John Willis "Partnership Investment Program"

[gardening1970]

I read an ad insert in today's Atlanta Business Chronicle for John Willis Homes of Florida's Partnership Investment Program. Inventory includes homes in Magnolia Bay Club (PC), Water Color, Cypress Dunes and Santa Rosa Golf Villas. Ad disclaimer specifically states "This is not a fractional ownership program."

Do any of you know how this particular program is structured? I checked the JohnWillisHomes web site, but the info there was a repeat of the ad insert. I am familiar with typical fractional regimes, but this one says it is not fractional. How so?

Thanks in advance.

 

[Busta Hustle]

i think it is set up like love match .com...they match you up with other people who want to meet investment partners...

 

[Little Fish]

I was at the Cypress Dunes sales office a couple of months ago. Although I don't have information regarding the "Partnership" program you reference, I understand from the sales team that JW has "restructured" his company. The sales team are no longer employees of JW Homes; rather, are Coldwell Banker representatives.

Currently, there are around 12 completed homes that are available for purchase. (When I was there, it was mentioned that one of them might be going under contract.) These twelve homes have been there for 2 years with no buyers. JW has been renting the homes to lower his cost to carry. Prices on these homes have come down, but not far enough yet to move inventory. The sales folks are looking for any offers.

The community is well designed and very attractive from my perspective, but the downside is that there is no deeded beach access. I understand JW tried to get Jeb Bush involved to lobby for the building of a dune walkover, but this idea never gained traction. I believe JW offered something like $15K/mo for the right to build the walkover. (I could be wrong about that, but I believe that was the offer as explained by a sales lady who no longer works in the office.)

A partnership sounds like a gimmic to me. I'd prefer to make a low offer on one of the inventory homes. Seems simpler to me...

Little Fish

 

[SHELLY]

Here ya go: http://www.johnwillishomes.com/partnership.html

Sounds like a "fractional ownership" to me.

HOW DOES IT WORK?
Partnership Ownership is similar to any other real estate investment, except that you are only investing in a portion of the property instead of the whole property. More common are quarter shares, where you use the property one week out of every month, sharing the property with only three other owners.

BENEFITS
One of the main reasons people invest in partnerships, even when they can afford the entire investment, is that the responsibility of ownership is reduced. This makes the second home truly a vacation, as you can simply go there, and know everything is in order. The partnership owners are entitled access to all the amenities in the resort area, while being responsible for substantially less of the community dues.

WHAT ABOUT THE USE OF THE HOME?
Each of the partner?s ownership interest in the home is alloted weeks of use per year based on the percentage of ownership. Typical ownership will have thirteen weeks total use - three fixed weeks chosen each year based on priority and the additional weeks chosen from the entire pool of remaining weeks, based on your needs.

WHEN DOES A WEEK OF STAY BEGIN?
Weeks typically begin on Saturday afternoons at 4 PM or later. This allows the cleaning service to prepare for your arrival. You should plan on leaving by 10 AM the following Saturday, or work out other arrangements with your partners.

CAN I RENT OUT MY WEEKS OF OWNERSHIP?
Yes, many partners elect to rent several of the weeks to cover a good portion of the annual assessment, as long as this is a term all partners agree to.

CAN I SWAP WEEKS WITH ANOTHER OWNER?
Absolutely. Swapping and exchanging weeks is easy - just put up one or more of your weeks and pick other available weeks.
.

 

[Capricious]

"..Sounds like a "fractional ownership" to me..."



That is so analog.


Today's term in "digital ownership."


or maybe "Time Tranche"

 

[SHELLY]

"..Sounds like a "fractional ownership" to me..."

or maybe "Time Tranche"

"Time Tranche"......Love it!


.

 

[gardening1970]

I feel like I've hit the Big Time when Shelly responds to my real estate post! Wow - my genuine excitement may be an indication that I spend too much time on SoWal.com!

The ad insert uses the same jargon as the web site. It obviously smells like a fractional plan (which works very well in some cases, by the way). Just trying to figure out the distinction in why JW says it isn't. Perhaps JW solicits and assembles partners, charges a fee for this service and sells the house (primary objective) to the new partnership/LLC on a per house basis. I think under strict interpretation of FL Chapter 721, this may not be a fractional "timeshare" program.

 

[SHELLY]

I feel like I've hit the Big Time when Shelly responds to my real estate post!

....same principle as chumming the water to draw sharks.

Just trying to figure out the distinction in why JW says it isn't. Perhaps JW solicits and assembles partners, charges a fee for this service and sells the house (primary objective) to the new partnership/LLC on a per house basis. I think under strict interpretation of FL Chapter 721, this may not be a fractional "timeshare" program.

Sounds plausible....kinda similar as to how Goldman Sachs grouped subprime toxic loans together and sold them as low risk "investments" to clueless dolts.

.