Owning a second home can be a lucrative investment, especially when the market goes up. Having your dream home near one of your favorite vacation spots can provide you a quick getaway without the hassle of having to find good deals and accommodations.
However, owning a second home is a huge financial decision. And, unless planned out properly, you could end up with plenty of surprising expenses your pocketbook isn’t ready to handle.
But, if that cabin in the woods or beach house retreat is a must-have, you could purchase part of a home with Pacaso. Pacaso is a marketplace for second homes, and it’s rethinking the timeshare model and nixing out the middleman.
Founded by CEO Austin Allison and Zillow Co-founder Spencer Rascoff, Pacaso says it’s “the modern way to buy and own a second home.” With them, you share joint ownership of a property with up to 8 other people so you’re able to get a second home for ⅛ of the cost.
You look through the company’s listings to shop for your perfect home. If what you are looking for isn’t on there, you can search for a listing on any real estate website and share it with them. If they decide the property is a match for the company, they will partner with you to purchase up to half of the property.
After you’ve chosen your home, Pacaso will create a property LLC for the home, referred to as the Pacaso home LLC. At the same time, they will remarket remaining shares, vet co-owners, and handle all the sales details and closing paperwork. Buyers can purchase from ⅛ to ½ of all shares. Then, at closing, the collective owners own 100% of the property.
The company also takes care of furnishings, repairs, utilities, and property management. And, once you’re ready to enjoy your new second home, owners can book a stay using the Pacaso app.
How is Pacaso different from a traditional timeshare?
In a timeshare, you are usually buying the rights to use a property for a set amount of time so you don’t necessarily own the property itself. With Pacaso, you’re buying shares of a real estate property so you have true real estate ownership.
Timeshares give you the right to use that property during a specific range of dates. With each Pacaso share, you get 44 nights per year. Since you aren’t locked to a specific time frame, you have the flexibility to plan your vacation whenever you want.
Also, Pacaso streamlines the resale process. You work with a real estate agent, and you set the selling price. So, you don’t need to settle for what the timeshare resale market sets for you.
If owning a second home is on top of your list, but the large financial burden is what’s holding you back, Pacaso might seem the right thing for you. You can still get that dream home, but for a fraction of the cost, and still enjoy all the second homeowner benefits.