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How to use Fractional
How to use Fractional
Carlos Trevino avatar
Written by Carlos Trevino
Updated over a week ago

What is Fractionalโ“

Fractional is a one-stop shop for co-ownership between friends, family, and like-minded communities. Build your network, collaborate on deals, and manage real estate on fractional with built-in tools for discovery, back-office processes, and management.

Hereโ€™s a quick run down ๐Ÿƒ๐Ÿปโ€โ™€๏ธ

Details on each step ๐Ÿ”

1. ๐Ÿ’Œ Find co-investors

Invite your friends or find co-investors on our platform

  • Create and join private communities with your friends based on more specific investment goals. You can invite anyone to join a community via their username or email.

  • Discover and join public communities that align with your investment goals.

๐Ÿ’ก You can easily create events for a community and discuss with other members using community channels!
  • [Private Groups ONLY]: Get a pre-approval letter from Fractional if youโ€™re working with your own real estate agent. Schedule time with the Fractional team to discuss your project and begin the pre-approval process.

    • All members of your private group will need to verify their identity (profile page), connect their bank account (preferences page), and provide financial statements in order to get pre-approved.

      • Verify Identity

      • Connect bank account

2. โœ๐Ÿผ Discover or create investment proposals

Discover properties you want to invest in on the Proposals tab

  • You can see all proposals from communities you are a part of. Click on proposal cards to find investment details sourced by Fractional and the proposal creator. The minimum investment amount is $5,000.

  • View sample proposals to help you find communities with similar deals. Sample proposals are NOT live investments.

  • Join proposals created for your investment communities. Once you join a proposal, you will be able to see other details such as funding remaining and other co-investors.

๐Ÿ’ก You must verify your identity before you can join or create any investment proposal.

Create proposals for properties you are interested for your community and network

  • You can search for properties on our platform and Fractional will source the most useful property details to get your proposal started. You can come back to edit proposals details even once you have created the proposal.

  • Once you create a proposal, all members of the community will be notified and can choose to join or decline the proposal. You can also share the proposal with your Fractional network.

๐Ÿ’ก Proposing or joining an investment does NOT guarantee an investment with the property. Given the nature of the fast moving market we cannot guarantee the proposal will result in investment.

3. ๐Ÿ’ธ Reach full funding for your proposals

Gather enough members to join and help fund the proposal

  • Enough members must join the proposal and commit a deposit for funding their portion of the total initial property cost in order to make an offer for the property.

  • Invite others to join the proposal via their username or email and easily track funding progress of your proposal.

Engage the community by hosting a discussion / webinar

  • Easily create an event in the proposal by adding a zoom link and event date.

๐Ÿ’ก Check out our Understanding Proposals Guide to learn more about proposals

4. ๐Ÿค Agree on co-ownership terms

  • Fractional will work with your group on creating a co-ownership legal agreement between you and your co-investors.

  • Fractionalโ€™s team of real estate and SEC lawyers have created customizable co-ownership legal agreements to help protect and align all property co-owners.

5. ๐Ÿ  Begin Offer and Closing Process

Fractional will work with your partnership on the offer and closing process, once initial funds are received from all members.

๐Ÿ’ก We will help you make an offer, work through the due diligence and negotiation process, and close the property. Please note that your exact investment amount cannot be guaranteed.

6. ๐Ÿ“ฃ Co-own and manage your investment

Earn and build wealth with your Fractional investment

  • Easily manage your investment and receive rental cash-flow directly on your owner dashboard. Track your investments and the view latest financial data and information about your properties via our financial dashboards.

  • Collaborate with co-owners by proposing new changes and voting to align as a group. Fractional will manage all administrative duties.

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