After a $5 million investment, it wants to be everywhere people vacation

Here are vacation rental investment opportunities located in the popular, family-oriented destinations of Big Bear, CA; Clearwater, Florida; and Gatlinburg, Tennessee.

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Two very popular business models in the real estate industry have collided with the launch of Here, a company facilitating fractional investments in short-term rentals and vacation properties.

The company has secured $5 million in a seed round led by Fiat Ventures. Also contributing are Liquid 2 Ventures, a fund founded by NFL legend Joe Montana; Mucker Capital; Basecamp Ventures; and Cooley.

Launching in the first quarter of 2022, Here offers real estate investment opportunities located in the popular family-oriented destinations of Big Bear, CA; Clearwater, Florida and Gatlinburg, Tennessee.

“The traditional ‘American Dream’ of owning a home with a white picket fence is dead,” Here founder and CEO Corey Ashton Walters said in a statement. “Between a 20% down payment, inflation and high interest rates, buying a home is out of reach for most young Americans. At the same time, data shows that 75% of all US travel spending will come from Millennials and Gen Z by 2025. The opportunity has never been hotter.”

Short-term rentals are an extremely lucrative business despite the controversy that follows the tech companies that make them possible. It was reported by Curbed that New York City now has more Airbnb listings than long-term rentals available, which may explain the company’s impressive growth in the first quarter. Vacasa has also had quite a year.

Fractional ownership came to prominence primarily with Pacaso, which allows families to own shares in luxury homes and access them based on their percentage ownership. Ember is another fast-growing player in this space.

Interested investors browse properties on its own mobile listing portal and buy shares in securitized properties from the SEC, according to the company. Here, a quarterly dividend is provided on rental income, making it a less risky destination for capital. Accredited investors are also welcome to participate in the property offering.

Classified as a fintech (financial technology company) Tuk seeks homes in stable, cash-flowing vacation markets, as opposed to well-known luxury destinations such as Malibu, Aspen or the Hamptons in New York.

“I launched Here to democratize access to high-quality real estate investments,” Walters said. “We deliver the best destination markets with the highest returns to investors of all sizes.”

Owning a piece of real estate has historically been limited to passive income-oriented investors who could form LLCs for long-term holdings or those who purchased REITs or real estate investment trusts.

Companies like Here, Arrived, Groundfloor, LEX and others are formalizing new models for how real estate can be bought and sold, both for investment and residence. Pairadime, for example, provides a framework and resources for multiple unrelated parties to purchase a primary residence.

“We like the company’s vision, but most important is the speed, determination and creativity that Corey brings every day,” said Fiat Growth Managing Partner Marcos Fernandez. “We are honored to be a small part of their big vision by leading their seed round.”

Here has plans to rapidly expand to more than 20 markets by fall 2022, the company said in a statement.

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