FAQ
Who is Pursuit for?
We’re for anyone who wants to invest in a tangible, tax efficient, appreciating asset that they can enjoy with friends and family. We’re for the family who cares about building their legacy, enjoying the wild, and stewarding scarce resources for generations.
How does Pursuit select the properties?
Our expert team is dedicated to finding the perfect ranch for you, your interests, and your lifestyle. We evaluate each property based on numerous criteria including recreational quality and potential, agricultural output opportunity, proximity to an airport, general location, and stunning landscape.
How are share prices determined?
Price per share is determined by the property price and the number of owners that comprise the Owner Group (groups decide and typically shares are divided between six to eight investors). Pursuit’s upfront fee is baked into each price per share (i.e. there are no additional upfront fees due to Pursuit).
Is it possible to finance a share?
Yes, we have partners that can lend against your share of the LLC. Contact Pursuit to discuss further.
Can I visit the property?
Most properties will be available to tour with a Pursuit representative. See our How It Works page for more details.
What is the property management fee and what is included?
The Pursuit Properties management fee is changed annually and it covers the cost of the Pursuit team’s involvement in managing the property. Fees vary based on property requirements and the involvement that’s required from our service network. All costs are split amongst owners. If Owner Groups determine that they no longer wish engage Pursuit’s management services, Pursuit can be relieved of our management duties.
How are the ranch properties insured?
Each property and buyer group will be insured through the LLC that owns and operates the property. Pursuit, on behalf of the LLC, will obtain insurance quotes and recommendations to protect against typical risks on the property (personal injury, property damage, D&O, etc.). Buyers groups will be able to review the insurance packages and will vote to bind coverages. The cost of insurance will be treated as an ongoing operating expense, similar to maintenance and cleaning.
What’s the legal structure of the deal?
An LLC, “Owners Club” is created and the number of shares reflect the number of investors in the Owners Club., Each owner purchases at least one of the LLC shares as an equity purchase. Pursuit acts as the governance and enforcement body for the LLC agreements, which include the property rules. Each share has equal voting and economic rights, unless specific exceptions are agreed upon by a vote of the entire ownership group.
Can I buy more than one share?
Yes!
How does Pursuit make money?
We charge an upfront fee (taken out of the purchase price per share) and an annual ongoing management fee.
Do I have to be an Accredited Investor?
Yes.
Do these investments qualify for a 1031 Exchange?
Please contact Pursuit for more information on alternative legal structures that can qualify for a 1031 Exchange.
Tax Advantages
Conservation tax incentives offer tremendous personal economic benefits to those who want to preserve the natural resources of expansive properties.
There are various tax incentives in place for rural lands, including those for wetlands restoration, species reintroduction, carbon sequestration, and alternative energy.
Agricultural properties typically benefit from low property taxes and the ability to deduct qualified expenses incurred on the property.
Speak to your tax advisor or attorney for more information.
What kinds of properties does Pursuit offer?
We offer various types of properties and we’re happy to work internationally. Let us know what you’re looking for, and we will source a property that fits your needs and lifestyle. Common property types include lifestyle ranches, big game and bird hunting properties, ranches with backcountry skiing access, and fly fishing properties. Many ranches have multiple recreational opportunities. We’ll source ranches that are the best of their kind and make them available to you.
Why should I invest in rural real estate?
Trends like digital fatigue, more time and flexibility with work, and natural resource scarcity all contribute to the growing value of rural real estate. Additionally, exquisite ranch properties are scarce and often insulated from market instability and inflation. "Land-banking money” has been a longstanding response to volatility given the investment stability and emotional value of holding a tangible asset that possesses important natural resources and recreational interest. An abundance of demand and low availability puts owners in control of how and when they monetize their assets.
What are the benefits of co-ownership?
Access world class properties without the maintenance hassles or the price tag. You can enjoy your ranch through every season with the peace of mind that it will be cared for. Collective cost sharing for operations and maintenance fees, insurance, and taxes are shared by the Owners’ Club, relieving the burden of an otherwise large expense.
Additional benefits include:
Access to our expertise in tax, credits, and ranch operations via Pursuit’s network of specialists.
Large properties often offer meaningful tax and incentive benefits that can dramatically improve your return on investment.
Flexibility for buying and selling fractional shares.
Buy more shares if you want to benefit from the appreciation and sell when you're ready.
Historical appreciation of high-quality recreational properties is 7%+ per year, per broker data.
Monetize experiences on your ranch via Pursuit’s experience marketplace.
Can I refer a friend or colleague?
Yes! In fact, we have a referral program. Anyone who refers an owner will receive $10,000 for each fraction purchased (or Pursuit will donate that amount to charity on your behalf).
How do you vet members of the Owners’ Club?
Many of our owners come through a referral, however we vet potential buyers throughout the entire purchase process. Other Club Members may meet the potential owner and the entire group may meet prior to signing documents. Though unlikely, an Owners’ Club may vote to remove a bad actor, if necessary. Owners’ Clubs that assemble themselves will receive a 1% discount for each fractional share purchased as part of the group (e.g. a group of 4 fractional share buyers will each get a 4% discount off the purchase price).
How much time can I spend on the property?
Pursuit intends to allow owners to spend as much time on the property as they wish. Depending on the property, the amount of housing and acreage will govern how easy it is for owners to share the space. As such, Owners’ usage of the property will be officially determined by the property rules specified in the LLC agreement.
How are property rules determined?
Pursuit has compiled a list of best practices that are proposed as property rules in the LLC agreement. Properties vary in their accommodations, size, and available activities, so these rules will be tailored to fit the specific property. Additionally, Owners Clubs will also have a say in what rules are established, as groups vary on how they would like the property to be enjoyed. By signing the LLC agreement, an owner agrees to the rules that are codified in that document.
Why would I want rules for the property?
Rules are what differentiate great clubs from the rest. Picking the right rules and enforcing them consistently can be a difficult task for friend and family groups to perform on their own. Often informal groups forget rules or add rules later as a reaction to a bad actor, a loved one has to be the designated “bad guy”, or certain people get away with abusing the property. Pursuit allows you to avoid all the drama by unemotionally helping you select and enforce the rules. That way the property doesn’t get abused, families and friends enjoy more harmony, and best industry practices can be employed.
Can rules or LLC terms be changed?
Yes, by vote of the Owners Club members, rules and terms can be changed.
What if I want to sell my share?
We look for long-term owners, however you may sell your share whenever you like. You enjoy the appreciation. If you decide to sell, Pursuit will help you market the share. Before any shareholder sells their share(s), the Owners Club and Pursuit have rights of first refusal to purchase, which serves to protect the group.
I’m a real estate broker, can I participate?
Pursuit brings homeowners a new way to invest in recreational and legacy-building properties through turnkey co-ownership of world-class ranches. Offer a new option to offer your clients.