Similar to other industries which have undergone dramatic changes, there are still opportunities to earn exceedingly high profits in real estate if investors and commercial entities alike choose to be innovative by developing new methodologies.

A select few investors have discovered an innovative way for fractional property owners to not only earn a viable return on their investment, but also generate annual income with that investment; all while obtaining a vacation home to which they can escape on a fairly routine basis. In short, these ?insider? investors purchase homes at discounted prices and break them into six fractions which are sold to the general public. The fractional owners are provided with eight specific weeks of usage during the year.

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Fractionalization refers to sectioning off a necessary commodity to different parties who need the use of the commodity on a time-limited basis. This model has been utilized with great success in two arenas; office space and business/private air travel. In terms of office space, it is projected that over 150,000 small business owners in the United States use some form of fractional office space. This refers to either renting out a small portion of a larger office building (as little as one defined office) full-time for the purpose of handling operations or renting out a section of an office building on a part-time basis to hold monthly meetings with partners, client conferences, etc. The fact is that since 2002, the number of companies with less than three employees and which operate, in some capacity, out of a non-home office has increased by more than 320% (?Sharing Office Space?, Inc. Magazine, November 2006); much of that growth can be attributed to fractionalization.

The other major industry to utilize fractionalization as a way to increase its consumer base and diversify its industry demographics is the business/private air travel industry. Companies like Net Jet and West Wind Jet have substantially changed the market landscape within this industry through the use of fractionalization. Unlike charter companies which charge on a per-flight basis, or the large investment of actually owning a private jet, fractionalization offers the opportunity to own an interest in a private aircraft while sharing the expenses. This has allowed affluent individuals who are tired of dealing with commercial airlines, or charter companies, to have a private jet that they can use when they need it at a fraction of the cost. In terms of businesses, fractionalization has created an opportunity for small to mid-size companies who don't have the capital resources to purchase a private jet to own one part-time. It is projected that for companies who routinely require travel of more than 1,000,000 miles per year, fractionalization can save them tens of thousands (or hundreds of thousands) of dollars over commercial or charter flights.

As it relates to innovation, the use of fractionalization in these two industries has been fairly successful over the past five years. ?Insider? real estate investors have developed a business model that makes fractionalization much more effective and profitable to the fractional real estate owner than it is in either of these other industries.

Maria Gudelis

www.FractionalRealEstateSecrets.com

www.EZFractionals.com