New Program – Co-Ownership: $53,000

Yes. If the co-owners have a majority, they can decide to terminate the OM (operations manager)

Not at the moment. Currently, the co-ownership program is open to cash only purchases.

Yes. Owning is true real estate ownership. You purchase a share in a property-specific LLC. The PROPERTY is fully managed and designed specifically for co-ownership.

Yes. The legal forms and closing process are similar to a standard home purchase. We partner with local real estate agents, property managers, title & escrow, inspection, and an operation manager.

Owning real estate with others in an LLC is not a new practice. However, “DIY” LLC co-ownership is a headache to set up and a hassle to manage, especially when personal relationships are involved. This is a fully managed LLC co-ownership solution that removes the interpersonal stress and operational hassle of going at it alone.

Home operating costs, such as property management, maintenance, taxes and repairs, are passed along directly to owners transparently with no markup. Costs are shared pro rata. Owners pay an additional monthly fee which covers LLC oversight and ongoing owner support.

Yes, as a true owner, any equity gains realized are yours.

All operating expenses are passed through at cost, and all cost statements are available to owners upon request. Overhead expenses cannot increase fees without cause.

Material changes require an ownership vote. The Operating Manager has limited authority to make non-material changes (e.g., change of address for state reporting purposes) on behalf of the ownership group.

Reserve funds are held in the individual LLC's bank account, managed by the OM. Funds are only used for the home’s repairs and maintenance. When the need for a major repair arises, LLC, via owners, will allocate funds after a transparent competitive bid process.

Every share owned holds a vote. Owners can bring major issues about their home to a vote of the group (e.g., a decision to upgrade the sound system). To call for a vote, notify your OM.

We use a multi-member manager-managed LLC. These LLCs are a unified front that represent and protect a group of buyers. Each LLC has its own bank account, tax ID number and holds title to the property.

Legal expenses, to the extent incurred on behalf of the LLC, may be passed through to the owners as a Basic Expense of the LLC. Each home has a homeowners liability insurance policy.

Generally, to the extent such costs are not covered by insurance, the LLC indemnifies owners acting on behalf of the LLC in good faith and in accordance with the LLC operating agreement. Owners who act on behalf of the LLC with gross negligence or willful misconduct, or violate of the terms of the LLC operating agreement, will not be indemnified by the LLC.

The OM works at the service of its owners. If owners decide that the OM is not providing adequate service, the owner group can vote to remove the OM as the manager of the property and self-manage the property.

Routine matters are minor repairs to keep the home in owner-ready condition. Examples are ongoing home maintenance like winterizing a deck or replacing a broken dishwasher.

Owners are not individually responsible for life-limited items that eventually need repair or replacement, like a dishwasher; those are paid for by the LLC reserve fund.

OM would step in and advocate on behalf of the LLC. However, this is very unlikely. Many properties are comprised of LLC-owned properties. We do not anticipate local zoning laws to change, given it would disrupt many households in many markets.

The deed for each property is recorded in the name of a property-specific LLC. Each owner holds their interest through the LLC, which provides for both privacy and liability protection.