These unregulated transient-use vacation homes are located in our residential neighborhoods, which is a violation of our Municipal Code. Pacaso’s fractional ownership vacation home on Valley View Street has been the subject who owns uzzu tv of numerous noise complaints by neighbors. Two more Pacaso vacation homes are for sale, one on Madrona Avenue and the other on Hillview Place. And two more are under development on Kearney Street and Riesling Way.
Again, thank you for reaching out – the team is always here for you. Pacaso’s proprietary booking system makes scheduling easy, equitable and flexible. It’s equitable because everyone can hold only one of the highest-demand dates at a time and it’s flexible because you can book general stays well in advance or short-notice stays a week before you arrive.
This is a valuable product with high LTV, but it’s better when you consider that “exit” may not come for many years. Unless all of the co-owners decide to sell the home together to a single buyer — which they could and should if it makes sense — all other sales would be of specific shares being sold by specific owners. Pacaso would manage those transactions and continue to earn commissions on future share sales.
The difference, however, is that you own part of the home, which can appreciate in value. Stays booked between 61 days to two years in advance qualify for up to six general stays per one-eighth share. That means one-half shareholders get up to 24 general stays. Pacaso handles all the details for homeowners, including finding properties, professionally decorating them, handling maintenance issues, and managing each owner’s time. This can take the headaches of homeownership out of the equation.
This type of ownership is not new to real estate practitioners who practice on South Carolina’s coast. For sale signs for beachfront houses touting “Interval Ownership” are common. In fact, intervals in these homes seem to be perpetually for sale. Although this model may feel similar to a timeshare, the difference is that you actually own the home, not the right to use it for a specific period each year. You can also sell your ownership interest after owning it for at least 12 months. Homes managed on the Pacaso platform generate revenue at initial sale, throughout the ownership period, and at exit.
This could result in a profit if the property appreciates. You also have access based on when you can schedule time rather than the generally more limited booking options timeshares offer. Finally, you can sell your LLC interest in the property after one year to anyone that qualifies, unlike timeshares, which are difficult to sell and usually end up getting sold back to the resort. Pacaso vets all prospective buyers before they’re allowed to purchase part of an LLC. Part of the process includes agreeing to an owner code of conduct that includes common-sense rules, such as quiet hours from 9 p.m.
And, I’ve seen too many instances where the second home owners spend so much of their time on upkeep and maintenance, not enjoying their time away from daily life. The entire process from start to finish was made easy. They were organized and had the details well thought out, which made the home buying experience enjoyable. When Crosscut invests this early, we look for experienced management teams in industries where we have a thesis. Given Austin’s and Spencer’s experiences founding Dotloop and Zillow, respectively, it was clear the unfair advantages this team had in this category were second to none.
