A bridge to the Fractional World<br />      for Real Estate Professionals<br />and<br />                      Developers<b...
<ul><li>Historical Background of Shared Ownership.
What is Fractional?
Why Fractional Ownership?
Technology and Internet impact.
Comparison with Timeshare.
How Benefits Buyers, Developers and Real Estate Professionals.
Questions Frequently Asked.
References and Resources.</li></ul>Outline<br />
Summary & Objectives<br />After this presentation, participants will be able to:<br /><ul><li>Become cognizance of one of ...
Know the historical background, current trends and emerging opportunities
Have an awareness of the types of shared ownership.
Identify elements which make a fractional development a success for developers, lenders, and real estate professionals.</l...
An article in National Real Estate Investor, traces the concept of fractional ownership, as a way to hold title to real es...
Developers of ski resorts, in Colorado, started to offer fractional ownership to unrelated individuals in the early 1990’s...
What is Fractional? <br />Applications of Fractional Ownership<br /><ul><li>Aviation: Aircrafts
Marine: Boat Racing, Yachts
Art Collecting
Equestrian</li></li></ul><li>What is Fractional? <br />Applications of Fractional Ownership<br /><ul><li>Real Property: </...
What is Fractional? <br />Global Fractional Ownership in Real Property<br />
What is Fractional? <br />The Answer… <br /> 		   is…<br />Property Management!!<br />
Why Fractional Ownership?<br />The Growth!!!<br />Shared Ownership Sector<br />(in billions $)<br />$2,298<br />$1,543<br ...
Why Fractional Ownership?<br />Fractional Ownership: A Global Phenomenon<br /><ul><li>Projects in each continent</li></ul>...
Why Fractional Ownership?<br />Why Fractional Ownership?<br />Fractional Ownership is one the fastest growing segments in ...
Why Fractional Ownership?<br />Why Fractional Ownership?<br />BENEFIT 1<br /><ul><li>A new pricing structure for the fract...
 A true second home ownership model.</li></li></ul><li>Why Fractional Ownership?<br />Why Fractional Ownership?<br />BENEF...
 Old traditional marketing methods no longer work
99% of today’s marketing must be executed online
A sustainable and scalable prospect generation is required. Leads and Prospects are GOLDEN
 Prospects need to experience the product.</li></li></ul><li>Why Fractional Ownership?<br />Why Fractional Ownership?<br /...
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0609 NAR's Webinar: Bridge To The Fractional World V4

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Introduction to the World of Fractionals,for
Real Estate Professionals and Real Estate
Developers

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0609 NAR's Webinar: Bridge To The Fractional World V4

  1. 1. A bridge to the Fractional World<br /> for Real Estate Professionals<br />and<br /> Developers<br /> National Association of Realtors®<br /> International Programs <br />Aida Turbow GRI, CIPS, TRC, CDEi™<br />June 10 th , 2009<br />
  2. 2. <ul><li>Historical Background of Shared Ownership.
  3. 3. What is Fractional?
  4. 4. Why Fractional Ownership?
  5. 5. Technology and Internet impact.
  6. 6. Comparison with Timeshare.
  7. 7. How Benefits Buyers, Developers and Real Estate Professionals.
  8. 8. Questions Frequently Asked.
  9. 9. References and Resources.</li></ul>Outline<br />
  10. 10. Summary & Objectives<br />After this presentation, participants will be able to:<br /><ul><li>Become cognizance of one of the fastest growing areas of residential real estate
  11. 11. Know the historical background, current trends and emerging opportunities
  12. 12. Have an awareness of the types of shared ownership.
  13. 13. Identify elements which make a fractional development a success for developers, lenders, and real estate professionals.</li></li></ul><li>Historical Background of Shared Ownership<br />Fractional Ownership<br /><ul><li>Was inspired by the fractional ownership achieved in the aviation industry.
  14. 14. An article in National Real Estate Investor, traces the concept of fractional ownership, as a way to hold title to real estate, to the 1800’s.
  15. 15. Developers of ski resorts, in Colorado, started to offer fractional ownership to unrelated individuals in the early 1990’s. </li></li></ul><li>Fractional Ownership<br />What is Fractional? <br />We live in a Fractional World!!<br />
  16. 16. What is Fractional? <br />Applications of Fractional Ownership<br /><ul><li>Aviation: Aircrafts
  17. 17. Marine: Boat Racing, Yachts
  18. 18. Art Collecting
  19. 19. Equestrian</li></li></ul><li>What is Fractional? <br />Applications of Fractional Ownership<br /><ul><li>Real Property: </li></ul>Second Homes<br />Commercial<br />Vineyards<br />
  20. 20. What is Fractional? <br />Global Fractional Ownership in Real Property<br />
  21. 21. What is Fractional? <br />The Answer… <br /> is…<br />Property Management!!<br />
  22. 22. Why Fractional Ownership?<br />The Growth!!!<br />Shared Ownership Sector<br />(in billions $)<br />$2,298<br />$1,543<br />Change over the same period was about 48.9%.<br />
  23. 23. Why Fractional Ownership?<br />Fractional Ownership: A Global Phenomenon<br /><ul><li>Projects in each continent</li></ul>Africa: South Africa<br />Americas: Argentina, Belize, Bermuda, Canada, Costa Rica, Dominican Republic, Jamaica, Mexico<br />Asia: New Zealand and Thailand <br />Europe: Cyprus, France, Italy, Spain and U.K.<br />Middle East:United Arab Emirates<br />11<br />
  24. 24. Why Fractional Ownership?<br />Why Fractional Ownership?<br />Fractional Ownership is one the fastest growing segments in the Second Home/ Luxury Vacation industry. <br />Benefits:<br />Affordability<br />Diversification<br /> <br />Sharing of Benefits/Risks and Responsibility<br />
  25. 25. Why Fractional Ownership?<br />Why Fractional Ownership?<br />BENEFIT 1<br /><ul><li>A new pricing structure for the fractional product is required.
  26. 26. A true second home ownership model.</li></li></ul><li>Why Fractional Ownership?<br />Why Fractional Ownership?<br />BENEFIT 1 …CONTINUE<br />New Marketing Strategy –New Paradigm<br /><ul><li> The marketing objectives have changed.
  27. 27. Old traditional marketing methods no longer work
  28. 28. 99% of today’s marketing must be executed online
  29. 29. A sustainable and scalable prospect generation is required. Leads and Prospects are GOLDEN
  30. 30. Prospects need to experience the product.</li></li></ul><li>Why Fractional Ownership?<br />Why Fractional Ownership?<br />BENEFIT 2: FRACTIONALS INCREASE CONVERSION<br />FRACTIONAL OWNERS could access <br />WORLDWIDE EXCHANGE BENEFITS.<br />
  31. 31. Why Fractional Ownership?<br />Why Fractional Ownership?<br />BENEFIT 3: REDUCES MARKETING COSTS<br />FRACTIONAL PROSPECTS INCREASE HEADS IN BEDS & REVENUE GENERATED BY INCREMENTAL AMENITY USE.<br />
  32. 32. Why Fractional Ownership?<br />New Scalable Sales Approach<br /><ul><li> Scalable technology platform
  33. 33. Concierge service based
  34. 34. Consultative sales approach
  35. 35. Thorough training process
  36. 36. Performance management</li></ul>New Philosophy<br /><ul><li> Turn key solution (…from A to Z)
  37. 37. A long term partnership
  38. 38. Experienced management team</li></ul>http://www.e3fs.com/company/e3-team.html<br />
  39. 39. Technology<br />
  40. 40. Technology and Internet impact<br />We Are Becoming a Single Global Information Society<br />The Internet has exploded <br />the international marketplace to more than….<br /> One and a 1/2 billion <br /> Internet users around the world.<br />
  41. 41. Chart from http://www.internetworldstats.com/stats.htm<br />
  42. 42. 21<br />Comparison with Timeshare<br />Comparison of Timeshare to Fractional Ownership<br />Timeshare<br />Fractional Ownership<br />Owners receive a fractional deed or shares in the corporation that owns the property.<br />Holders only have the right to use the facilities.<br />Apportioned in units of time, weeks, and for a specific week of the year.<br />Annualized as a period of time.<br />i.e. 1/4 fraction = 1/4*52 wks =13 wks <br />Limited but available. <br />Option to exchange vacation weeks, within the home resorts’ portfolio or through an independent exchange company.<br />
  43. 43. Fractional Ownership<br />1/2 fraction<br />50% Ownership<br />50% Responsible for Maintenance and Expenses<br />Whole Ownership<br />100% Ownership  <br />100% Responsible for Maintenance and Expenses<br />52 Weeks a Year (property usage)   <br />1/4 fraction<br />25% Ownership<br />25% Responsible for Maintenance and Expenses<br />3/4 fraction<br />75% Ownership<br />75% Responsible for Maintenance and Expenses<br />22<br />
  44. 44. How Benefits Buyers, Developers and Real Estate Professionals<br />Benefits of Fractional Ownership to Prospective Buyers<br /> <br />Flexibility<br />Location<br />Sensorial Experience<br />Value<br /> <br />
  45. 45. How Benefits Buyers, Developers and Real Estate Professionals<br />Bahía Príncipe Resort & Golf<br /><ul><li>365 days of sun, beach and peace
  46. 46. Professional golf course
  47. 47. Club house and Spa
  48. 48. A modern contemporary architecture concept
  49. 49. Mixed use development; Whole ownership and fractional
  50. 50. 6 star concierge service</li></ul>www.BahiaPrincipe-RE.com<br />Courtesy of Grupo Piñero - Bahia Principe, Tulum - Mexico<br />http://www.e3fs.com/company/e3-team.html<br />
  51. 51. Introducing The Registry Collection® <br />The Registry Collection® exchange program represents luxury leisure travel at its finest. <br />How Benefits Buyers, Developers and Real Estate Professionals<br />Courtesy of Borrego Ranch – Montesoro - California<br />
  52. 52. Questions Frequently Asked<br />
  53. 53. References and Resources<br />Fractional Ownership Resources<br />Exchange Programs for Fractional Ownership and Destination Clubs<br /><ul><li>http://www.preferredresidences.com/index.html
  54. 54. http://www.destinationclub.com/home.php
  55. 55. http://www.theregistrycollection.com/</li></ul>Fractional News<br /><ul><li>http://www.quintessentiallyestates.com/
  56. 56. http://www.homesoverseas.co.uk/
  57. 57. http://www.hvs.com/
  58. 58. http://www.fractionallife.com/
  59. 59. http://www.opp.org.uk/index.asp
  60. 60. http://www.fractionallife.com/fractional_boats_yachts_listings.asp
  61. 61. http://www.fractionaljetownership.com/
  62. 62. http://www.fractionallife.com/fractional_private_clubs.asp</li></li></ul><li>References and Resources<br />Fractional Ownership Resources<br />Outstanding Destinations<br />http://www.castellodicasole.com<br />http://www.theorchardatcarneros.com/orchard/<br />http://www.golfingfractions.com/<br />http://www.aquapura-villas.com/ezine-eng/index.html<br />http://www.bahiaprincipe-re.com/<br />http://www.lasolas-foundersclub.com/<br />World Class Consultants<br /><ul><li>http://www.ragatzassociates.com/
  63. 63. http://www.timbersresorts.com/fractional-r
  64. 64. http://www.fractional.net/
  65. 65. http://www.fractionalownership.co.za/consult.php
  66. 66. http://www.e3fs.com/company/e3-team.html</li></li></ul><li>Special Collaborations for this presentation<br />Research materials: Jorge Cantero, GRI, CIPS, TRC <br />and <br />
  67. 67. Thank You!Obrigado …Gracias!谢谢 dankeありがと<br />For more information or a copy of this Presentation please contact: hhenning@realtors.org or turbow@gate.net<br />

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