With the real estate markets slowing due to an unstable economy coupled with political uncertainty, an increasing number of potential buyers are putting the dream of a second home on hold.
Timing is everything --- Lifestyle Asset Group may just be the ideal solution in today’s market.
Here is the dilemma: you’ve wanted to purchase a second home in a dream destination for years. Problem is you have trouble justifying the cost when you will only use it a few weeks a year. You remember well what happened in the real estate market during the last recession. No surprise you are hesitating to either take a second mortgage or sell off your stock portfolio to buy that dream second home.
The solution: buy a smaller percentage of a magnificent vacation property. You then only pay your portion of the acquisition costs and annual fees which makes perfect dollars and sense.
The outcome? Less risk exposure. By investing far less than you would if you bought the entire home minus any mortgage debt, your risk exposure is decreased dramatically should there be a downturn in real estate values.
This is not a timeshare or fractional offering.
This is a luxury vacation home partnership; an affordable and sound investment business model that is changing how our clients view investing in a second home.
Here is how it works:
- A Limited Liability Company (LLC) is created to purchase the property
- 6-10 investors are admitted into the LLC
- Investors’ capital contributions are 100% secured by the property which is acquired in an all-cash transaction.
- No debt is permitted within the LLC
- Ownership costs and personal usage are shared based on the percentage of ownership each investor holds
- Investors have voting rights within the LLC
- Zero-hassle ownership and five-star personal travel and concierge services
- A flexible and fair rotating reservation process.
- Defined 7 – 8 year exit strategy whereby the property is sold at the highest value, all initial capital contributions are returned and net appreciation is shared by the investors based upon their ownership level
Lifestyle Asset Group currently has partnership offerings spanning from Maui to the Caribbean with a strong focus in Los Cabos, where traditional real estate financing options are limited.
"Back in 2013, we were the first to introduce this sensible and affordable way to own a luxury second home; fresh off the heels of the last recession”, says, Karla Jones, Co-Founder and Sr Partner, “This partnership model is by far the very best second home ownership model for anyone who values debt-free ownership, financial transparency, an experienced management team, and revenue potential from rental income with an established upfront exit strategy.”
Visit our destinations page to see all of our current offerings: www.lifestyleassetgroup.com/destinations
Don’t see your favorite destinations? Email Karla Jones at Karla@lifestyleassetgroup.com