Your Fractional Project May Require an Exchange Company

Any Developer that’s worth his salt knows and understands the value of attaching some kind of “exchange component” to his project. When I said  ”some kind’ of exchange component/company I meant it. There are a number of different “type” exchange companies and it is important for the developer to study each of them, selecting the one that most closely mirrors his project and his target market.

Richard (Dick) Ragatz, who is the absolute “gospel” of Fractional Industry data acknowledged several years ago that his research had shown 73% of all Fractional buyers reported they would not have made that purchase had an exchange component not been included with the purchase.

You might ask; Why then would any developer not automatically include an exchange company?? The main reason is that nearly all decent exchange companies cost time & money! Other developers may feel that their location is special and folks won’t want to visit elsewhere.

Others have a share size of only two or three weeks. They market/sell these shares as ideally, one or two weeks at the property and one week for rental to offset the maintenance fees. But most developers will benefit when providing the right exchange component for their project and owners regardless the cost.

As an example, one of the largest and best pure fractional exchange companies is the Registry Collection They also happen to be one of the most expensive. One of the least expensive fractional exchange systems is called Fractional Exchange simple and easy to operate. Another mid-tier exchange company is called Resort2Resort which requires membership to participate.

Bottom line is with more then a dozen fractional exchange companies available worldwide there is bound to be one that matches up with your sales and marketing efforts. Research them carefully, it is documented that it will enhance owner satisfaction, create more sales and add to the bottom line.

Sherman D. Potvin

Luxury Fractional Guide

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Renewed confidence with Fractional developers

The November elections, the record breaking Stockmarket as well as the Trump administration vowing to ease the cumbersome regulations which have strangled vacation ownership developers for so long has all breathed a breath of fresh air into the Fractional Real Estate market.

Since the beginning of 2017 I have received calls time and again from developers declaring they are now in position to create that Fractional program they had planned some years ago. It is so exciting to hear the enthusiasm they have for the shared ownership real estate marketplace.

They are fairly confident they can now obtain “end-user” financing as we see finance companies and banks once again showing interest in financing shared ownership. Developers understand that with reasonable financing for their buyers in place they can increase sales by as much as 31% according to Fractional statistics guru Richard Ragatz www.ragatzassociates.com .

In the coming months we will be adding several new properties to our collection at www.lfguide.com Just this past week we have quoted new Fractional properties in Florida (two), two in the Caribbean and two in California. We are so delighted to have the fractional marketplace back in full gear.

Because of this renewed share interest I am now encouraged to write my blog much more often. I also plan to invite guest executive/writers of Residence clubs, Exchange clubs, Yacht clubs and Private jet clubs all of whom are totally involved in “our world” describing their interesting business known as alternative, shared ownership.
Sherman D. Potvin
Luxury Fractional Guide
802-578-8631

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Equity Residences Partners with Elite Alliance

Equity Residences, an equity-based destination club founded in 2012, has partnered with Elite Alliance, an exchange service for prestigious residence clubs and vacation homes. The partnership brings members of Equity Residences dozens of new vacation options, including Argentina, Bermuda and Italy.

Equity Residences currently has six properties in their portfolio, located in Hawaii, Florida, California and Utah.

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Inspirato Destination Club Combines with Portico

Inspirato with American Express has announced that they are combining with Portico. The two will form the largest travel club with leased homes, with over 500 luxury vacation choices. The club will continue to be called Inspirato with American Express, and it will absorb all of Portico’s homes and most of its staff.

In return, Portico’s parent company, Exclusive Resorts, will gain privileged access to Inspirato’s Signature Residence Collection for its members, as well as a minority stake in Inspirato and a seat on its board. Learn more about the merger…

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Fractional Summit Europe Attracts Developers

Fractional Summit Europe took place in London at the end of February. According to FractionalTrade.com, it attracted numerous new developers from locations as diverse as Malta, the Philippines and Lithuania. A variety of sessions were held on topics that ranged from an introduction to fractionals to the current state of finance in the industry. The next summit, Fractional Summit USA, takes place in Denver in September.

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Spotlight on the Cottages at National Golf Club

Check out our Spotlight on the beautiful Cottages at National Golf Club in Pinehurst, NC. Shares starting at just $34,900. With over 40 golf courses within a thirty-mile radius, it’s no wonder this area of North Carolina is often referred to as “the Golf Capital of the World”.

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