Harris Fractional Consulting Group has studied the critical differences between those who succeed and those who fail in their efforts to fractionalize and sell their luxury vacation property. While there are a large number of successes, interested sellers are best served by understanding their options as well as the causes behind others’ failures. Based on our fractional real estate industry knowledge and insight, we have identified a host of definable mistakes, most of which are clearly avoidable. We have organized our findings into three broad areas, with a few specific examples in each:

1. The decision to fractionalize was not properly informed by the important analysis, facts, and market realities:

• The property itself did not meet the criteria for a great fractional home.
  
• The seller failed to complete the legal due diligence.
  
• The seller’s profit expectations were not properly calculated and thus were unrealistic.

2. The fractional offering itself was not clear and compelling to buyers:

• The fractional pricing was flawed and did not meet the industry guidelines based on the property’s fair market value.
  
• Sufficient buyer financing options were not available.
  
• There were contingencies on the fractional sale, which sent up “red flags” to buyers and their agents.

3. The sales and marketing process was ineffective:

• Viable prospective buyers could not get their important questions answered by either the seller’s or their own agent.
  
• The methods of identifying and attracting prospective buyers were insufficient or flawed.
  
• The necessary set of marketing materials was either nonexistent or of poor quality.

“Randall is one of the most thorough and detailed-oriented people I have ever met. The key to Randall’s success is that he has done it the right way, and he put together a top-notch program to sell fractionals and help others do the same. I highly recommend that anyone considering getting involved in the exciting field of fractional ownership consult with Randall. He is one of the most genuine, ethical, and loyal people you will ever meet, and you will not be disappointed.”

— Nathan Smith, RA
Century 21 All Islands
Princeville, Hawaii

“As Randall’s CPA for over twenty years, I have witnessed his natural ability and his keenness to thoroughly research, analyze, and plan projects. These personal and professional qualities have been at the core of his success in both his management consulting career and, more recently, in the area of fractional real estate development. In addition, his organizational skills, extraordinary attention to detail, and talent for planning and marketing a project will be invaluable to anyone considering entering the field of fractional development or selling their luxury vacation property as a fractional offering.”

— Stephen R Anzalone, CPA