Mutual Property Ownership (MPO)

At the same time, owning property has its drawbacks. A lot of people prefer to vacation in more then one place, and make limited use of their property. Owning real estate is expensive, not to mention the hassle of maintenance and repairs. If you decide to rent out your home you need to find and pay a capable property manager, or handle it yourself from a distance. Some people decide full ownership of another home is more trouble than it’s worth and buy a timeshare, only to discover that they paid a very dear price for the convenience; trading the appreciation of home ownership for an overpriced block of vacation time that sells for considerably less than what it cost.

We think there's a better model then dealing with the hassle of owning a second home yourself or throwing away money on timeshares. If you are looking for appreciation and rental income from a true equity real estate investment, the convenience of professional property management, and the ability to enjoy a vacation in more than one desirable location, you might want to consider Mutual Property Ownership.

What is MPO and how does it work?

Mutual Property Ownership (MPO) is a unique concept that allows a group of people to pool their money and collectively own a portfolio of high-quality vacation homes in a variety of attractive locations worldwide. Properties are purchased and managed to produce positive cash flow from rental income while the properties appreciate in value and the owners make use of beautiful homes in a variety of appealing resort destinations for their vacations. MPO is not a timeshare!

MPO generally begins with the formation of a Limited Liability Company (LLC), a legal structure that provides a number of important benefits and liability protections for the investors (members). Investors purchase shares (units) of the LLC, with at least one of the investors being an experienced real estate professional who serves as the company’s business manager. Since the manager is an investor in the company, they have a personal stake in its success. Rather than receiving a set management fee, the manager(s) receive payment for their services via performance based incentives, such as a share of rental income and/or of proceeds when properties are profitably sold. There are no hidden charges and no markups on the purchase of properties. If the investors are not happy with the manager’s performance, they can collectively replace him/her. This investor-friendly model is the heart of the MPO structure.

With MPO, property is frequently purchased on an all cash basis, reducing or eliminating mortgages, points, and acquisition fees and allowing a larger percentage of the cash flow from rental income to be paid to the investors, while the business itself and not the individual investors are responsible for the property taxes, condo fees, utilities, repairs etc. This leaves the investors free to enjoy vacations in a different (or the same) location every year, on dates of their choosing, with most of the pleasures and few of the worries or expenses associated with home ownership. The initial investment is typically 10-25% of the cost of purchasing a second home. This buys a share of a group of high-quality homes and condominiums in a variety of locations, a far more diversified investment then putting all your eggs in one basket by owning a single vacation home yourself.

This website is intended to provide some general guidelines as to how a business utilizing the MPO concept operates. This is not an offer to invest in any particular business or sell any security. MPO investments can only be offered to suitable investors with the appropriate legal documents. Every potential investor should be always review all information with their legal and financial advisors when considering any investment.

The Founding Principles of MPO

Mutual Ownership of Resort Properties
A group of investors collectively own multiple properties, increasing diversification and reducing risk.

A profit-oriented investment
An important goal of the business is to produce cash flow for investors from rental income and the sale of appreciated property.

Professional management
Properties are purchased, sold and managed by experienced business/real estate professionals.

Investor-friendly business structure
Properties are purchased/sold without markups or hidden fees. Manager(s) invest their own money in the business and are paid for their services with performance based incentives, aligning their interests with those of the investors.

Flexible, stress-free vacation time
Owners enjoy vacations in their own properties on dates of their choice, with most of the pleasures and far less expense and/or responsibility for property management than owning a vacation home themselves.