Real estate fintech startup Pacaso has launched its own equity program, according to a company announcement on Wednesday. With the Referral Grant Equity Program, real estate agents and Pacaso homeowners and employees can receive 500 restricted stock units (RSUs) for each closed buyer referral.
Agents will continue to receive 3 percent commissions for closed buy-side transactions, and Pacaso homeowners will continue to receive $2,500 in operating expense credits for each closed referral, the company explained.
“From day one at Pacaso, we were very purposeful about creating maximum commission opportunities for our real estate agent partners,” Pacaso Co-founder and CEO Austin Allison said in a prepared statement. “It’s the right thing to do, and a recognition of their hard work and invaluable local expertise. But, we wanted to do even more.”
“With this program, real estate agents can benefit from Pacaso’s growth and participate in our long-term success while enjoying a generous referral bonus in the form of equity,” Allison added. “Our owners have been instrumental in supporting Pacaso’s early growth, so including them in this program was a no-brainer.”
Agents, homeowners and employees will receive payment at the end of the vesting period, which is when Pacaso goes public or is sold. Pacaso’s price per common share is $0.86 and its price per preferred share is $4.15, which the startup said is based on its $1 billion valuation.
The startup said those vested in the program can use the preferred share price of $4.15 to estimate the value of their RSUs; however, the final price per share and RSU value won’t be determined until Pacaso goes public or is sold.
“The restricted stock units are assigned a fair market value when they vest,” an Investopedia explainer read. “Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes. The employee receives the remaining shares and can sell them at their discretion.”
Pacaso employees and homeowners who leave Pacaso or sell their share of a co-owned property before the vesting period ends will be able to keep their RSUs. Furthermore, the company will grant retroactive RSU referral credits to homeowners, Allison explained.
“For agents and employees, RSU’s will be granted from June 9 onward,” he added.