In the making of our collective ownership model, having a well-defined exit strategy for your real estate investment was paramount. It is our strongest response to every investors chief concern of mitigating risk. This provides you with a clear answer of when your capital contribution is returned, real estate assets will be sold, and possible gains in appreciation distributed.
The term of each LLC is seven years. We arrived at this not with a nod to the proverbial seven year itch, but that it mirrors the average length of vacation home ownerships in the U.S.
At the end of seven years, there is an orderly wind down of the LLC:
Lifestyle Asset Group receives 10% of appreciation, but only if there are gains. Our chief aim is to put your money back in your pocket at the end of the seven year term and we will not participate in the proceeds unless there is profit. This is in sharp contrast to most other investment funds where the management team takes 20% no matter what the loss or profit.
Of course there is no crystal ball when looking ahead at what the future worth of your real estate investment may be. Yet we can tell you that for the owners of LifestyleOne LLC, in just the first 12 months, have realized more than a 30% appreciation in their LLC’s properties.
Chances are that that level of gains won’t be sustained every year for six more years. To give you an idea what your LLC’s net gains in your portfolio could be given much more modest appreciation percentages, simply contact us and we’ll send you an appreciation chart.