What is Fractional or Shared Ownership?
Fractional Ownership is the practice of owning a property through a Limited Liability Company (LLC) with a certain number of shares and different shareholders and allowing individual owners to purchase however many of these shares they require.
The concept of fractional ownership was developed in the USA and has become so popular it is now being offered by many of the most familiar names in the hotel and resort industry. Fractional ownership is also known through NetJets and private airplanes. In 1995 Warren Buffet bought his first share in a NetJets airplane, and in 1998 he bought the entire company. Like private jets villas, condos and suites in golf resorts are mostly used for limited time periods. Therefore, they are ideally suited for fractional ownership.
Fractional ownership provides the opportunity to own a percentage of a property with a pre-selected period of use without the hassle and expense of 100% ownership and maintenance.
Unlike timeshares, fractional owners retain tangible equity and gain the other benefits associated with property ownership.
Buyback Option – How Does It Work?
A buyer's shares in a real estate LLC owning a villa, a condo or a suite can be offered in the open market for resale, but the Owners Club International's standing offer in certain resorts is to buy back the shares at cost between years 6 and 8. Currently, the buyback option is offered for the shares in the villas at the Providence Golf & Country Club and for the shares in the condos at the Grenelefe Golf & Tennis Club.
The buyback option is supported with a portfolio of Senior Life Settlement Policies of face values equivalent to the sum of the purchase prices of all shares in the LLC owning the villa or the condo. The Life Settlement Policies are selected to mature within 8 years. The Owners Club International provides a fund for remaining premium payments, which is managed by an escrow agent. All payments from insurance companies are directed to the escrow agent. As a result, The Owners Club International can guarantee that, statistically speaking, at the end of 8 years there will be enough funds in the escrow account to buy back all the shares in the LLC at cost on a first come, first serve basis. To learn more about the guaranteed buyback plan with Senior Life Settlement Policies please contact us at info@theownersclubint.com or call us toll free at 866-655-7300.
Frequently Asked Questions
What is The Owners Club International?
The Owners Club International is a fractional ownership program that allows individuals to share in the ownership of a home and to enjoy all the amenities and services. Ownership is available in multiples of 28-night tenures during each club year.
Do I have to use my nights consecutively?
Yes.
Can I rent the home if I am unable to use my nights?
There are no regulations prohibiting you from making the property available to your guests. We are not allowed to advertise rentals in Providence and Innisbrook. There are no restrictions to rentals in Grenelefe. Please contact us and we will recommend appropriate pricing for your guest stays and rentals or use our vacation rental services.
If I don't use my nights, do they roll over?
The nights must be used in one year and will not be carried over. There are possibilities for owners to swap periods of occupancy, so please do inquire.
Does my fractional ownership include a golf membership?
At Grenelefe Golf & Tennis Club golf membership is not necessary. Golf can be purchased by the round or memberships are available, subject to the club requirements. A personal membership to the Providence Golf Club is included for owners and their children. For guests or tenants, golf can be purchased by round, or special memberships are available for one week, one month or for other time periods at reasonable prices. A membership is included for owners of suites at the Innisbrook Golf Resort.
Are there public or semi-private golf courses nearby that Owners can play?
Yes. There are several courses within minutes of Grenelefe for golf challenges outside the community including the famous Diamondback Golf Club across the street, which has been awarded a 4½ star rating by Golf Digest (http://diamondbackgc.net/).
There are several courses within minutes of Providence including the Reunion Resort whose golf courses have been awarded 3½ to 4½ star ratings by Golf Digest (http://www.reunionresort.com/) and the ChampionsGate Golf Club, which has been awarded a 4 star rating by Golf Digest (http://www.championsgategolf.com/).
The greatest attraction of Innisbrook is own legendary golf courses. You can choose from four different courses and never run out of new challenges. There are 14 other courses in the greater Tampa area with Golf Digest ratings of 4 or higher.
What is supplied in the home?
The home is fully equipped with towels, linens, cutlery and crockery. Everything you would need if
you were living in the home full-time is provided.
More Expert Information About Fractional Ownership
Shared ownership industry expert, Ragatz Associates (www.ragatzassociates.com), an international consulting and market research firm in the resort real estate industry founded in 1974 by Dr. Richard Ragatz, stated:
"Most second home owners use it less than 4 weeks a year and yet pay for 12 months - for them shared ownership would be the perfect answer."
"Prices of shared ownership homes did not seem to have dropped as much in 2009 as other types of residential real estate, especially whole ownership resort real estate."
"Future trends: It is widely felt in the resort real estate industry that shared ownership resort real estate will rebound more rapidly and more strongly than whole-ownership resort real estate as the country's economy recovers."
"Prices in the shared-ownership industry range widely. For fractional interest projects, selected average prices include $147,000 per share, $18,000 per week and $580 per square foot." – The Ragatz Report 2010
If you have interest in one of our properties and would like to talk with an associate, please contact us at info@theownersclubint.com or call us toll free at 866-655-7300. |
