when dream meets reality
Owning a high-end home in a desirable vacation destination is a dream for many of us. But if you’re the sole owner of a luxury property in Hawaii and Oregon, you might spend more on your vacation home than you care to admit. Upkeep and maintenance can eat up the time and money you planned to spend on vacation. And if you’re carrying a mortgage, the ongoing financial burden might be more than you want to bear.
Until now, the solutions have been limited. If you love your home, turning it into a vacation rental is one possibility, but the practice is restricted in many areas. And it usually means more property management, not less. If you can afford it, you can hold on to your home, absorb your current costs and hope for a return later. Or you can sell it outright and retire the dream you had to create memories and a good investment.
Enter Cohana. We offer divestment opportunities that allow you to rediscover the joy in your property and realize the upside of your investment.
How It Works
We get to know you and your home and discuss your preferences for co-ownership.
We enter into a listing agreement and market your home among qualified buyers within our database and the broader market.
We match your preferences with prospective co-owners and create an exclusive cohort. Then we facilitate the creation of a customized LLC to purchase your home.
We oversee the escrow and closing process. From there, you get to enjoy your vacation home to the fullest, while we provide property management and maintenance, scheduling, and personalized travel and concierge services.
the benefits of selling
As a seller with Cohana, you can experience a reduction in expenses while making more of your vacations. We remove the burden of dealing with property management and upkeep. Then we take it up a notch with five-star concierge services to optimize your enjoyment of the home you love. With co-ownership, you can make the most of your investment and your experience.
Our mission is to ensure that every moment of your vacation is spent on vacation.
The benefits of co-ownership
fair and flexible
concierge & travel services
shopping & trip-planning
How many partners can be part of one LLC?
A limited number of members are admitted to an LLC. Exclusive cohorts are typically made up of between two and six individuals.
What is the legal structure of the partnership?
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.
How is the property managed and maintained?
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.
Are there annual operating expenses?
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.
How does this model compare to fractional offerings?
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.
Can I access the other residences in the Cohana system?
Yes. Cohana co-owners have access to residences that are shared between sister LLCs managed by the Cohana Rental Program.