This property can be purchased by one investor in a traditional ownership strategy: one owner, cash or mortgaged. Read more here
What is Co-Ownership
Program Highlights
- Multiple owners
- Cash purchase
- Operation manager handles the day-to-day activities
- Less hassle -> more passive
- Long term hold
- Organized as an LLC
Benefits
- Lower cash requirement
- “Out-sourced” main activities to a professional
- Higher cash flow
Program Costs
Costs vary from one property to another and are also impacted by the number of members (shares) involved w the deal.
| Setup Costs | per Share |
| $/ share | $48,000 |
| # of shares | 5 |
| Reserve funding | $2,019 |
| SDI service fee | $2,880 |
| Total | $52,899 |
The Operation Manager
SDI has collaborated with a knowledgeable individual in real estate investment within the local area to manage all the ongoing matters concerning the rental property.
The use of OM eliminates the owner’s responsibility of overseeing the daily management and maintenance of the property, as well as making decisions related to it.
Responsibilities
Although the OM is responsible for supervising and managing the daily operations, there are certain tasks that the OM is not authorized to handle or approve, and requires seeking majority owners’ approval:
- Sale the property
- Obtain a mortgage or refinance
- Approve an expense over 12,500
- Terminate or replace property management co.
- Majority owners may elect to terminate the OM
Additional Info
FAQ
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- Updated On:
- January 24, 2024
- Principal and Interest
- Property Tax
- HOA fee
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