Brad Day and his neighbors in California’s Sonoma Valley have noticed a real estate startup is turning houses in their community into limited liability corporations. A group has formed to oppose the company’s moves. Day’s favorite sign reads, “The Pacaso house is the big one on the right with no soul.”
The company was co-founded by a Napa resident, and it converts houses into LLCs. Pacaso then sells shares of these corporate houses to multiple investors. Gardner Googled Pacaso, and, sure enough, the house on their cul-de-sac was on its website. The company had named the house “Chardonnay” and was now selling investors the chance to buy a one-eighth share of it for $606,000.