RM Harrington

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. - Wed Aug 13 2008, 11:13

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 - Wed Aug 13 2008, 10:49