Frequently asked questions:

Q:How is a Private Residence Club (PRC) different from a timeshare or fractional ownership?

A timeshare offers a lifetime of vacations in a smaller residence, often a two-bedroom condominium. A timeshare offers a single, fixed, week of use each year. Most often, a timeshare loses most of its market value immediately after purchase.

A fractional offers a lifetime of vacations in a larger residence or villa. A typical fractional offers four to eight weeks of use each year. Most often, a fractional will lose much of its market value within three years of purchase.

A Private Residence Club offers a lifetime of vacation in a large luxury residence or villa. A typical PRC offers four to eight weeks of use each year. With the appropriate planning and management, a PRC owner can expect to maintain or increase the value of their PRC purchaser over the years.

Q:How is a Spring Creek Partners designed Private Residence Club different from other Private Residence Clubs?

Spring Creek Partners designed PRC’s emphasized a superior vacation experience in a luxurious villa or residence, but there is an equal emphasis maximizing the investment value of a PRC share purchased. That emphasis comes from careful planning, design, pricing, usage and reservations policies and marketing/sales management.

Q:What is the motivation of a PRC purchaser in 2015?

Today’s PRC purchaser want a luxurious and spacious villas in a high end location with resort amenities and great services. Since 2008, they also want the confidence that their investment in a PRC will produce investment quality returns when they decide to sell.

Q:Can I convert my resort condominium project to a PRC?

Yes. There may be deed restrictions, local regulatory restrictions or HOA restrictions that may need to be amended to gain approval to sell PRCs.

Q:Should I convert my resort condominium project to a PRC?

Yes if your current revenues from full ownership sales do not meet your expectations. A well design and managed PRC program offers investors significantly higher development profits and significantly higher HOA fees revenues.

Q:Should I offer equity or non-equity ownership shares?

Offering a deeded PRC interest is the best option but there have been successful PRC projects that offered a leasehold, right to use, shares in a corporation or a trust form of ownership.

Q:What kind of physical changes are typically involved when adding a PRC?

Very few, if any. A developer of luxury resort condominium project typically has done all of the work necessary to offer a PRC.

Q:How does a PRC HOA differ from a full ownership HOA?

Very little work is involved in moving from one to the other. A PRC HOA will specify usage programs and reservations systems as well as other specifics related to multiple owners and users of the property.

Q:How do PRC HOA fees differ from a full ownership HOA?

The fee structure for PRC HOAs differ significantly from full ownership HOAs. The biggest difference is that all condominium operating costs including maintenance, housekeeping, utilities and insurance is paid for the PRC HOA member at the beginning of the year.

Q:How do I determine how many fractions are sold into one condominium?

Many factors go into a decision about how many fractions are sold for each condominium. Your target market travel patterns is the most important variable.

Q:How do I determine the most appropriate usage plan (fixed week, floating week, continuous weeks, partial weeks) for my project?

Most PRC projects have a fixed week(s) component and a floating week(s) component. A few have continuous week or partial week capabilities. The mix of fixed weeks and floating weeks is determined by the travel habits of your visitors and by the variations from the peak seasons to the off-season.

Q:Is there PRC reservation software readily available in the marketplace?

Because every PRC is different in its usage programs and reservations systems, there is not reservation systems software available on the retail market. Spring Creek Partners has designed dozens of usage programs and reservation systems for individual PRC projects and can modify existing software to accommodate the needs of new PRC projects.

Q:Can I update my sales contract and start selling a fractional share immediately?

To give you the best chance to succeed: pricing, services offered, fraction size, usage plans, reservations systems, sales training and investment policies should be decided upon first and incorporated into the PRC program.

Q:Can my existing sales team sell PRCs?

Yes. Your in-house professional sales team can easily adapt with a minimum of training.

Q:How important is take out financing for the Private Residence Club purchaser?

Take out financing is important for all kinds of real estate purchases. However, a PRC purchaser is paying less than 15% of what they would have paid for a full ownership condominium. They often pay cash or finance the purchase themselves.

Q:What kinds of adjustments are needed with my marketing plan to support the sale of PRCs?

Very few, if any. Your marketing plan may already be attracting the needed number of qualified real estate prospects.

Q:What kinds of changes are necessary to your project documents to permit the sale of PRCs?

Very few. The HOA documentation for a full ownership project is very similar to the HOA documentation for PRC project.

Q:Can I offer a PRC while being affiliated with a hospitality brand?

Yes. Major hospitality brands such as Four Seasons, Ritz-Carleton and Fairmont are in the business of operating PRC resorts.

Q:What upfront costs are typical when I decide to investigate the possibility of offering a PRC?

None. Spring Creek Partners will provide a preliminary feasibility summary at no cost.

Q:How important is having an exchange company?

Very important. There are a number of exchange programs representing luxurious condominiums projects in popular resort locations.

Q:Can Spring Creek Partners manage the variety of development tasks required to launch a PRC sales program?

Spring Creek Partners has a long, successful track record in the planning, design, construction, operations, marketing/sales of PRC projects and can assist you in any way desired.