HOW IT WORKS
Fractional vs. Traditional
Buying Fractional Real Estate is similar to a traditional real estate purchase, except that you are buying only a fraction of the property instead of the whole property. It makes a lot of sense for people who want to own a vacation home - but can't justify the expense for the short period of time that they plan to be there. Fractional ownership offers convenience and affordability to those willing to share the expenses with other families. At Fractional Management LLC we divide the properties into ¼ shares. Four owners in a single vacation home affords a nice balance of shared expenses.
Is this a timeshare?
Absolutely not! With fractional ownership, the key word is "ownership." You are not buying a week or two at the lake. You will have deeded ownership in the property itself. As with your primary home, you may benefit by the value of your second home or vacation property appreciating in value over time. And, while no one can guarantee this, history has proven these properties to be sound investments over the long haul.
Individual freedom
While your Fractional ownership "connects" you to the other owners of your vacation home, your finances are completely independent. As the owner, you choose how to finance the purchase according to your own needs and desires. One owner may pay cash for her share while another may get a mortgage. Each property owner is a separate entity therefore if any owner is unable to satisfy his or her financing obligations the other owners are unaffected as the deeds are separate.
Shared costs
Most people will agree that it just doesn't make sense to pay for the taxes, insurance, and maintenance all year long on a home that may be used infrequently. People who presently own a second home are often frustrated with the costs of maintaining a property that may sit idle for much of the year. Fractional owners share in that responsibility equally.
Who pays the bills?
Our management agency is responsible for paying all the expenses associated with each property (taxes, insurance, HOA fees, general maintenance, all utilities, cleaning and preparation fees between stays). Each owner will receive a separate billing at the end of each month for ¼ of the budgeted costs. Our agency will be responsible for collecting the monies from each owner. Before your arrival, arrangements could even be made for the property manager to coordinate stocking your vacation home with your favorite groceries, set up a tee time, or make restaurant reservations.
More for your money
When you are comfortable with the idea of sharing your vacation home as a wise and efficient investment, you may want to re-evaluate your purchasing power. Buying a share of a vacation home rather than full ownership will likely open the market for you. Perhaps your dream home moves from a lake view to a lakefront, or grows in size to accommodate friends or extended family!
How often do I get to stay at my lake home?
Each property shall have four occupancy periods (I, II, III, IV). Each occupancy period is assigned to every fourth week (one week a month). These weeks will be designated by a schedule maintained by the agency and described in the Tennant In Common Agreement. Each year the calendar weeks assigned to each occupancy period will rotate (slide forward one week) so that every owner will have an equal oppurtunity to enjoy all the different holidays.
