We invite you to learn about our strategic partnership with
Lifestyle Asset Group, an industry power player offering shared ownership of luxury vacation homes.
Since 2013, Lifestyle Asset Group brings innovative buying partnership opportunities to top luxury second home/vacation market destinations. Lifestyle Asset Group is a pioneer in a proven real estate model where a small group of like-minded investors collectively own a luxury vacation home.
This is not a timeshare or fractional offering.
This is a luxury vacation home partnership; an affordable and sound investment model that is changing second home ownership for the better.
Hawaii's luxury second home market holds a strong appeal to potential buyers, yet many see whole homeownership as a barrier, especially for properties in the $5 to $10 million-plus range.
Many buyers would like to own a luxury home in Hawaii, but they only use it partially and they would love to only pay for it partially.
Fractional ownership tried to solve this problem, but Lifestyle Asset Group has found a better way for you to own your vacation home in Hawaii.
Through their proven real estate partnership offerings, like-minded partners can share ownership of a magnificent Hawaiian vacation home debt-free, each investing just a fraction of what it would cost to own it outright.
"Buyers looking to invest $5 million can now co-invest with similar buyers to purchase a share in a $20 million home with four potential co-buyers looking to invest $5 million each. We're anxious to present options like this to our clients."
- Chuck Garrett, Corcoran Pacific
VP of Brokerage Operations.
The features of the vacation home partnership model are:
Zero-hassle ownership and five-star personal travel and concierge services
A Limited Liability Company (
LLC) is created to purchase a single vacation property.
A limited number of investors are admitted to the
Investors' capital contributions are 100% secured by the property which is acquired in an all-cash transaction
No debt is permitted within the
LLC for risk mitigation
Ownership costs and personal usage are shared based on the percentage of ownership each investor holds
Investors have voting rights within the
Both fixed and rotating reservation protocols so you can better plan your vacations each year.
Reciprocity privileges to sister
LLC residences and membership into Corcoran Alliance for endless vacation exchanges: www.elitealliance.com
Defined exit strategy in 8 years with no resale obstacles. At the end of the
LLC term, the property is sold at the highest possible value, all initial capital contributions for the acquisition are returned in full and net appreciation is shared by the investors based upon their equity ownership level.
How It Works
1. The seller gets the opportunity to open up the sale of their property to a much larger group of buyers. There are undoubtedly more buyers that can justify allocating $1,000,000 for a second home in Hawaii than there are those that can justify buying a $6,000,000 property.
2. The seller can keep a share of the property and continue to enjoy their property with friends and family.
3. There is a limited number of partners (about 8-10, but some properties are as little as 4-5 owners).
Here is how it works:
On-boarding a property. Once the property meets certain criteria such as location, condition, price, amenities, etc. Lifestyle Asset Group will bring the home to market as a shared ownership offering.
The legal structure. Lifestyle Asset Group will create a Single Purpose Entity (
SPE) Limited Liability Company ( LLC) that is organized for the sole purpose of becoming the buyer of the property.
Use of an existing
LLC. If the property is already held in an LLC, we can simply admit new investors/members to that existing entity. If it is held personally, a new LLC will be created.
The purchase price. One of the key benefits for the seller is that the
LLC will get very close to full ask price on your home. Investors place immense value in the opportunity to own an interest in a stunning home in Hawaii for a fraction of the price.
Selling the shares. The shares in the
LLC are promoted through Lifestyle Asset Group's multiple marketing channels as well as a highly collaborative co-selling relationship with Corcoran Pacific agents. All LLC shares are sold as securities, which means that we shares can only be sold to an "Accredited Investor" which is defined by the SEC as a person with a net worth above $1,000,000, not including the equity in their primary home, OR, a person with an income of $200,000 or more for the two years before the purchase.
Example of a six (6) share Offering. Each of the members of the LLC would own a 16.66% interest in the entity (and accordingly, the underlying asset). They would make a one-time capital contribution to the LLC to acquire the home. Post-closing, each member will incur 16.66% of the annual operating costs. Their allocation of time to enjoy the property with family and friends would be approximately 8 weeks per year in areas where renting is permitted, an investor can also opt to rent a portion of their allocated use to reduce their annual expenses. Lifestyle Asset Group will manage all rentals seamlessly to our investors.
Owner Retaining an
LLC share. By retaining one of the 6 shares, the owner/seller is also afforded 8 weeks of personal use as noted above and would only pay 16.66% of the annual operating costs, post-closing with the new investors incurring 83.33%.
Timing: When we have sold out the available shares in the Offering, which take anywhere from 8 weeks to 6 months, we will schedule a closing that is usually 3 weeks after all investor funds are received in the escrow account. At closing, should the seller choose to retain one of the 6 shares, the seller would be paid 83.33% of the purchase price in cash and hold a 16.66% interest in the form of the one share you retain.
LLC: post-closing, Lifestyle Asset Group manages all affairs of the LLC, from reservations to supervising the property management team, and all accounting, ensuring the 6 members of the LLC have nothing but memorable and hassle-free vacation experiences.
How It Works
Buyer & Seller
Our dream vacation home, an ideal way to own!
"My family and I have always had a goal to own a luxury second home in Hawai'i. Year after year, I was put off by the costs of investing in a home that I may only use a few weeks a year. When I learned that I could own a piece of my dream home on Kauai through Lifestyle Asset Group's innovative luxury real estate partnership structure, where the acquisition and operating costs are shared by the partners, I was blown away. It is the perfect way for my family to own this stunning resort-style home."
Dustin Hansen, Investor - Hawai'i
Lifestyle Asset Group is a dream come true!
"Having multiple investors is a smart idea for buyers who only spend a limited amount of time here. For me as the seller, it's easier to find a small group of individual investors to buy a five million-plus property than just one buyer."
Paul Aniboli, seller/owner, Villa Nonna, St. John,
Their business model just makes sense!
"We reached out to Lifestyle Asset Group because their business model just makes sense after years of being a single owner. With a six-bedroom house and after 18 years of being the point person for the property it's time for us to sell a majority stake right now. We want to travel yet we will retain a 15% share in the property."
Kim Ellsworth-Evans owner of Villa St. John with her husband Bud
Lifestyle Asset Group provided the perfect solution to my problem!
"I am a seller of my property here on Maui and have chosen to retain a percentage of ownership through Lifestyle Asset Group's model. They have provided the perfect solution to my problem: significantly reducing my cost of ownership while continuing to enjoy my property with my family. They have a proven shared ownership model that has been successfully implemented and followed for the last five years and I encourage anyone looking to buy a second home in Maui to first consider their partnership opportunities."
Ed Krafchow - Maui Resident/Homeowner, Former CEO and Co-Owner Prudential California Realty
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