Fractional home ownership is not new… but the marketing and attitudes towards it have changed...130

#fractionalhomeownership #timeshare #luxuryrealestate

Deerwood Realty and Friends Podcast

I saw this article on NPR about neighbors banding together to oppose a home purchased by Pacaso, a startup in silicon valley.

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Thoughts:

1. Joint ownership of property isn’t new. It is quite common in commercial property.

2. I put Pacaso in the same space as I do any wall street funded corporation that is set up to buy single family homes. I do believe there needs to be regulation in this area. These companies are not single family homeowners…they should be taxed at the commercial level at a minimum.

3. The argument over whether or not Pacaso is a timeshare is a legal one that will be settled by the courts. I don’t see how it isn’t, but I am not an attorney.

4. Without technology, this isn’t possible. The ability for Pacaso to grow so quickly with this model is something to behold, even if they have strong financial backing.

5. If Pacaso were to stay in the luxury home market, would you have a problem with it? I say that because as I show on my livestream daily, many ultra-luxury homes across America sit vacant for years while listed for sale. If you are a middle class homeowner, how are you being harmed by this company? In some ways, shouldn’t people that have the means to own a second, third, or fourth home be able to enjoy these homes that are honestly sitting vacant?

6. The homeowners in Napa who are protesting have every right to do so. It must be seriously disconcerting to have corporate owners in their neighborhoods. However, this trend of corporations buying single family homes is only accelerating. There seem to be few answers.

7. The business model for Pacaso is a dream for most companies…12% off the top! A typical real estate transaction is in the 5-7% range…and then they get the management fees on top of that!

8. What do you think about Pacaso? Terrible, soulless corporation exploiting single family communities, or an innovative way to structure real estate deals so that more people can be involved in the ownership of luxury properties?

Source: https://www.npr.org/sections/money/2021/08/24/1030151330/a-unicorn-startup-is-turning-houses-into-corporations

https://www.investopedia.com/terms/t/timeshare.asp#toc-types-of-timeshare-ownership

https://www.pacaso.com/faq/neighbor

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