Information on Rocky Point Mexico
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How does fractional ownership work?
Fractional ownership is an alternative to sole ownership in a beach vacation home. Buyers purchase a share of an expensive asset and pay the seller monthly fees to handle the scheduling and maintenance. Each condo has owners and each owner has the use of the home equal to the share size they purchase. The home is closed every year for 4 weeks for maintenance. If maintenance is not needed it is rented and proceeds are returned evenly based on owner share to the owners accounts. Each year the calendar automatically shifts the rotation of owners up one week. This guarantees that if one owner has Thanksgiving week, one year the next year the holiday automatically rotates to another owner and so on. The owner also is given the ability to trade weeks with the other owners. If an owner can not use all of their weeks per year, it is their option to let family or friends use it, or rent it out and keep the proceeds. To protect all the owners there is a strict process for renters to insure the value of your investment.
If I have a property could be sold for 250,000 full time how much additional can I get selling it fractional? What's the marketing or selling costs involved in fractional selling as a percentage of sales price?
Hello Jose,
Normally you would gain an extra 100 to $200k for the Fractional sale of your property. The sales expense, time involved to find 8 buyers will normally take 12 to 18 months and that should be taken into your consieration to sell that way. It is a great way to keep a share, get rental income and receive a nice profit for your investment.
Just a reminder: The fractional ownerships in Rocky Point are almost always beach front properties. People that come here usually only want to be in the best locations that have the best beach and amenities.
Opps, very sorry about the spelling :)
Gregg is absolutely right. Great way to get your ownership free and clear.