You’ve found your perfect second home, so let’s walk through what happens over the next couple of weeks. Just a few more steps before you step through the door of your Pacaso!
The path to closing
Reserve your share
Pacaso schedules a call to kick off your closing. You’ll sign the residential purchase agreement and addendum. You’ll receive instructions on how to wire your deposit, which is 10% of the share price.
Review and sign documents
You’ll receive two packets of documents to review and sign. The first includes the house policy, program manager agreement, inspection report and seller disclosures. The second has the operating agreement and ACH form for monthly operating expenses.
If you are financing a portion of your purchase, you must provide Pacaso with your most recent pay stub, bank statement and tax return. In addition, you will need to supply a credit report authorization.
Prepare for closing
Pacaso schedules a check-in call 5 days before closing. We’ll review your closing statement and wire instructions for sending the remaining funds. We’ll confirm all documents are signed and verify your first stay date.
Congratulations, you are now a Pacaso owner! It’s time to crack open the champagne and share the good news about your second home with your family and friends. Now, just one more step.
Following closing, schedule an onboarding session with your owner concierge team. Download the Pacaso app so you can start booking your stays, and set a date to do a home walkthrough with the local property manager.
What to expect as an owner
Our support doesn't end at closing. Pacaso takes care of your home, so you can just show up and relax. Our ongoing services include property management, bill payment, maintenance and more. Owners are responsible for the home's monthly operating expenses, such as utilities and cleaning. Pacaso passes these costs through to owners, with no markup, based on the number of shares owned. We charge a $99 monthly fee for our management services.
Are closing costs included in the price?
Yes, real estate closing costs, such as title fees and commissions, are already included in the share price. If a buyer chooses to finance up to 70% of their purchase through Pacaso’s banking partners, an additional financing fee will be assessed at closing.
Can Pacaso raise monthly operating expenses?
All operating expenses are passed through at cost and all cost statements are available to owners upon request. Pacaso cannot increase its management fees without cause. As the LLC manager, we will only increase what is collected from owners as necessary to cover a change in household expenses (e.g. increase in insurance rates).
Does your LLC asset management fee go up each year?
The LLC management fee does not go up for owners unless a sale of shares occurs and the value of the property increases.
Can Pacaso make changes to the owner operating agreement?
Material changes require an ownership vote. Pacaso has limited authority to make non-material changes (e.g. Change of Address for state reporting purposes) on behalf of the ownership group.
Where do the reserve funds go and how are funds used?
Reserve funds are held in the individual LLC's bank account, managed by Pacaso. Funds are only used for the home’s repairs and maintenance. When the need for a major repair arises, Pacaso will allocate funds after a transparent competitive bid process.
What if another owner defaults? How does Pacaso protect me as an owner?
Pacaso serves as the corporate guarantor of any share financing protecting you should another owner default. In the unfortunate event of an owner default, Pacaso will step in to service the loan. If not resolved within 90 days, we will foreclose on that specific share and manage the resale without any disruption to the ownership group.