Frequently Asked Questions | Fractional Help Center

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Frequently Asked Questions

Frequently Asked Questions

Answers to common questions

About Fractional

What services does Fractional provide?

Who is Fractional for?

How much will I need to interact with other co-owners?

What happens if co-owners have differing opinions for repairs and remodels?

What is covered in the Fractional co-ownership agreement?

What kind of decisions can I collaborate on?

Fractional Vs. Other Options

Fractional vs. Organizing your own group

Fractional vs. REITs and Crowdfunding Platforms

Group Formation

Can I use Fractional to invest with my own group of family and friends?

Do I have to come to Fractional with a group formed?

Is there a maximum group size?

Will I know my other co-owners?

Mortgage Financing

Can I get a mortgage for purchasing a fraction of a property?

Can I get my own conventional loan if I co-purchase with family and friends?

Will I be a personal guarantor for the loan of the entire property?

How do Fractional rates compare to other rental or commercial lenders?

Offer, Due Diligence, Negotiation Process

Are properties on the Fractional Marketplace vetted?

Does Fractional negotiate with the seller to address issues presented in the inspection report?

Are Fractional offers guaranteed?

What inspections are conducted during the due diligence process?

Does Fractional’s monthly service fee include property management?

How does Fractional’s fee compare to other platforms?

Property Types and Markets

Can I use Fractional for a property that is not on the Marketplace?

What types of real estate does Fractional support?

Where does Fractional operate?

Do I need to be an accredited investor to use Fractional?

How do I qualify for Fractional?

Is Fractional available to international investors?

What is the minimum investment amount?

How much will I be paid?

How will rental income be distributed to investors?

When will I be paid?

Risks and Liability

What happens to my investment if Fractional shuts down?

What types of insurance are acquired for the property?

Will I be liable for other investors defaulting?

How are my shares priced when I sell?

How can I sell my shares of the property?

Do Fractional investments have greater tax benefits compared to REITs?

How do taxes work for Fractional investments?

Do Fractional investments qualify for the 1031 Exchange?

How is title held?