Buying

For those who love to travel, do so frequently, and want more out of their accommodations than simply a hotel room, vacation clubs and fractional ownership programs can be very appealing. While Two of the best known are How does Equity Estates work? A common gripe about timeshares is that you pay a lot of money into the program, yet you gain no equity in the properties you visit each year — you get only the right to use the property. Equity Estates offers an alternative. Instead of paying a membership fee, you contribute to an investment fund that buys you shares of the Equity Estates property portfolio. Down the road when your defined liquidity date arrives, the residences are sold and investors are paid back 100% of their initial capital contribution, plus 80% of the profits.  Properties and destinations During the years between investment and disbursement, investors enjoy access to 60+ destinations across over 25 countries. The properties are private, luxury homes valued between $2 million and $5 million, with amenities like oceanfront views, ski-in/ski-out access, swimming pools and private club access.  Access Depending on your level of investment, you’ll get a set number of nights per year. Equity Estates promises better availability than timeshares since homes are only available to investors. Cost In addition to your initial investment, which can start at $145,000 or more, investors pay annual fees to cover maintenance, daily housekeeping, a personal travel concierge, destination manager and local hosts.  How does Inspirato work?  Inspirato also promises luxury vacations at upscale private homes around the world, but the structure of the program is quite different from Equity Estates. Inspirato is set up as a subscription model featuring three tiers with varying levels of cost and benefits.  The Inspirato Pass The Inspirato Pass is the company’s core offerings. For a $2,550 enrollment fee and a monthly subscription of $2,550, members can choose from over 1.5 million Pass Trips, with all nightly rates, taxes and fees included. And it’s not just homes. You can also stay at top hotels and resorts and choose from cruises, safaris and guided tours. The pass is designed for travelers with flexible schedules, as you have to complete a booked reservation before scheduling your next trip. It’s also ideal for those who want to travel frequently but want the planning to be simple and straightforward.  Inspirato Club The third option, the Inspirato Club, costs $650 per month. Travelers get access to the Inspirato Collection of properties and experiences, with members-only nightly rates and travel planning assistance.  Inspirato luxury homes are owned by the company, but they have partnerships with hotel, resort and travel brands, ensuring you have access to stays and experiences all over the world.  Which option is right for you?  Whether you choose to go with Inspirato or Equity Estates depends on what you’re looking for out of a vacation club.  The people who join Inspirato tend to be frequent travelers who spend a lot on travel each year and have a flexible enough schedule to work around some of the inherent booking limitations.  Equity Estates appeals to people who spend significant amounts each year on travel, but want to see some return on their spend. Because of the potential for investment gains, the initial investment is higher than other options.  Equity Estates pros and cons Inspirato pros and cons Now get to know Pacaso Equity Estates and Inspirato aren’t the only innovators in the world of luxury travel. In fact, Pacaso takes the best of what these companies offer and delivers a smarter way to enjoy second home ownership.  With Every Pacaso home is fully managed, professionally designed and ready for you to enjoy, with equitable scheduling among owners.  Pacaso co-owners purchase shares in a property-specific LLC, and when you’re ready, you can sell your share to realize any returns on your property.   Comparing Pacaso and Inspirato An owner’s view of the differences Pacaso owner Mark also has an Inspirato membership. While he uses his Inspirato to “fill the gap” when he wants variety in destinations, he says he loves that his Pacaso gives him true ownership in a destination he loves.  “We’re kind of creatures of habit,” Mark said. “We like to go back to the same place that we know. We know it’s going to be quality. We get to know people in the community … it’s a totally different animal, and we prefer having the house.”  

There are so many ways to vacation: the consistency of a hotel, the extra space in a vacation rental, the structure of a What is a luxury vacation club?  A vacation club is a membership-based program that gives participants access to thousands of hotels, rental vacation homes and travel experiences. Luxury vacation clubs take these offerings to the next level, with an exclusive, curated collection of Many large hotel chains — Hilton, Marriott, Hyatt and Wyndham, for example — have travel clubs designed around their own collection of hotels and resorts. However, the most exclusive, high-end vacation clubs operate independently of a single hotel brand, offering their members a wide range of options.  How do luxury vacation clubs work?  While each luxury vacation club has its nuances, they typically operate with the same general model. Members usually pay a one-time initiation fee to join. Costs can range from a few thousand to much more, depending on how exclusive the club you join is. Then, you’ll pay annual dues, with prices fluctuating based on how much you want to travel each year.  In exchange for your investment, you have access to a wide range of accommodations and experiences, many with better perks, lower per-night costs and more options than you’d find if you booked on your own. Some offer a rewards program based on your spend.  The most exclusive travel clubs — among them What are the most popular luxury vacation clubs? Vacation clubs are available at a wide variety of price points, but in the luxury space, there are a handful of clubs that lead the pack among jet-setters.  Inspirato Inspirato boasts a portfolio of high-end homes, hotels and experiences in the most sought-after vacation destinations. Service is Inspirato’s hallmark, including travel planning, an on-site concierge, daily housekeeping and more. A rewards program provides extra discounts, early access to special events and complementary guest passes, depending on how much you spend each year.  Inspirato offers two tiers of membership: Inspirato Club and Inspirato Pass. Inspirato Club, a traditional vacation club membership model, lets you choose between a monthly or annual membership, both of which will set you back $7,800 per year. The monthly membership is more flexible, allowing new members to try out an Inspirato membership without a large upfront investment, but the monthly membership does require a $650 enrollment fee. The Inspirato Pass is a more flexible, monthly subscription model. For $2,550 per month, members can book Pass Trips from a list of over 1.5 million options, with nightly rates, taxes and fees included. There are limits to how many trips you can have reserved at a time. Exclusive Resorts  If Inspirato is a luxury vacation club, Exclusive Resorts is an ultra-exclusive vacation club. Their 4,000 members have access to 400 exquisite homes and expansive experiences in 75 global destinations. Most of the homes are owned by Exclusive Resorts, which allows for a consistently high level of service and amenities. Members enjoy the services of a travel planner before each trip, plus a dedicated concierge at the destination.  Exclusive Resorts invites only about 200 new members each year. Members pay a $195,000 initiation fee for a 10-year plan, plus $42,250 each year for 25 travel days. Solstice Collection Solstice Collection offers a more intimate luxury club experience, with far fewer properties but a promise of better availability. There’s a 6:1 ratio of homes to members, making it easier to book and enjoy time at the home you want. All of the homes in their portfolio are in the multi-million-dollar range and they include a sunny hillside estate in Cabo San Lucas, a historic palace in Florence and a private beach oasis in Koh Samui.  The costs of Solstice Collection membership include a one-time initiation fee of $15,000, plus annual dues ranging from $49,000 to well over $100,000, depending on how many nights you’d like to travel.  What’s the difference between a vacation club and a timeshare? While both In terms of financial investment, both timeshares and vacation clubs require an upfront payment and ongoing dues. However, timeshare owners often get saddled with maintenance fees, taxes and special assessments. And timeshares can be notoriously difficult to resell. How is Pacaso different? Luxury vacation clubs offer access to incredible properties around the world. So does Pacaso, with one major difference: You own your second home.  Discover how Pacaso stacks up against Inspirato. Pacaso uses an innovative With homes available from

When it comes to buying a house — whether it’s a primary residence or a vacation property — doctors are in a unique situation. Many doctors are considered high earners, but it can take years for the hard work to pay off. What’s more, many younger doctors are saddled with a large amount of student loan debt, which can make qualifying for a mortgage trickier than it might be for other buyers.  Whether you’re just considering buying or are thinking of adding a second home to your real estate portfolio, here are a few things doctors should consider, from how much you can afford to how to approach the process.   What salary do I need to afford a million-dollar home? Conventional wisdom says that you need an annual salary somewhere around $200,000 to You’ll also want to consider monthly costs above and beyond your mortgage payment. This includes things like HOA dues, utilities, maintenance, insurance and property taxes.  When is the right time for a doctor to buy a home? Buying a house is a big financial commitment, and it can take a significant amount of time to gain enough equity to offset the upfront purchase expenses like closing costs, repairs and moving expenses.  It’s common for doctors who are just starting out to move frequently, in pursuit of a specialty program, new opportunity or fellowship. In this busy career phase, renting may make more sense until you land a long-term position.  Buying a first house during residency Deciding to buy your first home is a milestone for all kinds of buyers, but physicians have a couple of additional financial realities to address during the application process.  If you’re a newer doctor, your loan debt may be high and you likely haven’t secured the salary of more established colleagues. This hurdle is specifically high for those buying a house during their residency.  A core part of getting approved for a mortgage loan is meeting the debt-to-income ratio requirements, or DTI. This is a calculation that compares your monthly debt obligations to your gross income. It’s a way lenders can be reassured that you’ll be able to repay your loan without defaulting.  Most medical school graduates have significant student debt. According to the Association of American Medical Colleges, anywhere from Enter the physician mortgage loan. Also called doctor loans or medical professional loans, these mortgages are specifically designed for doctors whose highest earning years are yet to come. These loans may have low (or no) down payment requirements, no requirement for private mortgage insurance (PMI) or more generous qualification criteria. Ask your mortgage lender for more information about this loan option.  Purchasing a second home as a doctor  As your career progresses, you may want to consider buying a second home. Being a physician is time-consuming and stressful, so it’s nice to have a place of your own to relax and unwind. Imagine cozy weekends in a mountain cabin, summer vacations in a sunny lakefront retreat or watching an ocean sunset from your private patio.  Pacaso is a great solution for busy professionals in a wide range of occupations to buy a second home. Ownership is shared among up to eight co-owners, which means that your upfront investment is lower. And we have homes in Co-owning a second home with Pacaso is a smart option for busy doctors, as it gives you the benefits of second home ownership without the work. Your dedicated property manager takes care of maintenance, repairs, cleaning and making utility, insurance and tax payments. That means that every time you’re ready to relax, you can just show up, unpack and unwind.  Our

Searching for a place to unwind, reconnect with loved ones and create lasting memories? 1. Enjoy your own personal retreat 2. Have flexibility for your vacations With a vacation home, you no longer need to fight for reservations during peak season or scramble to find last-minute Do you need a quick weekend escape to clear your head? Or a 3. Build a lifetime of memories A vacation home transcends bricks and mortar — it becomes a cornerstone for creating cherished memories with the people you love. Host unforgettable holidays and family gatherings to create lifelong memories.  Imagine cozy nights by the fireplace at your 4. Relish familiar settings Owning a vacation homes has the benefit of being your home-away-from-home. Equip your space with 5. Embrace a new community Purchasing a vacation home can open doors to a new community. Strike up conversations with friendly neighbors who share a love for the area. Explore local shops and restaurants, gaining a deeper understanding of the region's culture and hidden gems. This sense of belonging can enrich your vacation experiences and grow your sense of community at your second home. 6. Cultivate a sense of adventure A vacation home can serve as a springboard for exploration. Since you have a convenient home base, you can delve deeper into the surrounding area. Explore nearby towns, hike or bike scenic trails or discover hidden Proximity to these activities allows you to embrace a more adventurous spirit and enjoy experiences beyond the typical tourist’s itinerary. 7. Create a healthier lifestyle A vacation home can be a catalyst for embracing a healthier way of living. Many vacation destinations offer opportunities for Inside you vacation home, consider creating a dedicated 8. Pass down an asset to your children A vacation home can become a cherished part of your family's legacy. It can be a gathering place for future generations to reconnect with loved ones and create lasting memories.  Eventually, you can pass vacation homes down as an inheritance. A valuable asset like this can give your children and grandchildren a special connection to their family history. 9. Choose a location close to activities you love Finding a second home in a place that supports  your interests and hobbies can significantly enhance your lifestyle. Imagine living by a lake and spending your weekends fishing, or owning beach house with nearby easy access to kayaking or paddleboarding. For those who crave the thrill of winter sports or the serenity of mountain hikes, a cozy cabin could be the perfect fit. 10. Take advantage of unique financing options When buying a vacation home, you can access Additionally, your vacation home expenses don’t end with the Advantages of vacation homes Although owning a second home has some down sides, the advantages can greatly outweigh the trouble of finding and financing a vacation home. The pros of owning a second home or Personal use When you own your vacation accommodations, you always have a great place to stay (even if it’s a busy holiday weekend). You can keep all the comforts and necessities — clothes, toiletries, outdoor gear and more — at your vacation home so you can get away from it all at a moment’s notice. Unlike relying on reviews to choose a hotel room or short-term rental, you always know exactly what to expect when you arrive at your vacation home. Buying Your vacation home could become your primary residence once you retire, but you can start enjoying it and building equity long before it’s time to turn in your employee badge. In the meantime, it’s a special place to bring family together for vacations and special events. You can also pass down your vacation home to your heirs. Passive income potential Although some owners prefer to keep their vacation home exclusively for personal use, listing your second home as a short-term rental may also be possible. If you don’t want your vacation home to sit vacant when you’re not using it, you may be able to rent it out to others and use the money toward the mortgage and maintenance expenses. Potential property appreciation Whether you plan to keep your vacation home for personal use or earn passive income, your property may increase in value. A secondary residence can increase equity and value appreciation like a primary residence.  In this way, buying a vacation home can be an investment. Of course, housing markets fluctuate, so value appreciation depends on market trends where you buy. Adding real estate to your portfolio is a great way to diversify your portfolio and hedge against the ebb and flow of different markets. It’s always smart to consult a financial planner before making such an investment.  Tax benefits You can deduct any mortgage interest paid on up to $750,000 of principal mortgage debt, including your vacation home. Other If your vacation home doubles as a short-term or long-term rental, you may also be able to claim certain costs as business expenses for your vacation rental business. Consult with a tax professional to determine which  tax deductions you’ll be eligible for. Challenges of vacation homes Vacation home ownership also includes several challenging cons. Property maintenance and management Your second home likely won’t be close enough to your primary residence for you to stop by frequently. Home repairs and regular maintenance (lawn mowing, snow removal, etc.) can become a hassle. And if you’re renting out your second home, you must deal with reservations, clean up and more.  A potential solution is to Income volatility If you plan to rent out your vacation property, you’ll need to be aware of the high and low tourist seasons in your home’s locale. Plan for income fluctuations and charge appropriate nightly rates to curb potential low-season vacancies.  To keep attracting bookings, you may need to pay for marketing and advertising your property to help decrease income volatility. Local vacation rental laws Many towns are passing ordinances prohibiting short-term rentals or requiring homeowners to pay hefty fees to list a home as a rental. Check local laws before banking on your ability to rent out your vacation home.  Remember that other Limited location Once you invest in a vacation home, you’ll probably want to use it as much as possible. That means you’ll likely spend more time in one Just like an unused gym membership or a new dress in the back of the closet, a distant vacation home can easily turn from a dream come true into a money pit if you’re not committed to using it regularly. Co-own a vacation home with Pacaso While there are nearly a dozen reasons to buy a vacation home, the initial cost and ongoing maintenance can be daunting. Pacaso offers a unique DISCLAIMER: This content is published solely for informational purposes and isn’t intended to be investment advice. You should consult an appropriate professional for specific advice tailored to your situation.

If you’ve found the most incredible second home in a picture-perfect location, there’s a good chance you’ve started looking into financing options to make your dreams a reality. So let’s discuss how to buy a second home with no money down.  We won’t lie: 1. Use government-backed loans by changing your primary residence  There are several government-backed loans for second home options to consider. The first is VA loans are for The second is 2. Assume an existing mortgage  Another option for a no-down-payment mortgage is to assume an existing mortgage. If the seller’s home has an 3. Tap into existing home equity  You can also choose to tap into your existing home equity by using a Or use a home equity line of credit ( If you already have a mortgage, these would both be second mortgages that you’d need to pay in addition to the first.  4. Reverse mortgage A reverse mortgage is an option for seniors 62 and older. It allows seniors to access home equity without monthly mortgage payments, and the funds can be used as a The loan is repaid when the senior sells the house, moves out or passes away — whenever they no longer live in the home. The heirs or homeowners must repay the loan, usually by selling the home. It’s important to note that this type of loan comes with high fees and complexities. We strongly recommend consulting a financial advisor first if you’re considering a reverse mortgage.  5. Gift of equity  Another no-money-down mortgage option is a gift of equity. A gift of equity is when someone with whom you have a close relationship sells you a home below market value. Usually, the person is a family member.  If the gift of equity is equal to 20% or more of fair market value, you can avoid down payment contributions. However, you’ll need to consult tax advice to understand the tax implications of a gift of equity.  6. Lease with option to buy  A lease with option to buy, or lease option, is a rent-to-own contract that lets you rent the property to test it out, with the opportunity to commit and buy at the end of the lease. Usually, the lease contract is for a number of years.  If you decide to buy, rental credits can be applied toward the purchase price and converted into a down payment. It’s important to negotiate these terms upfront with your landlord with the help of a tax professional and real estate attorney.  7. Seller financing  Another option is to negotiate directly with the seller to finance the purchase. You may be able to negotiate terms that require less or no down payment. However, it’s very important to be aware that seller financing doesn't include standard mortgage protections, so you may not have the same legal safeguards as you would in a traditional mortgage. 8. Retirement account access  You can This allows you to borrow money from your 401(k) and repay it with interest. You can also make a 401(k) withdrawal for your home purchase. However, if you are under 59, you’ll have to pay a 10% withdrawal penalty plus income tax.  9. Partnership or co-borrower Lastly, consider partnering with someone who can provide the down payment while sharing the ownership or financing burden of the second property. Key considerations  Buying a second home with no money down can be a huge leap, and it’s important to know how it will impact your financial future. Here are some things to consider before you take the plunge: An alternative approach: Pacaso co-ownership  So, can you buy a house with no money down? Technically, there are ways, but it can be a tough road to go down. Instead, consider Pacaso as a better approach to Pacaso’s fully managed LLC co-ownership model allows you to purchase 1/8 or 1/4 of a vacation home property. You split the costs with your fellow co-owners, while our local maintenance crews handle daily maintenance and management. You and your loved ones get exclusive access to the home at specific times throughout the year. Get your dream second home with Pacaso  As you think about how to buy a second home with no money down, consider Pacaso for a lower-cost, hassle-free way to co-own your luxury vacation home. Finance up to 70% of your home’s purchase price and sell your home at the time and price of your choice. View our

Dreaming of Let’s explore the seven steps of how to purchase a second home: 1. Determine your budget Buying a second home is a significant Determining your budget for a second home involves assessing your current and future finances. Consider income, expenses and additional costs like taxes and maintenance, especially if you will be assuming a second mortgage. A Evaluate financing options and consult a financial advisor for insights into tax implications and investment alignment. This thorough analysis ensures that your second home purchase aligns with your financial goals and lifestyle. Second home expenses In addition to the purchase price, be sure to factor in these expenses when budgeting for a second home: Although second homes come with their fair share of added expenses, they also offer a few tax deductions that make your second house dreams less costly. As you’re crunching the numbers, remember your second home can also be a source of rental income and These are great ways to make owning a second home more feasible. However, 2. Consider your financing options Lenders often see second homes as being at higher risk for loan repayment. For this reason, Here are some things to consider when financing a second home: It’s important to note that classifying your second home as an Buying a second home doesn’t have to be a solo endeavor. 3. Compare lenders When comparing lenders for a second home, it's essential to conduct a thorough evaluation to secure the best financing option tailored to your specific needs. Consider the following factors and use them as a basis for comparison: By comparing these factors among different lenders, you can make an informed decision that aligns with your financial goals and secures the most favorable mortgage terms. 4. Get pre-approved Getting pre-approved for a second home is a simple process, with many lenders allowing you to apply online. They look at your financial history, including your current income and debts, to give a rough number regarding what you can afford. At this stage, Having a pre-approval letter from a lender can give you a leg up when it’s time to make an offer on your dream second home. Be aware, however, that since some lenders may see 5. Find a location and a local agent Once you decide how to use your second home, you can hone in on the perfect location. Going with your favorite Ask yourself: Confirming your reason for owning a second home can help you decide on the perfect destination for your new vacation spot. Choosing the right agent Finding a knowledgeable agent in your target market can significantly decrease your workload in your second home search. You can use their local knowledge to help you with logistics and make an informed decision. Research local agents online, cross-reference reviews and ask for recommendations from your friends and family when possible. According to Redfin, the going rate of a real estate agent is about 6. Make an offer Purchasing a second house will be a familiar process if you’re already a homeowner: You make an offer, negotiate, come to an agreement and prepare for closing. Prior to closing, you will: Once your offer is accepted, it’s time to begin the closing process for your new home. 7. Begin closing After the seller accepts your offer, the second home closing process begins. This process involves several crucial steps: Although closing on your second home may appear overwhelming, a smooth closing is key to turning your house purchase into a dreamy second home getaway.  When considering purchasing a second home, you'll want to evaluate your finances, lifestyle, and market conditions to determine whether it's the right time to purchase—but those factors are just the tip of the iceberg. Here are some of our team's top considerations for those considering a second place of residence.  Assess your current financial situation to see if you can comfortably afford a If additional debt strains your financial resources, it may not be quite the The ideal second home aligns seamlessly with your lifestyle. Prioritize locations that support your hobbies and desired activities, guaranteeing a frequent and enjoyable retreat. If you like to ski, for example, a When deciding on the main goal for your second home, it's crucial to determine if you're primarily interested in generating rental income, building long-term investment appreciation, or creating a personal retreat. Each of these objectives will significantly affect your approach to buying, managing, financing, and handling taxes for the property. Owning a second home comes with significant responsibilities. Are you prepared to manage the upkeep of two properties? This includes regular maintenance, potential repairs and the time and financial commitment of traveling between both homes. If not, are you willing and able to hire a property management company or other professionals to handle these tasks?  Remember that delegating these responsibilities will add to the overall cost of owning a second home. Finally, when looking to take a big step forward in your second home journey, you'll want to look at the Now that you know how to buy a second home, it’s time to find the second house of your dreams. If turn-key luxury is what you’re after, consider buying a second home with Pacaso. Each of our co-owned homes is part of an LLC, is fully decorated and furnished, and comes equipped with a dedicated property manager to make your second home ownership journey as stress-free as possible. We even Check out our

The good news is that if you 1. Savings and investment account Using your personal bank account to fund your second home But that’s not the only personal fund you can tap into for Using money from your investment account is similar to withdrawing from your savings account. The key difference is that you may need to pay taxes on any gains the money earned while invested. 2. Sale of an asset Selling assets when you come up short on funds may be the only way to keep that second home of your dreams from slipping through your fingers. Understanding If you see your property as a better investment than your savings, it may be worth it to 3. Retirement account Tapping into retirement accounts, such as a 401(k) or IRA, can be a source of funds for your down payment for a second home. However, this age-sensitive strategy may not be advisable for those nearing retirement. If you’re not comfortable dipping into your savings or selling assets, you can still seek outside funding help.  4. Home equity loan or HELOC The value you've built in your current home can be a powerful resource when purchasing a second property. Leveraging your home equity gives you access to funds at generally favorable rates compared to many other financing options. A practical approach to securing funds for a second home down payment is utilizing the equity you've accumulated in your primary residence. This strategy involves either securing a Home equity loan With a home equity loan, you receive a one-time payment based on a portion of your home's value through a secondary mortgage. The key benefit is maintaining your original mortgage intact — particularly advantageous if you have a favorable interest rate.  Since these loans are second in line for repayment if financial difficulties arise, they typically carry higher interest rates than current mortgage rates for second home loans. Home Equity Line of Credit (HELOC) A HELOC functions as a secondary mortgage but operates more flexibly, similar to a revolving credit account. During the initial access period (generally five to 10 years), you can withdraw and replace funds repeatedly. You'll only pay interest on the amount currently borrowed.  After this period ends, the withdrawal option closes, and you begin repaying both principal and interest on whatever balance remains. Since HELOCs feature adjustable rates, your payments may fluctuate monthly based on market conditions. Cash-Out Refinance When choosing a 5. Government-backed loans While traditional government-backed loans are designed for primary residences, there are strategic ways to use these programs that can help you Government-backed loans such as VA or USDA offer low or no down payment options, typically for primary residences rather than second homes. However, by carefully planning your home purchases, you can transition from one primary residence to another while retaining your previous home as a second property.  6. Reverse mortgage A reverse mortgage allows homeowners aged 62 and older to convert part of their home equity into cash without having to sell their home or pay additional monthly bills. The loan is repaid when the borrower moves out, sells the home or passes away, making it a potential source for second home down payment for retirees. 7. Gift of equity funds When purchasing a second home from a family member, a gift of equity can be mutually beneficial. This approach involves the seller (often a parent or relative) transferring a portion of their equity in the property to you as a gift, effectively reducing the purchase price and minimum down payment for a second home. 8. Assumable mortgages An assumable mortgage allows you to take over the seller's existing loan instead of obtaining a new one. This can be particularly advantageous in a rising interest rate environment, as you may be able to secure a lower rate than what's currently available. This is an excellent option for those researching how to buy a second home with low down payment. 9. Seller financing Seller financing creates a direct financial arrangement between you and the property seller, bypassing traditional mortgage lenders. The seller essentially becomes your lender, allowing you to pay them directly according to mutually agreed terms. This option can be helpful when considering a loan for a second home with non-traditional terms. 10. Lease with an option to buy This arrangement allows you to rent a property while securing the right to purchase it in the future. During the lease period, a portion of your monthly rent may be credited toward the eventual down payment on a second home, helping you build equity while you live there. While sticking to one funding source may not be enough for your down payment — or put you into financial jeopardy — using a mix-and-match approach may improve your situation. Mitigating risk is still important even though real estate is considered a relatively safe investment. Look into each of these strategies further to learn which is best for you when Are second home down payments always required? In most cases, a down payment on a second home is required. If you plan to pursue a conventional loan for financing a second home, you’ll need to put money down upfront since they aren’t backed by the government. Even if you plan to pay for the home entirely in cash, you’re still technically putting down a large payment.  If you plan to turn your second home into a primary residence, then it’s possible to get a government-backed loan. In that case, you won’t need a down payment for a second home.  How much do I need for a down payment on a second home? The down payment for a first home can be as low as 0% and as high as 20% for a conventional loan. However, the required down payment for a second home is around The amount you’ll need for a down payment on a second home depends on several factors, including your credit score, your debt-to-income (DTI) ratio and the cost and type of property you’re purchasing. Down payments and interest rates for second homes can also vary depending on the lender, so it’s a good idea to shop around. Here is a closer look at how these factors can affect your down payment: Any tips on how I can reduce the down payment on my second home? One of the best ways to lower the out-of-pocket expense for a second home down payment is by reducing how much you’re paying for the home. But that doesn’t necessarily mean sacrificing square footage, quality or location.  Explore your options for second home ownership Finding the right financing strategy can help you achieve your dream of owning a second home, whether through a government-backed loan, a conventional mortgage, or co-ownership. If you’re looking for a modern, hassle-free way to own a second home, Pacaso makes it possible. Pacaso offers LLC co-ownership of luxury second homes, providing a streamlined and cost-effective alternative to traditional second homeownership. With professionally managed properties and a fully integrated ownership model, you can enjoy all the benefits of a second home without the hassle of maintenance. Want to learn more? Visit our

Not finding the right s Check out our list of alternatives to Airbnb before you book your next vacation: 1. Pacaso  Pacaso is also a great Co-ownership helps buyers afford 2. VRBO Like Airbnb, 3. Booking.com It is becoming a formidable Airbnb competitor in the vacation rental market, with offices in more than 70 countries and over 28 million listings, including hotel rooms. Booking.com charges a higher booking fee — 15% compared to Airbnb’s 3% — and renters will often pay these fees in the form of higher prices.  4. Hipcamp Hipcamp is like Airbnb for campers, offering a range of campsites that accommodate tents and RVs. This makes it one of the Since guests may travel to remote locations, Hipcamp has established standards to ensure safety and privacy. For example, hosts must limit campground occupancy and provide safety warnings for common dangers in the area.   Hipcamp’s search filters allow you to find the perfect spot for your desired activities. So if you want to hike, fish or ride horses, your hunt just got easier. The affordability and convenience make Hipcamp a great option for nature lovers.  5. Marriott Homes and Villas Managing expectations is one of the most challenging factors when staying at independent vacation homes. Hotel chains can deliver on cookie-cutter expectations but often lack the personal touch. The inventory is still growing — currently about 60,000 listings — but it has something most other alternatives to Airbnb don’t: a rewards program. Travelers can earn and redeem points for discounted stays in the future with a Marriott Bonvoy account. 6. Hopper Homes The streamlined app-only interface is convenient to use, with fewer distractions than many other platforms. Travelers can book their stay instantly rather than waiting for approval and receive flexible cancellation policies.  Hopper has its own rewards program in the works, Carrot Cash, to help customers save even more money while traveling. 7. Plum Guide Expect to pay more than the average vacation rental, but the price may be worth it if you value the luxury vacation experience. Plum Guide does offer price matching, just in case you see the same rental listed for less on another platform. 8. Agoda  You can receive a discount for being a solo traveler and find other discounts through a “secret deals” feature. Agoda’s website and app operate in 38 languages, with customer care in 16. While travel booking sites have moved into the rental property industry, Agoda performed a reverse migration. In 2019, the site launched a flight aggregator to compare hundreds of sites at once.    9. Homestayin When you travel, do you value cultural immersion above all else? It’s an affordable alternative to hotels while being a step up from the typical hostel. Homestayin is available for short- and long-term rentals, appealing to backpackers and students alike.   10. Sonder If you’re looking for a service like Airbnb that retains the comforts of a hotel, check out Every unit has a full kitchen, mini toiletries and Wi-Fi, making it great for long-term stays. The app allows for contactless check-ins along with requests for clean towels and restaurant recommendations.  11. Blueground If you’re living the digital nomad life, 12. Onefinestay All of the listings are whole units, so you won’t share the property with other travelers or the owner. The accommodations include houses, chalets and luxury villas, giving you the personal touch missing from hotels while delivering professional property management.  13. 9flats It works like an aggregator for other travel sites, so if you have issues with the interfaces of the other big names, 9flats might be more your style. It offers features like instant booking and advertises the maximum occupancy of every listing on the results page for quick scanning.  14. FlipKey While solo travelers can use FlipKey, it is ideal for groups. Finding a place big enough for a group can be challenging on other sites. FlipKey is facing the problem head-on.  15. Glamping Hub Like Airbnb, Glamping Hub is only a booking platform, so you’ll still depend on the property owner to deliver the rental as advertised. Glamping Hub allows you to filter through listings based on the type of building, cost and features, so you’ll have as rustic or luxurious an experience as you’d like.  16. ThirdHome To qualify, your second home must be worth at least $500,000, in a desirable location and well-maintained. This niche marketplace has 14,000 options, including entire estates and yachts. While you won’t pay a rental fee, Thirdhome does charge a booking fee that ranges between $495 and $1,395 per week.  17. Outdoorsy 18. Wimdu Users can choose from an array of filter options to search by distance to the city center (which is great for public transportation users), average ratings, amenities and price. They also have several pet-friendly listings and cater to families as well as solo travelers and couples.  19. Tripadvisor Vacation Rentals Tripadvisor taps into its deep reservoir of user-generated travel recommendations and reviews, so users get local recommendations on where to eat, the best excursions and more. 20. Expedia Vacation Rentals Reviews are also abundant here, helping travelers make an informed decision about what to do outside of the accommodation as well, allowing users to seamlessly combine their accommodation bookings with other travel essentials such as flights and car rentals.  21. Vacasa 22. HomeToGo Like Airbnb alternative 9flats, HomeToGo saves travelers time by allowing them to compare multiple sites in a single place rather than having to set search filters like budget and amenities on multiple sites to find answers. Once you find a rental that you like, you finish booking through the provider’s website.  23. Kid & Coe Since 2013, Regardless of the accommodation type, each hand-picked listing has a supply of books, toys and child travel essentials awaiting every family in 50 destinations around the world. Visitors can also request cribs and high chairs, ensuring a turnkey experience for every guest. When searching for a great vacation property,

What does "property ownership" entail? Property ownership goes beyond merely acquiring real estate and registering it under one's name. It encompasses various forms and structures, each with its unique practical, financial and legal implications. Depending on the chosen type of ownership, individuals may encounter different estate planning challenges and tax liabilities. It's essential to understand these nuances, as they can significantly impact future events, including inheritance or tax assessments. Keep in mind that these are just suggestions, and your situation might call for something else. If you’re unsure which property type will work best, explore your options with a real estate attorney. 1. Sole ownership Type of owner: individuals As the name implies, sole ownership is when an individual is the only property owner. Since they are the only owner, they don’t require anyone’s consent to sell, lease or transfer the property to another person. Property owned by a sole owner is sent into probate when the owner dies until the will is validated. 2. Joint tenancy with rights of survivorship (JTWROS) Type of owner: married couples The most common form of property ownership for married couples is 3. Tenants by the entirety (TBE) Type of owner: married couples Married couples may instead opt to own property as tenants by the entirety, which is the same as JTWROS, except an owner can do nothing with their ownership portion without consent from their spouse, since the couple is legally considered one entity. Divorce will automatically change the ownership agreement to tenants in common. 4. Community property Type of owner: married couples Only 10 U.S. states are community property states. This real estate ownership type classifies any property obtained by a spouse during marriage as “community property” — that is, owned by both spouses, even if the property is only listed in the name of one spouse. This includes all real estate purchases made during the marriage.  The states that recognize community property include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In Alaska, residents can opt in to a community property agreement. The same community property laws apply to registered domestic partnerships in California, Nevada and Washington. 5. Owning trust Type of owner: minor children or adult with disabilities An owning trust entrusts the care and management of a property to a trustee acting on behalf of someone else, usually a child or an adult with special needs. A living trust is established while the original owner (also called a trustor or grantor) is still alive. The trustor names the beneficiary as the owner of the property, but until the trustor’s death, they also serve as the trustee. The property remains in the beneficiary’s name, but a new trustee is selected (usually named by the trust) to keep the property out of probate. 6. Tenancy in common (TIC) Type of owner: unrelated multiple owners of a single property When owning property as a Each tenant is allowed to sell, will or otherwise transfer their ownership share without the permission of the other owners since they lack survivorship rights. When a tenant dies, their ownership passes into probate before being transferred to any named heirs. 7. Owning partnership/LLC or co-ownership Type of owner: unrelated multiple owners of a single property Properties can be organized into a Owners can create the LLC by What’s right for you? Different types of ownership in real estate can offer different benefits to owners. If you’re still not sure which type of real estate ownership is right for you and your situation, it’s a good idea to consult a legal professional.  How to become a co-owner of a second home Pacaso makes it possible for individuals to become co-owners of a In Pacaso’s ownership model, an LLC ensures true property ownership for each member. Unlike a timeshare when you only pay for time to use a property, Pacaso ensures you enjoy the many benefits of second home ownership

Many people dream of owning a second home, but the thought of an extra set of taxes, utility bills and maintenance responsibilities snuffs out any hope of making that dream a reality. But what if you could share the financial load (and workload) of home ownership with someone else? Read on to learn more about what joint tenancy is and how it can protect your rights as a homeowner.  What is joint tenancy?  Joint tenancies involve rights of survivorship. This means the ownership of the property passes straight to the surviving tenants upon the death of a deceased owner without going through the probate or court systems. This is important for co-owners because it ensures the property automatically stays with the remaining owners, providing legal protections and clarity in the transfer of ownership. Joint tenancy falls under the umbrella of joint ownership — when more than one person owns a share in a piece of real estate. In a The three main types of joint ownership are joint tenancy, How does joint tenancy work? Any two people can form a joint tenancy; they don’t need to be married (though this is  common). With joint tenancy, co-tenants have equal interest in property ownership, and each co-tenant has full access to the property. Tenants may occupy the property together or separately.  What are the rights of survivorship?  Rights of survivorship are a key feature of a joint tenancy agreement, ensuring a seamless transfer of ownership when one co-owner passes away. This means that if What are ownership rights?  Property ownership defines what you can legally do with your home, from living in it and making improvements to selling or transferring it. In a joint tenancy, all co-owners share equal rights to use the entire property, as well as equal responsibility for its upkeep and financial obligations. This structure is common among relatives or married couples who want a clear path for transferring ownership to the surviving co-owner. Rules for creating a joint tenancy Creating a joint tenancy requires following specific legal rules to ensure all co-owners have equal rights and that the property passes smoothly to surviving owners. While the rules are generally consistent, some details can vary by state, so be sure to check local laws or work with legal counsel. These rules include:  Following these rules makes co-owning a home smoother and helps prevent disputes while preserving the benefits of joint tenancy with right of survivorship.  Severing a joint tenancy  Sometimes, co-owners may need to sever a joint tenancy arrangement. This can happen if relationships change, one owner wants to sell their share or you’re transitioning from joint tenants to a tenancy in common to allow unequal ownership shares.  Severing the agreement gives each owner more flexibility and control over their portion of the property. Here’s an overview of how to do it:  Understanding tenants in common vs. joint tenants is key when severing a joint tenancy agreement. This flexibility can also help if you’re planning future purchases, such as learning Benefits of joint tenancy Unlike a This includes but is not limited to earned equity in the home, the right to sell (as long as it’s in keeping with the joint tenancy agreement) and free use of the property according to your share.  Affordability The cost of a home doesn’t end with the purchase price. Insurance, taxes, maintenance, utilities and HOA fees stack up, and having one or more joint owners to share costs can significantly lighten your financial load.  Plus, rather than shouldering the full cost of a home, joint tenancy of property lets you cut that cost in half — or even more. This can greatly increase your buying power and help you get more home for less money.  Protection Joint tenancy lets you share the less-than-fun tasks of home ownership and maintenance with Plus, if the property is occupied regularly, it prevents maintenance issues that arise from neglect. Someone is more likely to be around to notice when there’s a leak or a crack, or a fallen branch that needs attention. Easier legal process Surviving co-tenants don’t have to deal with probate, the drawn-out legal procedure the court system utilizes to validate wills due to the right of survivorship. Regardless of whether the decedent made a will, the surviving co-tenant(s) have instant access to their part of the property without having to go through probate.  Convenience Joint tenancy can also offer a consistent vacation experience. Rather than scrambling to find open dates in a rental with good reviews or stuffing yourself and your luggage into a questionable hotel room, joint tenancy in a second home gives you the freedom for last-minute trips and packing light.  Cons of joint tenancy The strict regulations of joint tenancy can protect you if a co-tenant tries to profit from your investment, but those same conditions may make it difficult for you as well. Co-tenant relationship challenges Difficulties may develop if the relationship between co-tenants alters. Co-tenants must agree on decisions regarding the property, and this can be increasingly difficult if disputes arise. Without the expressed consent of all co-tenants, nobody can sell their portion or the entirety of the property. For example, if a married couple shares joint tenancy of a property and decides to divorce, they will still be held accountable for paying all debt until the person who receives the full stake of the property refinances.  Increased responsibility  If a co-tenant falls under financial hardship or loses employment, the other tenants must agree to continue keeping up with mortgage payments to avoid the property going into default.  Joint tenancy vs. tenancy in common Joint tenancy and tenancy in common both involve property ownership and provide similar The most significant difference between joint tenancy and tenancy in common is that joint tenancy provides equal shares for all parties, whereas tenancy in common has unequal shares and various interests. Is joint tenancy right for you? Whether joint tenancy is right for you depends on your goals, relationships with co-owners and how you plan to use the home. For second homes or vacation properties, it’s important to weigh both the benefits and potential limitations before committing.  Understanding your options can help you make the most of your purchase, whether you’re looking to A better alternative to joint tenancy While joint tenancy can offer simplicity and automatic transfer of ownership, it comes with limitations that can complicate changes in co-ownership. For second home buyers, especially those looking to co-own a vacation property with friends or family, a more flexible approach can make ownership easier and more enjoyable. Pacaso provides a flexible alternative through LLC co-ownership that allows for unequal shares, easier transfers and simpler management so you can enjoy your second home on your terms.  Interested in a more hassle-free way of owning a second home? View Pacaso

Forget everything you thought you knew about vacation property. A quiet revolution is reshaping how we own a piece of paradise, challenging the long-held reign of the While fractional ownership and timeshares promise regular getaways to your dream destination, vacationers want something more. One model offers genuine Is fractional ownership the same as a timeshare? Fractional ownership is not the same as a timeshare because it means you actually own a piece of the property, giving you an equity stake that can change in value. You also get more usage time, often weeks or months, in typically higher-end properties like luxury homes. Timeshares, on the other hand, are just a right to use a property for a short period (usually a week) with no actual ownership or equity gained.  What is a timeshare? The What is fractional home ownership?  While timeshares might restrict property access to just a few weeks annually, fractional property ownership often grants owners access for multiple weeks a year, contingent on the number of joint owners. Because these units have fewer owners than timeshares, fractional owners often have more of a say in decisions regarding property maintenance and upkeep. Many fractional properties also offer on-site storage for owners. Timeshare vs. fractional ownership: 8 differences Unlike short-term rentals, both timeshares and fractional ownership properties allow you to own part of your vacation experience. Although they share this similarity, these ownership models differ in seven key ways. 1. Number of owners The number of owners is an important factor to consider, since fractional owners may have to communicate and share decision-making responsibilities. Here is what to expect with both vacation ownership models: 2. Scheduling availability As a co-owner, you’ll need to be cognizant of when the shared home is available to book. The number of days or weeks the home will be available largely depends on how many owners there are. Here is what potential scheduling availability could look like for both options: When thinking about it in real-life terms: 3. Equity benefits A Here’s how this shakes out in real life: 4. Management Vacation homeowners can choose to share property management, hire a Here’s what management looks like for both:  5. Maintenance  Similar to management, Here’s what you can actually expect in these situations:  6. Building  One of the biggest differences between fractional ownership of a vacation home and timeshares is the type of structure you’ll be staying in. Here is what to expect: To think about this in the real world:  7. Cost Fractional ownership costs a lot more upfront because you're actually buying a share of a high-end property. Timeshares are cheaper to start, but you only get the right to use the property for a short time. Also, you'll pay ongoing fees that determine how much the average timeshare is per month, often between $140 and $500.  A real-life example looks like this: 8. Resale value  The resale process can look different for both ownership models. Here is what to expect when you’re ready to sell your vacation property: When thinking about this in real life: Other popular vacation options Timeshares and fractional ownership models aren’t the only ways to enjoy a vacation property. Let’s take a look at other popular vacation options like private residence clubs and destination clubs. Private residence club Private residence clubs are similar to fractional properties in that both offer Entry-level prices start at around $165,000 at the lower end of the market, and can easily exceed $800,000 for a private club in a Destination club A destination club grants members proprietary access to its services, which means high-end vacation homes on a non-equity basis in various locations around the world. Members eschew a traditional mortgage payment in favor of membership tiers that offer personalized services and amenities. Inventory is based on availability and can sell out quickly during peak times in popular areas. The Pacaso difference Pacaso’s professionally managed When it comes to fractional ownership vs. timeshare vacation home options, there are pros and cons to both models.  Owning a timeshare comes at a lower price, but you only own the block of time that you’re able to vacation there and will not benefit from equity. Private residence clubs and destination clubs are also worthy contenders for people who aren’t interested in a But if owning a portion of a real estate asset is what you’re looking for, then fractional ownership may be for you. With a

Shared ownership of real estate isn’t a new concept. In some cases, second home co-ownership happens through inheritance, when beneficiaries agree to share a family vacation home. Other times, it’s intentional — friends or relatives may pool their resources to purchase a second home as a more affordable alternative to buying one outright. In either case, owning a second home thorough DIY co-ownership often comes with hidden real estate challenges. Families change, friendships wane, people move, and priorities shift — all of which can add stress to home management and decision-making. Disagreements over schedules, costs, or even decor can escalate over time, straining both finances and relationships. Before you buy together, it’s important to understand what can go wrong. Many DIY co-owners make the mistake of putting multiple names directly on the property deed. While this can seem like the simplest way to share ownership, it can actually create personal liability. If a dispute arises or one co-owner defaults on payments, everyone’s personal assets may be at risk. Creating a clear LLC co-ownership operating agreement can help separate ownership from individuals, but creating and managing that structure correctly takes time, legal coordination, and ongoing oversight — responsibilities that can easily become burdensome for casual co-owners. Most informal co-ownership arrangements begin with good intentions but lack a formal operating agreement. Without one, there’s no clear roadmap for decision-making or conflict resolution. Co-owners may disagree about home management, maintenance costs, decor choices, or guest use, and those gray areas can quickly strain relationships. An operating agreement for second home co-ownership should spell out everything from who pays for what, to how the home can be used, to what happens if someone wants to sell their share. Without these guidelines, misunderstandings and tension are almost inevitable, especially when personal relationships overlap with shared financial commitments. Even the best relationships evolve over time. Divorce, job changes, or relocations can leave one co-owner wanting out. Without formal exit procedures, selling or transferring a share can become complicated and lead to other real estate challenges. When you enter a second home co-ownership agreement, you’re likely choosing people you trust and feel aligned with financially. But circumstances change. A once-stable co-owner may face unexpected challenges or simply lose interest in maintaining a shared property. Without a structured plan for how to handle those changes, an informal arrangement can quickly become a financial or legal headache. Sometimes second home co-ownership isn’t planned at all — it happens through inheritance. When multiple family members inherit a property together and take no formal action, they typically end up in an ownership structure called a tenancy in common. This means each heir has equal rights to use the property, regardless of their financial contribution. Without clear agreements in place, disputes can arise over who gets to stay when, how expenses are shared, or what happens if one person wants to sell. These disagreements can strain family relationships and, in some cases, lead to costly legal proceedings. Owning a second home with others might seem simple at first, but home management can quickly become a full-time job. DIY co-ownership means coordinating everything yourself — from cleaning and repairs to bills, vendors, and scheduling. When multiple owners are involved, even routine decisions can become complicated. Without a neutral party overseeing operations, disagreements may arise about which vendors to hire, how to split expenses, or who’s responsible when something goes wrong. Over time, these small frustrations can snowball into major conflicts, turning what was meant to be a relaxing getaway into a source of stress. Forming an LLC co-ownership structure on your own can help reduce some of the legal, financial, and emotional risks of second home co-ownership, but managing it yourself still takes time, coordination, and expertise. From finding trustworthy co-owners to setting up the LLC and handling ongoing home management, DIY arrangements can quickly become overwhelming. That’s where Pacaso comes in. We bring together qualified buyers, handle every aspect of the sale and LLC formation, and professionally manage the home so you don’t have to. Owners enjoy equitable scheduling, transparent finances, and a seamless experience backed by Pacaso’s expert team. With Pacaso, you focus on what truly matters — browsing picture-perfect listings, choosing a home you love, and enjoying every stay. We make second home co-ownership simple, secure, and turnkey.