Source: Aspen Times —
When it comes to art, beauty is most certainly in the eyes of the beholder. And while highly collectible and valuable, works by Spanish artist Pablo Picasso (1881-1973) are no exception. However, a new real estate phenomenon named to honor the artist’s legacy of innovation is arguably a controversial movement in its own right, not unlike cubism, surrealism and expressionism were in the art world at the time.
Pacaso, founded in October 2020, has created a new category of second home ownership by turning single-family homes into unlicensed but legal mini multi-user resorts. Designed to capitalize on the high demand for second homes in luxury destinations where the pandemic real estate boom has priced many out of the market, Pacaso’s unique model is relatively straightforward. Pacaso creates a limited liability company (LLC) that purchases a luxury home, lightly refurbishes it, divvies the company up among two to eight owners, and sells co-ownership interests via its website. For 12% upfront and $99 in monthly management fees, Pacaso finds and vets all co-owners, handles all sales details, takes care of all furnishings, repairs, cleaning and property management, and enables owner scheduling via a proprietary app. Currently valued at $1.5 billion, this start-up is purportedly the fastest American company to achieve, in investment parlance, “unicorn” status, meaning a market valuation of $1 billion or more. Investors obviously love the model, and it’s coming to a resort town near you. In fact, Pacaso has already arrived in Aspen.