If you are looking for good investment options, but don't have enough funds for buying a highly profitable business on your own, we can offer you an alternative - the use of Shared Ownership Investment (SOI) model for investing into the hospitality industry.
The idea behind the Shared Ownership Investment Model is very simple - a business owner sells a portion of his shares in his company to a group of investors. Those investors become his business partners and are eligible to a) receive dividends from the company's income; b) get their share of the sale proceeds when the business is sold; c) participate in the company's operation and have a voice in the decision making.
This concept is not new, it is a common practice for businesses when they need new partners and investors. What makes the Shared Ownership Investment Model different is the way how these investors are attracted. Normally a business owner would be looking for one or two partners who are able to invest large amounts of money, which is not always easy to find. Instead, what we offer is attract a whole group of small independent private investors formed into one consortium.
Consortium accumulate money from investors
Such consortium would accumulate the investors' money on an escrow account or a trust account, and when the required amount is collected, the consortium buys shares from the business owner. These shares then are distributed proportionally among the investors who participated in the consortium.
All organizational issues, such as the extent of the investors' participation in the company's operation and in the decision making, as well as how the dividends are distributed, will be determined in the initial agreement by collective decisions. In order to make this process transparent and effective, we offer the use of some elements of the blockchain technology.
After transaction is completed, investors become co-owners of business
After the transaction is completed, each investor receives his portion of the business' shares and becomes an individual owner of these shares, which he can sell or exchange at any point, if needed.
Here we would like to emphasize the distinction between the Shared Ownership Investment Model and the traditional investment in REITs. With the SOI model the consortium that collects the investors' money is a temporary entity, which is formed just to simplify the acquiring process. After the transaction is completed, this consortium is dissolved, and investors become the direct co-owners of the purchased business.
Therefore, the SOI model is appealing to both the business owners who are looking for investors, and to small private investors who are looking for good investment options.
From the individual investors' prospective the SOI model is very attractive due to the number of reasons. First and foremost, it gives an opportunity to participate in a large and more profitable investment project, which, otherwise, you would not be able to finance. With the SOI model you can invest only a fraction of what the project needs, and still become a part of a lucrative business and receive a high return on investment.
Another advantage is that you can withdraw from the project at any time by selling your shares to another investor. In addition to that, we select such investment projects where the turnaround period can be shorter, so that you can get your investment back (with the profit) much sooner. We achieve that by developing a business plan for expanding, modifying, or re-purposing the purchased business. This allows not only reducing the turnaround time (from 10-20 years to 3-5 years), but increasing the capital gain and investors' profit after the business is sold.
In addition to that, making an investment with this model is simple and risk free. Until the transaction is completed, your money will be kept on an escrow account or a trust account of the consortium. Meanwhile, there is a timeframe set for collecting the required amount of money. If this amount is not collected in time, the deal is off and your money will be transferred back to you.
Finally, there are several different options for investors that you can choose from, such as:
• You can be a sole owner of the business by buying 100% shares and running business by yourself.
• You can be a co-owner by buying a portion of shares without being involved in the business operation.
• You can buy initially all shares and then sell a portion of shares to other individual investors keeping your position of a principal co-owner and staying in charge of running this business.
Another advantage of the SOI model is that, unlike with buying shares in a REIT, here you can actively participate in the purchased business (if you wish), and make your input into improving the company's performance and increasing its profitability.
All investment projects that we select for the SOI model are based on the use of real estate properties, such as small hotels, lodges, hobby-farms, and rental properties. We specifically select only those businesses where the main assets consist of commercial real estate and lands.
Such approach helps significantly reduce the investment risk for our clients, because the value of businesses they invest in is supported by hard assets. In addition to that, we focus on selecting the projects that have good potentials for expansion and improvement, and, with the right planning and execution, can add value and increase profit.
For example, when we work with investment projects in the accommodation industry, we prepare a business plan that can include renovation and redesign of a small hotel or a resort, adding more rooms, targeting specific groups of guests who would pay higher rates, expanding seasonal use, offering additional services and entertainment, etc.
As a result, the Real Estate Based (REB) Businesses that we select for our investment projects are more secure, have more room for the profit increase, and therefore, are more appealing to our clients-investors
We've been working with investors in real estate for many years and would be glad to offer our expertise. One of our strong features is a thorough approach to selecting the best possible options that would yield the most profit to our clients. You can be sure that all investment projects that we offer to potential investors, have gone through a rigorous selection in terms of expected return, price appreciation, potentials for improvement, and low risk.
Another advantage of working with us is that we offer a wide range of investment options. We work with different types of properties in different countries and regions. We monitor the ever changing real estate markets and pick those where the current conditions are most favourable for investment. And of course we help our customers - private investors, take full advantage of the Shared Ownership Investment (SOI) model. Finally, we provide guidance and support to our clients through the entire process. You don't need to worry about unknown procedures, unexpected obstacles and hidden problems. We will be there for you at every step.
If you are looking for the best ways to invest your money into profitable and secure businesses based on the use of commercial real estate, please contact us via phone/whatsapp or email.