W H A T I F You could invite family and friends to join you at your - PowerPoint PPT Presentation

E Q U I T Y E S TA T E S Appreciating Luxury Residences

W H A T I F … You could invite family and friends to join you at your own oceanfront villa, your mountain ski-in/ski-out chalet, your place in the heart of the city, or your golf course getaway. You could take the hassle out of vacations by having a local expert pre-plan every detail of your trip. You never had to worry about maintenance, repair, cleaning, or other property management headaches. You could join a distinguished group of owners and know your vacation dollars are not just being used for fun, but for an investment fund as well. W E L C O M E Welcome to a new appreciation of first-class travel and luxury home ownership. Welcome to an opportunity unlike any residence or fractional club you may be familiar with. Welcome to a whole new world created exclusively for a small group of astute investors…a whole new world inviting your exploration.

C O N C E P T B A C K G R O U N D Timeshares. Destination clubs. Fractional ownership programs. Undoubtedly, you’re familiar with one or more of these vacation home alternatives. The commonality, of course, is the economies realized from shared access to residences that are limited to a specific number of days a year at a single destination. Historically, upper-middle-class America has shunned vacation timeshares. Growing disposable income and net worth allowed consideration and acquisition of second and, in some cases, third and fourth homes. But with more properties came more headaches, more upkeep, and certainly more financial responsibility and expenses. MANY APPRECIATE LUXURY. FEW, HOWEVER, BANK IT. Beginning with the rebound of the financial markets in 2003, developers and entrepreneurs took notice of the situation and gave birth to the more upscale categories of destination clubs and fractional ownership programs. Affluent households across the country welcomed access to upscale homes in top cities and resorts around the world – without the headaches of sole ownership. As a result, the fractional and destination club industry grew from $500 million in 2003 to more than $2 billion in 2006.

C O N C E P T B A C K G R O U N D Fractional and Destination Club Sales* (in millions) $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 1999 2000 2001 2002 2003 2004 2005 Fractional & Destination Clubs Destination Clubs (Non-Equity) During this same time period, average gains in the luxury residential real estate sector outperformed equity markets, generating double-digit annualized returns, depending on the location. Good news for the club owners…but not necessarily for club members with no equity in the properties. At least that’s what the founders of Equity Estates discovered after researching the market and listening to many disenchanted potential destination club members. At the core of the dissatisfaction – a lack of potential return on membership invest- ment, and little or no financial transparency – both of which point to the safety and security of ownership. EQUITY ESTATES OFFERS THE BEST OF BOTH WORLDS. Their answer? Simple – a new opportunity to bank not only a lifetime of memories traveling to impressive vacation destinations with friends and family, but also the fiscal appreciation attained from investing wisely in a diversified, well-managed global real estate fund. In essence, the best of both worlds. In two words, Equity Estates. *Created by Ragatz Associates. Ragatz Associates is an international consulting and market research firm to the resort industry.

C O M P A N Y B A C K G R O U N D Atlanta entrepreneurs Adam Capes and Philip Mekelburg (bios provided in the enclosed Private Offering Memorandum/POM) founded Equity Estates in April, 2006. Both had built and sold successful Atlanta-based businesses, and both had become frustrated with the aforementioned lack of financial transparency and ownership options in the booming destination club industry. They both wondered why any educated, affluent consumer would choose to purchase just access (renting), as opposed to access and ownership. MOLDED BY THE TOP MINDS IN THE INDUSTRY. Adam and Philip agreed there had to be a smarter, more equitable model than “access only.” So began their research. Engaging some of the most knowledgeable real estate, financial, securities and legal minds, the two founders built a core team of business advisors (details also provided in the enclosed POM) to help answer their own frustration. What they quickly ascertained was the consternation of many others in not having the potential for return on investment. Offering a growing portfolio of luxury multi-million dollar residences managed for the private use and financial return of our owner members, Equity Estates has quickly distinguished itself in a crowded landscape. As a well-managed, diversified real estate investment fund, we offer investors noteworthy potential long-term return, along with unparalleled enjoyment of the actual assets owned by the fund. “It’s really an interesting concept, fueled by the Baby-Boomers.” J. Lewis Glenn President, Harry Norman Realtors Atlanta Business Chronicle, January 12, 2007

C O M P A N Y B A C K G R O U N D 2000-2005 Home Prices vs. S&P 500 Index 60% 50% 50% 40% 30% 20% 10% 2% 0% U.S. Home Prices S&P 500 Index 2000-2005 2000-2005 Source: National Association of Realtors “The Top 10% wealthiest people in America have 65% of their wealth in real estate.” CNNMoney.com, April 20, 2007 “FUN” WITH A “D.” The business press dubs it “experiential investing.” Equity Estates members refer to it as “fun” with a “d.” One thing’s for sure – it’s not for everyone. While destination and fractional ownership clubs claim thousands of members, we’ve purposely capped our fund at only 300 full memberships sharing equity and usage of more than 40 luxury residences. The truth of the matter is that we’re as selective about our owner members as we are about our stunning residential properties. FIRST-CLASS HOMES AND WORLD-CLASS SERVICE. With an average value of close to $3 million, each stunning home offers members unmatched creature comforts, views, decorator touches, state-of-the-art technology, and top-quality amenities you’d expect at Five-Star resorts. And each residence… every vacation…comes wrapped in Equity Estates’ world-class concierge service that handles every trip detail, from transportation and itinerary planning to stocking the fridge, arranging babysitters, making dinner reservations and securing theater tickets.

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W E I N V I T E Y O U T O R E S E A R C H A N D C O M P A R E You’ll find that we’ve done our homework well. But, we invite you to conduct your own research. Shop the competition. Talk to our owner members. In the end, you’ll discover that Equity Estates, indeed, offers the best of both worlds: access to unmatched luxury residences, all in preferred locations, and equity ownership providing financial security and the potential for notable return on investment. Equity Estates versus Second Homes – Why be tied down to the enormous cost, upkeep and management of one, two or even three vacation homes when you can choose from more than 40 Equity Estates residences all over the world for a fraction of the price of owning just one home? Equity Estates versus Five-Star Hotels – Stays at even the top-rated resorts and hotels can’t match the size and creature comforts of our luxury private residences. And all hotel stays are sunk costs for guests. Equity Estates offers quality, certainty and the opportunity to enjoy asset appreciation you can bank down the road. Equity Estates versus Residence/Destination Clubs – While it seems that every club offers inviting pictures of the upscale travel lifestyle, none match Equity Estates’ financial safety, security and upside of true ownership. In addition, we work hard to uncover unique, one-of-a-kind residences that don’t fit into the “cookie-cutter” acquisition model of the larger destination clubs. “I was literally days away from signing up with probably the best known destination club when I learned about Equity Estates from a friend. Once I began researching, it took me about three minutes to realize that Equity Estates was truly a better model for both the short and long term. I became an Equity Estates owner member the next week and have been delighted with my choice.” Jef Wallace

W E I N V I T E Y O U T O R E S E A R C H A N D C O M P A R E THE OPEN BOOK POLICY. 80% of capital contributions are placed into a real estate acquisition account and deployed into real estate, versus 50% or less for the typical timeshare, fractional or destination club. The remaining 20% of capital contributions establish an operating account at the fund level to pay for sales, marketing, legal and other fund-related expenses. Furthermore, Equity Estates is committed and legally bound to full financial transparency, with annual audits and appraisals shared among all members (which most fractionals and destinations clubs avoid). CONTINUOUS COMMUNICATION. Our management team is committed to constant communication with our owner members regarding all aspects of their membership interest. Just ask them. We review detailed service-related surveys after every trip, and are always interested in preferences for desired destinations. In the leading destination clubs, you’re just a number…member 2,961. At Equity Estates, our owner members are trusted partners – and treated as such.