The Luxury Real Estate Investment Fund

Investor FAQs: How Equity Platinum Fund Yields Profits and Vacations

HOW THE INVESTMENT FUND WORKS

Luxury real estate investment fund logo representing Equity Residences, emphasizing high-end vacation homes and investment opportunities.

Invest in a Growing Real Estate Fund

Our luxury real estate fund focuses on investing in high-end vacation homes with strong appreciation potential.

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Luxury real estate investment fund logo representing Equity Residences, emphasizing high-end vacation properties and investment opportunities.

Enjoy Rent-Free Vacations

Enjoy 10 Years of Rent-free Vacations Worth Tens of Thousands of Dollars Every Year

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Luxury real estate investment fund logo representing Equity Residences, emphasizing high-end vacation homes and investment opportunities.

Travel to Exclusive Destinations

Choose from tens of luxury real estate investments in our portfolios and Thousands of ThirdHome and Elite Alliance destinations for your vacations

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Investment fund logo for Equity Residences, symbolizing luxury real estate investment opportunities in high-end vacation properties.

REAP YOUR WELL-EARNED REWARDS

You Receive Many Valuable Vacations + Your Investment Back + Real Estate Appreciation

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ESTIMATED VACATION VALUE OVER 10 YEARS

$327,750

TYPICAL INVESTMENT

$250k-$330k

ESTIMATED VACATION VALUE OVER 10 YEARS

11%-19.6%

Projected IRR

3%-7%

PROJECTED ANNUAL PORTFOLIO APPRECIATION

WHY INVEST IN A LUXURY VACATION FUND?

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PROVEN, INNOVATIVE INVESTMENT STRUCTURE

Equity Residences creates luxury real estate funds in which investors pool their capital and co-own a portfolio of high – end vacation homes  in coveted destinations. We choose the best places to buy vacation homes. You enjoy rent-free vacations in investment homes across all the portfolios. Residence occupancy not used by investors is rented to offset operating expenses, significantly reducing your annual fees.

Our funds operate debt-free and act as a capital preservation play for investors who want to diversify their portfolios with luxury vacation homes in the world’s top destinations. More than 90% of invested funds are used to acquire prime real estate.

Equity Residence funds are managed by a team of experienced finance, hospitality, and real estate professionals with a successful track record in the industry

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TWO SOURCES OF INVESTMENT RETURNS

You will realize a return on investment from two sources: asset appreciation and rent-free vacations.

Fund homes are acquired after researching real estate in the desired markets for appreciation potential and projected vacation rental income. e. As demonstrated by performance to date, our fund homes are “bought right” and cost-effectively remodeled when appropriate.

Because you own the fund homes, rent-free family vacations become an investment, rather than an expense. And the vacation experience is enhanced by the Equity Residences hospitality team that curates each visit to a fund home. Personal concierge services including a personal chef, pre-stocked refrigerator, and access to sports and leisure equipment are all part of the experience.

The number of luxury vacation homes available to our investors is dramatically expanded through partnerships with Elite Alliance and THIRDHOME which provide access to hundreds of homes around the globe.

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FLEXIBLE RETURN OPTIONS

If you’ve ever asked yourself, “Should I buy a vacation home?” — we have the answer for you. With our funds, you can tailor your returns and vacation use to suit your personal situation.

You can elect to reduce your vacation use to offset annual fees or you can extract tens of thousands of dollars in the form of rent-free vacations each year by maximizing your family’s use of the fund homes.

There are no blackout dates. You have the freedom to reserve residences for holidays or other dates that are most desirable for your family’s schedule.

However you choose to manage your investment benefits, at the end of a 10-year utilization period, the homes will be sold, and you and your fellow investors will  receive

your original investment plus 80% of the real estate appreciation. In the interim, you will enjoy amazing vacations and create lifelong memories.

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OUR INVESTORS EXPLAIN THE BUSINESS MODEL

Explore our investment funds

We are redefining vacation home ownership by making it an affordable and financially attractive investment. Our funds buy homes in popular travel destinations such as Maui, New York City, Park City, Lake Tahoe, Italy, Costa Rica, and more. These stunning vacation homes feature top-of-the-line amenities, breathtaking views, and prime locations, putting you right in the heart of the action. Even better, you can use these residences without worrying about the hassle of maintenance or upkeep.

With your Equity Residences, you are not just purchasing a vacation home, you are making a smart financial investment. The funds are structured to maximize returns while minimizing risk, making it an attractive option for anyone looking to diversify their investment portfolio. As a Fund Partner, you’ll have the opportunity to participate in the appreciation in the value of the homes, providing potential long-term returns on your luxury vacation home investment.

Learn more about why our funds offer both a smarter way to invest and a smarter way to travel.

Equity Platinum Fund 2

Opened for investment: 2022

Closed for investment: 2027 (projected)

Fundraising goal: $50M

Anticipated assets liquidation: 2037

Number of investors: 160

Average investment per residence: $1.5 - $3.5M

Target number of homes: 16

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FAQ

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How do I make money?

  • At the end of the 10-year investment period we sell the homes. You and your fellow limited partners recoup your initial investments, plus share 80% of any profits from appreciation.
  • Annual cash dividends are distributed pro-rata once property and fund operating costs are covered and adequate reserves are maintained.
  • During the 10-year hold period you can enjoy rent-free vacations that can save you in excess of $28,000 -$100,000 in rental expense annually.
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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

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What are equity funds and how do they relate to luxury real estate investments?

Equity Residences funds pool investor capital to acquire and manage assets like luxury vacation homes. In the case of luxury real estate investments, this model creates access to premium homes and professional management that offers investors diversification, appreciation potential, and a personal vacation benefit that traditional investments can’t match.

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What makes luxury real estate funds an attractive investment opportunity?

Luxury real estate investment funds created by Equity Residencesoffer a balance of lifestyle and financial returns. By investing in our funds, accredited investors co-own portfolios of high-end vacationproperties without the burden of managing them individually. This approach delivers both asset appreciation and rent-free stays in world-class homes, creating a smarter alternative to a traditional vacation rental investment route. 

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What are the best places to buy a vacation home with strong rental potential?

The best places tobuy a vacation homecombine lifestyle appeal with strong investment fundamentals. Equity Residences targets markets known for long-term appreciation and   high rental demand year-around,  such as Hawaii, California,Italy , and the Caribbean. These destinations perform consistently as bothluxury real estate investmentsand desirable vacation escapes.

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Should I buy a vacation home or invest through a luxury real estate fund?

Many investors wonder, “Should I buy a vacation home?” While direct ownership offers control, it also comes with maintenance, a potential mortgage for a vacation home, and limited diversification. Investing in a luxury real estate fund allows you to co-own a curated portfolio of vacation homes, professionally managed and strategically located in top markets. You enjoy personal use, diversified locations, and potential returns, without the stress of managing a single home. 

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How does the luxury real estate investment fund model work?

Our investors make an upfront capital investment, and in return, they receive an equity interest in the fund’s portfolio of luxury vacation homes. The investment period is typically 10 years, and at the end of the term, the fund is liquidated, allowing investors to realize the full value of their investment and receive anticipated appreciation proceeds. Additionally, our investors enjoy the luxury of rent-free vacations in these upscale residences throughout the investment term, blending financial growth with lifestyle enrichment.

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How does short-term rental financing compare to investing in a luxury fund?

Using short-term rental financingto buy a vacation home often involves debt, variable interest rates, and single-market exposure. By contrast, investing through a luxury real estate fundoffers diversification across multiple destinations, managed by professionals, with no mortgage or personal financing required. Our funds do not use leverage, further reducing your investment risks. 

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What is an investment unit?

Please watch this VIDEO to learn more about investment units.

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What are the Investment, Utilization, and Liquidation Periods?

  • Investment Period: the time allocated to raising capital for the fund, acquire residences, and launch operations. This phase typically lasts 4-5 years, depending on the fund size.
  • Utilization Period:begins once the Investment Period is complete and typically lasts 10 years. During this time, the fund is fully operational, allowing investors to enjoy utilization of the properties.
  • Liquidation period: follows the Utilization Period and is the time during which we sell the homes and distribute the sales proceeds – invested capital plus appreciation – to investors.
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What are the best places to buy a vacation rental home?

If you’re looking for the best place to buy a vacation rental home, start with destinations that attract year-round visitors and offer strong appreciation potential. Equity Residences invests in areas such as the Caribbean, Mexico, and popular U.S. coastal regions, chosen for their proven performance and enduring traveler demand. Each home is carefully selected to deliver both lifestyle value and investment return.

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What is the cost per night at an Equity Residences home?

Investors do not pay a nightly lodging fee, only a housekeeping fee. However, extrapolating by dividing the annual operating fee by investor vacation use, the cost per night ranges from $199 to $550 for luxury vacations that would typically rent for $1,600 to $1,700 or more per night. Our industry-best nightly cost is attributed to our rental income and our industry-low syndication costs. For a personalized calculationget in touch with us and tell us how you vacation.

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What are my annual operating expenses for an Equity Residences investor?

You have the flexibility to determine your out-of-pocket expenses:

  • Choose a no-annual-fee option with a reduction in vacation use.
  • Pay the annual operating fee that depends on your investment amount and enjoy your luxury vacations fully.

For more information on the current fees per fund and the level of investment, please get in touch with us. 

Inquire About Our Current Open Funds Find a Lifestyle That is Right for You

contact us

Equity Residences LLC

500 Westover Drive #12169, Sanford, NC 27330

Tel: +1-619-796-3501

Email: info@equityresidences.com