Introducing My Vacation Home, LLC

Not a Timeshare or Fractional Offering, this is True Equity Ownership on Your Terms

Since 2013 Lifestyle Asset Group has been a pioneer in Collective Asset Ownership, where you, along with a small group of like-minded investors, enter into a limited real estate partnership to own debt-free a luxury property and pay only your portion of the ownership costs. If you love vacationing in magnificent settings, My Vacation Home LLC may be the right investment for you and your family.

Today's Vacation Home Market

Owning a vacation home is the aspiration of many Americans. 20% of all homes purchased are vacation homes, which totaled nearly 1,000,000 properties with an aggregate value of approximately $160 billion.

Only 25% of the buyers of these vacation homes plan to rent their property to generate rental income and offset the costs of ownership. In balance, nearly 80% intend to enjoy their residences with family and friends even though, data shows on average, they’ll do so for just over 30 days per year. [1]

The Quandry

Why do the vast majority of owners use their vacation homes for just 8% of the year while paying 100% of the expenses? [2] The answer is quite simple: There have been no sensible alternatives for people looking to buy a vacation home in a beloved destination.

Case in point is the traditional fractional ownership model. The fractional industry has seen extraordinary market share loss in the last 10 years, plummeting by 85% from $1.4B to just $200M in 2015. There are a host of contributing factors for this startling free-fall. [3] However, the fundamental reason is simply that there is NO resale market for a buyer’s fractional interest. This is because developers commonly mark up the value of the underlying real estate by 50% or more in the fractional process, while the resale of a fractional interest is typically 35% to 40% of the original purchase price. And many listings never sell at all.

The Solution

Undeniably, the desire for a family getaway is strong. Yet, with the fractional purchase option off the table and the cost of going it alone prohibitive, what is needed is an entirely new alternative, one that is both an affordable and sound investment.

Lifestyle Asset Group has developed a game-changing solution, called “My Vacation Home LLC”. [4] This is a shared ownership model that provides approximately 6-8 weeks of annual use — the average for vacation homeowners — while offering a transparent and genuine investment opportunity. Here’s how it works: An LLC is formed to purchase a single remarkable vacation home. The home is put under contract and 40 units/weeks are offered. Shareholders can buy as many units/weeks as they desire. Upon closing, the shareholders own the vacation home free and clear.

No Price Markup

Contrary to other shared ownership programs, shareholder’s LLC capital contributions are determined by the actual cost of the residences without traditional fractional real estate developer markups. This means your acquisition costs are substantially lower, thus providing for greater potential for appreciation in the value of your LLC interest over the 7-year term.

Cost Commensurate with Use

The typical second home owner only uses the property for around 30 nights a year yet pays 100% of the operating and maintenance costs. Lifestyle Asset Group has developed a game-changing solution, called “My Vacation Home LLC”. [1], you enjoy anywhere from 14 - 56 nights of use each year but only pay your share of the costs.

Transparency

LLC owners receive financial statements and so you know where every penny of your annual fees are being allocated. Owners have an elected managing member who sits on the board of advisors, providing performance feedback to the team at Lifestyle Asset Group.

[1] This shared ownership model is offered as a securities offering under Regulation D of the Securities Act and more specifically, under Rule 506c.

Performance Based Management

Lifestyle Asset Group’s compensation is strictly performance based; the company earns fees in three ways:

1. 6% of the initial capital contributed for services provided in subscribing the LLC, managing the real estate acquisition process, completing any and all improvements to the residences including furniture and fixtures and developing turnkey property management services.
2. The company earns a percentage from the annual fees paid by each shareholder.
3. The company is eligible for 15% of net appreciation when the residence is sold in 7 years.

Proven Management Team

Created and founded by three executives with over twenty years of experience in the luxury real estate and travel industry, Lifestyle Asset Group was established to create an innovative and sustainable collective home ownership model that improves upon the restrictions and weakness of the fractional and private residence club industries, while simultaneously aligning the interests of the shareholders and management team.

Success Story in WaterColor, Florida

Lifestyle Asset Group debuted My Vacation Home LLC model in WaterColor, FL.

WaterColor is a charming beach community on Florida’s Gulf Coast. The LLC acquired a spectacular home at 33 Sand Hill Circle for $2,725,000 and offered 8 exclusive shares to those with a strong interest in this coveted destination. The response was tremendous — in just 60 days all 8 shares sold and the property closed.

Each shareholder of the Watercolor, LLC invested approximately $365,000. The combined capital funded an all cash purchase of the $2,725,000 property. The annual costs per year, when divided among the shareholders is only $15,000. This makes the cost for 35 days of annual enjoyment at the WaterColor home around $425 per night. The home is 4,621 square feet, 6 bedrooms, 6.5 baths with interior design appointments in excess of $500,000. To compare, a 320 square foot, single queen room at The WaterColor Inn averages $441 per night, plus taxes.

The debut of My Vacation Home LLC was a success for a very clear reason. While each of the acquiring LLC members loved that they would enjoy their Watercolor residence around 35 nights per year, what resonated with them was that it is an affordable and sensible investment opportunity.

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.

A Better Vacation Home Investment in Every Way

With My Vacation Home LLC, people who desire to own a vacation home in a destination they love, can join with just 5 other shareholders and enjoy a multi-million dollar property for just 16.66% of the capital and annual cost. In six years, the property is sold at its highest value, capital contributions are refunded, and the increase in property value is equally shared.

Most importantly, with a highly flexible reservation system and all management demands of vacation home ownership seamlessly handled by Lifestyle Asset Group, families and friends are free to relish every moment of their vacations together and create memories for a lifetime.

My Vacation Home LLC is that affordable and sensible alternative whose time has certainly come.

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