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:
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:
https://youtu.be/G7ujn1xnKqo
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.
“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 705 - 75% less than what you would pay for a 450 sq. ft. hotel room. Yet you are enjoying vacations in a multi-million-dollar private 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.
Karla Jones, Sr. Partner
karla@lifestyleassetgroup.com
970-218-9222
www.lifestyleassetgroup.com