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Press Release

Money talks at Fractional Summit USA

13th September 2011

Fractional Summit USA finance panel

Delegates at the second annual Fractional Summit USA fractional real estate conference in Miami enjoyed an enlightening, frank and educational panel discussion about both lender and developer finance.

In the current economic climate, both of these forms of lending are significantly harder to come by than in pre-recessionary times, but the conclusion of the panel, which was chaired by David Disick of The Fractional Consultant, was that there is money out there – but it is imperative that developers do everything possible to present their projects to potential lenders in as professional a manner as possible.

Disick broke the finance process down in to three stages: getting in the door, getting to the table and getting to the vault. Each phase was discussed in detail by a panel which included representatives from international finance house UBS, residential and resort financing lender CalCon Mutual, and consumer lending specialist NextStar Funding.

On the subject of developer funding, the panel agreed that:
• A specific, very detailed business plan is essential from the outset of the project
• A condensed, one-page, easy to understand summary of your business plan is also vital
• Seed capital is virtually impossible to find, growth capital however, is available
• Banks are becoming more active in the secondary market – they have capital and they need to use it

Consumer lending was also on the agenda, with the UBS representatives discussing their securities-backed financing product, via which the company will lend up to 70 per cent of the value of a client's stock portfolio to finance the purchase of a fractional ownership interest.

One of the most encouraging points to emerge from the session was how the banking industry views the typical fractional real estate buyer. Seth Rutman of UBS said he was attracted to the fractional sector by the “nature of the fractional end user”, while Joshua Erskine of CalCon Mutual said: “The fractional buyer lending profile is one of the srongest of any lending market.”

Event organiser Piers Brown said: “Securing finance is one the biggest obstacles fractional developers are facing in the current market, so we were delighted to be able to bring such an experienced panel to share their knowledge with our delegates in Miami.”


For information about sponsoring or speaking at next year's Fractional Summit USA, please contact Piers Brown at piers@fractionallife.com or +44 020 8340 7989.

Delegate feedback from Fractional Summit USA 2011

“An incredible panel of speakers, developers, consultants and owners coming together to share experiences, network and learn more about this fascinating industry. Great contracts and connections!”

Mauricio Lara, senior consultant, Red Consulting

“As someone new to the concept of Fractional ownership and a developer, the summit was extremely beneficial and the networking and information surpassed my expectations.”

Luke Vitale, developer, Playa del Carmen, Mexico

“A one stop opportunity to receive updates on industry events, innovative product concepts and connecting with fellow industry leaders. A must attend if you think or know fractional ownership is in your future.”

Jeffrey Fagan, president, FRM Resorts

“Fractional Summit USA is a personal, professional and engaging think tank of industry experts that definitely impacts your day-to-day business and bottom line.”

Kathy Hernandez, president, Kathy Hernandez & Associates

“This was world class, great value and I'll be back!”

Richard Snyder, president, The Platinum Group

About Fractional Life
From a fractional jet to fractional real estate, Fractional Life is the number one consumer lifestyle brand dedicated to growing the fractional ownership marketplace. The company has three divisions: interactive, b2b fractional conferences and consumer exhibitions.
Dates:

Fractional Life Expo, October 13 to 15 2011, ExCel London
Shared Ownership Fractional Summit Middle East North Africa, 21 November 2011, Burj Al Arab Dubai,
Fractional Summit Europe, 27-28 Feb 2012, Marriott Grosvenor Square, London

13/09/11