Palm Springs Manor
Parcel One acquired July 13, 2026 — $2.525M, with exclusive option on parcels 2 & 3. First closing complete · $450K remains available. ~$21K/month current cash flow during the conversion build.
| Senior debt | Bridger · first position · funded at close · $300K |
| Seller carry | David Scott · $1.875M · 6% · 25-yr am · 10-yr · ~$11,114/mo |
| Pref equity (9%) | $300K Units · first closing funded Jul 13, 2026 · $450K (1.5 Units) available · $1.2M max |
Campus #1 opened February 2026 in Truckee. ~3 months in, not yet stabilized, but consistently booked since launch. $4,000/night peak rate per the SF Chronicle front page. $85M+ earned media · 851M+ impressions across SF Chronicle, Travel + Leisure, Town & Country, Forbes, Skift ("an entirely new category"), AFAR, Veranda. Full-year stabilization targeted in Year 3.
The Offering · $300,000 per Share
Preferred equity is offered through a private placement memorandum (PPM) at $300,000 per share. Up to three shares ($900,000) are available, with an additional one-share greenshoe permitted at the Manager's discretion (max raise $1.2M). The first share constitutes the Founder Share and carries priority of return of capital before Standard Shares upon sale or refinancing of the property (per PPM, Steve Wilson, June 12, 2026). The remaining shares are Standard Shares with identical economic terms otherwise. 9% cumulative, non-compounded preferred return · 20% target IRR · 4-tier waterfall with catch-up flip · Delaware SPE. The PPM minimum was met and the first closing funded on July 13, 2026 — Parcel One is acquired. $450,000 (1.5 shares) remains available at the Manager's discretion within the $1.2M maximum.
The Offering — Where to Focus
| Share Class | Shares | Capital | Terms |
|---|---|---|---|
| Founder Share · Subscribed | 1 Share | $300,000 | Subscribed and funded in the first closing (July 13, 2026). Carries priority of return of capital before Standard Shares upon sale or refinancing of the property. |
| Standard Shares · First Closing Funded | — | — | PPM minimum ($600,000) met; first closing funded July 13, 2026 and Parcel One acquired. |
| Remaining Availability | 1.5 Shares | $450,000 | Standard Share terms · fractional shares permitted at Manager's discretion · within the offering's $1,200,000 maximum (including greenshoe). |
Total acquisition cost: $2,525,000 · click to see the leverage structure
| Senior loan (Bridger) | $300,000 | Bridger first position · funded at close · separate first trust deed, recorded with a subordination agreement |
| Subordinated seller carry | $1,875,000 | ~74% of price at 6% · 25-yr am · 10-yr term (~$11,114/mo). Scheduled pay-downs of $50,000 (Aug 12, 2026) and $100,000 (Sep 11, 2026) step the balance to $1,725,000. The structural piece that makes the parcel pencil without bank-financing the full balance at market commercial rates — this is what makes the pref equity layer small enough to close cleanly. |
| Preferred equity (offered) | $600K – $1.2M | The offering described above · 9% cumulative non-compounded pref · Delaware SPE |
| OPCO operating reserve | $200,000 | Working capital · conversion build · FF&E · stabilization runway |
Two Share Classes · Same Economics · One Priority
| Founder Share | Standard Share | |
|---|---|---|
| Status | Subscribed · first closing (July 13, 2026) | $450K (1.5 shares) available |
| Price | $300,000 (full share only) | $300,000 per share · fractional shares permitted at Manager's discretion |
| Maximum | 1 Share ($300K) | 3 Shares ($900K) · +1 Share greenshoe at Manager's discretion |
| Preferred Return | 9.0% cumulative · non-compounded | 9.0% cumulative · non-compounded |
| Priority of Return of Capital | Yes — first in line before Standard Shares upon sale or refinancing of the property (per PPM, Steve Wilson, June 12, 2026) | No priority — pari passu with other Standard Shares |
| Distribution Waterfall | Same 4-tier: return of capital → 9% pref → 80/20 to 20% IRR → 20/80 catch-up flip | Same 4-tier: return of capital → 9% pref → 80/20 to 20% IRR → 20/80 catch-up flip |
| Stay Credit | 2 nights/year at any Guesthouse property · life of position | 2 nights/year at any Guesthouse property · life of position |
| What You Do | 1. Review this OM · 2. Review the Box Data Room (PPM, Operating Agreement, Subscription Documents — granted on request) · 3. Indicate dollar amount (fractional Standard Shares permitted); signed Subscription Documents returned via DocuSign. | |
The heart of the campus — and the math that holds.
- Pool · Clubhouse · social spine, commercial kitchen
- 12 income units (~$21K/mo current cash flow)
- Optioned, not in this parcel · the single-family home and a separate 4-unit boarding house are the two optioned parcels
- Lower basis · $2.525M vs. $3.875M whole-campus
- Tax bump contained · this parcel only
- Optionality preserved · pre-negotiated terms on parcels 2 & 3
- Strong-signal neighbor · Stay Wandery operates in Movie Colony — see callout below
Wandery — the luxury vacation-rental network that raised a $50M Series B in 2025 on top of a $100M Credit Suisse credit facility — operates multiple homes inside Movie Colony, within walking distance of 486 E. Mel. A sophisticated, well-capitalized operator independently underwriting this exact enclave for high-end short-term rentals is the strongest neighbor signal we could ask for. The market thesis they validated for free is the one we're acquiring the parcel against. We are doing something structurally different — an integrated hospitality stack (ACCESS + SPHERE + COOKS) versus their booking-platform model — but the enclave-level demand they confirmed underwrites Parcel One either way.
Pro Forma NOI · Parcel One (12 Units)
| Line | 2025 (Seller) | 2026 Proforma |
|---|---|---|
| 12 units × $1,700/mo, less vacancy | $244,800 | $229,410 |
| Operating expenses (utilities, insurance, repairs) | $54,048 | $54,048 |
| Property taxes · reassessment on transfer | $9,750 | $31,563 |
| Total expenses | $63,798 | $85,611 |
| Pro Forma NOI | $181,002 | $143,799 |
| Income Value @ 5.5% cap | $3.29M | $2.61M |
Pref Coverage · After Debt Service
The $1.875M seller carry amortizes at ~$11,114/mo — about $133,400/yr — against ~$143,800 NOI (~1.08×) and ~$20,400/mo of in-place gross rent (~1.8× cash coverage). The asset services its own financing while the units, pool, and clubhouse convert. The 9% preferred accrues during the build — unpaid quarters carry forward, not lost — and is paid at stabilization, when the converted hospitality units lift NOI well above the current long-term-rental floor.
Upside on the Cap Rate
Income Value $2.61M @ 5.5% cap against a $2.525M basis — ~$85K cushion before any conversion lift. Boutique-buyout comps in PS trade at 4.0–4.5%. Conversion lift is upside on top of the floor.
The 12 income units, the pool, and the clubhouse convert to boutique hospitality — the heart of Parcel One. The home and the 4-unit boarding house sit on the two separate optioned parcels (not part of this purchase); we control them at pre-negotiated terms but don't fund them today. Durable rental cash flow under the platform; venture upside on top of a real-estate floor, not in place of it.
Project Timeline — Acquisition, Three-Phase Renovation, Stabilization
- Parcel One acquired July 13, 2026
- First closing funded · wires received
- Bridger $300K funded · seller carry executed at $1.875M
- Tenant transition & relocation
- Restoration plans & permits honoring the original 1946 buildings
- Fixed-price GC contract · 15% contingency
- Site mobilization
- Core systems: electrical, plumbing & HVAC
- 12 hospitality units — kitchens & baths within the existing footprint
- Pool, clubhouse & common areas restored
- Interior work only — no buildings demolished
- FF&E install & Guesthouse branding
- PMS, tech stack & smart access
- Staff training · soft opening + systems test
- Grand opening · Apr 2027
- Full operations · revenue ramp
- Seasonality cycle
- Target stabilization: Year 3 (2029)
- Pref payouts at stabilization
Through closing and Reno Phases 1–2, the 12 income units generate in-place cash flow during the conversion build (~$21K/month).
All five original 1946 buildings are retained and restored. The renovation is an interior upgrade and restoration within the existing footprint — no teardowns, no new structures. The Manor’s original character is the asset.
The first equity closing completed the acquisition on July 13, 2026. The $2.75M conversion budget (incl. 15% contingency) is carried in the overall capital plan — a construction facility alongside equity — while ~$21K/month of in-place rent covers the transition. Investors are not funding a separate future renovation raise.
Identified through a data-driven approach to markets.
Across the West Coast, hundreds of short-term rental markets compete for capital and attention. The Guesthouse Moneyball system analyzed all of them. Palm Springs rose to the top — not by intuition, by data. Movie Colony, where 486 E. Mel Avenue sits, is the highest-ADR enclave in the city.
Five signals converged — a combination that rarely occurs in one market.
Palm Springs welcomes 1.6M visitors annually, driven by LA travelers 110 miles away — no flight required. Proximity to the nation's second-largest metro creates persistent baseline demand insulating revenue against seasonal lows.
Coachella and Stagecoach create a rate environment with no parallel in the Western U.S. Luxury rates during peak festival weekends average $1,528/night — a single weekend equals 3–4 weeks of off-season revenue. April 2025 occupancy +10% YoY.
Palm Springs caps STR permits at 20% of residential properties per neighborhood; new permittees limited to 26 contracts annually. Existing permitted operators hold a durable competitive advantage that cannot be replicated by new entrants.
Formal, established STR permitting system. Stable TOT 11.5% + 1% TBID. In November 2025, the city council removed a planned reduction in STR permit numbers — reinforcing long-term operational stability for existing operators.
Palm Springs' most iconic luxury enclave — original Hollywood playground of the 1940s–50s. Movie Colony commands the highest STR ADR of any neighborhood in Palm Springs ($985/night avg across all sizes). 486 E. Mel Avenue is inside this enclave.
Median Palm Springs home prices have appreciated ~30% over the last five years — adding an equity return layer to the STR income thesis. Moneyball's 6%+ appreciation threshold consistently met.
Professionally managed properties in Palm Springs outperform the broader market by over 55% in adjusted RevPAR (Natural Retreats Q1 2025 data, 1,300 properties). Operational quality is not a differentiator — it is the primary lever of return. The Guesthouse model is purpose-built for this advantage.
Sources: Airbtics, Natural Retreats Q1–Q2 2025 Market Reports, City of Palm Springs vacation rental regulations, McLean Company, Elite Traveler / HomeToGo.
Two campuses, one operating system, counter-cyclical by design.
Companies are gathering more deliberately than they ever have — off-sites, leadership weeks, partner summits, board retreats — and so are the people inside them: families, founders, friend groups, milestones worth showing up for. What everyone keeps reaching for is real time together, in a real place, with the work of hosting taken off their hands. Guesthouse is the House Charter for that.
Palm Springs Manor is Campus #2 — Step 2 in an evolving set of Guesthouse campuses. Campus #1 — Guesthouse Lake Tahoe — opened February 2026. The two markets are deliberately counter-cyclical: mountain summer balances desert winter, smoothing platform revenue across the year and giving the OPCO leverage on shared overhead. The architecture underneath is the same at both campuses — ACCESS (the umbrella experience), SPHERE (the property layer), and COOKS (the culinary & service operations layer). One operating system. Many campuses.
Campus #1 · Guesthouse Lake Tahoe (Truckee)
Tahoe is what a Guesthouse campus actually looks like: HALL (welcome center, kitchen, bakery, market, multi-purpose hall, co-working) anchoring multiple Guesthouses (private group stays), with shared outdoor spaces — orchard, market, alpine slide, fire pit. Palm Springs Manor is set up the same way on a single contiguous site: pool/clubhouse spine, the on-site home, the Residential Guesthouse, the Boarding House, operations HALL, support residence, music studio. Different geographies, same architecture.
What's next. We are evaluating Steamboat Springs (Colorado) as a Campus #3 candidate alongside several other Moneyball-screened markets. The campus arc is deliberately paced: each new campus is added only after the prior one has reached operating stability and the OPCO's shared-overhead capacity allows for clean cross-amortization. A future "evolving set of campuses" visualization — mapped in the same illustrated style as the Parcel One campus map above — will accompany this brief as the network expands.
- Geography. Truckee, CA · Sierra Nevada / Lake Tahoe basin
- Peak season. June–September (summer) + December–March (ski)
- Guest profile. Bay Area tech, multi-generational families, ski groups, summer retreats
- Format. Single private home · sleeps 12 · full chef · concierge
- Status. Operating · stabilized · cash-flow positive
- Geography. Palm Springs, CA · Movie Colony District
- Peak season. January–April (snowbird + Coachella) + November–December (holiday)
- Guest profile. LA-based luxury travelers, executive retreats, festival groups, design-conscious repeats
- Format. Hybrid campus · 12 units convert to hospitality · Boarding House (4 units) and home are options on Parcels 2–3
- Status. Parcel One acquired July 13, 2026 · $450K of pref equity available
Tahoe peak (Jun–Sep, Dec–Mar) and Palm Springs peak (Jan–Apr, Nov–Dec) overlap only in winter holidays. The other 9 months of the year, demand alternates. Cross-selling between guest bases, shared back-office, shared brand build, shared press momentum. A second campus also de-risks the operator narrative: two operating campuses + the OPCO platform layer means diversification within the operator itself.
Guesthouse Lake Tahoe — open, booking, not yet stabilized.
Campus #1 opened in Truckee in February 2026 and has been live for roughly three months. The property is not yet stabilized — the model targets stabilization in Year 3 (2028) at 65% occupancy and the underwritten ADR. What follows is early operating data, not full-year actuals. The signal it sends — bookings, press, guest mix — is the part Palm Springs gets to lean on.
What the first three months are telling us.
- Booked since opening — no significant dark nights since the doors opened
- Multi-night stays dominant · 4+ night patterns common
- Corporate / leadership retreats arriving in the mix earlier than modeled
- Repeat interest tracking ahead of underwriting assumptions
- Stabilized occupancy — first full-year cycle still in front of us
- Stabilized ADR — rate calibration still in progress across seasons
- Full-year NOI — model targets 44% margin at stabilization (Year 3)
- Cohort-level repeat data — meaningful after two seasons
Construction, FF&E, operations launch, brand build, press distribution, and guest experience have all been executed on a live property. We are not stabilized at Tahoe yet — but every category of risk that compounds when you've never opened a property has already been compressed. Palm Springs is the second deployment of a working playbook. Two campuses also matter for the model: when Palm Springs opens, the network is no longer "one property at a moment in time." The OPCO is amortizing its overhead across two campuses, and the press story moves from "they opened a hotel" to "they are building a category."
Who's building this.
Small operating team. Deep advisor bench. Hospitality leadership from Union Square Hospitality Group; architecture from Bjarke Ingels Group; real estate development from PropCo; communications from J WADE PR. The model has been thought about for a long time before it got built.
Trevor Cornwell
Hospitality has always been in the family. Trevor's father, Anthony Cornwell, was creative director at Needham & Grohmann in the 1960s — overseeing the branding for Laurance Rockefeller's RockResorts: Mauna Kea, Caneel Bay, Little Dix Bay. The original eco-luxury properties, where design and landscape were inseparable from service. Six decades later, Trevor founded Guesthouse to build what his father's era only glimpsed: a scalable hospitality model where a central Hall serves a campus of premium homes, with chef-grade kitchen, professional staff, and hotel-class infrastructure.
Borrowing from the startup days at Skyjet — the first nationwide real-time booking platform for business aviation, acquired by Bombardier in 2000 — Guesthouse applies the same asset-light operating-system thinking to lifestyle hospitality. Skyjet built the category language; here the category is the House Charter. Earlier ventures: appbackr (mobile software marketplace, backed by Intel Capital), Central Europe Today (Budapest; acquired by The Riverside Company), and the Aspire Coalition, whose military-spouse license-portability initiative is being adopted by states — most recently Florida, alongside Kansas and others.
Trevor holds the largest individual capital position in Titus House, LLC and serves as its Manager through Guesthouse Flagship Stewards, LLC — the same Manager that runs Palm Springs Flagship 486-1, LLC. He is also an early investor in the Crescent Hotel, Beverly Hills, and a graduate of Johns Hopkins University.
John Blandford
John Blandford is the founder of Blandford Group LLC, a public affairs firm, and a five-year resident of the Coachella Valley. An early investor in Guesthouse, John is leading Palm Springs Manor on the ground. He brings 25 years of real estate experience in the Washington, DC metro area, where he and a co-investor acquire, remodel, and sell homes through a selective joint venture — combining long-term single-family holds with shorter-term renovation projects. The PPM names Cornwell and Blandford as the two key principals on which the success of the Company materially depends.
- Richard Coraine · Hospitality. Union Square Hospitality Group Senior Advisor. Co-founded Hospitality Quotient. Oversaw launches of Eleven Madison Park, Gramercy Tavern, The Modern.
- Bjarke Ingels · Architecture. Founder & Creative Director of BIG (Bjarke Ingels Group). 700-person global practice working at the intersection of landscape, infrastructure, and dwelling.
- Michael Hsu · Architecture. Michael Hsu Office of Architecture — partner studio on campus design.
- Jason Rose · Culinary. Full Heart Hospitality. Sets the culinary standard across campuses.
- Haynes & Boone, Counsel. Steve Wilson and the Haynes & Boone team — Palm Springs Flagship 486-1 PPM, Operating Agreement, and Subscription Documents.
- Ryan McQueeney · CFO. Finance leadership across the OPCO and property SPEs.
- Jenn Wade · Communications. J WADE PR — runs the press engine that delivered $85M+ in earned media on the Tahoe launch.
- Pact Studio · Brand Design. Creative practice on identity, narrative, and customer-facing surfaces.
What the press noticed about Campus #1.
Two-year launch arc, 27 placements, 851M+ total impressions, $85M+ estimated earned media value (combined 2025 + Jan–Feb 2026 · source: Guesthouse PR Coverage Report). The press response was the first external signal that Guesthouse was creating a category, not just opening a hotel.
Tier-1 placements ($100K+ media value each)
Additional Coverage
Source: Guesthouse PR Coverage Report 2025 – Feb 2026 (maintained by J Wade PR). URLs link to outlet domains as fallback; specific article URLs being verified and swapped in as a rolling update. Press-link rule: every press citation in any Guesthouse deliverable carries a hyperlink — article URL where known, outlet domain as fallback.
What you sign for, where the risks sit, where the cushion is.
- Vehicle. Palm Springs Flagship 486-1, LLC — a Delaware LLC, qualified in California, single-purpose entity, managed by Guesthouse Flagship Stewards, LLC. Investor owns Percentage Interests in the SPE; the SPE owns Parcel One.
- Preferred return. 9.0% per annum, cumulative and non-compounded. Accrues during the conversion build; paid at stabilization from rental cash flow (unpaid amounts carry forward — not lost).
- Senior 1st TD. $300K from Bridger — first position, funded at close.
- Subordinate seller carry. $1.875M from David Scott at 6%, 25-yr am, 10-yr term, ~$11,114/mo. Scheduled pay-downs of $50,000 (Aug 12, 2026) and $100,000 (Sep 11, 2026) step the balance to $1.725M.
- Working capital. $200K reserve for conversion build, FF&E, stabilization.
- Build-out plan. 12 units convert to hospitality; the 4-unit Boarding House (Parcel 2) and the home (Parcel 3) are pre-negotiated options, not part of the current purchase.
- Promote / waterfall. 4-tier: (1) return of capital, (2) 9% pref to Members, (3) 80% Members / 20% Manager until Members reach a 20% per annum return on Adjusted Capital, (4) 20% Members / 80% Manager on remainder (catch-up flip).
- Stay credit. 2 nights/year at any Guesthouse property, life of the position.
- Option on remaining 2 parcels. Pre-negotiated terms, exclusive, life of the SPE.
- Diligence package (Friday, June 12, 2026 distribution). Plain-English OnePager + full PPM (6/12) + Operating Agreement (6/12) + Subscription Documents (6/12). 78-page property inspection report (Real Estate Reports, Nov 2025); executed PSA + three amendments (Amendment 3, May 13, 2026 — Parcel One in contract). Direct conversations available with David Scott (owner) and Ron Hemig (Sierra Sotheby's, buyer's agent).
- Exit. Optional at year 5 at FMV; sponsor has right of first refusal.
- No personal guaranty to the investor.
- No mandatory capital calls. Investors are not required to invest more than their initial capital contribution. Manager may lend, borrow, invite participation, or issue additional interests if shortfalls occur; dilution may result.
- Accredited-investor offering. Standard accredited certifications · no reliance on advertising · investors certify opportunity to consult attorneys, CPAs, advisors.
- Major decisions require 75% supermajority + Manager consent on a defined list (amending the Certificate of Formation, sale of substantially all assets, merger, conversion, bankruptcy, settlement of litigation over $100K).
- Transfers require Manager approval + majority-in-interest of Members. Most common estate-planning transfers are permitted; Company and Members retain right of first refusal.
- Disputes resolved via JAMS (private mediation and arbitration) for confidentiality, efficiency, and cost.
| Boutique cap rates are interest-rate-sensitive | Income Value at 5.5% cap is $2.61M against a $2.525M parcel basis. Real cushion before the math stops working. |
| Single-parcel-first means smaller initial footprint | The exclusive option preserves full-campus economics. We choose when to expand — not the seller, not a competitor. |
| Conversion risk during build-out | $21K/mo current cash flow funds operations through the build. No need to vacate to start. |
| Reassessment bumps property tax | Bump is contained to this parcel only — not the full campus. Pro forma above is post-bump. |
| Operator-dependency | Existing owner has offered to stay on-site through transition. Two operating campuses (Truckee + Palm Springs in development) plus the OPCO platform layer means diversification within the operator. |
| Hotel business license | License extended by the seller — the prior June 30, 2026 expiration is resolved. Renewal flows to the SPE on close of escrow. |
| R-2 zoning · improvements require City permits | Property is zoned R-2 under Palm Springs Zoning Code. Preliminary talks with the City have indicated approvals are available for the planned scope; the City approves future work and permits must be obtained. Manager will manage variance/exception requests if needed. |
David Scott agreed to carry $1.875M of a $2.525M parcel, roughly 74% of the price, at 6% over 10 years, 25-year amortization. Scheduled pay-downs of $50,000 (Aug 12, 2026) and $100,000 (Sep 11, 2026) step his balance to $1.725M. The payment holds at ~$11,114/mo. Typical commercial seller carry in this size range is 20–40% of price at 7–9% over 5–7 years. The terms are materially better than market, and the structural piece that lets the parcel pencil without bank-financing the full balance at today's commercial rates. The seller's confidence in the conversion plan is itself a signal.
How to Participate
Preferred equity is offered through a private placement memorandum (PPM) at $300,000 per share. Up to three shares ($900,000) are available — one Founder Share with priority of return of capital plus up to two Standard Shares — with a one-share greenshoe permitted at the Manager's discretion (max raise $1.2M). Issued by Palm Springs Flagship 486-1, LLC, a Delaware special-purpose entity managed by Guesthouse Flagship Stewards, LLC.
Think of the offering as floor → planned → upside. Two shares close the deal (the floor). A third share completes the planned offering. The greenshoe absorbs additional demand above that, with proceeds tied to specific capital-efficient uses. Working capital ($200K) sits alongside as a separate pref position. The pref-equity tranche of the $2.525M capital stack is sized to $600K at the floor (2 shares); the greenshoe expands that ceiling without changing the underlying parcel economics.
Investor Terms — At a Glance
| Issuer | Palm Springs Flagship 486-1, LLC · a Delaware limited liability company · qualified to do business in California · single-purpose entity (no commingled investments) |
| Manager | Guesthouse Flagship Stewards, LLC (Delaware LLC) · full control of decisions and actions except a defined list of fundamental matters requiring 75% majority of interests plus Manager consent (amending the Certificate of Formation, sale of substantially all assets, merger, conversion, bankruptcy, settlement of litigation over $100K) |
| Share price | $300,000 per share · single class of Percentage Interests held pro rata to cash invested |
| Offering structure | $300K per Unit. 2-Unit floor ($600K, closes the parcel) · 3-Unit total offering ($900K) · Manager may extend by up to 1.0 additional Unit ($300K) to a maximum of $1,200,000 at sole discretion. Founder Units max $300K (1 Unit). Standard Units max $900K (3 Units). One Unit = 25% of the maximum offering with extension. |
| Preferred return | 9.0% per annum, cumulative and non-compounded · accrues during the conversion build · paid at stabilization from rental cash flow · unpaid amounts carry forward (not lost) |
| Distribution waterfall | 1st — return of investor capital contributions · 2nd — 9% Preferred Return to Members · 3rd — 80% to Members / 20% to Manager until Members reach a 20% per annum return on Adjusted Capital · 4th — 20% to Members / 80% to Manager on the remainder (catch-up flip) |
| Management Fee | 4.0% of gross operational revenue · paid quarterly in advance on a good-faith estimate · reconciled periodically to actual · paid before distribution waterfall |
| Guaranty Fee | 1.0% of principal guaranteed + 9.0% simple interest (cumulative, non-compounded) to any person — including Manager or principals — who provides a personal guarantee of Company financing · payable after return of Capital Contributions to Members and Manager |
| Manager co-investment | $75,000 Manager Contribution alongside the $900K full raise (3 Units) — Manager has skin in the game |
| Target IRR | 20% per annum on Adjusted Capital, gross of catch-up flip |
| Lead investor terms | Founder Unit carries priority in return of capital before Standard Units upon sale or refinancing of the property · this is a lead-investor incentive available to the first committed share, not a structural feature of all shares |
| No mandatory capital calls | Investors are not required to invest more than their initial capital contribution. If cash shortfall occurs, the Manager may lend, borrow, invite Members to participate, or issue additional interests; dilution may result if additional capital is needed |
| Investor qualification | Accredited investors only (as defined by securities law) · investors certify no reliance on advertising, no expectation of short-term resale, opportunity to consult attorneys/CPAs/advisors, capacity to bear loss · standard accredited-investor certifications |
| Transfers | Strict limitations · require Manager approval + majority in interest of Members · most common estate-planning transfers permitted · Company and Members retain right of first refusal |
| Dispute resolution | JAMS (the leading private mediation and arbitration service) · for confidentiality, efficiency, cost |
| Stay credit | 2 nights/year at any Guesthouse property · life of the position |
| Closing | First closing funded July 13, 2026 — PPM minimum met, Parcel One acquired. Remaining $450,000 (1.5 Units) available at the Manager's discretion within the $1,200,000 maximum. |
| Exit | Optional at year 5 at FMV · sponsor has right of first refusal |
| Personal guaranty | None from the investor |
| Option on Parcels 2 & 3 | Pre-negotiated terms, exclusive, life of the SPE |
| Diligence available | Full Box data room (PPM Exhibit F · Master 2.0 → 04_PALM SPRINGS) including: PPM (6/12), Operating Agreement (6/12), Subscription Package (6/12), Plain-English OnePager, Property and Company Brochure, Purchase Documents, Title Report. Plus: executed PSA + three amendments (Amendment 3, May 13, 2026), 78-page property inspection report (Real Estate Reports, Nov 2025), direct conversations with David Scott (owner) and Ron Hemig (Sierra Sotheby's, buyer's agent). Data Room access granted on a per-investor basis through Trevor. |
PPM Use of Proceeds — 3 Units Sold ($900K Full Raise)
| Source | Dollar Amount | % of Proceeds |
| Proceeds — sales of Units | $900,000 | 92.3% |
| Manager Contribution (Manager invests alongside) | $75,000 | 7.7% |
| Total Sources | $975,000 | 100.0% |
| Uses | ||
| Purchase Downpayment | $500,000 | 51.3% |
| Improvements | $375,000 | 38.5% |
| Reserves | $100,000 | 10.3% |
| Total Uses | $975,000 | 100.0% |
Source: PPM Use of Proceeds, Palm Springs Flagship 486-1, LLC (June 12, 2026). The above shows the offering's contribution to the deal. Total acquisition cost of Parcel One is $2,525,000; the balance is funded by a $1,875,000 seller carry (David Scott, 6%, 25-yr am, 10-yr term, ~$11,114/mo) and a $300,000 Bridger first-position loan, both funded at close. Scheduled pay-downs of $50,000 (Aug 12, 2026) and $100,000 (Sep 11, 2026) step the carry to $1,725,000.
1. Review this OM. 2. Review the Box data room (request access via the button below — PPM, Operating Agreement, Subscription Documents, Property Brochure, Purchase Documents, Title Report). 3. Indicate dollar amount (fractional Standard Shares permitted); signed Subscription Documents are returned via DocuSign.
Diligence package dated Friday, June 12, 2026. PPM minimum ($600,000) met; first closing funded July 13, 2026. Remaining availability: $450,000 (1.5 shares) within the $1,200,000 maximum.
app.box.com/folder/388794746311 · calendar calendly.com/trevor_cornwell.