Elite fractional ownership enables buyers and family members to own an extraordinary fractional vacation home in a dream destination – a special place to call their own and create lifelong memories. When you are a part of our fractional home ownership model – or “shared ownership” – you enjoy all the benefits of owning an exceptional vacation home at a fraction of the cost, and without any of the management responsibility.
Elite Destination Homes has over 10 years of sophisticated experience bringing liked-minded people together to own a home in a destination they love.
You can choose from our available fractional ownership homes, or fractionalize your vacation home to be part of the Elite Destination Homes collection.
Fractional ownership benefits include:
Easy Travel. Your Elite Concierge will not only schedule your reservation, but also arrange your transportation, provide a pre-grocery shopping, make restaurant reservations, arrange tee-times and excursions, hire baby-sitters and much more.
Professional Care of Your Home and the Partnership. Your shared ownership home is administered under the reputable Elite Management Flag, with all aspects of property and partnership management taken care of on behalf of the Owners.
Free Home Exchange. You have the privilege of exchanging time at your Elite home with another fractional owner to spend time at their vacation home. Elite’s dedicated Owner Concierge handles the trade and makes all the arrangements free of charge.
Elite Destination Homes is a division of Real Estate Equities, which has over 40 years of committed teamwork caring for and optimizing the value of investment real estate.
Becoming an Elite owner is a four-step process.
Learning About the Elite Model and Properties
- Through an initial conversation, usually over the phone, the Elite team will get to know your goals, tastes, expectations and needs – and those of your family, too.
- During these conversations, we provide you with comprehensive background information regarding the home, the market and the fractional ownership model.
Assessing Financial Parameters
- If we are both comfortable with exploring further, we then exchange more details about potential properties, budgets, costs and expectations.
- We also ask you to share information on your financial qualifications, as corroborated by an appropriate financial representative.
- Through this process, we not only determine which homes may be a good fit for you, but also which fractional owners to pair you with in order to create a comfortable relationship.
Visiting Elite Properties
- At this point, we at Elite know you and your expectations thoroughly and will invite you to visit potential properties.
- Alternatively, we invite potential buyers to drop by our Minnesota office, or we ask for the opportunity for us to visit you.
- You will also have the opportunity to review the legal agreements and speak with an Elite owner or two about his or her experiences with Elite.
Finalizing a Decision
- This process allows us to get to know each other and to provide a complete perspective on ownership of an Elite Destination Home.
- If you decide to move forward and execute the necessary legal agreements, we facilitate an owner orientation meeting with you and your family members to make sure everyone understands how our reservations and use policies work.
- Then choose your dates of travel in your new home!
Would you like to start the process of ownership? Contact us.
The Elite Model enables buyers and those they love to own an extraordinary vacation home in their dream destination – a place to build equity and memories alike.
From our first conversation forward, we create a comfortable, collaborative environment intent on pairing you with other like-minded families. Together we will explore what you are looking for in your fractional home – your dream destinations, budget, costs, and service expectations – and help you find the perfect property for you to choose as your vacation home.
Unlike timeshares, which grant as many as 52 parties the right to use a given property for a week annually, Elite owners – limited to six per property – actually own the home itself and get use of the home for longer time periods.
Hallmark features of the Elite model:
- There are no assigned weeks in Elite homes. You get to use your vacation home as you would like to, which can change from year to year.
- And when you’re not able to enjoy it yourself, Elite rents all unused time to generate rental income for you.
The legal structure of ownership varies by location, as each country in which we operate has unique laws and regulations. However, our legal team is experienced in such real estate transactions around the world, and can answer any questions you might have about a specific Elite Destination Home.
If you already have a vacation home, learn more about what it would look like to fractionalize it.
Does fractional home ownership seem right for you? Contact us.
We hope to answer many of your financial questions with the topics below.
It’s important to note that Elite Destination Homes are primarily intended for the enjoyment of their owners, friends and families. Given the volatility of the global real estate market, we cannot make guarantees concerning fluctuations in the value of any given property. That being said, our properties are magnificent and in outstanding locations, both of which favor value appreciation in the long term.
Fractional Ownership Costs
Depending on the home and your ideal ownership stake, ownership interests range from $100,000 to more than $1 million. Generally, a budget of $250,000 will enable a family to become co-owners. This gives you approximately 35 days to use in your new vacation home. Please note, this varies per home.
Financing for Fractional Ownership
Elite Homes available for fractional ownership often include a mortgage option, and qualified owners may elect to finance up to approximately half of their purchase. Terms of this financing vary by property and by geography. We will be happy to share details once your interest and suitability for a given home have been determined.
Annual expenses vary widely based on the home, ownership stake and financing. Once the Elite team has helped you determine if its model is a good fit for your goals and needs, we will be happy to share details about annual carrying costs for specific properties that appeal to you.
Maintenance and Management Responsibilities and Costs
The Elite team and its local representatives will manage and maintain Elite Destination Homes to the highest standards. This includes cleaning services between stays, upkeep, capital improvements, the training and oversight of local property managers, managing the property’s budget and providing quarterly reports to owners. The cost of these services is shared by owners, apportioned in accordance with their ownership percentage and their annual use of the home.
In addition to their personal enjoyment of an Elite Destination Home, owners can also earn rental income from their property. Any unused time is rented by Elite on your behalf to offset your carrying costs of ownership. Elite doesn’t charge commissions on the rent we generate for our fractional owners – we pass it all through to you. Please know we are just as pleased if owners use their home 100 percent of the time with no rental activity.
Financial Management of your Home
Elite provides trusted financial management for your home including property budgets, rental income projections, taxes, bill payment, reconciliation, financial reporting and year end tax preparation. We prepare budget and rental income projections for each home annually. Quarterly, an income and expense report is sent to owners to keep you up to date on the financial state of your property.
Selling Your Ownership Stake or Passing It on to Heirs
Elite generally recommends that owners maintain their stake in an Elite Destination Home for at least seven to ten years. However, you are free to sell your fractional interest at any time. You can ask Elite to assist you with the sale, or find a buyer on your own. Elite reserves the right to screen potential buyers for financial qualifications and approve their suitability for partnership in a given home. Owners can also will their fractional ownership of an Elite Destination Home to their heirs and/or estate.
We will provide specific financial information for any Elite Destination Home you may be interested in. Contact us.
How We Compare
We are often asked how fractional ownership differs from timeshares, destination clubs, and private residence clubs. Each one, under the right circumstances, has its own unique features and benefits, as well as unique limitations and risks. It’s up to the prospective buyer to try them on and find out which one is the right fit.
Timeshares vs. Fractional Ownership
As the name suggests with timeshares, you are buying time not real estate. With a timeshare, you are dividing the time at your 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.
The main differences between timeshare and fractional ownership are:
Timeshares grant as many as 52 parties the right to use a given property for a week annually. Elite owners – typically 6 per property – actually own the home itself and have 5 – 10 weeks to spend vacationing at their home.
Timeshares are usually located in hotels or condominium communities. Elite’s fractional homes are stand-alone homes and villas, except in cities like Paris and New York.
Timeshares are typically priced at 3-10 times the actual value of the underlying real estate, forcing users to pay a premium for less-than-premium properties. By contrast, our fractional homes are priced to reflect their intrinsic value, plus a modest 20% markup at the time of development.
Timeshares have assigned weeks. Weeks are not assigned in Elite homes. You get to choose when you want to use the home, and it can vary from year to year.
Timeshares require a seven-night stay. As an Elite owner, you can stay as long or as short as you would like.
Timeshares and Elite fractional homes both provide exchange opportunities.
Private Residence Clubs vs. Fractional Ownership
Private residency clubs, which are often known by their acronym PRC are run by highly respected hospitality companies, such as Marriott, Ritz-Carlton, St. Regis, Four Seasons, Hilton and Starwood, and enjoy first-class amenities. However, these homes are often units in a resort or a multi-unit building that have been developed exclusively for the purpose of a fractional ownership model.
While these models do typically allow for deeded ownership, it can be difficult to realize the benefits of one’s investment due largely to the developer’s high profit margins and the management team’s corporate overhead and marketing budgets.
Historically, the prices of PRC’s range from $200,000 to upwards of $2,000,000 for 4 weeks of use. By contrast, Elite Destination Homes offers prospective buyers a price that is more closely related to the intrinsic value of the property itself.
Destination Clubs vs. Fractional Ownership
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 are actually paying for access to use the club’s vacation homes. With fractional ownership, you actually own real estate.
Destination clubs resemble country clubs – they have members that are charged a large initiation fee and annual membership dues to gain access to the club’s vacation homes. They often rely on a constant influx of new members and their cash – a model that degrades exclusivity and, inevitably, the users’ experiences 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 an exit 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 2006, there were 23 major destination clubs worldwide. Since then, only three major clubs have not gone through a merger, major restructuring, or bankruptcy. The financial impact on members of these troubled clubs has been serious, ranging from special assessments and increased annual dues, to the loss of all of their money, 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 hope this overview of the various types of ownership is helpful. For further clarification, feel free to contact us.
Enjoy World-Wide Travel.
As an Elite fractional owner you have the privilege of world-wide travel through Elite’s free home exchange program. You have the option to exchange stays in your home for stays within the Elite portfolio of homes.
Whether you enjoy sandy beaches, the great outdoors or a sophisticated city – we make it possible for you to create memorable moments with those you love in Elite’s exceptional Vacation Homes.
The Elite exchange program is like using your cousin’s place in the Caribbean in exchange for letting her use your fractional home in Paris.
Here’s how it works:
- Email the Elite Concierge with which home you would like to visit. email@example.com
- Elite will contact the Owner(s) of that home on your behalf to determine if they would like to travel to your home.
- If an Owner says yes, we make the trade and arrange all the details.
- Your desired dates of travel do not need to match or be within the same year. At some point in time, you will use each other’s homes.
- The trade stays active until travel has occurred for both homeowners.
- There are no fees, black-out dates or other complicated systems.
Start seeing the world today as an Elite owner. Contact us.
Five Star Concierge Services – a Hallmark of Elite.
Elite owners have great vacation experiences every time they visit their homes.
You’ll develop a close relationship with your Elite concierge, whose mission is to schedule your stays,exchange requests and look after you and your guests, ensuring that your stay is a seamless, satisfying experience.
Arrive to a stocked fridge, a clean house, fresh flowers and a warm welcome at your own home. Your Elite concierge will provide:
- Transportation (airport transfers, car rentals, etc.)
- Pre-grocery shopping
- Recommendations for local activities and excursions
- Scheduling of activities (tee-times, boat rides, museum passes, theater tickets, scuba lessons, etc.)
- Restaurant reservations
- Child care
- Catering and chef services
- Golf tee-times
- Spa services
- And much more…
Once you arrive at your home, your local Concierge will
- Coordinate and schedule all requested concierge services and activities
- Meet you at your home or at the airport with a warm welcome including beverages and a light snack
- Be available to you during your stay to assist with maintenance issues and emergencies
However far you’ve journeyed, you’ll be home. Contact us.
We Care for Your Home.
We handle all aspects of caring for your property. Rest assured that a team of seasoned real estate professionals are overseeing your vacation home asset as though it were their own.
Elite hires, trains and oversees the best onsite Property Managers which provide the following services:
- Property care, improvements, troubleshooting and maintenance
- Purchase of supplies and household items
- Housekeeping, scheduling and inspections
- Annual contract renewals for service providers, insurance, etc.
- Emergency services for inclement weather and unexpected repairs
- Departure inspections for guest damages and replacement
As an Elite owner, you are also kept up to date with a complete suite of financial, marketing and general ownership reports on a quarterly basis.
Finally, none of your precious vacation-time will be spent opening, fixing or re-closing your vacation home when you own with Elite.
We care about every aspect of your vacation home. Contact us.
Contact Elite Today
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