Launch HN: Ancana (YC S21) – Fractional ownership of vacation homes
Demand for vacation homes has driven up their price, putting these properties out of reach for most buyers, who only plan to use the home a few weeks a year. This pushes many people into timeshares, which are notorious for hidden fees, pushy sales tactics, and difficulty to sell. With Ancana, you can own a 1/4 or 1/8 share of the home and split expenses with the other co-owners. If you buy a 1/4 share of a home, you have access to it for 3 months of the year. For each property we set up the investment trust, find qualified co-owners, and handle the entire real estate purchase transaction. Costs are split amongst the co-owners, and we take care of the furnishing and ongoing property management.
We accomplish this by creating an investment trust for each property and dividing it into individual, purchasable shares that represent ownership in the property. We furnish each home and find and vet the co-owners. Once all of the shares of the property are sold, we retain no ownership stake in the property and transition into the role of property manager, ensuring the home is well maintained and handling any issues that arise. Unlike a timeshare, Ancana owners own a real asset (the property) versus a block of time. If you decide you want to sell your share, you are free to do so at any time, either through us or on the open market, and capture any appreciation the property has accrued.
Once you own one of these homes, our goal is to make scheduling visits to the property as easy and equitable as possible. Our scheduling system breaks a 12-month booking window into "high-demand" dates/seasons and "general" stays. Each co-owner selects 1 high-demand date before additional bookings are permitted. Priority order is determined by the owner's purchase date (1st buyer gets 1st choice, 2nd buyer gets 2nd choice, etc), with the order rotating each year (2nd buyer gets 1st selection in year 2, 3rd buyer gets 1st selection in year 3, etc.). Outside of the initial high-demand selection process, co-owners are free to book the property anywhere from 2 days to 12-months in advance, up to their allotted days per year.
We'd love to speak to any of you that are curious about fractional ownership or have any ideas for where we should go next or how to improve our offering!
160 comments
[ 3.9 ms ] story [ 243 ms ] thread> Unlike a timeshare, Ancana owners own a real asset (the property) versus a block of time. If you decide you want to sell your share, you are free to do so at any time, either through us or on the open market, and capture any appreciation the property has accrued.
Curious why you think there is no secondary market for these homes. The primary market is exploding for this model of ownership and given the limited inventory of vacation homes on the market, we think the secondary market is also going to be very large
What if one co-owner chooses to sell to someone whose intention is to sub-let as a party house?
That said, I do like standardized agreements in a lot of situations. I just am not sure it's best for these.
For clarity, I’m not asking to see contracts with peoples names or addresses. I’m asking to see what I would assume to be the actual terms one would be entering regardless of which specific property or others involved.
I have clarity. I don't think it would necessarily be good to let everyone scan it for vulnerabilities. They would need to clean it up more first. With web apps, even if the app is open source, the server config will often be hidden.
Otherwise, on some forums they might discuss how to take advantage of a timeshare, or how to get more out of the company managing it. Things like making extra by putting it on AirBnb or VRBO and not taking pains to avoid disruptive parties.
More access, more scrutiny.
https://luxuryfractionalguide.com/fractional-ownership-vs-ti...
As you can see from this thread, the assumption by many is that we are a new take on a timeshare. But like your linked article demonstrates, there are many important differences between fractional ownership and timeshares. So while it rolls off the tongue easier, we want to distance ourselves as much as possible from a timeshare. Appreciate the feedback, we'll continue to refine how we talk about our model!
I propose: CloudHomes.
https://en.wikipedia.org/wiki/Incompatible_Timesharing_Syste...
As for fees, we simply split the ongoing property costs amongst the co-owners with no markup. We do charge an annual management fee for administering and maintaining the property, but this is fixed and transparent.
Most modern “timeshares” (the word remains current in common use though the technicalities have changed and the industry has mostly moved to “vacation ownership”) are deeded straight to the property and use this as a differentiating sales tactic to people's image of timeshares not being that way. I also have been a timeshare owner for years, and that's been the case with each except on in Mexico sold in blocks of weeks per year for a limited term of years because the market was largely international and Mexican law limits foreign ownership of coastal property.
> Resorts force you to sell your time back to them and they dictate the prices
No, they mostly don’t; that what is sold is freely marketable fee simple ownership is a heavily marketed feature of most. There are even real estate brokers that specialize in this market.
Though differentiating on the perception that most other vacation ownership options do this is very common in the industry.
If the latter, does the elevator pitch of Ancana make it at least seem like a uniquely good/interesting timeshare implementation, or could the same description be applied verbatim to other major timeshare services already on the market?
I think using units that are individual homes with a small number of owners per property potentially has some interesting dynamics. The guaranteed ability ro reserve a (even if not the single most preferred) high-demand date each year is an obvious plus from that.
Conflicts within the ownership group, particularly over relationships to property management are very much a thing in shared-interest vacation ownership. Typically these are intense, political, but (for most owners) impersonal because of the size of ownership groups. With small-group ownership of individual properties, there would seem to be a possibility for those to be much more intense and personal, both because of the smaller group size that is involved and the greater sense of attachment/ownership of the specific property.
https://www.pacaso.com/
Pacaso is also purchasing homes that are not yet built, for instance they’ve purchased two homes in North Lake Tahoe that are actively being developed.
I am a 1/8 shareholder of a property in North Lake Tahoe through Pacaso and I love the model. Best of luck to you.
Also, are the prices on your site the entire price of the house or the price of the share? Because if that’s the price of the whole house that is an insane commentary on how ridiculous US urban housing markets are!!!
All prices are per share and based on the ownership %. Even still, the US housing market is bananas
They are asking about upkeep not default
If a co-owner stops paying their monthly fees, they are in violation of the real estate contract and liable to forfeit their ownership in the home. Similar to someone defaulting on their mortgage.
Well they don't automatically, but this is still very clearly just a shady timeshare ad.
Crowdvilla will leverage blockchain to rejuvenate the timeshare industry
https://venturebeat.com/2018/03/20/crowdvilla-will-leverage-...
> Unlike a timeshare, Ancana owners own a real asset (the property) versus a block of time.
Like literally every timeshare/vacation ownership scheme I’ve seen other than in places where there are legal constraints (like Mexico’s limits on foreign ownership of certain real property) that get in the way involves deeded fractional ownership of specific real property. This is, again, false differentiation.
The only thing somewhat novel here seems to ve the limitation to no less than eighth shares and the initial high-demand date guarantee (obviously the former being key to permitting the latter.)
Another real point of differentiation is that (at least from your pitch, and people that have these features tend to highlight them in their basic pitch) is you don't seem to have a relationship with a network of exchange properties besides the deeded property, which is great for people who want to spend 6+ weeks a year, every year, in the same vacation spot, but less so otherwise.
With timeshares you are purchasing a block of time in a condo/resort with dozens or potentially hundreds of people. With Ancana, you are purchasing a share of an actual home with a small group of people. You own a piece of the home you are staying in, not a deed to a piece of a resort. Co-ownership is a concept that has been around for a while (a couple people in the comments have shared their experiences), but this has typically been limited to friends/family. We aim to make this accessible to everyone.
With timeshares you get access to the property for fixed weeks. With Ancana you have ongoing access to the home. you can plan a vacation 8 months from now, or a last minute getaway this weekend. Timeshares do not offer this flexibility.
Selling your timeshare is typically a nightmare. There are entire industries built around helping people get out of their timeshare contracts. Resorts have a vested interest in keeping you hooked, because the more buyers they get the more money they make. With Ancana, you are free to sell your share whenever and however you'd like. Since there are a limited number of co-owners, Ancana has no vested interest in making it hard to sell. We'll assist in helping you find a buyer if you'd like.
We appreciate your feedback as a timeshare owner. It really is helpful for us to understand these different perspectives and to try and differentiate ourselves more from a standard timeshare
Even then they're not all bad: I had friends who owned a $$$ place on the California coast but liked to travel so they bought a Wyndham timeshare and used it all over the world and loved it.
But there will be conflicts no doubt. Our approach is to make access to the home as equitable as possible. Each co-owner can select their priority dates before the general booking window opens. This ensures each owner has access during high-demand times. Outside of the priority booking window owners are free to book anywhere from 2 days to 1 year out and can see which dates are available. We also limit the length of a stay so that even during high-demand times, multiple owners can enjoy the property.
"Just say no" seems to be the answer for me.
But personally I've never seen the attraction in a vacation house. Maybe it can be temporarily more cost effective but even if you have exclusive use of a room--which isn't the case with a traditional timeshare--I'm really skeptical that any potential savings are balanced by "Where do you want to go this month/year?"
Otherwise your best bet is just throw the money in a more liquid, synthetic vehicle like a REIT
Which piece do you own? Is it like I own the roof, but someone else owns the roof, and a different person owns the floor?
- Can an owner rent out their time? Who gets the rent money? How much is reserved for maintenance because renting will incur higher maintenance costs.
- What happens if one owner can’t carry their weight on taxes or insurance? Our house is beach house so insurance is ridiculous — we rent it out during the summer to cover it and use the house during the rest of the year.
- What if there are disagreements about how much to invest in the house for upgrades, maintenance, etc?
- Is there a system through which owners can buy or trade time with other owners?
- If you need to sell, how do you do that?
- What happens if one owner passes away and their share is now owned by multiple people?
- Rentals: this is property dependent. Some of our homes are located in communities that have explicit rules regarding short term rentals. For homes not governed by these rules, the owners are free to vote on whether they'd like to allow renting the home when it is not used. We leave it up to the owners for the exact reason you highlighted above - renting can lead to higher maintenance costs and other issues. Proceeds from the rental go to the owner putting their time up for rent. The income is first used to defray an owner's monthly costs, and the rest is given directly to them.
- Costs: Property costs are split amongst co-owners based on their ownership stake in the home with no markup. This tends to keep costs fairly low for each owner, but in the event an owner does not pay their portion they are in violation of the contract and subject to forfeiture of their share. Again, the fees for these homes in mexico are reasonable compared to the US and the costs are made clear and transparent to the buyer at the time of purchase.
- investments: routine maintenance is handled by Ancana using the reserve fund. For other upgrades, the owners put it up to a vote. Depending on the size of investment, there are different vote thresholds that need to be met to move forward.
- buying/trading: currently we make it easy for co-owners of the same property to trade scheduled visits. We do have plans on opening this up for all Ancana properties, but it is not something we have built out yet. Stay tuned!
- selling: An owner is free to sell at any point after owning the home for 1 year. We are happy to assist in this process and list the fraction for sale to our network of qualified leads. But if an owner prefers to use their own agent or sell it through their own network, that is great too. Once a buyer is found, we take care of the vetting and legal process for transferring ownership.
- Similar to other real estate, your ownership of an Ancana property can be passed on to beneficiaries. In this case the new owner(s) are still bound by the original investment trust and responsible for payments. We don't limit ownership in a fraction to a single person, so it is up to the new parties to decide how they want to handle ownership and using the property
2 vote for, 2 vote against. What now? All of the examples you listed are even splits (2 vs. 2 or 4 vs 4). Who resolves a dispute in the case of a tie?
In most bureaucracies gridlock is not a bug, it’s a feature. It forces wider consensus.
I co-own a building and one of the partners is looking to sell his share. I have first right to purchase and a majority vote is needed to approve a new owner, so the rest of us can collectively block a purchaser we don’t like.
Some of the issues that get people the angriest have been silly stuff. Like one person using more than their fair share of the storage shed, etc.
Are you offering any financing that's more similar to a 15 yr or 30 yr mortgage?
FYI, the meta tags on your English site (<title>, <meta name="description">, etc.) are still in Spanish. For SEO and usability, you might want to update those to English as well.
Good luck with the venture!
Reminds me of when I accidentally reinvented a recruitment company
Your approach might be more principled than the way timeshare companies operate. But it also sounds like you're leaving a lot of money on the table, compared to the way timeshare companies operate. And investors won't let that continue if you can't convince them that your approach will somehow make more money than timeshare companies.
We started this company with a mission of making the vacation home market more accessible to people who are typically priced out. We're excited to see where Ancana goes, but pivoting into a timeshare company is not a direction we'll ever go.
- Investment opportunity
- Potential rental income
- Personal enjoyment
and as a result seem like they don't really achieve any of those cleanly and this just seems like it kinda swirls those three around in a slightly different manner.
I was really hoping for something that was more of a larger scale investment business or something.
https://www.ramseysolutions.com/debt/how-to-get-rid-of-a-tim...
An owner is free to sell anytime after owning the property for a year. You can list this like any other real estate holding. We can also assist in the sale if you'd like to tap into our growing network of interested buyers
In terms of disputes, we agree that most can be handled through simple communication. Our platform allows for this. Many of our owners like the idea of having Ancana there to act as a go-between for issues that do arise and to set rules that everyone can agree to.
Good luck with your home buying adventure! What areas are you looking at?
I'm looking at Costa Rica, BVIs and Medellin.