In
the

newest
episode
of
the

Power
House
podcast,


Pacaso
CEO
and
co-founder

Austin
Allison
visits
the
show
to
talk
about
the
pros
and
cons
of
the
co-ownership
mortgage
model,
affordability
issues
in

real
estate,
and
strategies
for
understanding
and
developing
a
strong
monetization
strategy
based
on
a
company’s
total
addressable
market.

Pacaso
is
a
co-ownership
marketplace
that
offers
vacation
home
listings
to
buyers
that
don’t
wish
to
own
a
vacation
property
year-round.
Buyers
own
the
property
alongside
others
to
split
costs
and
save
money
over
time.

HousingWire
CEO
Clayton
Collins
begins
the
conversation
by
exploring
Allison’s
background
in
real
estate
before
he
founded
Pacaso.
At
the
age
of
18,
Allison
began
his
career
in
real
estate
in

Ohio
after
learning
about
it
from
his
father
through
carpentry.
Eventually,
he
saved
up
$4,000
and
bought
his
first
home.
Years
later,
while
in
law
school,
Allison
was
inspired
to
launch
his
first
real
estate
tech
company,


Dotloop,
to
automate
his
duties
and
help
consumers
simultaneously.

Allison
traces
his
love
for
entrepreneurship
back
to
his
desire
to
solve
problems
and
follow
his
passions.
From
there,
he
surrounded
himself
with
the
right
people
who
could
boost
him
to
new
heights
he
hadn’t
realized
before.
Mentorship,
angel
investments
and
perseverance
caused
Allison’s
company
to
skyrocket.
He
stresses
the
importance
of
remaining
patient
when
it
comes
to
entrepreneurial
success.

“You
see
the
same
with
people
who
have
hits
on
the
radio.
You’re
like,
‘Wow,
this
guy
came
out
of
nowhere.’
No,
actually
they
started
doing
the
work
and
singing
when
they
were
a
child.
They
were
grinding
it
out
in
karaoke
bars
in
Nashville
for
15
years
before
they
had
a
break,
and
almost
every
startup
story
is
like
that,”
Allison
says. 

As
the
conversation
progresses,
Collins
and
Allison
dive
into
the
importance
of
total
addressable
market
(TAM),
which
is
a
way
to
figure
out
how
much
a
product
could
make
if
it
captures
100%
of
a
market.
Allison
then
discusses
Pacaso’s
business
model
and
how
it
captures
profit
within
its
TAM.
It
charges
customers
a
small
mark-up
based
on
the
total
volume
of
homes
sold
in
their
market
and
the
unique
value
delivered
by
the
firm.

This
value
allows
Pacaso
to
capture
a
small
percentage
of
the
market
for
second
homes,
which
could
mean
billions
in
profit
over
time. 

From
there,
Collins
asks
Allison
to
explain
Pacaso’s
co-ownership
market
and
what
sets
the
company
apart
from
traditional
co-ownership
models.
Overall,
co-ownership
is
a
popular
category
that
Pacaso
thrives
in
by
making
the
process
easy
for
homeowners
who
don’t
have
friends
or
family
to
share
ownership
with.
Pacaso
protects
buyers
from

foreclosure
and
assists
with
resale,
should
the
situation
arise.

Allison
also
predicts
growth
in
the
co-ownership
model
due
to
the

rising
affordability
issues
in
the
housing
market.
To
further
illustrate
his
point,
Allison
presents
an
air
travel
analogy
to
simply
explain
the
benefits
of
co-ownership.

“Why
do
we
fly
on

Delta
or

Southwest?
If
you
can’t
own
the
whole
plane,
you
pool
your
resources
together,
and
it’s
a
lot
cheaper,
more
accessible
and
more
efficient
for
us
to
fly
on
an
airline,”
Allison
says. 

Allison
closes
the
conversation
by
exploring
ways
that
a
second
home
can
promote
unity
and
happiness
within
a
family
in
ways
that
a
primary
home
can’t.
He
recalls
his
past
experience
with
purchasing
a
second
home
and
hopes
to
give
other
buyers
the
same
opportunity.

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