Aspiring second home owners rejoice!
Former CEO and co-founder of Zillow Spencer Rascoff and dotloop founder Austin Allison teamed up to create Pacaso, a startup that wants to make buying a second home easier and more cost-efficient.
How does it work?
The general idea is that Pacaso utilizes its resources to find your dream house and then goes in at least half of the price/ownership, depending on how much you plan on utilizing the home.
Then, all you have to do is sit back and enjoy your property as Pacaso takes care of the maintenance and other dirty details. Pacaso’s ultimate goal is to sell their share of the house to other vetted home owners.
For example, if you worked with Pacaso to buy 50 percent of a beautiful beachfront house, Pacaso would pay for half of the purchase and have a claim to half of the ownership. Then, they’d find other buyers to purchase shares of the house, ranging from a half to an eighth of ownership.
The Pacaso app’s scheduling algorithm figures out how much time each owner gets at the house depending on the size of their share. You can submit special request dates such as holidays, birthdays and anniversaries.
What are the pros of buying with Pacaso?
One way that working with Pacaso benefits buyers is that it doubles buying power. Whatever your budget is, buying with Pacaso exponentially increases it, opening the door to stunning properties that weren’t possibilities on your own dime.
Another key advantage is the removal of typical second home ownership hassles, such as overall maintenance, organizing random short term renters or paying bills.
What inspired this startup?
The idea for Pacaso was born out of a simple deficiency that the founders noticed in the second home real estate market.
“Ten million people own second homes in America. Most of them sit vacant for 11 months of the year. Meanwhile there are tens of millions of people that aspire to own a second home, but can’t afford it,” Allison told Fortune.
Particularly as a result of the COVID-19 pandemic, the demand for second homes is steadily outpacing supply. Pacaso’s structure enables more people to enjoy the joys of a second home while only paying for the amount of time they actually want to spend there.