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Fractional ownership

Posted on 1/21/22 at 10:26 pm
Posted by LSUlove
Louisiana
Member since Oct 2003
518 posts
Posted on 1/21/22 at 10:26 pm
Anyone a part of this? Art work, real estate, baseball cards, etc?
Posted by Paul Allen
Montauk, NY
Member since Nov 2007
75132 posts
Posted on 1/21/22 at 10:33 pm to
quote:

Fractional ownership


You could say I am partial to them.

Posted by Shaun176
Baton Rouge
Member since Aug 2008
2465 posts
Posted on 1/22/22 at 8:56 am to
quote:

real estate


Time Share?

Mutual Funds?
Posted by BK Lounge
Member since Nov 2021
3400 posts
Posted on 1/22/22 at 9:05 am to
Ive looked into it for beach condos and the like.. im just not a fan of being told how often and when i can visit property that i ostensibly “own”.. so they are not for me .
Posted by go ta hell ole miss
Member since Jan 2007
13612 posts
Posted on 1/22/22 at 10:02 am to
quote:

Ive looked into it for beach condos and the like.. im just not a fan of being told how often and when i can visit property that i ostensibly “own”.. so they are not for me .


This is for investing, not recreational use.

I cannot afford a lot of nice art that is one of the largest investment tools available to wealthy, but this allows me to get into that market. I am not apart of any, but have looked into them. Unicorn or Masterwoks were the ones I looked at. The problem for me was the fee and more importantly the carry. They charge about 20% carried interest, which seemed too much for me. I’d be interested in hearing from others about this.
Posted by jb4
Member since Apr 2013
12640 posts
Posted on 1/22/22 at 10:29 am to
Women
Posted by LSUlove
Louisiana
Member since Oct 2003
518 posts
Posted on 1/22/22 at 5:32 pm to
quote:

This is for investing, not recreational use.


Typically, but I’m interested in either experiences. Have been approached with some opportunities. Just starting my homework into the subject.
Posted by oklahogjr
Gold Membership
Member since Jan 2010
36748 posts
Posted on 1/22/22 at 7:12 pm to
quote:

Typically, but I’m interested in either experiences. Have been approached with some opportunities. Just starting my homework into the subject.




It can be both if you buy enough and resell the time share. Then you're either making money or taking vacations your call.
Posted by go ta hell ole miss
Member since Jan 2007
13612 posts
Posted on 1/22/22 at 8:09 pm to
quote:

Typically, but I’m interested in either experiences. Have been approached with some opportunities. Just starting my homework into the subject.


Oh. In that case what BK Lounge said then.
Posted by baldona
Florida
Member since Feb 2016
20386 posts
Posted on 1/23/22 at 7:16 am to
I would never do fractional ownership but crap like timeshares are very popular so plenty of people like it.

People do fractional ownership to own something bigger then they can afford themselves instead of owning something smaller. Owning it by yourself has more risk/ reward and is what I would always prefer. But there are certainly some benefits to fractional.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72460 posts
Posted on 1/23/22 at 9:21 am to
quote:

I would never do fractional ownership but crap like timeshares are very popular so plenty of people like it.



our DVC timeshare has paid off in spades when comparing to what we woulda have paid without it. been using since 1998. but we did not buy that as an investment. it is for family pleasure and vacations. now have we sold points before? absolutely.

now from a RE investment perspective the return on fractional rentals are trash. that is why i own outright for investment RE.

LINK

quote:

Arrived rental properties have paid cash dividends from rental income that translate to 5.4% - 7.0% annual returns on investment.


better off owning a REIT or loaning to a HML you can get 10%. or just own your own and get returns in the teens, 20s or even 30s like i do.

Posted by Grassy1
Member since Oct 2009
6249 posts
Posted on 1/23/22 at 9:28 am to
Maybe the older we get, the more cynical we get, but even as old as I am, I'm still not too averse to risk.

Considering the above, I'm very cynical/skeptical that someone gathering investors (especially at some sort of "retail level") is truly trying to make money for the group when it comes to art or real estate.

They are going to make "their" profit via fees. If there's any money made on the investment itself, it's unlikely that you would see your fair share, in my opinion.

Now maybe you have a smart friend and handful you go into a real estate or art deal and all the books are transparent, that's a different deal. There's a few folk in Baton Rouge that given the chance, I'd go in with them, but that's unlikely to happen, as they don't need my chump change.

Care to give us a few more details? I'm interested to hear the scenario.

And I don't mean to be pissing on your deal.

Posted by LSUlove
Louisiana
Member since Oct 2003
518 posts
Posted on 1/23/22 at 5:44 pm to
No problem. Not sure how much I want to share as it is actually an idea I am playing around with. More to the second scenario you mentioned where its pretty transparent. Think of it as an investment group that you pay a fee to join (which covers the expenses associated with searching for these assets as well as purchasing) from which you have many assets to choose from to build your investment portfolio, yet ownership would be limited to a small group per asset. Those assets could include real estate that you could personally use or straight rental properties, artwork, other miscellaneous assets.
Posted by West Palm Tiger561
Palm Beach County
Member since Dec 2018
1526 posts
Posted on 1/24/22 at 6:39 am to
I own like 1/753rd of a bitcoin.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37007 posts
Posted on 1/24/22 at 10:42 am to
quote:


our DVC timeshare has paid off in spades when comparing to what we woulda have paid without it. been using since 1998. but we did not buy that as an investment. it is for family pleasure and vacations. now have we sold points before? absolutely.


I member when DVC was selling new points in new properties at $85/pt and I thought, they are out of their minds, that math will never work.

Oops.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37007 posts
Posted on 1/24/22 at 10:45 am to
All mutual funds, public traded stock, REITs, etc are "fractional ownership"

Sounds like what are really talking about is a variant of the old "investment club" which has been around forever.

Nothing wrong with those as long as you trust your partners, as you likely won't have any direct say in the management / disposition of said assets.
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