Equity estates: Invest in your vacation

October 23, 2016 09:00 AM
Americans aren’t taking vacation days.

Americans aren’t taking vacation days. According to Forbes, only 25% of Americans use all their paid vacation days. Even more concerning, 42% didn’t take a single vacation day last year. Why? It all comes down to some form of fear. Employees are afraid of falling behind, letting team members down, being judged by their coworkers and bosses, and even of losing their jobs.

Equity Estates, which offers a private fund for accredited investors to own and enjoy a portfolio of vacation residences, is offering the gentle push you may need to take some time off.

Equity Estates Fund II is a Luxury Residence Fund that offers a diverse portfolio of vacation residences for the private use and financial benefit of its members who own an equity interest in the portfolio. Owner Members (investors) enjoy the unique dual benefits of vacationing at some of the world’s most desirable beach, mountain and metropolitan destinations, while also participating in any appreciation on fund investments.

“It’s becoming a trend where investors are deciding to go with us instead of purchasing their own vacation home,” says a spokesperson for Equity Estates, which is celebrating its 10-year anniversary this November. “It’s got all of the benefits without any of the hassles.”
After investing in Equity Estates, you will have an allotted number of nights to spend at more than 60 luxury residences located all over the world. This holds you accountable to travel and may be the gentle push you need to take that time off work.

The portfolio includes residences from sprawling mountain villas to magnificent oceanfront homes, located in 13 countries across four continents. Offering beach locations in places such as Ibiza, Spain; Kauai, Hawaii and Miami Beach; and city locations in Chicago, New York and Paris, there’s a great chance you will find your choice of location for investing and vacationing. There are also leisure locations in Napa Valley and Western Cape, Africa; and mountain residences in Lake Tahoe and Whistler, Canada.

Equity Estates’ unique model allows you to invest in a portfolio of luxury real estate, using $2 million to $4 million private residences for outstanding vacations that gain financially as the properties themselves appreciate. Hence the company’s tag line: “Appreciating luxury residences.”

When you become an Equity Estates investor, your vacation dollars go to your vacation fun and to your luxury residence fund, according to the company.

The “Investment Return” chart illustrates the results of investing $2.4 million under various scenarios and against the stock market. The results show that a 30-night Elite Equity Estates Membership Interest provides a superior internal rate of return than either purchasing a $2.4 million vacation property or investing all $2.4 million in the stock market and renting homes for vacation, when using an assumed 7.5% home and stock market appreciation assumption. 

The Equity Estates Fund II is currently open and offering membership interests — the fund offers Executive, Elite and Advantage membership interests that come with an annual allotment of 15, 30, and 45 nights of usage in its portfolio of luxury homes, respectively.

A typical residence is located in a sought after beach, mountain, leisure or city destination convenient to area amenities, attractions, and airports. Residences vary in cost from $1.5 million to $4 million and range from two to six bedrooms and 1,500 to 7,000 square feet.

Atlanta-based Equity Estates has carved out a niche within the sharing economy, which allows its investors to combine luxury vacations with a smart, diversified investment in real estate. The company is well-positioned to capitalize in both areas through its Luxury Residence Fund, Equity Estates Fund II, LLC, which caters to high-net worth individuals. 

In addition to vacationing in a portfolio of private homes, investors have exclusive access to unique travel opportunities in luxury destinations several times per year. The 2016 schedule included itineraries to the Galapagos Islands by private yacht and a bespoke safari in Botswana. The 2017 schedule will be released following the successful subscription of Equity Estates Fund I, which has assembled an impressive portfolio of luxury vacation homes starting at $2 million in the most sought-after destinations around the globe.

“Success is measured by return on investment and return on living. We take pride in designing inspired experiences that create lifelong memories,” says founder and CEO, Philip Mekelburg. 

Investors receive an ownership interest in a portfolio of luxury homes with a clear path to liquidity, and will capitalize on a divestment plan, which will begin in 2025. Thereafter, investors will recoup their initial contribution plus the lion’s share of the appreciation earned. In effect, investors could benefit from five-star concierge support and are cared for by a trip planner and an onsite local host who handles everything from making recommendations and booking tours to stocking the fridge.

Equity Estates provides more interesting dividends than your typical equity investment.

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