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The platform allows users to purchase “weeks” of a vacation property, with each fraction registered in the real estate registry.
Founded during the pandemic quarantine period, Loogar addresses the challenges of acquiring and maintaining a second property. The company’s model allows investors to own a share of properties in desirable locations at a fraction of the cost of full ownership.
Constanza Vera, Loogar’s founder, explains the company’s approach: “We create a unique community of ‘loogareños’ who can buy properties in dream destinations at an accessible cost, with the option to enjoy them or rent them out.”
Loogar’s portfolio includes properties in Chilean tourist hotspots like Pucón and Algarrobo, as well as international destinations such as Punta Cana and Tulum. Investment costs start from 3.6 million Chilean pesos, making vacation property ownership more accessible to a broader market.
The company’s revenue model is threefold: fraction sales, property management fees, and a 10% commission on rentals facilitated through their platform. Loogar aims for investors to achieve a 10% return on investment, with an average expected return time of 7-8 years.
To ensure the security of investments, Loogar purchases properties through mortgage loans and acquires insurance. The company also plans to implement smart locks and other security measures. Additionally, Loogar retains four weeks in each property to facilitate exchanges and address potential conflicts between co-owners.
Loogar’s property management service is comprehensive. The company handles furnishing, bill payments, and coordination between co-owners. They’ve established a standardized service with clear rules on property use and scheduling. Maintenance and renovations are managed through the administration service, with inventory checks and renewal plans based on product lifecycles.
Technology plays a crucial role in Loogar’s operations. The company is developing a microinvestment management platform for investors and uses an algorithm for property week valuation based on data from Booking and Airbnb. Future plans include incorporating blockchain technology and exploring smart contracts as client understanding of these technologies grows.
Loogar’s expansion strategy focuses on high-growth destinations in Latin America. The company is open to investors to accelerate growth and is exploring partnerships with tour operators and restaurants to enhance the “loogareño” experience.
Sustainability and community impact are key considerations for Loogar. The company aligns its operations with specific UN Sustainable Development Goals and sources furnishings and decor from local artisans. By increasing property occupancy rates, Loogar aims to promote more sustainable tourism in its chosen destinations.
However, Loogar faces challenges, particularly in educating first-time investors about their model. The company currently relies on email marketing and social media to share information about real estate investment and their specific approach. Managing legal and regulatory challenges across different countries is another hurdle, which Loogar addresses by working with specialized law firms.
To increase investment liquidity, Loogar is developing a secondary market for fraction resales and plans to offer instant buyback options in the future. While not directly competing with vacation rental platforms like Airbnb, Loogar aims to create a preferred network for members to use their investments for vacations.
Looking ahead, Loogar is considering expansion to urban destinations based on vacation potential. The company is also developing algorithms to anticipate market fluctuations and continually testing and adapting its marketing strategies to attract new investors.
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