Frequently Asked Questions
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 of all owners. 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 purchase, but can also lead to third, fourth or even fifth homes—essentially all for the price of one.
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.
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 following year.
Because of the very small number of owners in an Elite fractional home there are very rarely ‘ties’, where more than one 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.
Most owners use their home 4-5 times per year. The average stay is seven 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 Elite’s free exchange programs.
When you become an owner of an Elite Destination Home, you have the privilege of world-wide travel to other luxurious Elite homes in the most popular destinations.
Our exchange program is simple and free. It’s as if you were trading time in your best friends vacation home — you use time in their home, and they use the same amount of time you your home. The dates don’t need to match, and the trades never expire until you use each other’s 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.
There are no fees at all to exchange into other homes. It is just a fair swap of time in each other’s homes.
While most buyers purchase one asset with Elite, some of our owners own in multiple Elite homes. Either way, all of our owner have access to the Exchange program.
Ownership interests range from $100,000 to over $1,000,000 depending on the home, the destination and the amount of ownership they purchase. 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 elected at time of purchase. 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 you.
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.
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.
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.
Any Elite owner is free to sell their interest at any time. You can ask Elite to assist with the sale or find a buyer on your own.
Generally Elite fractional ownership interests can be willed to your heirs and/or estate.
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.
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 hotel or condominium complex, and we create small and compatible ownership groups to own in a destination they love. So instead of 15 families sharing a cookie cutter vacation property in a residence club, or 52 families sharing one hotel unit for a one assigned week. Elite fractional ownership has 5-6 families co-owing a multi-million dollar vacation home at a fraction of the cost, with the flexibilty to use the home when they would like to, for multiple weeks a year, sharing it with those they love.
Destination clubs and fractional ownership are two are very different models. The biggest difference is that you do not actually own anything in a Destination Club – you pay for access to use the club’s vacation homes. With fractional ownership, you actually own real estate.
Destination clubs resemble country clubs – it has members that are charged a large initiation fee and annual membership dues to gain access to the club’s vacation homes. Often, they rely on a constant influx of new members and their cash – a model that degrades exclusivity and, inevitably, the users’ experience because there are too many members and the homes you desire are not available for you to use.
Leaving a destination club may take a long time as you get put on a waiting list and are only allowed to leave when a certain number of new owners have joined the club. This creates long waiting lists that may take a few years for you to reach the top.
In the event that a destination club fails, its members’ investments are at risk. In the event a Destination Club fails, its members lose their entire initiation fee which typically ranges from $300K to $600K.
By contrast, Elite Destination Homes’ simple, fractional ownership model is actual ownership of a second home with a few other like-minded families with a clear operating agreement governing the home, including the ability to sell your home at any time.
We are available for all of your other questions. Contact us.