Pacaso... LLC home ownership?

irvinehomeowner

Well-known member
Saw this on my Apple newsfeed:
https://www.npr.org/sections/money/...n-startup-is-turning-houses-into-corporations

Is anyone familiar with Pacaso?
https://www.pacaso.com/

It's an interesting concept, buy luxury homes in destination areas and then split it up 8 ways among owners who get to use it for 44 says (no more than 14 days consecutively)... sort of like a AirBNB/Timeshare but with real ownership like a 2nd/vacation home.

I would consider partially buying some place I would always go to for vacation in the summer or winter like maybe Canada or Washington.
 
Interesting concept indeed. I wonder if you can finance the shares purchase or it needs to be bought outright cash. There are some very very nice looking beachfront properties that I wouldn't mind considering but not sure I want to dump that much cash into it.

Edit: Oh yea it says you can finance up to 70% of the purchase. This is very interesting indeed.
 
Problem I see is if you have that many people that own the property, how will you deal with conflicts and get N many people on the same page? Imagine Owner A wants to use the place during Xmas break and Owner B and C wants to as well. Assuming all owners live in the US, the holidays are all set and most companies follow these holidays. Sounds like a PITA to me...
 
i know someone who went at least part of the way through the process of buying into one of these and bailed because the fees were super high.  i guess you can fire pacaso as the property mgr if you want but would need agreement of the other LLC owners.
 
sleepy5136 said:
Problem I see is if you have that many people that own the property, how will you deal with conflicts and get N many people on the same page? Imagine Owner A wants to use the place during Xmas break and Owner B and C wants to as well. Assuming all owners live in the US, the holidays are all set and most companies follow these holidays. Sounds like a PITA to me...

I would think that any owner getting into this type of situation would need to understand these type of conflicts and be flexible.

It's just like at work when people schedule PTO, you rotate and give preference to those who got preference at other times.

For example, the people who get first "dibs" on which 2 weeks to take in the summer don't get priority during the winter and then the following year they switch.

There could be some owners who don't even care about their 44 days and just want to own their share as an investment.

Obviously there can be a whole slew of issues but it is an interesting angle to 2nd home/vacation home ownership.
 
irvinehomeowner said:
sleepy5136 said:
Problem I see is if you have that many people that own the property, how will you deal with conflicts and get N many people on the same page? Imagine Owner A wants to use the place during Xmas break and Owner B and C wants to as well. Assuming all owners live in the US, the holidays are all set and most companies follow these holidays. Sounds like a PITA to me...

I would think that any owner getting into this type of situation would need to understand these type of conflicts and be flexible.

It's just like at work when people schedule PTO, you rotate and give preference to those who got preference at other times.

For example, the people who get first "dibs" on which 2 weeks to take in the summer don't get priority during the winter and then the following year they switch.

There could be some owners who don't even care about their 44 days and just want to own their share as an investment.

Obviously there can be a whole slew of issues but it is an interesting angle to 2nd home/vacation home ownership.
Work PTO isn't the same though. We're talking about an investment in RE where N people has put money in. I personally feel the risk(s) are higher than the benefits in this situation.
 
sleepy5136 said:
irvinehomeowner said:
sleepy5136 said:
Problem I see is if you have that many people that own the property, how will you deal with conflicts and get N many people on the same page? Imagine Owner A wants to use the place during Xmas break and Owner B and C wants to as well. Assuming all owners live in the US, the holidays are all set and most companies follow these holidays. Sounds like a PITA to me...

I would think that any owner getting into this type of situation would need to understand these type of conflicts and be flexible.

It's just like at work when people schedule PTO, you rotate and give preference to those who got preference at other times.

For example, the people who get first "dibs" on which 2 weeks to take in the summer don't get priority during the winter and then the following year they switch.

There could be some owners who don't even care about their 44 days and just want to own their share as an investment.

Obviously there can be a whole slew of issues but it is an interesting angle to 2nd home/vacation home ownership.
Work PTO isn't the same though. We're talking about an investment in RE where N people has put money in. I personally feel the risk(s) are higher than the benefits in this situation.
i think it's one of those things where it works when it works but when it doesn't it's a huge mess.  and you have no idea who you are getting into business with.  dispute resolution, if you have to arbitrate or god forbid litigate against your co-owners, is going to be expensive AF and kill any profit you hoped to gain from the property. 

this concept would be much more interesting as an RELP with pacaso as the general partner.  although i see why they structure it this way--much lower exposure.
 
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