I should be in Puerta Vallata right now, - I'm not.  Last week amid media hysteria and founded or unfounded fear the event I was to attend was cancelled.  I don't blame the promoters of the event, in my opinion they made the only decision they could make.  I don't really blame anyone, and re-framed my dissappointment of what was to be a great networking opportunity capped off by some much needed R and R, and took advantage of a week home with nothing on my calendar.  

So why, last week at this time was the Swine Flu the only ...<< MORE >>

I constantly get asked these days what I think about fractional properties in the current economy.  As an owner and developer of fractional real estate, whose current projects are for all intents and purposes on hold right now, I think, needless to say it is a very interesting time in the resort property industry, and more so in the fractional real estate industry.  I'm very interested to hear what my fellow developers are thinking when we get together at the Ragatz Symposium in March.  My current thoughts are along these lines.  If you can hold out for what will most ...<< MORE >>

Many people confuse fractional ownership with timeshare, and while they both are defined by ownership of “time” in a property, they are very different creatures. Keep this in mind: unlike most timeshares, you own your fractional property, and as the deeded owner, you benefit from greater flexibility and more time of use.

When it comes to other benefits, the level of service and amenities with a timeshare leave much to be desired.  With fractional properties, you have ultra-high-end amenities and exceptionally high levels of service. You own your fractional property, and this means that you have all rights to it. You ...<< MORE >>

I recently attended the 2008 Ragatz Fractional Interest Conference in San Francisco.  I was amazed at the number of people in attendance, it seemed like more than twice as many as last year.  I'm not sure just how many people were there, but it was impressive.  I shouldn't have been surprised, but I was by the sheer number of the big guys who where there.  Ritz Carlton, The Fairmont, Hyatt, Starwood, Marriott, they were all there, all with more and more fractional interest projects.  The industry is here to stay and growing, even given the slowdown in the ecomomy and ...

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Fractionals have transformed the vacation ownership industry over recent years and are emerging as preferred alternatives to wholly owned vacation homes.  Fractionals attract consumers who can afford luxurious vacation homes but can't justify the cost oand inconvenience of whole ownership when their use of the property is usually limited to only several weeks per year.  Consumers are also drawn to the extensive amentities, five star hotel like services, high quality furnishings and finishes, desireable locations, exclusivity and maintenance free lifestyle offered by fractional projects.

While fractionals offer vacation home benefits at a fraction of the cost of owning an entire vacation ...<< MORE >>

Welcome to our Fractional Real Estate Blog.  Our purpose is for to provide a place where folks can exchange ideas and opportunities about fractional real estate (FRE).  Fractionals are red hot right now and have been for the last couple of years.  Although a somewhat emerging market FRE is the fastest growing area of real estate, with sales in 2006 at over $2 billion.   Visit http://www.northcourse.com  and download the 2007 North American Fractional Interest report for an update on the state of the industry.

Let's start with some frequently asked questions.

Q:  What are fractionals and are they the same as private residence clubs (PRC's)?

A:  Fractional real estate ownership and private residence clubs (PRC's) are essentially the same thing.  The terms are used interchangeably.  They allow you to use up to 3 months of home ownership priviledges at a top of the line luxury resort with incredible amenities and service but at a fraction of the cost of full ownership.

Q:  Who are fractionals really for?

A:  This type of real estate property is ideal if you want the benefits of owning an impressive second home complete with personalized service and located in an exclusive community but cannot justify the investment due to limited use.

Q:  What are some of the services I can expect from a fractional or PRC?

A:  They offer exclusive amenities, usually including a lavish clubhouse, spa, private heated splash pool, hot tub, gourmet kitchen, tennis courts, golf course, marina, or access to a ski resort.  You may have a luxury car at your disposal, chef on call, 24 hour maid service, personal concierge.  Additionally a typical fractional or PRC includes: airport pickup and drop off, pre-arrival shopping and stocking, satellite TV, wifi, surround sound, plasma TV, gourmet kitchen appliances, granite, and the list goes on.

Q:  How much time do I get with a typical fractional?

A:  Most fractionals or PRC's are between 4 and 13 weeks.  There are basically two kinds of markets for fractionals.  What I'll call driving markets are markets where owners would drive to their second home.  Markets like Lake Tahoe and Aspen are primarily driving markets where most of the owners are within 3 hours drive.  In driving markets you frequently see 1/4 shares in which the owners would own one week each month on a rotating basis.  Week one the first year, week 2 the second year etc.    Flying markets are markets where people fly in and spend more consecutive time.  In those types of markets you are more apt to see 1/8 - 1/12 shares.  People in these markets tend to come and stay for a longer duration of time.

Q:  Where are fractionals or PRC's located?

A:  They are primarily located in world class resort destinations around the globe.  Cabo San Lucas, Puerto Vallarta, Aspen, Lake Tahoe, Costa Rica, etc.  Increasingly we are seeing fractionals pop up in major cities such as New York and San Francisco. 

Q:  How can I learn more?

A:  Good question, to find out all that is new in Fractionals and PRC's and to network with the leaders in the industry, don't miss the Ragatz Fractional Symposium next week in San Francisco.  http://www.ragatzassociates.com/conference.htm