Hi, I’m Mark Chesney. Do you have time for a true story? In 2007, amidst a booming real estate market, a Colorado businesswoman found herself in a unique position. She owned a condominium near three popular ski resorts (an enviable asset for any avid skier). However, the financial burden of sole ownership began to weigh on her. With her ambition, she envisioned a solution that was innovative for its time (was it ever!). Her solution was this: selling shares of the property and allowing others to partake in the joys and benefits of co-ownership, while simultaneously alleviating her own financial responsibility.
The Genesis of Independent Co-ownership
This businesswoman’s story illustrates the core principles of independent co-ownership, or,“indy-co,” as I like to call it. It is “independent” because it is distinct from timeshares (ugh) or other “fractional” ownership models. In my mind, the term “fractional” has always conjured up the reality of high-cost markups and limited equity. However, indy-co empowers individuals to own a share of a property’s title, granting them genuine, independent ownership with all the associated rights and equity.
Well, this Colorado businesswoman reached out to me asking for my assistance. It is a much longer story to tell you how she did it. I’ll spare you the details. Regardless, my having what was then a budding passion was a preview to my effort in pioneering the indy-co concept.
Think of this: she sold shares of what was then a $1 million property. For each of the “partners” an exciting reality of this new condo real estate opportunity quickly set in. You guessed it! Each of them bought that $1 million condo in Colorado at a small percentage of its true value. Clearly, it was a win-win. In fact, it was a win-win-win-win-win-win!
You might ask: ‘how did those buyers, who were not previously acquainted, manage to find each other?’ If you don’t mind, let me save that story for another time. But, the language of modern technology, which makes for matching people with dreams, is a strong hint as to how it’s done in a digital world. Meanwhile, let’s savor what happened for these “partners”.
Attracting Buyers – Economic and Legal Merits
● Affordability: The co-ownership model significantly reduced the barrier to entry for buyers who desired a vacation home but couldn’t afford the exorbitant condo prices.
● Reduced Financial Risk: By spreading the risk among multiple co-owners, it mitigated the financial burden of property taxes, insurance, utilities, maintenance, potential debt service and much more.
● Flexibility: The governing documents I provided made for a clear framework in sharing property use, outlining obligations and ensuring a harmonious co-ownership experience. Plus, the agreement allowed individual owners to sell their interest or even rent their allotted time. This provided flexibility that more easily captured returns on investment.
A Model for Success
This innovative condo sale provided a solution for both the seller and the buyers. The success of the venture, and others like it, hinges on the following key elements:
● Clear Documentation: A comprehensive operating agreement essential for establishing rules for property use, expense sharing, maintenance responsibilities, and procedures for selling or renting individual shares.
● Efficient Administration: A third-party administrator to streamline the management of shared expenses and property upkeep, ensuring a worry-free experience for all co-owners.
● Transparency and Communication: Open communication and transparency among co-owners to foster trust and maintain a positive and enjoyable co-ownership experience.
Oh yes, and there was one more key element: fun! Having a third-party administrator freed up their time for lots of fun!
Want to learn more?
Check out divieight.com. Go to the Inquire link and tell us about your own dream. I mean, where would you love to affordably own a vacation home? If you’re looking for condos for sale in Colorado–or anywhere else, you’ll find out that your dream is shared by others. Then, we’ll begin to bring you opportunities.
