Flipping to Fractionals at the beach?

[L Craig]

I would like to solicit feedback from both consumers and the pros on the feasibiltiy of buying a nice house near the beach near retail (I'm thinking NJ), then flipping it as quarter-share fractional interests at a premium.

My research indicates that fractional interests, when done right, can demand a premium over market value of anywhere from 10-40%. For example, if I purchased a house for $800,000, then remarketed it as 4 (four) fractional ownership interests at $250,000. Each buyer would receive 10-12 weeks of usage and a deed to their 25% share of the property. I would gross $200,000 before other costs.

I believe the demand is there to get ownership of a beach house for $250k; especially since conventional financing is now available and beach houses are only used for 3-5 weeks a year at most. I would argue that the premium is valid due to the value I added to the property by getting the legal structure and agreements in place, then finding like-minded buyers.

I'm looking for people to poke holes in my logic. I have solicited feedback before, but now the summer is here. Please chime in!