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robatumd · 09-02-2020, 08:01 AM

Hello,

My wife and I are considering purchasing a new or used 25-27ft AS but are realizing we won’t use it much more than 4-6 weeks a year.

I had a thought about a fractional ownership model where 2 like minded families go in on a purchase together. Divide the time at the beginning of the year and then split all the expenses.

Has anyone encountered something like this? Obviously a lot would go into the decision for both sides and a contract/LLC may need to be executed in order to make sure it was fair for everyone.

P.S.- if you’re in the mid-Atlantic area and want to have a conversation...shoot me a PM.....

tbrowne · 09-11-2020, 06:41 PM

I haven't encountered it nor even heard of anyone doing that. I doubt many would want to get involved that kind of sharing. There are just too many ways to lose on the deal. Your best bet would be to consider renting an RV for limited use, especially if you have to pay to store the unit when not in use. Good luck with it.

overlander63 · 09-11-2020, 07:30 PM

This has "Bad Idea" written all over it.

There are more ways it could go wrong than I could ever put in a single post, starting with damage in an accident, to improper care and maintenance, to damage or wear through use.
The only thing I could possibly think would be a plus is splitting the initial cost of purchase, but that would cause all kinds of headaches, as well.

Belegedhel · 09-11-2020, 07:46 PM

Welcome to the Forums!

Back 25 years ago, when I was a young, single guy with young, single peers, we thought it would be a good idea to all go in together and buy a single-engine airplane with the same thought in mind (we each could use it to get hours toward our license, and when we weren't using it, we could lease it out, etc., etc.). It went the way of all good ideas when the devil met the details....

Similarly, my brother-in-law tried to get me to participate in a group-buy of a pressure washer. That would have been a relatively cheap mistake, but a mistake nonetheless.

It is really rare that you meet anyone who has a time-share condo and thinks they are getting a good deal, similar concept.

So, I'm not saying that it can't work, just that you wouldn't want to do it with just anyone, and there is the old adage that you don't do business with friends and family, and this is business...

good luck!

kb0zke · 09-11-2020, 08:35 PM

I would have to agree with all of the above. Yes, you could make it work, but you would spend quite a bit on attorney fees to get it all set up.

Consider this scenario: Two of you go together and buy the Airstream. Each of you has your own suitable tow vehicle. The arrangement is that you get exclusive use of the Airstream from January through the end of June, and your partner gets it for July through December. Each of you gets some summer and winter time, and one gets spring, the other fall. Sounds fair, right? 1 July is a Saturday, which makes Independence Day Tuesday. Monday is going to be a day off for most places, as everyone will want to take the day off anyway. You aren't going to get to use the Airstream the last few days of June, even if you have the time off, because your partner wants it on the 1st and you have to get it clean. Your partner won't have the same issue at the end of December (Christmas) as most likely the Airstream will be winterized and in storage then.

Partnerships like this sometimes work with an airplane because there are (usually) several people in the club, and the club members rent the plane when they want to use it. Yes, the rental may be less than what the FBO would charge, because the club isn't interested in making a profit. The airplane is also rarely gone for more than a day or two, and most of the time it is gone only for a few hours at a time.

If you are only going to use the Airstream a few weeks a year, renting one for those times makes more sense. Just remember that a little bird will land on your shoulder and whisper in your ear that if you owned it you could go out more often....

You have been warned! <grin>

JonDNC · 09-12-2020, 01:56 AM

This concept has been done many times with boats. I’ve been in two one on my first sailboat the other on a small center console.

Couple of key sticking points.

1. Agreement on maintaining and upgrades. All parties need to be of like mind.

2. Agreement up front on calendar especially for blocks of time. On the sailboat which we took vacations on this meant weekend were preagreed annually on who had what holiday weekend changed yearly. Also define how many longer 2 week or more blocks each partner gets. This is the hardest area.

3. How does the partnership break up. I.e. a partner wants out what are the rules. This is tricky as it could force sale of the asset if one partner doesn’t want the whole thing.

It can work mine did but I’ve seen these ruin friendships.

lsbrodsky · 09-12-2020, 04:05 AM

I think all of the above comments are good, but I would expand a bit on maintenance. These trailers require a considerable amount of maintenance, some of which is easily performed by a handy person, some of which requires skills and facilities(a dealer). A careless or not fully knowledgeable user can break some expensive or not-so-expensive things. Even experienced owners pull some bonehead stunts(as me how I know). I cannot think of any truly fair way to share the maintenance costs. A simple even sharing of all costs could result in a lot of silent and/or vocal finger pointing for blame.
Larry

robatumd · 09-12-2020, 05:55 AM

Appreciate the comments and thoughts. I’m not entirely surprised by the sentiments and agree this would be a risky proposition.

I can’t justify a 6 figure purchase to be used a few times a year so I think renting is the way to go for us. Maybe once all the new RV’ers decide to sell in a few years I’ll be able to find a deal to help make it more palatable.

ROBERT CROSS · 09-12-2020, 06:03 AM

"Cloudsplitter" is already fractionally owned...I own the outside and everything that breaks and SWMBO owns the rest.🥴

Bob
🇺🇸

Ol Bob · 09-12-2020, 07:15 AM

Danger Will Robinson...Danger! Below are some examples of your sharing concept.
I own multiple Airstreams. I "loan" them to my adult children. Some have appropriate TVs and some borrow the wife's car.
Inevitably I get the call..."Dad...I broke this part; Dad... this part fell off; Dad... this doesn't work cause I twisted it off so what do I do now?"
At the end of the day, be prepared to live with the outcome of more damage or a higher level of wear & tear thru others use. I am reconciled to this fact.

Suggest that you just bite the bullet and rent. Less aggravation.

turk123 · 09-12-2020, 07:21 AM

When I was young and single (and a little bit stupid), my cousin and I bought a boat together. Not much of an investment, but it required some work and care. Guess who got stuck with all the work?

One time soon after we needed to get the motor worked on so my cousin said go ahead and take it in and I will pay 1/2. He did pay half. I had to make all of the arrangements, tow the boat to the shop and pick it up and put it in the water when it was done. The very first weekend after the repair I went to the dock to take the boat out, and it was gone. All weekend!

I told him I wanted to sell the boat and buy a pontoon boat. He said great! I can sure see me out there on the water fishing in that. I bought it myself and was able to use it every weekend.

nvestysly · 09-12-2020, 08:33 AM

Quote:

Originally Posted by robatumd

Hello,

My wife and I are considering purchasing a new or used 25-27ft AS but are realizing we won’t use it much more than 4-6 weeks a year.

I had a thought about a fractional ownership model where 2 like minded families go in on a purchase together. Divide the time at the beginning of the year and then split all the expenses.

Has anyone encountered something like this? Obviously a lot would go into the decision for both sides and a contract/LLC may need to be executed in order to make sure it was fair for everyone.

P.S.- if you’re in the mid-Atlantic area and want to have a conversation...shoot me a PM.....

Quote:

Originally Posted by robatumd

Appreciate the comments and thoughts. I’m not entirely surprised by the sentiments and agree this would be a risky proposition.

I can’t justify a 6 figure purchase to be used a few times a year so I think renting is the way to go for us. Maybe once all the new RV’ers decide to sell in a few years I’ll be able to find a deal to help make it more palatable.

Sounds like renting may be the way to go. With Outdoorsy and similar online modes of finding RVs for rent it may be more cost effective and less headache. It will also give you an opportunity to see if RVing is for you - it's not for everyone.

I suspect you're right on the potential plethora of RVs that will find their way to the market in a year or two or three.

kscherzi · 09-12-2020, 10:06 AM

A friend of mine has fractional ownership of an airplane. Was fine for awhile but turned into a nightmare. He's been trying to sell his half but can't because the other owner keeps torpedoing potential buyers with bad attitude and unreasonable demands. His partner also can't fly due to a recent heart attack but refuses to sell his half and refuses to pay for the annual, so now the airplane is unflyable. Still the rent and insurance bills keep coming...

Mr._D · 01-04-2021, 02:51 PM

If I'm only using something 4-6 weeks a year I will rent it.

InsideOut · 01-04-2021, 05:37 PM

Quote:

Originally Posted by robatumd

I can’t justify a 6 figure purchase to be used a few times a year so I think renting is the way to go for us. Maybe once all the new RV’ers decide to sell in a few years I’ll be able to find a deal to help make it more palatable.

Quote:

Originally Posted by Mr._D

If I'm only using something 4-6 weeks a year I will rent it.

Or buy a used one now - that way you can dial in a price you are comfortable with.

Shari

Goin camping · 01-04-2021, 07:52 PM

If you treat it like a cold hardhearted business renting may be the way to go. Then agin buying used takes it down to mid five digits. Browse through the classifieds here to get an idea.

Here is the problem most of us face. We get the thing and then it takes over. We are always fixing, improving decorating and camping.

I suspect if you get one. You will camp more than you plan.

I'm a hermit so I go hide in the desert but I also go to Airstream rallies just because I have so much fun.

It turns into a "lifestyle."

Best to you.

Shiny16 · 01-04-2021, 09:08 PM

Airplanes can usually be fixed relatively quick compared to some long waits for an Airstream service appointment. Depending on how you divide the usage one party could find the Airstream out of service for good portion of their share. Access to a good RV repair guy would be key.
Several guys mentioned airplanes and bad experiences. I know many who have had excellent setups sharing airplanes along with a few bad ones. I would consider several partners as compared to just one. That would keep your costs lower and lesson an emotional attachment to the Airstream.
Problems? Definitely but nothing that would make it impossible.

Shiny16 · 01-04-2021, 09:23 PM

If you do consider this definitely look at how most groups share an airplane by forming a club. Members pay an hourly rate for the airplane. For the Airstream it would probably be a daily rate rather then you have it this week and I have it next week. Nobody would want to pay a daily rate if they have no intention of using it. So it makes it available. The money goes to maintaining the unit. This also means whoever is using it the most pays the most.
The biggest issue is who gets first dibs on scheduling. Like a poster mentioned this is not as much of an issue for an airplane as it’s generally only used for a few hours at a time.

Gene · 01-04-2021, 09:56 PM

I used to have a professional where I had to think of everything that may go wrong and then write a contract with clear language to make sure all the parties knew what their responsibilities were. Given that no one can think of everything that may happen and if you drafted that contract it would be millions of pages long, I always knew the parties and how they handled conflict, trust and planning would make or break the deal.

Sure it can be done and a good lawyer can write a good contract. It may require a separate entity to be set up to own the trailer and then the parties all buy in. But if the parties aren’t good friends and already know how to settle conflict on their own, I’m not sure any contract is good enough. On the other hand, I can think of friends with whom I could make such a deal without a contract and know it would work. It is the people. The contract is really to clarify how to do it. When you have any doubt, get a contract.