Ghostsurfer
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This question may be just for shits and giggles, but I occasionally see offers of fractional/timeshare home ownerships opportunities. My brother in-laws each have one and are always talking about their trips. However they have the means to travel all over the world, and for them, they love these timeshares. Unfortunately, we travel closer to home...and actually love all the NC has to offer.
The Idea: Anyway, last night the wife hits me up on when I am I going to reserve our cabin for this winter. So, I start thinking (never a good idea) that we drop about $400-500 every winter for our 3-4 day stay in the beautiful NC mountains. So, I get to thinking that if we continue to do this until the kids leave home we are looking at 10 years. Almost $5,000 for a few days of peace, beauty, isolation, and hopefully snow... Which I love and enjoy! So, I'm still thinking & drinking (like tonight), "What If..." What if we invest in a timeshare /create a fractional ownership property to maximize our enjoyment along w/our limited funds ($$.) How can we create a fractional ownership opportunity where each investor is guaranteed an increasing return of on their initial investment. How can we "all get along" in managing the day to day operations or oversight of a property when there may be multiple viewpoints.
The Plan: Find like-minded individuals that are willing to invest in an ownership proposition that will allow for affordability, flexibility, and hopefully a guarantee of return on investment. My goal is to find a cabin that would be described as an older "Charmer" (hopefully character, yet in need of renovations - but still priced appropriately $100-150K or less.) Hopefully, the cabin would be in a mountain community with pool, tennis court, long range views, and hiking trails, etc. to maximize enjoyment 52 weeks a year. The HOA fees would add to the cost, but would allow for renting the property on Vrbo or Craigslist, etc.
The Financing: The more owners - the less $$ out of pocket, but the more headaches to deal with. Still, we are talking about a mountain cabin and I am assuming that most people would be more than happy with 2-3 weeks of use. Therefore, 10 - 20 owners at an initial investment of $5,000 would get this ball rolling in a hurry. This would ensure a major equity stake in the cabin w/ a very small mortgage, HOA fee, taxes, bills, and insurance. Ideally, the set-up would encourage/reward the investor/owner for a long term stake in the cabin. I would like to guarantee a certain % return of initial investment once 5 years has passed, and then continue a plan to reward investors as the years pass. For example: tie in the # of years with a guaranteed return. If you invest and want to leave/sell within 5 years - the ownership group will give you $2,000. If you leave 5- 10 years you get back your original $5,000 investment - or you can sell on your own at market rate. After 10 years, you are guaranteed (X) amount as the ownership group will own said property and will just be paying expenses and improvements.
The Questions/Concerns: What am I missing?? Obviously, a lot... I know that tthe smaller the ownership pool- the easier to regulate, but also more expensive. Who has had experience in this area? The good and bad that would help navigate these waters. The ultimate goal is to create a win-win for each and every investor, and there would obviously be a lot of logistics to work out...
Is there a market/interest out there?? If so, how would one proceed?? Much thanks in advance to all that have experience or opinions in this matter!
The Idea: Anyway, last night the wife hits me up on when I am I going to reserve our cabin for this winter. So, I start thinking (never a good idea) that we drop about $400-500 every winter for our 3-4 day stay in the beautiful NC mountains. So, I get to thinking that if we continue to do this until the kids leave home we are looking at 10 years. Almost $5,000 for a few days of peace, beauty, isolation, and hopefully snow... Which I love and enjoy! So, I'm still thinking & drinking (like tonight), "What If..." What if we invest in a timeshare /create a fractional ownership property to maximize our enjoyment along w/our limited funds ($$.) How can we create a fractional ownership opportunity where each investor is guaranteed an increasing return of on their initial investment. How can we "all get along" in managing the day to day operations or oversight of a property when there may be multiple viewpoints.
The Plan: Find like-minded individuals that are willing to invest in an ownership proposition that will allow for affordability, flexibility, and hopefully a guarantee of return on investment. My goal is to find a cabin that would be described as an older "Charmer" (hopefully character, yet in need of renovations - but still priced appropriately $100-150K or less.) Hopefully, the cabin would be in a mountain community with pool, tennis court, long range views, and hiking trails, etc. to maximize enjoyment 52 weeks a year. The HOA fees would add to the cost, but would allow for renting the property on Vrbo or Craigslist, etc.
The Financing: The more owners - the less $$ out of pocket, but the more headaches to deal with. Still, we are talking about a mountain cabin and I am assuming that most people would be more than happy with 2-3 weeks of use. Therefore, 10 - 20 owners at an initial investment of $5,000 would get this ball rolling in a hurry. This would ensure a major equity stake in the cabin w/ a very small mortgage, HOA fee, taxes, bills, and insurance. Ideally, the set-up would encourage/reward the investor/owner for a long term stake in the cabin. I would like to guarantee a certain % return of initial investment once 5 years has passed, and then continue a plan to reward investors as the years pass. For example: tie in the # of years with a guaranteed return. If you invest and want to leave/sell within 5 years - the ownership group will give you $2,000. If you leave 5- 10 years you get back your original $5,000 investment - or you can sell on your own at market rate. After 10 years, you are guaranteed (X) amount as the ownership group will own said property and will just be paying expenses and improvements.
The Questions/Concerns: What am I missing?? Obviously, a lot... I know that tthe smaller the ownership pool- the easier to regulate, but also more expensive. Who has had experience in this area? The good and bad that would help navigate these waters. The ultimate goal is to create a win-win for each and every investor, and there would obviously be a lot of logistics to work out...
Is there a market/interest out there?? If so, how would one proceed?? Much thanks in advance to all that have experience or opinions in this matter!
