If you have been browsing Zillow for oceanfront homes in Wrightsville Beach or Bald Head Island recently, you’ve likely seen the listings: a stunning $3 million home offered for $375,000.

It looks like a typo, but it’s the new wave of fractional ownership (often popularized by the brand Pacaso). For many buyers in New Hanover and Brunswick counties, this model sounds like a dream "back door" into luxury markets that have otherwise become untouchable. However, before you sign an operating agreement for a 1/8th share of a beach house, you need to understand how this differs from a traditional timeshare—and where the specific coastal North Carolina pitfalls lie.

Here is the insider reality of buying a "slice" of the coast.

Myth vs. Reality: Is it Just a Glorified Timeshare?

Myth: "It’s the same thing as a timeshare; you just pay more."
Reality: The legal structure is fundamentally different. In a traditional timeshare, you typically own the "right to use" time (a liability). In the fractional model—like the established Sea Oats community in Wrightsville Beach or The Hammocks on Bald Head Island—you hold a deeded interest in the real estate, usually through an LLC.

Strategic Takeaway: You own an asset, not just a calendar slot. If the property appreciates in value, your share appreciates. When you sell, you sell at the current market value, not a depreciated "used" price.

The Financing "Wall"

This is the single biggest shock for buyers expecting a standard transaction.

The Problem: You generally cannot walk into a local bank and get a 30-year fixed mortgage for a 1/8th interest in a home. Fannie Mae and Freddie Mac do not buy these loans.

The Solution: This is largely a cash or HELOC market. While some developer-backed financing exists for specific communities, most "Pacaso-style" resales require you to bring your own funds. If you don't have $400k in liquid capital or access to private lending, this door is likely closed.

Zoning & The "Transient" Trap

While Silicon Valley tech companies love the term "co-ownership," local town councils in Surf City and Wrightsville Beach are far more skeptical.

The Risk: Many coastal towns have strict ordinances against "timeshares" in residential zones. While fractional ownership is legally distinct, if the usage pattern looks transient (rotating strangers every week), neighbors often petition the town to enforce "single-family" zoning rules.

The Insider Rule: Never buy a fractional share in a neighborhood that isn't explicitly zoned for it or established (like Sea Oats). You do not want to be the test case for a town's new anti-density ordinance.

Insurance Nuances: The LLC Factor

In our region, wind and hail coverage is everything.

The Nuance: When a home is owned by an LLC with multiple owners, it is often classified differently than a primary residence. You need to ensure the NC Insurance Underwriting Association (The Wind Pool) policy is correctly structured for the entity. If the policy is written for a "single family" but the usage is "multi-family fractional," a claim after a hurricane could be denied.

Your Next Step

Fractional ownership can be a brilliant portfolio play—letting you buy a $3M lifestyle for $400k—but only if the legal and financial foundation is rock solid.

Are you curious if a deeded fractional share at Wrightsville Beach or Bald Head Island fits your long-term wealth strategy?

Aspyre Realty Group excels at listening and communicating your goals into properties that work. We can help you distinguish between a risky "startup" model and established, deeded ownership communities that offer true equity. Let’s sit down and review the numbers.