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Proptech startup Pacaso is taking its public relations strategy to the next level. The San Francisco-based company helps people buy the second home of their dreams with a co-ownership model that has sparked a lot of controversy in some places. While the general perception of Pacaso is a belief that it contributes to the housing crisis, Pacaso is showcasing its model as part of the \u201csolution.\u201d

Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.

Pacaso has caused a dust-up in several places as full-time residents fight back against short-term rentals. Many critics see Pacaso through this lens, but it\u2019s not a short-term rental operation.

Instead of renting the home out to a stream of different occupants over the days, weeks, months, and years, Pacaso homes are purchased by up to eight buyers and each buyer gets to use the home for a percentage of the year that corresponds to the buyer\u2019s percentage of the purchase price. Pacaso manages and maintains the home, but the people who use it are co-owners, who use it on a continual basis. (1)

Pacaso as Part of the Solution

The message that Pacaso is currently trying to convey is that many people own second homes that sit empty and unused for 90% of the year. With the current shortage of available homes, Pacaso points out that the typical second-home approach is wasteful. It says that co-ownership can help reduce that waste by combining the use of up to eight second homes into one home that has as many as eight owners.

As Pacaso\u2019s vice president of public affairs, Colin Tooze (tooz), said in a press release: "One significant, but less-discussed, contributor to the housing crisis is a wasteful legacy model of second-home ownership. While no company can solve this complex set of problems on its own, Pacaso offers a sustainable alternative that combines multiple families into one luxury home." (2)

Pacaso also claims that the co-ownership model provides significant benefits to the community in the form of economic activity that is ten times what you\u2019d get with the typical second home. But Pacaso says it is still working on ways to publicize its value, which is why the company recently announced the formation of a bipartisan government advisory board.

Formation of Government Advisory Board

Pacaso says it\u2019s a priority to work collaboratively with elected officials, and the board will help the company do that more effectively. Among the inaugural members of the board are current and former elected officials from major metros around the country, including:

1 - Steve Benjamin (Chair), Former Mayor of Columbia, South Carolina, and past President of the US Conference of Mayors

2 - Steve Adler, Mayor of Austin, Texas

3 - Michael Hancock, Mayor of Denver, Colorado

4 - Danny Perez, Member, Florida House of Representatives

5 - Alexis Podesta, Former California Secretary of Business, Consumer Services, and Housing

In a statement issued by the board chairman, Steve Benjamin, says: \u201cPacaso\u2019s innovative second home co-ownership model is a value-add to communities across the United States,\u201d said Steve Benjamin, former Mayor of Columbia, SC and past President of the US Conference of Mayors. \u201cPacaso consolidates second home demand into fewer homes, taking pressure off of housing inventory for first-time home buyers and middle class families. This is the thoughtful and sustainable approach to housing we need right now, and I\u2019m proud to help advise the company as it works to bring this model to more communities.\u201d (3)

Pacaso Reached Unicorn Status in Six Months

Pacaso launched in October of 2020 as demand for second homes skyrocketed during the pandemic. As reported by Fortune, it reached unicorn status just six months later. That means it was worth more than $1 billion in just six months! Tooze told Fortune that he wants Pacaso homes to be good neighbors, and the board will help solve any challenges. He says: \u201cIf that helps us be more thoughtful in how we approach solutions that address the needs of the company and communities where we operate, everyone wins.\u201d (4)

You\u2019ll find a link to the Pacaso articles in the show notes at newsforinvestors.com. If you\u2019d like to learn more about owning single-family rentals in growing markets around the country, please hit the join link on our website. And please remember to subscribe to our podcast, and leave a review! It will help make us more visible on podcast platforms.

Thank you! And thanks for listening. I'm Kathy Fettke.

Links:

1 -https://www.pacaso.com/?utm_source=google&utm_medium=Paid_Search&utm_campaign=IV_G_Brand_Search_Trademark_US&gclid=Cj0KCQjwmdGYBhDRARIsABmSEeMLqsfM0Xrakmhe3TXbxXKnbi-9-xd6FMRwUp8NAWa8l6dQ9Ae0dLsaArCzEALw_wcB

2 -https://www.prnewswire.com/news-releases/pacaso-announces-government-advisory-board-301592515.html

3 -https://www.pacaso.com/blog/pacaso-government-advisory-board

4 -https://fortune.com/2022/09/02/modern-board-pacaso-second-homes/