Referral Equity Program FAQs
Get all the details about Pacaso's innovative equity rewards program for closed buyer referrals.
General program information
What is the Referral Equity Program?
Pacaso’s Referral Equity Program (REP) is an innovative incentive program that rewards Pacaso owners and real estate agents with equity in the form of restricted stock units (RSUs) for closed buyer referrals.
Is there a cap on the equity I can earn?
No. The more buyers referred, the more equity you can earn.
Will I earn more equity if a buyer purchases more ownership?
No, the 500 RSU bonus is per buyer, whether they purchase ⅛, ¼ or ½ ownership.
What is the dollar value of each award, and how will the stock be priced?
Because Pacaso is currently a private company, the value of the equity is a moving target. Our 409A valuation puts Pacaso’s common stock at $0.86/share. This is a tax valuation. When we sold preferred stock at our $1B valuation in March 2021, that deal was done at a per-share price of $4.15, which is a helpful indicator of how the investment community is valuing the company. Program participants interested in estimating the value of their RSUs can use this preferred stock price as a reference point, but until we are public, the ultimate value remains hypothetical.
How is the equity being granted?
Equity is granted in the form of restricted stock units (RSUs). The 500 shares of common stock underlying the RSUs will vest and be paid after the company is public (or in connection with a sale of the company).
What markets are you in?
Pacaso operates in top second home destinations across the U.S., with plans to expand internationally. You can find our active markets at pacaso.com/blog/top-pacaso-markets.
How do I track my equity bonuses?
You will receive a confirmation email with an ID number for each equity grant. Confirmations will be sent between 30-60 days after the referred sale has closed. Once Pacaso goes public, we will reach out to let you know the vesting period has begun. If you have questions about the status of your rewards, you may also contact firstname.lastname@example.org.
What will my shares be worth when the company goes public?
We can’t speculate on what the value of Pacaso’s common stock will be at that moment, or the price at which it will trade after that point. But our hope, of course, is that our common stock consistently appreciates in value so that all Pacaso stockholders – including you – benefit.
What if Pacaso never goes public?
If Pacaso is not public or has not been sold by the 7th anniversary of the date the RSU is awarded, then the RSUs will be forfeited and will not be paid.
What is a restricted stock unit?
Restricted stock units (RSUs) are a form of stock-based compensation. They are restricted during a vesting period, during which time they cannot be sold. Once vested, the RSUs are just like any other shares of company stock. RSUs will always have some value based on the underlying shares. For tax purposes, the entire value of vested RSUs must be included as ordinary income in the year of vesting.
Why is the company granting RSUs instead of equity options?
Pacaso may award RSUs at no purchase price, whereas options require a purchase price (sometimes called an exercise price or a strike price). Because RSUs are taxable when they vest, we have structured this program so that RSUs won’t vest until Pacaso is public (providing you with the opportunity to sell some of the underlying common stock to cover the tax liability).
What are the tax implications?
After RSUs are vested and paid, the grantee is taxed on the value of the shares at the time they are awarded. We have structured this program in such a way to minimize the risk that grantees will be taxed on illiquid stock. Grantees are encouraged to communicate with their tax advisor regarding the tax implications of the RSUs.
Can Pacaso terminate or modify the REP?
Yes, the company retains the right to terminate or modify the REP at any time, with or without notice. However, any RSUs awarded prior to the date of termination of the REP will remain outstanding in accordance with their terms. The company will not grant RSUs in jurisdictions where it is legally prohibited from doing so.
Where can I get more information about the Referral Equity Program?
We encourage you and all participants to read the Offering Memorandum you will receive along with your award agreement regarding the company and the RSUs.
Who is eligible to participate, and how do I sign up?
Any agent who closes on a buy-side share of a Pacaso is eligible. You do not need to enroll or register; your equity bonus will be automatically applied.
Will I still be paid commission?
Yes. Buyer’s agents earn 3% commission when selling a Pacaso. The equity grant is an additional incentive.
Can I skip my commission check and instead be paid with 100% equity?
No. Commissions will be paid in cash, with equity being an additional incentive.
Is this program available to agents who bring Pacaso listings?
No. This offer is exclusively for agents who bring buyers and close buy-side transactions.
I sold a Pacaso in the past. Is this program retroactive?
This is a forward-looking program. Agents are eligible to receive the equity bonus for referrals that close on or after June 9, 2021.
How do I submit a referral?
Visit www.pacaso.com/owner-equity to submit your referral. Referrals need to be submitted in advance of closing.
I have already referred closed shares. Is this benefit retroactive?
Yes, this program is retroactive for owners. If you referred a buyer who closed on a Pacaso prior to the onset of this program on June 9, 2021, you will receive rewards for those referrals. Pacaso will reach out to you to begin paperwork, or you can email email@example.com.
Are there any other referral perks for owners?
Yes. Owners will receive $2,500 in operating expense credits for each closed referral.
Will you be offering a future friends/family funding round?
We’re not sure. At this time, REP is the only way to acquire equity in Pacaso. If that changes, we will be sure to notify eligible REP participants.