Episode 307: What is Pacaso?
In the 307th episode of Mail Right Show, Jonathan Denwood and Robert Newman discuss Pacaso and their business concept. Robert Newman founded Inbound REM, an inbound marketing agency, and is a 14-year real estate SEO industry veteran. On the other hand, Jonathan Denwood is the creator and CEO of Mail Right, a platform that combines various digital tools into a single, user-friendly package. The podcast explores the most successful lead generation strategies available to organizations.
What is Pacaso?
Pacaso is one of the fastest-growing corporations in the United States of America in 2021 and is also one of the most contentious. Founded by two former Zillow executives, they have succeeded in uniting entire communities in opposition to them in a way never seen before.
Pacaso is a Silicon Valley-based company focused on luxury shared vacation ownership. Pacaso is the most similar idea to fractional real estate ownership in that it offers a share of ownership in a property to split costs. Each owner owns an equal piece of the property and is jointly and severally liable for maintenance and taxes. Depending on the number of owners, fractional ownership may allow for varying weeks of access to the residence.
The company acquires single-family houses in upscale communities with one-of-a-kind properties rather than cookie-cutter condos and townhomes. They outfit and decorate each property with luxury furnishings and cutting-edge technology, utilizing the services of experienced interior designers. They then sell each property’s subdivided ownership to a maximum of eight owners, who each purchase a piece. A single share entitles you to around 44 stay nights each year. Additionally, you are guaranteed one “special date” every year as a shareowner, which may include Independence Day, Christmas, and other government holidays. If buyers desire a more significant portion of ownership, they may purchase up to four shares, thus owning half of the home.
People’s Response to Pacaso
People in the neighborhood were shocked when they learned of Pacaso’s business approach. Many were enraged, believing that these individuals planned to drive all ordinary people out of their communities. They think that by doing so, they will turn these locations into ghost towns, where nobody will live for the most part. They perceived the venture capital-backed enterprise as invading their neighborhood and transforming their neighbor’s home into a revolving carousel of visitors. They envisioned an endless parade of parties, noise, and automobiles crowding their cul-de-sac. They were concerned that guests staying at “Chardonnay” might travel too quickly and ignore local warnings about flames and drought. They feared, above all, that the Pacaso mansion and others like it would erode their sense of community and transform their neighborhood into an “adult Disneyland.”