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$50,000 is the minimal investment to receive 50% of a single Share in a property. We divide each property into a total of 4 Shares. Ideally, each investor's capital contribution is $100k. Yet, two different investors have the ability to contribute $50k each to acquire 1 share (25%) of the property income and ownership.
After our initial conversation, an investor will be able to review the Bank Trustee or Escrow Agreement detailing the handling and instruction of the initial $10k deposit.
Upon receipt of an investors $10k refundable deposit, airShare will share our full LLC Operating Agreement, the new property Affiliated Operating Agreement (the member managed LLC) and the STR Property Management Agreement. The Operating Agreements provide confirmation of quarterly income and deeded ownership.
Currently, airShare is focusing on purchasing properties in the $500k - $650k range in different states across the country. We focus on unique properties in Airbnb friendly communities, in ideal locations, around tourist attractions, that will generate year-around demand.
If for some unknown reason the short-term rental regulation changes in that area in a negative aspect, we have multiple options to protect investors and generate income or profit. As a member, you will be able to discuss and vote on the best option for the benefit of the investors. As examples, but not limited to, you'll have the ability to sell the property for profit, adjust to long-term rental (over 30-days), offer business retreat rentals or leverage the property to purchase another. We'll decided on the best course of action at that time.
airShares business model is designed as a long-term hold strategy to create quarterly income and/or profits for the shareholders of each short-term rental. As an Investor, you can sell, buy or trade (if available) your shares within the airShares investor network if you require an early exit. If you sell your shares to another airShares Investor, you would be able to "cash out" and more than likely with a profit. Additionally, after 7-years, shareholders can vote to sell the property as a exit strategy. With that being said, there may be a time, based on short-term rental market conditions, the real estate market, or similar conditions that require the property to be sold in order to generate a profit for shareholders.
An Investors funds are never handled, deposited or managed by airShares Holdings. All money transactions utilize third-party vendors or are personally managed by the investors (managed members) for security. Initially, your $10k refundable deposit (to secure your property and view our airShares investor documents) is wired to a secure third-party (i.e. Bank Trustee or Escrow account) depending on the state the STR property is located. After a property is identified and the New Member Managed LLC and Bank Account is established (with all members as signers for security), the balance of funds to purchase the property are wired directly into the member manage bank account. Your total funds are refundable up to 72-hours prior to Assignment (ear marked for property purchase) in your assigned short term rental property.
airShares Holdings LLC, received a small five percent (5%) premium (similar to a franchise fee) of the final property purchase price at closing. The premium helps airShares recover acquisition, holding, project management, staff and legal costs.
Secondly, our team receives standard real estate commissions (if licensed in the purchase state) or referral compensation from the buying and selling of the short-term rental real property.
Lastly, airShares receives 1 Share of the 4 total property shares of each of the projects. Therefore, airShares received a percentage (25%) of the income and ownership in exchange for the redistribution of our management fee (17%), personal investment of resources, securing and guaranteeing each loan and our vast expertise to ensure a successful joint-venture.
The short answer is "No", but your Share in the property could be affected by the real estate market. Your investment is secured by true and titled real estate. You will own specific shares of ownership in the property, and therefore normal real estate ownership risks and rewards apply. Therefore, your real estate share value will have a direct correlation to the real estate market. If the property value increases, so does your share value. If the property value decreases, your share value may drop temporarily. If you liquidate your shares during a down market, you could possibly experience a negative loss depending on the share value during liquidation.
airShares will higher the necessary contractors and airShares team will personally project manage the remodel and unique short-term rental design. Our team has extensive experience in residential remodeling and expertise in unique STR design to drive demand. We'll prepare the property for launch in a unique way, and include everything from furniture to tooth brushes to theater rooms and popcorn machines.
The majority of investors chose to only invest in the properties, but personal utilization is certainly possible. As managing member of your property, you can vote to implement specific policies allowing managing members and their families to utilize the STR property for a discounted rate, during non-peak times, for limited stays that likely will not affect your ROI.
ALL REAL ESTATE INVESTMENTS INVOLVE A DEGREE OF RISK. WE HAVE TAKEN STEPS TO HELP MITIGATE INVESTOR RISK, WHILE PROVIDING A TRANSPARENT OPPORTUNITY FOR REWARD.
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