Introduction
Richard Bexon.
Good afternoon, guys, and welcome to episode 299 of Costa Rica Real Estate and Investments with me, your host, Richard Bexon.
Today we’re going to be doing a Developer’s Diary on fractional investments. We get a lot of inquiries about it, and Jake in the office was like, “Rich, why don’t I interview you for the Developer Diaries?” We’ve done it for Villa 1, 2, and 3, we’ve done it for Xanadu and Villa 4, but just on fractional investments so that you guys can get an idea of what it is, how it works, etc.
And it’s not a timeshare.
But anyway, today we’ll be talking with me about that.
Remember, guys, if you’re interested in investing in Costa Rica or just want to join our investment club, if you go to our website, investingcostarica.com and join our newsletter, you can sign up there. We do a lot of analysis of properties and also investments available.
But you can also email us if you’re looking to do anything here: info@investingcostarica.com. That’s info@investingcostarica.com.
But let’s get straight into the podcast.
What Is Fractional Ownership?
Jake Alexander
Welcome back to another episode of Developer Diaries. I’m Jake Alexander, and I’m joined by Richard Bexon of Belong Costa Rica. And today we’re going to be covering what is fractional ownership.
Richard Bexon.
Awesome. I appreciate you having me on the—I’d say the show, Jake, but it’s kind of the podcast. Usually I’m the one interviewing.
But yeah, I think a lot of people like these Developer Diary podcasts, just from the feedback that I’ve gotten. So I think it’s important that we share this information with listeners out there for sure.
Understanding the Difference from Timeshares
Jake Alexander
Yeah, it’s just a different take and a different style. You get a chance to be on the other side of the camera.
Richard Bexon.
I’m always happy to share some of my experience and knowledge, for what it’s worth.
Jake Alexander
So when people hear fractional ownership, they think timeshare. Why is that wrong?
Richard Bexon.
Well, I mean, a timeshare is basically—you buy a piece of time, if that makes sense. Usually it’s limited to like 10 or 20 years from what I understand. You’re buying a week or two weeks in a property.
What we’ve done in some of our properties with fractional ownership is—you actually own the property. You actually own part of the land.
There’s a corporation. The corporation is divided into a number of shares, and the individual shareholders own those shares. So when you have a fraction, that represents ownership of the corporation—and therefore the property and land itself.
So it’s very, very different.
You do get usage rights as well, which vary by property. And you also get dividends at the end of every year.
We also typically structure it so that we list the property for sale in year four, aiming to sell in year five. That gives us enough runway to get the project up and running, return dividends to investors, and increase the value by improving ADR and occupancy.
That way, investors get:
- annual dividends
- usage rights
- and a return at the liquidity event when the property is sold
The Problem Fractional Development Solves
Jake Alexander
What problem were you trying to solve when you introduced fractional development?
Richard Bexon.
It was a few things.
Number one, there were a lot of people with $100K–$300K. That doesn’t get you much in Costa Rica.
People are used to a certain level of living or vacationing—they want something nice, but they don’t necessarily want full ownership.
Because $100K here gets you a shack, man—or a crummy one-bedroom condo in Coco with no view.
That’s not what people want.
They want to travel with family, with friends. So this gave people the best of both worlds:
- a lifestyle investment
- but more investment than lifestyle
Normally real estate here is 70% lifestyle / 30% investment.
This flips that.
You get strong returns, but also usage. And it’s cool to say, “Hey, I own a place in Costa Rica.”
We also run shareholder meetings yearly, provide updates, and we control everything end-to-end—from land to design to build to property management.
That control is key. If we didn’t have it, we couldn’t deliver returns.
Driving Returns Through Efficiency
Jake Alexander
What drives those returns?
Richard Bexon.
All of the above—ADR, occupancy, and cost control.
Revenue = ADR × occupancy × 365.
But cost control matters too.
Also, we don’t just run one property—we run clusters. Like in Manuel Antonio, we have six villas.
That allows us to:
- shift bookings
- eliminate dead nights
- increase occupancy
Which boosts revenue.
We also:
- do breakfast (rare in rentals)
- manage laundry + maintenance in-house
Everything is in-house.
I’m a control freak, as you know.
Hidden Costs and Revenue Management
Jake Alexander
Where do people underestimate ownership costs in Costa Rica?
Richard Bexon.
Electricity, water, and property management.
But the real difference isn’t cost—it’s revenue.
Most property managers:
- just list on Airbnb
- open doors, close doors
We run it like a hotel.
We plug into luxury travel networks.
Those networks bring:
- higher-end clients
- higher ADR
- less price comparison
Example:
Typical villa = $500–$600/night
We get double that.
That’s the difference.
Listening and Adapting Development
Jake Alexander
How does that influence what you build?
Richard Bexon.
Listening.
To:
- clients
- agents
- travel advisors
- staff
- guests
If I hear something enough times, I build it.
Ideal Investor Type
Jake Alexander
What kind of investor is this NOT for?
Richard Bexon.
Someone who:
- wants control
- wants long stays (1–2 months)
- wants to manage decisions
This is:
- hands-off
- professionally managed
It’s like investing in a Formula 1 car—you don’t drive it.
Performance and Dividends
Jake Alexander
Performance so far?
Richard Bexon.
Strong.
- ~6% mid-year dividend
- property value already exceeded projections
Dividends:
- July
- January
Usage:
- Sept 1 – Nov 15
Current and Upcoming Projects
Jake Alexander
What projects are live?
Richard Bexon.
- Xanadu → fully funded in 1 week
- Manuel Antonio Villas → active
- Villa 5 → some shares left
- Villa 6 → private fund
- Yurt Project → launching
Next big one:
Arenal Ridge Project
- 20–30 villas
- 11 hectares
- river + waterfall
- volcano views
Jake Alexander
Where can people learn more?
Richard Bexon.
Email: info@investingcostarica.com
Or book a call in the description.
Richard Bexon.
Hey guys, I hope I didn’t bore too many of you there talking about fractional investments.
But a lot of people have $100K–$200K and want to diversify.
We’ve done millions in these investments. Clients are very happy.
Happy to connect you with references.
If you’re looking to:
- invest
- develop
- buy
We’re fully integrated.
Email: info@investingcostarica.com
See you on the next podcast.
