The Coliving Industry Water Cooler
The Coliving industry is one of the fastest growing real estate asset classes. And for good reason. Traditional real estate product offerings are largely mismatched with a global cultural shift in ideals. Coliving attracts those interested more in community than isolation, collaboration over competition. It is for those that value minimalism in lieu of materialism and experiences over things. Perhaps the Founder of the Collective, Reza Merchant, has said it best "creating environments which center around human connection and community, are the future."
Coliving is about connection in a macro and micro sense. It is about connection to each other. Connection to experiences. Connection to the local culture. Connection to the built environment. And connection to Nature. Mental health researchers are often pointing to studies that indicate the more connected an individual is to others, to their deeper selves, to their community, and to Nature, the healthier they are.
The modern word health is derived from the photo-germanic word hailaz meaning “whole." Holistic, whole, holy, health, all of these words have the same eptymological root. Likewise, a connected community implies a sense of togetherness, of oneness, or wholeness. A connected community is therefore a healthy community.
The opposite of a healthy community is one with dis-ease, where individuals are not at ease with each other. In other words, there is discord. The origin of the word discord is from Latin dis- (expressing negation, reversal) + cor, cord- ‘heart’. Therefore, if residents are not at ease, there is disease, which leads to hearts not connected (discord) which leads to disaster (not connected with the stars).
All forms of human organization are similar. A connected community is a healthy community, likewise, a connected industry is a healthy industry. A basic lesson of economic history is that wherever human capital is efficiently connecting with ideas and money, you find prosperity.
A disconnected industry moves slowly. It is less impactful. Less robust. The same is true for economies. A well connected economy develops quickly, can change quickly, can adapt quickly, can grow quickly.
As Coliving entrepreneurs and investors, we’re seeking to develop healthy communities but also a healthy industry (as our livelihood depends on it!). While much has been written about how to develop a healthy community within a property, few have written about how to develop a healthy industry.
In any fast growing industry, the enthusiastic entrepreneurs always have two big challenges: where do we find the capital? And where do we find good people to work with?
There is tremendous value created by bringing the investors together with the operators. An introduction is fast, low cost, yet highly valued by both parties.
Many investors, particularly small to medium sized investors seeking to place $1-$10M, are unaware of the opportunity to invest in Coliving. In one sense, this is good, as less competition equals bigger returns for investors. However, for operators, our cost of capital can decrease if there are more investors that are bidding for specific investment opportunities.
Is it possible for the coliving industry to have a forum like Angelist to post specific investment opportunities? Perhaps this could raise the visibility of the industry and attract more small to medium sized investors.
Currently there are some efforts at improving communication and connection within the industry. For example, Colving Hub, Co-Liv, Coliving Cocktail, and an informal Facebook group: Coliving. There are also meet ups and conferences. However, these all fall short of providing what operators and investors need and are willing to pay for.
A central meeting place for the industry can be lucrative in at least three ways:
1) Entrepreneurs can post specific investment opportunities. For example, right now, I’m happy to pay USD$25,000 for an introduction to an investor that backs our multifamily coliving concept. How do I find investors looking to deploy $1-10M in a high yield product?
2) Operators can connect with human capital. I’m willing to pay USD $2,500 for an introduction to a talented individual from the industry that wants to grow (and eventually own) a coliving company in the USA. I am willing to provide all the debt and equity financing for our existing 6 property coliving operation in Florida with 50 residents. How do I find the right cofounder/partner?
3) Adventure seekers can connect with operators interested in work exchange. Where can a small to medium sized operator connect with individuals attracted to ideals of community, meaningful experiences, travel, minimalism, and environmentalism that are open to work exchanges, internships, and employment opportunities? I have opportunities available now to trade accommodation for labor on flexible terms but do not know how to get the word out. I’ll pay USD $100 for connecting with the right person(s).
WWOOF has done this well for those seeking experiences on organic farms. Who will build the same for coliving communities? Arguably the global Coliving industry is and will be significantly larger than WWOOF.
It is a great opportunity to start a lucrative online business connecting others within the Coliving industry. Who will lead the charge? I’ll be the first paying customer.