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 Life-style 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.