By Sherman D. Potvin FractionalBusiness
Most developers feel trapped by a binary choice: Sell the whole property, or walk away
because the numbers don’t work.
But for the last 25 years, I’ve been proving there is a third option.
Since 1998, I’ve helped write the playbook on fractional ownership, working with iconic
brands like Four Seasons and Ritz-Carlton, as well as private homeowners looking to
maximize their exits.
I’m launching this newsletter to give you the blueprint on how to make fractional
ownership work—and more importantly, when to avoid it.
Stop Before You Start: Is Your Project Actually “Fractional-Ready”?
Fractional ownership is a “force multiplier” for profit, but only if the foundation is right.
Before you draft a marketing plan or hire a sales team, you must pass these three tests:
1. The “Stay-ability” Factor
Is your property a ‘habitual destination”? Fractional works best in places people return to
year after year (e.g., Aspen, Cabo, Florida).
● The Trap: If your property is in a “bucket list” location where people visit once and
never return, fractionalization will be a hard sell. Buyers want a “home base” in a
place they already love.
2. The Floorplan Test
Does the asset “share” well? You can’t just split a deed and call it a day.
● Equal Luxury: If you have one massive Master Suite and three tiny guest rooms,
you may have sale issues.
● Storage: If you should account for “lock-off” storage for owners’ personal gear
(golf clubs, skis), you may need to rethink the garage or spare room layout.
3. The 1.4x Rule
Does the math actually pencil out?
The gross sales revenue of a fractional project should typically be 1.4x to 2.2x the value
of the whole-ownership price.
● The Reality Check: If the market won’t support a price point that covers the
overhead of preparing for fractional ownership while still providing a “win” for the
buyer, the project isn’t viable.
The Bottom Line
Fractional ownership isn’t a “Hail Mary” for a bad property. It is a high-performance
strategy for the right property.
Sometimes, the most valuable advice I give a client is: “Don’t do this project in fractions.”
Are you wondering if your current Home or Project is a fit?
I’ve built a “viability audit” to help you find out. Let’s look at the numbers together before
you commit your capital.
Should you wish to become a Fractional Consultant I have a wonderful 30 day program
for you on my website below.
Sherman D. Potvin
Fractional Consultant | Author of “Fractionalize to Maximize”