What is fractional ownership in real estate, and how do I make money?

As per my knowledge and having purchased a fractional ownership in a land via one of the company’s called RealX ( RealX ), all I can explain is as follows -

Fractional ownership in real estate is a model where multiple individuals collectively own a share of a property, allowing them to enjoy the benefits of ownership without shouldering the full financial burden. Each owner holds a percentage stake, typically represented by shares, in the property.

Here's how you can make money through fractional ownership in real estate:

1. Rental Income: If the property is rented out, you receive a portion of the rental income proportionate to your ownership share.

2. Appreciation: As the property value increases over time, your ownership stake's value also grows. When you decide to sell your share, you can potentially realize a profit.

3. Property Sale: If the property is sold, you'll receive a portion of the proceeds based on your ownership percentage.

4. Diversification: By investing in fractional ownership, you can spread your investments across multiple properties, reducing risk and potentially increasing overall returns.

5. Lower Entry Costs: Fractional ownership allows you to invest in higher-value properties with a smaller initial investment, expanding your real estate portfolio.

6. Professional Management: Property management tasks are typically handled by a dedicated team, relieving you of the responsibilities associated with being a sole owner.

It's important to note that while fractional ownership offers opportunities for profit, it also comes with its own set of considerations and potential challenges. You should carefully review the terms of the fractional ownership agreement, understand the responsibilities and rights of co-owners, and be aware of any exit restrictions before making an investment. Consulting with a financial advisor or real estate professional can also provide valuable insights. You can take help from people at RealX ( RealX ) whom I too had consulted while doing my first fractional investment in land.

It was a land deal of 29 lakhs near Pune and I had put in 2 lakhs of which I had got tokens issued by the company using blockchain.

That's it.