Here is a sneak preview of a new program that bundles a suite of services to provide condominium and condo hotel developers and lenders a way out of what is now an unfortunate situation: no sales.

The suite of services being launched this week will likely be named the Fractional Conversion Program.  Condo hotel buyers have become few and far between due to a myriad of issues with owner class action suits against developers, some with regards to alleged SEC violations.  Whole ownership buyers are not raising their hands either.  With the economy still in a nose dive, there are not a lot of families standing in line for their own second home. 

Pierce Group, LLC, and Vacation Finance are teaming up to provide a suite of services tailored exactly for this situation.  We have thought of everything. We even have a Court-Appointed Receiver waiting in the wings if need-be.  We also realize that these services need to be affordable.  If conversion is too expensive it’s pointless.

Look for a program that includes a comprehensive feasibility study, financial model, recommended capital structure, commercial financing, consumer financing and sales and marketing management services.

Many are realizing that a more practical solution is to buy fractionally; more specifically buy into a Private Residence Club (PRC).  Yes, purchasing a deeded piece of real estate on valuable resort property is a good idea, but doing it fractionally is an even better idea.  Furthermore, many baby boomers and Gen Xers now realize it and sales continue to increase.  Fractional ownership’s up front and annual costs are nominal compared to the alternative option of a whole ownership million dollar purchase in High-Brow, Florida.  Moreover, owners can use their PRC interest when they choose and as much as they choose.  Throw in all of the high-end services and amenities and fractional ownership becomes a very attractive proposition.

So what to do with a condo development that is producing nothing but headaches for its worried sales people?  Convert it to fractional ownership.

Please keep an eye on this blog and SecondHomes411 for more info. 

Eric Pierce

FORESIGHT COSTS LESS THAN HINDSIGHT^SM