Matt Williamson, founder of Plum, understands why real estate is a perennially attractive investment and the obstacles that keep many people from investing in a second property. According to a 2022 Bankrate survey, 29% of people cited real estate as their primary investment choice. However, buying a second home is difficult for individuals and families on limited budgets. One way around this problem is to enter into a co-ownership arrangement.
The only issue? Group ownership of residential properties can seem overwhelming. With so many moving parts to consider, many people see it as an impractical dream. Matt Williamson has built Plum as an accessible solution for the common problems of property co-ownership. With Plum, people can make their dream of investing in real estate a reality.
Grit Daily talked with Williamson to find out more about his vision for co-ownership and simpler real estate investing.
Grit Daily: Let’s start from a high-level view of co-ownership. What’s happened around it in recent years?
Matt Williamson: The sharing economy has allowed for a democratization of equity ownership, with companies like Airbnb and Uber using technology to facilitate trust and open up new commercial arrangements. However, this model is more accurately described as a “renting economy” because it simply allows those who own assets to rent them out, rather than truly sharing ownership.
Grit Daily: And this is where you see co-ownership as a next step?
Matt Williamson: Absolutely. The next trending paradigm in the sharing economy is co-ownership, where people can own property together using technology to build trust.
Plum is leading this charge in co-ownership of vacation homes, with a vision of a world where everyone can co-own anything.
Grit Daily: That’s interesting. How did you come up with Plum?
Matt Williamson: Well, we often take summer beach vacations with extended family and friends and someone inevitably mentions that we should all “go in” to buy a vacation home versus renting every year. Everyone agrees and puts on the dream hat that evening. By the next morning, it’s a lost thought until the next time we vacation together the following summer.
Grit Daily: I’m sure a lot of people can relate. How did these seeds turn into Plum?
Matt Williamson: After selling my last company, I had some time to reflect on this opportunity. I began hundreds of hours of research and interviews with families who’ve had experiences with co-owning a second home.
I found that most had similar challenges with how to get started. These challenges continued to be significant through the buying stage and the ongoing management of the property for almost all co-owners.
I knew that there was a better way, so the vision of a world in which everyone can own anything through the power of co-ownership was born, starting with vacation homes.
Grit Daily: The vacation rental industry is dealing with pushback in at least some communities with affordable housing shortages. Is that issue relevant to the vacation co-ownership industry?
Matt Williamson: So far, Plum has not run into affordability pushback, though local vacation rental markets can have varied issues.
Grit Daily: Plum isn’t the only fractional real estate platform on the market. What makes it appealing to those interested in co-ownership?
Matt Williamson: You’re right. Shared ownership of real estate isn’t new. In fact, there are over two-million co-owned houses in the United States today. What’s different with Plum is that Plum CoOwnership is an asset-light model where we do not take ownership of properties, unlike many alternatives on the market.
Grit Daily: Can you go into more detail on what makes it “asset-light”?
Matt Williamson: Sure. Plum is the simplest way for people to buy and own homes together. The Plum CoOwnership platform allows for the flexibility to co-buy any vacation home that fits the needs of the group, including property type and location.
Our platform and processes enable the exploration, the group formation, the shared property selection, the buying and ongoing management process, etc. Plus, everything’s done while protecting the interests of each member of the group and the relationships between them.
Grit Daily: If I’m interested, do I have to bring my own group to the table? Or does Plum facilitate the formation of groups?
Matt Williamson: Both options are available. We enable co-ownership groups that have already been formed, such as a group of extended family or friends, as well as the formation of completely new groups. Some groups are a hybrid whereby one or two co-buyers may get together to look for additional co-buyers on the Plum Marketplace.
Grit Daily: Is Plum real estate truly an investment or is it more geared toward vacationing parties?
Matt Williamson: You might be surprised to learn that most Plum co-owners tend to have an investment-first viewpoint, though aspirational use as a dream home has been important for all of them. Prospects and co-owners often consider the investment in a Plum CoOwnership vacation home as a way to fund at least a portion of their vacation usage. The cost-efficiency and adaptability of the platform allow for a balance of boat usages.
At the end of the day, Plum provides co-owners and investors an opportunity to own, enjoy, and financially benefit from a dream vacation property that they often wouldn’t be able to afford solely on their own. It’s a shared co-ownership model that removes some of the biggest barriers to getting the most out of an investment real estate property.
