A limited number of members are admitted to an LLC. Exclusive cohorts are typically made up of between two and six individuals.

Cohana coordinates the creation of a customized Single Purpose Entity (SPE) Limited Liability Company (LLC) to purchase a home. The LLC becomes the legal owner of the home.

Each buyer’s co-ownership interest in the LLC is equal to their proportionate contribution of the total purchase price.

When the perfect property is identified, each member makes a capital contribution to purchase the home. Member’s capital contributions are secured by the property, which is acquired in an all-cash transaction. While the LLC is not permitted to carry debt, a member may elect financing that doesn’t encumber the property, such as refinancing an existing primary home or a bank line of credit.

You must be an accredited investor to become a member in a Cohana-facilitated LLC. Generally speaking, the SEC defines an accredited investor as a high-net-worth individual who is able to take part in certain investments as long as they have the income, net worth, assets and/or professional experience to do so. To be considered an accredited investor, your annual income must meet or exceed $200,000 ($300,00 for joint income) for the last two years, with the expectation that your earnings will be equivalent to that amount or higher in the current year. A net worth above $1 million, individually or jointly, also satisfies the requirement.

There is a defined, eight-year exit strategy.

At the completion of the LLC eight-year term, the property is sold for its highest possible value. The members will first receive back their original capital contribution and then their share of any gains in the value of the property that may have accrued over the eight-year LLC term.

If the members are not ready to sell, there is the option to extend the LLC term via a supermajority vote. (This is one of only a few instances in which co-owners are directly involved in making property-related decisions.

Many Cohana co-owners will be able to take advantage of depreciation and 1031 tax-deferred exchanges – an advantage that’s generally not available in other partial-ownership models. You can then reinvest in other co-ownership homes or another investment property.

To alleviate the hassles of day-to-day decisions, important property management and upkeep decisions are incorporated into a Co-Tenancy Agreement after purchase of a home. Cohana oversees property management and related decisions not covered in the Co-Tenancy Agreement. Our mission is to ensure that every moment of your vacation is spent on vacation, and that there are no maintenance demands associated with owning a second home.

Annual fees cover all operating expenses associated with homeownership, including property taxes, insurance, utilities, pool and landscape services, management fees, homeowner association fees, miscellaneous repairs and maintenance, and tax return filings for the LLC. The annual operating budget is updated, presented to all homeowners, and paid for at the start of each year. Each member’s contribution is proportional to their investment in the property.

Individual owners compensate Cohana for requested concierge services, such as pre-arrival grocery shopping and activities planning.

The overall cost is no different than what any other home would cost, except that under this shared arrangement, income and expenses are divided up and shared based on the initial proportionate investment. For every property, Cohana provides a cost-per-night breakdown for the buyer.

Each member typically enjoys two to six months of use per year. Usage and occupancy are based on the percentage of ownership held by each investor.

When a home is located in an area that allows for nightly rentals, co-owners have the option to use all of their allocated weeks or donate unused weeks to the Cohana Rental Program.

The Cohana model is unique. It’s the only one of its kind that’s both profit-oriented and investment-minded: 

Defined Exit Strategy: Cohana purchases a property as a single-purpose LLC and sells eight years later as a single purpose LLC. Most other models break up an ownership entity into fractions or shares, which can be very difficult to sell later. In our model, the home is both acquired and resold as traditional real estate, ensuring a predictable and reliable process with the best chance of providing a profitable exit strategy for all stakeholders.

Open Market Opportunities: Cohana does not rely solely on Cohana co-ownership inventory, like most other models. Based on your interests, Cohana can target the best-available opportunities in the marketplace. 

No Premiums for Co-Owner Buyers: Unlike all other models, Cohana does not charge a premium to co-owners for their partial interests. Cohana Homes LLC has a 15% interest in the equity at the time of sale after eight years. Co-owner profit is Cohana’s primary objective with each LLC. We win when you win!

Investment Perspective: While in most models, tax advantages such as depreciation and 1031 tax-deferred exchanges are not available to co-owners and reserved only for the program owners, most Cohana co-owners will be able to take advantage of depreciation and 1031 tax-deferred exchanges. 

Simple Reservation System: Cohana’s rotating priority reservation system allows partners to plan their vacations with as little or as much advance notice as they choose.  

The equitable reservation system begins with each co-owner being assigned a number from 1 to 6, depending on the number of LLC partners and in the order they committed a deposit. Once assigned a number, co-owners divide their time into two equal parts. Co-owners then choose one reservation in the ensuing 12-month calendar in order, from co-owner No. 1 through No. 6, then a second reservation in an order of No. 6 to No. 1.

The order of 1 through 6 changes each year, with co-owner 2 advancing to first priority in the second year, and co-owner 1 moving to 6 in year two. By rotating the order in the selection process, all co-owners have a chance at first and second reservation priority. Cohana also assists with trading and exchanging times between co-owners.

Yes. Cohana co-owners have access to residences that are shared between sister LLCs managed by the Cohana Rental Program.