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Complete the form below and receive:
all cash purchase of property
one-time capital contribution per shareholder
annual fees per shareholder
yearly use entitlement per shareholder
*Half shares are $295,500/$7,750 per year/18 nights of use
As an owner of this stunning ski-in ski-out home, you and your family will experience one of North America's most iconic ski towns. Ski Telluride boasts more than 2,000 acres of skiable terrain, a total vertical drop of nearly 4,000 feet and an average snowfall of 309 inches. Add in the pristine snow conditions & no lift lines and it’s no wonder why the skiing defies superlatives. And to top it all off, after a day on the slopes, relax in your ski home’s private hot tub. Telluride is not only a winter getaway — with unparalleled beauty, high-mountain adventure and renowned festivals year-round, it has become the favorite destination for artists, adventurers, celebrities, second homeowners, and free-spirits alike.
Nestled in thick pine and groves of aspen, this 6,163 square foot residence includes 5 beautiful bedrooms, 4.5 bathrooms, and an immense open floor plan. No expense was spared in the design of the extravagant kitchen containing granite countertops, stainless steel appliances, subzero freezer, and wine chiller. An immense stone fireplace welcomes you into a living room surrounded by floor to ceiling windows to take in the sublime views. Other amenities include a private deck off the master bedroom, a wraparound deck with private hot tub, and ski out access.
The greatest advantage of the Telluride real estate investment is the defined exit strategy. Unlike typical fractionals that end up trying to sell at some unknown later date at a material loss of the original purchase price, the Telluride property will be sold at its highest value in eight years. At that time, each shareholder will receive back their capital contribution of $591,000 ($295,500 for half shares), and then rewarded with 1/8th of the net gains (1/16th for half shares) of the property value during the LLC term. While there are no guarantees the value will increase, historic performance in the Telluride area suggests an increase is a very reasonable expectation.
The chart to the right shows the potential growth of your 8 year real estate investment. Even the most pessimistic projection returns your capital contribution along with an equity share that offsets your vacation costs over the 8 year period.
2% appreciation rate for 8 years:
$5,008,844 property value
$626,105 share value
4% appreciation rate for 8 years:
$5,850,633 property value
$731,329 share value
6% appreciation rate for 8 years:
$6,813,701 property value
$852,462 share value
The My Vacation Home LLC is a structure that enables just eight participants to acquire shares in a Limited Liability Company offered by Lifestyle Asset Group with that LLC becoming the legal owner of the vacation home. The eight shareholders collectively hold 100% of the interests of the LLC, which is known as a “Single Purpose Entity” or SPE. In other words, the only asset in the LLC is the vacation property.
Shareholders forward a one-time capital contribution of $591,000 for a full share, or $295,500 for a half share, the funds which are used to acquire the property in all cash. Then, each shareholder only pays their prorated share of the actual operating costs and management fees, which in total is $15,500 per shareholder per year, or $7,750 per year for a half share.
Lifestyle Telluride, LLC is the legal name of the entity that will acquire, via an all- cash transaction this 5 bedroom 4.5 bath, 6,200 sq. foot property in the Mountain Village community. Shareholders of the LLC will be entitled to enjoy the property for approximately 35 nights per year in a very simple reservation process where you are not assigned specific weeks. Rather, you can come and go based on availability. Shareholders can sponsor unaccompanied guests to enjoy the house even when they are not able to go themselves, whether that be a friend or family member, a client or colleague, or anyone you choose.
The term of the LLC is eight years from the closing date, which mirrors the average time most people hold on to a second home. At the completion of the term, the property is sold and the shareholders will first receive back their original capital contribution plus an equal share of any gains in the value of the property that may have accrued over the eight years.
For example, if this Telluride property is sold in 2024 for $5,850,000, the first distribution would be of the return of $591,000 to each shareholder and then the net gains will be shared equally by the eight shareholders, each receiving an additional $140,325, for a total of $731,32.
No and here is the difference: In a fractional offering, there are several weaknesses in the model that create a ton of angst for fractional owners and accordingly, compelled us to do something very different. First, there is simply no demand for the resale of a fractional real estate interest once you decide you want to sell. As the fractional developer earned their margins on the front end of the transaction during the fractionalization process, with markups of 50% or more on the real estate being offered, it is not uncommon for a fractional real estate owner to get back only 30%-35% of their original investment when they sell their share …if they can sell it all.
Although on the surface, our LLC structure is similar to a fractional offering as it does involve eight owners of a single vacation home, creating the appearance of a 1/8th interest, but any resemblance to a fractional product ends there. Shares in this Telluride LLC are offered by Lifestyle Asset Group under Rule 506 (c) of the Securities Act, requiring each purchaser of the LLC shares to meet the definition of the SEC of being an “Accredited Investor”. The SEC defines an accredited investor as a person who is a sophisticated investor with a minimum of $1,000,000 net worth, not including the equity of their primary residence. Under Rule 506(c), Lifestyle Asset Group can only sell shares to those able to demonstrate that they are Accredited Investors as defined by the SEC.
Every commercial fractional project in the United States involves multiple units that are generally identical residences with a typical fractional project offering over 20 residences with 160 or more owners. If you own an interest in a commercial fractional project, you are very likely to stay in different residences each time you go. Telluride LLC, conversely, owns ONE stunning $4.5m residence that only eight shareholders call home. We have departed 180 degrees from the commercial fractional product with hundreds of owners and dozens of residences and personalized it completely. There is nothing like this innovative option anywhere within the real estate ownership market.
The other glaring weakness of a fractional real estate product is the cumbersome, complicated and very structured reservation process. This is a necessary evil when there are 200 owners and 25 villas. As one of only eight shareholders of Telluride LLC, each shareholder chooses weeks that are important to them for the year ahead, in a process where shareholder #1 (by order of Reservation Agreement Deposits received) chooses their first week, then shareholder #2 selects their first week, shareholder #3 picks their first week, and so on until and shareholder #8 chooses their first week. Then, the second week of use chosen by each shareholder is in the reverse order -- where shareholder #8 chooses their second week first and shareholder #1 selects in the 8th position. After these 16 weeks are selected, shareholders can make additional reservations and can do so at their leisure and in real time as the year progresses. Each shareholder will have access to the Telluride home for around 35 nights per year (18 nights if a half shareholder in the LLC).
All eight shareholders pay $15,500 per year for a full share, paid quarterly at $3,875. This covers all operating expenses associated with home ownership: property taxes, insurance, utilities, homeowner association fees, miscellaneous repairs and maintenance, tax return filings for the LLC, etc.
The annual cost also covers all compensation for Lifestyle Asset Group's 24/7 efforts in supporting the shareholders with management, accounting services, reviewing and approving all invoices by the various providers and trades and remitting payment, actively managing the reservation request process and working to refill cancellations by shareholders that cannot travel the dates they reserved and more. Our mission is to ensure that “every moment of vacation is spent on vacation” and that there are no demands on the shareholders for the endless work that comes with owning a vacation home hundreds or even thousands of miles from home.
With ski-in-ski-out access for around 35 nights per year and total annual costs of $15,500 for ownership in a nearly $4,500,000 house, the cost per night is only $442, which is the same cost of a single 375 square foot hotel room at the Peaks Resort and Spa nearby. THAT is the undeniable magic of this My Vacation Home LLC innovation of Lifestyle Asset Group. The advantage of our “Collective Asset Ownership” model becomes quite obvious when considering the important measurement of cost per night. And to the degree that the property increases in value over the term, those increases help, if not 100% offset the annual costs during the term, potentially reducing these expenses even further. Applying the historically increase in value of a high-end property in the Mountain Village community, which is around 4% per year, it is possible the actual net cost per night for a stunning $4.5m, 5 bedrooms, 4.5 bath house could be absolutely free. Should that be the actual outcome, there will be eight very happy shareholders, come the end of the term.
Yes, and it adds tremendous additional value to the shareholders of Telluride LLC. Bottom line: between the owned assets of LifestyleOne, LLC, which is Telluride’s sister LLC and the locations within Elite Alliance, the leading exchange service provider for luxury private residence clubs around the globe, you can exchange your Telluride weeks for travel to over 70 coveted destinations.
To learn more about the four and five star properties of Elite Alliance, visit www.elitealliance.com.
Telluride will admit 8 “full equivalent” shareholders to the LLC and shares are offered at the full share and half share level. If your time at Telluride is likely to be only 15-18 nights a year, the half share interest is perfect. And the economics are very simple: 50% of the full share purchase price and 50% of the full share annual costs.
No debt is permitted within the LLC. In addition to not wanting a bank as a lien holder, an all-cash deal eliminates the cost of debt service as that would sharply increase the annual costs.
The math in the original capitalization of Telluride works as follows:
Getting involved is easy and requires the following steps only:
b) When you move forward as one of the 8 shareholders of Telluride, you will remit by check or wire transfer a fully refundable Reservation Deposit of $10,000 that will be held in an escrow account. Upon the receipt of your deposit, you will be given a priority number, 1 through 8 that will be used in the reservation selection process, as described above.
c) You will receive the Offering Documents of Telluride, LLC which include the Operating Agreement, Subscription Agreement, Reservation and Lodging Rules, and other relevant information associated with becoming a shareholder. If you are not in agreement with any of the provisions of the agreements, you can request a full refund of your Reservation Deposit and it will be returned to you within 72 hours.
d) You can request a tour or a 3 night stay at the property. If the house does not meet your expectations or your personal interests, your deposit will be refunded.
e) Following the approval of both the Offering Documents and the tour of the home, you will receive a funding request for the balance of the Telluride LLC.
That’s it. No surprises, no risks, no pressure.
Complete the form below and receive:
If you wish you could invest in both Telluride and Hawaii, you can. Karla can tell you how.