Fractional Real Estate
Invest in portions of properties with lower capital requirements, enabling diversification across multiple real estate assets. This innovation democratizes access to this historically high-performing asset class, allowing investors to build a diversified property portfolio with smaller amounts of capital.
Accessible Investing
Lower barrier to entry than traditional real estate investing
Diverse Properties
Spread investments across multiple locations and property types
Professional Management
Experienced teams handle property selection, maintenance and tenant management
Key Features
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Lower entry barrier compared to traditional real estate investments
Begin investing with as little as $5,000, compared to the hundreds of thousands required for traditional property ownership, making premium real estate accessible to more investors.
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Portfolio diversification across multiple property types and locations
Spread capital across residential, commercial, industrial, and specialized properties in different geographic markets to reduce property-specific and location-specific risks.
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Passive income through rental yields and capital appreciation
Receive regular distributions from rental income while potentially benefiting from property value increases over time, offering both cash flow and growth potential.
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Transparent ownership structure with clear legal framework
Each property is held in a dedicated legal entity with investors owning proportional shares, ensuring clear ownership rights, transparent management, and defined exit strategies.
Potential Returns
Fractional real estate offers returns through both regular rental income and property value appreciation. Historical real estate performance indicates consistent long-term growth, with potential for enhanced yields from professional management.
Return Drivers:
- Rental income from tenant leases
- Property appreciation over the investment period
- Strategic improvements and value-add renovations
- Professional management optimizing operating costs
Risk Assessment
While real estate generally provides more stability than many other investments, market fluctuations, property-specific issues, and economic downturns can affect returns. Fractional investing helps mitigate single-property risk.
Risk Factors:
- Real estate market cycles and corrections
- Local economic conditions affecting property values
- Potential periods of vacancy or tenant issues
- Limited liquidity compared to publicly traded investments
How It Works
Property Selection
Our team identifies and vets high-quality properties with strong income potential and growth prospects using rigorous financial and market analysis criteria.
Fractional Investment
Investors purchase shares in the property through a legal entity, with ownership rights proportional to their investment amount and clear documentation.
Income Distribution
Rental income is distributed to investors periodically after expenses, with potential for capital gains when the property is sold according to the investment timeline.
Investment Example
A group of investors pooled capital to acquire shares in a multi-family apartment building in a growing urban area with strong rental demand.
Investment Details:
- Property value: $2.5 million (12-unit building)
- Total investment raised: $750,000 (30% equity)
- Minimum investment: $25,000 per investor
- 5-year target hold period with professional management
Outcome:
- Average annual rental yield: 6.5%
- Property sold after 5 years at $3.2 million
- Capital appreciation: 28% over 5 years
- Total annualized return: 11.2% (IRR)
- $25,000 investment returned $42,750
Note: This example is illustrative only. Past performance is not indicative of future results.
Frequently Asked Questions
How is fractional ownership legally structured?
Our fractional ownership is typically structured through a Special Purpose Vehicle (SPV) or LLC that holds the property title.
Investors own shares in this entity proportionate to their investment. This structure provides legal protection, clear governance rules, transparent distribution of income, and defined procedures for property management decisions and eventual exit. All ownership rights and responsibilities are documented in the operating agreement which each investor receives.
How liquid is this investment?
While real estate is traditionally less liquid than some other investments, our platform includes a secondary market where investors can list their shares for sale to other investors.
This provides a path to liquidity before the property exit. However, investors should be prepared for a hold period of 3-7 years for optimal returns. The secondary market liquidity depends on investor demand and may involve selling at a discount to intrinsic value if an early exit is required during unfavorable market conditions.
What are the minimum investment requirements?
Minimum investments typically start at $5,000, allowing investors to gain exposure to institutional-grade real estate at a fraction of the full property value.
This low entry point enables portfolio diversification across multiple properties with relatively modest capital. Individual property offerings may have different minimums based on the total value and investment structure. Investors can start with a single property and gradually build a diversified real estate portfolio over time.
Who handles property management and maintenance?
Professional property management companies are engaged to handle all aspects of property operations.
These experts manage tenant relationships, rent collection, maintenance, and operational issues. This creates a truly passive investment experience for fractional owners. The management fees are factored into the property financial projections and typically range from 4-8% of gross rental income, depending on property type and complexity. Regular reports are provided to all investors detailing property performance, occupancy, and maintenance activities.