What Is Fractional Ownership?
Fractional ownership is an investment structure that ensures each owner holds only a certain amount of an asset up to a certain percentage.
Fractional ownership is designed to decrease the risk to each owner. For example, in a mortgage security, fractional ownership provides that each investor will only lose a certain portion due to default, rather than the full value of the mortgage security.
- What Are Some of the Benefits of Investing in Mortgages?
- Can I Make Money from Other People's Mortgages?
- What Is a Derivative?
- What Does It Mean to Bundle Mortgages?
- What Is Leveraging?
- How Can I Leverage Other People's Money to Buy More Properties?
- What Are the Risks of Investing in Mortgages?
- What Are Tranches?