Questions About the Investment

Real estate can offer several advantages over other types of investments, including higher returns, market stability, inflation hedging, diversification, capital preservation, and supplemental income. Traditional options for investment are to become a passive investor: investing in real estate investment trusts (REITs) or real estate exchange traded funds (RE ETFs), which offer no use privileges or tax benefits; OR to become an active investor: flipping, holding and renting, or investing in a second home for personal use, all of which require a substantial ongoing commitment of time and resources. Laurian Holdings presents an opportunity to be a passive investor, earn income, realize appreciation, and use the properties; fully serviced, managed, and maintained.

Investors will purchase Units of Limited Partnership ownership interest in the Company. Investors will be entitled to a pro-rata share of Company profit and losses based on their percentage of ownership. Each Limited Partnership Unit will be allotted property use credits annually that can be exchanged for stays at any Laurian Club Residence, Laurian Estate Social Clubs, Laurian House, or Partner property.

The Securities Act of 1933 determined that any investment “contract, transaction, or scheme whereby a person invests his or her money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party”, is a security.

Investment in the Company is exclusively offered to “Accredited Investors” as defined by Rule 501(a) of Regulation D promulgated under the Securities Act. Accredited Investors include (i) Individuals whose individual net worth, or joint net worth with that person’s spouse, at the time of subscription exceeds $1,000,000 (excluding the value of the Subscriber’s primary residence); or, (ii) Individuals who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year. There are additional categories of accredited investors for business entities and licensed investment professionals.

The minimum investment is one sixth (1/6) Unit, at the current market value set by the Manager. See “Summary of the Offering” for the current Subscription prices.

The Company will utilize 80% of Initial Capital Contributions to facilitate investment in the real estate portfolio, including (a) title searches, home inspections, finance costs, escrow fees, down payments, options, leases, closing costs, taxes, recordings and any other expenses related to purchasing or otherwise securing the properties; (b) renovation, furnishing, decoration, par stock, cleaning, and any other costs associated with preparing the properties for use; and (c) other costs associated with establishing a home including: insurance, creation of utility accounts, initial HOA and Community Association fees.

The Company will pay the General Partner an amount equal to 20% of the Initial Capital Contributions for costs associated with organizing the Company and conducting the Offering, including without limitation, fees and costs associated with legal services, accounting services, sales, and marketing.

In addition to the initial capital contribution, Limited Partners pay their pro rata share of annual carrying costs for the properties and an annual asset management fee. Limited Partners may also be required to pay additional amounts from time to time to cover loss, extraordinary expenses, indebtedness, and other company obligations; not to exceed a maximum of 15% of the total capital contribution of the Partner.

Asset Management Fees: As compensation for the Manager’s services, the Limited Partners will pay the Manager an annual asset management fee in an amount equal to their pro rata share of one percent (1.25%) of the greater of (a) the total net asset value of the Company properties, plus all cash and cash equivalents then held by the Company, or (b) the aggregate Initial Capital Contributions of all Limited Partners.

Use Fees: Exchange fees to Partners and charges for amenities like groceries, activities, or additional staff are the direct financial responsibility of the Partner at the time of use.

Redemption Fees: Should the Limited Partner request that the Company redeem their Units, the Manager shall be entitled to assess redemption fees according to the following age of units premiums: 2-3 years: 5%; 4-6 years: 3%, 7+ years: no redemption fee.

Closing and Administration Fees: In the event of a transfer of Units, The Manager will be entitled to assess a closing and administration fee of 3%.

In addition to annual non-cash Credit Dividends that can be exchanged for stays at properties, the Manager may distribute positive cash flow from rental income and liquidity events per the Limited Partnership agreement.

The projected term of the investment is ten (10) years from its initial closing, at which time it will enter a liquidation period.

Units may be sold at any time after a 12-month hold to qualified accredited investors at current market rates, subject to the terms of the Limited Partnership Agreement.

Preferred return refers to the order in which profits from a real estate project are distributed to investors. In regard to this investment, Limited Partners receive 100% of available cash and proceeds from operations and the sale of assets until their initial capital contribution has been returned, less any outstanding amounts owed to the Company, before the Sponsor receives any distribution.

The Company expects to be classified as a partnership for federal and state income taxes. Property operating expenses and depreciation flow through to Limited Partners on a pro rata basis and are reported on a Schedule K-1.

Limited Partners may offer unused credit nights to guests or consign them to the rental pool. If rented by other Investors, the operational value (vs the retail value) of the credits will be credited to the Investor’s annual operations dues. Operational value is calculated as what you paid in Annual Dues / number of Unit Credits. Example: $10,000 Dues / 100 Credits = $100 operation value per credit.

Questions About The Club and Properties

Laurian Club manages Laurian Holdings’ investor experience and the physical properties as the operating company. The Club Concierge is the primary source for reservations, amenities, and membership benefits, while the property management team handles property upkeep, maintenance services, and rental management. Throughout the year, the Club organizes events, curates VIP opportunities, and hosts seasonal pop-up Social Clubs.

The Company will invest in luxury residential and mixed use commercial / hospitality real estate. The proposed property mix includes:

  • Laurian Club Residences‘ are full-service residences exclusively for the use of Members. A typical Club Residence has 2-3 bedrooms, often with one bedroom accommodating a home office. They are professionally designed, high-tech, executive homes.
  • Laurian House‘ properties are high-end, self-service, short term rental properties focused on earning income. They can be rented by Club Members and Partners, and by the general public via online rental platforms. Laurian House properties are typically 1-2 bedroom, smartly appointed professional accommodations.
  • Laurian Estate Social Clubs‘ offer co-working space, a lounge, light dining, and overnight accommodations for Members. Clubs may be rented in their entirety for events, commercial uses, off-sites, or as group accommodations. The Manager is targeting large residential estates and urban mixed use properties as Social Clubs.

Laurian Club has partnered with an exchange broker of luxury private residences. Their ‘partner properties’ range from luxury condos to sprawling estates and private yachts at over 100 global destinations. Investors can trade their dividend credits to use a Partner property for a flat exchange fee.

Laurian Holdings I, LP will invest in sought-after urban and vacation destinations in the United States. The Manager is utilizing a location overlay that considers industry, amenities, tourism, growth, and accessibility; balancing industry-insider needs with those of social travelers.

Members can use Laurian properties whenever they like, based on availability. There are no blackout dates or week-long stay requirements. Investor Members have a priority reservation system, allowing them to make reservations farther in advance than other Members or the public.

Members pay for their stays with their credit dividends, There is a housekeeping fee per visit and guests are responsible for any amenities charges. Partner properties may charge an exchange fee that varies by location.