Fractional Ownership Management Software

Are you interested in investing in fractional real estate? As an experienced investor or an aspiring one, you may think this is too risky or complicated. You may have not been educated enough on the different types of opportunities available, such as fractional ownership and villa ownership. Or maybe you have done some research but still are not sure how to make it work for your investment goals.

In this post, we review the aspects of Fractional Ownership Management Software, fractional ownership platform, fractional real estate investing, and fractional home ownership.

Fractional Ownership Management Software

Fractional ownership management software is a specialized type of SaaS (software as a service) solution for owners looking to manage the fractional portions of their assets. The technology allows users to track and manage their individual assets. The software includes features such as linking of an asset with more than one property. There are two primary types of sites that offer Fractional Ownership Management, as well as multiple variations within those categories. Virtual Office websites allow users to create a company with a separate address and phone number. Property Finder websites allow users to search by zip code or geography, and then create one- or two-property listings.

Fractional ownership software is a specialized type of SaaS (software as a service) solution for owners looking to manage the fractional portions of their assets.

Fractional ownership is a concept that has been around for years, but it is becoming more popular as people look for ways to share the cost of owning a property.

Fractional ownership can be an attractive option for many people. It’s a great way to get started in real estate and diversify your investment portfolio.

The technology allows users to track and manage their individual assets.

Fractional ownership management software (FOMS) is a technology that allows users to track and manage their individual assets. It can be used for purposes such as:

  • Sharing information with other users
  • Creating reports, alerts, and invoices

The software includes features such as linking of an asset with more than one property.

Fractional ownership management software is a solution that allows users to manage multiple assets. The software is capable of tracking the status, performance and financials of each asset.

There are two primary types of sites that offer Fractional Ownership Management, as well as multiple variations within those categories.

There are two primary types of sites that offer Fractional Ownership Management, as well as multiple variations within those categories.

The first category is the virtual office website, which essentially allows you to manage your Fractional Ownership Property from a computer or mobile device. You can do everything from managing bookings, sending out newsletters and marketing campaigns, monitoring financials and accounting reports, updating your property status on social media platforms and much more.

The second category is the property finder website (also known as an online booking engine), which offers a service for owners who want to list their properties on the platform for potential buyers/guests to view/book reservations with no booking fees whatsoever!

Virtual Office websites allow users to create a company with a separate address and phone number.

Virtual office services allow you to create a company with a separate address and phone number. This may be useful if you want to create a company with a separate identity, or simply need an address for your banking and other business transactions.

Property Finder websites allow users to search by zip code or geography, and then create one- or two-property listings.

Property Finder websites allow users to search by zip code or geography, and then create one- or two-property listings. If you have a large portfolio of properties, there are also a few websites that let you create an entire listing with all your available units on it. However, this method is best for smaller portfolios with fewer than 10 properties combined.

The biggest benefit of Property Finder websites is that they offer a great deal of privacy for owners who do not want to share their information with the public; owner contact information can be kept private so only potential buyers can contact them (you will still have access to this information). This option works well if you don’t mind having one website listing all your properties at once—and if none of your units require any special work like repairs or cleaning before they can be rented out!

Digital tools can help simplify the process of managing your real estate portfolio.

Fractional ownership management software is a specialized type of SaaS (software as a service) solution for owners looking to manage the fractional portions of their assets. This technology allows users to track and manage their individual assets, including:

  • Fractional owner profiles that include contact information and payment history
  • Listings of available units or shares, which can be filtered according to location, amenities or price point
  • A calendar view that shows upcoming events such as rentals or property renovations

The goal of the tool is to provide an easy way for owners to see how much money they’ve made on each investment and when due dates are approaching.

fractional ownership platform

Fractional ownership platforms allow investors to access large investment opportunities such as real estate, yachts or airplanes and generate passive income while often getting additional benefits and rewards. The terms and conditions depend on the fractional investing marketplace, but the business model is similar regardless of the asset class

Let’s have a look at how fractional ownership investment works and what benefits investors get. 

What you will learn in this post:

What is fractional ownership?

Fractional ownership is an investment approach in which the cost of an asset is split among several investors. The sums of investments may vary greatly from a few dollars to several hundred thousand dollars depending on the fractional investment platform and strategy.

How does fractional ownership work?

Fractional shares have paved the way for new investors in the market. Buying a fraction of a vacation home, for example, is more realistic than buying the entire house. In most cases, fractional shares work the same way as full shares, but represent only a “fraction” of a share. 

Fractional owners share all the benefits and losses from the purchase. For example, if property grows in price over 10 years, each share grows in value, too. Investors share usage rights, income, losses, and access to the property they own. 

Depending on conditions, investors may or may not have voting rights on a company’s business unless they have at least one full share. Access to liquidity is also reduced if you own a fractional share because they may be not in such demand as full shares. 

In what cases may fractional ownership be beneficial? It depends on what to invest in. 

Real estate fractional investing

For example, buying a luxury vacation home may cost around $1,800,000, but nobody uses a vacation home all year round. That’s why it is more profitable to buy a fraction of a home and use it depending on the terms and conditions allowed by this fraction. 

Maintenance fees are also distributed among the real estate fractional owners based on the size of their fractions. Such fractional shares can be sold, and if the home grows in value, the difference results in profit for the investor. If investors don’t use the home within the time, they can rent it and make money on commissions.

Airplane fractional investing

If your business uses a private jet, its maintenance costs may be overwhelming. Add expenses for the crew, fuel and service and you will see that buying an aircraft fractional share may be much more profitable.

In this case, you purchase a fraction of an airplane, along with many other people. Depending on the company, the fraction may be 1/16 or 1/32. With this fraction, you get a specific number of flight hours per year. The share owner has a guaranteed access to a jet with 4 to 48 hours’ notice. This is why the entire fleet may consist of multiple similar jets – to interchange them amongst owners.

Owners pay not only the share but also a management fee. This fee is paid on a monthly basis and includes upgrades, hangaring, and salaries for the crew. Fuel is also up to the fraction owner. 

For how long fractional shares can be bought?

The time for which fractional shares can be purchased depends on the requirements on a specific platform and on a project type. In real estate, it rarely exceeds 5 years.

How to buy fractional shares

The process of purchasing fractional shares depends on a broker or the platform that you’ve chosen. Normally, the general process looks like this:

Fractional investing platforms

There are not many fractional investing platforms on the market, however, here are some examples in different asset classes.

Luxury Shares

Luxury Shares claims to be the first-of-its-kind crowdfunding platform that enables investors to purchase fractional shares in a luxury property. All investors have the right to use the property based on the share size. 

The platform doesn’t limit itself to offering real estate fractional ownership options only. 

Luxury Shares uses blockchain technology to create a system that would allow property developers to manage the entire buyer’s journey from registration to purchasing fractional shares, to receiving ownership documents, paying maintenance expenses, and similar.

SeaNet

SeaNet claims to provide investors with an easy and pleasant yacht fractional ownership experience without maintenance costs, decking fees, service costs, and similar. The fractional investing platform enables investors to sell the ownership share at any time. Yachts are fully equipped and managed by SeaNet to ensure the maximum use of the yacht. The platform also provides investors with the annual budget that outlines the expenses over the coming year.

As a comparison, purchasing a Benetti Delfino 95’ yacht may cost around €9.7 million. 

The annual running cost may amount to approx. €500,000. With SeaNet’s smallest share of 25%, the fractional ownership will cost approx. €2.4 million in a joining fee, and additional costs of approx. €125,000 with the build, supervision, coordination, owner supply, etc. 

NetJets

NetJets offers fractional jet ownership without the hassle associated with airplane ownership. The company takes responsibility for the crew, ensures that safety requirements are met, and addresses market challenges swiftly. 

The company recommends opting for a membership card for those who fly less than 50 hours per year. The minimum price of one hour in the air is 6,500 USD. 

But for those who fly more than 50 hours per year, fractional ownership may be a reasonable choice. The fractional jet ownership cost depends on its size and the jet’s characteristics. The smallest share one can purchase is 1/16. It gives the investor 50 hours of flight time per year. The biggest upfront cost is a one-time acquisition fee which is $550,000. The largest share is ½. It offers an investor 400 hours of flight time per year, and the minimum acquisition fee is $4,4 million.

fractional real estate investing

fractional home ownership

Leave a Comment

9 − six =