Ownership has its privileges. Browse the below FAQs and if you have additional questions, feel welcome to reach out to our Investor Relations team at firstname.lastname@example.org or call us at 404.445.8501.
Equity Estates is an investor-owned luxury vacation fund that offers you the smartest way to own and enjoy luxury vacation homes around the world. Property management and maintenance are included, along with personal concierge and travel-planning services to enhance your Equity Estates experience. Our investors enjoy all of the benefits of owning luxury vacation homes without the headaches.
No, it’s actually quite different. Our investors enjoy a defined liquidity event, so at the end of the fund, we sell all of the homes, pay you back first 100% of your initial capital contribution, and then 80% of the profits. With timeshare properties, it is usually difficult to recoup your initial investment, let alone any appreciation.
The price per square foot of timeshare properties are typically a fraction of the value of an Equity Estates residence. It’s a completely different ballpark—think Orlando hotel versus a private villa estate. With a timeshare, you are generally limited to one destination for one specific week each year. If you want to stay somewhere else, you have to trade or exchange your week, which is often time-consuming and difficult. In addition, timeshares rarely offer any real appreciation potential. They are typically one-to-two-bedroom units, priced two or even three times greater than the actual value of the underlying real estate, with little to no personal concierge support.
At Equity Estates, investors enjoy a diversified global portfolio of spectacular private homes that average around $2 to $5 million each. They can reserve any of these homes, with no fixed weeks or nightly minimums. And enjoy our personalized five-star concierge service, which makes every trip a truly memorable experience.
We expect Fund IV to have eleven to twelve residences in highly sought-after resort and metropolitan destinations. We are long-term, buy and hold managers. Beginning in 2031, we expect to begin selling all of the residences that we own and distributing the proceeds. However, investment interests can be sold any time after a twelve-month hold if an investor would like to liquidate early.
An Advantage investment interest comes with an allotment of 45 nights, an Elite investment interest includes 30 nights of usage per year, and an Executive investment (one-half interest) includes 15 nights of usage per year. For most of the homes there are no minimums for the number of nights used on a trip, however, we respect all local requirements enforced by associations or others such as a minimum of three or seven nights at a time. Nights can be reserved on short notice, or as far in advance as an investor wishes. There is no rotating or floating calendar system.
Each destination offers a variety of activities — golf, spas, beaches, skiing, hiking, fishing, sailing, equestrian activities, and more. Privileges vary by destination and may include access to resorts and private club facilities. Accommodations are luxurious with five-star concierge services provided by Equity Estates’ Personal Travel Concierge and Local Hosts. These professionals are available to facilitate your trip as well as offer on-site support services. Support services include, but are not limited to: researching and procuring the best transportation options; pre-arrival grocery shopping; making dinner reservations, spa appointments and/or golf tee times; procuring ski passes, concert tickets, and access to other events; and arranging for babysitting service and/or activities for children. Each residence is equipped with rainy day activities and games for kids and adults. Whatever you want, whatever you need, all you have to do is ask.
Much like private golf clubs, Equity Estates deliberately underutilizes its assets to ensure accessibility. If all of our investors use all of their allocated nights, the residences are only occupied for 57% of the year. So the homes sit empty for a little less than half the year so our investors can use them when they want. Our member-to-property ratio is based on an average of no more than seven full investment interests per property (7:1).
To give fair access to all investors, Equity Estates conducts lotteries twice a year for holidays. Due to our low investor-to-property ratio and the fact that many families already have annual plans during times like Christmas or Spring Break, Investors will typically get one of their top choices for holiday travel.
Absolutely. Ownership can be held in an individual’s name, couple’s name, or a legal entity such as an LLC or family trust, with a designated representative. Unaccompanied guests over the age of 25 may enjoy the homes and will be treated with the same exemplary concierge service that members enjoy.
Equity Estates’ maintenance standards are extremely stringent. We understand and have budgeted appropriately for the upkeep and maintenance required to maximize appreciation of our luxurious assets. There are periodic inspections by our experienced property managers and Local Hosts, as well as feedback from Investors that guide necessary repairs and preventative maintenance.
New properties may undergo a design review by our design firm to assess needed alterations. Equal attention is given to interiors, exteriors and landscaping in order to keep the properties up to Equity Estates’ standards.
Over the 20 years running up to 2007, the resort real estate market had grown at a compounded rate of over 10% per year. Inflation can play a significant factor as well, and real estate investors have long thought there is no better hedge against inflation than real estate. Considering these factors and the liquidation timeline for Equity Estates funds, we believe there is a great opportunity to do well.
Fund I investors are looking forward to 2021, when the fund will begin to sell off all the homes and share in any profits. Prior to that, Fund I investors can sell their membership interests to any qualified buyer. Fund II investors can get liquidity after twelve months of ownership and their liquidation will commence in June 2025. Fund III investors can get liquidity after twelve months of ownership and their liquidation will commence in 2029. Fund IV investors can get liquidity after twelve months of ownership, and their liquidation will commence around 2031. None of the funds are designed for short term “flip” investing, and each fund’s private offering memorandum should be reviewed carefully to understand the secondary market limitations.
Yes, you can use residences in other Equity Estates Funds, as well as the homes of our reciprocity partners.
We are here to help. Feel free to call us toll‑free at 1‑800‑413‑3340 or email us at email@example.com. We want to hear about your needs to help determine if Equity Estates is a good fit — click below to answer a few simple questions, and one of our Investor Relations Specialists will reach out to you shortly.