HOMAD

Frequently Asked Questions

Homad is a private real estate investment club that allows retail investors to collaboratively invest in high-return, institutional-quality real estate assets in prime markets.

We intentionally maintain a small and exclusive community to focus on sourcing a limited number of top-quality deals. Emphasizing quality over quantity, we target rare opportunities that offer premium locations (liquidity & asset appreciation) and high yields. Currently, membership is exclusively open to alumni from the world’s leading business schools and individuals invited by our existing members.

Our focus on the top business school community ensures that our members invest with familiar faces, fostering trust and camaraderie. We believe in building a community with diverse backgrounds and careers but common skill sets in investment and portfolio diversification, leveraging the geographical diversity of our members to uncover potential opportunities.

Homad identifies excellent investment opportunities for its members, securing them with its own balance sheet. As a member, you decide the amount you want to commit to the total investment. Once the total is reached among our members, the investment progresses. Homad handles the preparation and subsequent management of the asset, allowing members to enjoy passive income or take advantage of member discounts for stays at any of our HOMs.

As a member, you have the flexibility to choose which opportunities to invest in, creating your diversified portfolio.

Homad prioritizes preserving value, ensuring liquidity, and providing high yields. Currently, our focus lies in the short-term rental and hospitality markets, investing in entire buildings in the city centers of top tourist destinations. We concentrate our efforts on sourcing opportunities in markets with stable currencies like USD, Euro, and GBP, ensuring value preservation for our members.

Once we identify an opportunity that meets our criteria in these markets, we called it HOM.

Homad identifies top cities for short-term rental, collaborating with local experts for due diligence.

We evaluate buildings in high-demand neighborhoods, leveraging our network to create off-market opportunities. Homad secures assets by making deposits from its balance sheet and create all the support materials to share with our members. After making investments available and reaching required amount, we move forward with the project.

Visit this link, provide your details, and indicate if you belong to any of the business schools or top universities that Homad partners with, or if you are invited by a current member to expedite your application.

Wait for any of our HOMs to open for investment. We’ll notify you in advance, giving you time to make decisions and clarify any questions before the investment window opens.

Each asset is owned by a limited liability vehicle. Members who invest in the vehicle become Limited Partners, co-owning the asset based on their committed equity. Homad serves as the manager (General Partner), overseeing operations and holding the liability.

On top, limited liability vehicles are tax through entities that provide maximum efficient for members’ returns.

Each member is only liable up to their committed capital.

Homad earns from HOM investments through a 5% set-up fee, a 2% AUM (Annual fee), and a 20% success fee. These fees cover finding opportunities, due diligence, negotiation, asset securing, managing renovation, obtaining permits, and ongoing asset management.

Once the HOM is operational, dividends from short-term rentals are distributed quarterly to each member according to their capital commitment.

Each HOM has a maturity period of 8-10 years, after which assets are sold, and proceeds distributed. Members can exit before that at any time, but they need to find other investors to buy their share. Homad can help on that process.

No. Each HOM has help account. There’s a protocol in the Limited Partnership Agreement to replace the General Partner if Homad stops operating, ensuring continuity.

Yes, with a goal of balancing entry tickets and fostering a diverse group of co-investors, HOMs are limited to 20 members, with a minimum investment of 5% of the total capital needs per HOM (typically between $50-150k).

No, members can potentially invest as much as they want up to the maximum capital left to be allocated in the HOM.

Homad partners with local experts in each market to understand and mitigate regulatory risks, tailoring investment strategies accordingly. For example, in some European cities, owning entire buildings with hospitality licenses provides flexibility and hedges against potential regulatory changes.

Yes, we want our members to enjoy twice, from their passive income, and from the joy of staying in any of our HOMs in the top destinations. Therefore our club members have a 20% discount of the short term rental price, even if they haven’t invested yet.

 

In order to book a stay, send us an email to club@hom.ad

Leveraging on the diverse and savvy network of Homad members, we will love to analyze any opportunity that shows up at your backyard, just contact us at sales@hom.ad and we will have a look.

 

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