BelleHavens President Darin Gilson sent an email to members last Thursday to “alleviate any concerns [members] may have as a result of [the Tanner & Haley bankruptcy] announcement, and remind [members] of the sensibility of the BelleHavens equity model.”

BelleHavens provided Helium Report with a copy of the communication, which we’ve posted below with the club’s permission. The key points reiterate a theme we covered in an interview with Darin Gilson (photo, below) last March: a unique club structure that provides an innovative solution to member deposit protection.

We analyzed BelleHavens’ business model in our Decision Guide to Destination Clubs and deemed it a “hybrid” between non-equity and equity clubs. Rather than finance the purchase of homes by leveraging membership deposits, the club acquires a home outright for every 10 members that join. With no debt, the club can point to a fully-owned portfolio of assets to provide protection for member deposits.

Michelle Stevens, Director of Marketing at BelleHavens, indicated the club received 100% positive response to Gilson’s email. Given the enthusiastic insights we’ve learned from BelleHavens members, we’re not surprised the club continues to enjoy solid support from its member base. Later this week, we’ll provide more feedback from a BelleHavens member on a recent travel experience.

BelleHavens Equity Model Safer for Club Members

Salt Lake City (August 3, 2006) – Recently, destination club pioneer Tanner and Haley filed for Chapter 11 bankruptcy protection in order to reorganize the company and restructure their business model (read more at realestate.halogenguides.com). With this announcement, members of destination clubs as well as potential buyers may be experiencing some skepticism about the industry.

Fortunately, members of BelleHavens, the first equity destination club, have no cause for concern. We have built a club around the goal of providing unprecedented asset protection for our members. BelleHavens’ members are equity owners of the club that owns a collection of magnificent homes, free and clear of all debt. Therefore, a membership in BelleHavens is backed by a diversified portfolio of real estate, providing true asset protection behind the membership deposit. This differs from most other clubs, which offer non-equity memberships and often rely on attracting enough new members to keep ahead of large debt burdens and lease payments.

BelleHavens was the first club, and still one of very few clubs, to launch with an equity ownership model, mostly because developing an equity club is slower, requires more initial start-up capital and imposes stricter and more prudent guidelines on the way members’ deposits are handled.

Destination clubs represent an outstanding alternative to second home ownership and a great option for luxury travel. While researching destination club options, buyers should beware of non-equity destination clubs, those that excessively use leased properties in order to increase availability, and those that use membership deposits and annual dues to pay down debt. These business practices, which contributed to Tanner and Haley’s current financial distress, are still employed in some manner by many other clubs.

Fortunately there is a sensible option in the destination club industry. BelleHavens provides members true asset protection and the opportunity to own and enjoy beautiful homes in sought-after destinations around the world, with the personalized service and attention to detail that create luxury vacations and memorable adventures, time and time again.