We have been real estate investing for many years and have built up a wealth of experience. There are a few myths out there that must be talked about.:
1.You can't get financing on Fractional Real Estate.
Rubbish ? Financing a fractional second home or vacation home is just like financing your primary home. The type of financing will require twenty percent down and believe it or not, you can also refinance your fractional interest. How good is that?Tax Free Refinancing!
You can learn more about EZ Fractional Financing at our Webinar, sign up at http://www.EZFractionals.com
2.Only big resorts or developers can fractionalize their vacation properties.
Rubbish - It is projected that there are roughly 160 resorts throughout the world that offer fractional ownership, and combined this industry has generated almost $1.1 billion dollars in sales (in terms of volume this represents an increase of almost 100% over the volume held in 2003). However, you can fractionalize a single family home.
In fact, because there are few alternatives to resort fractionalization, and the inventory is fairly low, the demand for these fractionals is extremely high; the average fractional in high volume vacation destinations sees occupancy of 95% during peak seasons (spring and summer in Florida), and roughly around 87% during off-peak seasons. In general, because many resort fractionals are sold during the pre-construction phase, full inventory is sold within a matter of one year. This type of demand further legitimizes the ?insider? fractional business model, especially when considering the added benefits of purchasing a fractional from a niche real estate investor opposed to a resort.
3.You can't generate cash flow or rental revenue from fractional real estate
Rubbish to the myths a 3rd time! This is the beauty of having the ?insider? knowledge to ?how to? fractionalize at http://www.EZFractionals.com. Let us explain: As it relates to resort types of fractionals there are several key differences which make these types of fractionals dissimilar to the ?insider boutique? fractional business model:
Setting ? All of the other fractional (private club) opportunities are based in resort settings and are either condominiums or town homes. The value of these properties don't accelerate as quickly because there are generally numerous other properties onsite that are a carbon copy of each other. In addition, the real estate market dictates that single family home values increase based more defined criteria than resort properties, making the single family home investment safer.
Rental Potential ? Because resort properties must adhere to certain rules set by the resort, there is almost no ability to rent out the fraction, unless all owners agree to it, or the resort itself agrees to it. In most of the marketing materials passed out pertaining to these types of fractionals, rental income is not even mentioned as a way to maximize the value of the investment. You can rent out a boutique fractional using the ?insider? techniques.
Exit Strategies ? As the value of ?insider boutique? properties will grow based on the real estate market, and not the current expenditures of the wealthy, there will be more opportunities to exit the investment. This could include the actual selling of the home (if approved by all owners), or selling the fraction back to the other fractional owners (who will have a first right of refusal on all sales).
Overall Return on Investment ? Because ?insider boutique? fractionals provides real income potential, on a consistent basis through the utilization of rental income, and because the value growth of the property is safer, the ?insider boutique? investment can be seen as having a higher upside while providing more safety than other types of fractionals.
I hope you enjoyed this article and you can find out more about Fractional Real Estate at my website, http://www.fractionalrealestatesecrets.com
