Fractional Real Estate

**OceanView Properties** · 03-21-2008, 12:48 PM

Hi, I am a new real estate agent. I have been hearing things about fractional real estate ownership. Does anybody know anything about this?

**carlam** · 03-22-2008, 07:39 AM

Hello and welcome to the forum from Tampa, FL! I don't know anything about fractional ownership, but I do recall seeing someone else writing about it. Hang on and shortly someone will reply. Look forward to seeing your posts.

**Nealrm** · 03-23-2008, 07:00 AM

I'm not sure but is sound a little like time share. But I'm sure that someone will reply with a specific answer.

**OceanView Properties** · 03-23-2008, 08:18 AM

Thank you for your comments, I have been researching a little and found it is not anything like a timeshare. Unlike a time share with fractional investment you receive a deed for your percentage of the investment, all the tax benefits of owning a home. It is much more affordable than having a mortgage. Plus you get to spend no. of weeks in property, and no hassle with upkeep and management.

Suzanne

**riverviewrichie** · 03-23-2008, 08:49 AM

Sounds like a new alternative to timeshares.

**gmschmitz** · 03-23-2008, 12:56 PM

Welcome to the forums !! You will find some great info here to help you get started with everything !!

**PalikiCapitalLLC** · 03-23-2008, 11:17 PM

Hey Ocean View, welcome! Fractional Ownership can present itself in different ways. Cooperative apartments in NYC are an example of Fractional Ownership. People buy & receive shares of a corporation/partnership instead of receiving a deed. Very similar is Tenancy In Common (TICs) investments. Usually in TICs the shareholders are just the investors and do not live in or lease the property, like they do in a Coop. The internet has some great resources and I strongly suggest you search some of the above terms or head to your local library. Good luck!

**OceanView Properties** · 03-24-2008, 09:08 AM

Originally Posted by riverviewrichie

Sounds like a new alternative to timeshares.

Hi, riverviewrichie,
You are right, it is a better alternative. You get a deed and tax benefits. Also, if a share holder is default, it does not affect the other owners. The Property Management Co. buys back the share and resells it.

Ocean View Properties

**TomAnto** · 03-24-2008, 03:28 PM

What happens if the property management co. becomes insolvent?

**OceanView Properties** · 03-24-2008, 03:47 PM

Hi TomAnto, In response to your question about the property management co. going insolvent and what happens. Language is written into the contract that protects the investors if the PM Co. goes out of business, and the investors vote on who the new co would be.

Suzanne