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Fractionalizing

Realtors, how to sell fractional real estate

Fractionalizing

What is Fractionalizing?

Fractionalizing a property means selling the property in fractions or shares. For example, you can "divide" the property into eight equal pieces and sell each piece independently to eight buyers. Typically, the property is placed under a Limited Liability Company (LLC), and the buyers purchase a share of the LLC.

What are the Benefits?

1. Higher Profit Potential: By fractionalizing your property, you may achieve a higher profit compared to selling the property as a whole. This depends on:

  • Market conditions
  • Mortgage Balance
  • Condition of the property and its furnishings

2. Retain Personal Use: If you still enjoy the property, you have the option to sell a portion and keep a share for your personal use.

benefits
Existing Mortage

What Happens with the Existing Mortgage?

It is generally expected that the mortgage will be paid off by the time the last share is sold. However, an exception might be made if one or several shares are sold through a financing mechanism, allowing a small portion of the original mortgage to remain outstanding.

How Much Does It Cost to Fractionalize My Property?

Our commission structure varies depending on the size of the property. We also offer an onboarding service to assist owners with all aspects of transitioning from single ownership to a multiple-owner showcase piece.

fractionalize Cost
manage

Who Manages the Property After It Has Been Fractionalized?

Fraxioned manages the property from beginning to end. Our services include cleaning, maintenance, and general upkeep. Additionally, we collect annual dues from the owners and handle all operating expenses.

What is the Process to Get Started?

To get started, contact one of our team members who will guide you through the process to determine if fractionalizing is right for you. Our experts will explain everything from the initial steps to understanding the financial aspects of the transaction.

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Retain usage Rights

Retain Usage Rights

Looking to sell your vacation home but still want to use it occasionally? Fractional selling is an ideal solution. At Fraxioned, we divide your home into multiple shares, allowing you to keep one while selling the others. For instance, if you split your home into 8 shares and sell 7, you can still enjoy it for over 44 days a year.

Selling Experience

Effortless Selling Experience

Fraxioned is an expert in fractional selling, taking care of all the legal documents, processes, and procedures. We manage everything for you, ensuring a smooth and worry-free experience.

Smooth Onboarding

Smooth Onboarding

Our onboarding process at Fraxioned is both comprehensive and straightforward. We handle every aspect of managing your home, so you don’t have to. Fraxioned guides you through each step, making the transition effortless and stress-free.

Property Expert management

Expert Property Management

At Fraxioned, we partner with professional property management companies to ensure your property is well-maintained. Our management teams handle all necessary maintenance and cleaning, keeping your vacation home in pristine condition.

Excellent Design Services

Superior Design Services

Want to make your home more appealing to buyers? Our Interior Design team at Fraxioned is here to help. Whether your home needs a minor refresh or a complete makeover, we provide professional design consultations as part of our onboarding process. This includes a detailed room-by-room product list of suggested additions or replacements. If you prefer, we offer a full-service redesign, where we purchase and install everything your home needs to look its best.

Target Buyer

Targeted Buyer Outreach

Fractional selling can be highly lucrative for vacation homeowners, especially when your listing reaches the right audience. Fraxioned ensures your home is listed in prime locations and promoted across social media and other platforms, maximizing its visibility and appeal.

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