Co-Own a Second Home on Maui 

Pacaso on Maui

A luxury second-home or condo on Maui is becoming more attainable with a new co-ownership model introduced recently by Pacaso. Pacaso, created by a group of former Zillow execs, is a tech-based marketplace that connects luxury real estate buyers and sellers to facilitate affordable co-ownership of second homes in the most desirable locations around the world.

They have initially brought co-ownership opportunities for homes and condos in Kapalua and Wailea, but are expected to acquire other luxury residences around Maui soon. This co-ownership model essentially breaks the ownership of the property into quarters, with each owner being given three months. 2 months are selected throughout the year and one month each for the most desirable months in the winter. 

So, if you are really only able to spend 2-3 months in your Maui vacation home and you’re not looking to rent your property for rental income when you are away, it could be an attractive and convenient alternative to a traditional purchase.

What Pacaso on Maui Does for Buyers

Pacaso has a very interesting co-ownership model that enables buyers to purchase a quarter to a half of a condo or home instead of paying for the entire property. These may be contemporary homes or luxury condos for sale in Wailea or in other prestigious locations across Maui. The condos and homes that are listed for sale are high-end with a sales price that equals or exceeds four times the median value of homes on Maui.

Thanks to the co-ownership structure the homes sold through Pacaso on Maui have occupancy for close to 90% of the year. Pacaso purchases the homes initially, and they are resold in fractional ownerships. Through Pacaso, up to four separate buyers may purchase fractional ownership in a property.

Innovative Financing

Pacaso also has an innovative financing model that currently offers a very attractive rate sheet. At 50% down, a buyer can capitalize on a loan 3.5% interest on the other 50%, even while national second home interest rates are above 6%. They offer a 10-year ARM with no prepayment penalty. You could also choose to work with a local Maui lender to finance the deal too.

Pacaso Listings on Maui

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The Impact on the Community

Co Own Second Home on Maui with Pacaso

Thanks to Pacaso’s innovative system, many people who may not have been able to enjoy a luxurious lifestyle in their own Maui home or condo can now live that experience. In the process, they can positively contribute to the local economy. However, Pacaso will do more than bolster Maui’s economy. Pacaso has graciously supported Puko’a hina’ole, which is the island’s exclusive water quality lab.

Its support was initiated with a $10,000 donation. This will grow with additional donations made for each home that is purchased through the Pacaso system. The lab, which was established in 2020, focuses on research, education, and community health, and it is affiliated with the University of Hawaii.  Its objectives are to promote great water quality for Maui’s residents and to protect the coral reefs throughout the state.

Many in the local community have been hesitant to welcome this concept to the island. However, the model for Pacaso could actually improve Maui's affordability crisis if it were running at a larger scale. Many of our second homeowners own full residences that stay empty nine months out of the year, the Pacaso model allows them to co-own that home with 3 other second home owners thereby decreasing overall demand on this market and keeping them from buying something closer to the median price point.

It's also important to remember Pacaso is very selective about the types of luxury properties they offer and are not looking to 'buy the whole island up'.

Pacaso's local market principal, Brandon Sacks, is a long-time Maui resident and passionate about Hawaii land use and housing. Speaking with him recently, he had this to say

"I really appreciate how we are enriching lives by making second homeownership possible for more people, while at the same time making our limited housing supply more efficient. Which means less building and more supply for locals, while maintaining the economic contributions offered by second homeowners."

Maui Properties For Sale

The Benefits of Co-Ownership 

Furthermore, Pacaso on Maui may minimize waste and ensure optimized use of condos and homes on Maui. Specifically, many second homes around the world are only occupied for a few months of the year. Some of these homes are used as short-term rentals for the remainder of the year. However, many of Maui’s elite communities specifically forbid the use of homes as rentals.

This means that these second homes would sit idle for months of the year when they otherwise could be enjoyed fully by multiple owners. Through Pacaso’s fractional ownership structure, real estate use on the island is optimized. This is true for many other luxury communities throughout the United States, and Pacaso is also active in some of these other markets. 

Generally, fractional ownership of homes and condos is not permitted on the island. However, Pacaso’s unique system enables it to bypass the established, related laws for the benefit of potential homebuyers. Some local residents have expressed concern about the impact that Pacaso’s activities may have on the affordability of homes in the area. After all, the real estate market is tight across all price points. However, Pacaso states that its activities will not impact housing affordability because it exclusively operates with high-end homes that are offered for sale far above the median home price on the island.

How Pacaso Works

Pacaso Second Home Maui

Many real estate agents like myself have clients with high standards as they search for luxury homes or condos in Wailea and other luxury areas of Maui. However, some of these clients have been priced out of the homes that live up to their expectations because of Maui’s extraordinary housing market. Pacaso on Maui enables us to help our clients find a second home that they will love. 

Luxury homes and condos are initially purchased by Pacaso and are placed in an LLC. Buyers can search through a range of premium listing options. Once they find something that they are interested in, they can purchase a share of ownership for the LLC that owns that particular home. Specific details, such as access dates are predetermined in the LLC documents.

Pacaso will not have any ownership interest in the property after the transaction has been completely finalized. Pacaso’s innovative app, Pacaso Access, enables buyers to conveniently shop for a home through a mobile device. For taking advantage of this convenience, buyers may receive up to a $10,000 credit that is applied toward closing costs.

Expect More Inventory

At first, Pacaso hasn't had a lot of different properties to choose from. The first Maui listing through Pacaso was located in the prestigious, gated resort community of the Ironwoods on the Kapalua Bay Golf Course, overlooking Ironwoods Beach. Currently, there are shares available at Ho’olei in Wailea, one of the most sought-after luxury condo communities in Hawaii. Three other listings have also sold, but we expect this to gain some traction and open up possibilities for buyers looking for a second home for just a few months of the year.

Learn More Today

Pacaso is a relative newcomer to Maui’s real estate scene, but it is already making an impact with its offerings. You can conveniently view the current listings on my site and keep up with future listings as they become available. For more information about the second-home possibilities available to you through Pacaso and how the fractional ownership system works, please give me a call at 808-214-4799 or send an email to


Get In Touch!

Evan Harlow Maui

Evan Harlow is a Realtor on Maui who has the expertise, experience, and work ethic to help you achieve all of your real estate buying or selling goals. We promise exceptional service and support from the beginning of the process through closing and beyond.

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