Joining Investment Proposals

Table of contents

📸 Video Walk-Through:

 

🙋🏽‍♀️ What’s a proposal?


  • Think of a proposal as a “pitch” for others to join in on an investment. When users find attractive investments, they can create an investment proposal for others to join.
  • You will be joining proposals created by other investors in your Fractional network, and can create proposals for your own opportunities. All investment opportunities on Fractional are proposals added by our members.
 

👀 Finding proposals


  • Navigate to Proposals on Home to see all available investment proposals to join. You will be able to join any proposal shared by investors in your network and any proposal shared in communities you are a part of.
  • Click into any proposal card to view details and engage with the proposal discussion.
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🪢 Proposal stages and when to join


There are 4 proposal stages, and you can officially join investment proposals during the first two stages:
💡 Interest
💸 Funding
🤝 Contract
🏡 Closed
 
Details on the entire process can be found here: offer and acquisition process.
 
💡
Interest This stage is to gather initial interest. Interested members will join a conference call to: 1) learn details about the proposal (location, financial analysis, investment strategy, etc) 2) discuss the terms of an operating agreement (rights and responsibilities of each member, how decisions are made, etc) The proposal will officially launch once the call has been completed.
 
🪢  Members can join the proposal with their anticipated investment amount. Once you show interest, you will be notified of updates, and given priority during the Funding stage of the proposal.
Showing interest does not guarantee a spot in the proposal.
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💸
Funding The proposal begins its funding state to finalize the purchase group. Fractional works with the proposal creator to draft and send the purchase and sale agreement at the end of the funding stage. Members who want to secure a spot must send in an earnest money deposit that is 10% of their committed investment (ie: $500 deposit for a $5,000 investment).
 
🪢 You can still join the proposal, even if you miss the interest stage - the initial call will usually be recorded. You will be required to put down a deposit to secure your spot. An exact investment amount cannot be guaranteed.
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🤝
Under contract Once the offer is accepted by the seller, Fractional will set up the group’s LLC and business banking. Members must pay the remaining investment amount and sign the partnership operating agreement three business days before the closing date.
 
🏡
Closed And that’s it! Once all payments and documents have been received and signed, the group and LLC will close on the property and become the official owners of the property on the closing date.