equity based tennis club
equity based tennis club
I am considering joining an equity based tennis club. Anyone have any experience with something like this? Are there any hidden pitfalls?
Re: equity based tennis club
Make sure it's not one of those where if you want out of the club, you have to keep paying dues until they find a "replacement" member to take your spot. Plenty of people have been burned by that outdated membership model in golf clubs since the 2008/2009 bust.
Re: equity based tennis club
did you have this problem?tim1999 wrote: ↑Tue Oct 24, 2017 5:54 am Make sure it's not one of those where if you want out of the club, you have to keep paying dues until they find a "replacement" member to take your spot. Plenty of people have been burned by that outdated membership model in golf clubs since the 2008/2009 bust.
Re: equity based tennis club
That's what I'm afraid of. It almost seems like a time-share version for a club.
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Re: equity based tennis club
We're members at a club like this. As part of our club-search process, we visited all of the similar clubs in our area and noted that they all have very different "exit" policies. Some require you to "sell" your membership to a new member; otherwise (like a timeshare), you're on the hook for the monthly dues. Others, like the club we joined, allows you to "resign" provided certain conditions are met. In our case, you can resign your membership on the earlier of a 4-month waiting period or if there is someone on the waiting list ready to take your spot. Even though our memberships are "equity", you don't sell the equity component; rather, you receive a certain percentage of the current initiation fee upon exit.
One other thing to keep in mind is the financial health of the club. If the club won't tell you how full the membership is and the status of the operating/capital improvement funds, run. Many clubs are notoriously in the red on both fronts, which will lead to higher dues in the future or the club folding.
One other thing to keep in mind is the financial health of the club. If the club won't tell you how full the membership is and the status of the operating/capital improvement funds, run. Many clubs are notoriously in the red on both fronts, which will lead to higher dues in the future or the club folding.
Re: equity based tennis club
A now deceased relative had this problem with a golf club set up like this. He joined during the good old days when there were always far more people wanting to get in the club than wanted out. Waiting list, big initiation fee, etc. Decades later he wanted out due to declining health and inability to physically use the course and facilities. Since they were having problems attracting members, he was essentially on a waiting list to get out and had to continue to pay dues for 4 years until he passed away and was then relieved of the obligation. The club couldn't attract new members to this type of setup even waiving the initiation fee. This club is in the southwestern US and I heard this was a common membership setup when many of these clubs were founded between the 1950s and 1980s.BAM! wrote: ↑Tue Oct 24, 2017 12:14 pmdid you have this problem?tim1999 wrote: ↑Tue Oct 24, 2017 5:54 am Make sure it's not one of those where if you want out of the club, you have to keep paying dues until they find a "replacement" member to take your spot. Plenty of people have been burned by that outdated membership model in golf clubs since the 2008/2009 bust.