Get answers to common questions about buying an PropFrac Properties
PropFrac is a property fractional experience company. We help buyers find their dream properties through co-ownership. Then we manage all the details so it’s as stress-free as possible. We purchase the property, design and upgrade it, and then manage the property moving forward.
PropFrac passes all operating costs directly to the owner group–without markups. Owners can request a monthly operating cost report from our team at any time. Operating costs vary just like any property ownership expenses.
If property taxes increase, for example, then the property’s monthly operating costs would also increase.
No. Tenancy in common creates unneeded complexity and cost–especially when one owner tries to sell their share.
PropFrac property owners purchase membership interests in a property-specific LLC, and the property is deeded to the LLC. The LLC structure makes buying and selling ownership interests in the property fast, simple, and relatively inexpensive. Our LLC structure is widely used for commercial and residential real estate.
There are two types of PropFrac properties:
PropFrac Premium: Properties exclusively reserved for owners and their guests.
PropFrac Dynamic: Properties where owners can choose to use their time between personal use and renting it out.
The deed for each property is recorded in the name of a property-specific LLC. Each owner holds their ownership interest through the LLC, which provides for both privacy and liability protection.
PropFrac creates a property-specific, manager-managed limited liability company (LLC) for each property. The LLC has its own bank account and tax identification number. It also holds title to the residence. The owners hold all the ownership interests in the LLC.
Co-ownership means you and up to seven other co-owners share the legal ownership of a property. Each of you enjoys exclusive use of the property during scheduled stays throughout the year. A one-eighth share gives you 44+ nights each year in the property.
No, this is prohibited under the terms of the LLC operating agreement.
With select properties that are listed as “PropFrac Dynamic” properties, you can choose to rent out your unused nights. Learn all about how nightly rentals work in the section entitled Renting With PropFrac Dynamic.
PropFrac sets aside funds that help with any needed repairs or equipment replacements. This reserve fund is part of the owner-operating expenses. Owners can vote to use the reserve fund to add or upgrade items around the property like adding a golf cart or upgrading the theater room.
Simple, non-material changes can be updated by PropFrac on behalf of the owner group. All significant, material changes must be voted on by the owner group.
Each property is insured with a homeowners insurance policy appropriate for the use of the property. For PropFrac Dynamic properties, the homeowners insurance includes coverage for short-term rentals.
Discover how PropFrac’s fully managed LLC co-ownership model works
PropFrac is a property fractional experience company. We help buyers find their dream properties through co-ownership. Then we manage all the details so it’s as stress-free as possible. We purchase the property, design and upgrade it, and then manage the property moving forward.
Property taxes are included in the owner-operating expenses and may be tax deductible. PropFrac also provides a Schedule K-1 to each owner for U.S. federal income tax purposes.
Yes. If PropFrac isn’t providing enough value to the owner group, we can be removed or replaced after the fifth anniversary of the property’s purchase.
Yes. If you’ve purchased an ownership share in a PropFrac property within the last twelve months and decide that a different property may be better for you, PropFrac does offer a one-time option to transfer ownership to another available PropFrac property.
If a life-limited item breaks, like an appliance, the reserve fund covers repair or replacement. If an owner or a guest damages something in the property, the owner will be billed for replacing or repairing the damaged item. Properties are inspected after each use, ensuring a quality experience for all owners.
At the end of the year, you’ll receive tax forms for both the original LLC and the new LLC. Please consult your tax advisor regarding your particular tax situation.
All funds are held in a property-specific bank account, in the name of the LLC.
Owners can bring any major decision to the other owners for a vote. For example, if an owner wants to add a sauna to the pool area, the owner can call for a vote. Every share in the LLC holds one vote. The PropFrac team coordinates the voting communication and logistics.
Owners enjoy the privacy and liability protection offered by the LLC. The LLC indemnifies owners acting on behalf of the LLC in good faith and in accordance with the LLC operating agreement. Each property also has a homeowners liability insurance policy up to $1 million. Call us for more information.
There are two types of PropFrac vacation properties:
PropFrac Premium: Properties exclusively reserved for owners and their guests.
PropFrac Dynamic: Properties where owners can choose to use their time between personal use and renting it out.
Not necessarily, but many owners do wish to meet their co-owners. PropFrac ensures the co-ownership process is simple enough that owners can enjoy the property without needing to be familiar with the other owners.
If you are interested in transferring to another property after the first twelve months, you’ll need to sell your share and then purchase a new share in the property of your choice.
Discover how you can make your property available for rent with PropFrac Dynamic
There are two main differences between PropFrac Dynamic designated properties and PropFrac Premium designated properties: (1) Who gets to stay in the property and (2) How time in the property divvied up.
With PropFrac Premium, properties are exclusive to just their co-owners and invited guests. Scheduling is more fluid with co-owners able to hold up to six planned stays at a time. PropFrac Premium co-owners can book stays as long as fourteen days and from two years in advance down to the day before.
With PropFrac Dynamic, owners can choose to stay personally in the property AND rent out their unused nights. Owners draft 6+ weeks per year and then designate how they want to use their time. As an owner, you can swap weeks with other owners.
PropFrac Premium is ideal for people who’ve always wanted to own a property to share just with friends and family, at a price that makes sense. PropFrac Dynamic is perfect for people who want to own a property that they can use personally, but can also rent out the nights they don’t use to help offset costs.
With PropFrac Dynamic properties, you can use your weeks for whatever mix of personal or rental use you desire. Because usage preferences may change over time, you can adjust your usage pattern at any time to fit your lifestyle.
We would be happy to put you in touch with our sister company, PropFrac Stays, to answer any questions regarding the rental of the property. You may also consult with any third-party rental agent of your choice.
Please consult your tax advisor regarding your particular tax situation.
Not at this time.
No. With PropFrac Dynamic, owners draft (and swap) specific weeks for a given year and choose to rent those weeks or use the property personally. When you choose to rent your weeks (or any portion of your week), the rental revenue from those nights is attributed to you and none of the other co-owners have any claim to it.
PropFrac co-owners are responsible for sharing all regular operating costs like insurance, utilities, and property taxes. In addition, owners are responsible to cover operation management fees for the property.
Yes. However, if it’s less than 60 days before the check-in date of either week to be swapped, swaps will require explicit confirmation by both owners in the swap.
Weeks are delineated into 7-day (1-week) periods, beginning on Tuesday and ending on Tuesday. This structure maximizes the potential for renting out properties for high-demand weekends, which often extend into Mondays (e.g., President’s Day, MLK Day, Memorial Day, Labor Day, etc).
PropFrac Dynamic caters to individuals and families seeking to acquire their ideal vacation home and utilize it as a short-term rental to offset ownership costs.
PropFrac secures homeowners insurance tailored to the property’s usage. For PropFrac Dynamic properties, coverage includes short-term rental scenarios.
PropFrac Dynamic owners can designate their desired weeks using PropFrac’s process, allowing easy swapping of dates with other owners. Owners can specify personal use and rental nights through PropFrac’s mobile app.
PropFrac or its affiliate manages maintenance and cleaning for all PropFrac Dynamic, ensuring consistency and quality of care.
Owners are responsible for damages occurring during personal or rental use. Ember assists in facilitating compensation from renters, if necessary.
PropFrac Dynamic properties feature elegant design and high-quality furnishings suitable for both personal use and short-term rentals.
PropFrac creates a property-specific, manager-managed limited liability company (LLC) for each PropFrac Dynamic property. The LLC has its own bank account and tax identification number. It also holds title to the residence. The owners hold all the ownership interests in the LLC.
Before nights are made available for rent, PropFrac Owners draft their weeks for a given year (or partial year if the property is just being made available). Each 1/8th Ownership entitles its owner to six weeks throughout the year.
Yes, you may use any third-party rental agent or PropFrac Stays to market and rent your nights. As a third option, you may choose not to engage any third-party rental agent and instead personally rent out your nights. For the protection of all co-owners, any owner or rental agent must be licensed and insured to market and rent the property.
Yes, although offers and availability vary by geography.
The goal is to protect the affected owners in the event of property damage that displaces their stay plans or ability to rent the property. The owner responsible for the damage must cover the costs of repairs, as well as lodging costs for the affected owner’s stay and any forgone profit if the displaced owner already had a confirmed rental reservation for that week.
Yes. Rental revenue is offset against your portion of any operating or other costs of the property and any management fees. Any excess rental revenue is distributed to you quarterly.
Yes. When an owner chooses to sell his or her share(s), the acquiring owner must agree to honor ANY existing nightly rental reservations.
Yes. When an owner chooses to sell his or her share(s), the acquiring owner must agree to honor ANY existing nightly rental reservations.
Owners select their weeks annually in October for the upcoming calendar year, starting fifteen months from the drafting date. For example, in October 2023, owners will draft weeks for calendar year 2025. This allows ample time for listing nights on short-term rental platforms like AirBnB and VRBO.
Each PropFrac Dynamic is situated in an area zoned by local municipalities for short-term rentals, ensuring compliance with local regulations.
Owners draft their weeks annually, ensuring fair access to desirable dates. Each 1/8th share entitles its owner to six weeks throughout the year, with an additional week provided every other year.
Participation in rental programs is voluntary. Owners can choose to use all, some, or none of their nights for short-term rental purposes.
Owners pay monthly operating costs, covering items such as property tax, insurance, utilities, and maintenance.
Owners can swap weeks with other owners, facilitating flexibility and accommodation of schedule changes. PropFrac’s algorithm ensures fairness in the swapping process.
Owners can rent out a portion of their designated week and use the property personally for the remainder, provided adequate time for cleaning between stays.
Learn how scheduling works with PropFrac’s mobile app
PropFrac is a property fractional experience company. We help buyers find their dream properties through co-ownership. Then we manage all the details so it’s as stress-free as possible. We purchase the property, design and upgrade it, and then manage the property moving forward.
Each 1/8th share in PropFrac Premium homes allows six planned stays, bookable from eight days to 24 months in advance. For PropFrac Dynamic, each owner drafts 6+ weeks annually, deciding between personal use and rental. Each usage period is termed a “planned stay.”
The PropFrac app is your scheduling hub for your vacation home stays. Log in, view the calendar, and receive instant confirmation for your scheduled stays.
PropFrac Premium allows modifications or extensions up to 30 days before arrival. With PropFrac Dynamic, swaps are possible if there’s no rental reservation. Confirmation is required within 60 days.
For PropFrac Premium, additional nights beyond the annual allotment incur a modest fee. PropFrac Dynamic owners can get more time by swapping weeks.
PropFrac Premium guarantees a seven-night stay during peak travel periods. PropFrac Dynamic owners have equitable access to popular periods through PropFrac App.
No fixed weeks exist for either PropFrac Premium or PropFrac Dynamic properties. Owners schedule their stays through the PropFrac app for maximum flexibility.
If your schedule unexpectedly opens up and you desire a spontaneous trip to your PropFrac property, last-minute stays are for you. You can schedule a last-minute stay 30 days before arrival, not counting against your planned stays. With PropFrac Dynamic, you can swap weeks last minute or rent out another owner’s home at a reduced rate.
PropFrac ensures the calendar isn’t monopolized. PropFrac Premium owners can hold up to six planned stays at a time, with at least half the calendar available. PropFrac Dynamic owners draft their weeks annually, ensuring equitable access to desirable dates.
PropFrac Premium owners can book consecutive nights, with a required gap equal to the duration of their stay before the next reservation. PropFrac Dynamic owners can draft back-to-back weeks or swap with adjacent owners.
PropFrac Premium allows holiday stays with a three-night minimum, ensuring equitable access among owners. PropFrac Dynamic owners can draft holiday weeks, typically securing at least one per year.
Your property concierge resolves scheduling conflicts, handles maintenance, and ensures the home is ready for your stay.
Typically, arrival is at 4 p.m., departure at 11 a.m. Adjustments are possible with prior arrangement.
Get answers to general questions about PropFrac and co-ownership
PropFrac is a property fractional experience company. We help buyers find their dream properties through co-ownership. Then we manage all the details so it’s as stress-free as possible. We purchase the property, design and upgrade it, and then manage the property moving forward.
Yes, you can own shares in multiple PropFrac properties, creating a diverse vacation portfolio. Each one-eighth ownership share grants you 44+ nights per year, easily managed through our PropFrac app.
Select properties designated as “PropFrac Dynamic” allow owners to rent out unused nights. Learn more in the Renting With PropFrac Dynamic section.
A dedicated property concierge manages routine maintenance and repairs through local professionals, ensuring your home is always in top condition.
Potential co-owners undergo thorough evaluation, including background and credit checks, to ensure compatibility with our owner code of conduct.
The closing process resembles a typical real estate transaction, with streamlined documents and the possibility of closing in as little as 24 hours.
PropFrac owners adhere to local zoning ordinances. Only properties in short-term rental zones may be rented out nightly, ensuring compliance with regulations.
PropFrac Premium properties are exclusive to co-owners and invited guests, allowing up to six planned stays at a time. Co-owners can stay up to fourteen days, with bookings possible up to two years in advance.
PropFrac Dynamic homes offer co-owners the option to stay personally or rent out their unused nights. Owners draft 6+ weeks annually and can swap weeks with others.
Each home is insured appropriately for its use. PropFrac Dynamicproperties include coverage for short-term rentals.
No, PropFrac offers real ownership, unlike timeshares that typically provide only usage rights. You own a share of the property, enjoying exclusive ownership experiences.
You can sell your ownership interest at any time. PropFrac facilitates the process, and properties appreciate in value like other real estate properties.
You can purchase multiple shares, up to all eight, in a PropFrac property, granting you more usage time in the property.
Co-ownership means sharing legal ownership of a property with up to seven other co-owners, each enjoying exclusive stays throughout the year.
Get details about selling your property to PropFrac
PropFrac is a property experience company specializing in co-ownership. We assist buyers in finding their ideal vacation homes and manage all aspects of property ownership for a stress-free experience.
PropFrac re-titles your home under a property-specific LLC. You retain ownership of a portion of the home, with the remainder sold to PropFrac buyers. This allows you to monetize your property’s value while enjoying the benefits of a fully managed property.
The time to sell depends on market conditions and the property. Contact us to assess potential timelines.
You retain any value appreciation in your ownership interest. Neither PropFrac nor its financing partners retain ownership. When you sell your share and pay off your loan, you keep the appreciated value. PropFrac charges a three percent commission as the listing agent, with no additional closing costs.
Our design team evaluates your home’s furnishings. If they meet our standards, we’ll purchase them from you. Otherwise, we’ll furnish and decorate the home after closing.
If you’re not using your property often or want to reduce maintenance costs, selling a portion to PropFrac provides liquidity while retaining ownership and usage rights.
Once all ownership interests are sold (or after 12 months), you can resell your share at any time. PropFrac facilitates the process, acting as your agent in listing and selling your share.
PropFrac is a property experience company specializing in co-ownership. We assist buyers in finding their ideal vacation homes and manage all aspects of property ownership for a stress-free experience.
PropFrac offers a quick and easy approval process. A dedicated finance coordinator assists you in gathering necessary documentation such as identification, pay stubs, tax returns, and bank statements. Approval is typically finalized within one to two business days after a credit report is pulled.
You, as an owner, retain any increase in the value of your ownership interest. Neither PropFrac nor its financing partners retain ownership in the home or your share. Upon selling your share, you pay a three percent commission to PropFrac as the listing agent and a three percent commission to the buyer’s agent.
If a co-owner defaults on payments, PropFrac may step in as the guarantor of the loan and cover the payments and any delinquent operating expenses. PropFrac has the right to resell the defaulting co-owner’s share to a new qualified owner.
The loan is between the property-specific LLC and PropFrac’s banking partners. Co-owners finance directly from the LLC and enter into a financing agreement with the LLC.
Yes, financing options are available for PropFrac Dynamic shares, subject to offers and availability by region.
Payments, including financing payments and operating expenses, are automatically deducted monthly via ACH, Visa, MC or AMEX in a single transaction for your convenience and security.
Buyers can cover their co-ownership costs through various methods:
Cash Financing through PropFrac’s banking partners
Home equity line of credit (HELOC)
Personal line of credit
To protect all co-owners, neither the property nor the share may be encumbered by debt outside of financing arranged by PropFrac on behalf of the LLC.
There is no prepayment penalty for buyers who finance through PropFrac’s banking partners. However, there is a one percent origination fee for those who choose this financing option.
PropFrac partners with select lenders to offer competitive interest-only financing for qualified buyers. The loan is backed by your ownership interest in the home, and we handle all details for a quicker closing than traditional mortgages.
In an unlikely event of multiple defaults, PropFrac may cover payments until the defaulting owners can cure or be replaced. If necessary, PropFrac or the lending bank may foreclose on the property to recoup losses, with efforts made to place owners in good standing into comparable homes.
At PropFrac, we prioritize fostering positive connections within our communities. Here’s what you can expect if an PropFrac property is being sold in your neighborhood:
You can anticipate having respectful and courteous neighbors who take pride in their homeownership. Each PropFrac owner agrees to a common-sense code of conduct, ensuring that the neighborhood maintains its desired atmosphere.
The number of homeowners varies based on the specific property, ranging from two to eight owners. However, only one owner occupies the property at a given time, ensuring a harmonious living environment.
Co-ownership involves multiple individuals sharing legal ownership of a property. Each co-owner enjoys exclusive use of the property during scheduled stays throughout the year. Typically, a one-eighth share provides 44+ nights per year using the property.
PropFrac owners adhere to all local zoning ordinances. Homes located in short-term rental zones may be utilized for nightly rentals.
Conversely, homes not zoned for nightly rental purposes strictly prohibit such rentals, ensuring that only owners and their guests have access to the property.
PropFrac is committed to maintaining a positive relationship with neighbors and upholding the integrity of the community. Should you have any further questions or concerns, feel free to reach out to us directly.
At PropFrac, we understand that pets are important members of the family. Here’s what you need to know about our pet policies at PropFrac homes:
PropFrac offers both pet-friendly and non-pet friendly homes as outlined in each home listing. In pet-friendly homes, owners can bring up to two dogs onto the property, with each dog weighing no more than 80 pounds. No other animals are allowed except certified service animals. Owners bringing dogs must register them upon booking and must use the professional cleaning option with their stay.
Pet-Friendly Homes: In pet-friendly homes, owners can bring up to two dogs onto the property, provided each dog weighs no more than 80 pounds. No other animals are allowed except certified assistance animals. Owners must register their dogs upon booking and use the professional cleaning option with their stay. Owners are responsible for any pet-related damage or expenses incurred during their stay.
If evidence of unpermitted pets is found in the Ember home or on the property, the owner will be fined $2,500 in addition to any associated damages.
Non-Pet Homes: Homes where pets are not allowed strictly prohibit pets or animals of any kind, except for certified service animals under the Americans with Disability Act (ADA). Emotional support animals, comfort animals, and therapy dogs are not considered service animals under the ADA. Owners must register permitted service animals upon booking and complete a pet questionnaire. Owners are responsible for any damages caused by their permitted service animals.
Similar fines apply for unpermitted pets found in non-pet homes.
At PropFrac, we strive to provide a comfortable and accommodating experience for all our guests, including those with furry companions.
Please adhere to our pet policies to ensure a pleasant stay for everyone involved.
Partnering with PropFrac as a Buyer Agent
At PropFrac, we value partnerships with real estate agents like you who help clients find their dream vacation homes.
Here’s what you need to know about partnering with us:
We understand that communication is key. You can choose the level of involvement you prefer in the transaction process. Whether you want to be fully engaged or prefer a simple handoff, we accommodate your preferences.
Commissions are calculated based on the share price. If you bring more than one buyer, you’ll receive a commission for each buyer you bring.
Co-ownership at PropFrac means sharing legal ownership of a property with up to seven other co-owners. Each owner enjoys exclusive use of the home during scheduled stays throughout the year.
Commissions are paid on the day the share sells, which can happen in as little as 24 hours from the introduction. This expedited process is made possible by our convenient LLC structure and quick sales process.
Partnering with PropFrac provides a seamless experience for you and your clients, ensuring they find their ideal property while you earn a commission hassle-free.
While the paperwork and process may resemble a typical whole home sale, there’s one significant difference: you receive a quick and easy commission, and PropFrac handles all the details.
Yes, PropFrac pays a standard three percent buyer agent commission to real estate agents.
If you have a buyer interested in PropFrac, they can contact us directly, or you can schedule an in-person or virtual tour on their behalf. Regardless of the approach, you’ll receive the full three percent commission at closing, and PropFrac handles all aspects of the sale.
Partnering with PropFrac as a Seller Agent
If you have a listing that you think would be a great fit for PropFrac, we’re eager to hear about it. Here’s how you can list it with us:
Simply send the listing to us via our contact page. If the property aligns with our criteria and standards, we’ll reach out to you promptly.
Co-ownership at PropFrac involves sharing legal ownership of a vacation home property with up to seven other co-owners. Each owner enjoys exclusive use of the home during scheduled stays throughout the year.
Listing your client’s home with PropFrac offers them the opportunity to continue enjoying their property while also receiving liquidity on the sale. Co-ownership with PropFrac provides a worry-free ownership experience, making it an attractive option for clients who may not be using their home frequently or wish to reduce maintenance costs.
We offer a competitive two and one-half percent commission to seller agents for homes sold through PropFrac.
PropFrac selects properties based on various factors, including location, size, amenities, build quality, and other important characteristics. We ensure that each PropFrac listing meets our high standards to provide buyers with an exceptional ownership experience.
By making the introduction to PropFrac, you’ll earn a two and one-half percent seller agent commission on the sale, and we handle all aspects of the transaction.
Partnering with PropFrac presents an opportunity for seller agents to expand their network and earn commissions while providing clients with a convenient and lucrative option for selling their vacation homes.
Absolutely. When you invest in a PropFrac property, you gain genuine ownership. You acquire a share, beginning at 1/8, in a dedicated limited company associated with the property. Our residences are meticulously managed and custom-tailored for shared ownership.
Despite Brexit, individuals from the UK and other non-EU nations can seamlessly participate in co-owning a PropFrac property in Spain via our efficient SL (sociedad limitada) framework, akin to a limited company. We establish an SL specifically for the property, enabling buyers to acquire ownership shares without the need for visas or residency, only requiring an NIE document (tax identification number). All local taxes and property operational costs are managed and settled through the SL, overseen by PropFrac. Co-owners within the PropFrac structure retain the flexibility to sell their ownership shares at any point, contingent upon the sale of other ownership stakes within the property.
You can conveniently schedule your time through the PropFrac app, integrated with our TimeSync scheduling system. This intuitive platform ensures equitable access for all owners, taking into account your ownership share.
Unlike a conventional timeshare, which typically offers only a contractual right to use a property, PropFrac ownership grants you a tangible stake in a property asset, with its value tied to the local market. Enjoy flexibility in scheduling, along with the advantage of belonging to a small, exclusive owner group. With purchase prices and ongoing expenses significantly lower than those of whole-home ownership, PropFrac eliminates the burdens associated with traditional property ownership, such as time-consuming maintenance tasks, ensuring you can fully indulge in your well-deserved getaway.
As a PropFrac owner, you’ll directly contribute to home operating expenses, including property management, maintenance, taxes, and repairs, with full transparency. These costs are shared proportionally among owners. Additionally, there’s an additional monthly management fee, encompassing oversight of the limited company, continual owner assistance, and cutting-edge technology aimed at enhancing your ownership journey.
Should all other shares in your property be sold, you have the freedom to sell your ownership stake at any time, with the added benefit of setting your desired sale price. We maintain an extensive network of potential buyers, and your property will be prominently featured on PropFrac’s platform, as well as on other reputable websites and across various marketing channels to ensure maximum exposure.