How to Buy a Second Home with Pacaso

Buying a second home through Pacaso provides a modern, hassle-free way to own a luxury vacation property at a fraction of the full cost. Here's how to purchase a second home with Pacaso:

What is Pacaso?

Pacaso enables co-ownership of luxury second homes. Instead of purchasing an entire property, you buy a fractional share—typically ranging from 1/8th to 1/2 ownership—allowing you to enjoy a vacation home without the full financial responsibility. Pacaso manages the property, taking care of all maintenance, scheduling, and logistics.

Steps to Buy a Second Home with Pacaso:

1. Browse Homes

Pacaso Listings: Explore Pacaso’s curated portfolio of luxury homes in desirable vacation destinations. These homes are split into shares, and each share represents partial ownership.

Third-Party Listings: If you have a specific property in mind that isn't part of Pacaso's portfolio, you can suggest it to Pacaso. They will evaluate its suitability for co-ownership and, if approved, manage the acquisition and integration.

2. Select Your Ownership Share

Fractional Ownership: Choose how much of the home you want to own. Typical ownership shares range from 1/8th to 1/2, and the size of your share determines how many days you can use the home annually.

Costs: Purchasing a 1/8th share of a luxury property, including the cost of furnishing and integrating the home into Pacaso’s network, typically costs around $550,000. This price covers your share of the home, furnishings, and operational setup.

3. Understand the Co-Ownership Model

LLC Structure: Pacaso forms an LLC for each property, with co-owners holding shares in the LLC. You own real estate as an asset, making it different from a timeshare.

Fair Scheduling: Pacaso’s scheduling system ensures that all co-owners receive equitable usage of the property. The system rotates priority during peak times to ensure fairness.

4. Finalize the Purchase

Purchase Agreement: Once you choose your home and ownership share, you’ll enter into a purchase agreement. Pacaso handles the entire closing process, including legal documentation, financing (if applicable), and setting up the LLC for co-ownership.

Closing Costs: The closing process includes costs for furnishing the home and integrating it into Pacaso’s management system, all of which are factored into the purchase price.

5. Pacaso Manages the Property

Full-Service Management: After closing, Pacaso takes care of all property management needs, including maintenance, repairs, cleaning, and scheduling. You pay a monthly fee to cover these services, making ownership hassle-free.

Furnishing and Upkeep: The home is fully furnished by Pacaso to luxury standards, ensuring it’s move-in ready. Pacaso also manages ongoing maintenance, property taxes, and insurance.

6. Enjoy Your Second Home

Usage Rights: Your ownership share gives you access to the property for a set number of days each year. For a 1/8th share, this typically translates to about 44 days of use. The scheduling app ensures fair distribution of time, including during peak seasons.

Fully Furnished Luxury: All homes are professionally furnished, so you can enjoy your stays without the need to worry about decorating or setup.

7. Reselling Your Share

Resale Process: If you decide to sell your share, Pacaso assists with the resale process. You can list your share at market value, and Pacaso helps connect you with potential buyers.

Market Appreciation: As with traditional real estate, your share may appreciate or depreciate in value depending on market conditions. You’re free to sell after the first 12 months of ownership.

Conclusion

Buying a second home with Pacaso offers a unique and accessible way to own a luxury vacation property without the full financial commitment. With fractional shares starting around $550,000 (including furnishing and integration costs), you can enjoy the benefits of owning a high-end home in a prime location while Pacaso handles all the management and logistics. Whether you choose a home from Pacaso’s portfolio or bring in a third-party listing, the process is designed to be convenient, flexible, and enjoyable.