This structure was started during the 1990s, in which the maximum number of investors can be up to 35. The benefits of this structure are that every tenant-in-common possesses a stronger buying power with fewer costs. Every member shares responsibilities for a property owned by the partnership.
Delaware Statutory Trusts (DSTs)
Every investor in this structure owns a beneficial interest. Due to lower minimum investment thresholds and ability to secure financing, DSTs have become a preferred choice of investors in the recent times. There no upper limit of investors imposed by IRS.
How is it different from timeshares?
The differences between timeshares and fractional ownership are based on rights, responsibilities, and motives of investment of the investors. The buyers of timeshare properties are encouraged by vacation exchange opportunities. The individuals interested in fractional ownership are interested in investment purpose or for deferring the taxes. Well, various individuals are also taking interest due to the availability of vacation homes.
FAI Exchange, a Massachusetts-based company, also supports its clients by helping them invest in DST properties. This form of investment also allows the investors defer the capital gains taxes levied on them after selling their property