Fractional Ownerships

Fractional ownership, also known as joint ownership or vacation home partnership, is an arrangement where a group, most often complete strangers but sometimes family or friends, share the costs and use of vacation properties.

Fractional Ownerships vs. Timeshares

"The arrangements known historically as timeshares, and the arrangements now referred to as fractional ownership, fall within the legal definition of a “timeshare” in most U.S. states. From a strictly legal standpoint, the term “timeshare” refers to any arrangement under which a group of people shares use of a property based on time, regardless of whether they own the property and regardless of whether a management company or developer is involved in organizing or operating the property. But from a practical standpoint, there are significant differences between most of the arrangements historically referred to as “timeshares”, and most modern vacation property fractional ownership arrangements."
- Andy Sirkin

The meaningful difference between most old-fashioned timeshares and most modern fractional ownership arrangements is the extent of ownership and control given to the users of the property.

Timeshare holders have no direct ownership of the vacation property at which they purchased a certain time within a year to visit the vacation property. Since the timeshare holder has no direct ownership into the vacation property, they have no control over how the property is managed, and have little power over receiving any financial gain from the purchase. The only way for a timeshare holder to gain any financial profit off of their timeshare is to sale or trade the timeshare off to another person who is looking or involved with another timeshare.

Fractional owners have a deeded interest into the vacation property, and are recognized as an owner of the property. This gives some fractional owners the ability to manage and set up their vacation property to their liking. The group of owners who have bought shares of the property will usually work together to make decisions on the presentation of the property and the planning of the property's vacancies. With fractional ownership of a property, owners can provide vacations to tourists, friends, or even family. The vacations that the owner has can be sold as vacation packages.

NSI Business Solutions decided on leading their investors towards fractional sales because it is known to be a profitable market. Another reason is investors will be co-owners in the vacation property, giving them more involvement in the projects they take on.