3i2ari.com Story

3i2ari.com Story

Business Name and What It Does

3i2ari.com is a Real Estate Business Offering Fractional Property Ownership to its Clients

3i2ari.com is a real estate business offering fractional property ownership to its clients. We specialize in overseas property acquisition. Our vision is to make real estate investment accessible to many people. The greatest barrier to entering the real estate market is capital. People do not have enough money to own real estate. Therefore,  we provide our clients with the opportunity to own fractions of properties with family, friends, or some of our other clients.

Clients contact us via our website and inform us about the capital they want to invest and whether they want to own the property with family and friends or match it with potential co-owners. Once we have all the information, we find our clients the perfect property matching their capital and investment interests (i.e., residential, commercial, etc.). Not only can our clients enter the real estate market with small capital, but they also have fun investing in their favorite types of properties. Whether they would like to own a studio and lease it, have an Airbnb-friendly flat, or buy agricultural or farmlands, and plant some organic crops in it, is up to them. We provide our clients with the opportunity for 3i2ari to manage their investment for a given fee. This means we can manage their properties for them, such as leasing, rent collection, and maintenance. We created a voting structure that enables property co-owners to make any decision. For example, one co-owner would like to reside in the property for a given period, or another has a great investment idea for the property. They can decide what to do with their properties based on voting. This is paralleled by a legal document each co-owner signs when purchasing their property shares, in which they agree on a voting structure for future property-related decision-making.

What Distinguishes 3i2ari.com from Other Real Estate Share Selling Businesses

We found that this type of ownership is much more interesting for many real estate enthusiasts than buying shares on some real estate apps. Buying shares on real estate apps is similar to investing in dividend stocks or foreign currency markets. It is a speculative type of investment that does not provide the investor with the opportunity to own a physical asset. Clients drawn to us are investors who prefer to have a physical asset at hand. Some have future plans to buy the asset from the co-owners, while others have investment ideas for their properties. For instance, a bunch of friends might be interested in owning a cottage at the beach. They would like to lease it on Airbnb for certain periods of the year, make monthly returns, have fun, and reside in it during other periods. They can do that with us, starting with a modest capital. However, most of our overseas clients like to own a cottage in Lebanon. They plan to reside there during their visit to Lebanon (mostly in the summer). During their absence, they ask to lease and manage the properties, generating monthly returns while overseas.

We offer overseas property acquisition. The COVID-19 pandemic had an impact on the economy and consequently on the real estate markets worldwide. For instance, in Lebanon, real estate prices dropped in certain areas by 300 %. Many international investors had their eyes on the Lebanese real estate market. They wanted to buy the dip but had no means of doing so. We solved that by providing them with the opportunity to complete the full property ownership legal process from overseas. Lebanese diaspora in the United States, Canada, and Brazil constitute most of our overseas clients.

Figure 1: 3i2ari.com services.

About the Owner of 3i2ari.com

I am a researcher in aeronautics. I spent four years in the United Kingdom, completing a Master of Science and a Master of Research in aeronautical engineering at Imperial College London. I  was also employed to research wing tip vortices. At the start of the COVID-19 pandemic, I relocated to Lebanon, my home country, as the cases in the UK were rising at unexpected rates. During that period, I worked remotely with Imperial College London on a publication in the American Institute of Aeronautics and Astronautics. I saw an opportunity in the real estate market. Prices dropped significantly while fiat currencies had a risky outlook and Lebanese banks defaulted. Not only did real estate prices majorly drop, which was a great opportunity to buy the dip, but risky bank outlook and poor credit ratings (Moody’s credit rating was a C and S&P was a D) provided people with a strong incentive to invest the money they had in their accounts.

Challenges and Solutions to Challenges that 3i2ari.com Faced

The primary challenge I faced was launching at a low cost. My business requires lawyers for property registration and other legal aspects involved in fractional property ownership. I did not want to hire lawyers at the early stages to minimize the launching cost. So, I called a law firm and offered them a case-by-case partnership. That means they get paid a fixed amount of money for each property registration, contract, or any other legal document or job. I would not be risking any capital. My lawyers get paid once clients decide to purchase a property. I had an appointment-only policy to save on rental costs. When clients go through our online process and decide to purchase a property, we give them an appointment at our partner law firm and pay the law firm a fee for renting an office in their firm for a day.

The second primary cost was hiring brokers. I contacted brokers who were independently working (freelancers). I made them the following offer to counter this problem: you post your properties on my company’s website, and for each sold property, we would only charge you 0.5% commission, which would be the cost of maintaining our website and marketing the properties. So not only did I pay brokers, but I added to my company’s 2.5% commission from our clients. I had a 0.5% commission from brokers, which adds a 3% commission per sold property.

The last major cost was building the company’s website. I had a great experience in coding from my academic career in aeronautics but not in building websites. My experience was in high-performance computing, which means using supercomputers to solve advanced computation problems. I took an online course on building websites on a specific platform and built the website myself. The overall cost to launch my business was surprisingly low. It was only  50 USD, the cost of purchasing the website domain name and hosting it.

Figure 2: One of 3i2ari’s social media ads https://www.instagram.com/3i2ari/.

Opportunities for 3i2ari.com

I was lucky to launch my business at the right time when the bank outlook was uncertain, and real estate prices dropped significantly. That was a great and rare opportunity for my business. Such a combination of poor credit rating and a large drop in real estate prices happens rarely and is caused by large events, which in this case was the COVID-19 pandemic. Our innovation in fractional property ownership gave us access to a wider range of clients than conventional real estate firms. That opportunity is available in other countries, which gives us great motivation to expand. We communicate with experienced and interested individuals who would be good candidates for potential overseas partners. We provide them with a website designed for real estate and free access to our lawyers while we share sales commissions.

Advice to Launch Innovative Businesses

My advice for anyone starting a new business, particularly those innovating in business, is not to focus so much on barriers. You must start from somewhere and figure things out during the process. Innovative businesses face a lot of unknowns since, by definition, no one has done the same business before. Therefore, there are not a lot of resources to learn from. This scares a lot of people from executing their ideas. However,  if you can find smart ways to minimize your expenses and launch your business idea within a reasonable budget, go for it and be flexible enough to modify and adapt your business model to the market needs. I run two businesses while doing a Ph.D. in Aeroacoustics at Canada’s top engineering university. Was I to overemphasize barriers, I wouldn’t have started any of my businesses. My primary concern was time management, but I worked my way around it by building the right teams in each business, and everything worked out fine.

Nutritionist, Cornell University, MS

I believe that nutrition science is a wonderful helper both for the preventive improvement of health and adjunctive therapy in treatment. My goal is to help people improve their health and well-being without torturing themselves with unnecessary dietary restrictions. I am a supporter of a healthy lifestyle – I play sports, cycle, and swim in the lake all year round. With my work, I have been featured in Vice, Country Living, Harrods magazine, Daily Telegraph, Grazia, Women's Health, and other media outlets.

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