FAQ

If you have any questions, email us at invest@mxluxepartners.com or schedule a call with our investor relations team here

The investor account creation process is all completed online. You can create your own account by clicking here or you can schedule a call with our investor relations team by clicking here

An accredited investor, in the context of a natural person, includes anyone who:

• Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current calendar year, OR
• Has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
• Holds good standing a Series 7,65 or 82 license

On the income test, the person must satisfy the thresholds for the prior two years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period. The person may satisfy the threshold based on joint income for the years during which the person was married and based on individual income for the other years.

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

• Any trust with total assets more than $5 million, not formed to specifically purchase the subject securities, and whose purchase is directed by a sophisticated person, OR
• Certain entity with total investments more than $5 million, not formed to specifically purchase the subject securities, OR
• Any entity in which all the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

There are many different options for types of entities/accounts you can use when investing in our funds. You can invest as an Individual, Jointly, through an LLC (limited liability company), Corporation, Partnership, Retirement Plan/401K, Self-directed IRA, 1031 exchanges, or QRP accounts. 

If you have an existing IRA, or a 401K from a previous employer, it is likely that you will be able to self-direct all or a portion of it into our investment vehicles. Check with your current custodian to see if they will allow you to self-direct your retirement account. If the answer is no, please contact a member of our investor relations team by email at invest@mxluxepartners.com and we will introduce you to one of the custodians that we work with that will allow you to invest in alternative assets using your retirement funds. 

That depends on which vehicle you decide to invest in. If you invest in our new accredited fund, you will receive a Form K-1. A Form K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Our goal is to finalize all Form K-1s annually by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns, but that is not our intention.

You can invest in our accredited fund if you live in another country. Depending on how you structure your investment, different documents may be required.

The term of our vehicles are generally 5-7 years, but we have sole discretion to extend the life or even decrease life after you have invested. The reason for this is we want to maximize the value of the real estate investments. We do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell the investments when the market is great. We are long-term investors and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents. 

If the GPs retire, separate, or die, the vehicles themselves and their property investments will continue to operate. Cash flow will continue to be generated and distributed to investors. We have a great team at MxLuxe Partners & our vertically integrated management company. Together the team will continue with business as usual – maximizing the value of each property investment. 

We look for mid teens to mid twenties on an annualized basis over the entire life of the investment. We may target equity returns that are higher or lower depending on the type of investment and amount of leverage utilized. For example, if we invest in a property that requires significant repositioning through capital and marketing investments, we may forego near-term distributions to achieve a higher gain on the sale of the property in the longer term. We target higher equity returns for these types of investments as they involve more risk.

Our targeted returns are just that, targets. Investment involves risk and our actual returns may be higher or lower and may include a partial or total loss of your investment. 

That depends on the vehicle that the funds are invested in. We intend to pay distributions quarterly but may change the frequency at our sole discretion during the term of the fund. 

The change in distribution frequency can depend on many factors such as the property’s cash flow level or needed capital expenditures. Sometimes the cash flow of the property may not support a distribution. Additionally, our funds may invest in a property with the plan of not paying any near-term distributions while we undertake property renovations or capital allocation. 

Being property managers in each of our funds & often times investors ourselves, our business income is tied to the property performance. If investors don’t make money, we don’t make money. This keeps us highly motivated. 

Unlike most private equity managers, we do not charge an asset management fee.

Since our focus is on cash flow generation, we bake into the projections a performance fee split of 80/20. 80% goes to the LPs, 20% to the GPs, and the performance fee is only activated when the investors have achieved a 12% preferred returns. This keeps us highly motivated to identify high performing properties. 

We will charge the standard property acquisition & disposition fee of 2% of the purchase & sale price. 

We do not charge miscellaneous fees, such as fees for processing and storing your investment information. 

All projected returns account for all fees & non fees. 

All investments involve risk, including those investments made in MxLuxe Partners Short Term Rental Funds. We do not guarantee that you will earn our targeted returns. There are many factors that can impact the performance of your investment, many of which are not under our control. Please keep in mind, investing involves risk and may result in partial or total loss of your investment. Prospective investors should carefully consider investment objectives, risks, charges, and expenses, and should consult with a tax or legal adviser before making any investment decision.

We do believe that investing in private real estate poses less risk than many other types of investments. Private real estate has historically been less volatile than the stock market, and properties generally appreciate over time as inflation tends to push rents up. Additionally, we conduct extensive research and due diligence on every property investment and have a high degree of conviction that our risk is balanced with our targeted returns.