Frequently Asked Questions

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Equity Financial Resources, LLC.  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 6-10 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, eight-year exit strategy so it is clear upfront how and  when your investment, plus any appreciation, is returned. 

WHATS IS INCLUDED IN THE ANNUAL FEES?

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.

Equity Financial Resources, LLC .  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.

HOW  AND WHEN DO THE PARTNERS GET THEIR INITIAL CAPITAL CONTRIBUTION BACK?  WHAT ABOUT GAINS IN THE VALUE OF THE PROPERTY? HOW IS THAT DISTRIBUTED?

At  the completion of the 1-year LLC term, the property is sold its highest  possible value. The partners 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 partners  are not ready to sell, there is the option to extend the LLC term  another year via a supermajority vote. 

HOW DOES THIS MODEL COMPARE TO OTHER FRACTIONAL OFFERINGS?

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, 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 six – eight 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. There is nothing like this  innovative option anywhere within the second home ownership market.

DESCRIBE THE RESERVATION SYSTEM.

Equity Financial Resources, LLC .  Rotating priority reservation system (PRP) allows partners  to plan their vacations with as little or as much advance notice as  they choose. You can sponsor unaccompanied guests, giving you the  flexibility to send family and friends on amazing vacations, use them as  a reward for a high-performing employee, or as a donation to your  favorite charity. Reservations are made two ways:

1. Each  partner is assigned a number 1-6, or 1-8, depending the number of  partners and when they first commit to the project. Once assigned a  number, the partners will first choose one reservation in the ensuing  12-month calendar in an order from shareholder #1 through #6, then a  second reservation in an order of #6 to #1. The order of 1 through 6 and  6 through 1 changes each year with partner 2 advancing to 1 in the  second year of the PRP and partner 1 moving to 6 in year two. By  rotating the order in the selection process under the PRP, all partners  will have years of holding position #1, #2, etc.
2. The  second reservation protocol is the application of the shareholder’s  remaining allocation of weeks following the PRP when each shareholder  can evaluate their own timelines and schedules in applying their  remaining weeks in their account for additional dates that are  attractive to them. There is no formal structure to these reservations  and they are all first come-first serve; last minute or well planned.

“Space Available” Reservations:

There  will be periods during the year when the property will be unreserved  and available and shareholders 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.”

WHAT IS THE RENTAL PARTICIPATION PROGRAM?

 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. 

WHAT IS MY OVERALL COST PER NIGHT IN THIS MODEL?

 Our  chief aim is to create a better way to own a fabulous vacation home in  one’s favorite destination at a fraction of the cost that it would cost  to rent a similar home or own it by yourself.  As an example, when you  divide your annual fees by your allocation of nights per year, your  overall cost per night is 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. Furthermore, this cost per night does not take into  account any appreciation you may receive at the end of the term. 

CAN I ACCESS THE OTHER RESIDENCES OF LIFESTYLE ASSET GROUPS LLC´S?

Yes,  between the sister LLCs managed by Prime Assets, 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.

WHAT ARE THE NEXT STEPS?

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.