The new price point marks a shift in strategy for the company, which buys homes in the resort market, converts them into LLCs and sells shares to up to eight buyers.
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Vacation home sharing marketplace Pacaso added thousands of new properties to its portfolio of available listings on Tuesday after lowering the starting price of vacation homes on its platform.
Once exclusively catering to high-income families looking to buy an eighth or more of their home equity, Pacasso now offers shares to interested buyers for As low as $130,000the company told Inman.
Pacaso CEO Austin Allison said the shift in strategy opens up new listings across the country as the company begins to offer new services to help more people share their homes with others.
Austin Allison | CEO of Pacasso
“Today, we are helping buyers across the country find their piece of paradise,” Allison said in a statement. “With millions of people aspiring to own a vacation home but facing affordability challenges, Pacasaw’s co-ownership solutions are becoming more accessible through national expansion, enabling more families to enjoy vacation home ownership.”
Pacasso buys homes in the resort market, furnishes them, converts them into an LLC, and sells stock so the owners can use them six weeks a year. Buyers can take ownership of up to half of the home.
The company also offers financing at below-market rates, as well as property management services and resale assistance.
several of them Lower priced listings on Pacasso’s website multiple list service. The company hopes to attract enough interested buyers before purchasing, renovating and reselling it to up to eight owners.
The company refutes criticism that the model is actually a modern timeshare, noting that a timeshare is typically one of many similar units in a resort, while Pacasaw’s homes are all unique.
The company has previously worked to prove the concept of modern fractional home ownership by only purchasing homes that are about twice the price of a neighborhood’s median home. But Pacaso co-founder Spencer Rascoff previously told Inman that the company may eventually shift to offering products at more price points.
“Many of the great consumer-first companies, such as Tesla and Uber, started with premium products and then expanded to more accessible price points and products,” Rascoff said on Tuesday. “Just as Uber started in the U.S. segment Just as the city began growing with the launch of its first luxury product, Uber Black, and then launched many more products globally, Pacaso is now beginning an exciting phase of expansion to revolutionize vacation home ownership across the country.”
Spencer Rascoff | Co-Founder of Pacasso
Pacasso’s growth has not been easy. The company has faced legal action and fights from communities seeking to impose restrictions on companies that promote fractional ownership at the behest of residents facing skyrocketing home prices across the country.
The company has long maintained that its homes are a better fit for communities than full-home vacation ownership, which can be vacant for more days of the year.
“With Pacasso, you can build lifelong traditions in a family and community you know well and have long-term connections with,” Allison said. “That’s something that short-term rentals or other short-term travel options can’t offer.”
As a nod to those who may already own a vacation home but may not be in the market to buy Pacasso stock, the company has also released templates to help convert the home into an LLC to share with others. This template is available for $50, and another template to help develop an operating agreement to manage a property is available for $250.
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Editor’s note: The original version of this story said Pacasso had an ownership stake worth $84,000. The share is for leases the company is processing. Pacasso’s cheapest ownership stake is listed at $130,000.
