Earn 10% fixed yield in real estate.
A 3-year promissory note offered by Pacaso under Rule 506(c) of Regulation D. Available exclusively to verified accredited investors.
The offering
A straightforward, fixed-income opportunity
10%
Annual interest rate
3 years
Note term
Rule 506(c)
Regulation D exemption
Accredited only
Investor eligibility
Why Pacaso debt?
Pacaso has built a proven model for luxury real estate co-ownership, with a portfolio spanning the world's most sought-after destinations. This offering gives accredited investors a fixed-income position in that portfolio, without the complexity of equity.
Interest is paid quarterly at a fixed 10% annual rate, with principal returned at maturity. Proceeds are substantially deployed toward property acquisitions, refinancing, and Pacaso's owner financing programs. This note is unsecured and not collateralized by specific real property.
- Fixed 10% annual interest rate with no variable exposure
- 3-year term with principal returned at maturity
- Supported by Pacaso's luxury real estate portfolio (note is unsecured)
- Streamlined digital investment and payment process
How your investment is structured
Your investment note is unsecured. However, the loans are structured so your capital flows to a special-purpose entity — Pacaso Growth IV LLC — that in turn lends to the property-specific LLCs that hold title to Pacaso homes. Those LLCs provide financing to the buyer of each home. That buyer financing is recourse: it is backed by a personal guarantee from the Pacaso buyer and by the buyer's membership interest in that home-specific LLC.
The structure
From your note to the home
What is the structure of the loans?
- When Pacaso acquires a home, it initially owns 100% of the membership interest in a PropCo LLC created solely for that property. Pacaso typically finances the purchase with a traditional mortgage of roughly 50–70% LTV, which sits in first position between the PropCo LLC and the bank. Pacaso then sells the eight membership interests in the PropCo LLC.
- Your investment flows to Pacaso Growth IV LLC, a special-purpose entity that in turn lends to the PropCo LLCs. That capital supports each PropCo LLC's ability to offer financing to buyers — for example, resale financing when an original member sells a share.
- The loans from a PropCo LLC to a buyer are backed by both (a) the borrower's ownership interest in the PropCo LLC and (b) recourse to the borrower through a personal guarantee.
- If a buyer defaults, Pacaso steps in to keep payments current to the PropCo LLC until the buyer is current again — for both the home mortgage and these notes.
- Across our operating history, we have never had to foreclose on a buyer, in large part due to the high credit quality of our buyers.
- In the unlikely event that multiple buyers in a single PropCo default and the home is sold, proceeds flow first to the first-lien mortgage, then to note holders, and finally to any remaining equity holders. The notes stack to roughly 65% LTV, leaving an equity cushion ahead of the notes.
Ultimately, the note is backed by Pacaso owners making their monthly financing payments, with Pacaso serving as an additional backstop. Across our six-year operating history, we have yet to foreclose on a buyer, and in a default Pacaso can step in to make payments on an owner's behalf while they are not current. Based on pre-purchase background and credit checks, our owners have an average credit score of 782 and an average annual income of $1M.
The note is unsecured, and these structural features reduce but do not eliminate risk. Investing involves risk, including the possible loss of principal. Please review the full offering terms and investor subscription agreement before investing.
Pacaso by the numbers
A portfolio with real scale
40+
Premier destinations worldwide
$1.1B
In luxury real estate transacted
~200
Homes co-owned
2,000+
Owners across the portfolio
Use of proceeds
Where your capital goes to work
Frequently asked questions
How and when is interest paid?
Interest accrues at a fixed 10% annual rate and is paid quarterly. Your principal is returned in full at the end of the three-year term.
Who is eligible to invest?
This offering is available only to verified accredited investors, as defined under Rule 501 of Regulation D. Your accreditation is verified by an independent third party during onboarding.
Is the note secured by specific properties?
No. The note is unsecured and is not collateralized by specific real property or other assets. It is supported by Pacaso's broader portfolio of luxury co-ownership homes.
What are the key risks?
Investing involves risk, including the possible loss of principal. Returns are not guaranteed and the note is unsecured. Please review the full offering terms and investor subscription agreement before investing.
How do I invest?
Click Invest Now to open our secure DealMaker portal. You'll verify your accreditation, complete KYC, execute your investment agreement digitally, and fund your investment by wire.
Ready to become an investor?
Clicking Invest Now will direct you to our secure investor portal, where you will complete accreditation verification, review the offering terms, and execute your investment agreement.
You will be directed to a third-party investor portal to complete KYC and accreditation verification. This is not a commitment to invest. Investing involves risk, including the possible loss of principal.
Legal disclaimer
This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. This offering is made solely pursuant to the offering terms and is available only to verified accredited investors as defined under Rule 501 of Regulation D. This offering is conducted pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933, as amended. This offering is unsecured and is not collateralized by specific real property or other assets. Please review the full investor subscription agreement prior to investing. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. This website has not been reviewed or approved by the SEC or any state securities regulator.
