Pacaso

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.