How to acquire your Dream Vacation Home and Pay 90% less ... · 3 Reasons People Don’t Buy (Even if you absolutely love the mountains, you may still want to relax on the beach.)

Presented by Fractional Realty, LLC

How to acquire your

Dream Vacation Home

and Pay 90% less

than your neighbor.

Dream Vacation Homes at a Fraction of the Cost!

Everybody wants a vacation

Or to be more precise, most of us NEED a vacation!

www.voyageurs-retreat.com

3 Reasons People Don’t Buy

(Even if you absolutely love the mountains, you may still want to relax on the beach.)

Price - People don’t believe its affordable. Usage - People don’t have the time to use it enough. Variety - People don’t want the same vacation over and over again.


Economic Realities

– The world changed fundamentally – and so did the mindset of vacation home buyers

– Buyers are more cautious about discretionary purchases – Many households have less net worth, less cash and less

credit available for 2nd homes – People are concerned that prices may drop further – People are looking for VALUE and have become more price-sensitive


Yes, but… “I still want it anyway!”


An Analogy

To illustrate a point, let’s use your car as an example.


Which Car Would You Choose?

Purchase Price

= $25,000

Purchase Price

= $300,000

Operating Expenses • Taxes • Gas • Maintenance

Everyone thinks the Ferrari would be fun, but no one believes it’s practical.


Pay for What You Use

But what if you could own your car but only pay for the time you spend behind the wheel?

2 hours/day driving 24 hours in a day

= 1/12th usage


Same Price! Pick One.

$300,000 X 1/12th $25,000 Ferrari = $25,000!

Toyota = $25,000



What if the cost of your vacation home was limited to the time

you actually spent using it and enjoying it?


Which Vacation Home Would You Choose?

Purchase Price Shack = $200,000 $150,000 (foreclosure)

Purchase Price Estate = $1-2 million (new construction)

Operating Expenses • Taxes • Utilities • Maintenance

Everyone believes the estate would be fun, but no one thinks it’s affordable.



How many days does the average owner spend at their second home each year?

(4 weeks is 1/13th of a year.)

26 days! = <4 weeks


Same Price. Pick One!

$1,950,000 X 1/13th $150,000 Estate = $150,000!

Shack = $150,000


What is Fractional Ownership? 1. A whole property is legally divided into smaller fractions.

a) It’s not timeshare. In timeshare you typically have a “right to use” (like renting) or get “points” (to trade).

b) It’s not shared ownership. Fractional ownership is a whole ownership interest in a subdivided property.

2. Individual deeds are created and each buyer gets their own title (just like the one on the home you own now).

a) Deed = transferrable liquid (sell on MLS) b) Title = real asset eligible for financing c) Ownership tax advantages of a 2nd home

3. The title ensures you get equal usage throughout each season.

All owners split the cost of taxes, insurance, maintenance and housekeeping.


What is it like?

Think of a piece of cake….

All the flavor but only a fraction of the calories.


Now you get it!

Now that you understand the value of Fractional Ownership, you still have the

problem of where to buy.


Your Vacation Home Goals

• Beautiful • Accessible • Affordable • Private

• Available Financing • Easy to own • Maintenance-free • Variety

“I want it all!” Dream Vacation Homes at a Fraction of the Cost!

The Vacation Home Problem • Seasonal • Must choose (golf OR ski OR mountains

OR beach OR lakeshore OR forest)

• Overdeveloped (too crowded OR too much like home)

• Underdeveloped (no infrastructure)

• Limited to one location

Too Many Compromises!


Copyright (C) 2011 Fractional Realty LLC. All rights reserved. 19

The Giants Ridge Solution


The Legend at Giants Ridge | #4 Public Golf Course in MN (Golf Digest 2011 | #5 Most Affordable Courses in the Country (Golf Digest 2010) | #2 Golf Resort in Midwest (Golf.com 2010) | #72 Public Course in the Nation (Golf Digest 2009-2010) | #3 Public Golf Course in MN (Golf Digest 2009-2010) | #10 "Best Places You Can Play" in MN (Golf Week 2010) | "Top 75 Best Golf Resorts in North America" (Golf Digest Ranked #46 2009) | #5 Public Course in MN (Golf Digest 2007-2008) | #59 Public Course in the Nation (Golf Digest 2007-2008) | 4.5 Star “Places To Play” Rating (Golf Digest 2000-2010) | #4 Public Course in MN (Golf Digest 2006-2007) | #88 Public Course in the Nation (Golf Digest 2005-2006) | Top Five Mountain Resorts (Golf for Women magazine 2005) | “One of the Top Six Golf Destinations in the World” (Golf World 2003) | National Environmental Steward Award (GCSAA 2001) | #1 Public Course and # 3 overall in MN (Golf Digest 1999) | Top Ten Best New

Upscale Courses in the Nation (Golf Digest 1998) | The Quarry at Giants Ridge | #16 America's 100 Greatest Public Golf Courses (Golf Digest 2011) | #4 Public Golf Course in MN (Golf Digest 2011) | #1 "Best Courses You Can Play" in MN (Golf Week 2008 & 2011) | Hole #13 at The Quarry “3rd Most Fun Golf Hole in America” (Golf Digest) | "America's Most Important Golf Course in 2003” (Golf Digest 2010) | #5 Most Affordable Courses in the Country (Golf Digest 2010) | #2 Golf Resort in Midwest (Golf.com 2010) | #2 "Best Places You Can Play" in MN (Golf Week 2010) | #1 Public Course in MN (Golf Magazine 2010) | #1 Public Golf Course in MN (Golf Digest 2009-2010) | #20 Public Golf Course in the Nation (Golf Digest 2009-2010) | #2 Public Golf Course in MN (Golf Week 2009) | "Top 75 Best Golf Resorts in North America" (Golf Digest 2009) | #1 Public Course in MN (The Golf Channel 2009) | #1 Public Course in MN (Golf Digest 2007-2008) | #19 Public Course in the Nation (Golf Digest 2007-2008) | #1 in MN (Golf Week 2008) | 4.5 Star Rating “Places To Play” ( Golf Digest 2004-2010) | #2 Public Course in MN (Golf Week 2007) | #1 Public Course in MN (Golf Week 2006) | #56 “Top 100 Courses You Can Play” (Golf Magazine 2006) | #1 Public Course in MN (Golf Digest 2005-2006) | #16 Public Course in the Nation (Golf Digest 2005-2006) | Best New Upscale Public Course in America (Golf Digest 2004) | Best Recent Golf Course (Polo.com Magazine 2004) | Best New Resort Course (Golf MN 2004) | Development of the Year (Golf Inc. Magazine 2004) | Top Ten Best New Courses in the Midwest (Golf Chicago 2003) | One of the Best New Courses of 2003 (American Airlines Celebrated Living magazine 2003) | Best Golf Course of the 21st Century (Golf Digest’s Course Critic Ron Whitten 2003) | America’s Best Courses for $100 or Less (Travel & Leisure Golf magazine 2003) | #6 America’s Best Courses, State by State (Golf Week 2003) |

Downhill Skiing at Giants Ridge | #1 Ski Area for GROOMING in MN (Ski Magazine 2003) | #2 Ski Area for GROOMING in Midwest (Ski Magazine 2003) | #1 Ski Area for SNOW CONDITIONS in MN (Ski Magazine 2003) | #3 Ski Area for SNOW CONDITIONS in Midwest (Ski Magazine 2003) | #1 TERRAIN PARK in MN (Ski Magazine 2003) | #2 TERRAIN PARK in Midwest (Ski Magazine 2003) | “Minnesota’s Number One Ski Area” (Ski Magazine 2001-2002) | Midwest’s Top 5 Ski Area (Ski Magazine 2001) | Midwest’s Top 3 Ski Area (Ski Magazine 2002) | #1 Ski Area in MN for Grooming (Ski Magazine 2003) | #1 Midwest’s Best Resort for GROOMING (Ski Magazine 2001) | #1 Midwest’s Best Resort for VALUE (Ski Magazine 2001) | #2 SNOW CONDITIONS (Ski Magazine 2001-2002) | #1 Ski Area for VALUE (Ski Magazine 2001 - 2002)

Accolades & Awards

What if there was a single best choice?

“It’s a funny thing about life; if you refuse to accept anything but the very best, you very often get it.” -- W. Somerset Maugham, English novelist (1874 – 1965)


The Voyageurs Retreat Lifestyle

• Located in the heart of Giants Ridge resort. • 2,000 acres. 270 home sites. Surrounded by

State land. • Giants Ridge has the BEST Golf. BEST Skiing.

BEST Lakeshore. BEST Trails. PRIVATE Beaches. • Fully furnished. Expertly appointed. • No maintenance, yet always maintained. • It’s all here – No surprises, No compromises. .

Fractional homes from $99,900. Financing available with as little as 10% down.


The “Mesabi” @ $99,900 for 1/13th Ownership







And What About Variety? Your home at Voyageurs Retreat also includes membership in an exclusive club of owners who are willing to trade their million dollar homes all over the world for usage of yours.

International. Exclusive. Included. Dream Vacation Homes at a Fraction of the Cost!

www.FractionalExchange.com Hundreds of lavish homes in dozens of exotic countries.


Now you get it!

Now that you understand where to buy, you won’t believe

how easy it is to own.


Step in the Purchase Process


What if…

… your definition of “economy car” was turned on its head?

What if your total cost of ownership was much less while your total enjoyment could be much more?


So…

A. Are you interested? B. Do you want this

lifestyle? C. Can you find some

friends to help you use your free vacation voucher?


Yes, you can!

Fractional Ownership is your key.

Voyageurs Retreat is your treasure.


You’ll be glad you did!

Fractional Realty, LLC www.ILoveVR.com

Say yes.


http://www.ilovevr.com/

Congratulations - We look forward to having

you as a member of the Mesabi Retreat!

Mike Peterson [email protected]

(612) 226-7467


mailto:[email protected]



1) The “new normal” for Ownership.

The phrase “fractional ownership” is used to describe shared ownership of a vacation or resort property by people in an arrangement which allocates usage rights based on time. This multi-billion biz has been around for 25 years with product offerings in over 50 countries worldwide.

It’s important to note that fractional arrangements provide you with a deed for the property.

It boils down to this: each participant has a legal ownership arrangement and is allowed use of a particular property at a particular time. A fractional arrangement can be made for a single home or apartment (also

known as a “one-off fractional”) or to a multiunit building or resort development. Don't confuse fractionals with timeshares, here's why:

1) You get more time because you are entitled to multiple weeks not just one week as with most timeshares. 2) You own the structure, the land and furnishings with a deeded property...not just air within the walls for specific times.

3) Qualifies as a second home for tax deductions......ask your accountant.

4) You can mortgage the property, so you have the option to do a cash-out refinance or line of credit.

5) With 4, 8 or 12 owners, you control and make decisions about the property, rather than allowing a developer to retain

all control. So you have a voice and your vote matters.

Watch for the timeshare terms like private residence club, shared ownership vacation home partnership, destination clubs (in which participants purchase a temporary right to use without ownership), or a condohotel or condotel (in which each participant has whole ownership of a particular hotel room or suite). These are timeshares, not fractionals. Continued on page 2...

Fractional Vacation Property: The Best Kept Secret.

Research on Real Estate TrendsFALL /WINTER 2011 PRESENTED BY MIDWEST FRACTIONALS ISSUE ONE

Inside this special report you’ll discover 9 probing questions & 18 fascinating answers.

Mike Peterson is a FHI Certified Consultant & fractional property expert

Fractional ownership is not to be considered an investment strategy. You may experience financial gain but the real intention of it is to enhance your vacation or retirement lifestyle.

Studies show: People with vacation homes use them 30 days a year. So the property sits for 11 months unused.

You Get a Premium Property

Fractionals focus on larger vacation homes, resort properties, cabins and condos in or near popular vacation destinations. While the fractional concept grew out of popular ski areas in America's western Rockies, the popularity of fractional ownership has truly gone global with focused interest in the Southern United States, various recreational areas across the U.S. along with the Caribbean and the resort Mecca's of Mexico. Today European and numerous Mediterranean properties offer unique fractional ownership opportunities.

You Can Take Advantage of Strategic Tax Planning

Because your fracitional qualifies as second home and 100% deductible, you may be able to find significant tax savings. Talk to your accountant about the details.

You Can Build Equity While Vacationing

After 30 years of vacationing in northern MN and abroad, why not own the property outright instead of giving your hard earned money to Resorts and/or hotels every time you travel?

You Can Create a Legacy for Your Family

Create memories with multiple generations (grandparents, parents, aunts/uncles/cousins, kids and grandkids) and then leave the asset to your children to do same!

You Can Use Your Fractional for Charity

W h y n o t m a k e c h a r i t a b l e contributions as time in your unit? Support your favorite Priest or Pastor, offer a week to your favorite silent auction, etc.......why not have those 'donations and gifts' now help you build an asset with real residual value?

Your Can Create Unforgettable Gifts

Imagine how you can use your fractional real estate for the holidays birthdays, anniversaries, etc.....

Why not give a 2-night, 3-night or 1-week stay cation to a relative or close friend and use those dollars to build equity in a long-term asset with residual value for you verses spending those dollars on a consumable at the mall.

A Fractional Offers You A High Vacation IQ.

Why not maximize your vacation dollars and discretionary money whenever possible? Owning and enjoying fractional real estate just makes sense on so many different levels. And you know the old saying, it’s not how much you make it’s how much you keep!

Yo u H a v e t h e O p t i o n o f Creating Rental Income

With most fractional real estate arrangements you have the possibility of earning rental income if and when you desire.

A Fractional Can Be Great for Your Small Business

As a small biz owner you use your property for corporate retreats for employees, clients, key prospects, special parties or as a sales incentive award. And, after the business has paid it off, you may be able to deed it back to the owner individually for $1.

The ideas on how to use your fractional real estate are limited only by your imagination. More reasons why fractional real estate continues to grow in popularity.

2) A quarter century of success, all around the globe.

A truly trusted method of ownership. While fractionals may differ slightly across the world, most U.S. fractionals are built into a business identity or group in which all members (usually between 4 and 13) are owners and have deeds to the property. Here’s why fractionals continue to grow in popularity...

There are many potential benefits to fractional versus whole ownership. But here are the four significant benefits:

R e a s o n # 1 L o w e r Acquisition Costs: Buying a fraction of a property means you pay only a fraction of the cost of the entire property. In addition, the costs of renovating, furnishing a n d o u t fi t t i n g t h e property are shared.

Reason #2 Lower Operating Costs: By sharing the burden of property tax, insurance, utilities, and maintenance, a n d r e m e m b e r t h a t i n c l u d e s r e p a i r a n d replacement of furniture and other household items and appliances. Maintaining a vacation home can be particularly complex because of intermittent usage and the distance between the owner and the property, often requiring the assistance of a local manager or management company. Sharing the cost and efforts of operating dramatically lightens all these burdens.

Reason #3 Eliminate or Diminish the Need for Rental

Tenants: Today more and more vacation property owners are looking to rent instead of leaving the property empty. But it's not an easy

task. You may well find yourself spending countless hours promoting the rentals, responding to inquiries, handling bookings, checking tenants in and out. Oh yes, and readying the property between tenants. You could also hire a manager or rental agency and you will generally give up 50% or more of the gross rent. Either way, the tenants extract a significant toll on the property, and the rental

periods most in demand a r e w h e n you want to use it.

While some fractionals a l l o w

ow n e r s t o rent out their home when they are unable to use it, the lower cost of buying and owning a fractional means you wouldn't need the rental option.

Reason #4 Diversification o f I n v e s t m e n t a n d

Destination: Imagine taking the money needed to own and operate a single vacation home and instead spread it over two or three vacation homes. This lowers your investment risk and increases the likelihood of profit by exposing you to two or three different real estate markets.

Better yet, owning vacation homes in several locations gives you more vacation options each year, while still allowing you to spend your time in your own homes where you are comfortable and that you are familiar with.

By purchasing a faction of a premium property, you get all the amenities without the full ownership hassles. And when you do the math it means you may be able to fractionally own a $1,250,000 vacation home for just $500 to $1,000 a month.

J u s t i m a g i n e , w i t h a n arrangement like this, each year you'll have roughly four individual weeks of access. And today fractional arrangements are based on highly effective and proven formulas providing a balanced equity for all owners involved. So you’ll enjoy your property more without all the hassles

and heartaches of sole ownership.

3) Why would you invest in a fraction when you could be the sole owner?

While this may seem like a strange thought, millions of us simply aren't very educated on vacations. Discover your true Vacation IQ...

Did you know? The average family of four goes on two vacations per year which can cost between $5,000 to $7,500. And these are paid with after-tax dollars.

So what’s the real cost? It means your real costs could be 15% to 40% more -- depending on your tax bracket. Oh let's add in local taxes and fees for accommodations. It adds up!

But what’s the true cost of not taking vacations? With today’s increased pressure on workers of every stripe to do more in less time, workers of all occupations now 'need' not just a 'want’ vacations or at least an occasional get-away. Face it, we all need vacations.

What’s the long-term financial affect? Consider 30 years of vacations. All the reservations, the fees, the taxes and other hidden expenses, and you have one heck of a vacation budget! According to averages we mentioned earlier, that could be at least $150,000 to $225,000. The only residual benefit are the memories and photos, but not the underlying property.

Ever consider the tax benefits of fractional real estate ownership? Did you realize you can own a fractional property as second home and take advantage of tax deductions all while building equity. Always check with your tax attorney or Financial Advisor as to

the tax benefits of second home ownership.

Consider the asset building opportunities. Imagine the value of building equity in a real estate investment that you also can enjoy. It’s important to note that fractional arrangements provide you with a deed for the property. Look ahead and you’ll have a fully paid for asset after 25-30 years. And along with that all the great vacation memories and photos to boot! Plus as part of your new wealth creation strategy you have another retirement asset. Use it as line of credit, reverse mortgage, or add family

members as 'partners'. Also you can Will this to your family members after you die as part of your estate. Your financial

advisor can help you with these details.

Want more variety in your vacation options? Fractional ownership can provide the oppor tun i ty to eng age in an exchange program with other fractional owners. This works by arranging professionally managed time swaps. So you may trade out your time at your Florida fractional for time at a European or African fractional.

Imagine a week golfing in Ireland, scuba diving in Australia or hiking historic Spain. Fractional owners are taking advantage of their unique situation by using exchanges to explore and enjoy the entire world.

Take this quick quiz, You might be surprised by what you learn...

Stop & think: Can you afford not to own a vacation home?

5) What's driving Fractional Ownership?Studies show, year after year, people with vacation homes only use them 30 days a year. That means the property sits there for 11 months unused and unmaintained. And what about all that guilt?

4) What about the ongoing expenses? Because fractionals have become so sophisticated, the formula used to create payments for the owners has been designed to provide needed funding of property taxes, utilities, upkeep, insurance and maintenance. There's usually a two-week downtime built into the schedule for maintenance and repair of the property.

So when you have your time at your property, it's all yours. No chores or honey-do lists. Just time to do your thing – do what you work so hard to enjoy. Fractional ownership offers all the enjoyment of a premium property without the high price or hassles.

Many second home owners will tell you how awful they feel about not using their property more. But life is busy. And if a property is two, three e v e n f o u r h o u r s a w a y, t h e opportunity to use it more than 30

days is really difficult. Fractional ownership offers the opportunity to not only enjoy ownership of a premium vacation property, but also the pleasure of knowing you aren't shouldering the entire burden.

6) So, who is using Fractional Ownership?

Busy ad agency partners find

get-away recharges their batteries.

With an urban business taking 9 to 12 hours a day to run, Tom and Janet Rogers bought their first fractional at an all-season resort location, as an escape destination.

But they also found the surroundings to be invigorating. So they used their time at the property to create new ideas for their business. "It became an amazing new frame of reference for our business. We're having our four employees up for a retreat this spring."

Recovering cabin owners find

alternative to the 90 days of summer.

As recent retirees with more time to enjoy their seasonal cabin, the Lillnova's came to a startling reality, their retirement turned into more work. "We could spend more time, but it justmeant more chores. And as you get older, it's just not enjoyable to open and close the cabin each summer. When we discovered the details on fractional ownership, we were in. Now we have more enjoyment and options, not a 90-day summer at the cabin."

Friends and Families double

down with fractionals to make luxury vacations a new lifestyle!

Because of its amazing affordability many in the middle class are taking advantage of Fractional real estate opportunities.

They've found by partnering with a friend or family member cuts the costs in half yet again. And they find it easy and beneficial either vacationing together or simply split the weeks up as needed.

Today you’ll discover how small business owners, retirees & the middle class are finding success with fractional ownership. They all get great value from this hassle-free vacation home reality. See for yourself...

7) Why should you consider fractional ownership?

Face it, unless you have a way to pay for a million dollar vacation home, the odds are you will never experience a million dollar vacation property. Fractionals are a smart and savvy way to regularly enjoy premium property ownership without the hassles and expense of full ownership. And now many new financing options are available offering historically low interest rates and amazingly affordable monthly payments.

8) What? You want more variety in your vacation real estate options?

9) Could fractionals be today's best kept secret in Minnesota?Imagine inviting your family or friends

to an exquisitely appropriated beach front home in Florida. Or rewarding your company's top sales person with a week of skiing at a prime mountain resort. How about a week in February at a Caribbean residence?

While the idea of fractional ownership may be unknown to many, it is quickly gaining popularity and acceptance as a viable ownership option today. If you're a forward thinker and can see the upside of this new idea, we encourage you to take your next steps forward.

That's because fractional ownership can provide the opportunity to engage in an exchange program with other fractional owners.

If you like to travel and seek new destinations, fractional ownership offers amazing options.

This works by arranging time swaps. So you may trade out your time at your Florida fractional for time at a European or African fractional. Imagine a week of golf in Scotland, snorkeling in Aruba or eco exploring in Costa Rica. It happens every day for hundreds of fractional owners across the globe.

See if Fractional Ownership is right for you...

Ask for our FREE Personal Self Evaluation checklist to help you determine if Fractional Ownership is right for you.

Call Mike Peterson, an FHI Certified Consultant, at 612-226-7467 or [email protected].



Documents

How to acquire your Dream Vacation Home and Pay 90% less ... · 3 Reasons People Don’t Buy (Even if you absolutely love the mountains, you may still want to relax on the beach.)