Trouble Selling That Second Home? Don’t Agonize, Fractionalize

A Muksego, Wisconson couple fed up with the housing market are now trying to sell their vacation home north of Chicago by fractionalizing it. The 1,800-square-foot ranch which they bought in 1999 is a 1950’s era on a three-acre¬†island in¬†Little Muskego¬†Lake, pictured here. Now they want the cash out for another project so instead of letting the home languish on the market, they are selling twelve shares to nine owners, who would each pay $69,900¬† for¬†a one-twelfth share, which¬†amounts to one week per quarter.¬†The Sauers would¬†own some of the shares, and the house would be rented out on major holidays, such as Memorial Day, 4th of July week, Labor Day and New Year’s Eve, to cover the property’s expenses.

The property’s title would be held by a limited liability company, with the owners owning shares of that company, Sauer said.

Fascinating. I’m going to dig on this one. The area is very hot as a second¬† home destination for the Chicago area, and I think this is a great example of how the market will prevail during tough economic times!