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You know time to deliver something has come when it becomes a battle cry in the FBI community. /wenBasedHouse has been doing the rounds lately, and I figured it’s time to give you guys a proper update.
It’s been close to 3 months since we conceptualized setting up a property for onchain natives and builders in the country. The concept was well received and we managed to raise 11 Eth in 10 minutes- a feat not just for the FBI community but the overall onchain scene in the country.
The next few weeks, we set up proposals to get more grants from onchain organizations and managed to get a 2.5 mil $Degen grant from DegenDAO. This was a massive win because it allowed us to see what works with Based House as a concept space, build proof of concept, and then scale it globally.
Here’s what has transpired since-
Visit to Goa- I did a quick 2 week Goa sprint, meeting brokers, checking out properties and found that while it is hard to put together a space quickly in Goa, it’s a challenge worth going after.
Back to Dharamshala while being in touch with brokers- We’re unable to find a property that works for us. We go back and forth with multiple landlords & properties but everything seems to have some or the other unavoidable red flag.
Drive down to Goa- I pack up my stuff, bringing my wife and our two dogs to Goa deciding that we’ll now find a place and make it work once and for all. It, however, hits us 3-4 weeks into this Goa trip that it’s not going to work for not one but several reasons:
Unfavorable unit economics for small properties: Properties with 5-10 rooms in Goa are challenging to make profitable given the local market dynamics, costs, and competition. Only way to make it work was by expanding into a larger property.
Operational Complexity: A larger property of 15+ rooms would require me to move base to Goa, leaving everything built in Himachal to be run by my team, but this was shot down point blank by the boss (my wife).
Competitive Market Risks: Living in Goa while scouting helped me realize that as a market Goa was inherently unstable. Staff poaching, landlords changing terms midway, folks backing out of deals etc increased operational risks. Especially going into a 5 year lease has consequences.
Costs not in line with expected ROI: The initial capital required for a decent-sized property in Goa is upwards of 75 lakhs, leading to unattractive ROI calculations. (This was different when Eth and Degen were looking stronger)
Now, I know this does feel like an all is lost moment. But here’s the good news- we know 2 things for sure-
Goa is a batshit crazy market to invest in
Maybe just maybe this allows us to find and create a kickass property in Himachal or Bangalore (where things are easier up our alley, and more predictable)
So, here’s what we’re going to do - We’ll spend the next 6 weeks scouting and making a case for properties in Bangalore, Kasauli and adjacent Himachal places. If the numbers work, we’ll come back to you all asking if this is a good idea and proceed accordingly.
If you have a better idea or know a place/person that could help, for the love of god let us know.
If none of this works, we’ll rug you, and go vacation in the Bahamas or something or make a trust fund for Kabir Saxena.
