Ask HN: Which real estate startups need a broker licence?
6 comments
I'd also be worried about the SEC
Yeah that's a good point. I think Pacaso deals with it by not holding any ownership in the properties, so they're not actually selling shares.
Their model just seems to be organizing an LLC with a special operating agreement, giving access to their app, etc. Almost like a legalzoom with a much bigger fee.
Their model just seems to be organizing an LLC with a special operating agreement, giving access to their app, etc. Almost like a legalzoom with a much bigger fee.
just remember this regulators eventually catchup up and if it looks like a fish and smells like fish you can call it what ever you want. I'm not trying to say don't do it. just make sure you understand the legality.
Agreed - I hadn't really considered the SEC angle, I'll make sure I get proper legal advice for that as well.
NancyFXTrade(1)
From what it seems, Pacaso isn't claiming to actually buy or sell property on behalf of anyone, they're setting up an LLC for fractional real estate investment, and:
> choosing and managing the property management company; maintaining the LLC and resolving any disputes between owners or the municipality; continually innovating and improving the Pacaso app
But it does seem like it's a gray area. Obviously I'll need to consult an attorney but I wanted to get a better idea of the situation first.