Fractional real estate investment platforms (Part 1): with usage
Fractional ownership with the right to use the home.
In the previous post we distinguished between two types of real estate investment platforms: the ones where you can access and use the real estate asset after investing, and the ones that offer fractional ownership of properties as mere investments products without the right to use property.
In this post we focus on describing some the first type: property investment with the right to use it.
What is it again?
You invest in a second home along with other investors and you get, not only legal and real ownership in the property, but also the rights to use the home part of the year. The homes are fully maintained for you. Most popular platforms:
US:
Ember Home and Pacaso – they sell from 1/8th. Min investments go around ~$300,000 and up to for 1/10th shares.
Destination clubs offering equity plans.
Mexico:
Ancana and Kocomo — from 1/8th as well. Min. investment go from ~$100,000 for 1/8th ownership.
Costa Rica:
Abroada — us :). Min. investment from $50,000 for 1/10th ownership.
Europe — there are a bunch of nascent companies there so let me know in the comments if you're interested and we'll cover the European fractional real estate investment landscape in a separate post.
Elsewhere — we need to be fair and mention that the space is getting hot and we're aware of a few other players in Asia (India and China, specifically) that we may not cover in this newsletter unless you specifically request it.
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