I have 3 clients I'm currently working with to evaluation whether a fractional offering would be a good opportunity. When developing your property as a fractional, there's several things to consider...
- Does the location and the property have appeal as a resort second home? Not every property on Kauai is suitable for a fractional offering...remember your buyers are buying a vacation home, and want it to have the emotional appeal of a relaxing, vacation place. As sellers, put yourself in the buyers' shoes...would you pay top dollar to stay there?
- I'm working with an excellent consultant who I am referring my clients to who has very successfully developed fractionals, including walking through the legal process and developing a well thought out management structure to ensure it will continue successfully. If you're interested, I'd be glad to refer you and you can get a 3rd party perspective on the realistic possibilities of doing a fractional development.
- There are a few ways to offer fractional ownership, but by far I feel the best way is to develop the legal structure so that each ownership unit has a separate deed. It takes an initial investment to do the legal work, but then you are offering ownership that is free and clear of any encumbrances from the other owners, just as in a condo offering. There's more information as well as a list of Hawaii attorneys on my website at www.ResortSecondHomes.com.
- Selling your condo or home as a fractional can actually yield you better equity returns, and also give you the possibility of retaining one or two segments for your own continued use!
Following are pictures from one of my favorite developments here on Kauai - it's a 3 bd / 3 ba Townhome in Princeville. Located next to Makai Golf Course, this high-quality home offers the privacy and space of a single family home, but has the ease of ownership of a gated townhome community of Villas of Kamalii, and located close to all of the amenities of Princeville and the tropical North Shore of Kauai!
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