fractional home

Its Smart To Buy Fractional Home

Golf - If you like to golf, careabout golf or entertain peoplewho like to golf you can’t beatthis area. With four Pete Dyedesigned courses within a 15minute drive and talk of a 5th

being added down the beachthere is no shortage of greatgolf. In addition Wisconsinsonly Jack Nicklaus signaturecourse, The Bull, is only 10minutes away.

Privacy - The property is astunning piece of land set onfive private acres with 276feet of Lake Michiganfrontage. The property diesinto to Kohler-Andrae Statepark which means that yournext door neighbor is acres ofundeveloped land for hikingand enjoying natures bestviews.

Five Star Dining & Spa - Theproperty is minutes away fromthe Kohler resort, theMidwest’s only Triple AAA FiveDiamond Resort. Greatrestaurants, amazing spaexperiences and a never –ending list of events going onprovide entertainment yearround.

Proximity to home: No crazyairfares, no long termplanning. Just hop in your carand vacation and relaxation isa very short drive away.Gather your children,extended family or closefriends. The design of thehome lends itself to amazingget together’s while stillproviding privacy for each andevery guest.

Why Buy a Fraction in this Home

Why Buy a Fraction in this Home

Year Round Activities & Entertainment

Winter: Head up to enjoy the beautifulwinter scenery, to go for a swim in theindoor pool or a dip in the hot tub. VisitKohler to go sledding, have a cup of hotchocolate at the local chocolatier, or godown-hill skiing at one of the local resorts.

Summer: Just bum aroundthe beach or go boating outof the beautiful SheboyganMarina. You can store yourown boat there or charterone to take you out..

Fall is an amazing time to go hunting at River Wildlife orany of the many local options. It is also a great time tohike any of the many state parks located near your homeand just enjoy the beautiful foliage. If biking is your sportthis is a spectacular time to take advantage of the manybike trails located near and around the area.

Spring: There is nothing likewatching the winter melt awayfrom Lake Michigan. Use thistime to hike and utilize the spaor other local amenities to relaxand unwind.

Fractional Calender - 2015

Sun Mon Tue Wed Thu Fri Sat

1

NEW

YEARS

DAY

2 A3

4 5 6 7 8

9 B10

11 12 13 14 15

16 C17

18 19

MLK DAY

20 21 22

23 D24

25 26 27 28 29

30 E31

January


1 2 3 4 5

6 F7

8 9 10 11 12

13 A14

VALENTIN

ES DAY

15 16

PRESIDEN

TS DAY

17 18 19

20 B21

22 23 24 25 26

27 C28

February


1 2 3 4 5

6 D7

8 9 10 11 12

13 E14

15 16 17 18 19

20 F21

22 23 24 25 26

27 A28

29 30 31

March


1 2

3 B4

5

EASTER

SUNDAY

6 7 8 9

10 C11

12 13 14 15 16

17 D18

19 20 21 22 23 24 E25

26 27 28 29 30


1 F2

3 4 5 6 7

8 A9

10

MOHTERS

DAY

11 12 13 14

15 B16

17 18 19 20 21

22 C23

24 25

MEMORIA

L DAY

26 27 28

29 D30

31


1 2 3 4

5 E6

7 8 9 10 11

12 F13

14 15 16 17 18

19 A20

21

FATHERS

DAY

22 23 24 25

26 B27

28 29 30

April May June



1 2

3 C4

INDEPEN

DENCE

DAY

5 6 7 8 9

10 D11

12 13 14 15 16

17 E18

19 20 21 22 23

24 F25

26 27 28 29 30

31 A


1

2 3 4 5 6

7B8

9 10

PGA

CHAMPION

SHIP

11

PGA

CHAMPION

SHIP

12

PGA

CHAMPION

SHIP

13

PGA

CHAMPION

SHIP

14 C PGA

CHAMPION

SHIP

15

PGA

CHAMPION

SHIP

16

PGA

CHAMPION

SHIP

17 18 19 20

21 D22

23 24 25 26 27

28 E29

30 31


1 2 3

4 F5

6 7

LABOR

DAY

8 9 10

11 A12

13 14 15 16 17

18 B19

20 21 22 23 24

25 C26

27 28 29 30

JULY August September



1

2 D3

4 5 6 7 8

9 E10

11 12

COLUBM

US DAY

13 14 15

16 F17

18 19 20 21 22

23 A24

25 26 27 28 29

30 B31

HALLOW

EEN


1 2 3 4 5

6 C7

8 9 10 11

VETERANS

DAY

12

13 D14

15 16 17 18 19

20 E21

22 23 24 25 26

THANKSGI

VING27 F

28

29 30


1 2 3

4 A5

6 7 8 9 10

11 B12

13 14 15 16 17

18 C19

20 21 22 23 24

CHRISTMA

S EVE25 DCHRISTMA

S DAY

26

27 28 29 30 31

NEW

YEARS EVE

October November December




1 NEW

YEARS

DAY

E

2

3 4 5 6 7

8 F9

10 11 12 13 14

15 A16

17 18

MARTIN

LUTHER

KING DAY

19 20 21

22 B23

24 25 26 27 28

29 C30

31


1 2 3 4

5 D6

7 8 9 10 11

12 E13

14

VALENTINE

S DAY

15

PRESIDENT

S DAY

16 17 18

19 F20

21 22 23 24 25

26 A27

28 29


1 2 3

4 B5

6 7 8 9 10

11 C12

13 14 15 16 17

18 D19

20 21 22 23 24

25 E26

27

EASTER

SUNDAY

28 29 30 31

January February March


1 F2

3 4 5 6 7

8 A9

10 11 12 13 14

15 B16

17 18 19 20 21

22 C23

24 25 26 27 28

29 D30


1 2 3 4 5

6 E7

8

MOTHERS

DAY

9 10 11 12

13 F14

15 16 17 18 19

20 A21

22 23 24 25 26

27 B28

29 30

MEMORIAL

DAY

31


1 2

3 C4

5 6 7 8 9

10 D11

12 13 14 15 16

17 E18

19

FATHERS

DAY

20 21 22 23

24 F25

26 27 28 29 30

April May June



1 A2

3 4TH OF

JULY

5 6 7

8 B9

10 11 12 13 14

15 C16

17 18 19 20 21

22 D23

24 25 26 27 28

29 E30

31


1 2 3 4

5 F6

7 8 9 10 11

12 A13

14 15 16 17 18

19 B20

21 22 23 24 25

26 C27

28 29 30 31


1

2 D3

4 5 LABOR

DAY

6 7 8

9 E10

11 12 13 14 15

16 F17

18 19 20 21 22

23 A24

25 26 27 28 29

30 B

July August September



1

2 3 4 5 6

7 C8

9 10

COLUMBUS

DAY

11 12 13

14 D15

16 17 18 19 20

21E22

23 24 25 26 27

28 F29

30 31

HALLOWEE

N


1 2 3

4 A5

6 7 8 9 10

11 B12

13 14 15 16 17

18 C19

20 21 22 23 24

THANKSGIV

ING25 D

26

27 28 29 30


1

2 E3

4 5 6 7 8

9 F10

11 12 13 14 15

16 A17

18 19 20 21 22

23 B24

25

CHRISTMA

S

26 27 28 29

30 C31 NEW

YEARS EVE

October November December


Benefits Of Fractional Ownership

Owning a luxury home at a fraction of the cost. Buying a luxury second home entails many expenses. Theactual cost of the home is only the beginning. Property taxes, maintenance and upkeep not to mentionthe time and energy required to keep things functioning and running smoothly.

Factoring the realistic amount of time that will be spent at the second home. People buy second homesfor many reasons, to gather family, to relax, to entertain, to escape but unless you have visions of retiringto your second home chances are unlikely that you will spend more than 1-2 months collectively in thehome throughout the year. Why pay for 100% of the ownership and upkeep when this is the realisticoutcome?

Management Hassles- Through the model of the fractional ownership the hassle of worrying about yoursecond property is removed. Each owner pays a set portion of costs to cover taxes and homemaintenance. The maintenance is then outsourced to a management company. Worrying about cleaningwindows, pool maintenance or fixing the leaking toilet are no longer your concerns. All the homeownersneed do is step into their home and relax and enjoy. The details are covered by the managementcompany… you show up to a clean home and leave knowing that someone else will get it ready for thenext visitors. It makes owning a second home virtually headache free.

It is a saleable asset. You are investing in a beautiful home where you can create great family memories,entertain clients and friends and relax. When you decide this is no longer a good fit for your lifestyle orfamily you can sell your fraction. Being a luxury fractional ownership you are opening the pool ofinterested and qualified buyers. There is a much larger pool of buyers who can buy in at the fractionalprice than at the price of the property in its entirety.

Article And Publications Outlining Fractional Ownership

The Reasons to Buy a Private Residence Club or Luxury Fractional - http://www.sherpareport.com/prc/reasons-prc.html

The dollars involved is usually a factor. The most straightforward way is to equate the dollars you're spending with the amount of time thatyou'll spend in your property. Most people with second homes find they only spend 3 to 6 weeks a year at their second home. So bybuying a luxury fractional you can effectively only pay for the amount of time that you're going to actually use your property.In an independent survey carried out by research firm Ragatz Associates in 2005, they confirmed that this fractional cost compared to thefull cost of whole ownership, was the most important factor motivating high income households to buy private residence clubs and luxuryfractional property.

• Lots of Relaxation and No Maintenance• Full 5 Star Service• Luxury Furnishings & On Site Amenities

We continue to see the number of private residence clubs and luxury fractionals increase each year - spurred on by the clear benefits toownership. We've also seen examples of these private residences and clubs increase in value just as other real estate increases in valueover time, although in the current economy they have also fallen in value along with the general real estate marketAlso Visit -http://www.sherpareport.com/single-family-homes/http://money.cnn.com/2006/06/23/real_estate/fractionals_are_coming/

http://www.sherpareport.com/prc/reasons-prc.html

http://www.sherpareport.com/single-family-homes/

http://money.cnn.com/2006/06/23/real_estate/fractionals_are_coming/

Words Of Actual Owners

"We paid $400,000 for a fractional share of a $3 million lakefront home that we can use for six weeks out of the year, which is as long as we would use it anyway. It has a private beach and a boat dock, and you are sitting on the lake, all for $400,000. With all this," he enthuses, "why would you buy a complete home?" said Art Savage majority owner and CEO of the Sacramento River Cats as

reported in Worth Magazine.

"It was very affordable, and the whole resort has the lifestyle amenities I'm interested in, I don't see a downside yet at all.'' said Tim Hoagland, of Los Gatos, CA as reported in The Mercury News.

"I can't justify owning a place all year if I'm not going to spend much time there, " said Dennis Howe of Cornelius, N.C. as reported by Vacation Homes Magazine.

http://www.worth.com/Editorial/Money-Meaning/Passion-Investments/Property/Features-Vacation-Variations-6.asp

http://origin.mercurynews.com/mld/mercurynews/classifieds/real_estate/16306112.htm

http://www.vacationhomesmag.com/Articles/Real-Estate/Destination-Clubs/Clubhouse-A-Slice-of-Mountain-Life.asp

Finance

6 Equal Shares - Each Share is valued at $625,000Where does this price come from?

• This comes from a common factor used when valuing fractional ownership shares, a 1.5 ratio.• 625,000 x 6 = 3,750,000 This is the equivalent of 1.5 fair market value of the home.• This is assuming the finished value of the new construction along with the value of the land would be equivalent to $2,500,000.• In this situation we would be selling 5 of the shares and retain 1/6 ownership.• The 5 shares sold would raise 3,125,000.• 1,250,000 would go to buying out sole ownership. The remaining $1,875,000 would go into the newly formed LLC to finish

construction, furnish the home and landscape. Any remaining funds would go into the reserves that will be managed by an outsidemanagement company hired by the association. A very simple breakdown of these funds is below:

• Cost to finish construction: $1,200,000• Cost to manage construction: $36,000 (Based on 3% of construction costs)• Cost to Furnish Home: $ $250,000 (Based on 10% of the home value. Interior Design Services and furnishings would be provided at

cost which could significantly lower this number. )• Cost to landscape Home & property: $250,000 (Based on 10% of the value of the home. In reality given the natural setting already

provided this number should be significantly lower, however we’d like to be realistic with all budgets)• Legal/Real Estate/Closing Costs: $75,000.• Total Budgeted Cost to finish: $1,811,000 leaving 64,00 or more in reserves assuming the project is managed efficiently.

What costs can each homeowner expect to incur?

Each homeowner would be responsible for the purchase price of their share at $625,000 each. In addition to that there would be monthly assessments to cover the taxes, management and upkeep. An early estimate of this would be approximately $1,000-$1,200.

This estimate is based on:

Yearly taxes= 36,000/12= 3,000 /6= 500 per ownerManagement & Upkeep costs= $3,000-$3500 per month

We could also offer A la carte services and options such as daily housekeeping during a stay, private chef services, driver services, etc. These costs could be billed based on a homeowner’s needs and requests and managed through the property management company.

Included in this estimate:4 weeks of housekeeping @ 350 per week= 1400 per monthManagement costs per month= $500Pool maintenance= $100-$150 per month Pest Control= $50 per monthLandscape & Exterior Maintenance= $300 per monthGeneral Home Repair (Light bulbs, loose cabinets, leaky sinks, etc) = $150-$200 per monthCable= $300 per monthElectricity= $250 per monthPropane costs= $350 per month

fractional home

Real Estate

fractional home

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