Fractional Ownership vs Timeshare in Los Cabos: 5 Key Differences That Could Save You $121,000 (2025)
You’re About To Discover Why Smart Buyers Are Ditching Timeshares For Something Better
Most people think they’re buying vacation property.
They’re not.
They’re buying an expensive rental agreement that will never make them a dime.
Here’s the difference between owning something real… and getting a bad deal.
The question is: Do you actually OWN this slice of paradise?
Or are you just renting it by the week like everyone else?
Here’s what most people don’t realize…
There’s A Quiet Revolution Happening In Vacation Property Ownership
Smart buyers are abandoning timeshares faster than a sinking ship.
And they’re flocking to something called fractional ownership.
Most people have NO IDEA what the difference is.
They think it’s all the same.
It’s not.
And that ignorance is costing them tens of thousands of dollars.
Maybe even their entire investment.
Here’s What You Actually Own With Each Option
Let me be brutally honest with you.
When you buy a timeshare, you own NOTHING.
Zero. Zilch. Nada.
You’re buying the RIGHT to use a property.
It’s like buying a movie ticket that’s good for the same movie, same seat, same time, every year for the rest of your life.
With fractional ownership, you own actual real estate.

Rob Goodyear, who’s structured over 60 residence clubs in 30+ years, puts it this way:
“When we sell, we’re selling deeded real estate. Owners are buying into a specific unit, but they can stay in any of the units that are within their bedroom category.”
Why Tamara Made $121,000 While Steve Lost Everything
Here’s a hypothetical example based on real market data that perfectly illustrates the difference.
Tamara bought a fractional share in Los Cabos for $269,000.
Steve bought a timeshare in Cabo San Lucas for $75,000.
Five years later…
Tamara sold her fractional share for $390,000.
She pocketed $121,000 in profit.
Steve couldn’t give his timeshare away.
Literally.
He found buyers offering him a few thousand dollars. Sometimes less.
Here’s why this happened:
Tamara owned real estate that appreciated with the market.
Steve owned a depreciating consumer product.
The Shocking Truth About Timeshare ‘Investments’
You might be wondering: “But timeshares are cheaper upfront, right?”
Sure. And a bicycle is cheaper than a Ferrari.
But which one gets you where you want to go?
Here’s what the timeshare industry doesn’t want you to know:
Timeshares lose 40-60% of their value THE MOMENT YOU SIGN.
Why does this happen?
Because of the massive marketing costs.
Those “free” vacation packages cost money. The high-pressure sales presentations cost money. The army of salespeople cost money.
You’re paying for all of that.
The true cost might be $65,000, but they’re selling it to you for $75,000 to cover their marketing machine.
When you try to resell, you’ll get the true market value: $65,000.
Your instant loss: $10,000.
How Real Estate Equity Actually Works In Your Favor
With fractional ownership, you’re buying actual real estate.
And real estate does something magical over time.
It appreciates.
In Los Cabos, luxury properties have seen consistent appreciation as the destination becomes more exclusive.
Your fractional share rides that wave.
As Rob Goodyear explains: “Fractional ownership can appreciate, as well as whole ownership, and in most cases fractional ownership is gonna follow whole ownership’s appreciation pretty consistently.”
Translation:
Your investment grows while you’re sipping margaritas on your terrace.
1 Week vs. 6+ Weeks: The Usage Reality Check
Here’s where it gets really interesting.
Most timeshares give you 1-2 weeks per year.
That’s it.
52 weeks in a year, and you get 1 or 2 of them.
Fractional ownership typically gives you 6+ weeks per year.
But here’s the beautiful part…
Why The Country Club Model Changes Everything
Rob Goodyear uses a brilliant analogy:
“Just like a country club doesn’t sell tee times, we don’t sell weeks. Everybody is a member of the club, everybody has equal access to the club, and everybody has unlimited flexible use.”
Think about it.
When you join a country club, they don’t say “You can only play golf 10 times this year.”
They say “Come play whenever you want.”
Same with fractional ownership.
Some owners use it 3 weeks a year. Others use it 12+ weeks.
It’s based on availability and your lifestyle.
Not some arbitrary restriction.
52 Owners vs. 8 Owners: What This Really Means
Here’s a number that’ll shock you.
A single timeshare unit can have up to 52 owners.
52!
That’s one owner for every week of the year.
Fractional ownership typically has 6-8 owners maximum.
You might be wondering what difference this makes.
The Luxury Experience You Can’t Get With Timeshares
Everything.
With 8 owners, you get:
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Personalized service that knows your preferences
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Higher-end properties (because fewer people are splitting the cost)
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Better maintenance (everyone has skin in the game)
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Actual input on property decisions

A Real-World Example: The Hassle-Free Lifestyle
Bethany and Jim from Utah were considering buying property in Italy with friends and splitting it.
But then reality hit.
“We looked at these properties and thought we’re going to show up and be doing yard work first thing, touch-up painting, finding people to clean. And how would you when you don’t speak Italian?”
Instead, they chose fractional ownership.
Now they arrive at a perfectly maintained property with professional management.
“Everything was wonderful, we just love it all and we’re super excited to come back.”
No yard work. No painting. No language barriers.
Just pure vacation bliss.
The Exit Strategy That Actually Works
Here’s the harsh reality most timeshare owners face.
The exit strategy.
Or should I say… the LACK of an exit strategy.
Timeshares are notoriously impossible to sell.
There’s an entire industry of “timeshare exit companies” (many of which are scams) because people are so desperate to get out.
Why Timeshare Owners Get Trapped (And How To Avoid It)
The resale market for timeshares is flooded.
Supply massively exceeds demand.
And the timeshare companies make it nearly impossible to transfer ownership.
With fractional ownership, you can sell it just like any other piece of real estate.
List it on the MLS.
Work with a real estate agent.
Market it to qualified buyers who understand the value.
As one industry expert put it: *“Fractional ownership can be sold on the open market through the MLS, just like any other property.” *
The Verdict: A Clear Winner for Cabo Real Estate Investors
Let’s recap what we’ve discovered:
| Feature | Fractional Ownership | Timeshare |
|---|---|---|
| Asset Type | Deeded Real Estate | Right-to-Use Contract |
| Value | Appreciates with Market | Depreciates Instantly |
| Usage | 6+ Weeks, Flexible | 1-2 Weeks, Fixed |
| No. of Owners | 6-8 (Typical) | 52+ (Typical) |
| Exit Strategy | Sell on MLS | Difficult Resale Market |
Timeshares give you:
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Usage rights (not ownership)
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1-2 weeks per year
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Depreciating “investment”
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52 other owners
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Nearly impossible exit strategy
Fractional ownership gives you:
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Actual real estate ownership
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6+ weeks per year (unlimited flexible use)
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Appreciating investment potential
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7 other owners maximum
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Traditional real estate resale options
The choice is obvious.
What This Means For Your Next Move
You have two paths in front of you.
Path #1: Buy a timeshare, get trapped in a depreciating consumer product, and join the millions of owners desperately trying to escape.
Path #2: Invest in fractional ownership, own actual real estate, enjoy unlimited flexible usage, and build equity while you build memories.
Which path sounds better to you?
Ready To See How This Works In Real Life?
Now that you understand the difference, you’re probably wondering…
“Where can I see a real-world example of fractional ownership done right?”
Great question.
But before diving into a specific project, you can explore the model in even greater detail in our in-depth guide to fractional ownership in Los Cabos.
For those ready to see a premier example in action…
There’s a premier residence club in Los Cabos that perfectly demonstrates everything we’ve discussed.
It’s called Oceana.
And it’s operated by Elite Alliance, the company with 30+ years of experience and over 60 successful residence clubs.
Your Next Step Is Simple
Ready to see exactly how this works?
Join Nick Fong (Ronival Real Estate founder) and Rob Goodyear (Elite Alliance founder) as they break down Oceana’s fractional ownership model in detail.
In this exclusive presentation, you’ll discover:
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How Oceana’s deeded ownership works in Los Cabos
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The unlimited flexible usage system (no fixed weeks)
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Professional management by Elite Alliance
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Access to their exclusive exchange network of 120+ destinations worldwide
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The potential for real estate appreciation
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A legitimate exit strategy through traditional real estate channels
Don’t make the same mistake millions of timeshare owners have made.
Choose real ownership.
Choose flexibility.
Choose Oceana.
P.S. In case you’re one of those people (like me) who scrolls to the bottom first, here’s what this is about:
1 . Timeshares = usage rights that depreciate 40-60% instantly
2 . Fractional ownership = real estate that appreciates
3 . 1-2 weeks vs. 6+ weeks of usage
4 . 52 owners vs. 8 owners maximum
5 . Impossible exit vs. traditional real estate resale
The smart money is moving to fractional ownership. The question is: Will you join them, or get left behind with a depreciating timeshare?