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airShares is a member managed joint-venture real estate investment structure. Investors receive shares (based on percentage of capital investment) in specific short-term rental residential real estate, in exchange for ownership and income rights. airShares handles all aspects of the purchase, remodeling, and launch. So you can sit back, relax, and profit.
Well, that is certainly a part of our secret sauce! Our team searches, calculates, and runs real world scenarios on thousands of short-term rental markets across the country. On a minimum scale, we consider location, market saturation, booking frequency, dynamic daily rates, annual revenue, potential revenue, gross yield, construction costs, marketing costs, etc., etc., etc...
In order to provide additional security and mitigate risk for our investors, airShares Holdings LLC is the purchaser of the residential real estate. In addition, as required by the lender, The LeClair's provide the personal guarantee for the mortgage loan. The investors, as members, receive income and deeded ownership of the property.
airShares requires a $100,000 dollar capital investment to receive shares of a property. airShares will require proof of funds (POF), a US I.D, and a personal conversation prior to providing a copy of the Operating Agreement.
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 provides a dynamic rate of return, coupled with a strong security from risk by utilizing the security of real estate. Your investment purchases real estate shares, therefore it provides the same ownership rights and benefits as purchasing your own home. Yet, you may experience additional benefits with shareholder ownership (consult your tax advisor for further details).
airShares focus is to help mitigate risks from the start by ensuring ideal properties are chosen based on multiple factors within our parameters, to ensure airShares generates profits for shareholders. airShares accomplished this by utilizing an experienced short-term rental management team, experienced and licensed real estate professionals, top notch contract lawyers and a team devoted to staying ahead of the changing real estate market and regulations. Additionally, airShares is a mutual shareholder in each of the short term rental properties, so we experience risks and rewards similar to you as an investor.
airShares generates income in three primary ways. First, our team receives standard real estate commissions or referral compensation from the buying and selling of real estate. Secondly, in exchange for utilizing the airShares proven structure, we charge each Affiliated LLC (new property) a small five percent (5%) premium (similar to a franchise fee) of the final property purchase price at closing; to help recover acquisition, marketing, holding, project management and legal costs. Lastly, airShares receives a percentage of the income and ownership in exchange for our personal investment of resources, as well as securing the loan with our personal mortgage guarantee on every property.
Our lower operating costs and fee structure allows our shareholders to average double-digit returns!
Successful, high-income earning STRs keep their success low-key to stave off competition, while they expand and acquire more and more properties. In our experience, the short-term rental market place is automatically thinning the heard, as inexperienced low earning operators leave the marketplace, due to poor management, poor guest communication, and poor property attributes, which all lead to bad reviews.
In an a past interview with CNBC, Airbnb CEO Brian Chesky said, “To meet the demand over the coming years, we’re going to need millions more hosts” Mr. Chesky feels that Airbnb is experiencing a high-class problem in which there are more guests seeking accommodation than hosts to accommodate them.
After airShares finds and acquires a single residential short term rental property, it is divided into shares (income + ownership rights) based on the percentage of capital investment provided. A separate LLC (Limited Liability Company) is created for each short-term rental property, providing ownership rights, income and the ideal member-managed structure for joint-venture investors.
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.
Yes, once you are an Approved Investor within the airShares network, you can purchase shares in multiple properties. You will need to consult with your tax advisor to determine the best way to manage the income from multiple LLC's.
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 rights and risks 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. If you liquidate your shares during a down market, you could possibly experience a negative loss depending on the value of the property.
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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