Soaring house prices drive the world’s fastest unicorn

With the scorching heat of home sales and home prices hitting record highs each month, Pacaso could demand a $ 1 billion valuation for less than five-month businesses by splitting home ownership into fractional shares. It’s done.

Important reason: Pakaso’s Record surge To the Unicorn Position — Spencer Raskoff, co-founder of “The Fastest Growing Company Ever Seen” The latest episode of “Voice of Wall Street” — Reflects not only the market desire for companies to offer a fractional share of things, but also how expensive home ownership has become.

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Meaning: Pacaso, a startup that allows multiple people to share a villa, is convinced that the growing shortage of affordable housing is also a problem for high-income families and individuals.

  • “Many people want ownership of the second house, but for most people it doesn’t make sense to own the entire second house. It’s either too expensive, you don’t want all the hassle, or you don’t. Because, “I haven’t used it enough.”

  • “Therefore, if you need a place in Tahoe, Scottsdale, Napa Valley, Aspen, buy a quarter of the house through Pacaso or one-eighth of the house through Pacaso and buy that house the other two. You can share it with one family. “

How to use: Pacaso raises home prices by 10% to 12% and owners pay a 1% commission to manage their property. It is purchased as an LLC split between co-owners.

Reasons to ask again about this: The supply of new and existing homes available is at record lows.

  • Supply is limited as supply costs, especially the most important costs of timber, continue to rise, “the world supply chain is a kind of turmoil, so it’s four times higher than it was before COVID.” It remains as it is and could raise prices further.

  • That, coupled with rising mortgage rates, could drive more first-time buyers out of the market.

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