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A New Start-Up Wants to Help You Own (a Portion of) a Second Home

  • October 2nd 2020

by UrbanTurf Staff

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A home listed for sale on the Pacaso site.

A new company wants to shake up the ownership model on second homes. 

Launching this week, Pacaso (pronounced like the famous artist) was started by a group that includes one of the founders of Zillow.

Here is how it works:

  • A person finds a second home that they are interested in purchasing and then the Pacaso team determines if it is a good investment. 
  • If the property gets the green light, Pacaso then purchases the home through a property-specific LLC designed for co-ownership and then sells a portion of the ownership in the LLC -- between 1/8 and 1/2 -- to the interested buyer. 
  • Pacaso then finds vetted buyers to co-own the remaining shares of the home. 

Pacaso charges a 10% mark-up at the time of purchase and then an annual maintenance fee of 1% of the purchase price. Co-owners can stay at the second home for a time correlated to their ownership share. 

"The mission of Pacaso is to democratize second home ownership, a luxury to which millions of American aspire but which seemed previously inaccessible, and is more important than ever as people seek safety, security and serenity amid Covid-19," co-founder Spencer Rascoff said in a statement. 

See other articles related to: owning a second home, pacaso

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/a-new-start-up-wants-to-help-you-own-a-second-home/17364.

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