By Lisa Migani

Thinking about selling your existing property as fractionals? If you need some really good background information, then start by looking at www.fractionalpropertydeveloper.com.

The biggest mistake a developer can make is to start on the fractional route the wrong way around. If you start by trying to find a marketer, then you won’t be ready to actually sell when you need to be. Reservations to sell never amount to anything – get the legal structure and all the relevant documentation right and you won’t lose any sales opportunities.

But first, you have to understand what is possible with what you have. Are the right numbers of people going to this area? Is it really something that’s desirable to the fractional market? How much is it going to cost? If you’re looking at a villa that’s so highend that it’s going to be very niche market, then maybe now isn’t the time to launch that particular product.

For Starters
We know that there are huge opportunities with distressed real estate properties in desirable holiday locations. In Cyprus there is a surplus of holiday real estate that isn’t being sold right now; likewise in Spain, Turkey and other beautiful places. However you can’t say that any Mediterranean beachfront real estate will sell as fractional.

Let’s imagine a developer who has 50 units at a really nice property on a Mediterranean coastline. He’s sold 10 units outright, but he really doesn’t know how to sell the rest. It’s not an incredibly expensive location – the cost of the real estate has plummeted and despite that fact he can’t sell it as whole ownership.  What could he be doing? Creating an appropriate fractional product could be the answer. Let’s look at what the British want and make it affordable for them. I’m sure we can come up with a kind of fractional product which will have a market. And that could be a short-term usage plan for the fractional property owner, with the sale of the asset at the end of either 10, 15 or 20 years.

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Tags: Americans, British, Cyprus, Developer, fractionals, Mediterranean, ownership, Ritz Carlton, shared ownership, Spain, trustee, Turkey