FAQ

01

Do my annual operating fees increase each year?

We have not raised annual operating fees for our partners in the Equity Platinum Fund or the Equity Villa Fund, even during the pandemic. We have the rental income to thank for that and the increased rental rates across our portfolios.

02

Can I see a full calculation of fees I would pay out of pocket every year when I join?

Calculated at the 2023 rental rates. The calculation includes local short-term accommodations taxes and rental platform fees, all fees applicable to renters. Investment amounts are based on standard pricing.

Number of annual credits to book homes with 300 credits
Standard investment: $437,000 at the 300-credit level
Your annual operating fee is $9,900 and, let’s assume, you make 4 visits a year to properties and pay $2,930 in visit fees per year. Your total out-of-pocket for the year is $12,796 while your vacation market value is up to $54,107. We can give you a full breakdown of your fees and vacation value depending on your individual level of investment and travel.

Cap Cana – November $11,153
Vail Presidents week $13,906
Spring break St. John $15,999
Bahamas July $13,049
Total value: $54,107

Your out of pocket fees: $12,796

Other credit level calculations

Number of annual credits to book homes with: 210 credits
The investment amount: $327,750.0 at the 210-credit level
Your annual operating fee is $ $6,930 and, let’s assume, you make 2 visits a year to properties and pay $1,198 in visit fees per year. Your total out-of-pocket for the year is $8,128 while your vacation market value is up to $30,622.36. We can give you a full breakdown of your fees and vacation value depending on your individual level of investment and travel.

Vail- New Year $20,892.60
Poipu Kauai – Spring Break $9,729.76
Total value: $30,622.36

Your out of pocket fees: $8,128

Number of annual credits to book homes with: 120 credits
The investment amount: $218,500 at the 120-credit level
Your annual operating fee is $3,960 and, let’s assume, you make 2 visits a year to properties and pay $1,498 in visit fees per year. Your total out-of-pocket for the year is $5,458 while your vacation market value is up to $24,230. We can give you a full breakdown of your fees and vacation value depending on your individual level of investment and travel.

Costa Rica – Thanksgiving $12,281
Cap Cana – Spring Break $11,950
Total value: $24,230

Your out of pocket fees: $5,458

03

What is your current debt level?

We carry no debt or leases to maximize investor returns and invest over 90% of what we raise into real estate.

Please watch this VIDEO to learn more about our current debt level.

04

What is a syndication fee and how much is it?

A syndication fee is a fee for marketing, sales, and legal expenses. It’s capped at 7% and what we don’t spend we return back to the fund to acquire homes.

05

Is GP carry on a property basis or fund basis?

Fund Basis.

06

Are there other fees that the management collects in addition to the annual operating fee?

The annual operating fee is paid to the fund you are an investor of, not to the sponsor. These nominal fees are used to offset the costs of operating luxury vacation homes. There are also visit fees that cover cleaning and property set up. The fees range from $295 to $1,395 per your stay and are paid to the fund directly.

07

Is there a disposition fee to the sponsor other than the 20% profit participation?

No.

08

Is there an acquisition fee to the sponsor?

Not to the sponsor. There is a 1% acquisition fee to the EAPM (an in-house property management company) but it’s offset by the referral fees received when acquiring a property.

09

How much is the annual management fee(s) collected by the sponsor?

2% on the funds under management. The fee is included in your annual operating fee and is not a separate charge.

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An accredited investor is someone who earned income that exceeded $200,000 (or $300,000 if married) in each of the prior two years, and reasonably expects the same for the current year; OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

contact us

La Jolla, California, 51310 Padberg Valleys

Tel: 283-741-8326

Email: equityresidences@gmail.com