own your 30A Vacation.com
Q) Exactly how does the Shared Asset ownership structure work?
A) The home is owned by an LLC. A member with an ownership interest of 16.67% of the LLC is entitled to use the home for 8 weeks each calendar year. Each fall, the weeks are chosen by the partners for the coming year. Partners submit their preferred weeks in order of priority. The weeks are then assigned in a "draft like" fashion, 1-6, then 6-1, 1-6,.. etc, until each partner has 8 weeks assigned. The following year, each partners position moves higher for the draft and #1 becomes #6, #2 becomes #1, #3 becomes #2, etc.. All dates are then put on a master calendar for partner reference. The calendar is only accessible to members of the LLC and those authorized by members. You must be an accredited investor to particiapte in this LLC.
Q) How many ownership interests are currently available?
A) There is one 16.67% interest available of 6 in total.
Q) How was the asking price of $419,000 for a 1/6th share established?
A) The asking price is based on comparisons of similarly priced opportunities, then significantly discounted. The average current asking price of the WaterColor Private Residence Club units is approximately $115 per sq foot vs the ~$90 per sq foot implied by our 1/6 interest in OakGrove One, LLC.
Q) The quoted $90/sq ft discounted price for a 1/6th share, equates to $540/sq ft for the furnished 4,650 ft home … Is this correct?
A) Yes, that is correct and vs the $916/sq ft for the 2 bedroom WaterColor PRC (8 owners with 5 weeks each in 1397 sq ft). Another way to think about this is the home's value of approx $2.5mill + over $200,000 in furnishings, electronics + all else.... and the benefit of the turn key nature of the interest. You need only arrive with your bathing suit - sand toys, boogie boards, and bicycles are provided!
Q) Can I rent out my unused weeks?
A) NO. The home is not in any rental pool and partners CANNOT rent out their weeks. Partners may allow family and friends use of the home with the understanding that the partner is fully responsible for any damage, should this occur, while the partner is not at the home and caused by their guests.
Q) If a week is unused by “assigned” partner, and used by another partner, is there any compensation paid to the “assigned” partner?
A) We want partners to use the home. There is no compensation paid to the assigned partner if one of their weeks is used (by agreement) by another partner. In actuality, it does not happen that frequently.
Q) Who coordinates any trading of weeks between partners.
A) Any trading of weeks can be accomplished between the partners involved directly via email or phone call or through the Manager.
Q) How much of the ~$8,500 annual expense is put aside for capital reserve?
A) $1083 of each partners' annual expense is applied toward the capital reserve. This amount is subject to change as the home matures.
Q) When are expenses due?
A) The annual expenses are billed to each partner and due the LLC on a quarterly basis.
Q) Are partners entitled to use all WaterColor amenities?
A) All WaterColor amenities are available to the partners, as we are members of the HOA. Obviously, fees may apply for certain activities as designated and agreed to by the WaterColor HOA (list available).
Q) If one wishes to sell in the future is the sale required to be handled by the manager, or does it need to be initiated by the LLC member?
A) It is initiated by the partner wishing to sell. The sale must be approved by the Managing Partner(s).
Q) Is there an exit strategy for the LLC?
A) Yes, as mandated in the by-laws of the LLC, the process to begin marketing the home for sale will begin January 2024. All proceeds, after cost to market and close the sale, will be disbursed according to each partners ownership of the LLC.
Q) What appreciation estimate are you using for the sale price of the home in 8 years?
A) Despite a robust housing market along 30A, no final sale price can be assured and we use no stated sale estimate in 2024. IF one were to ASSUME a 4% annual increase in the value of the property, a sale price of approximately $3,421,500 could be achieved in 2024. This equates to $570,250 per 1/6th share (before sales commission and closing costs).
Q) Are new owners vetted in any way other than having a good credit record and cash to purchase?
A) A credit and background check (including financials & personal references) would be used for any new member.
Q) Are additional photos of the home available?
A) You may view additional pictures at: https://oakgroveone.shutterfly.com