Fractional real estate investment is when you own a part/fraction of the property. (Similar to holding a share, which makes you part owner of the company)  This fractional real estate investment, will get you recurring rental income and a possible appreciation on exit/sale.  You will also bear expenses on the property like maintenance as per your ownership percentage.  Typically these are properties already leased/rented out to good tenants and therefore are a great way to generate passive income/recurring income.