With its recent growth in popularity especially amongst the luxury vacation home crowd, fractional real estate has got many would be homeowners curious.  We here at Desert Quarters are often asked the same questions time and time again.  The following is a list of facts regarding fractional real estate designed to help answer some of the more frequently asked questions.

1. Fractional Real Estate is not a new trend nor is it a fad:  For as long as modern real estate has existed so have fractional homes.  More often than not fraction real estate has been popular with multiple couples going into the purchase of a home together for obvious mutual benefits.  Though it has never been as popular as it currently is fractionals are a staple of the real estate market.  In fact $1.5 Billion in sales of fractional properties was achieved earlier this year reminding everyone that fractional real estate is here to stay.
   
   
2. Fractional homeowners benefit from experience with timeshares:  Many fractional homeowners or those interested in fractionals are or where at one time participants in a timeshare.  Though fractional ownership and timesharing are very different in many aspects, at their core they both allow people to share a home.  After participating in time shares the move to fractional ownership of a home is a natural move for many people.  Once curious parties obtain more information on fractionals the move makes more sense and often happens quickly.
   
   
3. Common Share Time For Fractionals:  Fractional ownership of a home allows it’s owners more time in the home than do timeshares.  While some homes have up to 13 different owners it is more common these days for a home to be split between four owners which allows much more time in the home.  Those who invest in a fractional home often enjoy six weeks and upwards of time in the home.
   
   
4. Fractional properties can be successful anywhere:  While the most popular fractional homes are usually vacation homes in exotic and/or luxurious locales, fractionals are successful in many environments and neighborhoods.  Additionally many fractional homeowners prefer buying a second home that’s within close proximity to their primary dwelling.
   
   
5. Have a great team of professionals on your side:  While the popularity of fractionals is quite high a sale on such a home is never a guarantee.  Though the benefits of owning a fraction of a home far outweighs any disadvantages it’s important to have an experienced and savvy team working with you when you’re hunting for the perfect vacation or second home.  Doing so helps ensure that you get the best deal possible and that you understand all there is to know about fractional ownership.

We hope that these facts are helpful to those interested in fractional ownership.  Should you have any questions please contact us so that we might help you!

Despite an overall poor real estate market it may surprise some that some of the niche markets are performing better than ever.  This is especially true for fractional real estate.  With many of America’s Baby Boomers over the age of 50 the majority of this generation has begun to consider retirement.

Part of planning for retirement is finding the perfect place to retire in.  This almost always means the selling of one’s home and the purchase of a new home.  Many Baby Boomers however are not purchasing just one new home but instead have begun buying fractions of multiple homes all over the country.  Doing will allow these people to live in several places at virtually any time they choose.

Why own just one home when you can own fractions of a number of homes?  This is a question many Baby Boomers have asked themselves.  Retirement is a time in which an individual is allowed to relax and do what he/she pleases with their time.  With so much free time in their futures, scores of Baby Boomers are making plans to travel the country and see things and places that time would normally not allow.  Imagine having your own home in multiple destinations so that when you get to town you have your own home waiting for you.  Not only does this scenario save money and time by negating the need for hotel bookings or RV rental spaces, but there’s nothing quite like being in your own home.

Fractional real estate will help many future retiree’s realize their dream of seeing the country in comfort.  Quarter-share ownership allows all owners to plan out years in advance when each owner will be able to enjoy the home and affords each owner much more time in the home as opposed to time shares.

Desert Quarters specializes in fractional real estate and can answer any questions you may have about this fantastic way to own a home.  Should you have questions please don’t hesitate to contact us!

Despite an overall poor real estate market it may surprise some that some of the niche markets are performing better than ever.  This is especially true for fractional real estate.  With many of America’s Baby Boomers over the age of 50 the majority of this generation has begun to consider retirement.

Part of planning for retirement is finding the perfect place to retire in.  This almost always means the selling of one’s home and the purchase of a new home.  Many Baby Boomers however are not purchasing just one new home but instead have begun buying fractions of multiple homes all over the country.  Doing will allow these people to live in several places at virtually any time they choose.

Why own just one home when you can own fractions of a number of homes?  This is a question many Baby Boomers have asked themselves.  Retirement is a time in which an individual is allowed to relax and do what he/she pleases with their time.  With so much free time in their futures, scores of Baby Boomers are making plans to travel the country and see things and places that time would normally not allow.  Imagine having your own home in multiple destinations so that when you get to town you have your own home waiting for you.  Not only does this scenario save money and time by negating the need for hotel bookings or RV rental spaces, but there’s nothing quite like being in your own home.

Fractional real estate will help many future retiree’s realize their dream of seeing the country in comfort.  Quarter-share ownership allows all owners to plan out years in advance when each owner will be able to enjoy the home and affords each owner much more time in the home as opposed to time shares.

Desert Quarters specializes in fractional real estate and can answer any questions you may have about this fantastic way to own a home.  Should you have questions please don’t hesitate to contact us!

With the economy being what it is, many people have learned to make better financial decisions both big and small.  This is especially true for those individuals looking at real estate.  Falling prices and better mortgages are certainly out there for the ardent buyer however many people have began looking at real estate in a whole new way as of late.

The term “fractional real estate” is a new term to many but we at Desert Quarters have found that the verbiage is quickly becoming synonymous with real estate buyers.  That’s because owners of fractional property share ownership of a home, usually with several other parties.  This makes owning a home, especially those used for vacations, get-a-way’s, and holidays easy to own and even maintain.

Though many buyers initially believe fractional ownership to be very similar to a time share, they quickly find that there are some big differences.  Fractional ownership of any home gives you full access to that home for a predetermined and for a longer period of time that you would receive through a time share.  Whereas you’re paying for a specific amount of time when dealing with time shares, you buy and maintain partial ownership of a property when you buy into fraction property.  Additionally your share can be sold to another party at any time just as you would if you owned the entire home.

Fractional real estate has become popular because it makes owning a home more affordable yet at the same time it negates many of the hardships that come with owning a home on your own.  Moreover buyers are considering fractional real estate because it allows them to buy into a home that’s not tied to a tourist strip or location but rather one that’s located in your everyday average neighborhood.

With so many advantages to owning a fraction of a home rather than owning one outright it’s not hard to see why this type of real estate has become so popular.  Should you have any questions about fractional real estate please contact Desert Quarters for more information!  You may reach them both via email and by telephone at (716) 909-8624.

With today’s inconsistent and sometimes stagnant real estate market the priorities of both homeowners and sellers has changed a great deal.  In today’s market it is difficult for home owners to sell their home for its true value while buyers often hold out for a lower price which further devalues many a home.  Even those buyers who target vacation properties have become much more conservative with their finances as the costs of maintaining such properties and dealing with a deficient number of prospective renters has made would be owners wary of owning such a property in these troubled economic times.

Those who are on the verge of owning a vacation home but are finding it difficult to part with their capital can take comfort in knowing that there is indeed an option available to owners of vacation properties that will allow them to retain the benefits of ownership, all the while reaping the benefits of a seller.  This involves converting your vacation home into a fractional property. Fractionalizing your vacation home will allow you to capitalize on the appreciation your home has accumulated over the years all the while allowing you to retain partial ownership of the property.  Additionally, selling off fractions of a vacation home, may allow an owner to pay down or even pay off the loan they originally took out for purchase of the home.  Furthermore those who fractionalize their vacation homes continually enjoy the benefits of home ownership while reducing their annual costs by as much as 90%.  With all of these benefits available to vacation home owners many have begun fractionalizing their properties.

Should you be interested in fractionalizing your vacation home, Cobblestone Design Group can assist you in a variety of ways.

• Home Evaluation:  Our interior designers will come to your home and assess whether or not the interior of the home will meet the standards of prospective buyers.  If for some reason the interior of your home does not meet those standards, our designers will advise you on what it is you need to meet the standards of today’s fastidious buyers.
   
• Property Location:  Location is everything in real estate and when dealing with vacation homes it rings even truer.  While assessing your vacation home, our team of professionals will help you determine the value of your property by taking into account the number of tourist attractions in your home’s immediate area, the popularity of the neighborhood your home resides in, and how many different seasons tourists frequent the area in which your home is located.  Of course the more frequently vacationers visit the area your home resides in the more attractive and valuable your home becomes.  If your vacation home is in a more secluded area however and its community doesn’t offer as much as other vacations spots might our team will develop strategies that make your home more attractive to those interested in owning a fraction of a vacation home.
   
• Legal Evaluation:  Any time you’re dealing with real estate it’s a good idea to have all your bases covered, especially your legal bases, so that you know where you stand and what you can and can not do.  At Cobblestone we understand how intimidating and perplexing the legal side of real estate can be.  We therefore hire a real estate lawyer for you so that meeting all local and state regulations isn’t something you’ll have to worry about.
   
• Property Presentation: In the majority of scenarios we only get one chance to make a first impression.  This is especially true when you’re trying to entice buyers into purchasing a fraction of your vacation home.  Our team of professionals will not only assess your home but will assist with any remodeling that needs to take place.  We put a heavy emphasis on the things that make a home feel comfortable so that your home becomes even more attractive that it may initially be.  Amenities such as luxury linens, kitchen supplies, high-speed Internet access, and even top notch landscaping are all items we make sure to include should your home not already possess such amenities.
   

Create a Fractional Use Plan:  As fractional real estate experts, we assist all of our clients in developing a plan that allows all owners of a fraction property to benefit equally and fairly.  Our clients may choose one of two options when creating a plan with us.  The first option involves us bringing in a management team that specializes in fractional properties.  The second option involves bringing in a real estate agent though we encourage our clients to choose the first option as the majority of real estate agents possess little knowledge of fractions properties and more often than not do not comprehend or embrace the concept.

Should you have any questions about fractional real estate or should you be interested in either selling or buying fractional real estate please contact us so that might assist you! For additional information about fractional properties you may also visit Desert Quarters. We have the experience and knowledge to give you a turn key fractional development you will enjoy for years to come.

Over the past couple of years I have had the pleasure of speaking to hundreds of Brokers and Realtors across the country about fractional vacation homes. It seems none of them has too much of an interest in fractional vacation homes.Being in the Construction and development business for over 20 years I too for the longest time was hesitant or downright resistant to new ideas. As I grow older and look back and see some of the innovations that have taken place in the industry, I can say some have worked and some did not. I think one of the biggest changes I’ve seen is the introduction of Home Depot. In 1989, Home Depot opened its 100^th.h store, and the way lumber was sold started to change drastically. When I first went into Home Depot I was shocked at what they had, it was so large that I figured most people would still prefer to deal with the smaller local lumber yards. But soon more people went to Home Depot and found out they would rather buy there because it was cheaper. Now 19 yrs later we have only a small handful of local lumber yards left and from what it seems like, there is a Home Depot on every other street corner.

The reason I used Home Depot as an example is because I am very familiar with it and I never thought that company would survive. And now, over time I must admit I shop there myself. I am not comparing myself or my company to Home Depot by any means, what I am saying is we should always look at new ideas and concepts.

When I decided to enter the Stand Alone Fractional Vacation Home Market I always knew in the back of my mind I would need the support of the local Realtors but never did I think It would be so hard to get their attention. So I hope this post intrigues all Realtors but especially those who work in Luxury markets in the following areas.

1. Water frontage or beach areas

2. Ski Areas

3. Large Metro Destination Areas (ie. Las Vegas)

4. Golf Destinations

Through my many conversations a few of the same misconceptions and thoughts arose:

1. Its just like a timeshare

2. What if I don’t get along with the other members?

3. What if my fellow owners don’t pay there share

4. Who will take care of it?

The answer to the most common question: Unlike a timeshare, Fractional’s are a deeded interest in the property . Your fractional share can be sold or passed down to your family. The second is thought was, “What if my clients do not get along with the others in the group?”. The answer to that is simple, they will never see them or probably never even meet them. Any contact through the member is done through the management company. The answer to the third most common question regarding non payment of fellow owners: When the fractional agreement is set up for a Stand Alone Fractional Vacation Home the documents will spell out everything that is needed so all owners will know what their responsibilities are and what is expected from them. It will also spell out when they will be using their property for the next 6 years using a rotating schedule (if developed as a 1/6 fractional). And lastly, each property will be assigned to a management company that will handle all aspects of the property, from paying the taxes to cutting the lawn to assisting owners in switching their time. And at closing an escrow fund will be set up to handle any short falls that may occur.

How can fractional’s help you as the realtor?

Now while not all properties are suitable to be fractionalized and by no means are fractional’s the complete answer to save a bad market, there are a few things that you as the realtor may benefit from

One example would be if you had a buyer that is on the fence about selling because they still use the house but are tired of all the costs, converting to a fractional is the perfect solution. This same scenario would work in a new build development where a builder may have some luxury standing inventory.

Other possible benefits:

Additional revenue source

Move Inventory Quicker

Attraction Of More Buyers

More Options For Your Clients

Close More Sales Due To Affordability

More Networking

In closing I just wanted to touch on a few points about Stand Alone Fractional Vacation Homes. I could write for hours on this but I feel most of you would stop reading. While it is not the answer to everything, it is here to stay and will become a large part of the way Vacations homes will be sold. When I decided to make this an extension of my current development company I saw a demand for a product and while it is still in its infancy it will continue to grow. I am looking forward to fulfilling you and your clients’ needs. I am always available to answer any questions you may have & for a more comprehensive list of development services we will be offering, please contact me.

Oh and one other piece of info :

If you’d invested $1,000 when Home Depot went public in 1981, you’d have been worth around $1.4 million in January 2000.

If you think you may have an interest in hearing more feel free to contact me at

jeffrey@desertquarters.com or call 716 909 8664

Second Home Options – Ways to Share & Save

A recent NY Times article cited fractional ownership as a fantastic second home option that allows homeowners to save money. “Various options are out there that let even regular folks have a piece of the vacation-home pie,” writes Billie Cohen.

Sometimes people choose to own a fractional second home with friends or family members. Imagine having your next family reunion at a spacious million-dollar-estate — complete with: indoor and outdoor hot tubs, marble floors, plasma screen TVs, professionally landscaped grounds, a swimming pool and full access to a luxury club with restaurants, golf courses, fitness centers and full-service spa.

Other times people choose to purchase a home with complete strangers, overseen by a professional management company, that gives them 4 – 12 weeks of usage each year. Usually owners never even meet each other in this scenario and a maid service automatically arrives before and after each transition, so the fractional ownership home is always in mint condition.

“The basic idea is that you’re paying for what you actually use,” explains lawyer Andy Sirkin. He also adds, “The truth is that the smaller the group, the harder it is to get along, and that family and friends don’t get along better than strangers.” He said the key to fractional ownership is clear documentation that outlines how the co-ownership will work.

Source: http://www.nytimes.com/2008/05/16/greathomesanddestinations/16your.html?ex=1368676800&en=42e84fc2f25c2ed0&ei=5124&partner=permalink&exprod=permalink

Lincoln City is one of the latest cities to offer Americans their portion of a multi-million dollar home. The Oregon Coast boasts numerous Oceanside homes – many which sit vacant and wasted for most of the year as vacation homes.

“When I spoke to the owners, they told me that, when they did use the house, they spent most of their vacation time doing maintenance,” said developer Gordon McMahon. “They never really had time to just relax. It didn’t make sense.”

McMahon began purchasing the best selection of those stunning mansions – gutting them and undertaking massive renovation projects to create “top-of-the-line luxury showplaces” and “one-of-a-kind designer homes,” which he could offer on a fractional ownership plan. He even fully furnished the properties and added home theatres, pool table, luxury spas and includes convertibles in each garage for tenant use. The best part is that this Oceanside lifestyle is not for a select few millionaires, but suited for someone willing to pay a $399,000 price tag.  

Under the fractional plan, Oregonians leverage their resources and only buy as much of the home as they’re planning to reasonably use – all the while providing them with a deed, the opportunity to gain property appreciation assets or pass the property on in their wills and the ability to secure bank financing.

Each owner lives in McMahon’s mansions for seven weeks out of the year and owners never cross paths or even need to speak to one another. After the cleaning and maintenance crews roll through, one would never know the place had been touched. The management team handles all scheduling, stocks the kitchen with the owners’ favorite foods prior to arrival and allows for on-site storage.

According to Ragatz studies, 80% of fractional owners are “very satisfied” with their arrangement. The study also predicted that “at least half a dozen” fractional properties would emerge in Oregon within the next 18 months.

Source:http://www.newportnewstimes.com/articles/2008/07/16/business/business01.txt

We frequently get calls from poker champions who spend a significant amount of time in Las Vegas, particularly during the hot summer months when the World Poker Tour is happening. They’re big winners who could easily afford to buy a home in one of Sin City’s gated communities… but they’re also strategic thinkers. Why buy a home for 52 weeks/year that they’ll only occupy for 14 weeks?

Here at www.desertquarters.com , we offer many premium properties right on the Las Vegas strip that are divided fractionally, so you can live here when you need to but head back home, without worrying if the lawn has been mowed or if squatters have moved in. Sure you could stay at Caesar’s Palace or The Venetian… but wouldn’t it be nice to have a little piece of home and familiarity each time you return?

At Turnberry Place, you’ll enjoy interior features like marble floors, Sub-Zero refrigerators, Italian cabinetry, Jacuzzi tubs, as well as amenities like his and her health club spas, limo service, wine tasting rooms and gourmet restaurants. While you’re gambling at the casino, there are amenities that your whole family can enjoy! The best part is that, at the end of the day, you will be holding the deed to a property – not just throwing money out the window to rent a hotel room. A fractional home is a valuable asset your family can enjoy for years to come.  

According to CNN Money Magazine, fractional properties are “the perfect trade-off,” offering a “big, luxurious vacation home in a beautiful resort for just a tenth of the going rate.” Fractional owners may not be able to add their personal flair with photographs and new wall colors, but they get two prime ski season weeks, two summer weeks and two additional off-season weeks. They also never have to contemplate maintenance.

The history of fractional ownership goes back to Utah, circa the 1990s, when Steve Dering of DCP International saw how underutilized the $4 million Aspen ski-country homes were. He figured he could offer an eighth-share for $430,000 instead. Fast-forward to 2007, where more than half of all real estate sales in Aspen involve fractional. The investment proved good for fractional owners too: a Deer Park Valley Club share in Park City that sold for $130,000 in 1998 is now worth $655,000 today, says Dering.

Fractional owners like John Nussbaum say that their luxury properties allow them to keep in touch with family and friends. “You can ask the kids to come to Appleton [Wisconsin] but there isn’t a lot to do here,” Nussbaum explains. Instead he purchased three units at Snowmass, Colorado, one in Cabo, San Lucas and one in Botany Bay, St. Thomas. For the price of one mansion, Nussbaum now has a stake in all his favorite vacation destinations. You could say he’s become quite the popular guy!

While some high-end properties are priced to allow those making a household income of $200,000, the latest Ragatz Associates survey said the average median household income for fractional owners was $425,000.