Investing in a fractional ownership property offers all the perks of ownership without the full financial commitment and comes with maintenance free living.
Fee simple interest (i.e. 1/10th) that is transferred via a deed at closing.
Fractional ownership differs from a timeshare because your name is on the deed and you have the commensurate rights of that ownership.
The number of use weeks depends on the number of ownership shares per property. For example:
- For a 1/10th share property, a total of 5 weeks are allotted to each owner.
- For a 1/8th share property, a total of 6 weeks are allotted to each owner.
- For a 1/7th share property, a total of 7 weeks are allotted to each owner.
- For a 1/6th share property, a total of 8 weeks are allotted to each owner.
It is exactly like owning a house where you could own the property forever or you could sell your share down the road. The shares can also be part of an estate plan and bequeathed to your relatives and friends.
Owners are not allowed to rent out any of the weeks to parties that don’t own a share. Though, as an owner, you certainly are allowed to let family and friends use some of your allotted time.
Rentals are strictly prohibited, but an owner can allow friends or family to use the property during their weeks.
No. The LakeShare association handles the insurance.
Every October, each share owner requests their top choices for weeks they want to use the vacation house in the next year. The weeks are divided out on a rotation and go in the order of when someone purchased a share.
The timing will vary by property depending on cleaning and property management service availability. For example, at our Silver Creek property, the owners can check in Monday at 4 pm and check out Sunday by Noon.
Yes, trading weeks among owners is allowed.
For example, at the Silver Creek property, a total of 10 shares were made available. No more than 2 shares can be owned by one owner.
We recommend keeping 2-3 weeks for maintenance periods throughout the year.
Dues pay for property taxes, utilities, professional housekeeping and linen service between owner visits, homeowners’ insurance, Internet and towards building a reserve fund for future repairs. Other common costs, like firewood, could be included if the owners agree on this.
A typical fractional ownership purchase agreement uses the same standard real estate purchase agreement as other residential real estate transactions.
No, all purchase funds are due at closing. However, there are lenders who will fund the purchase through a typical mortgage or HELOC.
Yes! Often as lakeshore properties are passed from generation to generation, not all family members want to take part in the upkeep, and some would prefer to cash out altogether. Creating a LakeShare is the perfect solution for this. Those family members that want to keep a share are able to while the others can be sold off. Through our professional management, this also negates the need for share owners to do maintenance and upkeep. Suddenly the legacy family lakeshore property becomes what is was always supposed to be; a place to relax and enjoy!
Yes! If your preference is simply to deploy capital as an investment, we can put your money to work through the acquisition of a LakeShare property and pay you a negotiated return based on the sale of ownership shares.
Fractional ownership means deeded ownership interests. Getting the legal structure correct is paramount to making a successful LakeShare. Creating an Association to manage the property also has its own legal requirements. We’ve done this before and are here to help you be successful in your LakeShare journey.
Ideally, yes, but the real answer is more nuanced than that. Every city and county have their own requirements and many, frankly, don’t yet understand the model. Once explained, they generally have a strong preference for a LakeShares model over a short-term rental model. Our expertise in this area can be critical to getting a project through the county/city approval process.
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