You may have heard the ads streaming on your radio or seen them in the news. What exactly is Pacaso? Pacaso is a technology-enabled real estate marketplace that helps people buy and co-own a luxury second home with 4-8 owners. Pacaso’s concept is not new; popular vacation spots like Tahoe have been offering co-ownership second homes for decades. So, what’s different about Pacaso?
Pacaso was started by Austin Allison, former founder and CEO of dotloop, a real estate software adopted by millions of Realtors. Austin Allison, alongside Spencer Rascoff (former CEO of Zillow), started Pacaso with the goal of making second home ownership easier.
We purchased a Pacaso share in Truckee, CA in late 2021. Our vacation home is a beautiful cabin that backs up to a golf course. The home has 4 bedrooms, each with its own ensuite bath and a 5th den/office. It has everything, from kitchen gadgets like air fryers and a Vitamix to every measuring spoon and ladle you can think of. Stocked towels, toilet paper, and cleaners are all available for use. The home even includes a Peloton so you never miss a workout. Owners get a fully furnished and fully equipped home, plus a dedicated property manager.
The experience so far has been great. From the time we began thinking of purchasing a Pacaso, the sales team was there to take facetime calls and show us properties or answer our questions. Once we onboarded, we were given access to the Pacaso booking app for owners. The app clearly articulates the booking guidelines and allows us to see what is available or what has already been booked.
Most owners share their home with 7 other families (all anonymously) through an LLC. Those owners are each given up to 44 nights a year to use with some boundaries, such as only being able to book 1 major holiday at a time, and limitations on stays during peak summer and winter seasons. The owner app limits bookings to 6 advance bookings within a 2-year period. This is to allow each owner equitable time at each home. This may sound like a lot of regulations, but is actually very easy to manage and plan our future stays.
We booked our first stay right after the Thanksgiving holiday, which did not count toward a ‘holiday’ booking. Our next stay was planned in late December, but ultimately canceled due to bad weather and road closures (we were given our nights back). We stayed again in February, March and April and May. We have plans in June and July. The app is easy to use, and if we have questions about a booking, our Pacaso property manager is easy to get ahold of and help us sort out any needs we have.
A few of the things that we love about Pacaso:
-A property manager and team of housekeepers, landscapers, etc. all maintain the property, so unlike a vacation home that is vacant, the home is always cared for and maintained.
-We have the option of selling our share of the home down the road if we want. If the home value has increased, we can gain the equity from our share of the resale. This is not the case with timeshares.
-The property management team is highly responsive. Missing batteries? Propane for the BBQ? Call property management, and within no time there is a delivery of those items you need.
-Owners can share future needs for the home. As an owner, if the home needs more family style games or an umbrella on the back patio, owners can request additional items. Most of these smaller items are approved and supplied right away, whereas more expensive items go through a vote.
-The home we own is worth more than $3,000,000. When we stay there, it truly feels like a luxurious getaway. One that we can easily share with family and friends. In today’s real estate climate, we would not be able to afford a second home of this caliber without the co-ownership model.
Some things we don’t love about Pacaso:
-We would love MORE time! A home like this makes you want to enjoy it, all the time!
-Pacaso is only in bigger markets that command tourism and travel. Pacaso is growing quickly and has expanded to Hawaii and globally to Spain, however they are still not available in many cities.
-Owner Operating Expenses. They are expensive. Our owner’s operating expenses are almost double our mortgage. These operating expenses include our Club Membership (golf/pool/member-only restaurants), utilities, housekeeping, home maintenance, taxes, insurance, a $99 membership fee and funds towards capital reserves (for any bigger maintenance items or purchases).
-The loan through Pacaso is an interest-only loan. Owners are allowed to refinance that loan and can pay it off early without penalty. The minimum down payment is 30%.
Have you thought about investing in a second home? A Pacaso home may be a great option to consider. As Realtors, we can help you with the process of finding the right Pacaso and putting you in touch with the right people. As owners ourselves, we would be happy to give you some additional insight to our experience.