About co-ownership
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How co-ownership
works
Co-owners can vote on matters such as large ticket items and structural changes. Cohome acts as the LLC manager with no ownership while co-owners have exclusive voting rights equal to the number of owned shares.
Home expenses are distributed similarly to voting rights, meaning that expenses are allocated pro rata based on the number of shares owned. If you own one property share, your 1/8th of the home’s expenses are spread across the year. The other owners are paying for the other 7/8ths of the annual expenses.
As a 1/8th owner of the property, you’ll have ⅛ share of profit from renting it out and the property appreciation when you choose to sell.
Most of our long term rental holding period is 3 years, however if you decide to move on after the first 12 months, you can offer your property share at market value and we’ll help you sell.
However, Cohome properties are investments in desirable real estate markets so most co-owners are interested in holding onto the property for longer than 12 months.
For Cohome Flip, you’ll also get 1/8th of the capital gains of property through value-added renovation when the project is sold.
Overview of
ownership costs
At the time of purchase, costs include:
The share price
Includes the down payment, closing costs, insurance, taxes, sourcing fees, legal costs, inspection, capital reserves, and appraisal expenses (see Steps to buy for details).
Each month, costs include:
Monthly owner expenses
Find the right investment home for your shared investment. Monthly cost includes shared mortgage, tax, insurance and other operating expenses.
Property management fee
Discover your perfect shared investment home. Property management fee is assessed based on the rental income, ensuring healthy operations.
Cohome asset management fee & performance fee
CoHome is incentivized to exceed return goals to further enhance the return to investors.
Monthly cost and
service details
So, consider a house of 2 million with the total annual rental income of $200,000, three percent would be $6000.
$6,000 divided by 12 months = $500.
$500, divided by 8 property shares = $62.5 per share, per month (but a different property would yield a different monthly Cohome Management Fee).
Performance fee
The purpose of a performance fee is to align interests of the investors and Cohome by generating positive returns. CoHome is incentivized to exceed return goals to further enhance the return to investors.
Performance fee
covers the cost of
Cohome sources and manages relationships with local property management partners who take care of maintenance, repairs, cleaning, marketing and other details of managing the property for owners.
CoHome represents the LLC with local municipalities, aggregates and manages the property expenses such as utilities, insurance, licenses, taxes, and distribution of profits. We provide dedicated support for investor needs.
This fee is agreed upon in contract.
We understand that costs will be a core part of your decision-making process. We work hard to make real estate investing more attainable for more people, and that includes outlining the costs transparent and understandable. We’re always happy to chat in more detail about the numbers or the process.
Please contact us to discuss your questions about pricing and costs.
What we offer
As a co-owner through Cohome, you’ll own investment property in desirable areas without having to worry about juggling bills, legal documents, scheduling repairs, and managing rentals. CoHome manages all the maintenance and care for the home, bundles the bills, and handles all bookings.
Things you won’t have to stress about with your fully managed Cohome:
01 Repairs and maintenance
02 Cleaning and renting out
03 Property management
04 Keeping track of payments for utilities, insurance, taxes, etc. The LLC structure and the 6-months of reserve funds for each property ensure that co-owners won’t have to worry about the financial status of the other homeowners.
If one of the owners were to default, the reserve fund provides a buffer to allow for that person to get their finances in order, or else to have Cohome sell their property share for them, and rental income to pay for their expenses in the meanwhile.
The LLC structure and the 6-months of reserve funds for each property ensure that co-owners won’t have to worry about the financial status of the other home owners.
If one of the owners were to default, the reserve fund provides a buffer to allow for that person to get their finances in order, or else to have Cohome sell their property share for them, and rent the defaulted owner’s days to pay for their expenses in the meanwhile.
How you earn
Owning 1/8th of a home offers 44+ days for each owner to use, each year (per property share). Many homes can also be rented out, depending on local laws and rental regulations.
If renting it out is part of your plan, please be careful to note whether the Vacation Home you’re interested in can be rented out.
Homes that are rented out can bring immediate value. Cohome will ensure the home is marketed, booked, and cared for to bring an income while you’re away.
The match between costs and rental income may be variable. But if you rent out days you can’t use anyway, then at minimum the home helps to pay for itself. Meanwhile, the value of your real estate continues to appreciate.
Distribution of income from renting out happens monthly of the following month.
Your income from renting out some portion of your 44+ days (if you choose to rent while you’re away) will first be applied to your monthly property costs.
Net Rental income are distributed in the end of following month. Typically rental profit is deducted from ownership costs such as monthly mortgage, tax, insurance, management fee, utilities, other notice fees if any. We maintain reserve for 6 months of ownership costs, so any reserve additional contributed required will be also requested from owners monthly.
Enjoying your stays
For vacation homes, our homes are fully furnished, and have everything you’ll need for a relaxing, turnkey vacation experience.
Co-owners have equitable access to book special days for owner stays.
Special days like holidays and “season” days for your property are divided equitably, and everyone has a fair opportunity to book their important dates.
Each owner can have multiple stays scheduled in advance, or take advantage of any open days for a last-minute getaway.
The homes are available first to owners, who can also choose to rent out while they’re away.
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Simplified Real Estate Investing
Email us: [email protected]
or call: 408-647-6133
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