FAQ
The Platinum Fund has the ability to make a capital call up to 15% of initial subscription amount. Has there any call made in the history of the fund and is there any residual risk that the Platinum Fund will make such a call?
No, we have never made a special call for either the EVF or the EPF, even during the pandemic. We don’t foresee such a risk for the Fund. We have insurance for natural disasters and we don’t see any reason we should have a special call. It’s something our lawyers had us put in the PPM for the unknown.
How are the house furnishings treated in the business? An asset?
The furnishings are assets that are depreciated over the lifespan of 7 years.
Have there been any home sales? What were the circumstances?
Yes, in the Equity Villa Fund, not in the Equity Platinum Fund 2.
Were there special assessments? Are there any circumstances in which special assessments could be incurred?
There has never been a special assessment for either fund. We don’t have specific scenarios where there would be one. The special assessment is capped at 15% of your investment.
What is the dividend history of the Villa Fund (if any)?
Investors can opt to take dividends in lieu of vacations. The fund paid 4-6% cash dividends.
What is the dividend history of the Platinum Fund (if any)?
None so far.
Does the annual Report to Partners include property appraisals?
Those can be seen in the audited financials.
What is the current outstanding debt on the portfolio (is this guaranteed at the property level)?
We operate with no debt.
Do you have a schedule of the purchase prices + improvements (ie. invested capital) for all of them? Year of investment, and then the current valuation?
Yes, all those values are covered in the audited financials for the EPF2. EPF2 does not have homes yet but we will share the reports once they are available.
Question about performance in the Villa fund: I am curious to see the numbers from a couple of properties that have already sold: can you highlight the rough financials on two of the properties? For example, property A was purchased for 3.1M in 2010, improvements/operating amounted to 1M, sold for 5.5M in 2020.
We sold 5 residences in the Equity Villa Fund for different reasons and returned 48% of the original invested capital to the EVF investors to date.
The EVF has been paying dividends in the 4-6% range.
EVF is scheduled to liquidate the remaining homes in 2026.