Fractionals offer a taste of luxury living

Gig Harbor company finds resort properties

Susan Schell

of the Gateway

Steve Lundquist doesn’t like the idea of timeshares. “Timeshares are the most grievous concept,” he said. “They promise people they can own property, but they really don’t.”

Lundquist is one of three owners of Dream Home Fractionals, LLC, in Gig Harbor. The company offers part ownership in resort properties throughout the West Coast and Hawaii. With that ownership, people get the benefits of a full resort property complete with amenities such as golf, tennis, waterfront living or skiing, depending on the location.

“This is the alternative to timeshares,” Lundquist said. “It’s the complete opposite of timeshares. The individual will have a deeded interest in a property. The deed will show that it’s legally theirs. And you don’t have blackouts. You don’t have that with a timeshare.”

Dream Home Fractionals pairs like-minded individuals together — people who want to own resort property but can’t afford to purchase the whole thing.

The company currently is focusing on resort properties in areas such as Hawaii, San Diego and Jackson Hole, Wyo. The partners, Lundquist, Sid Beers and Spencer Coray, all have different interests and ideas of what luxury living is like.

“I prefer the beach,” Lundquist said. “Sid is a mountain man who goes for snow recreation. Spencer is a golfer. We try to find resorts with the nicest amenities. People want to own these places when they go to them.”

The company searches for properties that are in “distressed situations” and buys at deep discounts, which is possible because of the slump in the economy. The properties are usually high-end condos with two to three bedrooms in the 1,500 to 1,700 square foot range and are “beautiful and very family-oriented,” Lundquist said.

Dream Home Fractionals was formed last February, but Lundquist has worked in fractionals for more than a decade.

“Most people have never heard of fractionals, but the concept has been around since the 1950s,” he said. “You can fractionalize any big-ticket item, like a yacht, a luxury car or an airplane. People figure, ‘Why buy the whole pie when all you need is a slice?’

“Families have been fractionalizing for years. But now, the people you share ownership with might be in another country.”

Unlike timeshares, which usually offer units in one-week increments, fractionals offer luxury living for about two months at a time. Since the individual co-owns the property, they can rent it out for those months, if they choose.

“In this economy, it is difficult for people to enjoy their vacations,” Lundquist said “One week isn’t long enough. Then, most resorts charge $300 to $400 a night, and with the cost of travel, it ends up being very expensive.”

With fractionals, a buyer can enjoy a longer stay and gain the benefits of property ownership at the same time.

“People want to own quality real estate,” Lundquist said. “They have become disenchanted with losses they’ve seen on their property. We’re trying to capitalize on the downturn in the economy by providing people with instant equity.

“Someone might think, ‘I’d like to own a beach house,’ and never thought they could afford it,” he added. “This gives them instant equity in a world-class property at a fraction of the cost. They can get a piece of a property for $300,000 to $400,000 that would normally sell for millions.”

A large percentage of people interested in fractionals are people nearing retirement age, or families who want to own a second house but can’t justify the cost. Corporations are also purchasing properties for their executives, Lundquist said.

Dream Homes plans to expand in the future to foreign countries, so Americans can expand their horizons. Then everyone can have a piece of the pie.

Interested in learning more about fractionals?

Call 253-265-1240 or visit www.dreamhomefractionals.com.

Reach Lifestyles Coordinator and reporter Susan Schell at 253-853-9240 or by e-mail at susan.schell@