W E A LT H A S A VAC AT ION
Depending upon the ownership entity, whether it is a trust or some other legal agreement, there are some limitations regarding who you can sell it to and how you sell it. As with any VRP, it requires due diligence. But if it’s done right, fractional is a portion of ownership of a piece of property that you can use, rent, or sell to anybody you want. However, as I mentioned, there are some issues with both fractional ownership shares and timeshares. The two biggest problems faced by timeshare owners and fractional owners: • Paying something every single month just for the right to have a cheaper vacation once or twice per year. The value isn’t there. • You can’t resell. If you do, it’ll be at a deep discount. But what if you could: • Receive guaranteed, fi xed cash payments, paid quarterly from your “Timeshare” or “Fractional?” • Sell it back for the total amount you paid for it? For the first time in the history of vacation travel, you can. There is now a new and better option than the outdated timeshare model. The innovators behind Income Producing Residence Clubs wanted to make a new kind of vacation product: one in which the product is profitably liquid.
10.1 The Residence Club: A New Model for VRP As I explained above, the fractional product, as a vacation property option, has been out there for years. It’s a product that offers you usage time of a property, somewhat similar to the timeshare model. Traditionally, the developer takes a condo or a home and divides it
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