If you overhear someone mention their Pacaso, you might picture a prized piece of modern art. While the legendary painter influenced the company’s choice of name, this Pacaso is modern in a different kind of way.
Pacaso brings together buyers to co-own a second home, and then provides ongoing management to make the experience of second home ownership more enjoyable.
“Pacaso exists to make second home ownership possible for a broader audience,” says CEO Austin Allison, who co-founded Pacaso after achieving his personal goal of owning a second home.
So, why “Pacaso”? Allison said the name was inspired by the artist Picasso’s use of cubism: “It’s about bringing together these individual pieces to create a beautiful whole, and that’s what Pacaso does through co-ownership.”
According to the company’s Second Home Sentiment Report, nearly half the people who wish to own a second home are unable to afford one. Another 50% can’t justify the purchase of a home they’ll only use a few weeks of the year. Pacaso enables buyers to purchase the amount of ownership they’ll actually use, starting at ⅛, and tap into a new set of inventory at a price point they can afford.
While co-ownership of real estate is nothing new — groups of families and friends have owned property through LLCs or informal arrangements for decades — Pacaso simplifies the process and removes potential friction. “We create a property LLC for each home, find and vet co-owners, and handle all the sales details,” says Austin. “At closing, co-owners together enjoy complete ownership of the home – Pacaso does not retain any shares."
Unlike a timeshare, Pacaso’s LLC co-ownership model offers ownership of a single-family home, not “right to use” time in a condo or resort hotel unit. It’s a true real estate asset in a residential community with a small group of co-owners. The value of the owner’s real estate property asset moves in line with the whole-home market, and owners can sell at a price of their choosing.
Pacaso gives each home an interior design makeover and invests in new furnishings and home technology. In addition to these creature comforts, Pacaso takes care of the ongoing demands of homeownership, like paying the bills and maintaining the lawn. Owners simply show up and enjoy their home.
Using the company’s SmartStay system on the Pacaso app, owners can reserve their home with as little as two days’ notice throughout the year. The app distributes reservations equitably according to ownership percentage and even accounts for holidays. Pacaso luxury homes are located in highly sought-after vacation destinations, and the company is rapidly expanding to new markets.