Equity Residences, the innovative private equity fund, has rolled out a limited-time offer for accredited investors who want to test their new Equity Platinum Fund, before committing to a full investment.
A typical, fully-vested Platinum Fund investor commits $236,250 to the fund for 10 years. This constitutes a 1.5-unit investment that provides two to five weeks of luxury vacations a year, depending on the size and location of the homes they reserve. At the end of the 10-year hold period, the Fund properties are liquidated and the sale proceeds including significant anticipated appreciation are distributed to the investors.
Now, investors who are interested in the Platinum Fund can try before they buy.
How the Trial Investment Works:
Investors who want a risk-free trial before fully committing to the Platinum Fund put down 10% of the anticipated investment amount. They participate in the reservations process and enjoy the Fund’s luxurious homes just like full investors. They also receive bonus Elite Alliance or Third Home credits, allowing them to travel with Equity Residences’ affiliates.
At the end of the trial period, investors either fund the full investment balance or walk away from the non-refundable deposit after experiencing vacations valued at significantly more than the deposit amount.
10% down on $236,250 equates to a $23,625 deposit. Trial investors receive two to five weeks at fund homes and a week at a Third Home or Elite Alliance residence. As you will read below, the value of the available vacations exceeds the deposit amount.
The minimum Equity Platinum Fund investment is $157,500. At this level, a trial investor commits to a $15,750 non-refundable deposit and receives two to three weeks of vacations.
Let’s break down a usage scenario using fictional Equity Residences investors Sandy and Matt (who are modeled after actual Equity Platinum Fund investors.)
Sandy is an independent marketing consultant in New York. She has a husband Matt who co-founded a tech company. They live in Westchester County where they are raising two children. They have thoroughly researched Equity Residences and the Platinum Fund. They have concluded the $236,250 investment could be a prudent financial and lifestyle investment but they want to be sure Fund vacations meet their needs and expectations.
Sandy and Matt like to travel and can work remotely. They can book trips on short notice to travel as a couple, as well as book longer-lead-time trips with extended family and friends. They like to explore international destinations and want to take every opportunity to see the world.
Our new investors want to surprise Sandy’s parents with a trip as a New Year present, so they send Sandy’s parents to Costa Rica for a beach vacation in January. The parents stay for a week at a luxury home in a gated community located directly on Potrero Beach. The home would normally rent for $7,635 a week but Equity Residences investors and/or their guests enjoy it rent-free
In the summer, Sandy wants to take her kids to Italy for a week while the children are out of school. She reserves the Fund’s luxury Siena penthouse just steps from the heart of the city and its Piazza del Campo. She doesn’t have to pay a weekly rate of $4,542 to stay at the penthouse in July, a high demand month for Siena.
Sandy shows her children Siena’s the beautiful historic churches and museums and takes them out for delicious gelato. Heeding Equity Residences’ concierge recommendations, Sandy engages a private chef to cook dinner one night at the apartment. They also dedicate one day to exploring Tuscan vineyards in the surrounding countryside.
In September, Matt, who loves to play golf with his dad, decides to take the extended family to Mauna Lani Resort on the Big Island of Hawaii, famous for its The Francis I’I Brown golf course. The family stays together in an elegant 4,100-sq.-ft. home situated right on the golf course, with a large pool and ocean views. They don’t have to pay the $10,124 weekly rental rate to enjoy sunshine, golf, and dedicated concierge services.
Matt and his dad book a private helicopter tour of the Big Island, landing close to the waterfalls and flying over the volcano. They invite a private chef to cook dinner in the enormous kitchen. Everything they request is arranged by Noah and Lindsay, former Four Seasons concierges.
After taking $22,301 worth of vacations afforded by their $10% deposit, Matt and Sandy still have more travel ahead. They decide to use Equity Residences affiliate Third Home.
It’s time to teach the kids to ski, so they book a condo in Aspen, Colorado through Third Home exchange in the beginning of April, when ski resorts are still open and the weather is superb but the peak time crowds are gone. A comparable condo on VRBO would rent for $3,180 a week.
In addition to these Fund (and fun) trips, Sandy and Matt can take bonus visits to any homes in the Equity Platinum Fund portfolio if they reserve homes up to 30 days prior to arrival. They can also reserve credit-free trips with Third Home, if they request a home up to 60 days prior to arrival. They decide to take an opportunity and book a last-minute trip to St. Thomas, Virgin Islands, where they stay credit-free at a full-service Ritz Carlton Destination Club in a 3-bedroom condo in March, just in time for Sandy’s birthday.
The Ritz, as the name indicates, is the pinnacle of luxury and excellent service. Sandy and Matt stay in a condo that overlooks the Ritz private beach and a swimming pool. They treat themselves to exploring sugar white sand beaches, drinking local rum cocktails, and swimming in the ocean.
A week that would rent for $6,330 at the most luxurious resort in U.S. Virgin Islands ends up costing a just a nominal cleaning fee.
After creating life-long memories and enjoying priceless family time (that would have cost others $31,740), Sandy and Matt decide to fund the remaining $212,625 and become full Equity Platinum Fund investors and continue their family adventures for years to come.
Equity Platinum Fund: invest in real estate and lifestyle.
The Equity Residences Platinum Fund is both a financial and lifestyle investment. When not reserved by investors the Fund homes are rented to offset operating costs. Each residence is strategically located to generate high cap rates through rental income. Rental income allows the fund to have the lowest fees in the industry and to give investors the best possible returns. Investors have priority access over renters and the option to eliminate annual operating fees. Investors can also receive dividends based on excess rental income.
At the end of the 10-year hold period Equity Residences sells the homes in the portfolio and returns original investment amount plus appreciation to investors.
If the opportunity to try the Platinum Fund lifestyle risk-free intrigues you, contact Marina Brennan ([email protected]) for more information on the offer.