Hassle-free Vacation Rental Home Ownership

faqs

• What is the minimum investment amount?

  $25,000. Pretty low, right? You definitely can't buy your own vacation rental for that amount let alone have exposure to 25 or more luxury mansions! It's called diversification where we come from.

• Do I have to be an accredited investor?

  Yes. Since this is a Reg D 506(c) offering we can only accept investors that meet the "accredited investor" standard per the SEC. We will also need each investor to demonstrate proof that they meet this standard. You can go to Parallel Markets, upload your documentation and get a letter for free. You will then provide that to us when we request it.

• What is the Preferred Return?

  8% annualized, paid on a quarterly basis from cash flows

• What is the Target Return?

  15% - 20% Net IRR

• Are there any incentives available for investing a larger dollar amount?

  Yes. There are three classes of units each with different minimums. The minimum investment amount is $1M for Class A which gives you an 80/20 split above the Preferred Return. The Class B minimum is $100k with 65/35 split and the Class C minimum is $25k with a 50/50 split.

• Are there any incentives available for being an early investor?

  Yes. If you make a capital commitment within the first $3M of total commitments you will receive one share class higher than you normally would have. This means if you invest $25k you'll get Class B units instead of Class C and if you invest $100k you'll get Class A instead of Class B.

• How can I invest?

  To receive the full PPM please sign-up at our investor portal or if you would like to speak to one of the principals directly please call 503.863.0966 – or email invest@parsonsfund.com

• Can investors stay in the homes the fund has purchased?

  Yes. Investors are entitled to discounted nightly rates. Class A investors get a 20% discount, Class B 15% and Class C 10% on top of any other promotional offers we may have at the time.

• What is the Target Fund Size?

  $30 million

• What is the Target Acquisition Criteria?

  5,000 sq. feet, 6+ bedrooms and 4+ bathrooms in Phoenix suburbs including Scottsdale, Paradise Valley and Arcadia.

• Why is Scottsdale the ideal market?

  The Scottsdale area continues to be an advantageous location for short-term real estate due to amenable short-term rental regulations, expansive homes on large plots of land, and the area’s large tourist population. The Scottsdale area is continuing to be a prime vacation destination for professionals as well as large groups looking to combine luxury accommodations with a plethora of activities.

• How many properties will you end up purchasing in this fund?

  We anticipate that the average equity investment per property will be around $1M so we will end up with give or take 30 properties. It's important to note that one of the key things we will be monitoring as we build this portfolio is the impact we are making by bringing new supply of luxury vacation rentals into the Scottsdale market. If we feel we are cannibalizing our own revenues we will cease acquiring new homes until the demand returns.

• Will you be using any form of debt to finance the homes?

  Yes. We anticipate borrowing up to 70% of the acquisition price of each home using senior debt in the form of individual mortgages or a credit facility.

• If I were to decide to invest today, when will I need to send in my money?

  Our plan is to conduct what they call a "closing" at the end of each quarter. The first closing will occur at the end of June 2022 so you will need to send your money in before then. Our target raise for this closing is $3M.

• What happens if I'm interested in investing but you've already raised the full targeted amount for a given quarter?

  You will still be able to fill out all of the paperwork and claim your spot for the next quarter. We just won't be asking for your funds until the end of the next quarter.

• How long will you be raising capital for this particular fund?

  We anticipate conducting no more than 8 closings over the life of this fund so we will be raising capital over the next two years. With that said, depending upon the depth of our deal pipeline we may end up completing the raise sooner than that. Our fundamental belief is that you make your money on the buy in real estate so we are in no rush to purchase homes at prices that don't make sense to us.

• Do I only have exposure to the homes that are purchased during the quarter I invest?

  No. You will have exposure to all of the homes purchased by the fund. By exposure, we mean that you will reap the financial benefits of the income and depreciation generated from all of the homes.

• What are the tax benefits of investing in the fund?

  The biggest tax benefit is the impact of depreciation which offsets a large portion of the income generated from cash flow. We intend on having cost segregation studies done on each home which will allow us to accelerate or front load some of that depreciation. Any homes acquired in 2022 will allow us to take advantage of 100% bonus appreciation which expires this year. This is one more reason it makes sense to invest in 2022!

• What is the exit strategy?

  Since this is what they call a closed-end fund, it means investors don't have any kind of right to redemption like you would in a mutual fund. We are targeting to hold the properties between 3 and 5 years. At the end of that time, Plan A is to sell the entire portfolio to an institutional buyer like Blackstone, Airbnb, Vacasa, Hilton or Marriott.