Offering an alternative to the dated time-share model for getting into Colorado resort town real estate, Pacaso recently began operations in Aspen, Vail and Breckenridge.
The company’s platform is to buy and manage high-end resort homes, then sell shares to a small number of investors.
For example, the company has a home listed in Breckenridge that costs $3.99 million. Buyers can get a share of it for $593,000.
Officials are also touting the model as more community friendly than short-term rental properties.
“Pacaso makes it possible for a small group of families to co-own a luxury second home together in an area they will visit year after year. Our vetting process and strict rules prohibiting short-term rentals mean that communities gain a small group of invested families with each home,” said Allison.
The company operates in more than 25 “top second home destinations,” including Lake Tahoe; Miami; Park City, Utah; and Malibu, Calif.
Using data from Optimal Blue, Pacaso notes second home mortgage rate locks, a proxy for transactions, have increased 10.2% and 9.8% from last summer in Summit County and Eagle County, respectively. Breckenridge is in Summit, Vail in Eagle.
“I’m confident that Pacaso is going to fundamentally change second home ownership,” said Boulder-based 8z Real Estate Founder and CEO Lane Hornung in a statement.
Hornung is a Pacaso partner agent in Colorado.
“Pacaso fills a need in the market by opening up new inventory, and likewise helps more second home buyers afford luxury homes,” he said. “Many families who purchase a luxury home through Pacaso were previously competing with local primary home buyers for more moderately priced homes. The Pacaso model just makes sense: right-size your ownership and up-level your buying power.”
Pacaso pays agents a 3% referral commission, and restricted Pacaso stock options “as a referral equity bonus.”
The company has hired 10 Colorado employees and will look to hire more as the number of properties increases, according to a spokeswoman.
Pacaso was founded by former Zillow executives Allison and Spencer Rascoff.