Second Home Buyer FAQs | Pacaso (2024)

The buying process, explained

Learn how Pacaso makes it simpler for buyers to co-own a luxury second home.

We've modernized and simplified the decades-old practice of DIY co-ownership. Watch our video to learn how owning property in a fully managed LLC allows you to enjoy the benefits of second home ownership without all the hassles.

Get your questions answered

• Do I really have ownership in the home?

  Yes. Owning a Pacaso is true real estate ownership. You purchase a share in a property-specific LLC. The home is fully managed and designed specifically for co-ownership.

• Can I finance my purchase?

  Yes. We have integrated financing available to offer our buyers. You also are welcome to use other sources of capital such as home equity financing or cash.

• What are the types of listings on Pacaso?

  Buyers shopping on Pacaso.com and the app will now see the following listing types: Available Now homes and third-party listings, which may include whole homes.

  • Pacaso homes (Available Now) are fully furnished and professionally designed Pacaso properties that are stay-ready and can be purchased now for immediate usage and enjoyment.
  • Listings are homes that the company is considering for purchase based on buyer interest.
  • Select listings may display whole home pricing in certain markets to comply with local MLS rules. For more information on co-ownership pricing, financing and more, submit your interest on the lead form.

• Why are some listings presented as ⅛ ownership, and others are a full-home?

  Select listings may display whole home pricing in certain markets to comply with local MLS rules. For more information on co-ownership pricing, financing and more, submit your interest on the lead form.

• How are the whole home price and co-ownership share prices estimated?

  See Also

  Pros and Cons of Owning a Second Home - Ewing & Clark Inc.Tax Breaks for Second-Home OwnersHow Startup Pacaso Reached $1 Billion ‘Unicorn Status’ by Bringing Affordability to the Second Home Ownership MarketSecond Home vs. Investment Property: Key Differences

  The whole home price is calculated using market list pricing found on other third-party platforms.

  The 1/8 ownership price includes an estimated markup that covers Pacaso’s hassle-free ownership experience. This includes design and furnishings, legal, service and home management fees, and more.

• Does this work like a regular real estate transaction?

  Yes. The legal forms and closing process are similar to a standard home purchase. We partner with local real estate agents and pay buyer's agent commissions.

• How do I schedule time to enjoy my home?

  You book time using the Pacaso app, powered by our SmartStay™ scheduling system. It’s easy to use and equitable for owners, based on the number of shares you own. The system supports two types of stays: advance and short-notice. Advance stays are scheduled 8 days to 24 months in advance, and each owner has access to an advance stay that falls on a special date (e.g., federal holidays and popular local events). Short-notice stays are booked 2 to 30 days in advance of arrival. (Note: For homes with unsold shares, the short-notice booking window is 2-7 days in advance of arrival.) See additional scheduling FAQs for more details.

• Is Pacaso a timeshare or fractional company?

  Pacaso helps people buy, own and enjoy a true real estate asset. Most timeshares, in contrast, sell the right to use a fixed amount of time in a condo or hotel shared by dozens of people. These units are notoriously hard to sell due to a supply and demand imbalance. Pacaso brings together a small group of co-owners to purchase a share of a single-family home and enjoy ongoing access. Pacaso handles all management details, provides full transparency on LLC operating expenses, and facilitates a seamless resale on the open market once homes have been fully sold.

• Is LLC co-ownership new to real estate?

  Owning real estate with others in an LLC is not a new practice. However, “DIY” LLC co-ownership is a headache to set up and a hassle to manage, especially when personal relationships are involved. Pacaso’s fully managed LLC co-ownership is a technology-enabled real estate ownership solution that removes the interpersonal stress and operational hassle of going at it alone.

• Is Pacaso the same as a Tenancy in Common?

  No. Pacaso ownership is structured through an LLC. Owners purchase a share in the LLC, which holds the deed to the home. This structure provides Pacaso owners with protection, privacy and flexibility. A Tenancy in Common is a specific type of ownership format with deeded ownership for each partial individual owner.

• What monthly costs will I have to pay as a Pacaso owner?

  We budget for owner expenses annually and break the total into 12 monthly payments. Costs are shared between owners pro rata, based on the number of shares they own. Monthly payments are deposited into the LLC account, and Pacaso uses the funds to cover expenses as needed. Monthly costs cover property management, preventative and routine maintenance, utilities, taxes, contributions to the reserve fund, and other expenses. Learn more about co-ownership costs.

• Apart from the Pacaso app, what services does Pacaso provide after the sale is closed?

  Pacaso manages all aspects of homeownership, including: direct property management, or choosing and overseeing the property management company in select markets; maintaining the LLC and resolving any disputes between owners or the municipality; continually innovating and improving the Pacaso app and other digital technology to help homeowners schedule more efficiently; and providing K-1 tax forms and handling property tax payments.

• Can owners rent out their time on Airbnb or similar sites?

  No, owners are not permitted to rent out or sell time on vacation rental sites or other public rental listing services. All guests must be registered and have the Pacaso app on their phone to access the home.

• Does Pacaso manage each home directly?

  See Also

  Second home vs Investment Property: What's the difference? | Better Mortgage

  Yes. We manage the LLC and the property, and in select markets we engage local third-party property managers on behalf of the owners. When working with trusted partners, we’ve established a technology-enabled feedback loop between owners and property managers to ensure communication is streamlined and quality is exceptional.

• Will I get to meet the other owners?

  To maintain privacy for owners and their families, we do not facilitate meetupskeep all owner information confidential and . Our owners have also given feedback that not knowing other owners makes for a more seamless and hassle-free experience.

• Do I need an agent to buy a Pacaso?

  An outside agent is not required to purchase a Pacaso. We will be happy to assist you through the purchase process if you don't have an agent. If you do have a real estate agent, feel free to let us know as you start the purchase process.

• Who furnishes the home?

  As a service to owners, Pacaso works with professional interior designers who decorate and furnish the home to suit its unique style and location. Our goal? To create luxurious surroundings for effortless living. We think you’ll love the modern finishes, smart tech and beautiful décor. Each home is meticulously well-appointed with everything you need to cook, relax and play, so you can just show up and enjoy your time.

• What if one of my co-owners misses a payment, or gets behind on their bills?

  Don’t worry — you are protected. As the manager of your home’s LLC, Pacaso will assume financial responsibility if an owner defaults on payments. This is one of the benefits of our ownership program.

• What if another owner damages the home?

  We find that owners exhibit true pride of ownership and typically leave their home in excellent condition. To ensure a quality experience for every owner, homes are inspected after each visit. Any damages beyond regular wear and tear are charged to the owner who was using the home at the time.

• What if I want to sell my ownership interest in the home?

  If the other shares in your home are fully sold, you can sell your ownership at any time — plus, you set the sale price. We have an active network of interested buyers, and the home will also be listed on Pacaso and other websites, and promoted across our marketing channels.

• Does my share increase in value if the home appreciates in value?

  Yes, as a true owner, any equity gains realized are yours.

• Can I keep personal items at my home?

  Yes. Each owner has designated storage space for personal items.

• Can I bring pets to the home?

  Yes. Owners may bring up to two dogs to their home, with some restrictions.

• What Pacaso policies must owners adhere to?

  All Pacaso owners must adhere to our owner Code of Conduct. For example, Pacaso owners are prohibited from renting out their homes or hosting events that would be disruptive to the neighborhood.

• Who will be responsible for lawn and home maintenance?

  Pacaso manages these details, including landscaping, tree trimming, gutter cleaning and pool maintenance, through locally hired professionals.