Has anyone here explored fractional co-ownership for real estate investing?

Has anyone here explored fractional co-ownership for real estate investing?

Developer · Greene County, NY · Member since 2019 · 26 posts · 4 votes

I wanted to share something we’re currently doing with Boheme Retreats, our nature-based hospitality/glamping brand.

After leasing land for the past 4 years, we finally found a 100-acre farm that feels like the next evolution of the brand. Boheme started with vintage camper stays and inclusive nature retreats, but we’ve always had a bigger vision around land ownership, farm stays, wellness, events, and creating a retreat space rooted in community.

Instead of going the traditional route of raising from one or two large investors or relying fully on bank financing, we’re using the Fractional app to allow our community to co-own the land with us.

So far, we’ve really loved the process. It has made it easier to organize commitments, educate potential investors, and give everyday people a way to participate in a real estate opportunity that would usually be out of reach.

The model feels especially aligned for us because Boheme has always been community-driven. Our guests, supporters, and early believers are now able to become part of the ownership story, not just customers of the brand.

Curious if anyone here has done fractional co-ownership before, either as an operator/sponsor or as an investor?

I’d love to hear what worked, what you learned, and anything you wish you knew before getting started. Especially from anyone who has used Fractional or a similar platform for acquiring hospitality, land, farms, campgrounds, or short-term rental assets.

For us, buying this farm is about expanding from glamping into a full farm stay and retreat model, while giving our community a chance to build wealth alongside us.

Would love to hear your thoughts or experiences.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
3mo

My reactions:

As an investor, that is a hard pass.  This is too much like a timeshare for my tastes.  I'd rather make my money on good investments and then I can afford to rent whatever I want to go on vacation.  This has too many of the same downsides as a timeshare.

As an operator, I would also pass. We have over 250 investors in our syndications.  Just managing that is enough.  This sounds like cat-wrangling.  If all the investors have allocated time to come stay at the property and some say in its management and upkeep, prepare yourself for regular challenging discussions with your investors as the years go on.  Some will be mad they aren't making enough profit and want you to cut expenses.  Others will see this as their vacation home and be unhappy with your level of upkeep.  

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    3mo

    My reactions:

    As an investor, that is a hard pass.  This is too much like a timeshare for my tastes.  I'd rather make my money on good investments and then I can afford to rent whatever I want to go on vacation.  This has too many of the same downsides as a timeshare.

    As an operator, I would also pass. We have over 250 investors in our syndications.  Just managing that is enough.  This sounds like cat-wrangling.  If all the investors have allocated time to come stay at the property and some say in its management and upkeep, prepare yourself for regular challenging discussions with your investors as the years go on.  Some will be mad they aren't making enough profit and want you to cut expenses.  Others will see this as their vacation home and be unhappy with your level of upkeep.  

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3mo
    I agree with Greg. One thing to understand also when you're doing fractional is: how are you structuring it? Are you complying with all the state laws and government regulations? To me, fractional is no different than a syndication, but maybe there are ways around it. The fractional opportunities I have seen in the past were not very exciting because they were very fee-driven and fee-heavy for the sponsor and really did not appear to have much upside for the investor.
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  • Investor · Brooklyn, NY · Member since 2025 · 5 posts · 3 votes
    2mo

    Fractional ownership is common in Mediterranean countries since 90s. Especially as summer village properties. Like an old membership model. 

    It has many advantages for the owner. But the management is the most important layer.

    I have not seen a well settled model here but I am interested in this topic too. 

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2mo
    I have looked at some funds that have fractionalized the real estate, and as others mentioned, it seems a lot like a timeshare. The other issues that I saw with it were: - The property was essentially acquired at full market value. - The sponsor was collecting significant upfront fees, including an acquisition fee, a management fee, and other fees, while also having to pay somebody to manage the property at a market rate. - They also were going to collect a disposition fee on top of potential broker fees. When you add all of this up, I could not see any way investors were going to make money in these types of deals.
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  • Developer · Greene County, NY · Member since 2019 · 26 posts · 4 votes
    2mo

    Thanks everyone for your thoughts on this subject.

    How we’ve structured it is nothing like a time share.

    I’ll be sure to provide updates on how things go from my perspective and our investors 😊

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