How does Equity Estates work?A common gripe about timeshares is that you pay a lot of money into the program, yet you gain no equity in the properties you visit each year — you get only the right to use the property. Equity Estates offers an alternative. Instead of paying a membership fee, you contribute to an investment fund that buys you shares of the Equity Estates property portfolio. Down the road when your defined liquidity date arrives, the residences are sold and investors are paid back 100% of their initial capital contribution, plus 80% of the profits.
Properties and destinationsDuring the years between investment and disbursement, investors enjoy access to 60+ destinations across over 25 countries. The properties are private, luxury homes valued between $2 million and $5 million, with amenities like oceanfront views, ski-in/ski-out access, swimming pools and private club access.
AccessDepending on your level of investment, you’ll get a set number of nights per year. Equity Estates promises better availability than timeshares since homes are only available to investors.
CostIn addition to your initial investment, which can start at $145,000 or more, investors pay annual fees to cover maintenance, daily housekeeping, a personal travel concierge, destination manager and local hosts.
How does Inspirato work?Inspirato also promises luxury vacations at upscale private homes around the world, but the structure of the program is quite different from Equity Estates. Inspirato is set up as a subscription model featuring three tiers with varying levels of cost and benefits.
The Inspirato PassThe Inspirato Pass is the company’s core offerings. For a $2,550 enrollment fee and a monthly subscription of $2,550, members can choose from over 1.5 million Pass Trips, with all nightly rates, taxes and fees included. And it’s not just homes. You can also stay at top hotels and resorts and choose from cruises, safaris and guided tours.The pass is designed for travelers with flexible schedules, as you have to complete a booked reservation before scheduling your next trip. It’s also ideal for those who want to travel frequently but want the planning to be simple and straightforward.
Inspirato SelectThe second tier, Inspirato Select, comes with a higher price tag ($24,000 per year), but also offers three Select trips that you can use yourself or gift to others. Guests with the Select membership can make upfront reservations or book on a whim, and the cancellation policy is flexible.
Inspirato ClubThe third option, the Inspirato Club, costs $650 per month. Travelers get access to the Inspirato Collection of properties and experiences, with members-only nightly rates and travel planning assistance. Inspirato luxury homes are owned by the company, but they have partnerships with hotel, resort and travel brands, ensuring you have access to stays and experiences all over the world.
Which option is right for you?Whether you choose to go with Inspirato or Equity Estates depends on what you’re looking for out of a vacation club. The people who join Inspirato tend to be frequent travelers who spend a lot on travel each year and have a flexible enough schedule to work around some of the inherent booking limitations. Equity Estates appeals to people who spend significant amounts each year on travel, but want to see some return on their spend. Because of the potential for investment gains, the initial investment is higher than other options.
Equity Estates pros and cons
|Actual investment with opportunity for gains, instead of simply a membership fee||Initial investments often start at $145,000 or more|
|60+ destinations in 25 countries||Limited number of nights available; competition with other members for availability|
|Portfolio of luxury homes with upscale amenities||Defined liquidity date that individual investors have no control over|
Inspirato pros and cons
|Three membership tiers with varying price points||No ownership stake or equity; membership only|
|1,200+ accommodations||15,000+ members competing for availability|
|Ability to use membership to access hotels, resorts and travel experiences||Booking process works best for those with very flexible schedules|
Now get to know PacasoEquity Estates and Inspirato aren’t the only innovators in the world of luxury travel. In fact, Pacaso takes the best of what these companies offer and delivers a smarter way to enjoy second home ownership. With Pacaso, you co-own a luxury second home in a top destination instead of paying for a membership or right to a certain number of nights. You’ll find Pacaso homes in Palm Springs, Aspen, Lake Tahoe, Park City, Miami Beach and many more incredible locations, so you can pick your favorite. Every Pacaso home is fully managed, professionally designed and ready for you to enjoy, with equitable scheduling among owners. Pacaso co-owners purchase shares in a property-specific LLC, and when you’re ready, you can sell your share to realize any returns on your property.
Comparing Pacaso and InspiratoPacaso has some key advantages over Inspirato:
- Real estate asset: With Inspirato, your money goes to a membership fee and nightly costs. Pacaso offers a better alternative, helping you to buy, own and enjoy a real estate asset — starting at ⅛ share of a luxury home.
- Scheduling: Inspirato has roughly 14,000 members, all vying for stays at the most crave-worthy residences. Pacaso homes have a maximum of eight owners, and the SmartStay technology ensures you get a fair share of time in your home.
- Predictability: How much you’ll pay for nights with Inspirato can fluctuate dramatically, especially during peak vacation times and major holidays. With Pacaso, you won’t have to worry about unexpected price fluctuations, and costs are always transparent.
- Familiarity: With Pacaso, you’re not bouncing through different hotels and homes when you vacation. You return to the same luxury home where you know all the amenities, details and features. You become residents of a community and know your favorite shops and restaurants. There’s value in having a consistent place to make memories with your family that you won’t find in a vacation club.
An owner’s view of the differencesPacaso owner Mark also has an Inspirato membership. While he uses his Inspirato to “fill the gap” when he wants variety in destinations, he says he loves that his Pacaso gives him true ownership in a destination he loves. “We’re kind of creatures of habit,” Mark said. “We like to go back to the same place that we know. We know it’s going to be quality. We get to know people in the community … it’s a totally different animal, and we prefer having the house.”
|Cost/type||Real estate ownership||Investment fund||Vacation subscription with tiers|
|Opportunity for equity and gains||Yes||Yes||No|
|Scheduling||Starting at 6-7 times a year on average||Set nights per year (but offers more than a timeshare)||Limited; Can only book after completing each stay|
|Consistent experience every time||Yes||Varies||Varies|
|Best for||Travelers interested in ownership and easy vacations in their favorite place||Travelers who want to earn on their investment and stay in different places||Frequent travelers with flexible schedules|