The Best Exit Routes for CRE in Fractional Ownership

A good investment strategy is indispensable when it comes to building a good investment portfolio. Having a proper investment strategy gives investors the confidence to play with high risks at their own expense and generate high returns.

Share on facebook
Share on twitter
Share on linkedin
shutterstock 1700113075 min

An investment is only good enough as long as it gives high returns, in the context of real estate investments via fractional ownership, planning an exit route becomes very easy.  Investments don’t remain profitable forever, even a Commercial Real Estate property could lose its relevance with time and the property becomes illiquid, hence withdrawing your money is just as important as investing it in the first place.

Fractional Ownership – Advantages

Fractional ownership investments are gaining a reputation for being highly profitable and liquid investments. Their popularity is also owed to the various perks it comes with –


As commercial fractional ownership investments usually involve dealing with A-Grade properties and that too at a very small fraction of the price, they become  pocket-friendly investments as the investment management funds and risks are shared amongst all investors.


The company you invest through takes care of your investments, manages your asset and also makes sure that the company is in profits. Not just that, good fractional ownership companies such as Assetmonk also perform the due-diligence procedure beforehand so that the investor doesn’t have to bother with the investment procedure.

High returns

Investment in A grade properties gives high returns, the returns usually range between 12-21%.

Portfolio diversification

With fractional ownership, you get the ease to purchase properties anywhere in the world and at very low prices. This gives investors an opportunity to diversify their portfolio not just in an economic context but also geographically.


The Exit Strategy– Traditional real estate vs. fractional CRE property

Although real estate properties are highly appreciative and the investment profitable, exiting a real estate investment is considered difficult  because of the lengthy procedure involved in traditional investment.

Since fractional ownership basically makes the whole process much easier, here is a comparative study of how investments in commercial real estate have evolved.


Traditional CRE

CRE via Fractional ownership

Investment amounts

These require large sums of money, generally hundreds of crores, an investor might have to, either submit the large corpus or take loans from a bank.

CRE via fractional ownership doesn’t require investors to take loans or even invest a huge amount. Making the investment easier.

Exit Strategy

The first priority of an investor is to earn back the loan amount. And then generate profit.

Here an investor doesn’t have to worry about paying any loan.


An exit plan mostly involves either selling off the property or taking a new loan from the bank.


Asset Liquidity






As a commercial real estate property is not a small investment, an investor has to start planning 12 months prior to his actual exit.


Traditional commercial investments are illiquid and an investor will have to have his property in mint condition and also in demand for any investor to even consider.

In fractional ownership, on the other hand, the exit plan can be initiated today and in a maximum of 3 months, your share of the property will be sold off.


When it comes to their fractional ownership clients, Assetmonk, also holds internal sales to speed up the process.

This way the property is either sold to an existing investor or the company purchases it.



The Best Exit Route in Commercial Real Estate Via Fractional Ownership

From the above assessment, by now, you must have an idea as to why exiting fractional ownership is much easier when compared to traditional real estate. The simplest and the most efficient exit strategy in fractional ownership is to withdraw the money when you need it, when the investment has surpassed.

You might want to exit a fractional investment because the property isn’t performing well, and you wish to explore other properties, or the project has hit its peak and can dwindle any time now. In most of the cases, an investor must beware and keep their eyes open to the changing real estate trends. Coworking spaces are popular today, but they may not be ten years from now, and so when you invest in these properties, the best exit strategy could be to understand what’s new and in demand.

You can easily auction your share or portion of the property or transfer it to another fractional owner via your investor portal, and since the amount is in some lakhs, it will only take a couple of months for you to get sell it off.

Fractional Property Ownership in India

Fractional ownership is new to India, this means even if fractional platforms offer highly liquid cost-efficient deals, many investors will be wary of going forward with these investments.

As more and more MNCs move to India, we expect the prices and demand for commercial real estate to go up, now as fractional ownership gains experience of the Indian landscape and investors, the whole CRE investment via fractional ownership could expect a boom by 2030.

We can see instances of it in cities like Bangalore, Chennai and Hyderabad already. The customer first policies that we have incorporated at Assetmonk have attracted a lot of clients, not just that, we also aim at providing A-Grade, High-end investment deals to all investors at an IRR of up to 21%. Contact us in case of any queries. 

Best Exit Routes for CRE in Fractional Ownership FAQ'S

In CRE fractional ownership is when multiple investors pool their assets to purchase a commercial property. This could be a hotel, office building etc.

Fractional ownership deals for CRE are usually listed in FOPs (Fractional ownership platforms) visit their pages to find good deals. 

You can also visit the Assetmonk website to get an understanding of what the deals might look like.

Related Articles

istockphoto 1312767508 612x612 1

What is National Securities Depository Limited (NSDL)

NSDL or National Securities Depository Limited is a financial institution that was established to keep securities like shares, bonds, etc in the shape of non-physical or physical certifications, that is in demat format. The securities are maintained in deposit accounts, which are similar to funds in bank accounts. It allows for quick securities transfer because ownership gets transferred merely by ledger entries. This is frequently done digitally, saving the extra time required in the previous practice of exchanging physical certificates once a deal was concluded. India’s capital market, which has been around for almost a century, has always been quite active. But, due to settlements that are based on paper, it had significant flaws such as poor delivery, prolonged transference execution, and so on.  To address these concerns, the Depositories Act 1996 was enacted and went into effect on Sept 20, 1995. This legislation mandated the Security Depositories establishment in India to manage securities.  Security is a financial asset that…

Read more
istockphoto 1176996544 612x612 1

Step-by-Step Process for Income Tax Login

Income Tax Login step-by-step process? To finish the E-filing of IT Returns, you must first successfully finish the registration procedure and connect to the IT E-filing site. You may utilize the e-filing site and a variety of services related to tax by finishing the income tax login process. The steps below will walk you through the process of finishing the income tax E-filing site login. Also, read Tax Saving via Deductions Under Section 80C 80CCC 80CCD and 80D. How To Do Income Tax Login? Step 1: Navigate to the Income Tax e-filing website. Select the “Login Here” option in the upper right-hand side of the site.   Step 2: After clicking the “Login Here” option, you will be sent to the Income Tax Login webpage.   Step 3: Also on the login screen, enter your User ID, which is your Permanent Account Number or PAN. Enter the password you created when you registered for your IT e-filing account. After you’ve…

Read more
istockphoto 1252264724 612x612 1

Everything about CSC Digital Seva Portal

CSC Digital Seva Portal is a gateway that provides info on numerous firms and electronic governance to inhabitants in remote and rural areas of India. A CSC facility’s full name is Jan Seva Kendra or Common Service Center. Common Services Centers or CSC is a network based in India that aims to transform India into a digitalized country. CSC Scheme 2.0 got started in Aug 2015 for improving accessibility to digital and technological services for citizens in remote and rural areas of India. The CSC Digital Seva Portal’s Goals Connect 2.5 lacs of Gram Panchayats in India. Citizens of India should access trustworthy and up-to-date info. In villages, all basic services are given in a single place. Deliver low-cost, services that are of high quality to average people. Governmental welfare and social assistance programs are promoted. Develop new rural jobs and promote rural entrepreneurship. Registration for the CSC Digital Seva Portal To commence the registration process, one must comply with…

Read more

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is an Open-ended Deferred Pension Plan. The scheme offers guaranteed return of 8% per annum for 10 years. Minimum pension amount is Rs. 1,000/ month and maximum pension amount is Rs. 10,000/ month depending on purchase price. Returns will be paid on a monthly basis. On maturity, the entire pension wealth will be paid in lump sum and no annuity will be offered thereafter by the Pension Fund Regulatory and Development Authority (PFRDA). The first installment of 5% or 50% whichever is lower is payable within 2 years from the time when account balance reaches Rs 1lakh/- which will happen after completion of 10th year under this scheme i.e before 2040s for most of us today! PMVVY is an Open-ended Deferred Pension Plan PMVVY is an open-ended deferred pension plan that provides guaranteed return of 8% per annum for 10 years. The scheme offers minimum pension amount of Rs. 1,000/ month and maximum pension amount of Rs. 10,000/ month…

Read more
EPFO KYC update for UAN

How to update KYC for EPF UAN?

KYC is being adopted by most of the government and private sector organizations for maintaining the proper records of official matters. The Indian government has already made it mandatory for employees as well as consumers to link their Aadhar card with various types of accounts and digital entities. Therefore, it is also compulsory for you to link your EPF with your Aadhar as well as other important digital documents. Don’t know how to do it? Don’t worry, we have got your back! In this article, we’ll learn how to update KYC for the EPF’s UAN and also go through the basics. Stay tuned until the end to understand it better.  What are the advantages of updating your EPF’s KYC details? A wide range of benefits can be reaped by updating the KYC on your EPF account. Some of those benefits are: You can make online withdrawal claims, which happen only after you link/seed your Aadhar with the UAN The transfer…

Read more
istockphoto 1353920585 612x612 1

EPF Form 10C – Benefits, Eligibility & Documents

EPF Form 10C is used to request a reimbursement of the employer share, the withdrawal benefit, and the scheme certificate for membership retention. An Employees’ pension fund (EPF) or Employers’ Pension Scheme is a retirement plan that EPFO enfranchises for employees working in organized sectors. Both the employer and employee contribute to EPF during a person’s employment period at that company. UAN – This unique number is assigned to each member of EPFO. It consists of 12 digits. An EPF certificate gives information about the employee’s employment, including the service period and the family members that will be able to benefit from the scheme in the event of death. Individuals can choose to continue their work after they retire from a company. You can either transfer the company to your next one or withdraw it. In case of withdrawal, the person must file EPF Form 10C.  Filling EPF Form 10C   Online and offline filings of Form 10C are possible. These…

Read more