Lifestyle Asset Group Debuts Innovative Collective Ownership Model That Provides Equity in 12 Vacation HomesMarch 25, 2011
Lifestyle Asset Group today announced the next generation of luxury vacation ownership — an LLC that allows 100 participants to collectively own debt-free 12 beautiful residences with an average value of $2.5 million for their use. With a one-time capital contribution of $300,000, each equity owner will enjoy seven years of access to the residences that are booked on a first-come, first-served basis. Equity owners have the option to transfer their interests at any time without penalties or fees.
As part of the Collective Asset Ownership (CAO) model, Lifestyle Asset operates in a debt-free environment by selling interest in legal structures, most often an LLC, as a means to create collective ownership of multiple real estate assets, thereby maximizing security. Lifestyle Asset purchases a collection of residences on behalf of the group then serves as the management company, enabling travel and maintaining the residences for the equity owners. At the end of the LLC’s term, Lifestyle Asset will sell the residences and disburse the proceeds to the equity owners, who may then exit or join another unsubscribed LLC.
Led by CEO Richard Keith, Lifestyle Asset Group was founded by four leading experts in the vacation real estate and luxury travel sector who have over 30 years of combined experience. “Having been a member and CEO of vacation clubs, I was able to, with my colleagues, create a unique model that uses only the best attributes that will be easy-to-use and beneficial for each of our equity owners and their families and friends,” said Keith. “Each of our properties is in a prime location that our equity owners will appreciate and want to return to over the length of the LLC.”