How It Works
Profitability is built into our approach. We provide an eight-year exit strategy that mirrors the average holding period of a vacation home, and tax benefits are integral to our profit-oriented model. Rather than paying 100% of the cost and expenses for a second home during the time it’s owned, purchase and operating costs are shared among LLC members. 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. When the property is sold, the LLC is dissolved and members can realize proceeds from their investment, including their share of any gains in the value of the property that may have accrued over the eight-year LLC term. All the while, you’ll have spent a fraction of the cost compared to the traditional model of vacation homeownership. It’s simply the smarter way to own a second home.