HomeInside ICHHermes messagesRehabilitate a building through crowdfunding.

Rehabilitate a building through crowdfunding.

Rehabilitate a building through participatory financing? Revalue its value and obtain a greater profit on its subsequent sale. We tell you how.

When you have to sell an asset that is many years old, and many of them without investing in reforms or maintenance, the sale of the asset becomes very complicated.

Not just for the non-monetizable sentimental value. Mainly it is because the sales value expectations do not coincide with those of the purchase value, and this causes a long time in the sales process, months and even years, until, normally, whoever sells gives in and adjusts the price, or has a stroke of luck and this period of time some new factor comes into play. But it is better not to rely on luck.

Of course, it all depends on the type of asset and the potential buyer, since, if the asset is potentially exploitable, the buyer will reform it to start the activity and subsequent sale with added value.

Let's see an example: a 400 m2 single-family house built on a 800 m2 plot, on the second line of the sea in a town on the coast. An originator sees the opportunity to buy it to reform it entirely and make 5 luxury suites as tourist apartments, turning that house with a good location but horrible that nobody wants to visit, into a boutique hostel, with a profitability of double digits per year. 

To reach these attractive returns, you cannot do it thanks to mortgage loans or funds, since you would have to assume high financial costs for the high investment compared to the purchase value of the house. 

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In addition, the originators of projects like the one mentioned have finite resources, therefore they will be able to undertake few projects. However, there are thousands of opportunities like these, what a pity not to be able to realize them!

Buy well, rehabilitate with quality and controlled costs in the short term, and the return on investment will be optimal.

ICH offers you investment in equity (no loan without generating financial costs) to be able to share the profitability with other partners who trust the business proposal of exploitation of the boutique hostel and subsequent sale of the whole, know the area, know the originator, understand the risks they assume and their mitigators, in short, they would be willing to contribute part of the capital but not all, because they do not want to concentrate risks.

With the ICH proposal, everyone wins: the one who sells the house who has finally sold it with a price negotiation. By the way, he liked the project so much that he kept 30% of the stake, since he did not need 100% divestment. The seller wins since he can collect his commission per sale, and ICH investors win since they participate in an optimal profitability of an investment without volatility.

As long as the originator is a reference and the project is of quality with a balanced return, we will have investors. It is not easy to find an investor who contributes 1.500.000 euros, but if 10 investors contribute 150.000 euros. Many of them will be from the same locality, savers who want double-digit profitability and know that the new boutique hostel will be a success. 

Thanks to ICH and its Saas Crowd, it is possible to obtain, 100% digital and with an optimal cost of attracting alternative financing, in recurring equity.


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