Fractional Homes International (FHI) announced today that it now has Certified Fractional Real Estate Professionals in 11 states and 2 countries who are focusing on the fast-growing trend of fractional ownership of single-family vacation homes. Launched by leading fractional real estate consultant Sherman Potvin, FHI’s network of highly trained professionals specialize in the art of converting whole-ownership vacation homes into prime fractional vacation properties. Read the rest of this entry »
New Network of Fractional Real Estate Professionals Provides Vacation Home Buyers and Sellers with Appealing Options
March 23rd, 2009 LFG Staff Posted in Fractional Real Estate News, LFG In the News, Sherman's Desk 1 Comment »
Fractional Real Estate Trends 2008-2009, by Sherman Potvin
January 22nd, 2009 LFG Staff Posted in Fractional Real Estate News, Sherman's Desk 3 Comments »
Fractional Real Estate Trends 2008-2009
by Sherman Potvin
Even in the economic downturn of 2008, the fractional market was still the fastest growing real estate product. Luxury Fractional Guide itself has seen its listings and traffic grow exponentially.
Despite the economy, fractional real estate is steadily selling, and. They might not be selling as quickly, but people are still buying. One of the biggest issues impacting fractional sales in this market is the lack of both developer and consumer financing. With the economic downturn that we’ve experienced in the past year, financing is near impossible to get right now.
Many of the larger, branded companies are not feeling this impact because they have their own in-house financing. Smaller resorts private developers are more and more local lenders issuing fractional financing. There are pockets around the country where banks understand fractional funding and the quality of the people seeking the funding, and they are continuing to loan money. Perhaps it is because they understand that there is rarely a problem with 2nd home consumer borrowers. They’re high end people with high credit scores and great credit history. The only thing that’s holding anyone back right now from funding consumers is that the lenders still aren’t confident that they understand the product. I predict that not only one, but three or more big companies will come into this marketplace and provide funding.
Looking Forward to 2009 Read the rest of this entry »
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 »
Once 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 »
13 Essential Questions to Ask When Touring a Fractional Property
May 28th, 2008 Sherman Potvin Posted in Articles on Fractionals, Buyer Resources, Sherman's Desk No Comments »
by Sherman Potvin
Participating in an Inspection Tour or Discovery Visit at a fractional resort allows you to “try it on” and make sure that the property is the right fit for you and your family. You will have the opportunity to experience firsthand exactly what you might expect as an owner. This is your chance to ask all the right questions, make note of the answers and come to an informed decision.
Below are the 13 essential questions that you should ask during your visit. The answers to these questions should be the foundation for any decision you may make. Read the rest of this entry »
Reviews of “Fractionalize to Maximize” Book
January 22nd, 2008 LFG Staff Posted in Buyer Resources, Sherman's Desk No Comments »
Three reviews have been posted of Sherman Potvin’s book “Fractionalize to Maximize: Dividing Your Vacation Home into Profit”. Sherman is a leading fractional consultant and the founder of Luxury Fractional Guide. Here are excerpts from the reviews:
Cottage Blogger
December 3, 2007
“The first fifty pages outline what fractional ownership is; offers suggestions on why owners might choose to go this route; how to prepare a property for sale, and generally provides an insightful 'how to' on the process. I was particularly interested in the section on setting the selling price, calculating fees on expense and maintenance, and establishing a Home Owners Association contract…. For investors, realtors, and anyone seriously interested in selling their property creatively and maximizing the potential for profit, the book has a lot of value in its pages.” Read the rest of this entry »