A new company wants to shake up the ownership model on second homes.
Launching this week, Pacaso (pronounced like the famous artist) was started by a group that includes one of the founders of Zillow.
Here is how it works:
- A person finds a second home that they are interested in purchasing and then the Pacaso team determines if it is a good investment.
- If the property gets the green light, Pacaso then purchases the home through a property-specific LLC designed for co-ownership and then sells a portion of the ownership in the LLC -- between 1/8 and 1/2 -- to the interested buyer.
- Pacaso then finds vetted buyers to co-own the remaining shares of the home.
Pacaso charges a 10% mark-up at the time of purchase and then an annual maintenance fee of 1% of the purchase price. Co-owners can stay at the second home for a time correlated to their ownership share.
"The mission of Pacaso is to democratize second home ownership, a luxury to which millions of American aspire but which seemed previously inaccessible, and is more important than ever as people seek safety, security and serenity amid Covid-19," co-founder Spencer Rascoff said in a statement.
This article originally published at https://dc.urbanturf.com/articles/blog/a-new-start-up-wants-to-help-you-own-a-second-home/17364.
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