New name for an old concept: Co-Owner of a house

I.e., a timeshare, but a house, not a condo.
You own a 1/8th share of an LLC, the asset of which is the house, and you get to live in it for 44 days of the year. I guess you can sell your share to someone else. You can “give”/“rent” your days to someone else.
Not sure what happens when the “managers” (they buy a house, sell shares to make their profit, then provide upkeep and maintenance for 12% of the share cost per year!) go bankrupt or start providing shittier service.
BIg Q: How do the owners collectively sell the house in whole, because it would be profitable to do so? Is that even possible? I mean, Pacaso could simply buy back shares of the house (lower than market), then sell them to someone else at a profit.
Also, what if the house is destroyed? Does each shareholder need homeowners insurance, or is it taken care of by the “LLC”, i.e., where some of that 12% goes to?

I’ve never done a time-share. Do they have a cleaning service come through between each stay? What’s to prevent me from smoking indoors or otherwise ruining the place for others? Can I rent it out as an AirBnB during my stay?

Way too many questions for me to want to get involved.

My guess: the LLC owns the house, so they take out the policy. Note it wouldn’t be a typical homeowners policy since it’s a corporation. Rather, it be more akin to a Condo Association type policy where the expectation is that the “partners” would be responsible for $X of the deductible (and any co-insurance).

The “partners” of the LLC would likely then take out something akin to a Condo policy (think ISO HO-6 type policy) where there is an assessment coverage to help cover the assessed $X (subject to a much smaller deductible).

I had to google this but apparently they charge a $100/month maintenance fee per owner, so they pull in around $800 a month per property for upkeep. I assume they also charge an additional fee to cover insurance, utilities, and taxes.

Seems like a neat idea. It seems way better than owning a time share, but also way more expensive.

The only reason it’s better than a timeshare is BECAUSE it’s more expensive. This is the elite’s version of a timeshare, complete with a legal structure designed to evade the dreaded “timeshare” moniker.

In the article in the OP, it notes an annual 12% fee. On a $600,000 share (no, not the house price, the SHARE price), that’s $72,000 per year for vacationing at the same place for 44 days split up at least three different time frames (two weeks max per stay). I mean, sure, if you time them to your wine club pickups, you save, what, $10 on shipping?

Reading the FAQ it looks like just about everything is still paid by the owners.

Home operating costs, such as property management, maintenance, taxes and repairs, are passed along directly to owners transparently with no markup. Costs are shared pro rata. Owners pay an additional $99 monthly fee which covers LLC oversight, ongoing owner support, and the technology that enhances your owner experience.

The article isn’t worded the greatest… It’s (12% of the purchase price when it’s initially sold), and monthly fee. Monthly fee being $100/month.

So… a commission?