Fractional Share Partner to purchase 2nd home in The Villages
 

We live in the Orlando are and are seeking one (1) 50% or Two (2) 33% partners to purchase a vacation home in The Villages. Also open to current home owners willing sell a % of their current home.

Fractional ownership is perfect for snowbirds or anyone seeking a second home who doesn’t want to purchase the entire home as they will not utilize it full time. We would agree on usage, with each partner responsible for their share of the cost of the home. We are flexible to the days we would utilize the home, are responsible, clean and pet friendly.

What a perfect way to purchase a home that you’ll not utilize full time! We still work full time in the Orlando are and are desiring a second home we could utilize in The Villages.

Hmmmmmmmmmmmmmm.

One of the things I love about The Villages is the level of care seen by homeowners to their property. I am thinking that Fractional Ownership would not be on that level.

In fact...I read this and tend to agree;

"With so many owners, stays are infrequent and short and upkeep and care is left to a paid person. As a result, there is little emotional connection between the owners and the property. The lack of “pride of ownership” promotes an apathetic attitude toward the property. The high traffic through the unit also means more wear and tear."

This looks like a do-it-yourself timeshare to me.

Exactly, and most people know that there is nothing perfect about timeshares.

Can of worms.

Huh? It is either a time share or a partnership purchase.
History-after all the hype neither works out well for those involved except for the one who sells it to others.

Sounds like a workable idea until a death occurs, or possibly divorce. I see all kinds of problems with this scenario. Better to just rent. When in a partnership, you never know who you will be hooked up with in the future. Some might think, I own a $300,000 home and can sell 2/3rds and get $200,000 dollars. Terrible idea!

Hmmmm, seems there are people afraid of this kind of arrangement! There can certainly be issues with fractional ownership, including disagreements about usage, Maintenence, furnishing etc. I can give you another perspective. We rented winters in TV for four years along with longtime friends and we stayed together and did almost everything together without a single disagreement. Now, this may not be the norm, but it is possible. We discussed and looked into buying a home in TV together 50/50 and almost pulled the trigger on a couple (wish we had they have appreciated about 50%) of homes. We were both going to continue as seasonal residents and we discussed some of the issues such as who would get the master br, or would we alternate, how would we choose the furnishings - etc. I am a Chartered Financial Consultant, so we also talked about executing a buy/sell agreement to address contingencies such as one party wanting or needing to sell, or the death of one of the parties. I had worked with these type of agreements for years so was comfortable with them. The compatibility of the parties is essential, and I would not venture into one of these partnerships with anyone I was not extremely comfortable with. By the way, when we were considering this we contacted the Villages management and were assured that up to four people could be on the title and get full resident privileges. Ultimately we and our friends each purchased separate homes about a quarter mile from each other.

This idea has so many potential problems, they are difficult to count. Suppose someone, who owns half of the house, decides to use the house as an Air BNB hotel and rent it out on a nightly basis, or rents out individual rooms? Or, decides to sell their half in weekly increments like a typical timeshare? How do you get homeowners insurance for the house? What recourse do you have if the person who owns half of the house refuses to pay the ongoing expenses? Who is responsible for deed restriction violations?

You can build a "no rentals" into the purchase agreement. And if someone is financially, legally responsible for a percentage of ownership in something - if the person refuses to pay their share, they forfeit their percentage of ownership.

Pretty standard legalese for timeshares. You can - or cannot - sublet, depending on the agreement. You can - or cannot - refuse to pay an agreed-upon expense, depending on the agreement. If you make it a 2/3 majority vote in all decisions over "x" dollar value, then any of the three might risk losing their share in the property by refusing to go along with the other two.

What could possibly go wrong?!
High percentage of possible unforeseen circumstances.

Most if not all, potential issues can be addressed in a legally binding buy/sell agreement. Again, you had better assume a good level of trust and understanding before entering into a partnership of this kind. It is almost identical to a legal business partnership.

I agree that you can structure a legal contract for just about anything. But, trying to enforce the contract requires hiring a lawyer, going to court, and spending a lot of money. In my opinion, this is a recipe for disaster, just like typical timeshares. Timeshares are so bad that most of them cannot even be given away.

While I agree there a lot of potential pitfalls, shared ownership is nothing like a timeshare.

What if one ownership entity goes bankrupt or does not pay their income taxes and the IRS comes after the property?

What if a 'slip and fall' occurs to a guest on the property while one owner is there and the others as owners also get sued?

Thank you for your perspective. Fractional ownership can encompass anywhere from 2 to 100's of owners. We are seeking 2 (maybe 3) owners total with no AIRBNB rights. We are seeking a partner(s) that takes care of their dwelling and is a good fit for the Villages.

Not a timeshare
 

Wikipedia describes fractional ownership as "Fractional ownership is a method in which several unrelated parties can share in, and mitigate the risk of, ownership of a high-value tangible asset, usually a jet, yacht or piece of resort real estate"

Think aircraft fractional ownership, not timeshare fractional ownership.

We have friends who did a 50-50 split on a ski condo in NH for 20 years and they use it as well as rent it out. It’s 100% about compatibility / cooperation between parties.

Of course it’s not for everyone as you can read here as most retirees on here are highly risk adverse.

Most larger private aircraft are owned in fractional ownership situations. (NetJets, Wheels Up, Flex Jet, etc..). Most celebrities own only a fractional share of the aircraft they fly in. It works because the owners are vetted and there is a contract between the owners.

There are people out there that want a second home in The Villages that don't desire to pay for the entire home. Hopefully, this post finds those people and not the naysayers that say this won't work.

My understanding is that only up to four people, included on the title, can get resident passes.

To the OP, have you considered getting a reverse mortgage on your current home, to help finance the purchase of a second home in TV for just yourself? :duck:

To sum up most of the posts this is a bad idea on too many levels.

One thing is for certain and I speak from experience there is absolutely no way I would partner on a house in TV with someone I had not known for years and got along with well. Even in that situation things can unexpectedly go south. If I could not afford to own a second home on my own I would rent.

Bad, bad, bad idea. Too many problems would arise. If you can't afford to live here, don't come here.

Murphy's law is waiting just over the hill, would you consider a mail order bride? If not its a big NO

I would definitely consult with an attorney. There has to be a contract between the parties as to who is responsible for the upkeep, utilities, deed restrictions, etc. This type of an arrangement makes me nervous. Friends may end up enemies which is the least of your worries. To be honest, I would not do it.

Of course. Thats why you need a legal iron clad contract. All the things you named are common sense.

We have stayed in one of those properties in Orlando. Neighbors (renters) next door were nightmares. Would be shameful if the villages became like that.

Sorry, but this struck me as strange. Plus, the only posts are looking for money investment. Instincts tell me "hard no".

Doesn’t add up.
 

Maybe I’m missing something here 50% + 33% + 33%= 116%. Are we seeking to make a profit, how do you equitably divide the year? In my opinion a problematic situation for all involved.:boxing2::boxing2::boxing2::MOJE_whot::oh dear::throwtomatoes:

Sounds like a scam. Caution!

I think this could work between close, compatible friends or maybe in-laws who have perhaps taken many vacations together and did fine, and maybe also able to use it at the same time. But would never take the risk to do this with strangers. But - why not buy on your own (maybe smaller and cheaper than you would prefer) and rent it out as much as possible when you are not using it? There are no rules about renting here - it is totally up to the homeowner. I think there might be a demand for short term rentals during the season especially, which could suit the original poster.

While I agree that the vast majority of owners do use diligence to take care of their property, there is an alarming trend toward unkempt homes and lots. Grass growing up through the shrubs, horrible mildew on the driveways, concrete drains and walls and curbing, grass dams preventing water run off to the culverts. While it's not excusable for snow birds to allow their properties to go to seed, it's particularly questionable for full time residents to treat their neighbors to unsightly homes. We're thankful the all neighbors within eye shot of us take great care. It would be tough to sell a home next to an "unkempt" property. Please actually LOOK at your home when you drive up. Ron.

Don't do it. Purchase your own home here. You don't need the complication of a potentially deadbeat business partner who doesn't hold up their end of the bargain.

I never get tired of posters telling people what idiots they are for considering something. There are so many experts on everything that it is a wonder people don’t come here for marriage counseling, legal advice or any other important milestone in their life. We considered co ownership and not because we couldn’t afford our own place, but because since we were both (Couples) going to be seasonal residents it just made sense to split all the costs, and because we got along so well. I personally, would not consider doing it with a stranger or strangers, and would be sure to have everything spelled out in a legal buy/sell agreement before any money changed hands.

My thoughts/questions - Would TV treat both couples as owners in a single-family residential area? Would both owners be at TV in the same months? I have read that when you lease your home that you turn in an ID so that an ID can be issued to the person leasing/renting your home. I'm not in TV yet but will be in 30 days so I don't know if that is accurate or not. I am presuming that if this is a rule of TV it is so there is not double dipping on the fees. If I was considering it, I would want to make sure that all four people could play golf at the same time if they want.

Mentioned in an earlier post....up to 4 names in deed with full amenity privileges.

I agree that, unless you have known the person for many many years, this could turn bad fast. Iron clad contracts can end up in court when one of the signers wants to get out of it, or comes up with a situation not covered by the contract. And if it ends up in court, I think the property would go to seed in the meantime.

Speaking as a full-time resident here, I don’t care for people thinking of The Villages as a “resort”. This is my home now, and I have gotten to know my neighbors well. For “transients” (yes, this includes renters) or part-timers with less at stake, I have seen people come in for a short period of time and party like this is a resort, drink to excess, and/or drive around laughing, screaming, and dumping trash on the cart paths. Then they leave.

A fractional owner, in my opinion, is even less desirable than a renter.I recognize that not every renter does this, but I think many of us have seen this behavior, so don’t reply telling me not everyone does this. I know that.

This is my opinion. If a fractional owner moved in next to me, I wouldn’t want to get to know them, because they aren’t here long enough to establish a deep relationship with their neighbor. If a neighbor rented their home to the same person on a regular basis, I would be able to get to know them.

Again, this is my opinion.

The orlandos in the shoe 👠
 

i'd rather live in the

smallest cottage

than this

arrangement