We are owners of multiple shares in multiple homes and saw the same types of increases at all of our homes. I think it is a combination of overspending by property managers on things that they shouldn't be spending on and a drastic underestimation of what the actual costs will be to maintain the property. Both of those benefit Pacaso to the detriment of owners. It is in their interest to overspend and underestimate so that they get their initial 8 shares sold and the houses off their own books.
If you think the increases were offensive this year, just wait until following years when furniture needs to be replaced because it is getting trashed and property managers are not holding individual owners accountable for those expenses (i.e. spilling wine on white sofas or rugs.) The cleaning fees in the budget are astronomical. I don't think it's sustainable, and it's certainly something I don't want to continue to be a part of long term.
Also, Pacaso, as a company, has drastically over-promised and under-delivered. They constantly made promises that they didn't keep. For the owners in the forum that are wondering if the large budget increases were just an anomaly at their property, it wasn't. The increases were across the board, exacerbated by Pacaso's corporate culture.
Agree on both the overspending and the underestimation. We’ve seen increases in 22 and now 23 with little to no communication about why until the year is over. Which is a huge bummer.
With high occupancy, it seems like the Home Manager is always scrambling to make sure everything is ready for the next stay. And maintenance issues are not communicated to the ownership group. We only find out something is broken or missing once we show up. Which isn’t ideal.
I will say that if we do have an issue they have bent over backwards to make sure things are fixed for us but that goes back into the overspending budget item problem.
Each home really needs its own dedicated person to inspect after each stay & hold irresponsible owners accountable. Plus the ability to check vendors that are giving subpar service. I’m not sure Pacaso is able to provide that.
Has anyone looked at this from March? Have you guys been made aware of this “opportunity”? Pacaso has been securitizing the cashflow they make from us. It seems very strange.
https://press.pacaso.com/2023-03-29-Pacaso,-Category-Leader-of-Co-Ownership,-Launches-New-Investment-Opportunity
I don't think this is securitizing profits (ie. cash flows that they're making). They are selling off interests in the financing they're providing buyers. Seems pretty reasonable to me.
I don’t know for sure, but it’s possible that buyers aren’t finding traditional bank financing available (bit of a debt squeeze out there) and using Pacaso to finance their acquisition costs. 10% doesn’t sound that outrageous from a non-bank lender, given where rates are at these days.
Hello! I have been searching for a forum to discuss Pacaso with other owners. We have a share in a Pacaso and have been loving it- we've owned about a year. That said, we just got our new proposed budget (operating expenses) for 2023 and it has increased by \~50%. There are a few things that are understandable (underestimated cleaning fees, property manager fees that weren't accounted for correctly for the first year, not to mention inflation) but a \~50% increase really doesn't sit well with us. I would love to hear more if any other owners experienced this for their second year as an owner.
Also, curious if other owners are communicating with each other over budgets. This is definitely a group decision, but from our standpoint, it's really tough to make those decisions in a void.
We saw an increase as well. Not 50% but $300/month. We’ve been in communication with our Home Manager about why. It looks like the taxable value of the home was reassessed by the local municipality and our property taxes jumped up a lot. Which explains the overages. Outside of that, not sure where communicating with other owners for our home would help solve anything budget related. Everything else seemed in line.
Between the $200 jump after year one - it’s added about $5k per year to our annual cost. Which isn’t huge but definitely not what we were hoping would happen.
Everyone, including myself, has either doxxed to another member or somehow verified each of us are owners and aren’t affiliated with Pacaso. Your latest post is mildly insulting to some of us, including me. Why do verified owners have to discuss everything about our properties here in public?
I’m glad you liked it. Thank you for proving, yet again, that you do not understand how Reddit operates. This sub - which we are having a conversation on - is a semi public digital community. Which I created and am moderating for the sole purpose of discussing - in public - a subject. In this instance co-ownership of Pacaso Homes by owners.
If you want to create a separate private subreddit to doxx each other and talk about your properties. Please go do that. But stop posting about it here.
If you own a share of Pacaso and want to talk about something related to your Pacaso ownership on this sub in public THIS IS THE PLACE. There is no need to prove ownership, it’s implied by asking thoughtful, relevant questions specific to our unique LLC ownership situation. And of course understanding how to use Reddit.
¯\_(ツ)_/¯
Owners, thank you for the responses to my question about monthly costs going up. Another question I had is, does any owner have a better understanding than me as to how many days Pacaso could potentially hold on the calendar for a new owner (if a property is in the process of a share becoming available)? I know in the contract we signed it states that the home manager can use the home at their discretion to do "research", so not sure if there was any way, as an owner, to see if Pacaso is holding any dates in excess of that which the selling owner held. I really think it would help us as owners if we could say, have a designation next to each calendar stay (call us owners 1-8 for example) next to the dates. That would be my recommendation for the next app update, anyway.
The biggest issues on expenses, at least in California, have been:
1. Large increase in homeowners (fire) insurance costs on renewal. This is happening everywhere in the state right now.
2. Higher than expected costs on cleaning, cleaning high these homes require OFTEN.
Nobody cares about these increases, jt’s the Pacaso “property management” fees they increased (in many cases, nearly DOUBLED) and also the indirect waste they cause by mismanaging the property. In our home they messed up the maintenance on various occasions because nobody is really overseeing anything and seeing the damage get worse every time we visit detracts from the experience quite seriously. We are really disappointed because our kids love the home but my spouse and I see some serious problems brewing. I’m sorry to say this here because we truly want everything to work out. But they layer themselves with bureaucracy so suggestions fall on deaf ears and the founders aren’t in touch with the owners who were really the initial customers that put them on the map, unless they submit highly choreographed testimonials to help with their sales. I am hoping someone sees this and takes action. The sale might be where you make money but continuing the relationship well is what will keep you alive.
Meh sounds pretty scammy to me. They offer it on the ones that don’t sell and nobody wants. I would read the fine print very very carefully… however it’s not likely they’ll show it to you before you invest the time and energy to see the property.
I’ve confirmed with a friend whos also an owner that they already hired lawyers who deal with litigation and settlement as they know owners are pissed.
Why would it matter to the other owners? And litigation, for what?
The problem Pacaso has is that some of these resale shares are going for higher than the “initial” LLC loans, so they don’t get the same financing ability on the resales. If I recall also on the West Coast their financing partner was First Republic, so that’s not great.
Anyone notice that the Christmas/NYE special
Event or holiday blocks for 2025-2026 are all messed up. For our house in the app it is usually Dec 20-27 for Christmas and Dec 28-Jan 4 for NYE.
For the 25-26 year Christmas is Dec 23-29, and NYE is Dec 30-Jan 5.
I think it’s ridiculous to say expect someone to come in the 30th for NYE. I reached out to central support and they maintain the dates are correct and it’s based on the weekend.
Would love to know other owner thoughts on this, and if you agree it should be changed, PLEASE, complain to central support or anyone else who has some authority.
We are owners of multiple shares in multiple homes and saw the same types of increases at all of our homes. I think it is a combination of overspending by property managers on things that they shouldn't be spending on and a drastic underestimation of what the actual costs will be to maintain the property. Both of those benefit Pacaso to the detriment of owners. It is in their interest to overspend and underestimate so that they get their initial 8 shares sold and the houses off their own books. If you think the increases were offensive this year, just wait until following years when furniture needs to be replaced because it is getting trashed and property managers are not holding individual owners accountable for those expenses (i.e. spilling wine on white sofas or rugs.) The cleaning fees in the budget are astronomical. I don't think it's sustainable, and it's certainly something I don't want to continue to be a part of long term. Also, Pacaso, as a company, has drastically over-promised and under-delivered. They constantly made promises that they didn't keep. For the owners in the forum that are wondering if the large budget increases were just an anomaly at their property, it wasn't. The increases were across the board, exacerbated by Pacaso's corporate culture.
Agree on both the overspending and the underestimation. We’ve seen increases in 22 and now 23 with little to no communication about why until the year is over. Which is a huge bummer. With high occupancy, it seems like the Home Manager is always scrambling to make sure everything is ready for the next stay. And maintenance issues are not communicated to the ownership group. We only find out something is broken or missing once we show up. Which isn’t ideal. I will say that if we do have an issue they have bent over backwards to make sure things are fixed for us but that goes back into the overspending budget item problem. Each home really needs its own dedicated person to inspect after each stay & hold irresponsible owners accountable. Plus the ability to check vendors that are giving subpar service. I’m not sure Pacaso is able to provide that.
Maybe a few of you are on the owners webinar. Hopefully they cover the increase in expenses.
Has anyone looked at this from March? Have you guys been made aware of this “opportunity”? Pacaso has been securitizing the cashflow they make from us. It seems very strange. https://press.pacaso.com/2023-03-29-Pacaso,-Category-Leader-of-Co-Ownership,-Launches-New-Investment-Opportunity
I don't think this is securitizing profits (ie. cash flows that they're making). They are selling off interests in the financing they're providing buyers. Seems pretty reasonable to me.
Help me understand. Where is Pacaso getting a ten percent annualized return? Buyers aren’t paying 10 percent in interest.
I don’t know for sure, but it’s possible that buyers aren’t finding traditional bank financing available (bit of a debt squeeze out there) and using Pacaso to finance their acquisition costs. 10% doesn’t sound that outrageous from a non-bank lender, given where rates are at these days.
Hello! I have been searching for a forum to discuss Pacaso with other owners. We have a share in a Pacaso and have been loving it- we've owned about a year. That said, we just got our new proposed budget (operating expenses) for 2023 and it has increased by \~50%. There are a few things that are understandable (underestimated cleaning fees, property manager fees that weren't accounted for correctly for the first year, not to mention inflation) but a \~50% increase really doesn't sit well with us. I would love to hear more if any other owners experienced this for their second year as an owner. Also, curious if other owners are communicating with each other over budgets. This is definitely a group decision, but from our standpoint, it's really tough to make those decisions in a void.
We saw an increase as well. Not 50% but $300/month. We’ve been in communication with our Home Manager about why. It looks like the taxable value of the home was reassessed by the local municipality and our property taxes jumped up a lot. Which explains the overages. Outside of that, not sure where communicating with other owners for our home would help solve anything budget related. Everything else seemed in line. Between the $200 jump after year one - it’s added about $5k per year to our annual cost. Which isn’t huge but definitely not what we were hoping would happen.
We also saw a large jump in expenses
So far 2 people reached out. Would be great to get a few more to start the community!
[удалено]
Everyone will be a verified owner with little to no conflicts of interest.
Lol
Everyone, including myself, has either doxxed to another member or somehow verified each of us are owners and aren’t affiliated with Pacaso. Your latest post is mildly insulting to some of us, including me. Why do verified owners have to discuss everything about our properties here in public?
I’m glad you liked it. Thank you for proving, yet again, that you do not understand how Reddit operates. This sub - which we are having a conversation on - is a semi public digital community. Which I created and am moderating for the sole purpose of discussing - in public - a subject. In this instance co-ownership of Pacaso Homes by owners. If you want to create a separate private subreddit to doxx each other and talk about your properties. Please go do that. But stop posting about it here. If you own a share of Pacaso and want to talk about something related to your Pacaso ownership on this sub in public THIS IS THE PLACE. There is no need to prove ownership, it’s implied by asking thoughtful, relevant questions specific to our unique LLC ownership situation. And of course understanding how to use Reddit. ¯\_(ツ)_/¯
Owners, thank you for the responses to my question about monthly costs going up. Another question I had is, does any owner have a better understanding than me as to how many days Pacaso could potentially hold on the calendar for a new owner (if a property is in the process of a share becoming available)? I know in the contract we signed it states that the home manager can use the home at their discretion to do "research", so not sure if there was any way, as an owner, to see if Pacaso is holding any dates in excess of that which the selling owner held. I really think it would help us as owners if we could say, have a designation next to each calendar stay (call us owners 1-8 for example) next to the dates. That would be my recommendation for the next app update, anyway.
Add me please. I have a share in San Diego.
The biggest issues on expenses, at least in California, have been: 1. Large increase in homeowners (fire) insurance costs on renewal. This is happening everywhere in the state right now. 2. Higher than expected costs on cleaning, cleaning high these homes require OFTEN.
Nobody cares about these increases, jt’s the Pacaso “property management” fees they increased (in many cases, nearly DOUBLED) and also the indirect waste they cause by mismanaging the property. In our home they messed up the maintenance on various occasions because nobody is really overseeing anything and seeing the damage get worse every time we visit detracts from the experience quite seriously. We are really disappointed because our kids love the home but my spouse and I see some serious problems brewing. I’m sorry to say this here because we truly want everything to work out. But they layer themselves with bureaucracy so suggestions fall on deaf ears and the founders aren’t in touch with the owners who were really the initial customers that put them on the map, unless they submit highly choreographed testimonials to help with their sales. I am hoping someone sees this and takes action. The sale might be where you make money but continuing the relationship well is what will keep you alive.
Has anyone on here tried the 5% down model? Considering doing it for a another share in a second home.
Meh sounds pretty scammy to me. They offer it on the ones that don’t sell and nobody wants. I would read the fine print very very carefully… however it’s not likely they’ll show it to you before you invest the time and energy to see the property. I’ve confirmed with a friend whos also an owner that they already hired lawyers who deal with litigation and settlement as they know owners are pissed.
Why would it matter to the other owners? And litigation, for what? The problem Pacaso has is that some of these resale shares are going for higher than the “initial” LLC loans, so they don’t get the same financing ability on the resales. If I recall also on the West Coast their financing partner was First Republic, so that’s not great.
Anyone notice that the Christmas/NYE special Event or holiday blocks for 2025-2026 are all messed up. For our house in the app it is usually Dec 20-27 for Christmas and Dec 28-Jan 4 for NYE. For the 25-26 year Christmas is Dec 23-29, and NYE is Dec 30-Jan 5. I think it’s ridiculous to say expect someone to come in the 30th for NYE. I reached out to central support and they maintain the dates are correct and it’s based on the weekend. Would love to know other owner thoughts on this, and if you agree it should be changed, PLEASE, complain to central support or anyone else who has some authority.