A. Co-owner matching:
Fractional matches you with other compatible investors to co-purchase a property.
B. Entity formation:
Fractional sets up an LLC in the state of the property. Fractional handles filing of paperwork, obtaining an EIN, and issuing K-1s.
C. LLC Operating Agreement:
Fractional’s governance model aligns all co-owners on handling scenarios such as ownership transfers, voting procedures, repairs, and expenses.
D. Financing:
Fractional’s lending partners provide short-term and long-term loans for LLC-owned property.
E. Banking:
Fractional creates a bank account for the LLC and supports deposits, rental distributions, expense withdrawals, and a reserve for the property.
F. Property closing:
A Fractional agent partner will make an offer, work through the due diligence process, and successfully close the property.