Bernard Freibaum, an accomplished financial executive with extensive real estate experience, has joined timeshare developer Shell Vacations LLC (www.ShellVacationsClub.com) as Chief Financial Officer. Freibaum will work closely with Shell Vacations Chairman and CEO Sheldon H. Ginsburg and President and COO Tracy L. Sherles in evaluating new growth opportunities and enhancing business operations within the company’s many divisions.

Added Ginsburg, “We are delighted to welcome a financial executive with Bernie’s impressive credentials and record of accomplishments. We are confident he will become a significant member of our team as we move forward into a new economy.”

Sherles agreed. “We believe our entire company will benefit greatly from Bernie’s expertise and considerable experience.”

During his more than three decades as a financial professional, Freibaum has worked for large public accounting firms as a real estate and tax consultant and for a host of real estate-oriented companies spanning all property types and disciplines. He has skills in development, management, acquisition, disposition, finance, tax and accounting.  Most recently, he was the Chief Financial Officer of General Growth Properties, Inc., which focused on regional shopping malls, where he was awarded “Best CFO” in the public Real Estate Investment Trust (REIT) sector by Institutional Investor Magazine for three consecutive years, from 2004 to 2006.

A Chicago native, Freibaum holds a BS in Accountancy from the University of Illinois, an MS in Taxation from DePaul University and a JD from DePaul College of Law. He has attained the designations of Certified Public Accountant and Attorney-at-Law.

Headquartered in Northbrook, IL, Shell Vacations LLC is one of the most respected independent vacation ownership developers in the United States, operating or affiliated 23 resorts in the U.S., Canada and Mexico. The company specializes in the sales and hospitality management of vacation ownership resorts as well as servicing over 125,000 owner and member families of its vacation ownership products.
www.ShellVacationsHospitality.com, www.ShellVacationsClub.com

Following on from the industry-first success of Owners Perspective Magazine’s independent positioning of shared ownership products amongst general consumers through first class airport lounge distribution with more than a dozen of the world’s leading airlines, and in top hotels, resorts, golf clubs and spas, the specifically tailored Resort Developer Editions are helping on-site sales credibility, reducing new member cancellations and increasing the opportunities for upgrades, rentals and referrals.

Since its official launch last month, the publisher has announced confirmation for distribution and use at resorts in Mexico, Thailand, India, Bali, United Kingdom and soon plans to announce a number of confirmed contracts in Florida, Canada and Australia. These developer orientated special editions are backed by the credibility of the world’s largest independent publication for shared ownership products that is available to the general public and is exciting and motivating sales teams as it continues to be implemented in more and more resorts around the globe.

“We are so pleased with being able to provide another unique product to help increase sales and customer retention, and the rapid success of our Resort Developer Package is testament again to the quality of our work” says Paul Mattimoe, CEO of Perspective International Ltd.

With an incredibly versatile suite of options, developers can choose some or all of the features provided within the package to create the perfect fit for their operation(s) and orders can be placed with no long term commitment enabling resorts to quickly integrate at low cost.

For more information on Owners Perspective Magazine’s Resort Developer Options please request an information pack by emailing advertising@perspectiveinternational.com

Owners Perspective Magazine can be freely read online at http://www.ownersperspective.com

By Lisa Migani

Thinking about selling your existing property as fractionals? If you need some really good background information, then start by looking at www.fractionalpropertydeveloper.com.

The biggest mistake a developer can make is to start on the fractional route the wrong way around. If you start by trying to find a marketer, then you won’t be ready to actually sell when you need to be. Reservations to sell never amount to anything – get the legal structure and all the relevant documentation right and you won’t lose any
sales opportunities.

But first, you have to understand what is possible with what you have. Are the right numbers of people going to this area? Is it really something that’s desirable to the fractional market? How much is it going to cost? If you’re looking at a villa that’s so highend that it’s going to be very niche market, then maybe now isn’t the time to launch that particular product.

For Starters
We know that there are huge opportunities with distressed real estate properties in desirable holiday locations. In Cyprus there is a surplus of holiday real estate that isn’t being sold right now; likewise in Spain, Turkey and other beautiful places. However you can’t say that any Mediterranean beachfront real estate will sell as fractional.

Let’s imagine a developer who has 50 units at a really nice property on a Mediterranean coastline. He’s sold 10 units outright, but he really doesn’t know how to sell the rest. It’s not an incredibly expensive location – the cost of the real estate has plummeted and despite that fact he can’t sell it as whole ownership.  What could he be doing? Creating an
appropriate fractional product could be the answer. Let’s look at what the British want and make it affordable for them. I’m sure we can come up with a kind of fractional product which will have a market. And that could be a short-term usage plan for the fractional property owner, with the sale of the asset at the end of either 10, 15 or 20 years.

So, we’re looking at a consumer say, “I’m getting the usage that I want, and at the end of the 15 years, these villas will be put on general sale and I will get part of the sales proceeds, so I actually have an exit strategy and I will get some sort of return.”

That’s the kind of fractional that people ought to be looking at now because there’s a market out there, and for British buyers, there is also definitely consumer finance available for that product as long as it doesn’t cost more than £50,000. This scenario is not the idea that Americans have of fractionals, but rather a European solution to what the European consumer can afford and would like to buy. Fractionals can be a lot of different things. We can’t say that fractionals are all high-end and come with a title deed – because if we could, we would also be able to say that a Ritz-Carlton property is a hotel and a Premiere Inn or a Travelodge isn’t a hotel because it’s so vastly different that they don’t belong to the same category. Well, they do belong to the same category, but the market is a different
market, they are promoted in different ways.

Within the fractional model there is a huge opportunity to create an innovative product to sell to a virgin market. You could be the first to launch a highly successful, high-volume fractional resort if you do the research and have the right product.

Legal structure
The legal structure behind a product is absolutely key, because if you haven’t got something which is rock-solid you’re still not going to be able to sell because the consumer won’t believe in it. The right legal structure ensures that everybody is protected – the consumer and the developer – and everything is going to work as it is presented on the day of sale.

You must define and implement the structure which best fits your business model. Trustee ownership is ideal for many fractional models. With the short-term usage plan and sale of the asset at a pre-determined time, the trustee in effect sells the property on behalf of the fractional owners and removes the danger that one owner could obstruct the sale! The trustee also disburses the sales proceeds to the fractional owners once the asset has been sold. Choosing the correct structure at the outset is fundamental to the long-term success of any shared-ownership development and should be at the forefront of any strategic or financial planning; get it right and you really are on to a winner.

Consider the following important questions regarding a potential legal structure:
• Does it give you long term flexibility and control?
• Is it simple to administer allowing you to focus on sales and marketing?
• Will your sales closure costs be minimized?
• Are you able to provide consumer confidence without hindering the growth of your business?

The addiction that people in Northern Europe (particularly the Brits) have to buying realestate in a lovely, warm country around the Mediterranean hasn’t disappeared with the credit crunch, and it hasn’t disappeared with the economic meltdown; it’s still there. You just have to have the right product to tap into it.

For more information, contact Lisa Migani at FNTC Ltd on + 39 (0) 541 24359 or +44 (0) 7879452066, or e-mail her at lisa.migani@fntc.com

Background:
Lisa Migani and FNTC
London-born Lisa Migani began her career in the shared-ownership industry with Interval International in 1989, spending seven years as the company’s regional director for Italy. She then left Interval and worked as a consultant, working for both Interval and FNTC. She now is director of business development for FNTC in Europe, Asia and the Middle East “and anywhere else that isn’t America, where my colleague David Cox heads up FNTC America.”

FNTC is part of IFG Group plc, a financial services company quoted on both the London and Dublin Stock Exchanges that is licensed by the Financial Supervision Commission as a corporate and trust service provider. A market leader for over 30 years, FNTC manages more than £2.5 billion of property assets and provides services to over 650,000 consumers.

“We’re a bit like an iceberg,” Migani says, “because we also provide back-office administration facilities and IT solutions for all sorts of different aspects of the shared-ownership industry and this side of the work we do is often under the radar of developers as we are so well known in our role as trustee.”

FNTC doesn’t charge fees for initial consultation and will make sure that a fractional product is commercially viable before agreeing to set it up. “We make our money when our clients are successful, and we have just launched a new website, www. fractionalpropertydeveloper.com, which aims to give developers and agents the knowledge they need to understand if fractionals would work for them” Migani says.

Wellington Financial Reveals Details About Liberty Bank’s Loan to Vermont Timeshare Resort Developer

Wellington Financial, the exclusive Resort Finance lending correspondent for Liberty Bank, is pleased to announce the bank has closed a $10 million receivables hypothecation facility with Smugglers’ Notch (www.smuggs.com) in Vermont.

“The facility will be used to finance future timeshare sales,” says Bill Stritzler, owner and managing director of ‘Smuggs.’ “We found the team from Liberty Bank and Wellington Financial to be first-rate when it came to understanding our needs. It’s refreshing to deal with a lender who understands timeshare so well. We’re looking forward to a long-term relationship.”

Liberty Bank Vice President, David Brede observes, “Smugglers’ Notch has been an important timeshare and ski resort developer for many years. We are very impressed with their management team and their consistently high standards.”

Shawn Brydge, senior vice president at Wellington Financial, noted that, “The resort is a terrific four-season destination and management has done a great job of creating a staff that feels more like a family.  The entire operation is run with a passion and excitement directed at creating the best vacation experience possible for each guest; it’s easy to see why they have such successful resort and timeshare operations.”

About Smugglers’ Notch Resort
Smugglers’ Notch Resort is located in northern Vermont’s Green Mountains with skiing and snowboarding for all abilities on 78 trails and 1000 acres of terrain on three mountains. The Resort’s extensive family programs have been recognized by SKI Magazine, the Family Travel Forum, FamilyFun Magazine, and Condé Nast Traveler magazine, among others. Lodging includes more than 600 privately owned and timeshare condominiums. Smugglers’ has received awards from SKI Magazine, the Vermont governor’s office, and other state environmental stewardship agencies for its innovative approach to environmental stewardship. The resort is privately owned by the Smugglers’ Notch Management Co., Ltd.

About Liberty Bank
Established in 1825, Liberty Bank (www.liberty-bank.com), based in Middletown, Connecticut, is that state’s oldest mutual bank, with more than $3.0 billion in assets. Liberty Bank has been actively lending to the timeshare industry throughout the U.S. for over 30 years. The bank’s commitment to superior service has resulted in lending relationships with some of the industry’s largest and most successful developers. Member FDIC. Equal Housing Lender.

About Wellington Financial
Wellington Financial (www.wellington-financial.com) is the exclusive Resort Finance lending correspondent for Liberty Bank and specializes in lending to developers of timeshare resorts, fractional resorts and retail land. Founded in 1981, the finance and service company offers a full range of products, including receivables hypothecation, purchase and conduit facilities; pre-sale and working capital lines of credit; acquisition, construction and renovation financing, as well as mezzanine and equity debt financing. President Ron Goldberg serves on the Board of Directors for the American Resort Development Association (ARDA).

Citadel Trustees Ltd (Citadel) is pleased to announce that it has recently entered into an exclusive Mutual Co-Operation Agreement with Best Group, thus enabling the company to expand its B2B services to a much wider developer client base.

Christopher Allen, Director, commented “Citadel is very proud to have entered into such a strategic alliance with Best Group due to the close underlying synergies between both companies and this new relationship will allow us to not only offer our bespoke Trustee and Stakeholder Services to a much wider market, but also enhance the process through which a developer will be able to offer his fractional product to the
market”.

Citadel and Best Group have been closely examining the Fractional market for considerable time now and have identified the need for a one-stop service, which offers a professional and cost effective package of key commercial, legal and trustee services to real estate developers looking to enter the Fractional market. This unique service will in essence mean, that once Best Group has taken the developer through the initial commercial feasibility phase, then Citadel will structure the legal framework for the project making it a more streamlined and cost effective process, giving greater credibility to the fractional product as well as enhancing its operational efficiency.

Best Group, www.thebestgrp.com, which at the recent 2009 OPP Industry Awards received the Highly Commended accolade in the category of OPP Best Fractional Service Award 2009, holds a prominent position in the Fractional market where it is highly regarded for its services to real estate developers, particularly in Europe, the Caribbean and Central America.

Brad Lincoln, CEO Best Group commented: “We are really pleased to be able to offer fractional structures and trustee services for fractional developers through this partnership with Citadel Trustees. Citadel has an excellent reputation in the market and a team with decades of experience worldwide. Being able to project manage the entire setup of the fractional scheme with a trusted partner will enable us to help developers get to market more quickly and cost effectively, using the experience of a strong team backing them”.

Citadel Trustees Ltd., which is also authorized and regulated by the UK Financial Services Authority, is a fully owned subsidiary of Hutchinson & Co Trust Company Ltd. which has been operating for twenty-five years, and was formed as a specialist Trustee with a principle focus on emerging products, in particular those requiring stakeholder and escrow activities, as well as Hotel buy-to-let schemes and other leisure related
investment products. Citadel operates its Head Office out of Camberley, Surrey and has branch offices in Spain, Thailand, India and China. For further information about Citadel, please visit www.citadeltrustees.com

Alternatively, contact Christopher Allen, Director of Client Services and Business Development, by email at
chrisallen@citadeltrustees.com or, call the company’s UK Head Office +44 (0) 1276 482015/16.

As property sales demand subsides, proactive property developers gather to understand the alternatives available to package shared ownership offers to smaller investors, embracing the Multi-Billion Dollar niche market of Fractional Ownership in Cyprus.

As property sales on the island of Cyprus stall, like thinking developers look to new avenues to generate new sales and income from alternative sources.

One of these solutions was discussed at the First Cyprus Property Developer Symposium on Shared Ownership in Nicosia at the Hilton Hotel.

The event featured a comprehensive presentation on how developers in Cyprus might utilize new systems in re-packaging properties to investors through collective ownership, co-ownership and fractional offers.

Put simply, this new niche market has blossomed into a multi-billion dollar industry worldwide as it allows an investor to own part of a property, to invest less, and maximize their own enjoyment and usage of a second home

Developers would typically allow up to 12 investors to purchase a 1/12th interest in a luxury second home, thereby allowing them usage of one month a year.

Today, this system in popular in the USA, Thailand, Dubai, Turkey, Greece and other markets where tourism has flourished and the appetite for a second home has provoked investors to obtain their own piece of the pie.

Typically the developer places the selected property into a company, and allows smaller investors to purchase shares in the company, giving them the right of usage for one month a year, and also securing their investment with an equity based asset that the company they invested in now owns.

“Although there are several formulas on the market today, we believe forward thinking developers will embrace this formula to move their sales forward, and at the same time, attract a new fresh caliber of savvy investors who would never use a second home in Cyprus more than one month per year.” said Michael J. Tolan, CEO of World Class Group.

Tolan reminded the audience that developers who do the exact same things they have been doing without changing their mindset or strategy are doomed to sink in quick sand.

George Mintis, Vice President of the CTO also announced that the Cyprus Tourism Organization was reviewing proactive solutions for Hotel Owners to also profit from other forms of Shared Ownership, and highlighted Condo Hotels as one area of potential focus.

The Registry Collection, the world premier lifestyle services company that provides flexibility and value to investors of Fractional Ownership owned by Wyndham Worldwide was featured to the attendees as a solutions company to assist developers to enter this new arena.

Mr. Vassilis Themelidis, Regional Director of Group RCI based in Athens, was on hand in Cyprus to meet property developers who he believes can and will capitalize on this sector of the market.

“We at Group RCI are committed to provide Cyprus developers with the experience and support of our organization we have earned over the past 30 years worldwide “ he said.

“There are sunny days ahead for Property developers in Cyprus who embrace this concept now and who make a commitment to exceed client expectations by delivering superb products and services” he added.

Internationally acclaimed design, branding and marketing company yoo, together with one of Asia’s leading development groups Absolute are set to launch a new apartment complex that will provide buyers with both a beautiful home as well as a secured and guaranteed investment – the perfect antidote to the world’s economical slow down and the safest haven to invest at yooPhuket.

When deciding on a foreign property for purchase, whether to reside in permanently, use as a vacation home or as an investment, it is wise to pick a property that has been developed by a reputable developer; one with a strong track record of well-built construction projects as well as professional after-sales management. Also, the developer should make the buying process as simple and painless as possible. The developer should be well versed in the country’s property ownership laws and regulations and have solutions for any hurdles that buyers may face when buying in a foreign market.

Also, when it comes to purchase a property, a buyer can choose units that are furnished or unfurnished, and of course any buyer that chooses furnished wants their new investment both functionally and stylishly equipped using high quality products. The interior design of a home for sale and the complex the home is set within, regardless of the location or how well it is built, can easily sway a potential buyer’s decision on whether to purchase it or not.

So when Absolute combined their Thai housing and apartment market knowhow and experience with world renowned design company yoo, they laid the foundations for one of a kind partnership that is able to offer unique properties that meet all the above mentioned criteria. The Absolute Developments company and the uber cool yoo brand have united and are now set to offer a distinctive selection of designer apartments and penthouses that are superbly built on the beautiful island of Phuket, Thailand. The development, yooPhuket, promises to deliver well constructed homes that have interiors created by the exciting and cutting edge yoo designer team.

Who are yoo?
A truly international brand, yoo is celebrated for its innovative design flair, high specification and democratic ethos. Having co-founded the Manhattan Loft Corporation, which transformed urban London living in the 1990s with its regenerated loft spaces, property developer John Hitchcox formed yoo in 1999 with the world’s most celebrated designer, Philippe Starck. Since then yoo has continually raised the bar for contemporary design and electrifyingly redefined the simple word ‘home’ in award-winning schemes around the world.

Over the past ten years yoo has been working with international partners on a variety of landmark buildings
and large residential projects throughout Asia, Australia, Europe, North and South America and the Middle East.

In 2008, yoo won two awards from CNBC International Property Awards for ‘Best Interior Design’ at The Jade,
NYC and ‘Best Development, Central and South America’ at Punta del Este. The company also won awards in the same year from The Home Overseas magazine and The What House Awards.

yooPhuket has been created by the yoo Design Studio. Yoo is particularly known for its interior design and ultra chic styling, bringing together some of the best design talents in the industry. Prior to the yooPhuket project, yoo’s experience in Thailand includes the exclusive Cape Yamu villas, built in partnership with Campbell Kane, also in Phuket.

And Absolute Developments…
Absolute World Group of Companies are the parent company with offices across Thailand, China, Russia and Hong Kong. With a staff of more than 850 personnel, the Absolute Group offers an integrated range of services including a worldwide network of international estate agencies and a vacation club with thousands of members. Many of Absolute Group’s customers consider their purchases with the company as a long-term investment; as well as a getaway to some amazingly beautiful locations.

Absolute Developments concentrates their efforts on high-end luxury resort destinations including private pool villas, boutique resorts and large multi-storey condominiums. The company has vast experience in hotel management, property development, fractional vacation ownership and property rentals. Thus they are well versed in providing a multitude of solutions for their clients. The group’s diversity, coupled with the strong joint venture partners it attracts, makes an Absolute property a sound investment choice.

Introducing yooPhuket
yooPhuket is a collection of 256 stylish designer apartments and penthouses available as studios, one and two bedroom apartments and stunning penthouses and sub penthouses. All set within a beautiful tropical and natural landscape surrounded by three of Phuket’s major Golf courses. yooPhuket offers a year round perfect get away location with amazing flowers in bloom, coconut trees swaying in the wind and its renowned warm climate. As well, yooPhuket is perfectly located to act as a base to enjoy all of the other great attractions Phuket has to offer – the best golf, the best beaches and the shopping and nightlife of Patong only 15 minutes away.

The apartments are divided among five interconnected six-storey buildings. The crisp clean lines of the sleek contemporary architecture are an elegant complement to the surrounding landscape. Natural local materials are incorporated into the designs to make the link with traditional Thai culture.

The contemporary design on yooPhuket offers open plan living space with dramatic floor to ceiling windows, opening onto spectacular views across the lake, golf courses and lush landscapes. The impressive master bedroom suites have en suite bathrooms and walk in closet space. Stylish kitchens are fitted with integrated appliances including oven and hob and fridge/freezer. Spotless bathrooms have fully tiled walk in shower enclosures and state of the art home technology includes comfort cooling systems, video door entry and the latest audio visual equipment.

The wraparound balconies of the apartments’ buildings provide each home with its own private outside space for relaxing, dining al fresco and taking in the sweeping views. The buildings are set around the stunning pool complex, which creates the natural focal point and social hub of the development. The impressive collection of multi level infinity pools is large enough never to feel crowded. Alongside the pools are the clubhouse, fine dining restaurant and cafe, as well as palm lined poolside cabana areas featuring outdoor fireplaces offering somewhere exceptionally relaxing to have a refreshing drink and a bite to eat.

The immaculate grounds are carefully tended by the maintenance team throughout the year. Planted with indigenous and tropical species, the gardens are colourful and fragrant with flowers such as jasmine and orchids. The tropical climate allows for year round blooming of trees and flowers which can be attested to each night by the lovely fragrance in the air.

As each unit interior offers a choice of stylish yoo furniture collections and a selection of divine signature collection additions, apartments can be ready to move into quickly. Buyers can opt for the Standard Collection or Superior Collection packs which include not only furniture, but everything right down to the kitchenware and bed linen.

yooPhuket apartments come with first class service, amenities and benefits, including:
A beautiful, tranquil, lakeside setting with stunning countryside and golf views.
Multi-level infinity edged pools, palm lined courtyards with cabana relaxation areas featuring outdoor fireplaces, poolside clubhouse, games room and indoor-to-outdoor fine dining restaurant and bar.
Fitness club, yoga and wellbeing spa, business centre and conference room.
Use of a 31’ Gulf speedboat with captain and hostess for all Fractional buyers
Use of the top of the range Calloway Golf Clubs for all Fractional buyers.
Extensive concierge services for all Fractional buyers.
24 hour security.
Shuttle buses to Patong beach and shopping centres.
10 – 15 minutes drive from the most stunning beaches and vibrant nightlife.
45 minutes drive from Phuket Airport.
Experienced rental management programme.
An excellent optional high rental returns opportunity.
Incredible value Quartershare Fractional Ownership and Freehold Foreign Ownership.
Deferred interest free payment options (subject to availability).

Buying at yooPhuket
Apartments at yooPhuket are available to buy either outright or through Absolute’s acclaimed quarter-share fractional ownership scheme meaning you can realise the dream of a luxury Thai holiday home at a fraction of the price.

Under Thai law, non-Thai nationals are permitted to buy apartments in a development. The process of purchasing property in Thailand is not complicated, and Absolute will introduce buyers to a local law firm who can guide them through the purchase process. Absolute will also guide buyers through all of the things they need to know such as how to set up a Thai bank account and which type of visa is required. Buyers are free to rent out their apartment and full management services are offered by Absolute at yooPhuket. Their sophisticated reservations systems means a high occupancy level and an anticipated rental yield of 7% for the first five years makes sure the asset is paying its way. If a buyer chooses to rent their property, yoo designed furniture packages are available providing everything guests would need.

Pre-Launch Sale
Before the full launch of yooPhuket this winter, Absolute are offering incredible pre-launch deals for those who want to buy into this unique development early. A wide range of deals are available. Visit www.yooPhuket.com to be amongst the first to receive the pre-launch edition brochure.

yoo work in partnership with other major developers and are currently working on 44 partner projects across
5 continents, no one project is the same, the common factor is the enhanced comparative value the yoo brand brings to a development. This value is very apparent: yooToronto – 66% sold out in 5 hours;  yooNewYork – 90% sold out in 7 days; yooPunta del Este – 85% sold in 1 month. Sales of yooPhuket’s first phase are already nearing 30% sold at investor launch stages and there are some incredible deals to be made prior to general release later this year.

For all sales enquiries please contact a member of the Absolute Real Estate Team +66 (0) 76 346 282 or sales@yooPhuket.com or register at www.yooPhuket.com

Perspective Magazine met with Sherman Potvin at the Ragatz Fractional Interest Conference in San Francisco and we were intrigued to hear about the industry veteran’s new project, Fractional Homes International.

Perspective: Can you start by giving us some background on yourself and your company?

We have LuxuryFractionalguide.com which is the largest fractional website in the world, and we geared that website to be consumer oriented, We wanted to do two things: obviously make money in the long term, but what I had discovered 15 years prior is that the education of the general public is crucial if this was going to be a success. Because the website is consumer oriented, we write articles and updates and we now have a blog to further educate the public on the pitfalls and the promises of fractional sales and the benefits of course of why people are buying fractions and why developers are selling them.

Luxuryfractionalguide.com has been like a window on the world of fractionals for me that very few people have.

One of the things I learnt quickly was… have “Ask The Expert” on that website and I often at times want to just rip it down! Because I get so many questions, but I’m the sort of guy that will answer them, people take the time, so I answer them, so there I am 10, 11, 12 o’clock at night, I’m at my computer and sometimes I’m like “god these questions!”

So I thought I could alleviate some of the questions by writing a book because the questions are mostly from home owners around the world, I’m not talking just America, but Bulgaria and New Zealand, Australia and the Middle East and the Far East, everywhere, in fact it was amazing to see where they came from.

So, I wrote my book, as I said about 18 months ago, Fractionalize to Maximize, and it served a purpose to some degree, I’ve sold over 2000 copies from people all over the world, so the book has been helpful but yet it’s created even more questions as I had wanted to keep it in layman’s terms and there’s more to selling a property than just what’s in the book, this is more about how to get your property ready to sell.

So, I knew, and I’ve known for a couple of years that the niche within the niche of fractional ownership, is the one off standing homes, the single vacation home where people want to sell them in this economy and can’t, but even in good economies when, two, three or four years ago when the economy was rolling, people were wanting to sell in fractions to maximize their return, and, they understood that if they could sell some fractions of their home, keep a fraction, they could have their cake and eat it too. They could still go to visit their place but they didn’t have all the costs associated with ownership.

So, what with that, I started to think about developing Fractional Homes International, which is a franchise company, and basically, our goal here is to produce talented, knowledgeable, trained people – real estate related people – whether they’re real estate license agents or small developers or investors who want to buy a home and turn it into fractions. This company will serve all those people – with our “bible”, what we call our training manual – which is 14 months in the writing. This will serve our franchisees with the knowledge to be able to, from A to Z, take someone’s home, and sell it out in fractions.

There’s nobody consulting today that wants to deal with a one off home because there’s no money in it. Myself and the six or eight other people who do consulting for the larger developers, we tend to stick with the larger developers because a) the homeowner can’t afford us and b) there’s not enough long term money in selling a one off home for us.

So, I know that the people who graduate and come out of our training as franchisees will be busy right away because the market’s so huge, especially with the economy the way it is, so much beautiful real estate for sale at bargain prices, and even at bargain price there not moving. This is a way to move the person’s home and get a fair price for it. So, in a nutshell, I’m hoping Fractional Homes International will be the vehicle to springboard the vacation home owner from around the world ahead faster, the true fractional industry is going to be growing, the first niche has got to come out of the box.

I believe that the industry itself is going to recover much quicker than whole ownership real estate. I think people are going to be looking for alternative ownership where they can have a little chance of an investment, not as much money, be able to vacation in a much more expensive, nicer home than they normally could afford with a fraction of the cost and I think that’s where the industry is going.

Perspective: So, you’re going to train people to then consult consumers on how to fractionalize their homes– are you also going to help advertise those homes for sale, through the website?

Absolutely – our website will have those homes on it, our Fractional Homes International website, but also those homes will be on Luxury Fractional Guide as part of the deal. So they’ll have two different avenues of advertising. I really plan on this company being Number 1 in the world a year from now in the fractional industry.

I’m going to spend the money to do it, I’m committed to it and we plan to put this website out by mid-summer in five languages. We truly want to be international because the market is international. The long term goal is to have a master franchise, someone for Europe, and in the UK, someone Down Under, and every country that seems to have taken to the fractional concept. South Africa has more fractional programmes going on right now than we do, it’s crazy, its caught fire over there and so I would expect I would licence someone there to be a franchise for Fractional Homes International.

I envision this being a global company where they can all exchange inside the network and all the franchisees would have the advantage of being able to communicate with each other on what’s working and what’s not in different areas and what they did to a particular house to make it special, or where they put money that didn’t work etc.

I mean, the education within this company five years from now, with maybe four or five hundred or a thousand, even, agents, is going to be unbelievable, and it’s just going to make us all that much better.

Perspective: So for example, if someone owned a fraction of a home in San Francisco they could change it with someone in South Africa through you?

Of course. Right now we are bringing into play our own fractional exchange called Luxury Fractional Exchange but we envision maybe as soon as two years down the road, the company will have its own exchange system within the company as we’ll have that many homes being fractionalized and that will make it even nicer and more reason for people to join us.

Perspective: How would that work alongside some of the larger people you work with? Do you envisage being able to get the exchange company to a point where they’ll accept people from stand alone homes into theirs or do you think they’ll keep it totally separate?

No, not at all – I know all of the guys from the exchange companies , I’ve been in this industry all my life practically it seems, but, I know all the players, and they’re not particularly interested in getting into the one off single stand alone home as it doesn’t give them enough critical mass to be effective. Our exchange will be unique to vacation home owners and small developers.

Perspective: What would you class as a small developer?

Ten units or less. Anything over ten units we wouldn’t allow them on, we wouldn’t want them to dilute the product.

Perspective: I’m looking at your training manual and its huge – what sort of things are included? What does it entail? And do you get some sort of certification at the end?

Well yes. And of course, we follow this manual all through training and during the whole week of intense training, day and night actually, we do a mythical home, we actually do a whole home all the way through sales and marketing – the whole thing.

But obviously this is all in depth, and we only touch the highlights through training, but when someone has this manual when they graduate, they take it with them. They never really own this, we always own it, they just have it on loan and if they ever lose it or someone copies it, they’re gone. This is really serious material.

But to answer your question, the manual was built like this because we really, really wanted our franchisees to be – when they’re confronted with a little bit of a problem such as a different house, different location, something different about that particular project – not to have to call our mentors on a 24/7 basis – 99% of what they’re looking for is going to be found right here in the manual.

Perspective: So would people come to you in a training centre?

Yes – our next training will be in Denver, Colorado in July

Perspective: And how many people would come along to that?

25 – We don’t allow any more than that – we want it to be intimate, get to know the mentors really well because that’s who they’ll be working with. We’re all going to mentor these people so that they don’t make mistakes and they get off on the right track.

Perspective: And that lasts for one week and then they have an exam they have to pass to get their qualification?

There is a mini exam at the end. They get a certificate and with the certification they get to use all our marques on all of their materials, on their websites, and they are an accredited fractional consultant. For a real estate agent it would be invaluable because they’ll have such a leg up on their competition by virtue of being able to say both on their website and on all their collateral and in their office with our emblem that they have in-house – a person that can fractionalise your home from start to finish. I think that’s going to add tremendous value a year down the road.

Perspective: Do the homes have to have certain criteria – or a certain value? Would it be you that would select those homes or they would have to come to you for approval or some description?

Yes, definitely, we have our operations manual and our standards, and our ethics. All of this is related to our relationship with the person that comes to us and wants to sell their home. It definitely has to meet criteria, location of course being first and foremost, but then the fit and finish, the furnishings, the surroundings, accessibility, the landscaping. It has to be really perfect to be successful – the owner has to understand what needs to be done in order for their home to be right and if he doesn’t we are going to walk away and go to the next one. Because, we really can’t afford to fail – that’s the bottom line, we’ve got to make every one of our projects work in order for the company to grow.

So yeah, we’re hoping that we set the standards for integrity and success in this industry. There’s a lot of people breaking out in this industry claiming to be fractional experts and they’ve never even been on a project before – it’s embarrassing – I see their website and go, “my god, I know that person, that person doesn’t even know anything about this” – but the average consumer doesn’t know this. A lot of people don’t do due diligence and don’t make the phone calls and then they get themselves in trouble and they put thousands of dollars up and fail. So, we’re hoping that we can set the standard in the industry so that others will want to follow it and just to make it the right way so the consumer has confidence in this product; it’s an alternative product, not run of the mill real estate, as everyone knows and understands it. Now, if we all do it right it’s going to be successful. That’s our goal.