Frequently Asked Questions

• Lifestyle Asset Group creates a Limited Liability Company (LLC), a Single Purpose Entity LLC that is the legal owner of this vacation home. The LLC then releases membership and the offering enables approximately 5-10 partners to acquire memberships into the LLC.
• Partners forward a one-time capital contribution and these funds are combined to acquire the property in all cash. There is no debt permitted in the LLC.
• Each partner pays their prorated share of the annual operating costs and management fees.
• Each partner typically enjoys 4-8 weeks of use per year and can sponsor unaccompanied guests.
• There is a defined exit strategy so it is clear upfront how and when your original capital contribution is returned.

The annual fees cover all operating expenses associated with home ownership: property taxes, insurance, utilities, homeowner association fees, miscellaneous repairs and maintenance, tax return filings for the LLC, etc.

Lifestyle Asset Group is also compensated for its concierge services like pre-arrival grocery shopping and trip planning, the 7×24 management of the property, accounting services, reviewing and approving all invoices by the various providers and trades and remitting payment, actively managing the reservation request process, reciprocity to sister LLC residences and Elite Alliance homes,  and working to refill cancellations by partners that cannot travel the dates they reserved and more.

Our mission is to ensure that every moment of your vacation is spent on vacation and that there are no maintenance demands that are associated with owning a second home.

At the completion of the defined term for the LLC, the property is sold, either to one of the existing co-owners or with a real estate agent. The co-owners will first receive back their original capital contribution and then their share of any gains in the value of the property that may have accrued over the LLC term. If the co-owners are not ready to sell, there is the option to extend the LLC term another year via a supermajority vote.

In a typical fractional real estate offering, there are several weaknesses in the model:
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‍There is no exit strategy in most fractionals. Each owner is left to their own devices to resell their share, which is difficult and typically at a loss. Our model has a defined exit strategy, so you know exactly when and how you are getting your money back.

‍There is no demand for a resale of a fractional real estate interest once you decide you want to sell. As the fractional developer earned their margins on the front end of the transaction, with markups of 50% or more on the real estate’s value when originally offering the fractional interests, it is not uncommon for a fractional real estate owner to realize only 30%-35% of their original investment when they sell their share….if they can sell it all. In our model, the home is both acquired and resold as traditional whole ownership, ensuring a predictable, reliable, and hopefully profitable exit strategy for all stakeholders.

Every commercial fractional project in the United States involves multiple units that are generally identical residences, i.e., 20 residential units with 160 or more owners. If you own an interest in a commercial fractional project, you are very likely to stay in different residences each time you go. Our model, conversely, owns ONE stunning luxury second home that only five-ten partners call home. We have departed 180 degrees from the commercial fractional product with hundreds of owners and dozens of residences and personalized it completely.

View this video explanation of the reservation protocols:
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‍https://youtu.be/G7ujn1xnKqo
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‍‍Lifestyle Asset Group’s rotating priority reservation system (PRP) allows co-owners to plan their vacations using a fair and equitable process. Co-owners can sponsor unaccompanied guests.

• Each co-owner is assigned a number 1-5. Once assigned a number, the co-owners will choose a two-week reservation in the ensuing 12-month calendar in order from co-owner #1 through #5, then another two-week reservation in an order of #5 to #1.
• Once twenty weeks are reserved (5 owners each selecting 2 weeks), the process will continue for the second set of two-week reservations until 40 weeks are scheduled.
  
• The remaining 12 weeks of the year are left open as each destination has times of the year that is considered “off-season”. Co-owners can still enjoy the home during these weeks as free space use, which is additive to the 8 weeks/year that is allocated.
  
• The order of 1 through 5 and 5 through 1 changes each year with co-owners 2 advancing to 1 in the second year of the PRP and co-owners 1 moving to 5 in year two. By rotating the order in the selection process under the PRP, all co-owners will have years of holding positions #1, #2, etc.
  

“Space Available” Reservations:

There will be periods during the year when the property will be unreserved and available and co-owners are welcome to reserve the home on short notice. Accordingly, whenever the home is available and unreserved twenty-one (21) days hence, this opportunity for free, short notice reservation shall be deemed “Space Available.”

If the community where the home is located allows for nightly rentals, you have the option to donate weeks to a rental pool and receive credits against your annual fees.

Our chief aim is to create a better way to own a fabulous vacation home in one’s favorite destination at a fraction of what it costs to rent a similar home or own the property by yourself.  As an example, when you divide your annual fees by your allocation of nights per year, your overall cost per night is typically 70% - 75% less than what you would pay if you rented the home.

Yes, between the sister LLCs managed by Lifestyle Asset Group and the locations within the Elite Alliance, the leading exchange service provider for luxury private residence clubs around the globe, you can exchange your weeks for travel to over 100 coveted destinations and remarkable properties all over the globe.

To learn more about the four and five-star properties of Elite Alliance, visit www.elitealliance.com.

You can reserve one of the LLC shares by putting down a fully refundable reservation deposit. Upon receipt, you will receive the complete set of legal documents which include the LLC Operating Agreement, Offering Membership Materials, and Subscription Agreement.

The management team will work with you and/or your professional advisors to ensure all your questions are answered before deciding to invest.

Yes!
We understand that not all second homeowners are actively looking to sell their properties through traditional market channels. We know from experience that co-ownership can be a mutually beneficial option that offers numerous advantages, including shared costs, increased property utilization, and potential rental income.

By entering into a co-ownership agreement, you can retain a portion of ownership while gaining access to additional resources and potential income from your property. Co-ownership allows you to unlock the full potential of your property without the burden of sole ownership responsibilities.

Our database of potential co-owners consists of like-minded individuals who are seeking exceptional properties for co-ownership. We envision a collaborative approach that maximizes the benefits for all parties involved.

If you are open to exploring the possibility of co-ownership or would like to learn more about how this arrangement could work for you, we would love to schedule a confidential, no-obligation discussion.

Please feel free to reach out directly to Karla Jones, Co-Founder, and Co-Ownership Specialist, to discuss this exciting opportunity further. Karla@lifestyleassetgroup.com, text or call 970-218-9222.