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Real Estate Startup Pacaso Hits $1B in Transactions, Opens Investment to Everyday Buyers

New York, NY, USA
May 11, 2025 1 Positive I want money/finance advice
Real Estate Startup Pacaso Hits $1B in Transactions, Opens Investment to Everyday Buyers

Pacaso, a venture founded by former Zillow executives, is shaking up the $1.3T vacation home market by offering fractional ownership of luxury properties. The startup recently surpassed $1B in real estate transactions, helping over 2,000 buyers co-own high-end homes across 40 popular destinations. Under Pacaso’s system, each property is divided into shares—owners get usage rights and split maintenance fees, with Pacaso handling management. Major investors like SoftBank and Greycroft have backed the firm, which just reported a 41% jump in gross profits last year to over $110M total. Now, Pacaso seeks smaller investors at $2.80 per share, hinting at the possibility of broader retail involvement in a market once accessible primarily to the wealthy.

What this means for you:
If you’ve dreamed of a second home but balked at the full cost, fractional ownership can lower the barrier—just review your usage rights and potential fees.
Investors seeking portfolio diversification might explore real estate shares, but note any liquidity constraints and how resale is handled.
A co-owned property means coordinating usage schedules; clarify how disputes or major decisions (like renovations) are managed.
In the meantime, watch how consumer-protection laws evolve around this emerging co-ownership model—understand your rights before signing.

Key Entities

  • Pacaso: A real estate startup co-founded by Spencer Rascoff and Austin Allison, both formerly at Zillow.
  • Zillow: Popular online real estate marketplace, known for providing home value “Zestimates.”
  • SoftBank, Greycroft: Major venture investors with stakes in Pacaso, underscoring confidence in shared ownership’s potential.
  • Fractional Ownership Model: Buyers purchase partial ownership in a home, splitting time and costs under a professionally managed structure.

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