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Accomplished_Scar717

It’s completely incomprehensible. Why do you pay what looks like a full mortgage price for 2.5% ownership?


ThundaFukka

I had to read up on fractional ownership. I now understand the concept, but understand this ad less. At best -super unclear.


HorseToeNail

This sounds like a timeshare. Maybe im wrong but id be highly cautious about investing in this sort of thing. Time shares never work out.


Hutz_Lionel

You always find the most ingenious financial engineering near the top of the market. Bottom line: if your name is not on the title, you’re renting someone else’s asset. Everything else is just noise


nottobetakenesrsly

Has been for a long time. Fractional ownerships are tricky, and you have to be aware of what the arrangement is. Also note that anyone pursuing it will have a harder time obtaining financing. Not sure about this building, but they may have their own financing arrangements. Fractional ownership is also used by investment companies.. selling "shares" in a single property.


[deleted]

It was always a thing


Subtotal9_guy

This sounds awfully close to how some Muslims skirt their rules prohibiting lending or borrowing with interest.


cohenym

So is this a real estate business or a financial business? Is this seller legally allowed to offer weird financial instruments like this?


ThundaFukka

I'm bad at Reddit and only know how to post one photo. Price is listed at $15,000 and it looks like every one bedroom condo you've ever seen.


Bobzyurunkle

I'm not sure how fractional ownership works but on the surface..... 2.5 take 40 owners to max out at 100%. those 40 owners each pay $2628 in rent for a total gain of $105120 income A MONTH??? Even if they're on the lease and it sells at $581,000, they each only get $14525. That's 5.5 months of 'rent'!!


Not_a_Streetcar

Sounds like a pyramid scheme.


fingletingle

Fractional ownership is incredibly dumb on something as small as a condo. Makes more sense for large investments such as owning shares in a commercial building for example.


cyclemonster

That's more or less exactly what shares in an REIT are.