Frequently Asked Questions

Investing

• What is the loan to value of residences held by ResClub?

  ResClub owned inventory will carry a maximum of 70% debt, typically less.

• What protections are in place for members?

  ResClub capital partner has pledged a $50 million bond that is noted on our balance sheet. ResClub maintains a minimum loan to value of 70% (30% minimum equity) in all properties.

• In the event of circumstances outside of ResClub control resulting in the property not performing as expected, could this have an effect on expected returns etc?

  With all investments there is risk. However, as seen in the latest statistics, the Vacation Rental Property industry was unique in its ability to continue performing during Covid. Further, our portfolio purchase model follows very strict guidelines, both financial (ADR and historic occupancy), and in the physical location (Airlift, tourism level and longevity, internal and external amenities and attractions, etc). Not all properties make the grade with ResClub. Only those that perform above an 8.5 or above on our purchase scale (1 to 10).

• Who services the debt and is there a cap on borrowing against each asset?

  Residence Clubs International, LLC services the debt and club member ROI via rental income. 70% cap.

• What is the agreement between ResClub and the 3rd party providers?

  The only agreement ResClub has with a 3rd party travel and services provider, and it is for 10 years. Advertising, CRM, IT, Mobile App, etc are also third party agreements and have various terms and conditions.

• What are the tax implications?

  Everyone’s tax plan and circumstances are different. Please consult a tax specialist regarding any investment and the suitability for investing using retirement funds, such as an IRA.

• Which resort and hotel groups are involved?

  ResClub is a provider of family resort real estate property investment products and services. There are no exclusive relationships with specific hospitality groups.

• What are the requirements for ResClub property acquisition?

  ResClub invests in Vacation Real Estate in proven, high demand markets with low seasonality as a growing hard asset-based portfolio. ResClub has an internal set of economic standards that must be met before an acquisition is considered.

• The Short-Term Investor products – how do they work?

  12-month term 15% annualized return for US Assets, 18% annualized returns for International assets. Dividend payment is made the last month of each quarter. Final payment includes the original investment. These are held as Senior Debt and directly secured to the property package in each syndication. This is a Real Estate Debt Investment.

• How do I verify my accredited status?

  During the investment process, you may be required to affirm that you are an accredited investor. Different offerings may require different levels of proof, and may have different methods to provide that proof. Review instructions carefully while you go through the investment process.

• How are contracts signed?

  During the investment process, you will receive specific instructions about how you are to sign any documents. Each offering may use it's own method of signing, so review instructions carefully during the investment process.

• How do I pay?

  During the investment process, you will receive specific instructions for that offerings method of payment. The method of payment is specific to each project, so carefully review each step of the investment process.

• Will I receive project updates after I invest?

  You may receive updates from the project issuer on the status and progress of the project. You will be notified directly of these updates, and they may be viewed on the project itself under the update section.

• When will the offering close?

  An offering closes when either the maximum amount of funding has been reached, or the end date of the funding round has been closed.

• Can the issuer or the portal cancel my investment?

  Yes, as long as your funds are still in escrow, or haven't yet been received, your investment may be canceled. Once the funding round has closed, your investment cannot be canceled.

• Who can invest?

  Different types of offerings allow for different investors. Some types of offerings require that you be an accredited investor, while others allow everyone the opportunity to invest. Some offerings may even require that you live within a certain area to invest. Knowing what kind of investor you are will help you understand in which offerings you may invest.

• How much can I invest?

  The amount of funding you can invest depends on your status as an investor, the governing regulation and limits the issuer has chosen to place. When you begin your investment, you will be shown both the maximum and minimum investment limits.

• What happens if an offering doesn't reach it's funding goal?

  If an offering hasn't reached it's funding goal by the end of a funding round, the project will close and your committed funds will be refunded. You should expect to receive a refund within 10 business days.

• Can I modify my investment?

  No, you cannot modify an investment after you've completed your commitment to invest. 

• Will I pay a fee for investing?

  No, you are not assessed any fees for your investment in any investment round. The fees associated with running the project, accrediting you as a qualified investor, placing the funds received into escrow and so on are paid by the issuer.