A Startup Is Turning Houses Into Corporations, and The Neighbors Are Fighting Back
24th August 2021
Brad Day and his wife Holly Kulak were first introduced to Pacaso in May, after a romantic sunset dinner in their yard. “And we just saw this drone, coming up and over our backyard,” Brad says. “And we’re like, what is that?”
Pacaso denies directing or paying a drone operator to film the neighborhood. But its website does have drone photos of the house in question, located at 1405 Old Winery Court. It says it bought the photos after the fact.
Nonetheless, after the drone incident, Brad and Holly got suspicious about what was going on in their neighborhood. About a week later, their neighbors told them they were moving and selling their house to a Limited Liability Corporation, or “LLC.” But they were super vague about it.
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If you buy a share in a house, you’re able to stay in it 44 nights per year, in increments that can’t exceed 14 consecutive days per visit. You can also “gift” these stays to friends or family. Pacaso offers an app to handle the logistics of booking stays. It oversees management, maintenance, and cleaning of the property. In exchange for all this, it charges 12% of the home’s purchase price upfront and monthly fees going forward. If you buy a share in a house, you have to hold on to it for a year. After that, you can sell it and profit from any appreciation in the home’s value (or be on the hook for any depreciation).
Sort of like a time-share.