Seven Year Term. Sales Proceeds Returned To LLC Owners.
Fast-forward seven years. How is your LLC interest returned? It is no coincidence that seven years is the horizon for return. Our return period is influenced by three factors:
- Life changes in seven years and sometimes dramatically so. Certainly the basis for an old adage like, “The Seven Year Itch;”
- In a KPMG study of all private memberships- health clubs, country clubs, yacht clubs, destination club; the average life of a membership was seven years; and
- Key to the design elements was the study of the U.S. Real Estate Market, over a 40 year period, that suggests, given ample time, quality real estate can bounce.
After the seven year LLC term is concluded, the real estate of the LLC is sold at its highest possible value with the sale proceeds flowing directly to the LLC’s Owners. As the manager, Lifestyle Asset Group is eligible under a pay for performance management provision of only 10% of net increases in the value of the real estate over the seven-year term, therefore it is incentivized to acquire these homes at the lowest possible price via all-cash negotiations, impeccably maintain the homes over the 7-year term of the LLC, and sell them at their highest possible values.
This unique dynamic is why we like to say that being a member of AtlanticOne or PacificOne is a bit like being half-Warren Buffett and half-Jimmy Buffett: there is the wisdom of owning debt-free vacation homes in popular markets for the mid-term to long-term, as well as the ability to be a traveler to each and any of these wonderful destinations whenever you want.
Learn more about second home ownership with AtlanticOne and PacificOne by downloading the Facts at a Glance.