Equity Residences Investment Model: Your FAQs Answered

11

Do you offer a 1031 exchange into any of your funds?

We do not currently offer 1031 exchanges into our funds.

12

How does Equity Residences differ from Destination Clubs like Inspirato, Exclusive Resorts and other options in the industry?

Like Equity Residences, destination clubs offer their members exclusive access to vacation homes and hotels around the world. Unlike Equity Residences, their members pay fees to access the homes and have no equity in the homes and no potential fee offsets from rentals. Equity Residences funds provide luxury travel experiences, real estate ownership (and the potential appreciation that comes with equity), and the benefit of rental income to reduce or eliminate annual investor fees.

Equity ResidencesDestination Clubs
Luxurious, fully serviced residencesyesyes
Multiple locations and luxury residencesyesyes
Guaranteed liquidity periodyesno
Fund managed property purchase and saleyesno
Cash Dividend Opportunityyesno
Rent-Free Vacationsyesno
100% of Your Capital Contribution is Returned plus 80% of profits from appreciationyesno
13

How does Equity Residences identify and acquire the best homes for investment?

We get this question all the time! The core principals are:

  1. Understanding which locations and types of properties will deliver an exceptional vacation experience and provide a good rental yield. We typically aim for 6% to 10% cap rates in our vacation homes.
  2. Determining which homes are more likely to appreciate and what, if any, remodeling will increase the value and rentability of your homes .
  3. Having our investors tell us where they want homes added and then analyzing the markets to ascertain the best investment opportunities.
  4. Buying with cash to obtain the best price and to move fast on the best deals.

For a more in-depth explanation please go toour blog

14

How much do I get to use the fund homes?

  • Investors can reserve one to three weeks of vacation per year during our Reservation Periods – depending on the destination, home value, and season.
  • Additional vacations are available on a short-notice basis.
  • Additional long-lead-time vacations are available with additional investment.
  • There are no blackout dates.
15

Why are the Fund homes rented to non-investors?

  • Rental income from high-net-worth guests helps offset annual operating expenses. allowing us to offer the lowest annual operating fee of any comparable fund.
  • Any rental income in excess of property and fund operating costs allows us to distribute cash dividends.
  • Renters are high-net worth individuals who are pre-qualified to become Fund investors.
16

How soon do members of the public have access to a rental calendar?

As soon as we complete a round of investor reservations. First, we open the calendars for the Holidays. After we confirm all the investors, we open the holiday calendars for the renters or investors who want to book the weeks later in the year.

Same with all other times: investors can book October 1- September 30 in May-June of the same year. Renters have access to the calendars after investors choose their weeks.

17

What is a Fund credit and what can I do with my credits?

Please watch this VIDEO to learn more about fund credits.

18

Are we able to book homes for our family/friends using our credits, and do we need to be present as well?

You can book homes for your friends and family with credits. Space available privileges are exempt from this rule.

Please watch this VIDEO to learn how your family and friends can use credits to book homes.

19

How does the residence selection process work? Can you share examples?

In December, we send out reservation forms to book the next reservation year’s holidays up to 16 months in advance. This is the time to select New Year, Christmas, Fourth of July, and regional holidays such as President’s Day at ski homes and Palio in our Siena home. Our reservation year runs from October 1 to September 30 every year.

In June we send reservation forms to book weeks 4-12 months in advance. That includes busy times like Spring Break and normal weeks when you just want to travel.

Both times we send out reservation forms to investors, and investors have three weeks to get back to us with preferences. We ask you what your priority (preferred) visits are, preferred dates, and alternative dates and locations (if any). This way, we can put a schedule together like a puzzle and accommodate about 98% of all investors for their preferred visits. If there is a conflict, we reach back out to you and work to resolve it.

You can always book residences on our partner portal on the first-comer first served basis outside of the by-annual reservation process.

20

What is an investment unit?

Please watch this VIDEO to learn more about investment units.

Discover Our Current Open Investment Funds.

contact us

Equity Residences LLC

500 Westover Drive #12169, Sanford, NC 27330

Tel: +1-619-796-3501

Email: info@equityresidences.com