Fractional Real Estate

Fractional ownership is the percentage ownership in an asset. Fractional ownership shares in the asset are sold to individual shareholders who share the benefits of the asset such as usage rights, income sharing, priority access, and reduced rates. The usage benefits that the fractional owners receive are comparable to those of timeshare owners.

Fractional ownership refers to a set-up wherein groups of investors pool in funds to purchase a property. They share passive ownership of a high-value asset. This approach reduces the financial burden on a single investor to own a property and allows the investor to earn returns on the investment.

The asset, here, can be anything such as a commercial property, a residential property, a jet, a yacht, or even a warehouse. The fractional ownership route is often marketed for assets that are less liquid, unaffordable, or difficult to manage for small investors.