Why Co-Ownership?
You're a knowledgeable real estate buyer, and you know and appreciate the benefits of real estate ownership. Yet you're tired of personally managing property day to day. Have we just described you? If so, you're exactly the sort of investor who is most drawn to our Co-Ownership Interest.
The advantages of Sole-Owned Real Estate are:
· Tax Benefits
· Wealth Preservation
· Cash Flow
· Long-Term Appreciation Potential
The advantages of Co-Ownership interests are:
· Tax Benefits
· Wealth Preservation
· Cash Flow
· Long-Term Appreciation Potential
You can see at a glance that the same advantages you appreciate in sole-owned real estate investments are yours in co-ownership properties as well. The difference? Simple: With co-ownership properties, you don't have the headaches of day-to-day management. All management duties are overseen by independent, third-party national firms.
Here's how it works:
1. A group of prospective purchasers is identified and organized under a co-ownership structure.
2. As co-owners pooling their funds, they are able to purchase a more substantial property than they would as individuals.
3. Each co-owner receives a deed title report at closing.
4. The co-owners may exit the co-ownership agreement when the majority elect to sell the property.
5. Co-owners may also sell their individual interest at any time, either to another co-owner or to a buyer outside of their co-ownership agreement. (At this point, the co-owner may either pay taxes on the profit or execute a 1031 Exchange and defer capital gains tax.)
6. Co-ownership agreements include other aspects of the IRS guidelines and enable all participants to benefit from a structured operational agreement.
Key benefits of co-ownership:
· Each co-owner has the same rights as an individual owner.
· Fee-simple deed at closing.
· Title insurance coverage.
· Pro-rata share of all net monthly income, tax benefits, and appreciation.
· Deferred capital gains taxes.
· Purchases can be made to fit exact-dollar-amount 1031 Exchange requirements.
· Third-party property and asset management with reporting responsibilities to each co-owner.
· Monthly distribution checks (typically) and an annual property operating statement.
· Economically feasible to acquire a co-ownership interest in multiple properties, decreasing risk through diversification.