The luxury co-ownership sector continues to evolve with new and modified models. The basic structure of fractional home ownership remains consistent, and the differences come in the characteristics of each program.
One person who has recently set several changes in motion has been Adam Capes, now the CEO of a new co-ownership group called GoForth.
This company and new business model have developed from Adam's substantial experience in the fractional and destination club industries, where he helped lead multiple groups in the creation of funds, co-ownership collections and clubs.
But instead of becoming set in his ways, he often saw ideational flaws in the models, and used his experience to advance more consumer-centric views. Based on the issues he saw in some residence club sectors, he worked on solutions that would provide more seamless vacation experiences.
This year, he has launched GoForth, a new fractional co-ownership development. We recently interviewed Adam and GoForth's COO, Brandon Dale, about their new venture, a re-imagination of their prior company, My 5 Homes.
SherpaReport: Please discuss the evolution of the model that led you to create GoForth.
Adam Capes: We listened to the marketplace and tweaked our model. Pivoting is often necessary in business. After all, it wasn’t so long ago that you received DVD’s in the mail from Netflix, but the founders pivoted, and Netflix is an entirely different company today than it was back then. These ideas are often consumer-centric, built so the consumer finds life easier. It’s the same thing that we did.
SherpaReport: Last year, we interviewed you as you worked on My 5 Homes, an interesting model, where 21 families shared 5 homes, based on a European model. What happened to that, and why did you pivot from that to GoForth?
Adam Capes: This was an idea based on a very successful company out of Denmark called 21-5 where 21 families share ownership and use of 5 homes. We learned quickly that Europeans vacation a little differently from Americans. We realized that 21 people sharing 5 homes was a bit cumbersome. People wanted different destinations. We wanted to keep it simple and make availability a reality rather than a theoretical concept. We wanted to keep the ratio of owners to homes at 4 to 1, as opposed to the more typical 7 or 8 to 1 in the industry. That was simple. It was more customer-centric, as we listened to the market and worked from there.
SherpaReport: Where will your homes be located, and when?
Brandon Dale: North America, Central America, Mexico, and the Caribbean.
We’re currently in Phase 1 which includes Florida 30A from Seaside to Rosemary Beach, Costa Rica, Deer Valley, and Whistler. We’ll soon be phasing in Maui, New York City, Turks & Caicos, Scottsdale, Riviera Maya, and a few other hot spots.
We currently have a five-bedroom ski in/out in Deer Valley that’s expected to be completed in the Fall of 2024, along with a two-bedroom in the same building that has two ¼ interests still available. We also have a brand new four-bedroom in Costa Rica that’s a short walk to Tamarindo Beach and has the most incredible 360 views from the rooftop deck.
It’s been a great start. We expect 6-8 new destinations in the next year. All of which, GoForth owners will have access to.
SherpaReport: Within the last year, post-pandemic, what lessons have you learned in working and pivoting in the co-ownership arena?
Brandon Dale: Keep things simple. I think our industry can seem complicated. But it doesn’t have to be. We simply bring together four families to co-own one dream vacation home. They can access all other GoForth homes. They can rent out unused nights. They get all the best parts of shared ownership.
SherpaReport: Last year, at the end of our interview, you said there were three primary challenges in working in the shared residence field: they were availability, transparency, and liquidity. Do you still see these as challenges, especially a year later with the pivot?
Adam Capes: Yes. We also have identified our three core pillars that we offer.
They are Availability, Affordability, and Access. We offer the best availability in the industry due to our low 4 to 1 ratio and matching owners based on date preferences (you can spend the month of February in your beach house, for example).
Affordability means paying 28% for a 25% interest in a home as opposed to having to purchase the entire home, as well as paying only 25% of the operational expenses vs. 100%.
And Access means being able to travel the world, including over 14,000 homes in over 1,700 destinations through our partnership with Third Home.
If we can solve these challenges for those who seek seamless co-ownership vacations, we can help people avoid regret and live their dream lives now.