There are currently in excess of ten successful fractional ownership properties on Wrightsville Beach. They are all deeded individual ownership. One of these properties is over twenty years old and the others are as old as six years. I currently have four listings, two which are oceanfront and two non-oceanfront. This is an excellent way to have an affordable property on Wrightsville Beach which will appreciate and not "break the bank."

Justin:

Looks like a beautiful house. Does that mean the property will appraise out at 8x $300k?

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RM:

Thanks for your answer. Here in IL they are pitching a similar concept for investment properties calling it tennants in common. The idea here is that rather than buying an entire small rental propety and enduring the headaches associated, you buy whole units in a larger rental property complex of sufficient size to afford on site maintenance & management. You are supposed to receive all the same write off's as if you owned the entire building. I like it better than condo-tels because you receive long term renters in each unit and credit is verified by the propety manager. Do you do this sort of thing in your area too? Nonetheless, the biggest concern I would have with fractional ownershis would be how does the bank reposess if an individual fractional owner defaults on their loan commitment?

Greg,

That is a good question and one that is often asked. Traditionally, Timeshares are products that allow you to purchase a specific usage of time in a resort. In the Fractional Concept, it allows you to purchase an actual undivided intrest in Real Property. There are a lot of different Fractional Products out there today, but true Fractional Ownership allows all the benefits of Proeprty Ownership without the headaches of maintaining and paying for a property by yourself that you will only use 5 or 6 weeks out of ther year anyway.

It is sill pretty new in NC, but we have gone to some of the local banks and pitched the concept to them and they are actually very receptive to the idea. Because there is no real market for Frational Ownership loans, the banks here have to create their own product and warehouse the loan instead of selling it off in the open market. They see this as more secure, because 1) with our units, the purchase price will be under $150K per fraction, 2) there are other built in owners of the property that have first right of refusal in case something does happen.

Obviously the person obtaining the loan will have to have good credit and it will be a fully documented loan based on a 80/20 LTV. It takes a litte work to get set up, but as prices in Resort areas such as ours continues to increase in only makes sense for this concept to start becoming mainstream.

Thanks Justin. I am interested to see how Fractional Ownership of Large Beach homes and new developements in the pricer spots on the NC coast plays out. My firm is representing a new Luxury Condo Development in Nags Head http://(www.landingsatsugarcreek.com) that is going to offer a combination of Whole Ownership and Fractional Ownership.

It would seem to me that Wrightsville would be a perfect place for something similar in the future due to its very finite land space. If you run across any 1/4 to 1/5 share opportunities let me know.

Thanks

Yes fractional ownership is becoming more popular at Wrightsville Beach. With large oceanfront homes sitting on the market for longer times, many builders are turning to fractional ownership to help bring in some revenue from the home. If you would like some fractional ownership listings please contact me at (910) 264-6449 or justinking@seacoastrealty.com . Thank you.