1. What is fractional ownership and how does it work?

Here are the ‘nuts and bolts’ about our offering. Fractional ownership is similar to any other real estate purchase except that you are only purchasing a fraction of a specific condo suite instead of the entire condominium. Under this concept, you receive a deed to your fractional share of a specific resort suite, which is in turn insured by a title insurance company. Ownership of this fractional interest gives you the right to use the resort suite for a predetermined number of designated weeks throughout the year. For example, if you purchase a tenth share, you will have the exclusive right to five weeks of usage throughout the year. A one-fifth fractional share will net you ten weeks of usage.

Luxury fractionals differ greatly from old-style timeshares. In traditional timeshare developments, there are only two types of purchases: Right-to-Use or Fee-Simple. Most timeshare resorts are Right-to-Use, meaning the owner has the right to use it for a period of time and then it reverts back to the developer. It is similar to a vacation club - you never actually own the real estate. Fee-Simple, however, represents ownership, i.e., the owner(s) receive a general warranty deed with their purchase. In addition, there are three major opportunities in fractional ownership that are not possible with traditional timeshare:
Value: A fractional has the capacity to appreciate or depreciate based on market swings. History to date has shown increases of 6-7%. Properties are generally managed by a property management company or hotel group, which eliminates many headaches of second-home ownership.
Financing: Fractionals can be mortgaged over a period of 30 years if necessary, at an interest rate similar to that for a primary residence.
Taxes: Fractional ownership has all of the tax advantages of second-home ownership, e.g., interest on the mortgage plus property taxes should be tax deductible, along with certain other expenses. Of course, we advise potential owners to check with a C.P.A. or tax attorney for the positioning of this asset.
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This concept has been popular in the luxury segment of the market now for years. Owners of private jets, luxury vacation villas, exotic cars and yachts realized long ago that it didn’t make economic sense to bear the burden of ownership alone when you only actually use the asset for a limited time each year. The first fractional resort was developed in 1983 by RBC Enterprises and its owner, Russell E. Brown: Brigantine Quarters in Shipyard Plantation on Hilton Head Island. Now, there are seven fractional products on Hilton Head, all of which are marketed by RBC. Since 1983 all major hotels (including Hilton, the Ritz Carlton, Marriott and Four Seasons) have entered the fractional market all over the world.

Having stayed at the Beach House several times, I can recommend the Beach House Residence Club as a great value for second home ownership. Russell E. Brown, CEO

For many, time is a key element. Owners can now relax instead of spending weekends working on their vacation homes each year. At the Beachhouse, we take care of all maintenance and upkeep for you - more quickly, more efficiently and at a lower price than you could do it for yourself. Why not spend those precious vacation hours building great memories with your families - not with a plumber or roofer? Also, shared ownership allows you to enjoy a larger, more luxurious vacation home in a premium location at a fraction of the cost.
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Yes. A fractional interest in the Beach House may be financed with a conventional mortgage. The rates and terms are usually competitive with traditional condominium mortgages. A number of local lenders would be pleased to assist you. See your sales representative for a list of participating lenders. Can I sell my fractional interest? Absolutely. Owners are permitted to sell, transfer, gift or otherwise dispose of their fractional interests in accordance with the condominium documents. An affiliate of the developer will act as the exclusive listing agent for the resale of all fractional interests and will cultivate an active resale market. Transfers within a family group will be exempt from commissions.

It doesn’t. Each owner gets a separate deed to their fractional interest in the condominium unit which is fully insured by the title company. The personal financial situation of any one co-owner will have no effect on the property rights of the others.

Yes. You may purchase as many fractional interests as you desire. You may also want to consider purchasing fractions of different resort suites to match your specific family needs. (e.g., a 2-bedroom for mom and dad and a 3-bedroom for an extended family stay.)
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Yes. Owners of vacation homes sometimes find that they have inadvertently created difficult situations when passing ownership of vacation homes to their children or grandchildren. Conflicts sometimes arise between the new co-owners over finances, usage and responsibilities. Should we sell and take cash or hold for future generations? Who will get the use of it and when? Who will manage the finances and perform maintenance? Who is willing (or able) to pay for operating, maintenance and capital improvement costs? Many of these issues can be resolved through fractionalizing the ownership of the property. For example, each child may be deeded a separate fractional interest in your unit (assuming you own more than one fractional interest.) Each child is free to use, sell, mortgage, rent, or trade usage rights to his/her fractional unit as he/she pleases. All maintenance and management issues are handled professionally. This resolves many of the common conflicts that may arrise in a co-ownership situation and insures that the family tradition of lake retreats remains enjoyable for many generations to come.

Yes. The condominium documents have been drafted to permit participation in a 1031 tax-free exchange. Individual situations vary, so please consult your accountant or attorney.
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Generally speaking, yes. Luxury fractional interest condominiums resorts have historically appreciated on a par with whole ownership condominiums. It all comes down to location, location, location! Each property is unique in terms of location, quality of construction, services offered, and amenities. Lakefront real estate values in the Holland area have historically done well, but this is no assurance that prices will continue to rise.

A 1/10 interest entitles you to 5 weeks of personal usage per year. In the interest of fairness, and to assure that you have equal access to each of the seasons, those 5 weeks are spread out rotationally throughout the year in a predetermined fashion. We call it a cycle. You will know what your cycle will be at the time of purchase.
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No. In the year you purchase you may choose a particular cycle you wish to start with. Each year thereafter your cycle will adjust by one week. This insures that all co-owners have equal access to the prime weeks over a period of year. Your sales representative can furnish you with a written schedule so you will know the exact weeks available for your personal use, even years in advance.

You are allowed to trade weeks with the other co-owners of your resort suite or even other owners of other units at the Beach House. The management at the Beach House will assist you in matching these trades.
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You have many options. First, you may choose to leave it vacant that week. You may also allow personal friends or family to use your unit. You may also choose to trade that week for another week that better fits your schedule. You can even rent the unit for income as part of our rental program. Finally, you may choose to trade it for a condo in one of the many luxury resorts throughout the world with our worldwide exchange program partner.

Yes. Subject to availability. Of course, it would be wise to call us in advance!
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In the interest of providing a healthy and safe environment for our owners, we have decided to prohibit smoking in all facilities at the Beach House. Each owner will be strictly responsible for the conduct of his/her friends, family and invitees while on the premises.

Yes. The Beach House has storage lockers in each owner’s garage that are exclusively for that owner’s use.
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Yes. You have full membership at the nearby Macatawa Legends Country Club. It includes the use of tennis courts, additional pools, state-of-the-art workout facility, spa, and of course, golf! (Four rounds per day)

We have so much more to tell you about the Beach House. You can contact one of our in-house sales representatives at (616)399-6388.
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