Burt Sugarman considers three factors before purchasing real estate in a resort: the quality of the operator;
how much he and his family will enjoy the property; and his estimation of its
future appreciation. In his experience, having bought and sold a number of such
properties, most of the pleasure and potential profit hinge on who runs the
show.
"If the clubs aren’t operated correctly, your property isn’t
going to increase in value," he says.
 Sugarman, a Beverly Hills businessman, recently bought a few
oceanfront lots in the Los Angeles–based Discovery Land Company’s new resort in
Cabo San Lucas (a recent purchase since he last spoke with Worth; see "The Private Resort
Home Market"). He did so in large part after enjoying his experience
as a homeowner in the company’s Iron Horse development in Whitefish, Mont. At
Iron Horse, he says an owner can count on Discovery’s attention to detail, and
recommends that buyers gauge whether management companies fulfill promises
ranging from construction timelines to restaurant openings, and consider
everything from how well they maintain greens on golf courses to how they greet
you upon arrival.
Sugarman prefers resorts that protect wildlife and are
environmentally sensitive. He also believes limited future development helps
protect property values. "You don’t want to have them triple the amount of lots
all of a sudden," he says.
Illustration by C. J. Burton.
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