Delivering Peace of Mind
The exit strategy for My Vacation Home LLC’s was developed by Lifestyle Asset Group to ensure shareholders have a genuine investment opportunity. The term of the LLC is up to 8 years, a length that mirrors the holding period of vacation homes in general. At the end of the term, the residence is sold by Lifestyle Asset Group on behalf of the LLC at its highest possible value.
Each shareholder’s capital contribution is first returned in full, and 85% of property appreciation is then shared equally. [5] Upon the orderly completion of the sale and disbursements, LLC members can pursue other vacation interests and investments. The shareholders can vote to extend the term via a supermajority vote.
Footnotes:
[1] National Association of Realtors (NAR) year-end report.
[2] On a cost per night basis, this can be very prohibitive — particularly so with mortgages, which occur in approximately 70% of all transactions. Additionally, insurance costs in coastal communities can run as high as $30,000 per year. When you add property taxes, repairs, maintenance, HOA or Community Association Dues, utility charges and more, those 30 nights of vacation bliss can come at a cost of $2,000 to $3,000 per night, or even more.
[3] This includes complicated reservation processes that are necessary for projects with 100’s of owners and scores of identical units
[4] This shared ownership model is offered as a securities offering under Regulation D of the Securities Act and more specifically, under Rule 506c.
[5] Each LLC member will also be given first right of refusal to acquire the home before it is listed for sale. Lifestyle Asset Group earns 15% of the property’s net gains as compensation. 5] Each LLC member will also be given first right of refusal to acquire the home before it is listed for sale. Lifestyle Asset Group earns 15% of the property’s net gains as compensation.