Luxury Fund 1 will concentrate on luxury resort-style vacation properties. The key factors to our success will include strong marketing, sales, and operations management, a deep understanding of the changing market conditions, and a well-rounded understanding of the industry and competition.
Our investment strategy involves includes developing and acquiring properties to sell as both fractional and whole-ownership condominiums to individual buyers, to produce substantial profits for our investors.
Sales – Selling fractional ownership in real estate can result in significant increases in revenue compared to selling whole units. It is not uncommon for luxury properties to bring 60-100% increases in revenue when selling them in fractions. This is because it allows for the same property to be sold multiple times, to different buyers. Each unit is legally divided into fractions, with each fraction representing a percentage of ownership. The number will vary from 8-12 fractions sold per unit depending on the location, size, and value of the property. Each unit is legally divided into fractions, with each fraction representing a percentage of ownership. The number will vary from 8-12 fractions sold per unit depending on the location, size, and value of the property.
Operations – Following the acquisition of the properties, we will work closely with our hospitality management partners to establish the required infrastructure and operations for fractional ownership, and the continued day-to-day management of the property. These industry partners have extensive experience managing a variety of properties worldwide, including numerous fractional ownership properties. They have a proven track record of success in providing luxury service and ensuring a seamless experience for owners and guests alike, reaching back over the past 30 years.
Short-Term Rentals – To increase profits and to support operational expenses, we will offer short-term rentals of the properties while the new operations are established, and sales process continue. Our hospitality management partner will oversee these rentals and ensure high levels of guest satisfaction. Historically, renters who enjoy the property often convert to buyers.
The fund will set its sights on exquisite and exclusive boutique properties, encompassing luxurious condotels, apartment and condominium complexes, as well as single residences nestled in close proximity. These properties may range from pristine new constructions to established operations, with the potential for enhancements to align with evolving market trends. Our primary focus will be on properties boasting breathtaking beachfront and island views, waterfront panoramas, with water access and access to frequent flight schedules and convenient transportation options. Property amenities could include an impressive range of lavish onsite choices, including a distinguished clubhouse, highly attentive concierge services, a sparkling pool, state-of-the-art fitness center, exquisite dining establishments, indulgent spa facilities, serene yoga studios, and a prestigious beach club to fully immerse oneself in the lavish lifestyle.
The target area will include coastal markets in the southeastern United States and the Caribbean Territories. These are popular vacation destinations, attracting millions of visitors every year. These regions offer a variety of attractions, including beaches, cultural and historical sites, theme parks, and outdoor activities, drawing travelers from many different places. By investing in these markets, we expect to capitalize on the strong demand from tourists and locals interested in owning real estate in these areas.
Each property will enter the sales process within 3-6 months of acquisition. The exact timeline will be determined by factors such as the hiring of sales staff and the completion of new operating documents by the legal department. This process will move faster in some areas, while in others, including foreign locations, it could take longer. Once the operations are in place and rentals and sales begin, we will distribute returns to our investors on a monthly basis.
The luxury travel industry is thriving, and the demand for high-end living spaces is on the rise. Investing in luxury resort-style properties is an excellent opportunity for businesses looking to capitalize on this trend, and it offers a host of advantages.
First, these properties can generate significant rental income, as affluent travelers seek out unique and luxurious experiences. Moreover, the prestige and exclusivity of these properties can attract repeat renters, ensuring a steady stream of income over the long term.
Secondly, investing in luxury resort-style properties is an excellent way to diversify a business’s portfolio. These investments attract a high-quality buyer base and capitalize on the growing demand for high-end living spaces, providing a stable source of income over the long term.
Thirdly, businesses can differentiate themselves in the market by offering a range of amenities and services that cater to the evolving needs of discerning travelers. This can help businesses position themselves for success in the luxury travel industry and achieve long-term profitability.
Moreover, another benefit of investing in luxury resort-style developments is the potential for substantial appreciation in property value. These properties are typically built with high-end materials and finishes and located in desirable areas that are expected to appreciate over time.
Additionally, the luxury market is often less affected by market fluctuations, which can provide a more stable investment. These properties often come with a range of on-site amenities such as spas, fitness centers, and restaurants, as well as a variety of concierge services. These amenities and services can add significant value to the property, making it more attractive to renters and buyers.
The COVID-19 pandemic and the shift towards remote work have also contributed to the increasing demand for luxury properties. As more people seek spacious, comfortable, and health-focused living spaces with private outdoor areas and access to high-end amenities, this type of real estate has become a highly desirable investment option.
In summary, investing in luxury resort-style properties offers the potential for significant rental income, attracts a high-quality buyer base, and provides long-term stability to businesses seeking to maximize their returns in the luxury travel industry. With the increasing demand for spacious, comfortable, and health-focused living spaces, luxury resort-style properties have become a highly desirable and profitable investment option.
Fractional real estate refers to purchasing a deeded share of a property, where ownership is divided into multiple shares. Owners share in the use, equity, expenses, and potential rental income or appreciation of the property’s value.
Fractional real estate is a fast-growing trend that is predicted to change the shape of real estate over the next few years. One reason for this is the reduced cost barrier of entry, which makes it easier for buyers to gain access to high-value real estate properties that would be otherwise inaccessible. Additionally, the luxury travel market, which is a $1.2 trillion business projected to be the fastest-growing segment of the global travel industry, provides a ripe opportunity for fractional real estate investments. Island Sky’s fractional real estate fund is at the forefront of this emerging trend, offering sound and luxurious developments that have lucrative potential.
One advantage of fractional ownership is that it makes real estate investment more accessible and manageable. By sharing the ownership of a property with multiple owners, the financial burden of expenses and responsibilities such as property management fees, maintenance costs, and property taxes is reduced for each individual owner. This can help to mitigate risk and make it a more viable option for a wider range of individuals.
Buying fractional real estate also provides individuals with financial flexibility, as it allows them to retain a portion of their capital for other needs or opportunities. By purchasing a property “fraction,” individuals can maintain greater financial flexibility in their overall financial planning.
Fractional ownership offers another compelling advantage: the ability to use your ownership fraction in proportion to the time you can spend at the property. This means that you can make the most of your investment by fully enjoying the property during the times you are able to visit, instead of owning an entire property that sits vacant for much of the year. Overall, fractional real estate provides a unique and attractive option for individuals looking to own property, offering a combination of accessibility, management, financial flexibility, and other benefits.
Island Sky’s ability to select the right properties and then conduct a successful sales effort relies on the strength of the teams and systems we have in place. We have assembled a team of experts in all aspects of fractional real estate, including site selection, development, marketing, sales, management, and ongoing operations.
We place a strong emphasis on the importance of location and exclusivity in creating high-end properties that will attract buyers and are experts at doing so. By being well-versed in the luxury travel markets and carefully selecting the most sought-after locations, we know how to create a sense of exclusivity around our properties. A location that offers stunning views, access to amenities, and a sense of privilege can be highly desirable, and buyers are willing to pay a premium for such features. We are also committed to ensuring that only the best materials and design practices are used in design and construction, ensuring that all Island Sky properties are of exceptional quality.
The marketing and sales team is responsible for creating effective marketing strategies that resonate with the target audience. They are seasoned veterans in using various marketing channels, including social media, email marketing, and paid advertising, to reach potential buyers. Their strong understanding of the real estate market enables them to create compelling marketing messages that appeal to buyers.
Creating sales through building buyer confidence is a top priority, and the exceptional operations team is a key factor in instilling that confidence. With their proven track record in hospitality management and thorough understanding of each rental market, potential buyers can feel secure in their investment knowing that the properties will be maintained to the highest standards and optimized for rental income and occupancy rates. This level of expertise and attention to detail reinforces the positive ownership experience that buyers can expect from Island Sky properties.
To further increase buyer confidence, the hospitality management team is responsible for ensuring that the properties are well-maintained and that the owners have a hassle-free experience when using their properties. This provides assurance to customers that their needs and expectations are met, resulting in a high level of customer satisfaction. The team’s commitment to providing excellent service and quality properties not only benefits current customers but also instills confidence in potential buyers that they are making a smart investment.
Our team’s knowledge and successful track record are critical to the sales process, as they provide customers with a sense of security and reliability. By leveraging their experience and commitment to excellence, we can instill confidence in customers, leading to successful sales and better returns for our investors.
