Question 1

What does it mean to have true ownership of a home under Kaverna’s co-ownership structure? ​

Accepted Answer

Co-owners of a home under Kaverna’s fully-managed LLC structure have actual real estate ownership. Like all other forms of ownership, this “actual ownership” means owners have interest in the decision-making of the asset, proportional to their ownership amount. Owners have the right to use the home, vote on policy changes, remove Kaverna as LLC manager, sell their ownership at any time, and benefit from appreciation. More concretely, an owner of a ¼ share gets to use the home for 25% of each year, has a 25% say in how the home operates, can sell their 25% ownership to another interested owner, and more.   This is fundamentally different than a timeshare, where all you own is the right to use a property for a set amount of time each year. Instead, with Kaverna’s co-ownership structure, co-owners have true, deeded ownership in an intrinsically valuable real estate asset that’s value is backed by the value of the whole home.   There’s an easy way to test whether or not you have true ownership in a managed asset. Imagine the asset’s manager, in this case Kaverna, disappeared; in that scenario, each co-owner still owns a real home, in a real housing market that has real intrinsic value. That can't be said about a commercial timeshare program.

Question 2

How does the LLC work and what are Kaverna's roles as the LLC manager?

Accepted Answer

We’ve partnered with the industry’s top lawyers to create fully-managed, property-specific LLCs that are designed exclusively for real estate co-ownership. Each LLC will have between two and eight, fully vetted co-owners, and Kaverna acts as the home's 3rd-party manager to provide the solutions that ensure a seamless co-ownership experience with high quality legal assurances and protections. ​  As the 3rd-party co-ownership manager of the LLC, Kaverna provides an array of services: ongoing maintenance and property management; collecting all owner payments and distributing those funds to the requisite service providers / government entity; overseeing the LLC and resolving any disputes; providing the platform for owners to schedule stays, make payments, and access home support; acts as guarantor for any defaulting co-owner; and providing a dedicated Kaverna representative who provides co-owners with support and manages the home’s service providers

Question 3

How does Kaverna make money?

Accepted Answer

Kaverna makes money by charging two fees: (1) a 12% upfront service fee, based on the home value, that compensates Kaverna for aggregating the buyers, coordinating agents, forming the co-ownership arrangement, and acting as guarantor for any defaulting co-owner, and (2) a $100 per month management fee paid by each owner that compensates Kaverna for providing owners with an owner platform for scheduling stays and making payments, acting as guarantor, and providing ongoing co-ownership management, which includes a dedicated Kaverna representative who manages all the home’s property management service providers.

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Understand Kaverna's fully-managed LLC co-ownership

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