--- title: "Pacaso Review 2026: The 1/8 Second Home, the Markup It Never Names, the 6% Exit, and the Company Behind It" url: https://altstreet.investments/platforms/reviews/pacaso kind: platform-review updated: 2026-09-28 description: "Pacaso sells 1/8 shares of luxury second homes. Independent review: the undisclosed markup, 6% resale fee, 12-month hold, the 2026 owner settlements over an undisclosed use arrangement, $72M non-voting stock sale, lawsuits and bans." publisher: AltStreet (https://altstreet.investments) license: Public factual pages may be read, quoted and cited with attribution and a link. Bulk redistribution is not permitted. --- # Pacaso Review 2026: The 1/8 Second Home, the Markup It Never Names, the 6% Exit, and the Company Behind It Pacaso sells one-eighth to one-half shares of furnished luxury second homes through single-asset LLCs at a price that includes a markup it never quantifies, manages the homes for a monthly fee, finances up to 70% of the share with itself as guarantor, holds sellers to a 12-month wait on homes with unsold interests, and takes 6% on resale with no resale prices published. The company behind it, Pacaso Inc., has lost $260 million since 2020, sold $72.3 million of non-voting Class D stock to about 17,500 retail investors in 2024 and 2025 while recording $27.8 million of advertising expense for that sale, and faces a co-owner lawsuit filed in April 2026 that alleges fraud. Its September 2026 semiannual report discloses a second, separate set of disputes: settlements with co-owners of one home over Pacaso's non-disclosure, at the time they bought, of a use arrangement it had granted to another owner, paid in credits against their future operating expenses and a waiver of the 6% resale fee. AltStreet read every filing since 2021 and 124 pages of the site to set the product against the record. AltStreet score: 49.9 (C+), scored September 11, 2026. Method: https://altstreet.investments/platforms | Field | Value | | --- | --- | | Platform | Pacaso | | What it is | Second-Home Co-Ownership Marketplace and Manager (single-asset LLC interests sold to consumers; parent a Regulation A Tier 2 reporting issuer) | | Asset class | Residential Real Estate (Luxury Second Homes, US, Mexico and Europe) | | Website | pacaso.com | | Review first published | September 11, 2026 | | Last updated | September 28, 2026 | | AltStreet relationship | None: no affiliate, sponsorship or partnership | ## The short version Pacaso Inc. (Delaware, January 2020; Cincinnati and San Francisco; CEO and co-founder Austin Allison with 73.4% of the vote, Chairman and co-founder Spencer Rascoff with 18.4%) buys luxury second homes into single-asset LLCs, furnishes them, and sells one-eighth to one-half membership interests to consumers at a markup it does not quantify, then manages the homes for a fee (1,352 units under management at December 31, 2025), arranges financing of up to 70% with itself as guarantor, and runs a resale market at 6% (131 resales in 2025). The company reported revenue of $90.1 million in 2025 (down 29%), gross profit of $19.2 million, a net loss of $63.5 million after $25.5 million of advertising for its own stock sale, and a $260.3 million accumulated deficit; Deloitte's opinion is unqualified with no going-concern paragraph. From September 2024 to September 2025 it sold 24,958,207 non-voting Class D shares to about 17,500 retail investors for $72.3 million at $2.50 to $2.90 plus a 3.5% processing fee, behind a preferred liquidation preference of $283.8 million at the time, $290.7 million by June 30, 2026, and 21 months after Series C converted at $1.76. Its 15% two-year notes ($12.4 million outstanding) count the co-founders among the lenders; the July 2026 note form pays 10% for three years, unsecured, without a Pacaso Inc. guarantee and without a prepayment right. The legal record: a 2024 settlement with St. Helena capping it at four homes, a 2022 Sonoma ban, cease-and-desist letters from Palm Springs and Monterey County, a Newport Beach suit that vanished from the pending list, a 2-1 appellate win at Sullivan's Island, and Richter v. Pacaso (D. Colo., April 2026), a co-owner suit alleging Colorado securities fraud. No securities regulator has acted. - **6% and 12 months** The resale fee as filed and the minimum hold on any home with unsold interests. The site says 'sell at any time at a price of your choosing' with the hold in a footnote and the fee as 'a standard commission'. 131 resales in 2025; no prices published. - **$63.5M loss, -$38.8M operating cash** FY2025 net loss and net cash used in operating activities, on revenue of $90.1 million. Net losses of $36.1 million (2023) and $31.4 million (2024) preceded it. Adjusted EBITDA, the company's measure, was negative $21.3 million after adding back the offering advertising. - **1 lawsuit alleging fraud, 0 regulator actions** Richter v. Pacaso, Inc., filed April 2026 in Colorado federal court by two co-owners: state securities fraud, fraudulent inducement and concealment, civil theft, breach of contract. Municipal disputes in at least six California and South Carolina jurisdictions. No SEC, FINRA or state securities action found. - **$27.8M of $72.3M** Offering advertising expense in 2024 and 2025 ($2,285,000 plus $25,480,000) against gross Regulation A proceeds of $72.3 million: offering-advertising expense equaled 38.4% of gross proceeds (AltStreet arithmetic from the filed income statements and offering results; the accounting does not trace particular investor dollars to particular expenses). DealMaker's fees were capped separately at $3,310,000. - **$283.8M ahead** Liquidation preference of Series A ($22,978,000), B ($97,509,000) and C ($163,281,000) preferred stock senior to the Class D common that retail investors bought. Series C converted at $1.76 per share in June 2023; Class D sold at $2.50 to $2.90 in 2024 and 2025; the master-repurchase lender received Class B stock and a warrant at $1.056 in August 2025. Data note: AltStreet read of every EDGAR filing by Pacaso Inc. and the Pacaso Growth note issuers (2021 to April 2026), the FY2025 annual report and 2024 offering circular in full, a September 11, 2026 capture of pacaso.com, CourtListener docket search, the South Carolina Court of Appeals opinion, and a legal and customer-record scan. September 2026. ## Key figures | Figure | What it is | Context | | --- | --- | --- | | Undisclosed | The markup on each home, a core source of Pacaso's transaction economics | 1-K: 'the markup charged to third-party customers' · waived for officers and directors · no percentage anywhere | | 1,352 units · 131 resales | Co-ownership units under management and resales transacted in 2025 | Property management revenue $8.8M at 64% gross margin · 182 homes listed September 2026 | | 38.4% | Offering-advertising expense as a share of the $72.3 million Regulation A gross proceeds | Offering advertising expense $2,285,000 (2024) plus $25,480,000 (2025) · broker fees capped at $3,310,000 on top | | $283.8M | Preferred stock liquidation preference ranking ahead of the retail Class D common | Series C converted at $1.76 (June 2023) · Class D sold at $2.50 to $2.90 · lender stock and warrant at $1.056 (August 2025) | ## Verdict Pacaso is a large, unusually well-documented second-home co-ownership operator, with a six-year record, a Big Four audit and owners who mostly like the product. It is also a company that has never been profitable, that keeps the one number a buyer most needs (the markup) out of every document, that raised $72.3 million from retail investors for non-voting stock behind a preferred stack now standing at $290.7 million while recording offering-advertising expense equal to 38.4% of it, and that now faces a co-owner's lawsuit alleging securities fraud on top of a municipal record that already includes a ban, a settlement and cease-and-desist letters. This review is written for the buyer of a share first: what the markup, the monthly budget, the financing, the 12-month restriction, the 6% exit fee, the unpriced resale market, the manager's finances and the local ordinance mean for that purchase. The stock sale matters to that buyer as a description of the counterparty. Current co-owners, Class D shareholders and anyone comparing the model with a rental platform or a DIY LLC are the other readers. **Best for** - Buyers who will actually use a second home six or seven weeks a year, have computed the markup from the share stack, and can hold the share for years - Current co-owners who want the parent's balance sheet, the legal docket and the resale terms set out from the filings - Readers comparing co-ownership with a timeshare or a DIY LLC who want the structural differences stated precisely **Look elsewhere if** - You are buying as an investment: the markup, the 6% resale fee and the monthly costs are borne before any appreciation, and no resale return data exists - You need to exit on a schedule: unsold homes carry a 12-month hold, then a resale at another buyer's willingness to pay - You want to own the company: Class D is non-voting, dividend-free, unlisted and behind $290.7 million of preferred **Strengths** - Deloitte-audited annual reports plus semiannual reporting, with unit counts, segment margins, debt terms and covenant language, filed on time; a voluntary first-quarter update - A working resale market (131 transactions in 2025) with seller-set pricing, a company guarantee on co-owner loans, and property operations earning a 64% gross margin - A structure that a South Carolina appellate court found is ownership, not rental, and that Pacaso's own filings describe candidly, including the risk that a regulator treats home shares as securities **Limitations** - The markup is undisclosed; site fee language ('a small fee', 'a standard commission', 'a small non-refundable contribution') never states a number - Losses every year, a $260 million deficit, $46 million of debt including 15% notes, and a revolver draw period that lapsed in February 2026 with an extension 'being worked on' - Retail shareholders paid $2.50 to $2.90 for non-voting stock 21 months after the Series C conversion at $1.76; offering-advertising expense equaled 38.4% of the gross proceeds ## What this means for your decision. | Topic | Finding | | --- | --- | | | You are buying a share of one house, at a price that includes a markup Pacaso does not quantify, from a company that manages, finances and resells it | | | The company has never made money: $36.1 million, $31.4 million and $63.5 million of net losses in 2023, 2024 and 2025, and a $260 million deficit | | | The legal record is municipal, not regulatory, with one exception: a co-owner lawsuit alleging fraud, filed in April 2026 | | | About 17,500 people paid $2.50 to $2.90 a share for non-voting stock that sits behind $290.7 million of preferred stock, and offering-advertising expense equaled 38.4% of the gross proceeds | Pacaso is a real business: 1,352 co-ownership units under management, 131 resales in 2025, Deloitte on the audit, a Regulation A issuer that files on time and a product whose owners rate it 4.7 of 5 on Trustpilot. It is also a business that has lost money every year, that never states the markup inside its share prices, whose offering-advertising expense of $27.8 million equaled 38.4% of a $72.3 million retail stock sale, whose retail shareholders hold non-voting common stock behind $290.7 million of preferred, and that now has both a co-owner lawsuit alleging fraud in federal court and filed settlements with the co-owners of another home over what it did not tell them at closing. The product can work; the two things to price are the markup you cannot see and the parent you are relying on. ## Who it fits | Investor | Fit | Why | | --- | --- | --- | | Prospective Co-Owners Who Will Use the Home | neutral | | | Buyers Treating a Share as a Real Estate Investment | poor-fit | | | Current Co-Owners | neutral | | | Class D Shareholders From the Regulation A Offering | poor-fit | | ## Questions **What is Pacaso, and how does it work?** Pacaso is a company founded in 2020 by Austin Allison and Spencer Rascoff that buys luxury second homes into single-asset LLCs, furnishes them, and sells one-eighth to one-half membership interests in each LLC to individual buyers. Pacaso's subsidiary manages the LLC and the home for a monthly fee, its banking partners lend up to 70% of the share price to the LLC with Pacaso as guarantor, owners book stays through the SmartStay app (about six or seven a year for a one-eighth share), and owners resell through Pacaso's marketplace at a price they set, paying Pacaso 6%. At December 31, 2025 Pacaso managed 1,352 co-ownership units and had transacted 231 units in the year, 131 of them resales. It listed 182 homes on September 11, 2026 across the US, Mexico and Europe. **Is Pacaso legit, or a scam?** The record does not support calling it a scam. Pacaso Inc. is a Regulation A reporting company audited by Deloitte & Touche that files annual and semiannual reports on time, discloses its losses, debt, related-party dealings and lawsuits in plain language, and has managed co-owned homes since 2020 with a 4.7 of 5 Trustpilot score and no BBB complaints. What the record does show is a company that has never been profitable ($260 million of accumulated losses), that never states the markup embedded in its share prices, that raised $72.3 million of non-voting stock from about 17,500 retail investors while recording $27.8 million of advertising expense for the sale, that has been banned or restricted by several cities, and that was sued in April 2026 by two co-owners whose lawsuit alleges securities fraud. No securities regulator has acted. **What fees does Pacaso charge?** As filed: a markup on the property and furnishings that is a core source of Pacaso's transaction revenue and is described only as 'a percentage of the property and interior furnishing value' (waived for Pacaso's own officers and directors; never quantified); an origination fee and an interest spread on financing Pacaso arranges; program and property management fees inside each LLC's monthly budget ($8.8 million of property management revenue on 1,352 units in 2025); and a 6% resale fee. On the site: 'a small fee will be assessed at closing' for financing, 'a standard commission fee is deducted' on resale, 'a small non-refundable contribution to the reserve account' for resale buyers, and a 1% BitPay pass-through on crypto payments. Investors in the 2024 to 2025 stock offering paid a 3.5% Investor Processing Fee on top of the share price, retained by the company. **Is Pacaso a timeshare?** Not in the legal sense of a right-to-use contract: a Pacaso buyer owns a membership interest in an LLC that holds title to the home, and the South Carolina Court of Appeals ruled in February 2026, 2-1, that a Pacaso-managed home is owned rather than rented. Several California jurisdictions regulate it as a timeshare under their ordinances anyway: Sonoma banned fractional ownership in 2022, St. Helena capped Pacaso at four homes in a 2024 settlement and amended its ordinance in 2025 to name the model, and Palm Springs adopted a dedicated ordinance in 2024 and strengthened it in 2025. Whether a Pacaso is a timeshare where you are buying depends on that town's code. **Can I sell my Pacaso share? How does resale work?** Yes, through Pacaso. You set the price with a Pacaso market analysis, Pacaso markets the share to its buyer network, its own site and third-party sites, buyers can negotiate, and Pacaso deducts 6% at closing (the site calls it 'a standard commission'). If the home still has interests Pacaso has not sold, you must own for 12 months first. In 2025, 131 resales transacted and in the first quarter of 2026, 39. Pacaso says shares 'historically sell for an average 10% gain' but publishes no prices, times to sale or the data behind the average, and its resale FAQ's last step is 'we might recommend lowering the asking price'. **What happened with Pacaso's Regulation A stock offering?** Pacaso Inc. qualified an offering of non-voting Class D common stock on September 30, 2024 at $2.50 a share plus a 3.5% processing fee, raised the price to $2.80 in February 2025 and $2.90 in May 2025, and closed it in September 2025 after issuing 24,958,207 shares for about $72.3 million; the company said more than 17,500 people invested. DealMaker Securities was broker of record. The company expensed $27.8 million of advertising for the offering in 2024 and 2025, 38.4% of the gross proceeds. Class D shares do not vote (the CEO controls 73.4% of votes), pay no dividend, have no trading market, and rank behind $283.8 million of preferred stock. A further Rule 506(c) offering of Class D shares to accredited investors opened in July 2025 and had sold $369,850 to four investors by September 2025. The investor site now says the opportunity is closed to the general public. **Is Pacaso profitable? What do its financials show?** No. Audited by Deloitte, Pacaso reported revenue of $90.1 million in 2023, $126.6 million in 2024 and $90.1 million in 2025, with net losses of $36.1 million, $31.4 million and $63.5 million; the 2025 loss includes $25.5 million of advertising for its stock offering. Its own adjusted EBITDA was negative $20.4 million in 2024 and negative $21.3 million in 2025. Net cash used in operations was $38.8 million in 2025. At December 31, 2025 it held $52.2 million of cash plus $14.2 million restricted, and owed $46.1 million including $12.4 million of 15% notes and a $26.9 million revolver at 10% to 16% whose draw period ended in February 2026. The accumulated deficit is $260.3 million. In the first quarter of 2026 revenue was $25.7 million and the net loss $5.2 million. Management projects more than 12 months of liquidity. **What lawsuits is Pacaso involved in?** As of its April 30, 2026 annual report: Best Home Buyer LLC v. Kimball and Compass (Pitkin County, Colorado), in which Pacaso seeks a forfeited $695,000 deposit; Pacaso v. Town of Sullivan's Island (South Carolina), which Pacaso won 2-1 on appeal in February 2026 with the town seeking rehearing; and Richter v. Pacaso, Inc. (U.S. District Court, Colorado, filed April 2026), in which two co-owners allege securities fraud under Colorado law, fraudulent inducement and concealment, civil theft and breach of contract. Earlier: Pacaso v. City of St. Helena, settled in February 2024 with four homes grandfathered and no expansion, and Pacaso v. City of Newport Beach, filed in 2023, listed as ongoing in April 2025 and absent from the 2026 list without explanation. AltStreet found no SEC, FINRA or state securities action against Pacaso or its officers. **Who owns Pacaso, and who runs it?** Co-founder and CEO Austin Allison holds 117.4 million Class A shares carrying 10 votes each, 73.4% of all votes; co-founder and Chairman Spencer Rascoff, who has been CEO of Match Group since February 2025, holds 18.4%. Venture holders on the record include Maveron, GFC/Rocket and SoftBank's Vision Fund II, and the investor site names Fifth Wall and Greycroft; the preferred stock they hold carries $283.8 million of liquidation preference. The president since September 2025 is David Kallery, formerly president of Inspirato; the CTO is Daivak Shah and the CFO Alvaro Cortes. The company had about 141 employees at March 31, 2026. Several officers and directors own Pacaso shares themselves with the markup waived, the company leases an airplane from an entity the CEO controls, and the co-founders are lenders on the 15% notes. **Pacaso vs Arrived vs Ark7: what is the difference?** Pacaso sells a share of a house you use; Arrived and Ark7 sell shares of rental houses you never visit. A Pacaso share is a consumer purchase of an LLC interest at a price that includes an undisclosed markup, with monthly costs, a 6% resale fee and no income; Arrived and Ark7 interests are Regulation A securities with filed per-property rent and expenses, monthly or quarterly distributions, and exits through redemption windows (Arrived) or an in-house order book (Ark7). Pacaso Inc. is far larger and better audited than either parent, and far more indebted. If the goal is a place to stay, only Pacaso applies; if the goal is a return, only the other two report one. **I own a Pacaso share. What should I check?** Read the FY2025 Form 1-K on EDGAR (CIK 0001858206): the liquidity section (cash, operating cash burn, the revolver draw period, the note maturities) and Note 8 (debt and guarantees). Keep your LLC operating agreement and know how the manager can be replaced, who holds the reserve, and what the casualty clause says (four Malibu homes burned in January 2025). Check your town's timeshare and short-term rental ordinance for pending amendments. If you plan to sell, confirm whether the home has unsold interests (12-month hold), ask Pacaso for that home's resale history, and budget 6%. ## Update history **September 28, 2026: Semiannual report for the six months ended June 30, 2026: settlements with co-owners over an undisclosed use arrangement, a revolver extended at a smaller size, and a loss improvement that is one advertising line** Pacaso filed its Form 1-SA on September 28, 2026 (accession 0001493152-26-044650), unaudited and, in the filing's own words, not reviewed by the auditor, with 42 exhibits attached. The finding that matters most is not financial. Note 13 discloses that the company settled with certain owners of one Holding SPE over claims arising from 'the non-disclosure of a use arrangement granted to another owner at the time those owners acquired their Property Interests', recognizing $597,000, paid through credits against those owners' future operating expense billings rather than in cash, with the standard 6% resale fee waived on one 12.5% interest per owner. On the financials: net loss $12.5 million against $22.3 million, of which $9.4 million is the Regulation A offering advertising line going to zero, so adjusted EBITDA improved only $2.3 million; GAAP revenue $51.9 million including $20.5 million of reimbursable sales offset by an identical $20.5 million of reimbursable cost of sales; cash $36.6 million from $52.2 million; asset-level debt 71% of real estate assets from 65%; total equity $60.4 million after a $272.8 million deficit. The revolver question the FY2025 1-K left open is resolved, at a smaller commitment: a June 2026 amendment extended the draw period to June 2027 and cut the maximum from $50.0 million to $40.0 million. Of $11.1 million of Regulation D notes maturing in 2026 through August 31, $2.8 million was repaid in cash and $8.3 million extended 12 months at 15%. Malibu insurance stands at $15.0 million received, $1.1 million disbursed and $13.9 million restricted, 18 months after the fires. The preferred liquidation preference ahead of the retail Class D shares is restated throughout at $290.7 million from $283.8 million. ## Evidence appendix Platform website captured September 11, 2026. Five primary sources. (1) SEC EDGAR: every filing by Pacaso Inc. (CIK 0001858206) from the May 13, 2021 Form D through the April 30, 2026 Forms 1-K and 1-U, including the Form 1-A of September 9, 2024 and its September 26, 2024 amendment (read in full), the qualification of September 30, 2024, six 253G2 supplements (October 2024 to May 2025), the 1-SAs of November 21, 2024 and September 12, 2025, the FY2024 1-K (April 30, 2025) and FY2025 1-K (April 30, 2026, read in full), and the Form D of July 21, 2025 with its September 17, 2025 amendment; plus the Form Ds of Pacaso Growth LLC (March 10, 2023), Pacaso Growth II LLC (April 14, 2023), Pacaso Growth III LLC (April 2, 2024) and Pacaso Growth IV LLC (April 1, 2025), and the third-party notices of LifeLine Torch Pacaso LLC (2022) and Fifth Era Coinvestors, LLC - Pacaso (2025). (2) pacaso.com, 124 pages captured September 11, 2026 (home, how it works, FAQ hub and the resale, financing and ownership FAQs, financing, owner resources, owner experience terms, testimonials, careers, the listings index and 60 listing and destination pages) and invest.pacaso.com. (3) Legal scan: CourtListener docket search (federal cases and termination dates), the South Carolina Court of Appeals opinion 2026-UP-078, Law.com Radar (Richter), SEC litigation releases and administrative proceedings, FINRA actions; municipal actions from the Napa Valley Register, Press Democrat, NorthBay Biz, Malibu Times and San Francisco Chronicle, cited as reporting. (4) Customer record: Better Business Bureau profile (A+, not accredited, no complaints in three years) and Trustpilot (4.7 of 5, 197 reviews). (5) The Pacaso Growth IV LLC unsecured promissory note and subscription agreement, form dated July 8, 2026, obtained by AltStreet. Filed figures are in thousands of dollars as reported; site prices are as listed on the capture date; company press-release figures (17,500 investors, $280 million raised, average 10% resale gain) are labeled company-reported. **Highlights** - Regulation A offering (Form 1-A/A September 26, 2024; 253G2 May 30, 2025; FY2025 1-K): 'offering up to 28,957,528 shares of our non-voting Class D common stock (the Shares) at $2.50 per Share. The Company will also charge investors a fee (Investor Processing Fee) of $0.09 per Share (approximately 3.5%)'; 'There is no minimum offering amount and no provision to escrow or return investor funds'; broker DealMaker Securities LLC, '3.5% commission', fees 'will not exceed $3,310,000'; price raised 'from $2.80 per share to $2.90 per share' on May 30, 2025; 'The offering was closed during September 2025. Under the Regulation A offering, the Company issued 24,958,207 shares of Class D Common Stock for gross proceeds of approximately $72.3 million.' Offering advertising expense: $2,285 (2024), $25,480 (2025), in thousands. Net proceeds from Class D sales: $5,334 (2024), $62,524 (2025). - Capital structure (FY2025 1-K balance sheet and Item 4): Series A preferred liquidation preference $22,978; Series B $97,509; Series C $163,281 (thousands). 'Each share of Class A common stock is entitled to 10 votes ... each share of Class B and Class D common stock is non-voting'. 'As of December 31, 2025, there are a total of 1,598,791,096 votes eligible to be cast'; Austin Allison 117,359,191 Class A, 73.4%; Spencer Rascoff 29,364,799 Class A plus 1,206,690 Series B-1, 18.4%. SAFE note: 'a portion of the 2022 SAFEs were converted into 7,216,848 shares of Series C preferred stock at $1.76 per share'. Financing note: '710,248 shares of Class B common stock ... at an issue price of $1.056 per share' and 'a warrant that entitles the holder to purchase up to 2,840,991 shares of Class B common stock ... at a purchase price of $1.056 per share', Black-Scholes 'Stock price $2.90, Strike price $1.06'. - Results (FY2025 1-K, thousands): revenue $90,057 (2024: $126,560; 2023: $90,063); cost of revenue $70,811; gross profit $19,246 (2024: $21,490); operating expenses $69,166 including offering advertising $25,480, sales and marketing $14,163, G&A $14,904, technology $7,154, operations $5,017, holding costs $2,363; loss from operations $(49,920); interest expense $(9,923); interest income $5,049; other expense $(8,594) (the lender stock and warrant); net loss $(63,479) (2024: $(31,436); 2023: $(36,142)); net loss per share $(0.36). Adjusted EBITDA $(21,340) (2024: $(20,369)). Segments: co-ownership real estate and financing revenue $42,005, gross profit $14,525; property operations revenue $9,366, gross profit $5,950; reimbursable pass-through $38,686. Units: transacted 91, resales 131, NOW 8, deferred 1, total 231 (2024: 119, 120, 14, 26, 279); 'we sold 92 units compared to 145 units in 2024'; gross real estate transacted $84,658 (2024: $123,359); units under management 1,352 (2024: 1,256). Q1 2026 (1-U): revenue $25,743, gross profit $7,645, net loss $(5,219); units 33, resales 39. - Balance sheet and debt (FY2025 1-K, thousands): cash $52,237; restricted cash $14,233 ('$12,276 of insurance proceeds ... as well as $1,957 of cash in an interest reserve account'); real estate inventory $1,559; real estate investments $22,806; other long-term receivables $37,247; total assets $142,064; deferred insurance proceeds liability $12,008; SAFE investments $2,668; debt $46,096 (Holding SPE lines $6,787 at 3.5% to 11.0%, 'typically capped at 65% of the appraised value', weighted 6.4%; revolving credit facility $26,949, '$50 million ... matures in February 2029 ... 12 month draw period that ends during February 2026 ... interest rate is between 10% to 16%', covenants of unencumbered cash at least the greater of $10 million and 30% of the balance and net worth of at least $45 million; Regulation D offerings $12,360); master repurchase agreement '$100 million ... August 20, 2025 ... no balance drawn'; total stockholders' equity $70,815; retained deficit $(260,260). Cash flows: operating $(38,784), investing $(25,346) (including $(27,808) to acquire customer financing receivables), financing $102,887. Liquidity: 'The Company is actively working to extend the draw period, but if unsuccessful it could impact our overall liquidity'; 'The Company believes that its operating activities and current cash will be sufficient to continue to fund its operations beyond the next 12 months.' - Regulation D notes (FY2024 and FY2025 1-Ks; Form Ds): 'During March 2024, the Company initiated a Regulation D offering raising debt capital. Through December 31, 2024 the Company raised approximately $7.5 million of cash, which offers participants a 15% annual yield and a 24 month term. There are no conversion or other early redemption rights'; March 2025 offering 'approximately $0.9 million'; 'During 2026 through April 15, 2026, $6.4 million of Regulation D investments matured and $2.5 million of principal was paid to investors in cash and $3.9 million extended the term for an additional 12 months at the same terms.' Pacaso Growth LLC Form D (March 10, 2023): debt, $15,000,000 offered, $6,630,000 sold, 41 investors, minimum $25,000, related persons David Willbrand, Joseph Maehler, Austin Allison. Related party: 'the Company's two co-founders, directly or indirectly, both participated in contributing funds towards the debt raised via SEC Regulation D ... During 2025, the Company's co-founders extended the term of the agreement for 12 months.' - Growth IV note form (July 8, 2026, obtained by AltStreet): 'PACASO GROWTH IV LLC, a Florida limited liability company ... UNSECURED PROMISSORY NOTE'; 'The Borrower has borrowed, and/or may borrow, up to a total of $15,000,000'; 'Applicable Interest Rate means a simple interest rate per annum equal to ten percent (10%)'; interest 'at the conclusion of the quarter after the quarter of investment, continuing on every Interest Payment Date thereafter' ('within 5 business days of the last date of each fiscal quarter'); 'Maturity Date means the earlier of (a) 36 months after the Closing Date of the Note, or (b) the date on which the Investor accelerates'; 'The Borrower may not prepay the Loan in whole or in part at any time ... without the written consent of the Requisite Investors'; 'This Note shall not be assigned, sold, pledged, transferred or otherwise disposed of by the Investor except with the prior written consent of the Borrower' (Section 2) against 'This Note may be assigned or transferred by the Investor to any Person' (Section 12.8); use of proceeds 'by making loans (the Propco Loans) to Propcos'; events of default include interest unpaid for thirty days and bankruptcy of the Borrower; Florida law, Florida courts, jury waiver; investor represents the funds 'are not provided by or financed through any third party'; subscription page 'Number of securities: 10000000 Promissory Note, Aggregate Subscription Price: $10000.00 USD'; Canadian NI 45-106 and Form 45-106F9 and international investor certificates included. No guarantee by Pacaso Inc. appears in the document. - Product terms (FY2025 1-K; site): 'Pacaso generates revenue through the sale of interests in the Holding SPE and through transaction fees charged to buyers for facilitating co-ownership transactions, as well as through interior design services and our furniture program. These fees, calculated as a percentage of the property and interior furnishing value'; 'the Company waives the markup charged to third-party customers for the Company's role in facilitating the structure and property acquisition' for employees and directors; 'Pacaso offers services to facilitate owner financing for up to approximately 70% of the share price, with an origination fee associated based on the amount financed and the potential to earn additional interest above the prevailing market rate'; 'Pacaso typically collects a 6% resale fee upon successful transactions'; 'Generally, Members may own one-eighth and up to four-eighths of an individual Holding SPE'. Site: 'The loan is between our banking partner and the LLC. Borrowers access financing directly from the LLC.'; 'The Pacaso property cannot be encumbered by any other debt outside of the financing options arranged by Pacaso on behalf of the LLC.' - Malibu fires (FY2025 1-K Note 2): 'During January 2025, the Company was impacted by the fires in Malibu, California and surrounding areas. In total, four homes were a complete loss, three of which the Company retained no ownership interest'; 'The insurance proceeds are specifically related to an insurance claim to rebuild four single family homes and remediate one other home in Malibu ... and cannot be used for any general corporate purposes'; 'the Company received a total of $13,011 in insurance proceeds related to the Malibu fire claims ... $734 was disbursed ... leaving $12,276 ... reflected as restricted cash'. - Legal proceedings (FY2024 1-K, April 29, 2025, and FY2025 1-K, April 30, 2026): 2025 list: Pacaso Inc. v. City of Newport Beach ('The litigation is ongoing', 8:23-cv-01762-JVS-ADS), Best Home Buyer LLC and 3 CO Bighorn LLC v. Kimball and Compass (2023CV30142, $695,000 deposit), Pacaso Inc. v. Town of Sullivan's Island (2024-000134). 2026 list ('a summary of all pending lawsuits in which Pacaso is a party as of April 30, 2026'): Best Home Buyer (ongoing); Sullivan's Island ('The Court of Appeal recently ruled in our favor and the Town has asked for a rehearing'); 'Stefan and Nancy Richter, owners of a Pacaso home, filed a lawsuit against Pacaso, Inc. on April 22, 2026. The lawsuit seeks damages for securities fraud under Colorado state law, fraudulent inducement and concealment, violations of the Colorado Civil Theft Statute, and breach of contract related to the Richter's purchase of an interest in a home. The litigation is ongoing ... Case No.: 1:26-VC-01702 (United States District Court, Colorado)'. Newport Beach is not listed. Risk factor (2024 circular): 'we have been subject to a number of legal actions challenging or questioning our structure as prohibited timeshares, vacation rentals, or sale of securities ... it is possible that federal, state and/or foreign regulators could consider the sale of interests in our homes as the sale of securities in the underlying Holding SPE. In such cases, we could be sanctioned for past sales'. - Municipal record (reported): St. Helena settlement approved by unanimous council vote ending litigation filed April 2021; 'four existing Pacaso homes will not be subject to any further action and will be considered legal nonconforming uses' and 'Pacaso cannot expand its operations in the City beyond Pacaso's existing four homes' (Napa Valley Register, Patch, January 2024); council 'amended its ban on timeshares to expressly prohibit the company's home co-ownership model' (2025). 'Sonoma was the first city to ban timeshares and fractional ownership in 2022. Officials in Palm Springs and Monterey County have sent cease-and-desist letters to Pacaso' (NorthBay Biz, May 2024). Palm Springs 'unanimously adopted amendments to strengthen the existing co-owned managed-housing ordinance, which was first enacted in July 2024' (June 2025). South Carolina Court of Appeals, February 18, 2026, 2-1: the home 'is not a commercial short-term rental'; 'SC Lighthouse's method of ownership, while uncommon in the Town, does not constitute commercial use of the property' (Post and Courier). - Customer record: Trustpilot 4.7 of 5, 197 reviews, 87% five-star, 5% one-star; Trustpilot notes the company 'invites their customers to review' and 'Replied to 100% of negative reviews'; a 2023 review: after a year owners 'were assessed approximately $8K due to inaccurate budgeting' and 'monthly payments increased by 65%', 'a real bait and switch' (search-indexed excerpt); a June 2026 one-star review: 'So disappointed with response and service from Pacaso.' BBB: A+, not accredited, 0 complaints closed in the last three years, business started February 11, 2020, 447 Sutter St, San Francisco. - Governance and related parties (FY2025 1-K Items 3 and 5): officers Allison (CEO, 40), Kallery (President, 61, ex-Inspirato), Shah (CTO, 45), Cortes (CFO, 43); directors Rascoff (Chairman, 50, 'CEO of Match Group', 3-5 hours per week), Cumberland, Clinton, Levitan (1-2 hours per week). 'On April 1, 2021, the Company entered into a lease agreement with an entity owned and controlled by the Company's co-founder and CEO for use of an airplane to be used for business travel.' 'The following officers and directors currently own, or have sold, within the last three years, one or more 1/8 shares in a Pacaso home: Dan Levitan, Austin Allison, Spencer Rascoff, Lara Cumberland, and Daivak Shah.' 2023 compensation (circular): Allison $5,928 cash; Rascoff $75,000; Willbrand, Curry, Maehler, Cortes $270,000 each plus RSUs; Cumberland $300,000; Shah $280,000. Employees: 'approximately 141 full time employees and 2 part time employees' at March 31, 2026. Explorer Fund: 'the Company sponsors and manages the Pacaso Explorer Fund, LP, a private investment fund offered separately from our Regulation A and Regulation D offerings, through which it may earn management fees and carried interest allocations'; EDGAR full-text and company search on September 11, 2026: no filing. **Primary source pages** - SEC EDGAR: Pacaso Inc., CIK 0001858206, Form 1-K FY2025 (accession 0001493152-26-020603, filed 2026-04-30) and Form 1-U (0001493152-26-020608, 2026-04-30) - SEC EDGAR: Pacaso Inc., Form 1-K FY2024 (0001641172-25-006800, 2025-04-30); Form 1-SA (0001641172-25-027140, 2025-09-12); Form 1-A/A (0001493152-24-038369, 2024-09-26); 253G2 supplements (0001493152-25-008589, 2025-02-28; 0001641172-25-012933, 2025-05-30) - SEC EDGAR: Pacaso Inc. Form D notices 0001858206-21-000001, -21-000002, -22-000001, -22-000003, -23-000001, -25-000002 and D/A -25-000005 - SEC EDGAR: Pacaso Growth LLC (CIK 0001968560), Pacaso Growth II LLC (0001973615), Pacaso Growth III LLC (0002016936), Pacaso Growth IV LLC (0002063508) Form D notices - Pacaso Growth IV LLC, Unsecured Promissory Note and Subscription Agreement with accredited-investor certificates (form dated July 8, 2026; 20 pages; obtained by AltStreet) - pacaso.com: /how-it-works, /faq, /faq/resale, /faq/financing, /financing, /owner-resources, /owner-experience-terms, /testimonials, /careers, /listings and listing pages (captured 2026-09-11); invest.pacaso.com - South Carolina Court of Appeals, Pacaso, Inc. v. Town of Sullivan's Island, opinion 2026-UP-078 (February 18, 2026) - CourtListener docket index: Pacaso Inc. v. City of St. Helena (N.D. Cal. 3:21-cv-02493, terminated 2024-02-14); Pacaso Inc. et al. v. City of Newport Beach (C.D. Cal. 8:23-cv-01762); Richter v. Pacaso, Inc. (D. Colo. 1:26-cv-01702, filed 2026-04-21) - Napa Valley Register and Press Democrat (St. Helena settlement, January 2024; ordinance amendment 2025); NorthBay Biz (May 2024); Malibu Times; San Francisco Chronicle (April 2025) - PR Newswire, 'Pacaso Closes Oversubscribed $72.5M Raise, Attracting 17,500+ Investors', October 2, 2025 (company-reported) - Better Business Bureau, Pacaso profile (A+, not accredited, 0 complaints); Trustpilot, pacaso.com (4.7 of 5, 197 reviews) ## Related - Full review (HTML): https://altstreet.investments/platforms/reviews/pacaso - Every platform review: https://altstreet.investments/platforms/reviews - Methodology and scoring: https://altstreet.investments/platforms - Category hub: https://altstreet.investments/categories/real-estate --- Source page: https://altstreet.investments/platforms/reviews/pacaso Machine index: https://altstreet.investments/llms.txt AltStreet reads what platforms, funds and issuers file with the SEC and what they tell investors, and publishes the difference. Figures are as filed or as captured on the date stated; nothing here is investment advice.