Mammoth Residence Fund

The Mammoth Residence Fund is a real estate private equity fund that enables investors to own luxury vacation residences in Mammoth Lakes, California for long-term capital gains. The residences are located in Southern California’s premier ski resort near Meridian Blvd and Minaret Rd in the private, gated Obsidian development. As Limited Partners and equity interest holders, investors own the Fund residences and have a long-term interest in the homes’ expected appreciation. In addition to financial returns through appreciation, investors enjoy “rent free” vacations at these luxurious resort homes. The annual vacation savings create a lifestyle dividend and preferred return on the investment. Acquisition, management and disposition of the homes is handled for you by the General Partner, so investors can focus on enjoying time spent with friends and family.

Timeshares are typically a points-based or right-to-use, one-week product that are, in essence, a pre-purchase of future vacations. They depreciate dramatically upon purchase due to the extremely high marketing and sales costs imbedded in the price. Even at drastically reduced prices, resale options are very limited. Fractional ownership, including private residence clubs, does not provide a coordinated liquidation event. After project sellout all owners are responsible for their real estate sale and are competing with other fractional owners in the resale market. Many private residence clubs prohibit rentals that could help defray carrying costs. Most destination clubs are not equity investments. They sell a right-to-use membership requiring a significant deposit that is usually backed by the company’s promise to return a stated percentage of the deposit (often 75%). The deposit may or may not be secured by real estate assets. The only resale option is through the destination club company, which is highly motivated to sell company-owned memberships, not the members’. The annual membership fees of most destination clubs are considerable and do not provide a significant savings over rental of luxury homes. We’ve found that, on average, vacation homeowners use their second homes for 30 days or less out of a year but are burdened by annual maintenance, management and holding costs. If homeowners decide to rent their house, there are property managers and renters to deal with requiring extra time, effort and maintenance costs. The Mammoth Residence Fund provides second home ownership while eliminating all the hassles and most of the expense. The Fund will own and operate its real estate investments with a high probability of appreciation during the 12-year “hold” period. Like other real estate, it is possible to sell your Fund Units through a transfer, potentially at an appreciated price. Since we are a partnership, there is no ‘middleman’ structuring the transaction and requiring its own return on investment.

The value of your Fund vacations will far exceed the expected return of other low-risk real estate investments or expected returns from the equities markets. In addition, the vacation value is tax deferred, as opposed to using after-tax income to pay for vacations.

Our Equity Platinum Fund and Equity Villa Fund own homes in multiple destinations and are focused on investors who want to diversify their travel. The Mammoth Residence Fund is focused on investors who prefer Mammoth as a frequent destination, want to make an investment that will grow in value over time, and don’t want the responsibilities of second-home ownership.

The limited partnership structure allows investors to share ownership in the real estate with title held by the LP. In addition, the partnership structure limits the liability of investors with respect to the debts and obligations of the partnership, while providing an optimal tax structure for flow-through partnership gains and losses. The Fund will alternately use a Delaware Statutory Trust to accommodate 1031 tax deferred exchanges if investor demand warrants it.