Woman at the poolside

 

I was recently introduced to Pacaso — a new way to buy a second home and for only for 1/8 the price! So I’m very excited to team up with them to share more details with you and give you a peek at this dream house called Skyward. Here’s how Pacaso works and how you can buy a vacation home in Palm Springs — and other top locations like Malibu and Napa — for way less…

Won’t you be my part-time neighbor?

Buy a Vacation Home in Palm Springs for 1/8 the Price with Pacaso!

Woman wearing yellow dress in the poolside of a vacation home in palm springs

First, a little background…

Pacaso was started by the founders of Zillow. The founders were lucky enough to have second homes and realized how additive it was to their lives. But they also saw how inaccessible it was to most people (re: too expensive). Not to mention, most vacation homes in Palm Springs on any other locations are only utilized 1-2 months a year, which is such a waste.

Their solution? Pacaso.

 

Woman wearing a bright yellow dress walking at the poolside

So how does it work?

Pacaso curates listings in top second home markets like Palm Springs, Napa, Los Angeles and Tahoe (they’ll be expanding east and internationally soon as well). These are luxury homes in top locations.

 

Woman with her dog lounging at the poolside of a vacation home in palm springs

Okay, then what?

Once you find a property you like, you essentially buy a share — 1/8 or up to 1/2 of the home.

The property I am at here is called Skyward and it’s GORGEOUS.

For reference, to buy a 1/8 share of this vacation home in Palm Springs, the price is $278,000 (the whole home list price is $1.8M). So that’s a nearly $2M home for under $300k.

Yes, please!

Woman wearing a red dress and holding her dog

Some quick math…

That gives you 44 nights a year in this vacation home in Palm Springs (i.e. an investment that you OWN).

And since you own it, that means you can also sell it later, if you wish.

And as for when you can use the house, they have professional management and technology to make scheduling dates and owning the home seamless and equitable.

 

Woman sitting at a kitchen countertop in Vacation Homes Palm Springs

It’s such a compelling model and the way of the future, IMO.

Intrigued? Me too!

A few more highlights:

– They also offer integrated financing.

–  All of the homes are professionally and beautifully decorated.

– Best of all, they take care of all home maintenance like pool service, yard maintenance, cleaning, etc. so it’s like all of the great parts of having a vacation home, minus the headaches of owning a home.

 

A woman wearing a swimsuit and lounging at the poolside

Have more Qs?

I’m sure you have more Qs, as I did, so I’ve included a Q&A with Pacaso’s CMO Whitney Curry below.

If you have any other Qs or just want to browse listings, visit Pacaso here!

 

A Q&A with Pacaso’s CMO

 

  • How does Pacaso work?

    • Buyers shop from a curated set of second home listings on Pacaso. Ownership is sold in ⅛ shares with integrated financing available. Pacaso creates a property LLC for each home, finds and vet co-owners, and handles all the sales details. At closing, the co-owners enjoy 100% ownership of the home – Pacaso does not retain any shares. The company manages everything for its owners – from interior design and property management and bill pay and repairs.

  • How does Pacaso contribute to the local community?

    • Pacaso’s owners-only model supports local communities with an alternative to transient short term rentals or absentee whole-home owners. Pacaso owners are invested in the local community as property owners, and visit their home throughout the year. Owners also sign a code of conduct and agree to its good neighbor policy.

    • Pacaso is an invested local employer, supporting an average of 10 local businesses per property (e.g. real estate agents, property managers, cleaning companies, etc.)

  • Is LLC co-ownership new? 

    • No, it’s been around for decades. Many people own second homes with friends. According to our survey, nearly 10% of 2nd home owners co-own with another family. However,  DIY LLC 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. 

  • What types of homes does Pacaso purchase? What makes a home “Pacaso worthy?”

    • We look for single family  homes in popular second home destinations that are turnkey with relevant local amenities. Today, Pacaso homes are typically 2-3x the median home value in an area, although we intend to expand the price points we buy over time.

    •  Pacaso works in partnership with local real estate agents and pays full buyers agent commissions. 

  • How do you make sure only the owners use the house?

    • All guests must be registered and have the Pacaso app on their phone to access the home with an individual door code. 

  • Who furnishes the house? Do owners get a say?

    • 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.

  • How does scheduling work?

    • Our innovative scheduling software, SmartStay, is managed by a series of rules and algorithms in the Pacaso app. This enables owners to seamlessly book stays in their Pacaso 2 days – 24 months in advance. The system caps  the number of advance and special date (i.e. holiday) reservations an owner can hold at one time.  Additionally, owners can take advance of short-notice stays are made 2 to 7 days in advance of arrival. 

    • Additional details

    • Advanced stays are made 8 days to 24 months in advance, and each owner has access to an advanced stay that falls on a special date (e.g., federal holidays). Short-notice stays are made 2 to 7 days in advance of arrival. 

    • Over time, the SmartStay system will learn each owner’s stay preferences and make suggestions for dates you may enjoy.

  • What if I can’t get the dates I want?

    • If you are not able to secure a specific special date (e.g. Labor Day) this year, our 24-month stay calendar allows you the opportunity to request the date in the future.

    • Our data shows that not all owners in a home have similar stay preference and usage habits (e.g. some owners prefer the shoulder seasons for less traffic) which results in a balanced owner group and well-utilized home.

    • Anecdotally, we hear owners saying they get ~80% of the dates they desire for ~80% of the cost. It’s a win/win.

      Does Pacaso manage each home directly?

      • We identify and work with local third party property managers, and manage them on behalf of the owners. This enables Pacaso to support the local economy and delight owners with an on-the-ground expertise.

      • How does Pacaso’s relationship with property managers work?

        • We identify and work with local third party property managers, and manage them on behalf of the owners.

        • We have a 360 feedback loop between owners and property managers to ensure quality is exceptional.

          If I want to sell my part of the home, how does that work?

          • Any owner can sell their share(s) after owning them for 12 months. Once an owner decides to sell, they notify Pacaso and Pacaso offers the other owners first right of refusal.

          • If the other owners decline, Pacaso will work with a real estate agent to market the fraction of the home for sale, both on pacaso.com and on other real estate websites. 

          • Once a buyer is secured, that buyer will purchase the seller’s share of the LLC in a transaction facilitated by Pacaso. 

Photos by Fred Moser

Thank you to Pacaso for teaming up on this post!

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