"Bringing Like-Minded People
Together One Fraction at a Time"
530.577.2700
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Lake Tahoe California is the most beautiful spot on earth. You can't look at the exquisite views without feeling your heart swelling and beating just a bit faster.
With skiing, fishing, golf, sailing, biking, hiking, and resort-casinos featuring world-class entertainment, the Lake Tahoe lifestyle is right for you.
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Fractional Home Ownership
What is Fractional Ownership?
Fractional ownership is not new. The cutting edge concept of fractional ownership, however, makes owning your dream vacation home a new reality.
Shared ownership has been around for decades, and thousands of fractional ownership homes around the world operate successfully. In fact, fractional ownership is one of the fastest growing segments in the vacation home real estate market today.
Fractional ownership is real estate titled to a group of individuals as “tenants in common”. These individuals are each owners and share the cost and use of the property. Typically, each co-owner purchases a percentage of the property that is then reflected on the title and deed.
Why Buy a Fractional Ownership?
How long have you dreamed about a vacation home? For many people, vacation homes are cost prohibitive for one of two reasons – the capital outlay to purchase the home or the cost to justify keeping the home for vacation use alone.
Fractional ownership solves these problems. Purchase price and operating costs, including maintenance and property taxes, are distributed among the owners based on ownership percentages. This defrays the cost of ownership while having no effect on use and enjoyment!
If the vacation home you desire is out of reach financially, consider fractional ownership. Vacation homes in resort areas do not sell for $300k. Fractional ownership in a resort area makes sense -- $125 to $300k buys you a 1/8 ownership in a fabulous, fully furnished luxury resort home. You and your family may use your resort home at your own discretion during the block of time designated to you!
There are many reasons why owning a fractional residence makes sense.
Have You Considered the Sustainable Benefits of Fractional Ownership?
Fractional ownership makes sense for people who believe in the concept of only owning that which you will use!
Research shows that on average, second home owners use their vacation home 17-20 days a year. Why own a million dollar home if you only use it a fraction of the year?
Additionally, as our world becomes more environmentally conscious, wasting use and wasting materials is becoming an unfavorable concept of the past. Sharing home ownership is increasingly more valuable to those of us who have made conscious living a bigger priority in our lives.
Here’s a chance to own a home with like minded people in a resort area considered one of the world’s most beautiful destinations.
Who are Fractional Properties Really For?
If you want the benefits of owning a high end second home, typically more valuable than you could afford on your own, in an exclusive resort area that is professionally decorated and furnished, complete with management services, fractional ownership is right for you!
Most often fractional owners are frequent visitors to the resort area, want something they can call their own, who plan to use the home six to eight times annually, either alone or with friends and family members.
These buyers aren't looking to buy “vacation time”; they prefer outright ownership of an upscale vacation property without the responsibilities and costs associated with owning a second home individually.
Typically, shared owners are those who work hard and play hard. They realize that choosing a lifestyle that follows the “Work to Live, Don’t Live to Work” philosophy is a key ingredient to a long, happy life.
Fractional ownership is a lifestyle choice, yet an affordable and sensible way to purchase a second home, providing most of the benefits of true property ownership.
Smart people see the benefits of shared ownership and benefits in the lifestyle it creates in Lake Tahoe. We hope you join our growing family.
With Fractional Ownership, you can own several vacation properties - in several parts of the world - collectively for the price of just one!
Can I finance my purchase?
Tahoe Club House works with specialty mortgage consultant that can provide you with fractional ownership financing. These mortgages require a typical down payment of 20 percent of purchase price.
For more information, you can contact Michele Gregory at Amwest Mortgage at 530-544-5570 or contact your own lender. Most owners will, however, either pay cash or opt to pay for a share with equity from a primary residence using a line of credit. Owner financing may be available in some circumstances.
What are the Tax Considerations with Fractional Ownership?
Fractional ownership is the same as ownership of any other real estate – whether you own a percentage or own the entire property outright. You enjoy potential appreciation, depreciation, interest and expense deductions, as you do with your primary residence.
At your discretion, you may sell your share of the property, gift it, or leave it to someone in a will. Your tax advisor will be better suited to provide specific details and advise what your individual tax circumstances may offer. You may also register title in your childrens’ names to assist in estate planning.
May I Buy More than One Fractional Share?
Yes, you may purchase more fractions to allow you and your family more frequent use of your vacation home. Additional interests may be acquired from co-owners, as and when they become available.
How Do I Sell My Fractional Share?
You may sell your share to any other owner of the property, or you may sell it to any third party. In most instances, existing owners in the property have first right of refusal. Typically, resale shares can be re-listed under the Tahoe Club House brand through Got It! Real Estate and Development Corp, or with a local real estate broker, who will promote the sale of your share the same way any other property is listed for sale. You may also sell your fractional share yourself by advertising in print media or on the web. You set the price and are in control of the sale, like any other property sale.
The market for fractional ownership shares is growing. As more buyers realize the benefits and savings, we expect this market to increase.
Are there Legal Agreements among Co-Owners?
Tahoe Club House will develop a proprietary set of comprehensive legal documents for its branded properties. Each individual property is owned, governed and operated without ambiguous constraints that raise questions among owners.
Our document package includes: Comprehensive Rules & Regulations, a Declaration of Covenants, Conditions & Restrictions (CC&Rs), Property Management Agreements, Opt-In Vacation Rental Program Agreements, Purchase Agreements, Bill of Sale, Grant Deeds, Disclosures, Annual Operating Budgets and Manuals, and more.
With Tahoe Club House, you don't need to convince six or seven friends to buy a share in your dream vacation home. You also avoid having to develop the legal documentation package described above.
We are confident you will agree that virtually every potential question is addressed and prescribed for the benefit of all co-owners, assuring a safe and enjoyable ownership experience. This helps ensure each owner of his independent quiet enjoyment, legal control, property rights and ownership protection.
How is Fractional Ownership Different from Timeshares or Residence Clubs?
Fractional ownership homes are yours to own and enjoy every time you visit. It’s your vacation home away from home. Owning a private residence assures the highest degree of privacy -- no public hot tubs, lobbies, parking lots, or hallways!
Timeshares, residence clubs or condominium/hotels are usually individual rooms or suites located within a major multi-unit complex. In some cases, ownership entitles you to a unit in a complex, but not necessarily the same unit. Effectively, you own a “floating floor plan” within a housing complex, even though you may have title to a specific property or unit.
In addition, you own a 1/8th share with 7 other proud owners, not hundreds, as you would with the residence clubs or timeshare properties. We do all the work and take all of the risk. We identify the property, furnish it, and appoint the property manager and a team of maintenance professionals.
Lastly, while timeshares tend to lose their value over time, fractional ownership follows the general resort real estate trend by increasing in value over time – a true financial and lifestyle investment.
Tahoe Club House fractional ownership homes are marketed to a finite number of owners with similar vacation desires in exquisite resort areas.
Are There Fees Involved with Fractional Ownership?
In addition to the initial acquisition cost, you will share in ongoing expenses. You pay your proportionate 1/8th share of property management fees, bookkeeping, utilities, snow removal, housekeeping, deep cleaning, maintenance, property insurance, general sundries and cleaning supplies, toiletries, and the furnishings and equipment replacement reserve. Your share of the property taxes will be paid directly by you. All costs are passed through without markup.
A professional housekeeper is supervised by our property manager, assuring the property is always clean and maintained in a first class condition, as you would expect.
Who Maintains My Property?
Once becoming an owner, your main point of contact will be the property management company. They will be responsible for managing your property.
The property manager oversees the complete maintenance and care of your Tahoe Club House home. Details are taken care of before you arrive, properties are professionally cleaned after each use, snow removal is done, and 5-star quality maintenance is done both inside and out. Everything is handled, including bookkeeping, bill payment, housekeeping, and coordination with the other owners.
Additionally, if you elect to do so, you may utilize the property management company to assist you with renting your home during your designated usage block. This could be desirable if there are times when you will not be using your vacation home and you wish to generate revenue to offset some of your vacation home costs. (You also have the option of using a different vacation rental company or renting out yourself.)
Continue Reading About Fractional Home Use
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