Unicorn Startup or Terrible Idea?
I was cruising Facebook a few weeks ago and one of my "friends" posted an article about a new startup and wondered why she hadn't thought of this.
I thought to myself, "because it's a stupid idea". But it's part of a new wave of stupid ideas that I've noticed lately and they are all just rehashes of old stupid ideas.
I starting thinking this way when I first heard about WeWork. It was the talk of the startup world and a totally stupid idea. It was just a rehash of the old executive suite fad of the 90's and they just put in online with insane pricing models. Further, there were no starbucks around where you could work for free when "office share" was starting. And of course WeWork failed.
Now I'm reading about the next weird rehash of one of the most shady concepts ever in real estate, "The Timeshare". A couple of successful founders from other crap got together to start Pacaso which is a poorly named company that allows you to buy 1/8 of a second home.
There are a lot of people out there investing in real estate, which I think is a huge problem but that's something for another post, and they want to own luxury 2nd homes.
So with Picaso you can now purchase 1/8th of one. To me this comes with all the problems of timeshare but with even more costs which make it a stupid investment.
You can read more https://www.bloomberg.com/news/articles/2021-03-24/rascoff-s-pacaso-vaults-to-unicorn-status-as-greycroft-invests, but in short Picaso sells 8 pieces of a luxury home for a 12% commission and a monthly management fee. So that's an 84% commission on 1 property.
They even buy the furnishings for the house, at a fee of course. The main difference between this and a traditional timeshare is that these are single-family homes while most timeshares are in multifamily buildings.
Their marketing assures you that there is more to it but there really is not. You just get to pay a lot more for the problems of a timeshare but silicon valley thinks this is a great idea.
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I would be investing in 3d printed home manufacturers. Frankly the entire RE market is overvalued and has been since the NINJA loan days.
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3d printed homes are interesting. And yeah people think real estate is a good investment but rising home prices are one of the reasons we can't manufacture here anymore. Workers cant afford to live unless we pay more and we are not going to do that lol
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I find it would be a huge mess. What would happen if the house requires work and money for some damages or if it burned down due to an accident. I personally think it would cause too many issues when people are going to complain about what parts they own and who pays for what.
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Well - that is a great idea for the ones getting paid 12% * 8 on every house. Don't have to sell many houses that are 500k to make a decent living.
I get the draw of real estate, but the amount of headaches you will face. Buy a REIT, and go on Vacation. Owning one house is enough work and investment to keep looking nice.
The current real estate play I am interested in is buying raw land and setting up Hipcamps - people love to get away
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