•  Real Estate

Partbnb Review — invest in a Caribbean vacation home

Partbnb facilitates co-ownership of vacation homes in the Caribbean and provides ongoing property management. Note: As of this writing, Partbnb has temporarily suspended operations in the Carribbean due to COVID-19.

Partbnb

  • Investment Types: Real Estate
  • Open to all investors
 Pros
  • Open to all investors
  • Integrated property search, transaction account management, property management, and ownership administration
  • Option to use property for personal use or short-term rental during allotted days
 Cons
  • High minimum investment
  • Direct property ownership inherently more of an active investment than indirect via crowdfunding
  • Maximum 45 days of property use annually per share
  • Hefty fee schedule
  • Properties are subject to international laws that may be unfamiliar to investors

Overview

This Partbnb Review will help you learn more about Partbnb's investment offerings, including how the alternative investments on Partbnb are structured, and what your potential returns might be. You can read more about the criteria we use to review investment platforms here.

Partbnb is not really a “crowdfunding” platform. But many investors exploring crowdfunding and online alternative investments are looking for opportunities in real estate, and Partbnb is among several sites looking to make searching for and buying properties much more like ecommerce and crowdfunded investing.

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Types of investments Partbnb offers

Partbnb is not registered to offer investment securities. It’s a property management company that facilitates the purchase of homes to be shared among multiple owners.

What do you get when investing with Partbnb?

Partbnb can help you purchase partial ownership of a vacation property. If you choose to invest, you and the property co-owners will be shareholders in a Special-Purpose Entity that holds the title to the property. Additionally, in some cases, there may be income payable to owners from short-term rentals.

How does Partbnb make money?

Partbnb charges a 10% commission on the purchase price of a property; an annual 1.5% property management fee; and a 3% property transfer fee upon sale.

Potential returns and cashflow

The specific returns from any particular property will vary greatly based on factors like ownership and maintenance expenses, property value fluctuations, and any short-term rental income generated.

Breadth of offerings on Partbnb

Partbnb offers listings in the Bahamas, Cayman Islands, Dominican Republic and Puerto Rico.

Regulatory framework and due diligence expectations

Because you’re purchasing actual property, rather than a security, the transaction is not governed by SEC rules as with most of the investment crowdfunding and online alternative investment platforms we review. Instead, a purchase via Partbnb is subject to the particular laws of the country where the property is located.

This review was first published on 08 December 2021.


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