FAQ
1 / How does Co-Ownership work?
Think of it as purchasing a home with a friend or group of friends. This approach allows you to share the time at the property and most importantly the expenses for the property with like minded co-owners
2 / Is This Like a Time Share?
No, Co-Ownership is buying into real ownership of real estate and is designed to keep costs down for all co-owners. With Co-ownership your investment doesn’t end.
A Time Share, in most cases means simply buying the “right” to use a vacation property for a specific amount of time. That means, no true ownership to the property.
3 / Is this Legal in the state of Utah?
Yes, each Co-Owner will be a member of the LLC which owns the real estate. If a owner wants to sell they can at anytime. The remaining owners will have first right to purchase. If other members don’t want to buy, then the owner
The remaining owners will have first right to purchase at a fair market value. If there is no interest then the owner wishing to sell can list their share with a real estate agent or use local classifieds/social media to find a buyer.
4 / Do I have to pay cash?
Option 1: Purchase ownership by paying cash. There cannot and will NOT be any liens against the actual Vacation Home, so you will need to tap into your own resources, personal assets, home equity loan, etc.
Option 2: Qualified buyers can finance your ownership through a seller finance option.
5 / How much does a share of Co-Ownership Cost?
Option 1: Cash price
3 week Share $65,000
4 weeks share $75,000
6 week share $109,500
Option 2: Financing is same as cash price
Down payment is 20% (everyone needs skin in the game.
Monthly Payments can be amortized on a 15, 30 or 40 year note. (See sellers financing agreement)
The balance has no prepayment penalty and can be paid off at any time!
6 / Who is in charge?
The Co-Owners are in charge. Each owner will have 1 vote per share when necessary to make a decision on things such as furnishings and other sizeable expenditures. However, the manager(s) as designated in the operating agreement, can and will be the glue to work through the details and maintain the budget. The manager(s) will be the single source of the calendar and keeping track of who is staying in the home from week to week. The manager(s) will be sending a quarterly and yearly budget and expense reports to all the owners. At all times the LLC bank account along with the ledger of deposits and expenditures will be transparent to all members. Once a year a zoom call will be held to allow for owner in-put and voting for changes moving forward.
7 / When Can I use my vacation home?
The selection of the weeks will be given based on the order of purchase. Every year the selection will rotate based on seniority. Owners can request to trade weeks with one another.
8 / Can my friends or family use the vacation home?
Absolutely. The Co-Owner will still be responsible for informing the manager (s) who is using the property and will ultimately be responsible for any damages or costs associated with the friend or family stay. It is expected that responsible adults age 21 or older will be part of the group each use (no use solely by teenagers). Online rentals, Airbnb, and vrbo are not allowed as the homes is not zoned for nightly rentals.
9 / What is included with the Vacation Home?
The home is set up with all necessary furnishings to sleep two families comfortably. The home has a King bed in the master suite and a king size bed in the second bedroom., a full over queen in the third bedroom and the fourth bedroom has 4 full beds (bunk beds).All necessary dinnerware and linens are part of the home. The home has 75-inch TV in the living area, a 65-inch in the upstairs loft, a 50-inch in the master bedroom and 43- inch TV’s in the 2nd and 3rd bedrooms. Soaps, shampoos, toilet paper and paper towels.
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This home includes a two car garage that each co owner will have access to during their weeks.
The home is equipped with a propane BBQ grill on the patio, a propane fireplace, and patio furniture.
The upstairs deck off the master is furnished with seating as well.
10 / Does the home have amenities?
The home is located in the coveted Desert Color community and owners will have access to a 2.5 acre lagoon, a swimming pool, hot tub, walking paths, Parks, basketball and more.
11 / What about cleaning and maintenance?
A professional cleaning company will come in after each use. For the safety and comfort of the next user, there won’t be an option to not use the cleaning company. The cleaning lady will do minimal laundry, and reasonable cleaning.
Simple maintenance can be done by us as owners to keep costs down bigger things will be hired out. Co- owners will be responsible to notify the manager(s) when maintenance is needed.
12 / Are smoking and pets allowed?
No smoking, vaping, illegal drug use, etc. will be allowed. Smoking is not allowed on the premises. No animals will be allowed in the home or on the property.
13 / What will be the monthly cost of my ownership.
$37.50 per week owned per month ($150 for a 4 week ownership) this includes all utilities, Home insurance, yearly taxes, HOA fees, utilities, maintenance fees and cleaning fees. Owners will not be required to pay a cleaning fee at the time of their stay. The cleaning fee for any unused week will be kept in the account and go toward maintenance or other expenses. No refunds!
