Own a house for 44+ days a year and not worry about the rest. Second Home Co-Ownership is when you only pay a part of the property price, for example, 1/8th, and schedule the days you would wish to be there.
The way it works is that Pacaso creates a Limited Liability Company (LLC) and sells shares of that company. The company owns the property, so the co-owners have 100% control of the “company”, worth noting that Pacaso does not keep any shares. Pacaso earns by adding a service fee to each purchase. They also earn some revenue annually. A kind of subscription-based service for managing the property once it has been purchased (specifically $99 monthly fee for management services.).
Scheduling happens through their app using SmartStay technology. You do not necessarily need to own a part of the property to use the app, just browse and look ad super nice houses. One day you might buy it!
You can find them here: Pacaso on Google Play and Pacaso on Apple App Store.
Pacaso is the one who is managing the whole operation (such as furnishings, repairs, utilities, and property management) and you would be the one who owns it (well, a part of it). Owners are responsible for the home’s monthly operating expenses, such as utilities and cleaning. They will help you find the perfect fit, and you decide how many shares you’d like to own.
Here Is How It Looks Like
For example, have a look at this beautiful house that is located in South Lake Tahoe, California. You would have to pay $441,000 to own 1/8th of the property.
Here is what you would be paying for specifically. The price includes home upgrades and closing, Pacaso Service fee (about 10% of the total amount).
The financing is quite flexible. You have to pay at least 50% of the property price and the other 50% can be mortgaged through a home equity line of credit (HELOC), personal line of credit, or competitive-rate mortgage offered in partnership between Pacaso and our banking partners such as First Republic Bank.
If one person defaults (basically quits the partnership) then Pacaso steps in as guarantor and resells the share.
How Does The Scheduling Happen Between Multiple Owners
Owners can use the app to book stays in real-time. The stay can be booked from 2 to 42 nights, depending on how much ownership share you have. You can reserve days for up to 24 months in advance. The maximum of stays registered at one given time is from 6 to 24+ (depending on shares). The reservation must be registered at least 2 days before arrival. More about scheduling can be found here.
The property is never rented, only the owners and guests can have a “stay-over”. If you need any help or information you can talk to Pacaso’s home concierge or to the third-party property manager.
Would You Try It?
It is definitely something to consider, there is no need to worry about the property management. If you only visit your second home once in a while then this is perfect for you.
There are some unanswered questions though, how is the personal stuff managed? How easy is it to get the property for yourself on popular dates?
The houses, locations are just so good though. Just by looking at those high quality photos and videos makes your mouth drip!
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