What to Expect as an airEquity Shareholder

A lot of investors ask the same question after they read about fractional short-term rentals for the first time: "Okay — but what does this actually look like once I’m in?" It’s a fair question, and the honest answer is that the day-to-day experience of being an airEquity shareholder is calmer than most people expect. Here is what you can plan on.

Onboarding

Everything starts with verification. Because airEquity properties are offered under SEC Regulation D, every shareholder must be a verified accredited investor. You will complete accredited-investor verification, review and e-sign the airEquity Holdings offering documents, and choose an initial investment amount starting at $10,000. Your subscription is initially for Holdings shares; you later select and reconfirm allocations among available property offerings.

Establish Your Escrow Account

After signing, you send capital directly to Enterprise Bank & Trust, the independent third-party escrow agent. Capital remains queued and unallocated under the Offering Documents until you select and reconfirm a property allocation.

Initiate Investor Agreements

Before initiating a wire transfer, you receive the airEquity Holdings PPM, Subscription Agreement, Operating Agreement, and escrow instructions to review and e-sign. Once Enterprise Bank & Trust confirms receipt, your capital remains queued and unallocated. Withdrawal and refund rights are governed by the signed Offering Documents.

Choose and Reconfirm an Allocation

Available property offerings and their financial plans are presented for your review. You choose how to allocate queued capital, then affirmatively reconfirm the allocation. That reconfirmation begins the disclosed 72-hour adjustment and cancellation window. If you do not proceed, unallocated capital remains with Enterprise Bank & Trust under the Offering Documents.

Property Structure

After allocations are reconfirmed, airEquity Holdings forms the applicable Property LLC. At closing, that LLC purchases and holds title to the home, while each participating investor's corresponding Holdings shares convert into documented Property LLC membership shares based on the reconfirmed allocation.

Property Purchase

A real estate closing agent or attorney conducts the purchase transaction. After the allocation window closes and closing conditions are satisfied, Enterprise Bank & Trust releases the assigned capital directly to that closing agent under the signed instructions.

Closing and launch

Once a property closes, the Property LLC takes title and each participating investor's corresponding Holdings shares convert into documented Property LLC membership shares. Behind the scenes, our team is busy creating LLC bank accounts, management structure, the STR design, sourcing furnishings, and preparing the listing description to create consumer excitement. You will get notifications as different milestones are completed. We'll be sharing photos and video, so you can see the transformation. When the property goes live on booking platforms, you will see it on your dashboard.

You don’t need to do anything during this phase. The point of fractional ownership is that the operational lift sits with the operator — not with you. Enjoy the journey!

Distributions

Distributions are the part most investors care about. Each Property LLC may evaluate distributions quarterly after paying expenses and establishing reserves. Any distribution depends on actual results, manager determinations, and the governing documents; no amount or timing is guaranteed. You'll be able to download any earnings and tax statements that are issued.

A few things to keep in mind:

• The first few quarters after launch may be a ramp-up phase as bookings and reviews develop
• If declared, distributions are calculated after operating costs, taxes, insurance, reserves, and the management fee

Reporting and visibility

Your dashboard is the ideal source of information and confidence. You can see every property you invest in and your documented Property LLC ownership percentage, revenue, and distributions to date, along with your overall portfolio performance. We believe shareholders should have valid information at their fingertips to answer their own questions without having to email anyone — and the dashboard is built to make that possible.

Tax documents are issued as applicable by each entity in which you hold an interest. Investors in multiple Property LLCs may receive multiple Schedule K-1s. Consult your own tax advisor about your circumstances.

What you do NOT have to deal with

This is the part that often surprises new shareholders. As an airEquity investor:

• You'll never need to interact with guests
• You'll never worry about scheduling the cleaning team
• You'll never need to consider daily pricing
• You'll never need to worry about calling a plumber or handyman
• You never co-sign a mortgage or guarantee any debt
• You never receive a 2 a.m. call about a hot tub issue

airEquity's team handles all of that and much more! Your job is to choose what amount to invest and manage your earnings. Everything operational is ours.

Holding period

Short-term rental properties are generally intended as long-term holdings. If a property is eventually sold, any distribution of net proceeds depends on the sale, costs, governing documents, and applicable approvals; appreciation and proceeds are not guaranteed.

Fractional STR investments are not designed to be traded in and out monthly. They are designed to behave like true real estate, because that is what they are. Returns, like liquidity and distributions, are not guaranteed and vary by property and market conditions.

Exit Options

We also understand life happens and decisions change. Property LLC shares are restricted and illiquid. Transfer requests and any property-sale vote are governed by the applicable Operating Agreement, and no buyer, sale, timing, liquidity, distribution, or profit is guaranteed.

What “success” looks like as a shareholder

The airEquity model is designed for investors who want to select property allocations, monitor documented Property LLC shares and performance, and leave day-to-day STR operations to professionals. Results, distributions, liquidity, and growth are not guaranteed.

If that is the kind of investing you have been looking for, you’re in the right place.