How Pacaso resale works

If you’re exploring different Since this type of So, what is tenancy in common, and how can it help you purchase a primary or second home? Continue reading to learn about the pros and cons of this ownership model, plus the difference between joint tenancy and tenancy in common. What is tenancy in common (TIC)? Tenancy in common is a home ownership model that allows multiple individuals to own a single property, each holding a distinct share. Unlike joint tenancy, these shares don't have to be equal, making TIC a flexible option for diverse groups of varying income levels or investments. TIC agreements are usually very detailed, addressing various potential conflicts through comprehensive operating agreements. These documents outline financial obligations, maintenance responsibilities and exit strategies. In 2025, as housing costs rise, TIC is increasingly seen as an attractive path to homeownership since it enables individuals to pool resources. Each owner can independently sell, mortgage or will their portion of the property, offering significant autonomy. How a tenancy in common agreement works A tenancy in common agreement is a form of Here is how home buyers can become co-owners within a tenancy in common: It’s important to note that no one person or company is in charge of a TIC. This means that, for example, while one owner might have a 50% interest share in the property, they have the same usage rights as a tenant with 10% ownership.  How to finance a tenancy in common Although a tenancy in common is a form of fractional ownership, you still have access to traditional funding opportunities like loans.  When it comes to financing a tenancy in common, you have two options: Simply put, the main attraction of Tenancy in common property taxes In general, a tax jurisdiction may require property taxes to be paid as a unit. This may be because If your TIC receives a single tax bill, your tenancy in common agreement will determine how the property taxes are paid. Pros and cons of tenancy in common real estate As an arrangement that enables multiple individuals to share ownership of a single property, TIC brings a set of distinct advantages and challenges that prospective homeowners must consider. Understanding these key factors is essential in making informed decisions and forging successful co-ownership partnerships. Let’s dive into the pros and cons of tenancy in common. Tenancy in common advantages Here are the core advantages of opting for a tenancy in common agreement: Tenancy in common disadvantages Although a TIC agreement can be an easily customizable and flexible ownership arrangement, it also has its drawbacks, such as: Tenancy in common example  Now that you understand the basics of how tenancy in common operates, let’s see how this ownership model plays out in a real-world example.  In this scenario, three families enter into a tenancy in common agreement: The story above illustrates how Tenancy in common vs. joint tenancy  The major difference between Let’s break down both co-ownership types: Comparing the different types of tenancy  To understand property ownership, you have to differentiate between the various types of tenancies — and there's more than just the two we've mentioned already.  Ultimately, the type of tenancy you should choose should be determined by your personal situation, legal status (like whether you're looking to buy as an individual or as a How to dissolve a tenancy in common agreement Dissolving a tenancy in common is relatively straightforward and easy to accomplish, assuming all co-owners wish to end the agreement.  Additionally, seeking legal advice, drafting a formal dissolution agreement and adhering to the legal procedures required in your jurisdiction are crucial steps in the dissolution process.  If the co-ownership aspect of a tenancy in common appeals to your real estate goals and you’d like to skip property management altogether, Pacaso offers

A Understanding property managers Owners typically hire a property manager to help them achieve their goal of building a steady investment income while reducing the burden of daily property operations.  Property managers specialize in all operational aspects of ownership Every property will come with unique needs, and the property manager’s responsibilities are outlined in their contract with the owner. Owners with multiple properties might seek out a property management firm to coordinate all operations and oversight.  Because property management involves adherence to housing laws, some states require a license to manage a property, either as a real estate broker or as a licensed property manager. Property managers enforce federal, state and local requirements dealing with screening tenants, evictions, lease terminations and handling deposits.  Takeaways Property managers share these characteristics: In more detail: There are three primary kinds of property managers: commercial, multi-family and single-family. Some property management firms work with a blend of property types. Commercial property management focuses on office buildings and industrial spaces.  Multi-family property managers specialize in spaces with many units, most commonly apartment complexes. Similarly, single-family property managers work in residential housing, but they focus on renting out single-family homes versus large-scale complexes.  Every property has different needs, but generally, property managers: No, property managers do not own the property they manage. Property owners outsource the daily operations to a property manager because they specialize in finding new tenants and know the legal specifics of leasing.  Most property managers work for a property management firm that coordinates the needs of several individual properties. In turn, the property firm works directly for the property owner.  Pacaso's in-house team of experienced, local property managers to handle the day-to-day needs of each home, including: With Pacaso, you own the home, and we manage everything — it’s that simple.

Enjoying family time should be easy. Part of what makes the Pacaso experience stand out is our dedicated team of home managers, Lindsey Harden (Tahoe) In the Tahoe region is Senior Home Manager Lindsey Harden, who shares the care and service owners can expect. Aaron Olthoff (Colorado) If you’re a owner in Colorado, you’ll get to know Aaron Olthoff. He shares how he keeps every home in the Vail, Breckenridge, Aspen and Steamboat Springs region in top condition all year long. Want to experience the Pacaso lifestyle for yourself? Browse our

Whether you’re buying a primary residence, an investment property or a vacation home, it can be advantageous to share the financial burden with a family member. Purchasing a home with a relative can make home ownership more affordable, giving owners someone to share the cost and effort of maintenance and upkeep with. It can also help buyers with less-than-perfect credit scores to get access to better interest rates and loan terms.  Buying with a relative is especially common with second homes, where each party may not want to shoulder the entire cost of a second monthly mortgage payment on a place where they won’t live in full time.  While buying a house with a family member can often make smart financial sense, there are quite a few things to consider before signing on the dotted line.  What to look for in a house with multiple owners  Anytime you’re shopping for a home, it’s important to make a list of your needs and wants — and be sure to differentiate the two. For example, a need for a family with mobility challenges might be a one-story home  while a want might be a home with a swimming pool.  When you’re buying with a family member, you have more needs and wants to consider, which can make it take longer to find a house that fits the group’s criteria. Start by defining key must-haves for location, property size and amenities. In the case of a second home, decide if you need enough space for everyone to use the property at the same time, or if you’ll be trading off visits.  Pros and cons of owning a property with family members The biggest upsides to owning a home with relatives are mostly financial. With a co-owner, you’ll split big-ticket expenses like the down payment, monthly mortgage payment, property taxes and insurance. Down the road when the inevitable home repairs pop up, you won’t have to foot the entire bill yourself. It’s also worth noting that a 50-50 ownership split isn’t required. It’s up to the co-owners to decide what’s fair in their unique situation.  Another benefit of having a co-owner is having a stronger financial position with your lender. You may qualify for a better interest rate and loan terms based on having a higher combined monthly income and strong credit scores.  However, there are a few drawbacks to owning a home with a family member that you should keep in mind before moving forward. A home is one of the biggest purchases you make in a lifetime, and with a co-owner, you are counting on the other person’s dedication and ability to keep up with payments. If you and your co-owner are listed as co-borrowers on a mortgage and they either can’t or don’t keep up with payments, your credit score will be affected and your home could go through foreclosure if you aren’t able to pay the full amount every month.  Another downside is that it can be difficult to ensure that you and your co-owner will be on the same page in terms of how to care for the home during ownership. When does an issue require a repair? When is the right time to upgrade appliances? If something needs to be replaced, is it a DIY project or do you hire a professional?  To navigate these challenges, savvy co-owners can put a property ownership agreement into place from the date of purchase. This legally binding document can outline how financial responsibility is split, the approach to repairs. and what happens if one owner wants to sell and the other doesn’t. A real estate attorney can help you draft this type of agreement.  Types of ownership structures  When you buy a home with a family member, you can choose from a few different types of legal ownership structures.  Tenancy in common Joint tenancy Another option for co-ownership While it’s common for people to purchase primary residences with co-owners, it’s especially popular when buying a vacation home. After all, it gives you the opportunity to make family memories in your favorite destination without the big price tag.  Spending less is a key benefit to splitting a vacation property with a relative, but the effort to make it a reality can still be quite large. You’ll have to find a home that everybody agrees on, take the time to set up the required legal protections, and come up with an equitable way to split time.  Consider this alternative. Pacaso puts second home ownership within reach by bringing owners together to buy a home, offering ⅛ shares of luxury properties in top vacation destinations But Take a look at Pacaso homes currently available. From

Understanding co-ownership of property Each type of co-ownership corresponds to a different set of rules and allowances.  Tenancy in common A Unless explicitly stated otherwise in the deed, TICs do not have rights of survivorship. If a tenant dies, property shares pass to an heir instead of the remaining tenants. Tenancy in common is available for all people, regardless of their marital status. Joint ownership Joint ownership, also known as beneficial joint tenancy, specifies that tenants hold equal ownership rights. This holds true even if only one person paid for the property — anyone listed on the deed has ownership of the complete property. All tenants are granted their deeds at the same time and, upon death, agree to pass the property on to their co-owners via rights of survivorship. Owners must demonstrate the “four unities” to qualify:  Takeaways Here’s what you should know about co-ownership: In more detail: How is co-ownership established? Co-ownership is established in a property deed and title, and you can also find details in your mortgage paperwork. If nothing is specified and you’re not married to the other tenant, the state will list the property as a tenancy in common or joint tenancy by default. What is probate, and why does it matter for co-ownership? After someone dies, probate is the legal process where debts are paid and the assets of the estate are allocated. Co-owned property with survivorship rights bypasses probate because there’s nothing for the court to decide — the owners are listed on the deed, which superceded the will.  How do you sell a shared ownership property?  It depends on the kind of co-ownership. A tenancy by the entirety is only valid while the owners are married, so a divorce or death dissolve the co-ownership. For a tenancy in common, all owners have to agree to dispose of the property. In most cases of co-ownership, individual shareholders can independently sell their shares to exit the property. What kind of co-ownership does Pacaso offer? Pacaso offers fully managed limited company co-ownership. Designed as a straightforward approach to co-owning a second home, Pacaso’s model allows up to eight owners to each have a ⅛ ownership interest in the limited company, and the limited company is the entity that is named as the owner on the deed. You own 1/8 to 1/2 of your Pacaso, with maintenance, management and day-to-day updates handled by our Crew. View our residential listings and

What is fractional ownership? For instance, if you invest in a fractional ownership of a holiday home, you're essentially purchasing the right to use that property for a predetermined number of days or weeks annually. This approach allows individuals to enjoy the benefits of owning premium assets without bearing the full financial burden alone. In this post, you’ll learn what fractional ownership is, explore its pros and cons, and get answers to some frequently asked questions. Understanding fractional ownership You’ll typically find fractional ownership for real estate like vacation homes. However, fractional ownership can also come into play for art, stocks and fashion items. When owners purchase real estate assets with fractional ownership, they are issued deeds representing their fraction of the property.  Fractional ownership is a great way to buy and own a property or another asset without purchasing it alone. It means all owners of an asset have divided percentage shares of a specific item or property. While families sometimes share ownership, fractional property owners can be unrelated. Types of fractional ownership There are two main types of fractional ownership structures:  Fractional ownership through an entity Some properties split ownership by using a structural entity like an Tenancy in common (TIC) means each tenant holds an individual deed for a fraction or percentage of a commercial or residential property. However, no one person or company is in charge. With a TIC, individuals can own different percentages of the property but share it equally. Some TIC agreements are self-managed. Fractional ownership vs. timeshares Fractional ownership Timeshares may be shared by as many as 52 owners (one person or group for every week of the year) while fractionally owned properties can have as few as two owners.  Fractional ownership advantages There are several advantages to owning a property through fractional ownership. Expanded opportunity to own Fractional investments allow you to own a portion of Deeded ownership Unlike a timeshare, fractional ownership gives you a deed to a fraction of the property itself (sometimes called a fractional interest). This means that the value of your share in the property increases or decreases in line with the property's real estate value. Any increase in value is divided equally and becomes gained equity for all fractional owners. Usage rights Unlike short-term Shared upkeep and maintenance costs Using the fractional ownership model, you're also responsible for only a fraction of the upkeep and Lower upkeep and maintenance burden Most fractional ownership agreements include provisions for long-term property management, with owners deciding how to handle any issues. Maintenance of When you have fractional vacation home ownership through an entity, it will include preventative and routine maintenance, cleaning and property management in its Potential rental income A fractionally owned property can be rented out as a long- or Fractional ownership cons Though fractional ownership has its advantages, there are a few drawbacks to consider as well. Fewer financing options Fewer banks provide mortgages for those looking to buy properties fractionally. You may need to shop around or consider other ways to finance your fractional ownership property, like special Less flexibility and freedom All decisions about maintenance, repairs and decor must go through all ownership partners, which Some fractional ownership clubs also require you to maintain an agreement with the club or property management company associated with the home, with no option for self-management or management outside the company.  Limited travel opportunities While it's not unheard of to own shares in multiple fractional ownership properties in different locations, investing in fractional ownership also means investing in the location you’re going to revisit. Of course, you can still vacation elsewhere, but it's something to factor into your travel plans and budget.  An alternative to fractional ownership Where fractional ownership falls short, Pacaso steps up. Pacaso's professionally managed LLC co-ownership model gives you all the perks and lower co-ownership costs with key differences that set it apart from fractional ownership resort clubs.  Unlike fractional ownership resorts, Pacaso offers LLC

Getting to your vacation destination is only part of the journey. When it comes to traveling with family and friends, you have a few options for accommodations: a hotel, a For a smart way to spend time away, however, consider co-owning a Pacaso second home. Here are a few of the reasons owning a Pacaso is the smarter alternative to a vacation rental. The cost of luxury vacation rentals Vacation If you want to make better use of your money, Pacaso might be for you. Pacaso vs. vacation rental  With Pacaso, you co-own a luxury second home where you can create memories today and build possible equity for tomorrow. This is how Pacaso differs from a short-term vacation rental. Owning a Pacaso instead of booking a rental is similar to owning a home instead of renting an apartment. Rather than paying someone else’s mortgage, you’re investing in a home where you’ll make lifelong memories. You can easily book stays in a familiar home  in a destination you love, all while reaping the benefits of home ownership.  Why Pacaso is smarter than a vacation rental You might be asking: Is now a good time to buy real estate? Real estate has proven to be And if you're not crazy about being responsible for a whole property but still want to own a luxury vacation home, Pacaso’s fully managed co-ownership model is ideal. You choose the amount of ownership that’s right for you at a fraction of the cost. Plus, Pacaso takes it up a notch with unique benefits: 1. Pacaso delivers a consistent experience While short-term rentals are varied, you can expect your Pacaso to be fully appointed, 2. You have a dedicated home manager Another Pacaso perk is that you own the home, and we manage everything. Your home is taken care of by a — 3. Your home is never rented out As a Pacaso owner, you enjoy all the rewards of home ownership. Your Pacaso is a real estate asset that will move in line with the whole home market. You can build equity and enjoy the home for personal use, and if you decide to sell your second home, Pacaso has an established marketplace of interested buyers. 4. No renters are allowed in your home As a co-owned home, each Pacaso is reserved for use only by owners and their guests. Pacaso vets owners, who agree to a 5. You spend less time planning Because you own, you spend your time enjoying your second home, not searching for a rental. And with Co-ownership done right On top of being a smarter choice than vacation rentals, Pacaso is the leading global brand in co-ownership. With a $1 billion real estate portfolio, high customer satisfaction scores and over 1,000 Pacaso homes sold, Pacaso is well positioned to deliver on service, value, satisfaction and trust for years to come.

A property is viewed as a Understanding tax laws and your second home A second home is a personal residence for part of the year. The rest of the time it may remain vacant or be rented out to guests. Here are other common characteristics of second homes: Vacation homes are typically located in Buyers may purchase a second home for retirement or to vacation in another part of the country. It’s not required for a first home to be paid off before buying a second home, however.  Reserving your second home for family-only use rather than using it as a rental property keeps things simpler at tax time. Like a primary residence, you can deduct a portion of your second home’s mortgage interest and property taxes. Tax benefits of second homes Second homes come with a host of possible tax benefits from the IRS, but they depend on two key factors: whether you’re living in your second home more than you rent it out and how much money you’re taking in income from tenants. Let’s dive into the specifics: If you rent out your home for less than 15 days a year, it’s considered a personal residence and you’re eligible for itemized deductions like any other homeowner. You can deduct mortgage interest up to $750,000 on principal for properties purchased after 2020. Rental income (under the 15-day limit) is also exempt, so you don’t need to report earnings to the IRS.  Staying 14 days per year means your second home is considered a residence. In addition to deducting mortgage interest, you may also be able to write off interest paid on a home equity loan. To qualify, you’ll need to have a mortgage on your second home and use the home equity loan for property improvements. You can Takeaways In more detail: If you change your mind about your property and want to rent out your second home, you can change your occupancy status. It’s best to do this after you’ve owned property for at least a year, and you’ll need to report any new rental income to the IRS.  Selling a second home is a different experience than selling your primary residence. Your first home earns you capital gains exclusions: Single tax filers can exclude $250,000, and couples filing jointly can exclude up to $500,000 on their return. That isn’t the case for second homes. The IRS sees secondary properties as investments, meaning that unless you’ve lived there for an extended period of time before the sale, you may pay up to 20% in capital gains tax. Yes, because your Pacaso is a single-family residence that you own. By buying a share in a property-specific LLC, you