Fractional: Revolutionizing Real Estate Investing for Friends and Communities

May 16, 2023

In this episode, we have the pleasure of interviewing Stella Han, the co-founder and CEO of Fractional. Join us as we dive into the fascinating world of real estate investing and learn about Stella's journey from being a senior software engineer to revolutionizing the industry with Fractional. Here are the key points we'll be exploring:

Stella Han's Background and Inspiration

Stella Han's story is one of determination and inspiration. As a second-generation Chinese-American, she witnessed firsthand the transformative power of real estate through her parents' side hustle as software engineers. Their success in real estate flipping sparked something within Stella, igniting her desire to explore the world of property ownership and investing. With a strong background in software engineering, Stella was well-equipped to tackle the challenges that lay ahead.

The Birth of Fractional

After conducting extensive research on existing crowdfunding platforms, Stella discovered significant obstacles that limited access for non-accredited investors, such as high fees and restricted opportunities. Determined to make real estate investing accessible to all, Stella teamed up with her co-founder to create Fractional. This full-service marketplace was born out of the desire to provide a solution to these challenges and empower friends and investing communities to co-own real estate together.

Low-Cost Entry and Risk Reduction

Fractional is redefining the real estate investment landscape by offering a low-cost entry point for individuals to pool their money and invest together. Here's how Fractional achieves this:

I. Pooling Resources: Fractional allows individuals to combine their capital, making it possible to invest in properties that would be otherwise unattainable on an individual level.

II. Credit Underwriting and Financial Checks: Fractional ensures that only qualified co-owners participate by conducting thorough credit underwriting and financial checks. This screening process safeguards the investments and enhances the overall stability of the marketplace.

III. Collaboration with Lenders: Fractional has established partnerships with lenders to secure loans without personal guarantees. By reducing the risk for co-owners, the platform creates a more secure investment environment.

Developing a Secondary Marketplace for Liquidity and Flexibility

Fractional is not just stopping at co-ownership; they have a vision for the future. Stella and her team are working on developing a secondary marketplace that offers liquidity and flexibility for investors. Here's what this means:

I. Enhanced Investment Experience: The secondary marketplace will allow co-owners to buy and sell their ownership stakes, providing liquidity and flexibility. Investors will have the opportunity to explore new opportunities or divest their shares as needed.

II. Expanding Investment Horizons: Fractional's secondary marketplace opens doors to a wider range of investment possibilities, giving individuals the freedom to diversify their portfolios and explore new ventures.

Rapid-Fire Round of Questions

During the podcast episode, Stella fielded rapid-fire questions that delved deeper into the intricacies of real estate investing. Some of the topics covered include:

I. Due Diligence: Stella shared insights on the importance of conducting thorough due diligence before investing in real estate and how Fractional supports investors in this process.

II. Risk-Adjusted Returns: The discussion touched upon risk management strategies and how Fractional aims to provide investors with attractive risk-adjusted returns.

III. The Future of Fractional: Stella shed light on the exciting future of the platform, including potential collaborations with syndicators. These collaborations could unlock new opportunities and propel the growth of Fractional.


Stella Han's journey from software engineer to CEO of Fractional is an inspiration to all aspiring real estate investors. Fractional is revolutionizing real estate investing by breaking down barriers and empowering friends and communities to co-own properties together. With a low-cost entry point, risk reduction measures, and the development of a secondary marketplace.

And remember, stay tuned for future episodes of the American Dream and Builder Investor Podcast, where we'll continue to bring you inspiring stories and valuable insights from the world of real estate investing.

Micy Liu