Legacy have?

Based on our projections and at full subscription, we anticipate having 350 owners with 50 residences.

How do you determine where to purchase residences?

In assembling the portfolio, we strive to make sound investments in great destinations for the lifestyle and financial appreciation of our owners. Property selection is driven by input from owners and direction from the company's Steering Committee based on two criteria:

First, each Legacy residence must be located in an exceptional vacation destination and be an outstanding home that provides our owners the opportunity to vacation in comfort and style.

Second, Legacy residences must meet the stringent investment criteria for our portfolio, both in terms of acquisition price and potential for appreciation.

How are the Residences Designed and Furnished?

Residences are outfitted similarly to first-class, five-star resorts. Professional designers ensure a consistent standard of quality, functionality and style throughout the homes. Amenities include flat screen TVs, top-of-the line appliances, luxurious linens and other quality features you expect to find in a multi-million dollar home.

What is the Average Residence size?

Beach residences typically Feature four or more bedrooms and are 4,000to-6, 500 square feet of interior space. Mountain and leisure residences feature three-to-four bedrooms, and City locations have a minimum of two bedrooms.

Do I have access to resort amenities?

Yes. Since resort amenities are important to Legacy owners, access to spas, fitness centers, golf' courses, tennis clubs and beach clubs will be offered, where possible. Other amenities include special owner discounts, privileges and reservation preferences. Our objective is to provide all the benefits of a first-class resort within the comforts of a luxury home.

How do I make reservations and plan vacations?

Owners can make reservations directly on the owner-only Web site or by calling or emailing their Personal Concierge. After placing a reservation, owners are contacted by their Personal Concierge to facilitate special requests such as activities, groceries, transportation and excursions. In short, everything is planned for you to help ensure you and your guests enjoy wonderful, hassle-free vacations.

Where and how often can I travel?

Our reservation policy and capacity model are designed to ensure fair and equitable availability for all Legacy owners, and it is our goal that you are able to take the type of vacation you want, when you want to take it. At Full use (e.g., when all owners utilize all use credits), Legacy residences are occupied approximately 65-to-70% of the time. While a shared-use model does not "guarantee" you can always have whatever residence you want every time you want to go there, with a little flexibility and advance planning, your vacation requests will be satisfied.

Will my children enjoy vacationing Legacy style?

Absolutely. Kids love Legacy as much as their parents do. The company's founders all have children, and they know that your vacation is not going to be a fun vacation unless the kids are happy. With that in mind, we are selecting destinations and residences that appeal to families. In addition, Legacy is dedicated to ensuring you have easy access to those activities and amenities that kids have enjoyed previously at that location. Every residence has a PlayStation II video game system (replete with a library of games), DVD players (likewise, with a library of movies), high-speed wireless Internet access, games, a personal computer, and access to items parents of small children need such as high-chairs and strollers. Each location also has a "tips and feedback" advisory service found on the Legacy Web site, including tips specifically dedicated to children's activities.

Who can use Legacy’s residences?

Legacy's residences are never rented nor leased. They are reserved for the exclusive use of our owners and their guests. When owners select a Family or Family: Platinum ownership class, a family member (including parents, siblings, in-laws, etc.) must be in residence. With the Corporate class, an owner can send any unaccompanied guests they choose, such as family, friends and business associates.

Who are Legacy Investors?

The majority of our owners are successful professionals, business owners, and retired executives who have reached a stage in their lives where their time is invaluable and they want to make the most of their leisure time while making prudent investments. Legacy allows them to do both, while providing hands-on service designed to make their experiences first-class and hassle-free.

Many of our owners have considered buying (or currently own) a luxury vacation home, which requires maintenance and significant proactive financial management. With Legacy, they have access to our unique collection of luxury homes in a variety of desirable destinations, offering them Far greater flexibility and value. Also, in many cases, our owners just couldn't use their vacation homes enough during the limited "prime season: that most resort destinations provide. With Legacy's diversified portfolio, owners have a 52-week season of "prime time" vacation spots throughout the world.

What is the company’s financial status and strategy?

Legacy is financially strong and the company's growth model, based on its linear and conservative method of seven investors per each property, is sound. In addition, Legacy has a relationship with a major financial institution for mortgage Financing of' properties. Finally, our loan-to-value ratio will not exceed 50%, thus ensuring the company is not over-burdened with debt.

Will my Equity Investment be protected?

Unlike non-equity clubs where you are simply a -member," Legacy provides its investors an actual ownership interest in the company. Your ownership provides you with a preferred interest in the assets of the company. This interest is subordinated only to the debt obligations of the business. We believe the geographic diversification of properties may provide owners with superior insulation from market price volatility you might experience if you were to purchase a vacation home in one location. And, we limit our overall loan-to-value ratio to 50% or less, ensuring that residences are not over-leveraged. Furthermore, at least 80% of your capital contribution is maintained in hard assets (properties, Furnishings, cash, etc.). Most destination clubs "guarantee" a return of 80% of the initial "membership fee", which is all you are entitled to receive if you sell your membership. With Legacy, you participate in a passive, diversified real estate investment while securing a lifetime of luxury vacations for the enjoyment of your family and Friends.

Can I finance my investment?

Yes. Legacy has a relationship with First Republic Bank to finance owners' capital contributions. Specific terms will be determined based on each owner's financial situation.

Will my annual fees increase over time?

We do not have any definitive plans to increase the annual operating fees, but it would be naïve for us to believe that costs associated with owning and operating the company and our collection of' luxury residences will not increase over time. Accordingly, we retain the flexibility to increase annual fees over time, but any increase will be limited by 5% per year or the increase in the consumer price index, whichever is greater.

What if I want to sell my Ownership Interest?

Starting in the second year, we appraise all properties annually, so you will always know how your investment is doing. The value of your ownership interest is determined by two factors: 1) your original capital contribution, and 2) your pro-rata share of the net assets of the company, based primarily on the properties' increase in value since you purchased your ownership interest. Thus, as the property values increase, so does the value of your ownership interest. If you want to sell, simply contact Legacy and we will repurchase your interest for a 10% transfer fee (similar to a real estate commission). If Legacy is sold out, we will repurchase your ownership interest as soon as the next interested party invests (it is possible that we will have a waiting list). Otherwise, we will repurchase existing member interests as every third new owner invests.

Should I be concerned about Legacy growing too large?

Absolutely not. We strive to maintain the private, exclusive nature of the company. Ownership is by invitation only. With that said, since our per-residence occupancy is capped, the more residences we have, the more choices you will have and the greater the availability of locations will become.

Can I invest in the name of a trust, joint tenancy, partnership, LLC or other Corporation type?

Yes, you can invest in Legacy through any of the aforementioned entities. Several owners have created corporations or partnerships for the sole purpose of acquiring and sharing a Legacy ownership interest. In addition, Legacy is well suited for corporations and professional organizations (such as medical practice groups and law firms), whereby usage can be shared amongst company personnel, management, partners or key customers.

WHAT IS THE INVESTMENT PROCESS?

Since Legacy is a private investment company, only accredited investors — on an invitation-only basis — may participate. To help ensure you are making an educated and prudent decision, we have created a three-step investment process:

First, prospective owners are invited to consider ownership. IF Legacy is an appropriate fit for your lifestyle and economic objectives, the next step is for you to complete and remit the Confidential Request for Investment and Subscription Information, along with a fully refundable $5,000 deposit that will he held in an escrow account.

Second, after your request and deposit have been accepted, we will send you subscription and membership materials. These materials include everything you will need to evaluate the investment opportunity, along with documents detailing your rights and usage as an owner. Your deposit places a 45-day hold on the current investment price.

Third, if you are interested in becoming an owner, you will complete the subscription agreement and remit the balance of your capital contribution (less the deposit). The company will evaluate your ownership application within one week.

Assuming your ownership interest is approved, your capital contribution will he released from escrow and you will have six months to determine your activation and begin use of the properties. At this time you will pay the first installment (50%) of your annual ownership fees, and your ownership will be activated. This will occur as soon as possible after acceptance. At that point, you will receive an owner welcome package including your dedicated owner number and online access code to utilize the owners-only section of our Web site where you can preview residences, check availability, make reservations and start enjoying the residences.

Is Legacy right for me?

Legacy is the first private equity investment group that combines the economic virtues of investing in a diversified, highly appreciating real estate portfolio with the lifestyle benefits of vacationing in luxury residences in the world's most desired destinations.

Whether you are a young family with school-age children, a busy corporate executive, a committed medical practitioner, a manager of a law firm, or a retired couple, Legacy likely has an ownership program that will fit your lifestyle, while producing dividends every time you vacation.

Legacy owners invest in the company because they seek a first-class and hassle-free vacation lifestyle, and want to be more than a ''member" of a private destination club – they want to own and enjoy a portfolio of luxury residences through participation in a real estate investment group. For this reason and many more, Legacy is a smart investment in a lifestyle to appreciate.