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A. Co-owner matching:
Fractional is for everyone - from novice investors to real estate gurus and everyone in between. Fractional is designed to make real estate investing intuitive, inclusive, and collaborative.
As little or as much as you'd like to. Some investors have a hands-on management style, while others take a more relaxed approach.
Fractional appraises the increase in home value and rent for optional and expensive repairs and remodels. Co-owners who choose to fund repairs and remodels will receive more upside based on the appraisals.
Fractional saves you money: on average, we save investors 25% of their normal costs. We also save you time: our investors automatically access the best real estate agents, attorneys, and property management companies. Lastly, Fractional guides you through the entire investment and ownership process.
Fractional gives you all the benefits of direct ownership. At Fractional, investors have ultimate control and can sell on their own timeline. We provide higher returns through significant tax benefits and no annual fees. Private REITs and crowdfunding platforms lock you in for long hold periods. You can lose 40% or more of your annual rental income due to annual fees and taxes on other platforms. Lastly, dividends distributed from REITs and crowdfunding platforms are subject to ordinary income tax and cannot be written off with expenses and standard rental property depreciation deductions
Absolutely! If you invest with a pre-formed group, we will provide a 25% discount on all Fractional fees.
No! We will use data collected from the onboarding process to match you or your group with other like-minded investors
Yes! Fractional’s lending partners can provide mortgages for LLC-owned rental properties. Interest rates and required down payment amounts will vary based on the location, property type, and loan type.
You’re welcome to bring your own conventional lender. However, note that all co-borrowers on the mortgage are wholly responsible for the entire debt. For example, even though you only own 25% of the property, you are still responsible for 100% of the debt.
Like any traditional or corporate buyer on the market, Fractional offers are not guaranteed. Don’t fret, our modeling strategies create competitive, appealing, and fair offers. We haven’t had issues finding our customers the perfect investment property!
Our users and real estate partners submit properties onto the Fractional Marketplace. Then, we leverage multiple data providers to present financial estimations and risks (hazard, flood, earthquake zones, vacancy rates, etc.) on each property.
Fractional’s service fee applies towards the banking, ledger, and distribution services provided. It does not include property management.
Yes! You can submit properties to be added to the Marketplace through https://www.fractional.app/marketplace. If the property is in an area we do not currently support, you will need to choose a realtor and property management company to invest in the property.
Fractional currently supports residential and multi-family commercial real estate, from a single-family, to a duplex, up through a multi-hundred unit apartment building.
We consider your income, assets, credit score, and debt in our qualification process. We only perform a soft credit check, which will not impact your credit score.
Your rental income amount is based on your percentage ownership of the property. For example, if you own 10% of the property, you will receive 10% of rental income less expenses.
Rental income distributions are directly deposited via ACH transfers to your bank account.
Your investment will not be impacted as you are the true owner of the property. Co-owners can choose to continue managing the property together, or sell the property to unwind the investment partnership.
Standard property insurance acquired will cover the most important liability-related aspects and provide coverage for damages caused by fire, flooding, theft, weather, and other risks.
Absolutely. Fractional’s direct ownership model enables all co-owners to defer their taxable income (through expenses and standard rental property depreciation deductions) and defer their capital gains taxes (through the 1031 Exchange).
Yes! This allows you to defer paying capital gains taxes when you sell an investment property if you reinvest the proceeds from the sale in a property of equal or greater value within a specific time period.
An LLC in the state of the property is set up to hold title to the property. Co-owners are members of the LLC, with Fractional as an administrator.