SOLUTIONS FOR TODAY'S MARKETPLACE
Helping developers through tough economic times
Fractional ownership has been the fastest growing segment of the second home industry for the past few years. However, the pace of the growth has slowed more
recently due to the current economic crisis. Even as these conditions continue to develop, demand is still growing for alternative ownership products with sound value propositions.
E3Solutions is introducing a fresh new fractional ownership model which offers the best value proposition and meets the demands of today's discerning consumer. This new fractional model can work for all developers of all product types and price points, from ultra luxury to ultra affordable. E3 believes, that for many people, fractional is the best way to own a second home regardless of product type or price point.
One of the main challenges that real estate developments face today is the consumers inability to gain financing to purchase second and vacation homes. There still is demand in the marketplace for the second homes, but many buyers are forced to postpone their purchase until they are able to get financing.
Fractional ownership can be a perfect solution to resolve some of these financing issues. It allows the potential buyers to use their down payment reserved for the whole ownership purchase to actually purchase the fractional product so there is no need for financing.
Historically, more than 50% of the fractional homes have been purchased with cash. Therefore, many of the developers are discovering that providing developer financing for the consumers can be very profitable. Since the fractional pricing structure and the down payment for the fractional product often covers the product and sales cost, developer financing is a viable alternative to commercial lending.
