Fractional Real EstatE
Frac/vest
Our Process: Investing, Selling, and the Search for the Qualifying.
What is frac/vest?
frac/vest is privately owned and operated real estate firm that brings multi-million dollar investment opportunities to financial enthusiasts for a fraction of the price, while also eliminating a majority of the risk and almost all of the overhead involved in such transactions. frac/vest offers real ownership of industrial, commercial, multi-family and luxury vacation homes to investors at a fraction of the price. Typically offering 1/8th ownership, a "frac" is partial ownership, not just in the property, but in the LLC that owns the property. Each frac represents an actual ownership stake in the company that owns that property.
How do I find a frac?
fracvest.com offers online snapshots of each of our fractional investment properties. Search from multiple markets, or criteria to find the frac that best fits your portfolio. Once you've found interest in a property, simply select the "I'm interested" button and fill out the short contact form and a qualified frac/vest professional will reach out to you to discuss the exclusive details of the property.
How do I invest in a frac?
A frac/vest representative will ask you to fill out a short financial form that will determine if you are a qualifying candidate for frac ownership. Upon your approval, frac/vest will request a deposit on your investment, which will be determined based on the value of your frac, and will issue a timeline for financial reviews before closing the deal on your frac. During that time, you will be asked to sign an NDA that will then release confidential property information and financials for your review. frac/vest investors will have 10 business days to conduct their own inspections and reviews before the deal is finalized and closed. If the investor declines the offer prior to the end of the 10 business day grace period, the deposit will be fully refunded. frac/vest does its due diligence to disclose any and all records regarding the property being reviewed, but it is still the sole responsibility of the investor to conduct their own research and inspections prior to the closing of the frac.
What qualifications would an investor need to meet to buy a frac?
Investors will need to pass a thorough financial screening and meet all requirements set forth by frac/vest before moving forward with the purchase of a frac. Requirements include, but are not limited to, net worth, liquid assets, a background check, credit report and more. Schedule a no commitment call with a frac/vest representative to learn more.
What if I'm interested in selling my building as a frac?
In a process similar to qualifying to be a frac investor, property owners that are interested in selling to frac/vest for the purpose of turning their property into a fractional investment will have to meet several requirements to make it to the review process. From there, frac/vest will perform a full audit of the property to see if it meets the set requirements to be considered as a frac/vest investment. Schedule a no commitment call with a frac/vest representative to learn more.
Investing in commercial or industrial real estate properties offers several unique financial and tax benefits.
Here are ten key advantages:
Tax Deductions: Investors can deduct expenses related to property management, maintenance, insurance, and mortgage interest, lowering taxable income.
Depreciation: Commercial properties can be depreciated over a set period (typically 39 years), allowing investors to deduct a portion of the property’s value each year, reducing taxable income.
1031 Exchange: This provision allows investors to defer capital gains taxes by reinvesting proceeds from the sale of one property into another similar property.
Cash Flow: Commercial and industrial properties often provide substantial rental income, contributing to positive cash flow that can be reinvested or used for other expenses.
Appreciation Potential: These properties can appreciate in value over time, leading to significant returns on investment when sold or refinanced.
Long-term Leases: Commercial leases are often longer-term (3-10 years or more), providing stability and predictable cash flow compared to residential leases.
Higher Rental Yields: Commercial and industrial properties typically offer higher rental yields compared to residential properties, enhancing potential returns.
Leverage: Investors can use borrowed funds to finance a portion of the property purchase, increasing potential returns on equity while minimizing initial cash investment.
Inflation Protection: Rental rates for commercial properties often adjust with inflation, providing a hedge against rising costs over time.
Limited Liability: Investing through an LLC like frac/vest can protect personal assets from liabilities associated with the property, minimizing financial risk.
These benefits can make commercial and industrial real estate investing a compelling option for building wealth and achieving financial goals.
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