Concept

More than 600 families chose a 21-5 vacation property share over buying their own single vacation home or continue to rent here and there. There are several good reasons for that. For some families it is important to be free of the burden and responsibilities which normally follows owning a home. For others, it's the financial aspects - when you share you simply get more for your money. No matter, the approach to 21-5, it is not difficult to become captivated by the wonderful homes we find and create to our families.

It's common to have a lot of questions, when you first learn about the 21-5 concept. It can seem overwhelming with the seemingly many aspects to 21-5. But after a thorough 21-5 introduction, most questions will be answered, and you will see the simplicity in the concept.

In this section, we describe the concept in detail, the financial and legal aspects of our associations, and how the booking works, in conjunction with our support and administration functions which is part of the 21-5 experience.

Any questions left unanswered? No problem, we love questions. Please, don’t hesitate to contact us 

The concept - plain and simple

Plainly and simply put, 21-5 organizes 21 American owners, for whom we inaugurate an association (DE LLC), and then identify, acquire, and renovate 5 dream vacation homes located on 5 different carefully selected destinations. As the properties go into operation, 21-5 undertake the administrator role, and, in short, we take care of everything.

21-5 has no owner shares in the homes nor in the association. The associations are completely independent and owned solely by the 21 owners.

The owners, typically families, sign up to an association based on the "brief", 21-5 has published in the market and which in detail describes the type of properties you become co-owner of, and what the price threshold is to participate.

Therefore, when the association is inaugurated, no property has yet been bought. We might already have our sights set on some real estate opportunities from our market research on each destination, but we cannot buy until the deposits have been made to the association.

Contact V.P. Tomas Bruun to order a brief if you haven't already received your copy. Send an e-mail to: tb@21-5.com

So much more value

 

 

21-5 makes sense to more and more families looking to buy their own vacation property, because with this model you will have so much more for the same - or less investment.

Folks buying a comparable single home on the locations 21-5 offers and with comparable features will know, that you do not get a whole lot of property options below $1 million.

The illustration demonstrates the way we build additional value for home owners. You can invest $950,000 in one property.

Alternatively, a family can invest $950,000, the same amount, with 21-5. With 21-5 you become co-owner of no less than 5 beautiful vacation homes located on 5 different, but well-known, and attractive destinations in North America. Only, the average value of each home is about 4 times your investment.

On average the homes will be worth about $3,990,000 each. That is the financial power of the 21-5 co-sharing model and one of the main reasons why it makes a lot of sense for many families.

Why settle for less? is tempting to ask, when you now have the option to add so much value by joining an association. 21 owners come together and own 5 dream vacation properties, in a proven model. Naturally, there is a saturation point with which there are too many families in an association sharing 5 homes. You can read and see more about this important consideration in the "We get the vacation time we want" section of this website - click here.

Revitalizing family traditions

Trouble finding a vacation form exciting everyone in the family - including the kids? With 21-5 you create the opportunity to get and go together in a new way in wonderful surroundings.

The 21-5 homes are ideal places to get together for the entire family. Our experience from many of the 21-5 families is that ownership in an association builds new family vacation traditions.

Being a part of 21-5 makes it much easier to assemble the family - everyone wants to come to the wonderful homes, and that has revitalized the family vacations for many of our families.

All the homes are at the same time beautiful, but also functional and designed with the family in mind. There are fold-out beds and high chairs for the youngest, and the best available internet on the destination, so that everybody can keep in touch with friends and with everything else going on out in the world.

We think it is a beautiful thing that 21-5 can enable even stronger family ties for many of our families.

21-5 Global home exchange

 

With well over 100 21-5 property opportunities scattered around in 7 countries and 25 unique destinations, it only makes sense to be able to try something new and beyond the 5 properties in each association. It could be an owner in an association with smaller properties who would like to get a week in a home with many bedrooms. It could also be tempting to try out a destination, not already in your own association, or perhaps someone would prefer to spend a holiday in a smaller home because this time there is only the two of you? There are endless ways to combine the 21-5 homes and experiences.

It absolutely makes sense to exchange properties within the 21-5 community and enjoy the peace of mind as no matter which property you go to will have that same 21-5 feel and quality you have come to expect from your own properties.

21-5 has offices in Denmark, Sweden, Norway, Canada and the United States. The Scandinavian owners have the same European destinations in the portfolios and as we start out in North America, we are adding 8 new incredible well-known locations.

The 21-5 Exchange feature is slated to open up in 2021 and the technology is already prepared and integrated in the online booking system. 

A common denominator for all the 21-5 owners is that they love their properties and care for them as were they sole owners. This is key for your ease of mind when you allow someone to stay in your property. No unpleasant surprises for the traveling party, nor for the home owners. We are all 21-5 community.

21-5 Community

Every association has its own exclusive member-site under the 21-5 website. Each owner in every association is given a username and password which you use to log on to the association member site.

On the association member site is where you will find all relevant documents pertaining to the association. The site is also where the owner community can exchange experiences with other owners, for instance experiences while using the properties or exploring the local areas.

Experiences - good or bad - shopping, restaurants, sites, suppliers of tours, you name it. Here is where you can explore and, if you like, find inspiration to your next adventures.

It is also here you will find all the administration and contact information to the other owners. Detailed information and photos of each property is also accessible here.

The member-site is therefore not only where you find all the information concerning the association, but also where you can communicate with the other owners, and in general every information essential for your ownership.

At the center of the site, and the by bar far mostly used functionality is the booking system, open 24 hours a day, 365 days a year.

 

How do we join?

Either, when you have attended one of our orientation events, or you have found sufficient insight about 21-5 and the association on offer which appeals most to you, you simply reach out to us. Click here to contact Tomas Bruun, V.P. 21-5 North America East - contact.

To join a 21-5 association, we need to meet for a cup of coffee, or just simply meet each other. We can meet person to person, or by means of a virtual meeting. We need to ensure that we get to know each other allowing us to secure a good alignment of owners in each association.

As 21-5 takes on the responsibility to organize 21 new good owners to own and share 5 vacation homes together, and who, by the way, don't know each other, it is important that we ensure the right fit for everyone. There has to be a vetting of potential owners taking place, and we do utmost to grant any "bad apples" access to an association. All the owners must be able to approve of each other, and therefore it is essential that we only give access to co-owners with the same high integrity as you. On the other hand, being a co-owner, like in a friendship or marriage, there has to be room for tolerance and some flexibility, and that each owner is OK with that. If someone is too much centered around own needs and wants, it is probably best to just buy a single owned vacation property.

Did we not take the time to ensure best possible that only good owners are joining our associations, it could potentially affect the re-sale value of the vacation property share, if you one day want to sell. A serious new owner will have the opportunity to see who the other 20 owners are, and potentially talk to some of them. Then it doesn't work if there are names no-one wants to associate with or the corporation within the association is not fluent and hassle free. Although, it is not many, we have over time turned away a few potential owners to protect the interest of the well being of an association.

That being said, the vast majority of families we meet at the initial "coffee meetings" are wonderful people whom we wholeheartedly would welcome to join an association.

Once the formality of the coffee meeting has been put behind us, and you feel that you have the complete basis of insights to satisfy an informed decision to join 21-5, we will send you the confidential private placement memorandum (PPM), for you so go through and sign.

With a signed PPM have the "admission ticket" to the inaugurating meeting. The inaugurating meeting is where the 21 new owners meet for the first time, and where the association is formally inaugurated. All participants have had a "coffee meeting" with 21-5, and signed the PPM. You are not yet legally committed to the association and no funds have been exchanged.

During the inauguration event, we start with having each family or owner presenting themselves to everyone else. In this way everyone gain insight into who the other participants are, and will feel at ease when they after the presentations sign the inauguration protocol. The inauguration protocol signing is the binding event, once everybody present have signed. In the unlikely event, someone during the inaugurating meeting feel that 21-5 has not vetted or prepared properly the group of new owners, you simple void the signing and leave the meeting. You can shred the signed PPM with no consequence legally or financially. There is nothing owed to 21-5 or the association, you have only spend some time on the potential project.

We have experienced that someone left the inauguration event without signed the protocol, and we are intensely working to prevent that it will never occur. This is the context in which the importance of the "coffee meetings" should be understood. It is the turning point to ensure a well functioning association from the very beginning.

Following the inaugurating meeting you will be asked to transfer the required funds to the association. The funds are electronically wired to the fiduciary association account. As owner you have the ease of mind that the funds of all owners are therefore secured in a non-biased and strictly governed secure setting.

We can now start the hunt for creation of the 5 ideal dream vacation homes.

What if we want to get out of 21-5?

With any investment, you will from the beginning automatically have part of your focus on an exit - how, and is it realistic to sell again?

This is normal consideration for most investment offers, but also when buying both vacation and primary properties, as well as 21-5 vacation property shares.

It is assuring for you to know that 21-5 is not timeshare. To see why not see the "What" section of the website. More importantly, 21-5 has a strong track record for successfully re-selling our vacation property shares, and with favorable profit for the owners who have sold their share in associations. 

The timeline for selling has been short - on average a few weeks, and the gross profit on average has been more than 50%. 

Quite a few families prefer to buy into an already established 21-5 association, where all the 5 properties are in use as opposed to creating an association from the ground up. The reasons are primarily:

  1. Prior to joining you will know exactly what 5 properties you will co-own.
  2. You can book your holidays right away and go.

Spring of 2020, we have re-sold 21-5 vacation property shares for about 50 families.

21-5 is taking care of everything, from finding a new owner to the share, but also to ensure that the new party is registered on the deeds of the 5 homes and other needed administrative necessities.

So far, approximately half of the resales have been due to families wanting to change to another 21-5 association. Primarily, one with larger properties, but also a few have been in need of smaller homes. Things change over a lifetime, and there are several different legitimate reasons wanting to sell. A change in family circumstances, illness and so forth.

We are very pleased on behalf of our owners that we have build a solid track record of resales should someone chose to do so at some point.

Some families own for generations, and others chose to sell and prioritize something else. The 21-5 model can accommodate both. Also in this way, 21-5 is similar to single home ownership, except we take care of everything so you don't have to.

From the view point of 21-5, it is a whole lot easier, and with a significant amount of additional advantages, to own vacation homes, compared to being a single vacation home owner. As a consequence, owners on average is expected to hold on to 21-5 vacation property shares longer than the average single owner of a vacation home. We currently expect about 2 resales annually in an association after about 3-4 years of existence. 

Resale of 21-5 vacation property shares will therefore always be a naturally integrated component of our existence and business. 

 

Contact 21-5 and we will help you fulfill your vacation home dreams.

 

Send an email to tb@21-5.com or give us a call at

+1 888 820 TRAVEL