Do you own a vacation home that has substantial untapped appreciation?
Are you a custom home builder with projects in resort areas?
Are you part of a group of family or friends that has considered "partnering" on a vacation property?
Solution: a Fractional Offering on your vacation property.
Currently Own
By selling 5/6 or 7/8 or 9/10 of your current vacation property, you can cash out of the majority of the appreciation on your property and diversify your portfolio. 1 out of 4 fractional owners purchase fractional vacation homes in other geographic locales. Wouldn't you like to have a property on the beach AND in the mountains?
Custom Home Builder
By putting a fractional offering on your custom home project, you can expand your target market and potentially increase demand. In a 180 mile radius around our project in Shaver Lake, California, the market that can afford whole ownership of our property is only 1.9% but the market that can afford a 1/10th interest of our property is over 10%! More buyers that can afford means more traffic at your site, more people talking about your beautiful property. Speaking of talking, fractional will create "buzz", especially if you are one of the first movers in a previously un-fractioned market. We have received free press in the form of newspaper articles, TV interviews and other notoriety, simply because we were offering fractions for sale. In the past three weeks our Shaver Lake property has been shown 13 times. A little buzz in this market doesn't hurt.
Go In With Friends/Family
You say "well, I'd just rather go in with my buddies and my uncle Ben than go to all that trouble." A fractional offering is even MORE relevant in this scenario than any other. If I could list all the disastrous stories I've heard of family and friends informally purchasing a vacation home together, it would be volumes. My family thought about going in together for a mountain cabin in 2000. We didn't do it because we were afraid that one person wouldn't clean, wouldn't pay bills on time, would want to sell at an inopportune moment, etc. etc. Bottom line: we missed out on a tremendous investment opportunity. The little cabins we were considering purchasing went from $150,000 to $500,000 and then we were priced out. A fractional offering can be private (just for you and your family / friends). Among other things, an appropriately structured offering sets up accounting and management structures to deal with cleanliness, monthly bills, reserve funds for replacement of life-limited assets, allows one co-owner to voluntarily sell their fraction (yes, without everyone having to sell), and has provisions to protect each other in the event a co-owner dies, divorces, declares bankruptcy.
Who can put a fractional offering on my property?
There lies the niche for fractional development and consulting at the individual home and small development level. At www.lloydlanson.com, we supply the expertise necessary to put a fractional offering in place on your property. Email me at garywinter@lloydlanson.com with some basics about your property and we'll set up a call to discuss.
Also, check out my latest article on fractioning one-off vacation homes at Nick Copley's site http://www.sherpareport.com/prc/fsbo-fractional.html
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