You want the luxury of variety—access to beautiful homes all over the world—but you’re also a savvy investor. There are a surprising (and sometimes confusing) number of choices when deciding on a vacation real estate and/or lifestyle investment.
Each option has advantages and disadvantages. Equity fund ownership, for example, offers many of the same lifestyle benefits as destination clubs. But equity funds can be more investment-oriented than destination clubs and provide their shareholders ownership of their residence portfolios. Download our guide to luxury vacation home options to help you determine which real estate investment is right for you.
To learn more about Equity Funds, register to receive our Luxury Vacation Home Investment Guide.
Equity Residences Investment Funds Structure
Equity Residences structures its funds to be a financial investment, while also providing the lifestyle benefits offered by many other equity funds and vacation home categories. Our funds have a 10-year liquidation horizon. At the end of that period, the fund residences are sold and the proceeds, including significant anticipated appreciation, are distributed to our investors. Your money goes to work as soon as you invest, and you go on incredible vacations with the people you love. Equity Residences Funds:
Invest in “bought-right,” multimillion-dollar, vacation residences with high potential for investment gains.
Provide luxury rent-free vacations.
Have the lowest investor fees in the industry – and offer the flexibility to eliminate the annual fee altogether by giving up some residence usage rights.
Offer dividend opportunities based on excess rental income
Leverage our networks of affiliates (including Elite Alliance and THIRDHOME), as well as our highly consultative scheduling process, to allow investors to vacation where, when, and how they want—even at peak-demand times.
Offer best-in-class cost-per-night
Provide investors the opportunity to take last-minute vacations for as little as $495 in addition to their portfolio vacation privileges.
I get to make what to me is a smart investment in real estate, and go on fantastic vacations with my family? We get to enjoy the variety of seeing the world, and also go back again and again to the places we love? Where do I sign up?
Karthik on becoming an Equity Residences Platinum Fund investor
Frequenty Asked Questions
How does Equity Residences differ from Destination Clubs like Inspirato, Exclusive Resorts and other options in the industry?
Equity
Residences
Destination
Clubs
Luxurious, fully serviced residences
Yes
Yes
Multiple locations and luxury residences
Yes
Yes
Guaranteed liquidity period
Yes
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Fund managed property purchase and sale
Yes
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Cash Dividend Opportunity
Yes
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Rent-Free Vacations
Yes
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100% of Your Capital Contribution is Returned plus 80% of profits from appreciation
Yes
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What makes Equity Residences the best vacation real estate investment?
Our Equity Residence Funds are specifically designed to be a financial investment that also provide flexibility in balancing monetary returns and remarkable vacation experiences. We apply our industry expertise to identify attractive properties for investment gains, provide the lowest fees in the industry, and offer the lowest cost per night while reducing the investment risk through a model with limited or no debt. We believe that our equity fund model is the smartest, most savvy way to take luxury vacations.
How do Equity Residences’ homes compare to other options?
Our homes compare favorably with those of our competitors. In addition, Equity Residences is unquestionably the best financial investment while providing all the luxury travel benefits offered by the other options. Explore our comparison guide to see for yourself.
How much do I get to use the homes?
Each Partner can reserve one to three weeks of vacation per year – depending on the destination, type of home, 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.
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 $100,000 in rental expense.
Why are the Fund homes rented to non-investors?
Third-party 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.
Rental income in excess of property and fund operating costs allows us to distribute cash dividends.
Many renters have become fund investors.
Renters are high-net worth individuals who are pre-qualified to become Fund investors.
What are my annual expenses?
We give you the flexibility to determine your out-of-pocket expenses
Option 1: Choose no annual fee with a reduction in vacation use
Option 2: Current low annual fee of $2,988
What is the cost per night at an Equity Residences home?
Our business model shows an effective cost per night that ranges from $92 to $480 for luxury vacations that would typically rent for $1,200 to $1,500 or more per night.
Our industry-best nightly cost is attributed to our rental income and our industry-low syndication costs.
Will the homes be available when I want to use them?
Residences are reserved for investors using a personalized reservation process, and our low investor-to-residence ratio ensures ample availability. In addition, investors have priority access ahead of our high-net-worth renters, resulting in limited conflict relative to other models that typically have high member-to-residence ratios.
Explore the Equity Platinum Fund
Equity Residences is redefining vacation home ownership by making them an affordable and financially attractive investment. Our latest offering, the Equity Platinum Fund, includes exclusive residences in Hawaii, California, and Florida—luxury homes that could be yours to enjoy.
Learn more about why the Equity Platinum Fund is both a smarter way to invest and a smarter way to vacation.
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An accredited investor is someone who earned income that exceeded $200,000 (or $300,000 if married) in each of the prior two years, and reasonably expects the same for the current year; OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
