World’s First Fractional Real Estate Online Training Course Launched

May 18th, 2010 LFG Staff Posted in Buyer Resources, Fractional Real Estate News No Comments »

Fractional Homes International (FHI) announced today that it has launched the world’s first comprehensive Fractional Real Estate Online Training & Certification Course. Consisting of over 18 hours of video, 500 PowerPoint slides and a 400-page Manual, the course covers all aspects of fractional real estate development from feasibility analysis to closing the sale. Building on the success of FHI’s live training seminars, the online course allows people to become FHI Certified Fractional Professionals™ from the comfort of their own home. Read the rest of this entry »

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FHI Consultant Launches Shared Homes International

March 12th, 2010 LFG Staff Posted in Buyer Resources, Fractional Real Estate News No Comments »

Attorney Chris Stephan recently launched Shared Homes International, based in Red Deer, Alberta, Canada, with a key focus on arranging fractional ownership of cross-border vacation properties. Shared Homes International provides help with legal and tax issues, links clients with international property specialists and lenders, arranges for currency exchange, and assists in other ways. “The market is enormous,” said Stephan, adding that many people have trouble finding qualified help when buying or selling internationally.

Stephan, one of two fractional professionals in Canada certified with Fractional Homes International, has plans to start doing seminars and workshops in different cities throughout Alberta and provide basic education for Canadians interested in buying U.S. real estate. Read a recent article on Stephen’s new company here.

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Weighing Your Options: A Wealth of Incentives for Fractional Real Estate Buyers

July 22nd, 2009 LFG Staff Posted in Buyer Resources, Fractional Real Estate News 1 Comment »

The current economic climate has produced a silver lining for those buyers in a position to purchase fractional real estate now. Fractional properties and Private Residence Clubs are going all out to deliver value and deals to their consumers. Many are simply reducing their prices or increasing the number of shares to lower the entry price. But other properties are getting even more creative when it comes to meeting buyers’ needs. We are seeing “try before you buy” programs, creative financing options, fabulous Stay Packages, and more. Read the rest of this entry »

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Fractionals: The Smart Way to Own a Second Home

March 26th, 2009 LFG Staff Posted in Buyer Resources, Fractional Real Estate News No Comments »

Terry Chester, an LFG client and owner of two spectacular fractional homes on Fripp Island in South Carolina (La Coeur de Terre and L’Ange de Mer) wrote the following article sharing his perspective on why fractional ownership is a great investment is the only way to own a vacation home.

People with a wholly-owned second home on the beach will tell you that there is only one smart way to own an ocean front vacation home: DON’T. Times have changed.

Everyone seems to be tightening their collective belts. We are finally talking about the things that are critical yet were ignored as long as events would allow. It seems that choices are limited now – we are stuck with the economy, the excesses, the environment, and losses of revenue – whether from the stock market losses or lack of work production – and we are all in this big drifting arc together. Read the rest of this entry »

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Purchasing Fractional Real Estate: What to Expect When You Write That First Check

September 12th, 2008 LFG Staff Posted in Buyer Resources, Sherman's Desk 4 Comments »

by Sherman Potvin

Writing a CheckOnce you’ve made the decision to purchase a share in a fractional property or residence club, what should you know before you write that first check? The process of purchasing a fractional property is very similar to the purchase of a wholly-owned home with just a few additional items that you should be aware of.

Private Homes

If you are purchasing a share of an individually-owned private home, the process you go through will be determined by whether or not the current owner has a mortgage on the property. If so, the mortgage will need to be paid in full before you can close on your fractional share.

For example, let’s assume that the owner is selling 10 shares of the fractional home at $100,000 per share and the property has a $300,000 mortgage. The owner will then need to sell 3 shares in the home before any closing can take place. You will be expected to put down a small “soft” (refundable) deposit and to sign an agreement stating that the sale cannot take place until 3 owners have committed. How much you will be expected to put down will depend on the size and price of the fraction you are purchasing. In any case, your deposit will be put into an interest-bearing account and is refundable at any time up until you are notified that the owner has 3 committed buyers (or whatever stipulation was put into place in the agreement) and you have signed a Purchase and Sale Agreement. Read the rest of this entry »

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Legal Tips for Fractional Real Estate Buyers

August 14th, 2008 LFG Staff Posted in Buyer Resources No Comments »

by John Gosselin, Esq.

Legal Documents Owners Should Know Something About

Fractional OwnershipFractional ownership documents fall into two general categories: (i) those that are recorded in the chain of title to the co-owned property and thereby become binding on each subsequent owner even without that owner’s signature, and (ii) those that are unrecorded and bind only those that sign them.

Most fractional arrangements involve a combination of recorded documents like deeds, and unrecorded documents like management agreements, but one should not make generalizations about the kinds of documents or their names since each seller will undoubtedly use their own. Notwithstanding the fact that there are many flavors of documents, it may be useful to become familiar with some common names being used for fractional property documents like, “Declarations”, “User Agreement”, “Agreement to Purchase Real Property”, and “Bylaws.” Since there is no uniform requirement that all documents with a particular name contain the same terms and conditions, it is key that buyers review all documents carefully to make certain that they are getting what they bargained for. Read the rest of this entry »

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