Frequently Asked Questions
Reasons to consider fractionalizing your property:
Can provide you with cash without disposing of your property completely.
Fractional properties sell at a premium to comparable furnished whole ownership properties.
Can provide you with ongoing property rental and property management income.
Can reduce your annual carrying charges to hold your property.
Can eliminate or reduce debt financing.
Can be a means of financing an expansion or increase in density of your existing property.
Example 1:
Agricultural Property Owner wants to build Agri-Tourism Hospitality Units. THe Property Owner uses a Fractional Shared Use Marketing Plan to Finance this Expansion. Designs, costs out and presells enough units to pay for this expansion. Constructs the units without incurring any additional long term financing, manages them once built and by so doing increases the value of his/her agricultural business.
Example 2:
Lakeshore Cabin Owner only uses property part of the year. Uses a Fractional Shared Use Marketing Plan to set up the property as 1/4 Fractionals. Sells 2 of the 1/4 interests and has funds available for other real estate investments or debt retirement. Still retains and enjoys the use of his/her property.
Example 3:
A Landowner has a Lakeshore Resort With Rental Cabins Already Constructed. Uses a Fractional Shared Use Marketing Plan to segregate and sell specific cabins. Retains management of the cabins for the new owners and uses the additional sales proceeds to expand the resort.
Example 4:
Retired/Businessperson buys a lot through a new company on an Exclusive Golf Resort. Uses a Fractional Shared Use Marketing Plan to create a Fractional Bed and Breakfast Golf Residence. Presells the bed and breakfast units to investor/golfers. Finances part of the main residence from the sale of these units. Rental Management manages the units for the new owners when they are not using them.
Example 5:
A Property Owner has a home with a Secondary Building that is rented. Uses a Fractional Shared Use Marketing Plan to sell the secondary building. Uses the funds to payout his/her existing mortgage.
Example 6:
A Property Owner owns a home in a city that is a Four Season Holiday Destination Area. Uses a Fractional Shared Use Marketing Plan to set up the property as 1/4 Fractionals. Sells 3 of the 4 Fractions and continues to manage the property for the other 3 owners. Uses the proceeds to purchase another home in the area.
Types of real property that can benefit from fractionalizing:
Resorts - from the total resort down to indivdual properties
Recreational Properties - lakefront homes , golf course homes, ski resort homes
Orchards, Ranches, Farms, Vineyards and Estate Wineries
Hotels, Motels, Campgrounds, Inns and Bed & Breakfast Operations
Small Acreages to Large Development Properties
Can provide you with cash without disposing of your property completely.
Fractional properties sell at a premium to comparable furnished whole ownership properties.
Can provide you with ongoing property rental and property management income.
Can reduce your annual carrying charges to hold your property.
Can eliminate or reduce debt financing.
Can be a means of financing an expansion or increase in density of your existing property.
Example 1:
Agricultural Property Owner wants to build Agri-Tourism Hospitality Units. THe Property Owner uses a Fractional Shared Use Marketing Plan to Finance this Expansion. Designs, costs out and presells enough units to pay for this expansion. Constructs the units without incurring any additional long term financing, manages them once built and by so doing increases the value of his/her agricultural business.
Example 2:
Lakeshore Cabin Owner only uses property part of the year. Uses a Fractional Shared Use Marketing Plan to set up the property as 1/4 Fractionals. Sells 2 of the 1/4 interests and has funds available for other real estate investments or debt retirement. Still retains and enjoys the use of his/her property.
Example 3:
A Landowner has a Lakeshore Resort With Rental Cabins Already Constructed. Uses a Fractional Shared Use Marketing Plan to segregate and sell specific cabins. Retains management of the cabins for the new owners and uses the additional sales proceeds to expand the resort.
Example 4:
Retired/Businessperson buys a lot through a new company on an Exclusive Golf Resort. Uses a Fractional Shared Use Marketing Plan to create a Fractional Bed and Breakfast Golf Residence. Presells the bed and breakfast units to investor/golfers. Finances part of the main residence from the sale of these units. Rental Management manages the units for the new owners when they are not using them.
Example 5:
A Property Owner has a home with a Secondary Building that is rented. Uses a Fractional Shared Use Marketing Plan to sell the secondary building. Uses the funds to payout his/her existing mortgage.
Example 6:
A Property Owner owns a home in a city that is a Four Season Holiday Destination Area. Uses a Fractional Shared Use Marketing Plan to set up the property as 1/4 Fractionals. Sells 3 of the 4 Fractions and continues to manage the property for the other 3 owners. Uses the proceeds to purchase another home in the area.
Types of real property that can benefit from fractionalizing:
Resorts - from the total resort down to indivdual properties
Recreational Properties - lakefront homes , golf course homes, ski resort homes
Orchards, Ranches, Farms, Vineyards and Estate Wineries
Hotels, Motels, Campgrounds, Inns and Bed & Breakfast Operations
Small Acreages to Large Development Properties
