Frequently Asked Questions
Agents are paid a real estate commission of 3% of their buyer’s purchase paid from the buy side of the real estate commissions at close.
Lifestyle Asset Group handles everything. Once we assemble the group of Real Estate Partners, we close 7-10 days later. You as the agent do not have to do anything, LAG handles all the details.
We will not steal your client. We provide your own custom website, email tracking, and real-time activity alerts so your referrals are recorded and credited to you automatically on a daily basis making it simple for you to partner with us.
Our company success is built on forming partnerships and adding properties to our model. We have absolutely zero to gain by mishandling an agent’s prospect. Our goal is to work closely with agents and we will never mishandle an agent’s client or prospect in anyway.
We strive to be a partner with you and we have an excellent track record with agents.
As an active agent, you have many prospects that are looking for a buying opportunity like this one. They are constantly being marketed from other agents in other vacation destinations with models similar to ours. This is your opportunity.
While the majority of second homes are purchased as whole ownership, Lifestyle Asset Group’s partnership model appeals to those buyers who desire to have a vacation property but simply can’t justify taking on 100% of the expenses while only enjoying the property 10% of the year.
This is not an “or” proposition, but a way for you to convert prospects that may never buy in the traditional sense.
Furthermore, our experience is that when we send out this innovative opportunity to buyers, we do get response from buyers looking for traditional real estate purchases. This is another communication point for you to exhibit your knowledge of the market and innovative ownership concepts.
We can provide you written emails for you to simply cut and paste, branded landing pages for specific properties and on-going marketing support through social media.
We can contact your buyer if you want us to or schedule conference calls with you and the buyer. Again we don’t want to take over that relationship. We are experts in our model and through our experience can answer any questions or concerns. But you are the expert with your client.
If we subscribe the property in our program, you will receive either your listing commission or referral fee, plus commissions on any buyers you bring to close.
We all have owners that have significant equity and consider selling from time to time. But they like using their house and if they sell they just would have to buy another. We call these folks “reluctant sellers.” They are interested in reducing their cost of ownership and/or cashing out some equity in their home, while still maintaining their enjoyment of their vacation home.
We can sell up to 7/8 of their house in our program. They get to cash in, you get the sales side commission, and the owner gets to keep using their house while we manage it for them!
This creates a sale for you immediately and makes for a very happy seller.
What if as an agency, we have 4 clients all interested in the partnership, but all the LLC shares are not spoken for and the closing never happens? The 4 interested clients just have to wait, and wait until more people come in or after a certain time they just lose interest? How does Lifestyle Asset Group handle that?
We have to raise the capital to reach the purchase price to close on the property…..and that capital has to come from the partners.
That said, if the property has a seller that is staying in the partnership, then we approach the seller and tell them we have 60% of the capital raised and would like for the seller to consider a Phase I closing.
What a Phase I closing means is the seller accepts 60% of the purchase price right now, allows the LLC to take ownership, and the seller becomes a partner in the LLC, like everyone else, but with a 40% position.
The partners can start enjoying the home immediately, the agents get paid their commissions because a closing occurred, and we sell the remaining shares still owned by the seller post-closing, or what we call Phase II.
The seller wins with a Phase I closing because he/she is no longer responsible for the upkeep and maintenance. He or she is only paying 40% of the total expenses, not 100%, and they can continue to rent out their allocation of weeks for rental income if they like.
If the seller has already decided to keep, say, 20% of the house, then we only have 20% more to sell (or 8 weeks) which is easier to do in Phase II because we know have control of the house and can host 3-4 night discovery stays. We do well-closing deals when we allow the potential partner to stay in the house for a few nights.
Alternatively, if the seller does not want to stay in the partnership and is waiting for a 100% payment to close, then we have no choice but to wait until we raise all the capital. To solve that, we go back to the 4 partners that are in the deal, ask them to buy up the remaining shares, and we agree to resell their shares after closing, with a profit. That works well too.
Nothing good happens with time in these situations so if we have 4 of the 6 partners ready to go, we figure out a way to close and not risk losing those partners.
“The Lifestyle Asset Group ownership model makes perfect sense for our high-end properties. Being able to invest in the specific weeks you want and share maintenance and operating expenses works perfectly for a luxury vacation home. Not having to pay for the entire home plus annual costs appeals to our buyers.”
Co-Owner of Today Realty
“This allows an investor to own an equity percentage in a $6 million property for as little as $200,000. Most families are very busy and no longer have the time to spend ten weeks on the Vineyard. Two weeks is perfect for them which is why this form of ownership is so desirable. The seller was impressed by the innovation of the business model. He loves the house and is retaining a percentage ownership.”
Broker with Wallace & Co. Sotheby’s International Realty
“Having been in the real estate industry for over 30 years I have been very reluctant to endorse any real estate product such as timeshares. Lifestyle Asset Group is not selling timeshares. It follows a direct process of ownership of the property through an LLC structure. That LLC owns nothing other than that particular property that the LLC owns and manages. This is a company that has a model that it has successfully used and follows rigorously for the last five years. Lifestyle Asset Group has multiple properties and is on a managed growth trajectory. The management team is knowledgeable about the local environment and uses a credible approach to offering these properties as a shared ownership model.”
Former CEO and Co-Owner Prudential California Realty
President and Owner Mason-McDuffie Real Estate
2012 RISMedia Real Estate Leadership Award Recipient
“With this new platform available through Lifestyle Asset Group, we easily showed buyers how to look at purchasing from a different perspective where they are only investing a fourth or sixth of the purchase price which makes perfect sense on several levels. You are only paying for what you are using in time and operating costs. The defined exit strategy on how long the LLC will hold the property is an additional reason why this makes perfect sense for our market. We see this as a real game-changer for our company that as sales director I can see 100% of my advisors selling listings with the Lifestyle Asset Group platform,”
Sales Director at Engel & Völkers | Snell Real Estate.
“What Lifestyle Asset Group brings to the luxury real estate market in Cabo is a true game-changer. Given the requirement here in Cabo for a U.S. or Canadian buyer to purchase a second home in all cash since no traditional financing is available, that requirement keeps the vast majority of would-be buyers firmly on the sidelines,” observes Lemke. “With the innovation of Lifestyle Asset Group’s real estate partnership option, buyers can now own an interest in an extraordinary Cabo villa at a fraction of the cost and enjoy exactly the amount of time here in Cabo they seek. I believe this will open up the floodgates for would be Cabo buyers who have been waiting for something like this for years,”
Partner at Engel & Völkers | Snell Real Estate
“I’m excited about the innovative business model that Lifestyle Asset Group has developed and used successfully for five years. It’s the perfect solution for buyers who want to own a luxury vacation home in Hawaii but will likely use it for a limited amount of time each year. The ability to share in the acquisition and operating costs is very appealing to them. It is also a great option for sellers who wish to retain an ownership stake in their home, or have been unable to attract the solo buyer in a traditional sale” The exit strategy in place is huge for buyers. They know when they will get their initial investment returned, plus their share of appreciation”.
Real estate agent partner in the Hawaiian islands.
“This works for a significant number of luxury properties on the Cape. We have sellers who spend little time here year-round yet maintain these costly properties. While potential buyers who love the Cape won’t buy a multi-million home only to spend maybe four to six weeks, a year here.”
Top Producing Cape Cod, MA agent