Real estate isn't just about properties; it's about finding that special place for your favorite people. It’s a home base for creating memories that last a lifetime. For many, however, the steep price and constant upkeep of a luxury vacation property make that dream feel out of reach. This is where an intro to fractional real estate can change everything. Unlike other fractional real estate companies , Fraxioned offers true property ownership, shared among a handful of families. We make the process seamless, managing every detail so you can simply enjoy your beautiful second home.
This is why we at Fraxioned work closely with Realtors like you to provide innovative solutions that align with these deeply personal aspects of home ownership. By empowering you with new tools and opportunities, we can collectively make dreams of luxury property ownership a reality for a wider range of clients.
So, are you ready to revolutionize your real estate business?
Don't miss out on the next big trend transforming the vacation home market - fractional ownership
As the demand for luxury vacation homes rises, fractional real estate is quickly becoming the industry's future. This innovative approach allows you to stay ahead of the competition and revolutionize your business. By embracing fractional ownership, you'll position yourself at the forefront of a growing trend reshaping the real estate landscape.
The Current Real Estate Market & Fraxioned's Role The real estate market is constantly evolving, and today's landscape presents challenges and opportunities for realtors. Property prices continue to climb in many desirable locations, making it increasingly difficult for the average buyer to enter the market, especially for vacation homes and luxury properties.
Additionally, we're seeing significant shifts in buyer preferences. Today's clients seek flexibility, affordability, and hassle-free ownership options
This is where Fraxioned comes in. As a leader in vacation home co-ownership, we simplify the process of turning dream vacation homes into a reality. By revolutionizing how people access and experience luxury vacation properties, Fraxioned transforms common challenges into strategic advantages. Our innovative approach lets your clients co-own their ideal vacation home without the significant costs and complications typically involved.
As a realtor, Fraxioned empowers you to offer unique solutions to your clients that align perfectly with these evolving market trends.
With Fraxioned, you can provide your clients access to high-end properties that might otherwise be out of reach. This co-ownership model allows you to tap into the growing demand for vacation homes while addressing the affordability concerns that many potential buyers face.
The U.S. housing market experienced a significant decline in home sales in 2023, following a surge in 2021. Only four million transactions, including single-family homes, condos, and co-ops, were completed in 2023—down from 6.12 million in 2021. However, the market is expected to recover, with sales projected to reach 5.6 million by 2025. Our Mission and Locations At Fraxioned, our mission is simple: "Your Favorite Place With Your Favorite People." We make luxury vacation home ownership a reality for more families by offering a smarter way to buy. Instead of purchasing an entire property, your clients can buy a share, giving them all the joys of a second home without the steep price tag. This model empowers them to create lasting memories in stunning locations. You can see our current listings in sought-after Utah destinations like St. George, Park City, and Moab. Through our co-ownership structure, owners get 4 to 6 weeks of use each year and build equity in a beautiful asset. For you, this means opening up the luxury market to a wider client base and offering a modern solution that meets today's demand for flexible, affordable ownership.
Understanding Fractional Ownership What is Fractional Ownership? Fractional ownership is a model that allows multiple buyers to co-own a single property. Instead of one person or family bearing the entire cost and responsibility of owning a vacation home, the property is divided into fractions, with each owner purchasing a share.
For example, a luxury beachfront property might be divided into eight fractions. Each fraction represents a share of ownership, typically correlating to a certain usage time per year. This model allows buyers to own a piece of a high-end property without the full financial commitment of traditional ownership.
How It Differs From a Timeshare It’s a common question, and the distinction is crucial for your clients. Unlike a timeshare, where a person typically buys the right to use a property for a set period, fractional ownership provides actual, deeded ownership of the real estate. With Fraxioned, your clients own a share of the asset itself, which means they can build equity as the property appreciates. This true co-ownership allows them to sell their share on the open market, just like any other piece of real estate. Timeshares, on the other hand, often depreciate and can be difficult to resell, functioning more like a prepaid vacation plan than a tangible asset that can grow in value.
Benefits of Fractional Ownership Cost-sharing benefits & Rental Revenue*: Fractional ownership significantly reduces the upfront cost of purchasing a vacation home. Instead of paying for 100% of a property, buyers only pay for the fraction they own. Additionally, when the property can be rented out when no owners are using it, the rental income is shared among the owners.* Hassle-free ownership & Professional Management: One of fractional ownership's biggest perks is its hassle-free experience. Professional management companies handle all aspects of property maintenance, from cleaning and repairs to landscaping. This means owners can enjoy their vacation time without worrying about the responsibilities of full property ownership. Growth potential and increased access to luxury vacation homes: Fractional ownership allows buyers to own shares in multiple properties in different locations, diversifying their vacation options. As the property appreciates, so does the value of each owner's share, providing potential for long-term growth.*Curious about the fundamentals of fractional ownership? Learn how fractionalizing allows you to co-own luxury properties without the full financial burden. Dive deeper into the concept in our detailed blog post. The Ownership Structure Explained When you introduce clients to fractional ownership, one of the first things to clarify is that this is true, deeded property ownership—not a glorified vacation club. The structure is designed to be secure, transparent, and legally sound. Unlike a timeshare where you only purchase the right to use a property, co-ownership gives your clients a real stake in a valuable asset. Understanding this legal foundation is key to confidently presenting this opportunity. It provides a clear framework that protects all parties involved and formalizes how the property is owned and managed, giving your clients peace of mind.
The Legal Framework: Property-Specific LLCs So, how does it work legally? With a model like Fraxioned's, your client isn't just signing a contract; they are purchasing an actual piece of the property. As Investopedia notes, "You own a share of a company (LLC) that owns the home. This means you have real property ownership." Each vacation home is held in its own unique Limited Liability Company (LLC). This smart structure creates a legal separation between the owners and the property itself, which provides liability protection. It also establishes a clear and professional operating agreement that governs everything from scheduling stays to handling finances, ensuring a smooth and equitable experience for every co-owner involved in the property.
What Your Share Includes A share represents much more than just a key to a beautiful house. It’s a tangible asset. The primary benefit is, of course, dedicated time at the vacation home. For example, a 1/8 share typically grants an owner over six weeks of use per year, which is often more time than most people use their solely-owned vacation properties. But beyond usage, the share represents equity. As the property's value appreciates, so does the value of your client's share. This model provides access to a luxury lifestyle and a portfolio of incredible vacation homes that might otherwise be financially out of reach for a single buyer.
Financial and Legal Details to Consider Once your clients grasp the ownership structure, their next questions will naturally turn to the numbers and legal specifics. This is where you can provide immense value by breaking down the costs, financing, and tax implications. Being prepared with clear, straightforward answers to these financial questions will build trust and help your clients feel confident in their decision. It’s important to cover everything from the initial purchase price to ongoing costs and potential tax benefits, painting a complete picture of the financial commitment and advantages of the co-ownership model.
Real-World Pricing Examples Fractional ownership makes luxury attainable by breaking down the cost barrier. For instance, a 1/8 share in a stunning mountain retreat might give your client 44+ nights of use per year for a fraction of the total cost. We see share prices for our listed homes ranging from around $90,000 to $345,000, depending on the property's value and the size of the share. When you compare that to the multi-million dollar price tag of owning the entire home, the value becomes incredibly clear. This approach allows your clients to enjoy a high-end vacation property and build equity without tying up a massive amount of capital in a single asset.
Financing a Fractional Share A common question from clients is whether they can finance their purchase. The answer is yes. While you can't typically use a traditional mortgage for a fractional share, specialized financing options are available. The model inherently "reduces the upfront cost of purchasing a vacation home," making it more accessible from the start. We understand the nuances of this market and have established relationships with lending partners who specialize in fractional ownership. We can help guide your clients through the financing process , connecting them with the right people to make their purchase smooth and straightforward.
Tax Considerations for Co-Owners Just like with any property ownership, there are tax implications to consider, and it's always best to advise clients to speak with a tax professional. Generally, property taxes are split among the co-owners based on their share percentage, making this annual expense much more manageable. Furthermore, if the owners decide to rent out the home during unused periods to offset costs, that rental income is taxable and reported by each owner. This structure allows for shared financial responsibility, turning what could be a significant burden for one owner into a minor, predictable cost for the group.
Potential Risks and How to Prepare Transparency is crucial in real estate, and it’s important to discuss potential challenges with your clients so they can make a fully informed decision. Addressing risks head-on and explaining how a well-managed program mitigates them will strengthen your relationship with your client. Issues like shared decision-making and resale are valid concerns, but with the right framework in place, they become manageable parts of the process. Preparing your clients for these aspects ensures there are no surprises down the road and sets the stage for a positive ownership experience.
Shared Decision-Making and Property Rules Some clients may worry that as a fractional owner, they "might have very little say or power in decisions about the property." This is a valid concern in poorly managed arrangements, but it's a problem that a professional management structure solves. With Fraxioned, all owners agree to a comprehensive operating agreement from the start. This document outlines the rules for everything, so there's no need for debate over routine maintenance or decor. Our team handles the day-to-day management, allowing owners to simply arrive and relax. Through tools like the myFRAX Portal , communication and scheduling are seamless and fair.
The Process of Selling Your Share Another common question revolves around liquidity: "Is selling your share difficult?" While it's different from a traditional home sale, it's a well-defined process. The key is working with a company that actively supports resale. We help owners market their shares, and as a partnered realtor , you can also list the share for sale. The market for fractional ownership is growing, which means there is an expanding pool of potential buyers looking for an accessible way to own a vacation home. This increasing demand helps make the resale process more fluid and efficient than it was in the past.
The Importance of Due Diligence Ultimately, the best way to prepare for a successful co-ownership experience is through thorough due diligence. It is "very important to fully understand the rules and agreement among all the owners before you buy." Encourage your clients to carefully review all documents, including the LLC operating agreement, the budget, and the rules and regulations for the property. At Fraxioned, we operate with full transparency and provide all the necessary information upfront. We want your clients to feel completely comfortable and confident, so we encourage questions and are always available to provide clarity. If you or your client have any questions, please don't hesitate to contact us .
Solving Critical Client Pain Points with Fractional Ownership Fractional ownership isn't just a trend—it's a solution to real problems buyers and sellers face in the vacation home market. Let's explore how this innovative model addresses critical pain points for your clients.
For Potential Buyers: Overcoming high costs and maintenance concerns
Fractional ownership tackles two significant hurdles that often prevent people from buying vacation homes: high costs and maintenance concerns.
1. High Costs - The dream of owning a vacation home often remains just that—a dream—due to prohibitive costs. Consider this example: A luxurious property in Southern Utah is listed at $4 million. For many, this price tag puts ownership completely out of reach. However, fractional ownership could divide this property into eight fractions, each priced closer to $625,000
2. Maintenance Concerns - The responsibility of maintaining a second home can be daunting. Fractional ownership eliminates this stress. Here's how: Traditionally, they'd be responsible for year-round maintenance—regular cleaning, repairs, and updates. With fractional ownership, professional management handles all of this. Your clients can enjoy their vacation property without the headaches of upkeep. They simply show up and start their vacation, knowing everything will be in pristine condition.
For Sellers: Utilizing rarely used vacation properties
Fractional ownership isn't just a great opportunity for buyers—it offers unique advantages for sellers, especially those with vacant properties, for much of the year.
Picture a couple nearing retirement who owns a beautiful beach house in Florida. They only use it for a few weeks each summer, and they're considering selling to free up capital for their retirement. However, they're emotionally attached to the property and reluctant to give it up entirely.
Fractional ownership provides a solution:
1. Efficient Use of Property: Instead of selling the entire home to a single buyer, selling fractions allows for more efficient use of the property. The house that once sat empty for most of the year now provides enjoyment to multiple families, including the sellers who didn’t want to give up their vacation home
2. Potential for Higher Overall Sale Price*:
3. Retained Partial Ownership: Sellers can choose to retain a fraction for themselves, allowing them to continue enjoying the property they love while freeing up significant capital.
By offering fractional ownership options, you're not just solving problems—you're opening up new possibilities for your clients. You're helping buyers access luxury properties they thought were out of reach, and providing sellers with innovative ways to maximize the value of their vacation homes.
How Fractional Ownership Helps Realtors Expand Their Reach Access to High-End Properties As a realtor, fractional ownership allows you to include luxury properties in your portfolio without focusing exclusively on high-net-worth individuals. You can now offer slices of dream homes to a wider range of clients, expanding your market and increasing your potential for sales. Affordable Ownership for Clients Broaden Realtor Horizons Practical Steps for Realtors to Get Started with Fractional Ownership Evaluate Client Needs To successfully incorporate fractional ownership into your business, identify which clients might benefit most from this model. Look for:
Clients who have expressed interest in vacation homes but are hesitant about the full cost Those who want a second home but don't plan to use it year-round Clients who are looking to diversify their real estate portfolio* Educate Clients on the Benefits of Fractional Ownership To effectively promote fractional ownership:
Create informational materials explaining the concept and its benefits Use real-world examples to illustrate potential savings and returns Address common concerns and misconceptions about shared ownership Highlight the flexibility and variety of options available through fractional ownership Benefits for Realtors Expanding Client Offerings Engaging New Market Segments Potential for Increased Commissions One of the most exciting aspects of fractional ownership for realtors is the potential for increased commissions. By facilitating multiple fractional sales on a single property, you can potentially earn more than you would from a traditional sale. Plus, with Fraxioned, you can earn a 2% referral fee for every sale, providing an additional income stream.*Wish to learn more? Dive Deep.
Frequently Asked Questions How do I explain this to my clients without confusing it with a timeshare? This is a great question, and the key difference is simple: real ownership. You can tell your clients that with fractional ownership, they are buying a tangible asset—an actual share in the property itself, held within an LLC. Unlike a timeshare where you just purchase the right to use a space for a certain time, this is a real estate investment that can appreciate in value. They can sell their share on the open market whenever they choose.
What happens when one of my clients wants to sell their share? Is it a complicated process? It’s a well-defined process designed to be as smooth as possible. Your client has the freedom to sell their share at any time, and as their realtor, you can list it for them. We also actively help market the share to our network and incoming buyer requests. As more people seek accessible ways to own a luxury vacation home, the market for these shares continues to grow, which helps create a fluid and efficient resale environment.
My clients might worry about disagreements with other owners. How are decisions and rules handled? That’s a valid concern, and it’s one that a professional management structure is built to solve. From the very beginning, all owners agree to a comprehensive operating agreement that clearly outlines the rules for everything from scheduling to property upkeep. This eliminates any need for debate over routine matters. Our team handles all the day-to-day management, so owners can simply arrive and enjoy their home without worrying about logistics or coordination.
How does financing work for a fractional share? Can my clients get a loan? Yes, financing is absolutely an option for buyers. While a traditional mortgage isn't used for a fractional share, specialized financing is available from lenders who understand this model. We have established relationships with these lending partners and can guide your clients through the process, connecting them with the right people to make their purchase straightforward and accessible.
What are the ongoing costs my client should expect after buying a share? Transparency is crucial here. After the initial purchase, your client is responsible for their portion of the home's annual operating expenses. This covers everything from property taxes and insurance to utilities, cleaning, and our management fee. All of these costs are shared among the co-owners, making them predictable and far more manageable than the expenses of a solely owned vacation property. We provide a clear budget so there are no surprises.
Key Takeaways Make Luxury Ownership Attainable for Your Clients : Fractional ownership solves the two biggest barriers for aspiring vacation homeowners: high costs and maintenance. It allows your clients to purchase a share of a high-end property, making it affordable while a professional team handles all the upkeep.Offer True Deeded Ownership, Not a Timeshare : With Fraxioned, your clients purchase a real asset. Each property is held in a property-specific LLC, giving them deeded ownership and a secure, transparent legal structure that protects their share.Expand Your Reach and Better Serve Your Clients : By adding fractional ownership to your toolkit, you can help a wider range of buyers find their dream vacation home. It’s a practical solution that opens up the luxury market and provides sellers with a flexible way to manage their properties.Related Articles 
