When you start looking into co-ownership, you’ll quickly realize that not all models are the same. Some are designed purely for real estate investing, allowing you to buy a small piece of a rental property you may never visit. Others are built around the true experience of having a second home—a place for your family to gather and create traditions. Understanding this distinction is the most important step in your search. The right fractional ownership platform for you will align with your goals. If you’re looking for a beautiful, professionally managed getaway for personal use, you need a company that prioritizes the owner experience above all else.
Key Takeaways Get Real Ownership Without the Full Cost : Fractional ownership provides a legal stake in a luxury property , but you only pay for the portion you'll actually use. This model splits the purchase price and ongoing expenses like taxes and maintenance, making a high-end vacation home attainable.Know Your Goal: Personal Getaway or Portfolio Asset : It's essential to choose a platform that matches your objective. Companies like Fraxioned focus on providing a home for you to personally enjoy, while other platforms are designed purely for real estate investing and generating rental income.Enjoy a Fully Managed Vacation Experience : This model is ideal for those who want to simply arrive and relax. All property management, from cleaning to repairs, is handled for you, making it a poor fit if you desire total control over the property or need spontaneous, year-round access.Think of it like this: instead of buying a whole cake just for yourself, you and a few friends decide to split it. Everyone chips in for a slice and gets to enjoy it without having to pay for the entire thing. Fractional ownership applies this same simple logic to a luxury vacation home . It’s a practical way to own a beautiful property without carrying the full financial and logistical weight yourself.
So, how does this work on paper? Typically, a specific property is placed into a legal entity, like an LLC. That LLC is then divided into a set number of shares—say, eight. When you buy a share, you become a true owner of the LLC, which in turn owns the home. This isn't a timeshare; you own a real, tangible asset that you can pass down or sell in the future. This co-ownership model is what makes the dream of a second home accessible.
As a co-owner, you get to use the home for a certain number of weeks per year, which corresponds to the size of your share. Scheduling is handled through a fair and simple system, often managed by the platform, so everyone gets a chance to book holidays and prime season dates. The best part? All the tedious work of homeownership—like maintenance, cleaning, and paying utility bills—is handled for you. The costs for these services are simply split among the co-owners, making the ongoing expenses predictable and much lower than if you owned the home alone.
Why Choose Fractional Ownership Over Buying a Whole Home? The dream of owning a vacation home is powerful—a place for getaways and making memories. But the reality often involves a huge mortgage, surprise repairs, and managing a property from afar. You end up paying for 12 months of upkeep for just a few weeks of use. Fractional ownership offers a smarter path to that dream. It lets you enjoy a beautiful home without the financial strain and logistical headaches of sole ownership, aligning the cost with the time you actually spend there.
Own the Dream, Not the Full Price Tag Let’s be real: the biggest hurdle to owning a vacation home is the cost. With fractional ownership, you split the purchase price with a small group of other owners. This means you can own a share of a stunning property for a fraction of what it would cost to buy it yourself. This model of co-ownership makes luxury homes accessible, allowing you to have that beautiful mountain cabin or lakeside retreat without taking on a second massive mortgage. You get a high-quality home in a prime location, but at a price that makes sense.
All of the Fun, None of the Fixes Imagine arriving at your vacation home and everything is perfect. The house is clean, the lawn is mowed, and it’s ready for you to relax. That’s the reality with a fully managed co-ownership model. All the tedious parts of homeownership—coordinating repairs, managing utilities, and furnishing the place—are handled by a professional property manager. Your share of the annual operating costs covers everything, so you can spend your vacation time actually vacationing instead of working through a to-do list. It’s a turnkey experience designed for pure enjoyment.
Flexibility for Your Lifestyle Life changes, and your vacation plans might, too. Selling an entire vacation home can be a long, complicated process. Selling a share in a fractional property is much simpler. Because the price point is more accessible, there’s a larger pool of potential buyers, giving you more flexibility if your needs change. Plus, you’re only paying for the time you can realistically use, which prevents a beautiful home from sitting empty most of the year. It’s a modern approach that aligns your ownership with your actual lifestyle.
The Best Fractional Ownership Platforms, Compared Not all fractional ownership platforms are created equal. Some are designed for people who want to actually use and enjoy a vacation home, while others are purely investment vehicles for generating rental income or portfolio growth. The right platform for you depends entirely on your goals. Are you looking for a place to make family memories, or are you looking for a new way to invest in real estate? Let's look at some of the top players and what makes each one unique.
Fraxioned: For the True Vacation Home Experience If your dream is to own a beautiful vacation home without the headaches of full ownership, Fraxioned is designed for you. The entire model is built around the experience of co-owning a property you and your family can actually use and love. With shares typically ranging from 1/8 to 1/13, you get a generous amount of time at your home each year. Fraxioned handles all the property management, from cleaning to repairs, so you can just show up and relax. While you can rent out your unused time to help offset operating costs, the primary focus is on creating lasting memories. You can browse their current luxury listings to see the types of properties available for co-ownership.
Arrived: For Investing in Rental Homes Arrived is a great example of a platform built for pure real estate investing. It allows you to buy shares of pre-vetted single-family rentals and vacation properties with a minimum of just $100. According to Yahoo Finance, it’s a top pick for its straightforward approach, offering potential returns through quarterly dividends and property appreciation. This is a hands-off way to enter the real estate market without ever needing to visit the property. You’re investing in an asset, not a personal getaway. The goal here is financial return, making it a completely different model from experience-focused co-ownership.
Lofty: For AI-Driven Real Estate Investing Lofty takes a tech-forward approach to fractional real estate. It operates as a marketplace where you can buy tokens representing ownership in rental properties across the U.S., starting with as little as $50. The platform uses AI to vet properties, and its model is designed to make real estate investing more liquid and accessible. As with Arrived, this is an investment platform. You’re purchasing a small piece of a rental property with the goal of earning passive income and seeing your share value grow. It’s an interesting option for those who want to build a portfolio of real estate assets with very little capital.
Pacaso: For Luxury Second Home Co-Ownership Similar to Fraxioned, Pacaso focuses on co-ownership of luxury second homes for personal use. They find high-end homes in popular vacation spots and then sell shares—typically between 1/8 and 1/2—to a small group of co-owners. Pacaso creates a property-specific LLC for each home, and the buyers purchase a stake in that LLC. They also manage the property, scheduling, and maintenance, offering a turnkey solution for those who want the perks of a second home. It’s another strong choice for people who prioritize having a beautiful, professionally managed place to enjoy their vacations .
Fundrise: For a Diversified Real Estate Portfolio Fundrise offers a different flavor of fractional ownership. Instead of buying a piece of a specific property, you invest in professionally managed real estate funds, known as eREITs. These funds hold a diverse portfolio of properties, such as apartment buildings and build-for-rent homes. With a low minimum investment, Fundrise makes it easy to get broad exposure to the real estate market without having to pick individual properties. It’s a great fit for someone who wants to invest in real estate for long-term growth but prefers a diversified, fund-based approach over direct property ownership.
RealtyMogul: For a Focus on Commercial Real Estate If you’re interested in the commercial side of real estate, RealtyMogul is a platform worth exploring. It allows accredited investors to pool their money to invest in properties like apartment complexes, office buildings, and retail centers. The minimum investments are higher, typically starting at $5,000, reflecting its focus on larger-scale commercial deals. This platform is geared toward serious investors looking to add commercial real estate assets to their portfolios. It’s far removed from the world of vacation home co-ownership and is strictly an investment platform for those who meet the financial requirements.
What Are the Real Costs and Risks Involved? Fractional ownership makes owning a vacation home more accessible, but it’s still a major purchase. Going into it with a clear understanding of the costs and responsibilities is the best way to ensure a great experience. Think of it like buying any home—you’d want to know about property taxes, HOA fees, and how decisions about renovations are made. The same principle applies here, just with a few co-owners in the mix.
Being informed doesn’t mean you should be intimidated. It just means you’re being a smart buyer. The best platforms are transparent about these details because they want you to feel confident and happy with your home for years to come. This isn't about finding a hidden "catch," but rather about understanding the full picture so you can relax and enjoy your time away. Let’s walk through the key areas you’ll want to consider so you can ask the right questions and find the perfect fit for your family. We’ll cover everything from ongoing fees and what happens when you decide to sell to how property decisions are made and the realities of a changing market.
Upfront Costs and Ongoing Fees When you buy a share, your upfront cost is the price for your fraction of the home. But just like with any property, there are ongoing expenses to keep it running beautifully. These typically include property taxes, insurance, utilities, and funds for maintenance and repairs. Most platforms roll these into a monthly or quarterly fee. It’s important to get a clear breakdown of what’s included. Some companies have multiple layers of fees for things like management and administration, so you’ll want a complete picture of your total financial commitment before you sign anything. A transparent platform will lay all of this out for you from the start.
Selling Your Share: What to Know Life changes, and one day you might decide to sell your share of the vacation home. Unlike selling a stock, selling a piece of real estate isn't instant. The process can take time, and your money might be tied up for a while. This is often called a "liquidity issue" in real estate. Some platforms have a dedicated marketplace to help you resell your share, while others may have rules about how long you need to own it before selling. It’s wise to understand the exit strategy from day one. This model is designed for long-term enjoyment, not quick flips, so be prepared to hold onto your share for several years.
Shared Decisions and Property Control Co-owning a home means you’re sharing it with other families, and that includes sharing decisions. Different platforms handle this in different ways. In some models, every owner has a say in decisions about the property, from decor updates to house rules. This allows for active participation and a real sense of community ownership. Other platforms are managed by the company, meaning you can enjoy a more hands-off experience where all the maintenance and management are handled for you. Neither approach is better than the other; it just depends on how involved you want to be. Be sure to ask who makes the final call on property-related matters.
Market Changes and Platform Risks Just like any piece of real estate, the value of your vacation home can change with the market. This is a standard risk of property ownership that affects everyone, whether you own a whole home or a fraction of one. It’s a good idea to choose a platform that is clear about how it values its properties and is located in a stable, desirable vacation market. You can get a feel for this by looking at the quality and location of a company’s current listings . The goal isn’t to turn a profit, but to own a share in a wonderful home that your family can enjoy for years to come.
What Kinds of Properties Can You Co-Own? The term "fractional ownership" covers a lot of ground, and it’s easy to get the different models confused. It’s not just one type of property but a whole spectrum of real estate opportunities, each with a different purpose. Understanding the main categories is the first step in figuring out which path is right for you. Some platforms are built for creating family memories in a beautiful getaway, while others are designed for people who want to own a piece of a rental property or even a commercial building as a more passive financial holding.
The key is to match the property type with your personal goals. Are you looking for a place to escape to a few weeks a year, creating a home base for family traditions? Or are you more interested in owning property from a hands-off, financial perspective? Each model offers a completely different experience, from how you use the property to who manages it. Exploring the main types of co-ownership will help you narrow down your search and find a platform that truly fits what you’re looking for in a property. Let's look at the three main categories you'll come across: dream vacation homes, residential rentals, and commercial real estate. Each one serves a unique purpose for its owners.
Dream Vacation Homes and Second Properties This is what most people picture when they think of co-owning a home. It’s all about having that perfect getaway spot—a cabin in the mountains, a house near the lake, or a desert retreat—without the massive expense and year-round upkeep of owning it all yourself. This model is designed for personal use and enjoyment. The goal is to have a beautiful, professionally managed home waiting for you, where you can relax and make memories.
Platforms in this space, like Fraxioned, focus on high-end vacation properties in desirable locations. You buy a share that corresponds to a certain amount of time you can use the home each year. Management, cleaning, and maintenance are all handled for you, so you can just show up and enjoy your stay.
Residential Rental Properties Another popular category is co-owning residential rental properties. Unlike a vacation home you use yourself, these are single-family homes or apartments purchased with a group of people specifically to be rented out to long-term tenants. This approach is less about personal stays and more about owning a piece of an income-generating asset.
You won’t be scheduling your own family trips here. Instead, you and the other co-owners share in the rental income and expenses. Platforms that specialize in this model handle the hard parts, like finding and vetting tenants, collecting rent, and managing property issues. It’s a way to get into the rental market with a much smaller upfront cost and without the headaches of being a solo landlord.
Commercial Real Estate Fractional ownership also extends to the world of commercial real estate. This allows you to buy a small piece of a much larger property, such as an office building, a retail center, or an apartment complex. This is the most hands-off of the three models and is purely a financial arrangement. You’re not using the property yourself; you’re simply a part-owner.
This path is for those who want to diversify into commercial real estate without needing millions of dollars to do so. You invest alongside many others, and a professional management company handles the entire operation, from leasing space to managing the facilities. It’s a way to own a stake in a type of property that has traditionally been out of reach for most individuals.
How to Choose the Right Platform for You Finding the right fractional ownership platform feels a lot like finding the right home—it needs to fit your lifestyle, budget, and goals. Not all platforms are created equal. Some are designed for people looking to invest in rental properties, while others, like Fraxioned, focus on the experience of owning and enjoying a beautiful vacation home. The key is to understand what you want out of co-ownership and then find a company that aligns with that vision.
Think about what matters most to you. Is it having a dedicated, professionally managed home where you can create memories? Or are you more interested in a hands-off property that generates rental income? As you explore your options, look for transparency in how the business operates. A clear and simple process, straightforward scheduling, and a team that’s easy to reach are all signs of a platform that prioritizes its owners. The goal is to find a partner that makes second home ownership feel easy and enjoyable.
Key Features to Compare When you start comparing platforms, it’s helpful to look beyond the pretty pictures of properties. Dig into how each company manages its homes and supports its owners. A great place to start is understanding the co-ownership model itself. How many owners are there per home? How is the company structured to ensure the property is well-maintained for years to come? Look for a company that handles all the details, from cleaning and maintenance to managing bills and property taxes. This level of service is what makes co-ownership a truly hassle-free alternative to buying a whole home. Also, consider the tools they provide, like an owner portal for booking stays and managing your account.
Matching Your Budget to Minimum Investments Your budget will naturally guide your search. The cost to get started in fractional ownership varies widely depending on the platform and the type of property. Some platforms that focus on rental properties let you buy in for a very small amount, sometimes just a few hundred dollars. This is because you're buying a tiny fraction for investment purposes, not for personal use. For a true second home experience, the entry point will be higher because you're purchasing a larger share that comes with dedicated time at the property. It’s important to find a platform that offers clear financing options to make ownership more accessible. Think about what you're comfortable with and find a platform that matches your financial goals.
Finding the Right Property Type What does your dream getaway look like? Are you picturing a cozy mountain cabin for ski trips or a sunny desert escape with a pool? The type of property you want will be a major factor in choosing a platform. Some companies focus exclusively on urban condos or single-family rentals. Others, like Fraxioned, curate a collection of luxury vacation homes in sought-after destinations. Before you get too far in the process, browse the available properties. This will give you a feel for the quality, style, and locations each platform offers. Make sure their vision of a perfect vacation home aligns with yours.
Understanding the Fee Structures No one likes surprise costs, so getting a clear picture of the fee structure is essential. Generally, you’ll have the initial cost of purchasing your share of the home. After that, there are ongoing monthly fees that cover the property's operating expenses. These typically include property taxes, insurance, utilities, cleaning, and professional management. A transparent platform will break down these costs for you so you know exactly what to expect. Don’t hesitate to ask questions and review the FAQ page to understand all the details. The right company will be upfront about all expenses, ensuring you can simply relax and enjoy your home.
What's the Co-Ownership Experience Really Like? The idea of co-owning a vacation home can feel a little abstract at first. What does it actually look like day-to-day? In short, it’s designed to feel like owning a whole home, but without the headaches and steep costs. The experience is centered on simplicity and enjoyment. Instead of spending your weekends on upkeep or worrying about a pipe bursting while you’re away, you get to focus on what matters: relaxing and making memories with the people you love.
The co-ownership model brings together a small, vetted group of like-minded owners for each property. This isn't a crowded timeshare; it's a genuine ownership stake in a beautiful home. You have a dedicated, professional team managing everything from cleaning and maintenance to landscaping and bill payments. Your main job is to decide when you want to visit. The entire process, from booking your stays to communicating with the management team, is handled through a simple, modern platform. It’s a practical and accessible way to make that dream of a family cabin or beach house a reality.
The Process: From Application to Getting Your Keys Getting started is more straightforward than you might think. The first step is the fun part: browsing listings to find a home that fits your family’s style and vacation dreams. Once you’ve found the one, you’ll go through a simple application process. The company helps you form an LLC with the other co-owners, which is the legal entity that will own the home. This structure protects everyone and clarifies ownership.
If you need it, you can also explore financing options to purchase your share. After that, it’s a standard real estate closing process, but simplified, since the legal and financial frameworks are already in place. Before you know it, you’ll have the keys—or more likely, the keycode—and can start planning your first stay.
Who Handles Maintenance and Management? This is where co-ownership truly shines. Forget about finding a reliable plumber from hundreds of miles away or spending the first day of your vacation mowing the lawn. A professional management team handles all property maintenance and upkeep. This includes everything from routine cleaning between stays and stocking essentials to managing major repairs and seasonal preparations.
All of the details are taken care of behind the scenes. You can see updates, schedule service, and manage your ownership details through a dedicated owner portal, like the myFRAX Portal . This means when you arrive at your vacation home, your only responsibility is to unwind. The home is always clean, maintained, and ready for you to enjoy from the moment you walk in the door.
How Scheduling and Stays Work Fair and equitable access is the cornerstone of the scheduling system. You and your fellow co-owners use an app-based system to book your stays. The technology ensures that everyone gets a fair shot at booking dates throughout the year, including peak seasons and holidays. You can plan your trips well in advance or book a spontaneous getaway if the home is available.
The number of days you can use the home corresponds to the size of your share. For example, a 1/8 share typically gives you access for at least 44 nights per year. This system is designed for flexibility, recognizing that every family’s schedule is different. It eliminates the classic conflicts of trying to coordinate with family or friends, making the process smooth and stress-free for everyone involved.
Offsetting Costs and Tax Considerations While the main goal of co-ownership is to have a place to enjoy, many owners choose to rent out some of their unused time to help offset operating costs. These costs include things like property taxes, insurance, and HOA fees. The property management team can handle the entire rental process for you, from listing the property on vacation rental sites to managing guest communication and cleaning.
This makes it a hands-off way to reduce your overall expenses without turning your vacation home into a full-time job. At the end of the year, you’ll receive clear financial statements and the necessary tax documentation related to your share of the property, which simplifies things for you or your accountant. For more specific details, it's always a good idea to check the company's FAQ or speak with a financial advisor.
Is Fractional Ownership Right for You? Fractional ownership is a fantastic way to own a piece of a luxury vacation home, but it’s not the right fit for everyone. The best way to decide is to be honest about what you truly want from a second home. Is it about creating memories with your family, having a reliable getaway spot, or are you looking for a hands-on real estate project? Your answer will point you in the right direction.
Think of it this way: this model is designed for people who want the destination, not the duties. It’s for those who dream of showing up to a beautiful, well-maintained home without ever having to worry about fixing a leaky faucet or managing a landscaping crew.
You’re a great fit for co-ownership if… If you find yourself nodding along to these points, co-ownership could be your perfect match. You prioritize having a stunning place to escape to, and you understand that sharing the property means you also get to share the costs and responsibilities. This model works beautifully if you want the luxury lifestyle without the multi-million-dollar price tag and the headaches of sole ownership.
You’re likely a great candidate if:
You want to make lasting memories in a high-end vacation home that might otherwise be out of reach financially. You value a hassle-free experience where all the property management, from cleaning to repairs, is handled for you. You’re comfortable planning your stays in advance and don’t need spontaneous, year-round access to the property. You see the financial sense in splitting expenses like property taxes, insurance, and upkeep with other owners. You might want to think twice if… On the other hand, fractional ownership might not be the ideal path if your goals are different. If you crave total control or are looking for a specific type of financial return, whole ownership or a different real estate model might be more suitable. It’s all about aligning the ownership structure with your personal and financial objectives.
Consider other options if:
You want 100% control over every decision, from the interior design down to the brand of coffee maker. Co-ownership is a collaborative effort. You need the ability to visit your property spontaneously at any time. Scheduling is a key part of making sure every owner gets to enjoy the home. Your primary goal is to generate significant rental income. While renting out your unused time can help offset costs, the main purpose of this model is personal use and enjoyment, not passive income. You’re looking for a short-term, liquid asset. Real estate, including fractional shares, is a long-term commitment, and its value is subject to market changes when it comes time to sell. Related Articles Frequently Asked Questions How is this different from a timeshare?
What happens if I want to sell my share? Life is always changing, and you have the flexibility to sell your share if your needs change. While it's not as instant as selling a stock, the process is much simpler than selling a whole house. Because the price point for a share is more accessible, there's a larger pool of potential buyers. We help you through the process to find a new owner and ensure a smooth transition.
Who is responsible for repairs and furnishing the home? We are. The entire experience is designed to be completely turnkey. Our professional management team handles everything from interior design and furnishing to all ongoing maintenance and repairs. Your monthly fees cover these costs, so you never have to worry about coordinating with a plumber or spending your vacation fixing things. You just show up and enjoy a beautifully maintained home.
How does the scheduling system ensure everyone gets fair access, especially for holidays? The scheduling system is built on a fair and equitable model. Using a simple app, you and the other co-owners can book your stays in advance. The system is designed to rotate access to holidays and peak season dates over the years, ensuring that every owner gets a chance to enjoy the home during those popular times. It eliminates any potential conflicts and makes planning your getaways easy and stress-free.
Can I rent out my unused time to make money? While the primary purpose of co-ownership is for you to enjoy the home, you can rent out your scheduled time if you're not able to use it. This is a great way to offset some of your annual operating costs, like property taxes and insurance. Our team can manage the entire rental process for you, but it's best to view this as a way to reduce your expenses rather than a source of passive income.
