Hi all,
I have a client who would like to turn their whole ownership SFH into an LLC which would work much like a fractional. They would like to divide their property into quarters, rather than the usual 1/7 ownership offered in PRC's.
Over the next week I am going to develop a sales tool for them, as I feel their lowest hanging fruit are past guests, and close friends- they may already know the buyers.
I'd like to know if any Sowaller's have had experience in this, or if any of you have more suggestions of who the buyer might be.
Thank you for your help.
Replies
5
SoWal Expert
I can tell you that Realtors cannot legally sell shares of a corporation. That is a Securities violation, and a violation of the Florida Real Estate Commission (FREC). As a Realtor, be very, very careful. If the property is owned by a one corporation (LLC), you can list or sell the property to be sold, only in it's entirety, but you cannot sell a portion of the LLC.
I think it is important for owners to know that they agents cannot list a portion of their LLC in the MLS since Real Estate isn't being sold. Onlythe make-up of the LLC is changing, not the ownership of the property. The ownership of the property remains as X, LLC.
One way you might get around that is by having each owner create an LLC, and one person might be able to sell his/her interest in the property. I think a good long talk with an accountant and lawyer might also be necessary. There are many unknowns in going into a financial partnership with even your best friend, and there are even more unknowns of partnering with people whom you don't know.
FAR (Florida Assoc of Realtors) has a legal hotline for members, if you want to run it by them --->> 407.438.1409
I think it is important for owners to know that they agents cannot list a portion of their LLC in the MLS since Real Estate isn't being sold. Onlythe make-up of the LLC is changing, not the ownership of the property. The ownership of the property remains as X, LLC.
One way you might get around that is by having each owner create an LLC, and one person might be able to sell his/her interest in the property. I think a good long talk with an accountant and lawyer might also be necessary. There are many unknowns in going into a financial partnership with even your best friend, and there are even more unknowns of partnering with people whom you don't know.
FAR (Florida Assoc of Realtors) has a legal hotline for members, if you want to run it by them --->> 407.438.1409
Beach LoverAuthor
Thanks SJ! I did send them to an attorney in RB. I really appreciate this post.
SWGB
I just don't see this as a selling point. If a group of people are looking they will find something they want, and subdivide amongst themselves. I can't imagine anyone wanting to purchase 1/4 of a vacation home.
This is only my opinion.
This is only my opinion.
Beach Fanatic
That honestly sounds like a great deal of work, outside of your comfort zone, for a product not many people want. There are several fractional type listings collecting dust in the area. I think this would take 10 times the work of a regular sale. Just my opinion.
SoWal Insider
That honestly sounds like a great deal of work, outside of your comfort zone, for a product not many people want. There are several fractional type listings collecting dust in the area. I think this would take 10 times the work of a regular sale. Just my opinion.
Excellent point...I agree that your return vs. time spent would be minimal at the very best.
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