Ravens_Shadow
THE TRUTH IS OUT THERE
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I've done some pretty extreme analysis on fractional ownership on:
planes, boats, islands, houses, and cars.
The reason being is the ideas of selling fractional ownership islands and cars really piqued my interest. So I called up a few CEO's who run fractional ownership companies asking how they got into it, what regulations there are etc. Funnily enough they told me everything I needed to know from A-Z. Turns out it's just not too easy because educating people on fractional ownership is rather difficult and some people just don't get the same satisfaction from fractionally owning something and then letting other people use it for the rest of the year. Not to mention time shares have ruined peoples perception on what fractional ownership really is.
Could it be a great thing? Absolutely. Are there a ton of barriers and entry requirements? Absolutely. You'll have to manage moving vehicles around the country, because odds of people living in the same city or state while owning the same car are pretty low as it stands. You'll have to target people who have lump sums of cash (forget taking payments on it, that defeats the purpose). You'll have to manage insurance claims between multiple owners and make sure they all have the same insurance provider as a group. You would probably have to form an LLC for each vehicle and list each person under the insurance, but then you have the issue of everyone living in various states so how do you get around that? What would you do if someone wants to sell their share? How will you handle a wrecked vehicle? Who is responsible for repairs? You? The person who has it at that time? Everyone? You also have to take into account that they'll throw in the lump sum, but will need to contribute each month/every few months so that repairs and servicing can be done continually. Will you pay these servicing costs? What happens if someone refuses to pay the costs? Will you repo the car from them?
And there are 200,000 other questions to be asked and contingencies to take into consideration.
I would suggest you call other fractional ownership companies and ask all the questions you have. They're out there, so pick up the phone and learn.
You stand the chance to make tons and tons and tons of money. It'll take you tens of years to get this off of the ground without the right people behind it, and even then, car ownership amongst the younger population has been going down as young guys like myself are all using Uber and public transportation. The only market I see this really working in is the exotic market. Most exotics stay in a garage 95% of the year, so split it between 3-12 people (3 month intervals or 1 month intervals). They put 20 grand and all get to have an exotic for a month out of the year, every year, forever.
planes, boats, islands, houses, and cars.
The reason being is the ideas of selling fractional ownership islands and cars really piqued my interest. So I called up a few CEO's who run fractional ownership companies asking how they got into it, what regulations there are etc. Funnily enough they told me everything I needed to know from A-Z. Turns out it's just not too easy because educating people on fractional ownership is rather difficult and some people just don't get the same satisfaction from fractionally owning something and then letting other people use it for the rest of the year. Not to mention time shares have ruined peoples perception on what fractional ownership really is.
Could it be a great thing? Absolutely. Are there a ton of barriers and entry requirements? Absolutely. You'll have to manage moving vehicles around the country, because odds of people living in the same city or state while owning the same car are pretty low as it stands. You'll have to target people who have lump sums of cash (forget taking payments on it, that defeats the purpose). You'll have to manage insurance claims between multiple owners and make sure they all have the same insurance provider as a group. You would probably have to form an LLC for each vehicle and list each person under the insurance, but then you have the issue of everyone living in various states so how do you get around that? What would you do if someone wants to sell their share? How will you handle a wrecked vehicle? Who is responsible for repairs? You? The person who has it at that time? Everyone? You also have to take into account that they'll throw in the lump sum, but will need to contribute each month/every few months so that repairs and servicing can be done continually. Will you pay these servicing costs? What happens if someone refuses to pay the costs? Will you repo the car from them?
And there are 200,000 other questions to be asked and contingencies to take into consideration.
I would suggest you call other fractional ownership companies and ask all the questions you have. They're out there, so pick up the phone and learn.
You stand the chance to make tons and tons and tons of money. It'll take you tens of years to get this off of the ground without the right people behind it, and even then, car ownership amongst the younger population has been going down as young guys like myself are all using Uber and public transportation. The only market I see this really working in is the exotic market. Most exotics stay in a garage 95% of the year, so split it between 3-12 people (3 month intervals or 1 month intervals). They put 20 grand and all get to have an exotic for a month out of the year, every year, forever.