Take a look at this group and give me your thoughts. I just ask you keep an open mind.

Sure there are other avenues to earn more $$ in RE but this model looks very intriguing.

https://equityresidences.com/

Seems like a timeshare scheme marketed more hedge fundy.

Is this your job? Are you trying to find people to buy in? Or did someone approach you with this, and you want opinions?

ATM9000 said:

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Seems like a timeshare scheme marketed more hedge fundy.

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It's more of a standard crowd sharing RE investment model.

You are "investing" (giving someone else money) so that they can buy and lease vacation properties. The promise to pay you a nice return and allow you to stay in the places you invest in.

Similar to Fundrise in basic structure I would assume.

It's not a bad idea in theory. These seem about a dime a dozen these days. There's a lot of details I'd like to know about. Primarily, is your money liquid or returned based on some arbitrary discretion of theirs?

Ha ha, no its not "my job." My brother bought into a property from Pacaso and it got me researching similar options out there.

With the returns, etc this seems like a better deal to me-and you are not stuck with the same property to visit.

Ok.. here's the meat..

- 10 year property hold period.. sounds like this is a fund and your money is tied to this timeline. Might be wrong.

- At the end of the period they sell the property and return your investment plus 80% of profits. They keep the 20%. Very standard waterfall model for typical GP/LP equity setup.

- Cash on cash during the 10 years is based on them making enough to have distributions, and returned pro rata (based on your % of the total equity).

- You can have 3 weeks of vacation with apparently no blackouts. They say free of cost but I assume there are fees somewhere.

Found the fees!

You get two options..

Option 1: no fees, reduced vacation usage
Option 2: $2,988 annual fee, no vacation reduction.

Wow. So not only do you invest a significant amount of money (which is not risk free. If they fail, you lose), but you are still paying for $3k worth of vacations or likely only getting a 1 week vacation.

Hard pass. There are many many other RE investment avenues that aren't as gimmicky.

Get rid of the fees and you might have something.

Confirmed it's a fund.

Minimum $161k per investor. Illiquid 10 year investment (not a hard line in the sand, they reserve the right to shorten or extend the timeline at their full discretion), you still have to pay $3k in fees. The first 2% of your yearly cash return merely recoups your fees.

$3k a year for three weeks of vacation in those baller properties seem like a steal to me. Although I am used to stuffing my family of 4 into a small room at a Marriott. Got to be honest, it kind of sucks.

BoDog said:

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$3k a year for three weeks of vacation in those baller properties seem like a steal to me. Although I am used to stuffing my family of 4 into a small room at a Marriott. Got to be honest, it kind of sucks.

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Go for it then! If the risk is worth the reward to you, then it sounds like a decent deal.

im not a financial wizard or anything, but i feel like there are much safer ways to park 160 grand.

especially if you are the kind of person that has to stuff your entire family in to a single hotel room.