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What’s the same?
- The buyer is a deeded owner of a real estate property asset. Pacaso acts as the third-party manger of the LLC but is not an owner.
- Real estate agents receive standard commission for their work and act as advocates for the owners.
- Buyers can finance their purchase. They can also use other sources such as a HELO, credit line or cash.
- The legal forms and closing process will be largely the same as a standard home purchase. (A few differences are noted below.)
- Owners can sell their Pacaso anytime after the first 12 months of ownership, listing it at the price they choose. (Fellow owners have first right of refusal.)
- Pacaso buys a portion or the whole home directly from the seller, negotiating the best price.
- Pacaso forms a property-specific limited liability company and signs the closing paperwork on behalf of the LLC.
- Each buyer can purchase the “amount” of home they’ll use, ranging from 12.5 to 50%. (This gives buyers the chance to co-own a more expensive home than if they were buying a whole home.)
- Pacaso offers up to 50% financing and a competitive 10-year adjustable rate mortgage for qualified buyers. Pacaso serves as the corporate guarantor of the loan.
- Each buyer signs an owner-operating agreement for the LLC; they now collectively own 100% of the home together.
- Owners can plan their finances, knowing that annual fees are equal to 1% of the ownership value and include monthly operating expenses.
- Owners divide property management and maintenance costs equitably and are included in monthly operating expenses.
- Pacaso handles the property management, bill paying and provides the scheduling technology to ensure equitable access to all owners based on their shares in the home.
- Pacaso assumes financial responsibility if an owner defaults on payments, protecting the home’s other owners.