How to Evaluate a Fractional Real Estate Deal Before You Invest
Investing in fractional real estate is gaining momentum as an innovative and accessible way to own property. Instead of purchasing an entire property, investors can buy a fraction of it—allowing for lower entry costs, diversified portfolios, and potential passive income. However, not all fractional real estate deals are created equal. To make informed decisions and avoid costly mistakes, it's essential to know how to evaluate a fractional real estate deal before investing. In this blog, we’ll break down the key factors you should assess to determine whether a deal is worth your money. Understand the Ownership Structure Before diving into the financials, the first step is understanding the fractional real estate ownership model. Is it a co-ownership structure, an LLC-based model, or a tokenized digital share? Each has its own legal and operational implications. Co-ownership : Multiple individuals directly own a portion of the title. LLC structure : Ownership is held th...