How to Finance a Casago Franchise: Vacation Rental Portfolios
By Marc Cornella
A Casago franchise loan pays for something unusual in franchising: a local vacation rental management business whose main asset is a portfolio of homeowner contracts rather than a storefront. Franchise partners market, clean, maintain and book other people’s vacation homes under the Casago name, so borrowed money goes mostly into people, vehicles, supplies, working capital and, in many deals, an existing management book.
This article explains how the Casago model works, what to look for in the Franchise Disclosure Document (FDD), how the brand’s SBA Franchise Directory listing helps, and how financing differs for a new market, a converted company and a portfolio purchase.
US Professional Funding is not affiliated with, sponsored by or endorsed by Casago; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so review the current FDD with a franchise attorney and an accountant before you sign.
Casago Franchise Loan at a Glance
- Concept: full-service vacation rental management for homeowners, run by locally owned franchise partners under the national Casago brand.
- History: founded in 2001 by Steve Schwab, a former U.S. Army Ranger, starting from a small vacation rental business in Puerto Peñasco (Rocky Point), Mexico.
- Headquarters: the company describes itself as headquartered in Scottsdale, Arizona.
- Footprint: the company reported 72 destinations in four countries as of May 2025, with franchise locations in the U.S., Mexico, Costa Rica and Aruba.
- Recent growth: in 2025 Casago completed the acquisition of a large national vacation rental management platform and has been placing many of those homes with local franchise partners.
- Franchise fee, royalty and total investment: not published on the franchisor pages we could verify; read Items 5, 6 and 7 of the current FDD.
- SBA Franchise Directory: listed under code S8145 with no additional directory notes.
What Is Casago?
Casago began when founder Steve Schwab bought a small vacation rental company in Puerto Peñasco, Mexico, later rebranding it as Casago. The company now describes itself as a franchise-driven vacation rental manager serving homeowners across North America, Belize, Costa Rica and the Caribbean.
According to the company, locally owned franchise partners handle marketing, guest services, maintenance and housekeeping while keeping control of local operations, and the franchisor supplies the brand, technology, training and support. Casago says nearly 95% of its U.S.-based local operating partners hold top-tier host or partner status on the major booking platforms.
Who Casago franchises to. The franchisor says it works with experienced property managers who already have a book of business as well as new managers, in both developed and undeveloped markets. Some partners convert an existing company; others build a market from the first home.
Why lenders view it as a service business. A vacation rental manager owns few hard assets. Its value lies in homeowner agreements, the bookings those homes produce and the team that serves guests, so lenders focus on experience, portfolio stability and cash flow. A diversified book of homes across several strong seasons is generally viewed as steadier than one tied to a single peak.
How the Casago Model Shapes Financing
Portfolio growth drives revenue. Management fees grow one home at a time, so a new market can take a long time to reach break-even and working capital matters most.
Seasonality is built in. Payroll, insurance and loan payments arrive every month, while bookings cluster in peak seasons. Projections should be monthly, not annual.
Guest and owner funds are held in trust. Guest deposits and owner proceeds belong to others and are often subject to state rules. Lenders want clean separation from operating cash.
Casago Franchise Costs
Budgeting a Casago franchise loan starts with the FDD. The franchisor pages we could verify do not publish fee or investment figures, so the current FDD is the only reliable source for numbers.
Initial franchise fee. Item 5 discloses the initial fee and any pricing differences by market or for converting an existing company. In an SBA 7(a) request the fee is usually part of the total project cost.
Office, vehicles and equipment. Many operations need a small office plus storage for linens, supplies and tools, along with maintenance vehicles, laundry capacity and smart home devices such as smart locks.
Licensing and insurance. Depending on the state and locality, managing short-term rentals can require a real estate or property management license, local permits and occupancy tax collection. Budget for liability and errors and omissions coverage.
Portfolio acquisition costs. Buying management agreements adds a purchase price plus transition costs such as inspecting homes and onboarding owners.
Opening costs and working capital. Item 7’s additional funds line shows the franchisor’s estimate of cash needed for the initial period. With seasonal revenue and gradual portfolio growth, many borrowers plan a larger cushion.
Total investment. When you receive the FDD, list each Item 7 line item with its range:
- Initial franchise fee
- Training travel and expenses
- Office and storage lease, deposits and setup
- Vehicles, tools, housekeeping and laundry equipment
- Computers, phones and required technology
- Licenses, permits and insurance
- Opening supplies, linens and initial marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Casago Franchise Loan
Royalty and brand fees. Item 6 lists the royalty, any brand or marketing contribution and technology or reservations fees. In vacation rental management, fees are often tied to booking revenue or to management fee income, so be clear on which base applies.
System fees. Casago says the system provides round-the-clock guest support, revenue management and a full technology suite. Find out which carry separate charges and how they scale as your portfolio grows.
How lenders factor them in. Lenders start with projected management and service fee income, subtract royalties, payroll, housekeeping, rent, vehicles, software and insurance, and then confirm the remaining cash covers loan payments with room to spare in the slow season, not just the average month.
Franchisor Requirements for New Owners
The franchisor’s verified pages do not publish minimum net worth or liquid capital figures. They do say Casago looks for partners who share its vision and mission and who will do things legally and correctly, and that interested candidates should contact the company directly. Ask for current financial requirements during discovery.
Training and support. New partners receive Casago University training, technology and mentoring from the executive team, plus group purchasing for everyday products.
The approval process. Expect an inquiry, discovery calls, FDD review, conversations with leadership and existing partners, and signing. Run your financing conversation in parallel.
Ways to Own a Casago Franchise
Opening a new market. A partner starts in an open destination and grows by signing homeowners, so financing must include a solid working capital reserve. Our franchise start-up financing page explains this route.
Converting an existing company. An independent manager rebrands as Casago, and lenders can underwrite the company’s operating history. Ask how conversion terms differ.
Buying a portfolio or an existing location. Casago’s own news pages describe franchise partners taking over large groups of homes, including a San Diego partner that added more than 150 coastal homes in 2025. Buying management agreements, or buying an existing Casago location from its owner, requires franchisor approval and careful review of owner retention. Our guide to buying a franchise resale covers transfers, and our page on real estate services acquisition financing explains how these purchases are structured.
Financing Options for a Casago Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, setup, vehicles, working capital or the purchase of an existing company or portfolio. For a low-collateral service business, it is often the most practical route.
SBA 504 loans. The SBA 504 program finances owner-occupied real estate and long-lived assets. It rarely fits a new location, but an established partner might use it to buy an office and warehouse building for housekeeping and maintenance operations.
Conventional term loans. Established partners may use a conventional business loan to buy another book of homes.
Equipment and vehicle financing. Maintenance trucks, housekeeping vans, laundry equipment and smart home devices can be financed separately to preserve working capital.
Working capital and lines of credit. A line of credit can cover payroll and supplies during the slow season or while onboarding a large group of new homes. See our options for real estate services working capital. Never use guest deposits or owner funds for operating needs.
Seller financing on portfolio purchases. A seller may agree to carry part of the price, sometimes with payments tied to how many homeowners stay after the transition. Seller notes are typically subordinate to the senior loan, and SBA rules can limit how they are structured.
SBA Loans for Casago Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory, which shows the franchise agreement has been reviewed for SBA eligibility. Casago is listed under code S8145 with no additional notes, so the standard SBA franchise review applies without brand-specific conditions. A listing does not approve any borrower.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. SBA tips: document the source of your equity injection, show how you will meet any state and local licensing and permit rules, and build projections around homes added each month and seasonal occupancy rather than a flat revenue figure.
How Lenders Evaluate a Casago Deal
Credit, net worth and liquidity. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee. With little collateral, lenders weigh post-closing liquidity heavily. Our article on how lenders read an FDD explains which items set your cash needs.
Industry and management experience. Hospitality, property management, short-term rental hosting, housekeeping operations or general management experience all help.
Business plan and projections. Model homes under management by month, seasonal booking revenue per home, fees, owner turnover and staffing, and show the slow-season cash position.
The FDD and franchise agreement. Lenders review Item 17 for the term, renewal and transfer rules, and Item 10 for any franchisor financing. Item 19 shows whether the FDD includes financial performance representations.
For acquisitions, the portfolio itself. Expect to provide a list of homes, management agreements, booking and fee history, owner retention data and trust account reconciliations. Agreements that owners can cancel on short notice carry more risk than longer commitments.
Multi-Unit Growth and Development
Growth usually comes from adding homes inside a market, then adding nearby destinations or buying another manager’s book. Each step can be financed separately once the first location shows steady fee income. Our guide to multi-unit franchise financing explains how lenders combine cash flow across locations.
Real-World Casago Franchise Loan Scenarios
An independent manager converting to the brand. A local company with years of operating history joins Casago and uses an SBA 7(a) loan for the franchise fee, technology transition and a working capital cushion. The lender underwrites the existing book and its tax returns.
A hospitality professional opening a new market. A former hotel manager opens in an undeveloped destination and keeps a large reserve for the first slow season.
Buying a retiring owner’s location. A buyer acquires an existing Casago location with franchisor approval, combining a senior loan with a seller note tied to homeowner retention.
Common Mistakes to Avoid
- Building projections on annual averages instead of seasonal months
- Underestimating how long it takes to add enough homes to cover overhead
- Mixing guest deposits or owner proceeds with operating cash
- Buying a book of homes without checking cancellation terms and owner retention
- Overlooking local short-term rental permits and occupancy tax rules
- Leaving too little cash to staff housekeeping when a large group of homes arrives at once
For more pitfalls, read about the franchise loan mistakes that cost owners the most.
Next Steps to Finance Your Casago Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm requirements. Ask about net worth, liquidity, experience and any conversion terms.
Step 3: Estimate payments. Use our SBA loan calculator for rough planning; results are not an offer or approval.
Step 4: Build a seasonal plan. Project homes under management, bookings by month, staffing and the slow-season cash position.
Step 5: Assemble documents. Gather tax returns, a personal financial statement, a resume, the FDD and, for a conversion or acquisition, the portfolio records.
Step 6: Apply and close. Submit the package, coordinate franchisor approval and open separate trust and operating accounts.
Casago Franchise Loan FAQs
How much does a Casago franchise cost?
The franchisor pages we verified do not list the total investment. Item 7 of the current FDD gives the estimated range, and any portfolio purchase is an additional cost.
What is the Casago franchise fee and royalty?
Items 5 and 6 of the FDD disclose the initial fee, royalty and other ongoing fees, including any technology or reservations charges.
How much liquid capital or net worth do I need?
The verified pages do not publish a minimum. Ask the franchisor, and plan for an equity injection plus enough reserves to carry the business through a slow season.
Is Casago SBA-eligible?
Yes. Casago is listed on the SBA Franchise Directory under code S8145 with no additional notes, so a Casago franchise loan can be SBA-backed. Each borrower still needs approval.
Can I convert my existing vacation rental company to Casago?
The franchisor says it works with experienced managers who already have a book of business. Lenders will underwrite your existing history.
Can I finance the purchase of a portfolio of homes?
Often, yes. Lenders review the management agreements, booking and fee history and owner retention, and a seller note may cover part of the price.
Does Casago offer financing?
Check Item 10 of the FDD, which discloses any financing the franchisor offers or arranges.
How long is the franchise term?
Item 17 lists the term, renewal and transfer rules. Lenders prefer a term that covers the loan.
Can I add more destinations later?
Ask the franchisor about territory availability. Lenders usually want the first market performing before financing growth.
What documents do lenders need?
Tax returns, a personal financial statement, a resume, the FDD, a seasonal business plan and, for an acquisition, portfolio and trust records.
Final Thoughts
A Casago franchise loan rests on people and homeowner relationships more than on hard assets. Borrowers who plan for seasonality, keep trust funds separate, settle licensing early and model portfolio growth honestly give themselves the best chance of approval.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and real estate services financing solutions.
