Something called Fractional Ownership, also known as Tenant-in-Common (TIC) is a form of having title to real property. Under this co-ownership structure, certain individuals will own an undivided fractional interest in an entire property and share in their portion of the net income, tax benefits, and appreciation. Therefore, they will receive a separate deed and title insurance for their percentage interest in the ranch properties and have the same rights as a single owner.

Fractional ownership is definitely not a new concept. Actually, it has been successfully applied to several industries, including yachts, airplanes, resort condominiums and luxurious second home real estate as well as ranch properties. Now the resort industry is entering a period of explosive growth with the consumers, and luxury fractional resort products are becoming a more significant and recognized component of this industry. According to Omni Brokerage, Inc, TIC real estate investments exceeded $4.0B in 2005. Because of this, it has become the preferred investment vehicle for real estate investors who wish to defer capital gains via a 1031 exchange and own real property without the management headaches.

Fractional ownership normally ranges from 1/4th to 1/13th shares. The affluence of the location and the length of the season determine the size of the share of the property. The vast majority of the recently completed fractional are located in the Rocky Mountain ski areas, but the concept is spreading rapidly to other popular national resort destinations in the United States, the Caribbean, and Mexico and other international vacation hot spots that are becoming popular all over the world. The actual pricing of fractional ownership shares varies greatly and can be influenced by many different market factors, including unit size, number of owners, location, amenities and available supply. Typical share prices range from $100,000 to $500,000, but can easily exceed $1.0M for high end Private Residence Clubs (PRC).

People that are Ranch Partners, LLC are bringing the fractional ownership concept to the ranch properties sector. Everyone who investigated has discovered that the price and responsibility of full ranch ownership is beyond most of our client's desires and expectations. By packaging ranches into fractional ownership, we are able to serve a significantly larger group of investors and provide a luxury resort experience, while continuing to preserve the western ranching heritage that everyone is so accustomed to. All of the ranch owners will have 4-season access to the ranch, 8 to 12 weeks of luxury accommodations and unlimited use of ranch facilities and recreational amenities which is an excellent deal.

While almost all fractional ranches have access to outstanding recreational activities that keep the buyer happy, such as hunting, fishing, hiking and horseback riding, individual ranch properties can be developed to meet a variety of ownership lifestyles. Some of the ranches may be tailored to the luxury resort owner, complete with high-end lodging accommodations, full service management, and an assortment of amenities similar to private residence clubs that everyone is familiar with. So when deciding if you want to go ranching makes sure you look at the accommodations and the price and make the wises choice.