Finally, the right way to INVEST WISELY
Finally, an investment model for shared ownership that is more flexible and owner-friendly than traditional fractional home ownership, which is often limited to units within a particular resort or development. Offered only by Elite.
Elite’s ownership groups — typically just you and three or four other like-minded owners — acquire a luxurious vacation home in a way that eliminates all of your headaches, increases the value of your investment and enhances the quality of your personal relationships with family and friends.
What is the FIT about?
ELITE Destination Homes’ Fractional Ownership begins with the fit.
From our first conversation forward we create a comfortable, collaborative environment intent on pairing owners and homes on a like-minded basis. This distinguishing feature sets ELITE apart from other traditional fractional and timeshare schemes.
Successfully developing fractional partnerships hinges on attracting compatible visions and goals. To better understand our future homeowners, we set up a “fitting conversation” to initially identify expectations, hopes and needs of not only the new fractional owner, but also his or her partner and loved-ones.
During this conversation, those involved expound their needs while we at ELITE provide comprehensive background information regarding the new home, the market and the model itself. If, throughout the course of the conversation, we feel a partnership between both parties doesn’t fit, we say so, saving both the potential owner and other partners the time and trouble of a less than perfect relationship.
ELITE Fractional Ownership is not for everyone, but for those whom it befits, this collaboration not only helps in the first home purchased, but can also lead to third, fourth or even fifth homes—essentially all for the price of one.
What is the process for becoming an ELITE owner?
After our initial meeting, we continue the exploration process through mutually discovering more about potential properties, budget, costs and expectations. We also ask the owner to share personal information indicating financial qualifications as corroborated by a financial representative. Through this process we not only determine which homes may be for you, but we also understand the limits of your investment, which areas may be more beneficial for your money and which fractional owners to pair you with in order to create a comfortable relationship.
At this point, we at ELITE know you and your expectations thoroughly and invite you to visit your potential property, stop by our Minnesota office or allow us to visit you and create a more personal relationship. Often times we will meet you at the destination or visit your hometown. You also have the opportunity to review the agreements and speak with an ELITE owner or two about his or her experiences with ELITE’s model.
We use all this collaboration in order to successfully make confident decisions based on extensive information needs assessment.
Once you become an owner we have an orientation meeting with you and your family members to learn more about specific travel preferences, reserve dates as well as to make sure everyone understands how the reservation and use policies work.
How are reservations handled for ELITE fractional owners?
Owners can make or cancel reservations at any time.
Your house availability is viewable on our website and is accurate 24 hours a day.
There is a yearly reservation process that is generally handled in the Spring of each year, when owners sign up for the dates they know they will want to use their home in the upcoming season.
Because of the very small number of owners in an ELITE fractional home there are very rarely ‘ties’, where more than 1 owner wants the same dates. In these cases we first talk to the owners and see if they have any flexibility. This almost always resolves the matter. If not, we have a tie breaker system that will resolve the week in question.
How do ELITE owners typically use their fractional residence?
Most owners use their home 4-5 times per year. The average stay is 7 nights, but ELITE owners may use their homes for as little as one night and up to as many nights as they request, subject to other owner reservations.
Owners typically use 3-4 weeks for their own enjoyment and gift 1-2 weeks to family, friends, employees, clients or to charities they support.
Lastly, ELITE owners are increasingly traveling through the World of ELITE exchange program.
How does the ELITE Exchange program work?
When you become owner in an ELITE Destination Home, you also become a member of the ELITE family. Our family includes luxurious homes in the most popular destinations and this list is growing rapidly
Unlike other exchange schemes, The World of ELITE Exchange Network is not focused on finances or blackout dates. Instead, we make the exchanges comfortable and personable—as though you own a home in Cabo while your good friend owns in Paris, each craving a change in scenery—with no petty fees, points or blackout dates. When you use another home in the network, economically its as if you stayed that week in your own home.
We handle all the interaction with the other owner, so all you have to do is call or email your concierge at ELITE who will handle the rest for you.
While most buyers purchase one asset with ELITE, some of our owners own in multiple ELITE homes, with one family owning in four separate ELITE properties. Either way, all of our owner have access to the World of ELITE.
How much does it cost to own part of an ELITE home?
Ownership interests range from $100,000 to over $1,000,000 depending on the home, the destination and the amount of ownership
Generally a budget of $250,000 will enable a family to become an ELITE owner
Annual expenses vary widely based on the home, percentage ownership and financing. The ELITE team will be happy to share details on annual carrying costs once they have helped you understand if the ELITE model is a good fit for your goals.
How much does ELITE charge?
ELITE has a margin of approximately 20% on its fractional homes. I.e., 80% of all owner funds are used to acquire the homes and prepare them for use by owners and guests.
Does ELITE offer financing for fractional ownership interests?
For select home, ELITE provides a financing option to qualified owners for up to half the purchase price of the fractional interest.
Terms of this financing vary by house and by geography. We will be happy to share details once your suitability for a given home has been determined.
What if I want to sell my fractional interest?
Any ELITE owner is free to sell their interest at any time.
Part of the FIT dialogue is to determine desired holding period for a family. One of the unique advantages of the ELITE fractional ownership model is the ability to sell the entire vacation home. Generally ELITE targets a 10-year hold for each asset. This may vary depending on the particulars of the home, its owners and the market for resale of the asset, but 10 years is a good guideline. In all cases the ELITE model provides a solution for any owners who would like to own the home well beyond 10 years.
How does ELITE differ from timeshares?
ELITE Destination Homes is true ownership. You own a significant percent, e.g. 20%, of a multi-million dollar vacation home. It is very similar to a group of 4-5 families owning a substantial home together.
As the name suggests, with timeshares you are buying time not real estate. You are sharing the home with up to 52 owners and the purchase price you pay has been inflated so aggressively it is difficult, if not impossible to recover your initial investment. Hence, the television ads promoting timeshare resales at 20% of the original value.
How does ELITE’s fractional ownership differ from other fractional ownership models?
FIT and Flexibility. ELITE takes the time to understand you, your situation, your expectations and your vision. We select unique homes that stand alone, not as a part of a fractional or timeshare community. We also create uniquely small and compatible ownership groups. So instead of traditional fractional ownership where 10-15 families share a cookie cutter vacation property, ELITE fractional owners are five compatible families co-owing a unique vacation home with one-fifth of the investment, one-fifth of the risk and nearly 100% of the enjoyment.
How does ELITE fractional ownership differ from Destination Clubs?
While ELITE’s fractional model most accurately resembles owning a second home, destination clubs resemble country clubs with membership fees and access to homes, rather than equity ownership of the homes.
Fortunately this model has evolved and there are some equity clubs, however, club members are still extremely vulnerable to the success or failure of the club in order to recover their investment capital.
With ELITE, 5 families own a home together. Period. There is much safety in a stand-alone ownership entity, with an operating agreement and a single asset. Even if ELITE fell on hard times, the owners are left with an asset they understand and could sell.
What is the legal structure for ELITE fractional ownership?
We make it our job to thoroughly understand the legal landscape of each home’s location so that every ELITE fractional ownership group is legally compatible with each destination.
Can my ELITE fractional interest be passed on to my heirs?
Generally ELITE fractional ownership interests can be willed to your heirs and/or estate. Each ownership group is slightly different so the ELITE team will make sure to educate you on the given parameters of a house you are interested in.
Contact
To discuss fractionalizing your vacation home with Elite, contact Kathryn Lynden.
Investing with Elite helps our owners and their families become a part of a destination they love, in a way that’s safe and smart. To learn more, download our Vacation Home Investment Guide.
We would love to speak with you in person about the many bottom line advantages of Elite. To tell us a little bit about yourself, simply complete our contact form.