Welcome to Stop Pacaso Now!

Pacaso bullies are at it again!  

Pacaso has spent $$$ lobbying to override local  zoning regulations in Utah where they own 15 houses.  In March 2023, Utah Senate Bill 271 was passed by both houses and sits on the Governor's desk for signature.

The town of Park City worked hard to create and pass zoning regulations that would keep Pacaso and similar fractional ownership companies where they belong - in business districts with hotels and bed and breakfasts.  

Needless to say, Pacaso will work hard to parlay this success into a template to lobby other states where Pacaso has a financial interest.  

Alert your legislators - don't let them be sold Pacaso's slick spin.

Sullivan's Island, SC is a small community with a population of  1,89.   It is 2.5 square miles with no hotels and strict regulations banning short term rentals. 

In 2022, Pacaso purchased a home in Sullivan's Island to the ire of the entire community.  The Town sent a cease and desist letter to Pacaso.  On February 9, 2023, Pacaso's appeal was heard by the Board of Zoning Appeals and denied.  

It is worth the watch/listen:  http://sullivansislandsc.suiteonemedia.com/web/Player.aspx?id=492&key=-1&mod=-1&mk=-1&nov=0 

It gets particularly interesting when the applicant's local legal representative took questions at 37 minutes.

Pacaso filed a federal lawsuit on April 6 challenging the city's determination that Pacaso's shared homes amount to timeshares, which are prohibited by city code.

In July 2021 U.S. District Judge William H. Orrick dismissed one of the lawsuit's five "causes of action" against the city by applying California's anti-SLAPP statute, which is intended to prevent plaintiffs from using lawsuits to interfere with people exercising their free speech rights in connection with public issues.

In March 2022, the St. Helena City Council  amended its ban on timeshares to expressly prohibit the company’s home co-ownership model.

“We have a place for tourists, and it’s not in our neighborhoods,” said Vice Mayor Paul Dohring.  The council passed the new regulations 5-0.

In In March 2023 the pre-trial schedule for the case was released.   Unless it is settled out of court, the jury trial is set for January 2024.

PRETRIAL SCHEDULE:

Fact discovery cutoff: June 9, 2023
Expert disclosure: July 14, 2023
Expert discovery cutoff: August 14, 2023

Dispositive Motions heard by: September 20, 2023

Pretrial Conference: December 11, 2023 at 2:00 p.m. 

Trial: January 8, 2024 at 8:30 a.m. by Jury

Check out this latest email dated March 2023 received by one of our supporters

"It was a rough week for the economy, and you might be asking: How should I use my money?

I’d love to talk about how Pacaso can help you to diversify and expand your portfolio into real estate, a purchase class which has historically been a safe and resilient place to park money during uncertain times. Not to mention, a second home is a tangible place where you can make lifelong memories, unlike a U.S. Treasury bill.

And for a limited time, you can own a luxury second home for just 5% down with Pacaso’s special offer. But act fast, this ends on April 30, and limited homes remain. Reply to this email to learn more!

Michael Botefuhr
Pacaso"

2020 was the year when venture capital money was plentiful and everyone was throwing money hoping to land a winner.  Pacaso had early investors and the promise of financing for the purchase of homes.  So much so that within months, based on co-founder Spencer Rascoff's success with Zillow, they were touted to be a 'Unicorn.' 

In contrast, 2022 was the year when it all turned bad for the tech industry.  Pacaso's last investment dollars came in September 2021 from Softbank, who only months later had their own meltdown in value.

Now in 2023, the debacle of SVB (Silicon Valley Bank) is playing out with a connection to Pacaso, an unlisted startup in the SoftBank portfolio.  The WSJ warned "Lender’s collapse could force reckoning on valuations of unlisted startups—of which SoftBank is a major backer"

Pacaso was once considered a $1B  Unicorn in the tech world.  But, all of that came to a crashing halt in 2022.  Like many tech companies, they grew during the early days of covid - in their case, to 300 employees. And, like many tech companies they laid off most of their employees in 2022 and the beginning of 2023.

"Legal expenses, to the extent incurred on behalf of the LLC, may be passed through to the owners as a Basic Expense of the LLC"
Found under Owner FAQs  6/21

"The owner group can vote to remove Pacaso as the manager of the home and self-manage the property."

Found under Owner FAQs 6/21

NOTE: Whether the owners decide to self-manage or Pacaso remains the manager, management agreements CAN CHANGE.  The Code of Conduct, a selling point to potential Pacaso neighbors, is not guaranteed if management changes or the management agreement is amended.

Since the LLC shareholders are anonymous to one another, their only point of contact is through Pacaso

"Owners are not permitted to rent out or sell time on vacation rental sites or other public rental listing services. "

Found under Buyer FAQs 6/21

NOTE:  Remember, this statement is part of Pacaso's Code of Conduct, which is NOT on the deed to the property and CAN be changed at any time.  

NOTE: Many jurisdictions restrict – or ban outright – short-term vacation rentals yet Pacaso has ignored them and moved right in.

"Owners  may cancel with no penalty up to 60 days prior to their scheduled stay." 

" If the property is not re-booked, the dates count toward the cancelling owner's annual stay night calendar for the year. " 

Found under Owner FAQs 6/21

NOTE:  Hospitalization? Smoke from nearby fires impacting the quality of air?  Family emergency?  Mandatory Evacuation?  Extended Power Outage?

"Prospects are whole home listings that meet Pacaso’s highly selective  criteria: epic homes in amazing locations. To purchase the whole home,  contact Julian Johnston, The Corcoran Group. If enough buyers are interested in co-owning this home, we’ll buy the home and turn it into a Pacaso."

Found under Buyer FAQs 6/21

NOTE:  Most of the pages of listings on Pacaso's website are Prospect Listings; homes that are not owned by Pacaso but are for sale on the MLS

Here are the links to the FAQs on the Pacaso website: 

• Buyer FAQs
• Scheduling FAQs
• Owner FAQs
• Agent FAQs
• Seller FAQs
• Neighbor FAQs
• Referral Equity Program FAQs