Discovering Pacaso...

Okay, we learn something everyday… Yesterday blog about a time-shared home for sale shouldn’t have been news for me, had I known about the company that started it all, Pacaso. You correctly read, “Pacaso”, not “Picasso”. 

This is a totally different art form as it’s in fact just a real estate broker that buys single-family homes and sells them to multiple buyers. The San Francisco–based company claims it reached unicorn status faster than any other USA-based company, meaning that it already boasts a total valuation over $1 billion.

Started in October of 2020 in Silicon Valley, it’s now active in nearly 50 markets in the U.S., Spain, the U.K., and Mexico. 

Its business model works as follows. Pacaso operates by purchasing residential properties and then selling shares of the home to up to eight buyers. The company reports earning a twelve percent service fee on the sale of a share in addition to an ongoing monthly asset-management fee. 

The organization claims that its model differs from the traditional timeshare model because purchases count as real estate acquisitions and are supposed to appreciate in value. If there’s indeed appreciation and if they wish, buyers can sell their share after 12 months of ownership. 

The company’s approach is highly controversial and has been welcome with mixed result in a large number of communities as some fear it will drive up price of existing real estate and increase visitation, crowding and traffic. 

Those are valid points that are also antithetical to the purpose of a mountain resort...