[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Pacaso.]
Nearly ten million second homes sit unoccupied for 11 months a year in the U.S. while millions of people dream of owning and vacationing at a second home. Pacaso is seeking to change that statistic through a fully managed LLC co-ownership model that allows second home buyers to acquire one-eighth to half of a home. The company creates a property LLC for each home, finds and vets co-owners, and handles all the sales details. At closing, the co-owners enjoy 100% ownership of the home – Pacaso does not retain any shares, though it does handle the property maintenance, management and turning the home in between visits.
Stays are determined by ownership percentage, and scheduled using its SmartStay system through the app.
Timeshares give families a consistent vacation destination to spend a couple of weeks of the year. However, they are largely located in condos/hotels and are only available for fixed weeks. With Pacaso, owners purchase real ownership stakes in single family homes, allowing them to benefit from appreciation gains while being able to sell on the open market when ready to exit the investment
What we like: Basically, only mega-millionaires can currently afford the high-end second homes listed on the site. Millionaires have that life now. But literally everyone aspires to own a vacation home for weekends or holidays. The price point will have to come down, but there’s no doubt it will as the company streamlines its operations and increases its footprint. I suspect it’s also only a matter of time until Pacaso adds home-sharing and vacation rentals on top of its inventory. Part of improving accessibility will require utilizing and monetizing assets when they are not in use by the primary owners.
And the holy grail, there will be a segment of the population in the future that doesn’t own a primary residence but instead owns shares of multiple Pacaso’s.