Introduction

This document outlines the key requirements, phases, and collaborative responsibilities involved in launching a successful fractional ownership project. Developing and installing a new fractional project is a comprehensive undertaking, typically requiring 60-90 days or more, contingent upon factors such as country, state/local regulations, legal complexities, website design, and the overall size and scope of the project. Our structured approach ensures all critical aspects are addressed, enabling developers to make informed decisions and navigate the complexities of the fractional marketplace.

Our Commitment: Once you, the Developer, have committed to retaining my services, we will collaboratively develop a detailed project timeline, assigning responsibility for each phase and arranging tasks in a logical sequence.

Proposed Phased Approach for Fractional Project Development

Phase 1: Initial Consultation, Feasibility & Regulatory Due Diligence
(Estimated Days 1-21)

This foundational phase focuses on understanding your vision, assessing market viability, and ensuring regulatory compliance before significant investment.

1. Initial Project Consultation & Market Overview
   Task: Comprehensive discussion of the current fractional marketplace, project goals, and potential challenges, allowing the Developer to make informed strategic decisions.
   Responsibility: Consultant (Lead), Developer
   Notes: Reconfirmation of Developer’s commitment to retain services is a prerequisite for proceeding to detailed planning.
2. Regulatory & Legal Feasibility Study
   • Task: Verify that fractional ownership is permissible at the proposed project location by checking all relevant local, city, county, and state agency regulations.
     Responsibility: Consultant (Lead Research), Recommended Local Attorney (Verification & Counsel)
   • Task: Examine local zoning ordinances for any restrictions on “lengths of stay.”
     Responsibility: Consultant (Lead Research), Recommended Local Attorney (Verification & Counsel)
   • Task: Conduct a thorough title search to ensure the subject property’s chain of title contains no references to “timeshare” that could impede the project.
     Responsibility: Recommended Local Attorney, Title Company
   • Task: Analyze applicable State timeshare regulations, as these universally govern fractional projects, and determine specific compliance requirements.
     Responsibility: Consultant (Research), Recommended Local Attorney (State-Specific Guidance)
3. Attorney Selection & Engagement
   Task: Research and identify suitable local attorneys with expertise in real estate and fractional ownership.
   Responsibility: Consultant (Recommend), Developer (Final Selection & Engagement)
4. Preliminary Financial Viability Assessment
   Task: Initial review of project financing needs, including strategies for projects with existing developer debt.
   Responsibility: Developer, Consultant (Advisory)
   Notes: This assessment helps determine overall financial feasibility before extensive structural planning.

Phase 2: Project Definition, Legal Structuring & Financial Planning
(Estimated Days 22-60)

With foundational feasibility confirmed, this phase focuses on defining the core components of the fractional offering and establishing the legal and financial architecture.

1. Use Plan Development: Consultant (Lead), Developer (Approval)
2. Share Structure & Sizing: Consultant (Guidance), Developer (Approval)
3. Pricing Strategy & Valuation: Consultant (Strategy, Execute Method), Developer (Review & Approval)
4. Legal Document Development: Attorney (Drafting), Consultant & Developer (Review)
5. Insurance Planning: Consultant (Research Options), Developer (Secure Policy)

Phase 3: Operational & Enhanced Financial Framework
(Estimated Days 45-75, overlaps with Phase 2)

1. Management & Maintenance Structure: Define management scope, housekeeping, and fee structures.
2. Financing Solutions (If Required): Consultant (Introduce Contacts), Developer (Secure Financing).
3. Exchange Program Integration: Consultant (Research & Recommend), Developer (Decision).

Phase 4: Marketing & Sales Strategy & Preparation
(Estimated Days 60-90+, overlaps with Phase 3)

1. Marketing Foundation: Website Development with Consultant input.
2. Marketing Collateral: Brochures, presentations, digital assets.
3. Market Research & Targeting: Define buyer personas, demographics, budgets.
4. Marketing & Sales Channel Strategy: Consultant (Strategy), Developer (Approval & Funding).
5. Broker & Sales Team Infrastructure: Consultant (Advise), Developer (Selection & Engagement).

Phase 5: Sales Launch & Ongoing Execution

1. Sales Team Development & Training: Consultant (Lead Training), Developer/Broker (Hiring).
2. Sales Execution Strategy: Consultant (Develop Presentation), Sales Team (Implement).
3. Launch & Marketing Execution Plan: Consultant, Developer, Marketing Team, Sales Team.

Summary of Key Responsibilities

• Consultant (Sherman D. Potvin): Strategic guidance, training, quality control, research, recommendations.
• Developer (Client): Funding, final decisions, project information, third-party engagement.
• Local Attorney: Drafts all legal documents, compliance, title searches.
• Management Company: Day-to-day operations, owner services, maintenance.
• Sales Team/Broker of Record: Sales activities, client interactions, MLS listings.

We are confident that this structured approach will provide a clear roadmap for the successful development and launch of your fractional project.

Thank you,
Sherman D. Potvin
802-578-8631

Fractional Project Development Framework
By Sherman D. Potvin